OneSpaWorld NASDAQ: OSW reported second-quarter 2026 revenue growth of 9% and adjusted EBITDA growth of 13%, extending what Executive Chairman and Chief Executive Officer Leonard Fluxman described as the company’s 21st consecutive quarter of record total revenue and adjusted EBITDA.
Total revenue rose to $261.2 million from $240.7 million in the second quarter of 2025. Adjusted EBITDA increased to $34.4 million from $30.5 million, while net income rose to $23.2 million, or $0.23 per diluted share, from $19.9 million, or $0.19 per diluted share, a year earlier. Adjusted net income was $29.8 million, or $0.29 per diluted share, compared with $25.8 million, or $0.25 per share, in the prior-year period.
“We began the second half of the year with positive momentum,” Fluxman said, adding that the company expects double-digit growth in revenue and adjusted EBITDA at the midpoint of its full-year guidance ranges.
Ship Growth and Higher-Value Services
At the end of the quarter, OneSpaWorld operated health and wellness centers on 208 ships, compared with 200 ships at the end of the second quarter of 2025. The average ship count during the quarter was 202, up from 191 a year earlier. The company’s onboard staffing rose to 4,664 personnel from 4,365 personnel.
Fluxman said the company launched a health and wellness center aboard Royal Caribbean’s Legend of the Seas during the quarter and expanded its partnership with Azamara Cruises. OneSpaWorld also remains on track to open wellness centers on three additional new ship builds later this year.
The company continued to expand its higher-value Medi-Spa offerings, including Thermage, truSculpt, CoolSculpting, IV therapy, acupuncture and LED therapy. Fluxman said these services generated strong double-digit growth during the quarter. Medi-Spa services were available on 156 ships at quarter-end, compared with 147 ships a year earlier, and the company expects that figure to reach 159 ships by the end of 2026.
President, Chief Operating Officer and Chief Financial Officer Stephen Lazarus said Medi-Spa services grew 17% in the second quarter, outpacing overall revenue growth. He noted, however, that the offerings remain less than 10% of service revenue and currently have little associated retail-product attachment.
Revenue Drivers and Booking Trends
Lazarus said the revenue increase reflected a 4% increase in the company’s revenue base, contributing $14.5 million; health and wellness center expansion from new ship builds, contributing $4.8 million; and a 1.2% increase in average guest spending, contributing $2.7 million. Increased guest pre-booked services accounted for $4.7 million of total revenue growth.
Pre-booked revenue increased 14% and grew as a percentage of total service revenue, while forward bookings rose 20% from the prior year. Fluxman said staff retention reached 81%, up four percentage points from a year earlier, which he said supports productivity through more effective guest recommendations, cross-selling and upselling.
During the question-and-answer session, Lazarus said guests who pre-book continue to spend more than 30% above other guests, with no degradation in that incremental spending level. Fluxman added that OneSpaWorld began offering Medi-Spa and acupuncture services through its pre-booking platform near the end of the second quarter, which he said could further support booking penetration.
Lazarus said the company expects average guest spending growth of roughly 1% to 2% during the second half of 2026. He also said the company incorporated anticipated seasonal Mediterranean customer mix into its third-quarter outlook.
AI Initiatives Expand Across Fleet
OneSpaWorld said artificial intelligence has been introduced across substantially all ships and its corporate office. Lazarus highlighted four initiatives currently generating value.
- Amanda: The company’s AI-powered recommendation and yield-optimization platform, launched in March and deployed on 188 vessels, provides managers with daily recommendations intended to improve facility and staff utilization. Lazarus said the tool has produced a 4% uplift in service revenue among less-experienced managers when recommendations are implemented, and manager adoption has reached nearly 99%.
- Ava: The company’s operational virtual assistant, launched in August 2025, has autonomously resolved 96% of support tickets without human intervention, according to Lazarus. OneSpaWorld plans to expand the tool’s use cases and extend it to all onboard staff.
- Serena: A guest-facing conversational assistant launched in late May for the company’s e-commerce platform. Lazarus said nearly half of Serena sessions have occurred outside normal business hours.
- Claude: An enterprise-wide AI system being adopted to streamline workflows and improve productivity across the organization.
Lazarus said OneSpaWorld also completed implementation of a modernized enterprise resource planning system during the quarter, consolidating teams onto a single platform. He said AI’s nearer-term effect is likely to be more meaningful on revenue than expenses, though the company is not yet prepared to quantify the longer-term impact on margins.
Balance Sheet and Increased Outlook
OneSpaWorld ended June with $41.6 million in cash and total liquidity of $91.6 million, including full availability under its $50 million revolving credit facility. Total debt, net of deferred financing costs, was $81.6 million.
During the first six months of 2026, the company paid $10.2 million in quarterly dividends and repaid $2.5 million under its term loan facility. Fluxman said the company returned $5.1 million to shareholders through its quarterly dividend during the second quarter and reduced debt by $1.3 million under the term loan. OneSpaWorld had $37.1 million remaining under its $75 million share repurchase authorization at quarter-end and said it intends to use the remaining authorization this year.
The company raised its full-year 2026 guidance to revenue of $1.018 billion to $1.038 billion and adjusted EBITDA of $130 million to $140 million. At the midpoint, the outlook represents 10% growth in both measures compared with fiscal 2025 results excluding exited and reorganized operations.
For the third quarter, OneSpaWorld expects revenue of $268 million to $273 million and adjusted EBITDA of $35 million to $37 million.
About OneSpaWorld (NASDAQ:OSW)
OneSpaWorld Holdings Ltd is a global provider of spa and wellness services, catering primarily to the cruise line, hospitality and venue-based leisure industries. The company designs and operates on-board spa facilities, salon services and retail boutiques, offering treatments such as massage, facial and body therapies, nail care, hair styling and aesthetic enhancements. Additionally, OneSpaWorld provides program consulting, management, training and product distribution services to its partners, enabling tailored spa experiences across diverse passenger and guest demographics.
OneSpaWorld’s core operations span major cruise lines—such as Carnival Corporation, Royal Caribbean Group, MSC Cruises and Virgin Voyages—as well as luxury resort and hotel brands.
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