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ONESPAWORLD HOLDINGS Ltd (OSW) Q3 2025 Earnings Summary

Executive Summary

  • Record Q3: total revenues $258.5M, net income $24.3M, and Adjusted EBITDA $35.0M; results landed at the high end of guidance, marking the 18th consecutive quarter of YoY growth in total revenues and Adjusted EBITDA .
  • Mix and pricing drove the quarter: +4% average guest spend, newbuild fleet expansion, and +1% revenue days; destination resorts modestly offset (-$1.0M) amid hotel closures .
  • FY25 outlook raised at the midpoint: revenue to $960–$965M (from $950–$970M) and Adjusted EBITDA to $122–$124M (from $117–$127M); Q4 guide: revenue $241–$246M and Adjusted EBITDA $30–$32M .
  • Capital returns accelerated: quarterly dividend increased 25% to $0.05 per share and $17.6M buybacks in Q3 with another $15.0M repurchased post-quarter; $42.4M authorization remaining as of Oct 29, 2025 .

What Went Well and What Went Wrong

What Went Well

  • Delivered high-end-of-guide execution with record revenue and Adjusted EBITDA; CEO: “record third quarter… at the high end of our guidance” and continued asset‑light free cash flow fueling returns and investment .
  • Commercial drivers strengthened: +4% average guest spend, fleet additions, and +1% revenue days; pre‑booked revenue tailwind of $2.7M supported demand quality .
  • Balance sheet and capital allocation: cash $30.8M, total liquidity $80.8M; dividend increased to $0.05 and $17.6M of buybacks in Q3 plus $15.0M more in Q4‑to‑date; term loan paydown of $11.3M; CFO emphasized accelerating AI integration to drive efficiencies and growth .

What Went Wrong

  • Land-based softness: destination resort revenue decreased by $1.0M in the quarter, reflecting hotel closures; average weekly revenue per resort fell YoY to $10,794 from $11,860 .
  • Small impairment and ongoing non-cash costs: recorded $0.18M long‑lived asset impairment; stock-based comp $2.08M in Q3; both excluded from Adjusted figures .
  • Ship delivery timing: forecasted period‑end ship count commentary reflects a shift in delivery of one vessel to 2026, a modest capacity timing headwind .

Financial Results

GAAP and non‑GAAP highlights (YoY and QoQ)

MetricQ3 2024Q2 2025Q3 2025
Total Revenues ($M)$241.7 $240.7 $258.5
Income from Operations ($M)$25.0 $22.1 $26.3
Net Income ($M)$21.6 $19.9 $24.3
Diluted EPS ($)$0.20 $0.19 $0.23
Adjusted EBITDA ($M)$33.0 $30.5 $35.0

Notes: Adjusted EBITDA is a non‑GAAP metric as defined and reconciled by the company .

Segment revenue mix

Segment Revenues ($M)Q3 2024Q2 2025Q3 2025
Service Revenues$194.4 $193.4 $208.0
Product Revenues$47.3 $47.4 $50.5
Total Revenues$241.7 $240.7 $258.5

Operating KPIs

KPIQ3 2024Q2 2025Q3 2025
Period End Ship Count196 200 204
Average Ship Count195 191 199
Revenue Days17,908 17,426 18,338
Avg Weekly Revenue per Ship ($)$91,019 $92,936 $95,675
Avg Rev per Shipboard Staff per Day ($)$602 $608 $622
Period End Resort Count52 51 49
Average Resort Count52 50 50
Avg Weekly Revenue per Resort ($)$11,860 $13,019 $10,794
Capital Expenditures ($000s)$1,111 $2,729 $5,598

S&P Global reported margin metrics (EBITDA margin %)

MetricQ1 2025Q2 2025Q3 2025
EBITDA Margin %11.62%*11.79%*12.72%*

Values marked with * retrieved from S&P Global.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total RevenuesFY 2025$950–$970M (7/30) $960–$965M (10/29) Raised at midpoint
Adjusted EBITDAFY 2025$117–$127M (7/30) $122–$124M (10/29) Raised at midpoint
Total RevenuesQ4 2025N/A$241–$246M New
Adjusted EBITDAQ4 2025N/A$30–$32M New
Dividend per ShareQuarterly$0.04 (Q2) $0.05 (Q3 declaration) Raised 25%

Earnings Call Themes & Trends

Note: A Q3’25 earnings call was held, but a transcript was not available in the document set. Themes below are drawn from management’s prepared remarks in press releases.

TopicPrevious Mentions (Q1 and Q2)Current Period (Q3)Trend
AI/Technology initiatives“Developing initiatives employing emerging AI technologies” to enhance experiences and results (Q2) “Accelerate integration of AI technologies to drive operational efficiencies and revenue, cash flow and earnings growth” (Q3) Uptrend in emphasis and deployment
Fleet/newbuild deploymentOn track to operate aboard nine new ship builds in 2025; renewals (Windstar) and new Oceania Allura launch (Q2) Launched wellness centers on four new ship builds in Q3; two more before year‑end Expanding capacity
Demand/Spend/Pre‑bookingsQ1–Q2: pre‑booked revenue tailwinds and guest spend increases +4% average guest spend; $2.7M higher pre‑booked revenue; +1% revenue days Healthy mix/pricing
Destination resortsQ1–Q2: small declines linked to hotel closures Resorts down $1.0M; avg weekly revenue per resort down YoY Ongoing headwind
Capital allocationQ1–Q2: dividend $0.04; new $75M buyback authorization; Q2 cash $36.2M, liquidity $86.2M Dividend to $0.05; $17.6M buybacks in Q3 and $15.0M post‑quarter; liquidity $80.8M Increased returns
Financing/interestQ1–Q2: lower net interest expense YoY Net interest expense down $1.1M YoY in Q3 Tailwind persists
Capacity timing—Delivery of one vessel shifted to 2026 (forecast note) Minor timing delay

Management Commentary

  • CEO Leonard Fluxman: “We delivered a record third quarter at the high end of our guidance… Our execution of our asset‑light business model continues to generate strong free cash flow, enabling us to create significant value for shareholders through an increasing quarterly dividend, share repurchases, accelerated debt paydown, and strategic investments…” .
  • On operations: “We launched wellness centers on four new ship builds during the quarter… with noteworthy increases in guest count, average service frequency per guest, and average guest spend… remain on track to launch… two additional new ship builds before year‑end” .
  • CFO/President/COO Stephen Lazarus: “We continue to accelerate integration of AI technologies to drive operational efficiencies and revenue, cash flow and earnings growth… returned $4.1M via dividend and $17.6M via repurchases… repaid $11.3M of our Term Loan… ended the quarter with $30.8M in cash and $80.8M of total liquidity” .
  • On outlook: “We now expect fiscal 2025 annual Total revenues to increase 8% and Adjusted EBITDA to increase 10% at the mid‑point of the guidance ranges from actual fiscal 2024 annual results” .

Q&A Highlights

  • A Q3’25 earnings call was held; however, a transcript was not available in the retrieved documents. A replay was scheduled and available per the company’s release, but no transcript content could be reviewed for Q&A themes at this time .

Estimates Context

  • S&P Global consensus vs reported (Q3 2025):
    • Revenue: $258.63M est vs $258.52M reported — essentially in line* .
    • Primary EPS: $0.29 est vs $0.29 reported — in line* .
    • EBITDA: $34.76M est vs $32.89M S&P‑defined actual — below consensus on S&P’s EBITDA definition; note company reported Adjusted EBITDA of $35.0M at the high end of its $33–$35M Q3 guide* .
  • Forward look (Q4 2025): S&P Global revenue est $244.49M and EPS est $0.262 vs company guidance revenue $241–$246M and Adjusted EBITDA $30–$32M, implying guidance brackets revenue consensus; EBITDA comparability depends on definition* .

Values marked with * retrieved from S&P Global.

Q3 2025: Consensus vs Actual (S&P Global vs Company)

MetricConsensusActual/Reported
Revenue ($M)$258.63*$258.52
Primary EPS ($)$0.29*$0.29
EBITDA ($M, S&P definition)$34.76*$32.89*
Adjusted EBITDA ($M, Company)—$35.0

Q4 2025: Consensus vs Company Guidance

MetricConsensusCompany Guidance
Revenue ($M)$244.49*$241–$246
Primary EPS ($)$0.262*—
Adjusted EBITDA ($M)$31.70 (FY est midpoint context only)*$30–$32

Key Takeaways for Investors

  • Execution remains strong with high‑end‑of‑guide delivery and record results, underpinned by pricing/mix and capacity additions; this supports the raised FY25 midpoint guide for both revenue and Adjusted EBITDA .
  • Demand quality looks healthy: guest spend +4%, pre‑booked revenue tailwinds, and +1% revenue days; these drivers offset land‑based softness and should continue into Q4 per newbuild ramps .
  • Capital returns accelerating: dividend raised to $0.05 and sizable buybacks ($17.6M in Q3; $15.0M post‑quarter) alongside debt paydown — a supportive shareholder yield dynamic .
  • Estimates framing: Q3 revenue and EPS matched S&P consensus; EBITDA comparison is definition‑dependent — on company’s Adjusted EBITDA basis, results were at the high end of guide; on S&P EBITDA, a modest miss* .
  • Watch resort exposure: average weekly revenue per resort declined YoY; continued rationalization of low‑return locations and focus on maritime growth may be margin‑accretive over time .
  • Near‑term setup: Q4 guide brackets consensus on revenue; continued AI‑enabled productivity and onboard mix could be incremental margin drivers into FY26; one vessel delivery shifts to 2026 but should not alter medium‑term trajectory .
  • Liquidity and leverage in good shape to fund growth and returns: $80.8M liquidity and lower interest expense YoY enhance EPS conversion .

Values marked with * retrieved from S&P Global.

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