OneSpaWorld Q4 Earnings Miss Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy OSW?
Source: seekingalpha
- Earnings Performance: OneSpaWorld reported a Q4 non-GAAP EPS of $0.24, missing expectations by $0.02, indicating pressure on profitability that could affect investor confidence.
- Revenue Growth Challenges: Total revenue increased by 11.5% year-over-year to $242.1 million, yet fell short of expectations by $0.7 million, reflecting intensified market competition and operational challenges that may impact future market share.
- Revenue Composition Analysis: The revenue growth was primarily driven by fleet expansion, a 2% increase in revenue days, and a 1% rise in average guest spend, contributing $15.5 million, $8.7 million, and $2.1 million respectively; however, a $1.3 million decline in destination resort revenues highlights the vulnerability of business diversification.
- Fiscal Year 2026 Outlook: The company projects total revenues between $1.01 billion and $1.03 billion for FY26, with adjusted EBITDA expected to be between $128 million and $138 million, suggesting a positive outlook, but market conditions could pose risks to performance.
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Analyst Views on OSW
Wall Street analysts forecast OSW stock price to rise
4 Analyst Rating
4 Buy
0 Hold
0 Sell
Strong Buy
Current: 23.380
Low
24.00
Averages
26.00
High
27.00
Current: 23.380
Low
24.00
Averages
26.00
High
27.00
About OSW
OneSpaWorld Holdings Limited is a health and wellness services company. The Company provides health, fitness, beauty and wellness services and sells related products, and operates on approximately 195 cruise ships and at 50 destination resorts around the world. Its services include traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes and personal fitness training; pain management, detoxifying programs and comprehensive body composition analyses; weight management programs and products, and advanced medi-spa services, among others. The Company offers its guests access to beauty and wellness brands including ELEMIS, Kerastase, BOTOX Cosmetic, Dysport, Restylane, Perlane, Thermage, CoolSculpting, truSculpt 3D and truSculpt iD, among others. It operates spas, salons and fitness centers on various cruise lines, such as Costa Cruises, Norwegian Cruise Line, Regent Seven Seas Cruises and Seabourn Cruise Line, among others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
OneSpaWorld Declares Quarterly Dividend of $0.05
- Quarterly Dividend Declaration: OneSpaWorld has declared a quarterly dividend of $0.05 per share, consistent with previous distributions, reflecting the company's ongoing efforts to maintain stable cash flow, despite a modest yield of 0.9%.
- Payment Schedule: The dividend is set to be paid on March 25, with a record date of March 11 and an ex-dividend date also on March 11, ensuring shareholders receive their returns promptly, which may bolster investor confidence.
- Consecutive Dividend Payments: The company has now announced a $0.05 dividend for two consecutive quarters, indicating its stability in the current economic climate, even as it faces slight declines in revenue and earnings.
- Future Revenue Outlook: OneSpaWorld anticipates revenues exceeding $1 billion in 2026, driven primarily by AI initiatives and new ship builds, demonstrating the company's confidence in future growth prospects.
See More
OneSpaWorld Reports Record Q4 2025 Earnings Driven by Innovation and Growth
- Innovation-Driven Growth: OneSpaWorld achieved total revenue of $242.1 million in Q4 2025, an 11% increase year-over-year, primarily driven by fleet expansion and increased guest spending, further solidifying its market leadership.
- Strategic Restructuring: The company exited land-based health centers in Asia and reorganized operations in the UK and Italy, focusing on maximizing efficiency in its sea-based health centers, thereby optimizing resource allocation and enhancing profitability.
- High-Value Service Expansion: The introduction of high-value services such as Medi-Spa and Acupuncture led to revenue growth of 23% to 40% in Q4, demonstrating the company's strategic success in enhancing customer experience and diversifying revenue streams.
- Optimistic Future Outlook: Management expects total revenues for fiscal 2026 to exceed $1 billion for the first time, with adjusted EBITDA projected between $128 million and $138 million, reflecting the company's confidence in future growth and ongoing commitment to innovation.
See More
OneSpaWorld Q4 Earnings Miss Expectations
- Earnings Performance: OneSpaWorld reported a Q4 non-GAAP EPS of $0.24, missing expectations by $0.02, indicating pressure on profitability that could affect investor confidence.
- Revenue Growth Challenges: Total revenue increased by 11.5% year-over-year to $242.1 million, yet fell short of expectations by $0.7 million, reflecting intensified market competition and operational challenges that may impact future market share.
- Revenue Composition Analysis: The revenue growth was primarily driven by fleet expansion, a 2% increase in revenue days, and a 1% rise in average guest spend, contributing $15.5 million, $8.7 million, and $2.1 million respectively; however, a $1.3 million decline in destination resort revenues highlights the vulnerability of business diversification.
- Fiscal Year 2026 Outlook: The company projects total revenues between $1.01 billion and $1.03 billion for FY26, with adjusted EBITDA expected to be between $128 million and $138 million, suggesting a positive outlook, but market conditions could pose risks to performance.
See More
OneSpaWorld Reports Q4 Profit Below Expectations
- Quarterly Profit Performance: OneSpaWorld reported a Q4 profit of $12.1 million, translating to earnings of 12 cents per share, while adjusted earnings of 24 cents fell short of Wall Street's expectation of 26 cents, indicating pressure on the company's profitability.
- Annual Performance Review: For the year, the company reported a profit of $71.6 million, or 69 cents per share, with total revenue of $961 million, yet it failed to meet market expectations for sustained growth, potentially impacting investor confidence.
- Future Revenue Expectations: OneSpaWorld anticipates revenue for the current quarter to range between $241 million and $246 million, reflecting short-term growth potential, but concerns about profitability remain a challenge.
- Full-Year Revenue Outlook: The company expects full-year revenue to be between $1.01 billion and $1.03 billion, presenting a positive outlook; however, it still requires performance improvements to regain investor trust compared to market expectations.
See More
OneSpaWorld Reports Record Financial Results for Fiscal Year 2025
- Strong Financial Performance: OneSpaWorld achieved total revenues of $961 million for fiscal year 2025, reflecting a 7% year-over-year increase, with fourth-quarter revenues reaching $242 million, an 11% growth compared to the previous year, indicating robust momentum in the health and wellness service sector.
- Adjusted EBITDA Growth: The company reported an adjusted EBITDA of $31.2 million for the fourth quarter, a 17% increase from the prior year, showcasing ongoing improvements in operational efficiency and cost management, which further solidifies its market leadership position.
- Shareholder Return Strategy: In fiscal year 2025, OneSpaWorld returned $92.9 million to shareholders, including $17.5 million in quarterly dividends and $75.4 million in share repurchases, demonstrating strong cash flow and commitment to shareholder value.
- Optimistic Future Outlook: The company anticipates total revenues exceeding $1 billion in fiscal year 2026, aiming for high-single-digit growth driven by new ship builds and technological innovations, indicating sustained expansion and competitiveness in the market.
See More
Market Trends Open New Avenues for 3 Previous Stock Selections: Technical Analysis
- Market Dynamics: The stock market is characterized by rapid changes, where previously popular stocks can quickly lose favor.
- Investor Strategy: Investors are increasingly looking back at former stock picks to identify potential opportunities for profit.
See More
OneSpaWorld Declares Quarterly Dividend of $0.05
- Quarterly Dividend Declaration: OneSpaWorld has declared a quarterly dividend of $0.05 per share, consistent with previous distributions, reflecting the company's ongoing efforts to maintain stable cash flow, despite a modest yield of 0.9%.
- Payment Schedule: The dividend is set to be paid on March 25, with a record date of March 11 and an ex-dividend date also on March 11, ensuring shareholders receive their returns promptly, which may bolster investor confidence.
- Consecutive Dividend Payments: The company has now announced a $0.05 dividend for two consecutive quarters, indicating its stability in the current economic climate, even as it faces slight declines in revenue and earnings.
- Future Revenue Outlook: OneSpaWorld anticipates revenues exceeding $1 billion in 2026, driven primarily by AI initiatives and new ship builds, demonstrating the company's confidence in future growth prospects.
See More
OneSpaWorld Reports Record Q4 2025 Earnings Driven by Innovation and Growth
- Innovation-Driven Growth: OneSpaWorld achieved total revenue of $242.1 million in Q4 2025, an 11% increase year-over-year, primarily driven by fleet expansion and increased guest spending, further solidifying its market leadership.
- Strategic Restructuring: The company exited land-based health centers in Asia and reorganized operations in the UK and Italy, focusing on maximizing efficiency in its sea-based health centers, thereby optimizing resource allocation and enhancing profitability.
- High-Value Service Expansion: The introduction of high-value services such as Medi-Spa and Acupuncture led to revenue growth of 23% to 40% in Q4, demonstrating the company's strategic success in enhancing customer experience and diversifying revenue streams.
- Optimistic Future Outlook: Management expects total revenues for fiscal 2026 to exceed $1 billion for the first time, with adjusted EBITDA projected between $128 million and $138 million, reflecting the company's confidence in future growth and ongoing commitment to innovation.
See More
OneSpaWorld Q4 Earnings Miss Expectations
- Earnings Performance: OneSpaWorld reported a Q4 non-GAAP EPS of $0.24, missing expectations by $0.02, indicating pressure on profitability that could affect investor confidence.
- Revenue Growth Challenges: Total revenue increased by 11.5% year-over-year to $242.1 million, yet fell short of expectations by $0.7 million, reflecting intensified market competition and operational challenges that may impact future market share.
- Revenue Composition Analysis: The revenue growth was primarily driven by fleet expansion, a 2% increase in revenue days, and a 1% rise in average guest spend, contributing $15.5 million, $8.7 million, and $2.1 million respectively; however, a $1.3 million decline in destination resort revenues highlights the vulnerability of business diversification.
- Fiscal Year 2026 Outlook: The company projects total revenues between $1.01 billion and $1.03 billion for FY26, with adjusted EBITDA expected to be between $128 million and $138 million, suggesting a positive outlook, but market conditions could pose risks to performance.
See More
OneSpaWorld Reports Q4 Profit Below Expectations
- Quarterly Profit Performance: OneSpaWorld reported a Q4 profit of $12.1 million, translating to earnings of 12 cents per share, while adjusted earnings of 24 cents fell short of Wall Street's expectation of 26 cents, indicating pressure on the company's profitability.
- Annual Performance Review: For the year, the company reported a profit of $71.6 million, or 69 cents per share, with total revenue of $961 million, yet it failed to meet market expectations for sustained growth, potentially impacting investor confidence.
- Future Revenue Expectations: OneSpaWorld anticipates revenue for the current quarter to range between $241 million and $246 million, reflecting short-term growth potential, but concerns about profitability remain a challenge.
- Full-Year Revenue Outlook: The company expects full-year revenue to be between $1.01 billion and $1.03 billion, presenting a positive outlook; however, it still requires performance improvements to regain investor trust compared to market expectations.
See More
OneSpaWorld Reports Record Financial Results for Fiscal Year 2025
- Strong Financial Performance: OneSpaWorld achieved total revenues of $961 million for fiscal year 2025, reflecting a 7% year-over-year increase, with fourth-quarter revenues reaching $242 million, an 11% growth compared to the previous year, indicating robust momentum in the health and wellness service sector.
- Adjusted EBITDA Growth: The company reported an adjusted EBITDA of $31.2 million for the fourth quarter, a 17% increase from the prior year, showcasing ongoing improvements in operational efficiency and cost management, which further solidifies its market leadership position.
- Shareholder Return Strategy: In fiscal year 2025, OneSpaWorld returned $92.9 million to shareholders, including $17.5 million in quarterly dividends and $75.4 million in share repurchases, demonstrating strong cash flow and commitment to shareholder value.
- Optimistic Future Outlook: The company anticipates total revenues exceeding $1 billion in fiscal year 2026, aiming for high-single-digit growth driven by new ship builds and technological innovations, indicating sustained expansion and competitiveness in the market.
See More
Market Trends Open New Avenues for 3 Previous Stock Selections: Technical Analysis
- Market Dynamics: The stock market is characterized by rapid changes, where previously popular stocks can quickly lose favor.
- Investor Strategy: Investors are increasingly looking back at former stock picks to identify potential opportunities for profit.
See More
