OneSpaWorld NASDAQ: OSW reported third-quarter 2026 results above the high end of its prior guidance, with revenue rising 7% and adjusted EBITDA increasing 12% from a year earlier. The company also raised the midpoint of its full-year outlook, authorized a new $100 million share repurchase program and increased its quarterly dividend by 25%.
Executive Chairman and Chief Executive Officer Leonard Fluxman said the quarter marked the company’s 22nd consecutive quarter of record year-over-year growth in total revenue and adjusted EBITDA. He attributed the performance to gains across operating metrics, growth in higher-value health and wellness offerings, expanded cruise-line partnerships and the company’s asset-light operating model.
Third-Quarter Financial Results
Total revenue increased to $276.5 million in the third quarter from $258.5 million a year earlier. President, Chief Financial Officer and Chief Operating Officer Stephen Lazarus said the $18 million increase reflected a 3.3% rise in average guest spend, fleet expansion from new ship builds, higher revenue days excluding fleet expansion, and increased guest counts.
The company said average guest spend contributed $8.2 million of the year-over-year revenue increase, while higher volumes contributed $7 million and fleet expansion added $4.3 million. Increased pre-booked revenue contributed $6.9 million at health and wellness centers included in OneSpaWorld’s ship count as of Sept. 30.
Net income rose to $28.2 million, or $0.28 per diluted share, from $24.3 million, or $0.23 per diluted share, in the prior-year quarter. Adjusted net income increased to $34.8 million, or $0.34 per diluted share, compared with $30.7 million, or $0.30 per diluted share, a year earlier. Adjusted EBITDA grew to $39.2 million from $35 million.
Revenue growth in maritime operations was partly offset by a $1.4 million decline in destination-resort revenue, which the company said was partly related to hotel closures where it had previously operated. Product revenue also declined $1.3 million as a result of the company’s previously announced reorganization of operations in the U.K. and Italy.
Fleet Expansion, Higher-Value Services and Pre-Booking
At quarter end, OneSpaWorld operated health and wellness centers on 207 ships, compared with 204 ships at the end of the third quarter of 2025. Its average ship count for the quarter was 206, compared with 199 a year earlier. The company had 4,645 personnel staffed on vessels at quarter end, up from 4,466.
During the quarter, OneSpaWorld entered renewed agreements with Azamara Cruises and Silversea. Fluxman said the Azamara agreement supported the first spa refit aboard Azamara Quest, adding treatment rooms, retail space, MediSpa services and IV therapy. The company said it remains on track to add health and wellness centers on two additional ship builds during 2026.
MediSpa offerings were available on 157 ships at the end of the quarter, up from 150 ships a year earlier, and OneSpaWorld expects to reach 159 ships by the end of 2026. Fluxman said high-value offerings including Thermage, truSculpt, CoolSculpting, IV therapy, acupuncture and LED light therapy posted strong double-digit growth from the prior year.
In response to an analyst question, Fluxman said the 3.3% increase in average guest spend was driven by business mix rather than pricing. He cited growth in acupuncture, MediSpa and health and longevity services, along with greater guest engagement and product attachment.
Pre-booked revenue rose 20% and represented 23.2% of service revenue, compared with 21.5% a year earlier. The company’s forward-booking position was up 18% from the same time last year. Fluxman said OneSpaWorld is working with cruise-line partners to improve booking platforms and resources, and he set a goal of moving pre-booked revenue closer to 30% over the next two and a half years.
Staff retention exceeded 81% at quarter end, improving by nearly five percentage points from a year earlier. Management said experienced staff support revenue through guest recommendations, cross-selling and upselling.
Capital Returns and Balance Sheet
OneSpaWorld returned $42.3 million to shareholders through share repurchases and dividends during the third quarter while also reducing debt, according to Fluxman. During the first nine months of 2026, the company repurchased $37.5 million of common shares, paid $15.2 million in quarterly dividends and repaid $13.8 million of its long-term facility.
- Total cash was $32.1 million at Sept. 30.
- Total liquidity, including availability under its undrawn credit facility, was $80.9 million.
- Total debt, net of deferred financing costs, was $70.5 million.
- During the third quarter, OneSpaWorld repurchased 1.4 million shares for $37.2 million, completing its prior $75 million authorization.
The board approved a new authorization to repurchase up to $100 million in common stock. It also raised the quarterly dividend 25% to $0.0625 per share, payable Dec. 2 to shareholders of record as of Nov. 18.
AI Efforts and Updated Outlook
Lazarus said the company continued to expand several artificial-intelligence initiatives. Its Amanda recommendation and yield optimization platform added NAD+ and IV therapy recommendations across 188 vessels. AVA, a virtual assistant for shipboard managers, closed 90% of its third-quarter tickets without human escalation, which management said freed 150 staff hours for redeployment to revenue-generating activities.
Management said it expects dynamic AI-influenced pricing to be rolled out first for pre-booking, though Fluxman said it is not expected to be in place before the fourth quarter of 2027. He said the goal is to improve yield through pricing that responds to supply and demand.
For full-year 2026, OneSpaWorld now expects revenue of $1.033 billion to $1.038 billion and adjusted EBITDA of $138 million to $140 million. The prior outlook called for revenue of $1.018 billion to $1.038 billion and adjusted EBITDA of $130 million to $140 million.
For the fourth quarter, the company forecast revenue of $248 million to $253 million and adjusted EBITDA of $32 million to $34 million. OneSpaWorld expects to end 2026 with health and wellness centers on 208 ships and 12 destination resorts, following the completion of its exit from land-based health and wellness centers in Asia.
About OneSpaWorld (NASDAQ:OSW)
OneSpaWorld Holdings Limited NASDAQ: OSW provides health, wellness and beauty services primarily aboard cruise ships and at destination resorts. The company operates and manages spas, salons, fitness centers and wellness facilities for cruise lines and resort operators, serving travelers in international markets.
Its services include massages and other spa treatments, facials, skincare, hair and beauty services, fitness and wellness programs, medi-spa treatments, acupuncture and related health services.
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