XI
XWELL, Inc. (XWEL)·Q1 2025 Earnings Summary
Executive Summary
- Q1 2025 revenue was approximately $7.0M, down year over year on lower XpresTest and XpresSpa contributions, partly offset by a new Priority Pass revenue stream; operating loss widened versus Q1 2024 on higher one-time costs, and net loss increased to approximately $4.7M .
- The CDC’s Traveler-based Genomic Surveillance (TGS) program was extended for three years; however, TGS revenue in Q1 came in lower than anticipated due to timing of the extension and is expected to be made up in subsequent quarters .
- Continued cost discipline: cost of sales decreased ~6% YoY and total operating expenses declined ~11% YoY in Q1; liquidity at quarter-end included ~$3.7M cash and ~$7.3M marketable securities, with no long-term debt .
- Strategic initiatives continue: tech-forward Penn Station opening targeted for mid-2025; expanding off-airport presence (Naples Wax Center) and pursuing medspa acquisitions to broaden wellness platform .
- Potential stock reaction catalysts: visibility on TGS revenue catch-up, execution on Penn Station mid-2025 opening, and clarity on medspa acquisition pipeline .
What Went Well and What Went Wrong
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What Went Well
- Secured three-year extension of CDC TGS program, reinforcing multi-year visibility in biosurveillance .
- Cost discipline persisted: Q1 total cost of sales down ~6% YoY, total operating expenses down ~11% YoY .
- New distribution/revenue channel: Priority Pass contributed a new revenue stream in Q1, helping offset lower XpresSpa/XpresTest revenue .
- Quote: “With our renewed CDC partnership, continued discipline in operations, and a clear growth plan in wellness and beauty, we believe we are expanding what accessible wellness looks like…” – Ezra Ernst, CEO .
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What Went Wrong
- Top-line pressure: Q1 revenue decreased versus Q1 2024 due to lower XpresTest and XpresSpa revenue despite new Priority Pass revenue .
- Profitability: Operating loss (
$3.2M) and net loss ($4.7M) increased vs. the prior-year quarter, partly driven by higher one-time and seasonal costs . - Timing headwind: Q1 TGS revenue underperformed expectations due to contract timing; management expects recovery in subsequent quarters .
Financial Results
- Quarterly performance vs sequential and year-over-year comparisons
Values marked with * retrieved from S&P Global.
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Primary-source cross-checks and context:
- Management reported Q1 2025 total revenue “approximately $7.0M” and net loss “approximately $4.7M”; operating loss “approximately $3.2M” .
- Q3 2024 revenue disclosed at $8.4M; operating loss ~$4.8M; net loss ~$4.8M .
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Segment Revenue Mix
Note: Priority Pass became a new revenue stream in Q1 2025 within the spa category .
- KPIs and Liquidity
Guidance Changes
No quantitative revenue/EPS/margin guidance was provided in the Q1 2025 materials .
Earnings Call Themes & Trends
Note: The company did not host a Q1 2025 call; a call was planned for the “next several weeks” . Trends below compare Q3 2024 remarks and FY 2024 update to Q1 2025 press release.
Management Commentary
- Strategic focus: “With our renewed CDC partnership, continued discipline in operations, and a clear growth plan in wellness and beauty, we believe we are expanding what accessible wellness looks like—anchored in science…” – Ezra Ernst, CEO .
- Platform vision: “Our vision is a seamless continuum of care… from biometric screenings at the airport to advanced skin and body treatments on Main Street, we believe that we are democratizing access to trusted, science-proven wellness.” – Ezra Ernst .
- Brand and footprint: XpresSpa remains the category leader and is being upgraded with science-driven offerings; off-airport expansion continues via Naples Wax Center and medspa acquisitions plan; Penn Station location targeted for mid-2025 .
Q&A Highlights
- No Q&A this quarter; the company stated it intends to host an investor call and webcast in the coming weeks to update on growth initiatives and programs .
Estimates Context
- Wall Street consensus (S&P Global) for Q1 2025 was not available for EPS or revenue (no published consensus or estimate counts). As such, beat/miss vs. estimates cannot be determined [GetEstimates returned no consensus].
- Actuals for context: Revenue $7.023M*, Diluted EPS $(1.00)*.
Values marked with * retrieved from S&P Global.
Key Takeaways for Investors
- Near-term revenue visibility improved by the 3-year TGS extension; Q1 shortfall is a timing issue with expected catch-up in later quarters, which could re-accelerate XpresTest revenue cadence .
- Continued cost control is a key lever; Q1 cost of sales and OpEx fell YoY, supporting the path back to profitability if revenue normalizes with TGS catch-up and spa channel uplift .
- Priority Pass as a new revenue stream and tech-forward format (e.g., Penn Station) may drive improved utilization and mix in XpresSpa over 2025 .
- Off-airport expansion (Naples Wax) and planned medspa acquisitions broaden TAM and diversify revenue beyond airport traffic, potentially smoothing seasonality and travel-related cyclicality .
- Liquidity remains adequate for near-term execution with ~$11.0M combined cash and marketable securities and no long-term debt; disciplined capital deployment and operating execution remain critical .
- Watch for: (1) timing and magnitude of TGS revenue catch-up, (2) confirmation of Penn Station mid-2025 opening, (3) clarity and pace of medspa acquisitions, and (4) incremental Priority Pass traction in spa revenue .
Additional supporting citations and context:
- Q1 2025 press release (8-K 2.02, Exhibit 99.1): revenue, segment mix, cost decreases, operating loss, net loss, liquidity, TGS timing commentary, Priority Pass revenue stream, Penn Station timing .
- FY 2024 8-K: multi-year TGS contract values, FY cost/margin improvements, Naples Wax expansion plans, capital raise in Jan 2025 .
- Q3 2024 8-K and call transcript: revenue composition, OpEx/cost reduction trajectory, Priority Pass traction, PHL opening, out-of-airport expansion outlook .
S&P Global data disclaimer: All values marked with * are retrieved from S&P Global.