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ONESPAWORLD HOLDINGS Ltd (OSW) Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered a revenue and EPS beat vs consensus: revenue $240.7M vs $238.3M estimate; Primary EPS $0.25 vs $0.24 estimate; Adjusted EBITDA set a quarterly record at $30.5M, though S&P’s standardized EBITDA tracked below consensus, highlighting definitional differences . Revenue/EPS consensus values from S&P Global*.
  • Annual guidance: total revenue reaffirmed at $950–$970M; Adjusted EBITDA guidance raised to $117–$127M (mid-teens growth at midpoint) .
  • Q3 2025 guidance introduced: revenue $255–$260M and Adjusted EBITDA $33–$35M .
  • Capital returns and balance sheet support the thesis: quarterly dividend of $0.04/share; total liquidity $86.2M; $75M remaining repurchase authorization .
  • Management cited momentum from higher guest spend, fleet additions, and emerging AI initiatives to enhance experiences and productivity; renewed Windstar and launched Oceania Allura, supporting growth catalysts into H2 2025 .

What Went Well and What Went Wrong

What Went Well

  • Record Q2 with revenue up 7% to $240.7M, Adjusted EBITDA up 13% to $30.5M; EPS up 27% YoY to $0.19 (GAAP) while Adjusted EPS reached $0.25 .
  • Commercial momentum: partnership renewal with Windstar and operations initiated on Oceania Allura; management highlighted “developing initiatives employing emerging AI technologies” to drive guest experience and operations .
  • Operating metrics strengthened: average weekly revenue per ship up (~$92,936 vs $88,034 YoY), staff revenue/day up ($608 vs $586 YoY), and revenue days higher (17,426 vs 17,074 YoY), underpinning productivity .

Selected quotes:

  • “Second quarter results exceeding our guidance… drive innovation, productivity and profitability across our operations.” — Leonard Fluxman, CEO .
  • “Capital efficient, asset-light business model continued to generate predictably strong free cash flow… ended the quarter with $86 million of total liquidity.” — Stephen Lazarus, CFO/COO .
  • “We have increased our Adjusted EBITDA guidance to reflect mid-teens growth at the midpoint.” — Stephen Lazarus .

What Went Wrong

  • Land-based spas were a drag: $0.9M YoY decline in Q2 and $2.4M YTD decline due partly to hotel closures .
  • Cost growth in Q2 tracked with revenue mix: cost of services +$10.4M and cost of products +$2.8M YoY, limiting flow-through despite productivity gains .
  • S&P standardized EBITDA came in below consensus for Q2 (actual $28.4M vs $29.4M estimate), suggesting potential definitional divergence vs company Adjusted EBITDA; watch how the Street calibrates models to company-reported non-GAAP . EBITDA estimates/actuals from S&P Global*.

Financial Results

Summary: Actuals vs Prior Periods

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$217.2 $219.6 $240.7
GAAP Diluted EPS ($)$0.14 $0.15 $0.19
Adjusted EBITDA ($USD Millions)$26.7 $26.6 $30.5
Income from Operations ($USD Millions)$17.2 $16.8 $22.1

Margins

MarginQ4 2024Q1 2025Q2 2025
EBITDA Margin %—11.62%*11.79%*
EBIT Margin %—8.80%*9.19%*
Net Income Margin %—6.95%*8.28%*

Values marked with * retrieved from S&P Global.

Actual vs Wall Street Consensus (S&P Global)

MetricConsensus (Q2 2025)Actual (Q2 2025)
Revenue ($USD Millions)$238.3*$240.7
Primary EPS ($)$0.24*$0.25* (Company Adjusted EPS is $0.25; GAAP diluted EPS $0.19 )
EBITDA ($USD Millions)$29.4*$28.4* (Company Adjusted EBITDA $30.5 )

Values marked with * retrieved from S&P Global.

Segment Revenue Breakdown

Segment ($USD Millions)Q2 2024Q2 2025YoY Change
Service Revenues$180.8 $193.4 +$12.5 (+7%)
Product Revenues$44.0 $47.4 +$3.3 (+8%)
Total Revenues$224.9 $240.7 +$15.8 (+7%)

KPIs and Operating Metrics

KPIQ2 2024Q1 2025Q2 2025
Average Weekly Revenue per Ship ($)$88,034 $84,177 $92,936
Average Revenue per Shipboard Staff per Day ($)$586 $562 $608
Revenue Days17,074 17,401 17,426
Average Ship Count188 193 191
Period End Ship Count197 199 200
Average Resort Count52 49 50
Average Weekly Revenue per Resort ($)$14,028 $15,247 $13,019
Capital Expenditures ($000s)$1,116 $1,697 $2,729

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total RevenuesFY 2025$950–$970M (Q1 release) $950–$970M (Q2 release) Maintained
Adjusted EBITDAFY 2025$115–$125M (Q1 release) $117–$127M (Q2 release) Raised
Total RevenuesQ2 2025$235–$240M (introduced Q1) Actual $240.7M Beat guidance (top-end)
Adjusted EBITDAQ2 2025$28–$30M (introduced Q1) Actual $30.5M Beat guidance (top-end)
Total RevenuesQ3 2025—$255–$260M Introduced
Adjusted EBITDAQ3 2025—$33–$35M Introduced
DividendQuarterly$0.04/share (ongoing) $0.04/share (Sept 3, 2025 payable) Maintained
Share Repurchase AvailabilityOngoingNew $75M authorization (Q1) $75M remaining at 6/30/25 Maintained capacity

Earnings Call Themes & Trends

Note: A Q2 2025 earnings call transcript was not available in the document catalog; themes below draw from Q1 2025 call and Q2 press release.

TopicPrevious Mentions (Q4 2024, Q1 2025)Current Period (Q2 2025)Trend
AI/Technology InitiativesNo explicit AI in Q4; Q1 focused on introducing next-gen medi-spa tech (Thermage FLX, CoolSculpting Elite) and training “Developing initiatives employing emerging AI technologies” to enhance experiences and productivity Increasing emphasis on AI; strategic adoption progressing
Supply Chain/TariffsQ1: Most operations not impacted by tariffs; suppliers not signaling price increases; some medi-spa SKUs have storage/expiry constraints No new issues disclosed; continued focus on operational resilience Stable; vigilance remains
Product Performance (Medi-spa)Q1: Medi-spa services up >20% for certain treatments; demand stable; 148 ships carrying medi-spa offerings Continued high-end service demand referenced; contributing to spend increases Positive momentum sustained
Prebooking/Onboard SpendQ1: Prebooking ~23% of services; slight pickup; Virgin prebooking added Q2: $2.7M increase in prebooked revenues contributing to higher volume/spend Improving prebooking contribution
Fleet Expansion/PartnershipsQ4: 7-year agreement with Royal Caribbean and Celebrity; 7 new centers added Windstar renewal; Oceania Allura launch; on track for 9 new ship builds in 2025 Expansion continues; partnership depth growing
Land-based ResortsQ1: Land-based revenues down from hotel closures Further decline: -$0.9M in Q2; -$2.4M YTD Ongoing pressure

Management Commentary

  • “I am very pleased to report second quarter results exceeding our guidance… our strategic investments [drive] innovation, productivity and profitability… renewing our partnership with Windstar Cruises and initiating operations aboard the newly launched Oceania Allura.” — Leonard Fluxman, CEO .
  • “Our positive momentum has continued in the third quarter… I am particularly excited by our developing initiatives employing emerging AI technologies…” — Leonard Fluxman .
  • “Strong performance… increases in Total revenues of 7% and Adjusted EBITDA of 13%… asset-light business model continued to generate predictably strong free cash flow… ended the quarter with $86 million of total liquidity.” — Stephen Lazarus, CFO/COO .
  • “We have increased our Adjusted EBITDA guidance to reflect mid-teens growth at the mid-point of our range…” — Stephen Lazarus .

Q&A Highlights

Note: Q2 2025 call transcript not available; highlights below from Q1 2025 call.

  • On onboard spend patterns: “We have not seen a significant increase in discounting… spend continue to increase… high-end services… in high demand.” — Leonard Fluxman .
  • Guidance sensitivity: “Low-end of the range assumes moderation in spending onboard… we feel really comfortable about delivering our number.” — Stephen Lazarus .
  • Prebooking trends: “Prebooking ~23%… slight pickup… Virgin Voyages rollout; cruise lines remain receptive.” — Leonard Fluxman .
  • Tariffs impact: “Majority of operations not impacted… suppliers do not expect increases to OneSpaWorld.” — Stephen Lazarus .
  • Share buybacks: “We would likely still continue to buy back shares… decision more around value.” — Stephen Lazarus .

Estimates Context

  • Q2 2025: Revenue $240.7M vs consensus $238.3M (beat); Primary EPS $0.25 vs $0.24 (beat); S&P standardized EBITDA $28.4M vs $29.4M (miss), while company Adjusted EBITDA reported $30.5M (record) . Consensus/actual values from S&P Global*.
  • Q3 2025: Consensus revenue ~$258.6M aligns near midpoint of company guidance; Primary EPS $0.29 (Street), consistent with delivery during Q3 seasonality*.
  • FY 2025: Consensus revenue ~$963.3M and EBITDA ~$123.5M*; company raised Adjusted EBITDA guidance to $117–$127M, tightening the range around the Street .

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Strong Q2 beat on revenue and EPS and top-end beat vs company guidance; Adjusted EBITDA performance robust even as S&P standardized EBITDA trails consensus—model definitions matter for how the Street reacts .
  • Mix and productivity remain tailwinds: higher guest spend (+4%), more revenue days (+1%), fleet expansion contributions (Windstar renewal, Oceania Allura launch) .
  • H2 catalysts: Q3 guidance implies continued sequential growth; nine new ship builds commence in 2025; AI initiatives flagged by management could support conversion and cost efficiency narrative .
  • Watch land-based spa softness and resort revenue metrics; average weekly resort revenue dipped in Q2; continued hotel closures impact land segment .
  • Balance sheet flexibility supports returns: $0.04 dividend maintained; $86.2M liquidity; $75M remaining repurchase authorization—buyback activity likely opportunistic .
  • Margins trending up sequentially (EBIT and net margin); if macro softens, Q1 commentary suggests onboard spend remains resilient, with prebooking and high-end services stable .
  • Near-term trading: narrative favors beats and raised EBITDA guidance; monitor whether sell-side aligns to company Adjusted EBITDA vs standardized metrics; medium-term thesis hinges on fleet growth, pricing/productivity, and AI-enabled operating leverage .

Values marked with * retrieved from S&P Global.

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