Executive Summary

Q2 2025 revenue increased sequentially to $7.69M* from $7.02M* in Q1, but declined year over year versus $9.28M* due to the prior-year CDC surge billing normalization; operating loss was $2.7M and net loss was $2.3M .
Cost discipline continued: cost of sales (-5% YoY) and G&A (-9% YoY); however operating loss widened vs prior year on lower revenue despite reductions in operating expenses .
Strategic momentum: Orlando Magic wellness partnership, Priority Pass expansion, Yelp “Most Loved Airport Brands” recognition, new Clearwater off-airport wellness center, redesigned website, and Penn Station build-out .
Biosecurity tailwind: CDC Traveler-based Genomic Surveillance (TGS) program extended for three years; management noted recognition by incoming administration and related funding legislation .
No explicit financial guidance was provided for Q3/Q4; management emphasized operational execution and profitability focus. S&P Global consensus EPS and revenue were unavailable for comparison (S&P Global).

What Went Well and What Went Wrong

Sequential topline growth with category mix improvement and continued cost discipline; CEO: “focused, multi-pronged strategy to expand our operational footprint…already delivering measurable results” .
Brand and channel momentum: Official wellness spa of the Orlando Magic; recognition by Yelp; Priority Pass expansion broadening access across U.S. and international locations .
Off-airport expansion: New Clearwater wellness center opened; Penn Station tech-forward destination progressing; redesigned XWELL.com integrates brands and booking .

Year-over-year revenue decline ($7.69M* vs $9.28M*) driven by normalization of CDC surge billing in Q2 2024; operating loss widened to $2.7M (vs $1.9M prior year) despite lower expenses .
Profitability remains a challenge: Q2 net loss was $2.3M; EBITDA margin contracted vs prior year; earnings call reiterated ongoing efforts to enhance operational processes .
No guidance ranges provided (revenue, margins, EPS), limiting visibility; first quarter carried elevated one-time costs and a timing impact on CDC program revenue .

Metric	Q2 2024	Q1 2025	Q2 2025
Revenue ($USD Millions)	$9.28M*	$7.02M*	$7.69M*
Operating Loss ($USD Millions)	$1.90M	$3.20M	$2.70M
Net Income - (IS) ($USD Millions)	-$2.00M	-$4.70M	-$2.27M
Diluted EPS - Continuing Operations ($USD)	-$0.48*	-$1.00*	-$0.56*
Gross Margin (%)	33.17%*	18.78%*	23.07%*
EBITDA ($USD Millions)	-$1.65M*	-$2.99M*	-$2.51M*
EBITDA Margin (%)	-17.73%*	-42.60%*	-32.58%*
Net Income Margin (%)	-21.50%*	-67.19%*	-29.51%*

Values marked with an asterisk were retrieved from S&P Global.

Segment revenue mix

Segment	Q1 2025 ($USD Millions)	Q2 2025 ($USD Millions)
XpresSpa	$4.30M	$4.90M
XpresCheck/XpresTest (incl. HyperPointe)	$2.20M	$2.20M
Naples Wax Center	$0.55M	$0.65M

KPIs and liquidity

Metric	Q1 2025	Q2 2025
Cash and Equivalents ($USD Millions)	$3.70M	$5.30M
Marketable Securities ($USD Millions)	$7.30M	$2.90M
Total Current Assets ($USD Millions)	$14.80M	$11.80M
Long-term Debt ($USD)	$0	$0

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q3/Q4 2025	Not provided	Not provided	Maintained (no guidance issued)
Margins/OpEx/Tax Rate	FY 2025	Not provided	Not provided	Maintained (no guidance issued)
Segment-specific guidance	FY 2025	Not provided	Not provided	Maintained (no guidance issued)
Dividends/Capital returns	FY 2025	Not provided	Not provided	Maintained (no guidance issued)

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
CDC TGS program	3-year extension; contract base $53.7M, ceiling $85.7M; critical biosecurity role	Recognized by incoming administration; funding included in legislation	Strengthening policy support
Off-airport expansion	Naples Wax Estero opened; plan for 6 additional Florida locations in 2025	Clearwater wellness center opened; flexible memberships; MedSpa acquisitions targeted in Orlando/Dallas/Salt Lake City	Accelerating footprint
Transportation hubs	Penn Station opening planned mid-2025	Penn Station tech-forward destination preparing to open	Execution progressing
Digital/customer experience	HyperPointe platform; CRM and brand unification	Redesigned XWELL.com integrating brands and booking	Platform upgrade complete
Partnerships/Brand equity	Priority Pass revenue stream began; CDC renewal	Priority Pass expanded; Orlando Magic partnership; Yelp recognition	Broadening access and visibility
Cost discipline/profitability	Reduced operating expenses 2024; Q1 2025 OpEx -11% YoY	Q2 2025 cost of sales -5% YoY; G&A -9% YoY; focus on execution	Ongoing efficiency work

CEO: “We are currently executing a focused, multi-pronged strategy to expand our operational footprint…We believe that these efforts are already delivering measurable results” .
CEO on brand and partnerships: Orlando Magic official wellness spa; Priority Pass expansion; Yelp recognition; redesigned unified digital platform .
CEO on biosecurity: TGS program recognized by incoming administration; company is a vital contributor to national public health and early warning for pathogens .
CFO: Q2 revenue $7.7M; segment mix ($4.9M XpresSpa, $2.2M XpresCheck/HyperPointe, $0.65M Naples Wax); operating loss $2.7M; net loss $2.3M; liquidity $5.3M cash, $2.9M marketable securities, no long-term debt .
CFO: Year-over-year revenue decline due to prior-year surge billing at airports above base contract amounts with the CDC .

No Q&A session was held on the call; prepared remarks only; the conference concluded after management commentary .

S&P Global consensus EPS and revenue estimates for Q2 2025 were unavailable; thus, we cannot benchmark reported results versus consensus. Values retrieved from S&P Global.
Given sequential improvement and stabilizing CDC program revenues post-extension, we expect sell-side models to reassess segment mix and operating loss trajectory; however, absent guidance, revisions may remain conservative until visibility improves .

Sequential revenue growth and improved gross margins vs Q1* alongside cost reductions indicate operational progress, though profitability remains challenged .
The CDC TGS extension and policy recognition provide durable program visibility; normalization from prior surge billing explains YoY revenue decline .
Strategic expansion beyond airports—Clearwater opening, Penn Station build-out, targeted MedSpa M&A—broadens TAM and diversifies revenue streams .
Partnerships (Orlando Magic, Priority Pass) and brand equity (Yelp recognition) enhance demand capture and marketing leverage .
Liquidity improved quarter over quarter with higher cash and no long-term debt; capacity for targeted investment remains while maintaining discipline .
Near term, the narrative hinges on execution: ramping off-airport centers, delivering Penn Station, and translating brand initiatives into margin improvement; absence of guidance may cap immediate estimate revisions .
Medium term, tighter cost control plus diversified wellness channels could compress operating losses; watch for proof points in segment growth, membership uptake, and CDC program run-rate stabilization .

Values marked with an asterisk were retrieved from S&P Global.

References: earnings press release and 8-K ; earnings call transcript ; prior quarter press release (Q1 2025) ; FY 2024 press release .