OneSpaWorld Holdings Reports Record Fourth Quarter and Fiscal Year 2025 Earnings

OneSpaWorld Holdings has reported an impressive performance for the fourth quarter and fiscal year 2025, showcasing record revenues and adjusted EBITDA. The company's strategic initiatives, focus on innovation, and operational efficiency have all contributed to its robust growth. In this article, we will delve into the financial performance, strategic initiatives, and future outlook of OneSpaWorld, providing investors with detailed insights from the recent earnings call.

Financial Performance

During the fourth quarter of fiscal year 2025, OneSpaWorld Holdings achieved total revenues of $242.1 million, marking an 11% increase from $217.2 million in the same quarter of 2024. This growth was driven by several factors, including:

Fleet expansion from new ship builds in 2025, contributing $15.5 million to total revenues.
A 2% increase in revenue days, which added $8.7 million.
A 1% increase in average guest spending, which accounted for $2.1 million.

Adjusted EBITDA for the quarter rose to $31.2 million, up from $26.7 million in Q4 2024. OneSpaWorld also reported a net income of $12.1 million or $0.12 per diluted share, down from $14.4 million or $0.14 per diluted share in the prior year, primarily due to restructuring expenses and impairment charges.

For the entire fiscal year, total revenues reached $961 million, a 7% increase compared to $895 million in 2024. Adjusted net income rose to $102.9 million, translating to $0.99 per diluted share, reflecting a 15% increase year-over-year. Adjusted EBITDA for the fiscal year also increased by 10%, totaling $123.3 million.

Strategic Initiatives

OneSpaWorld has been actively pursuing new strategic initiatives to enhance its market position:

New Ship Builds: The company continued to solidify its market leadership by introducing health and wellness centers aboard two new ship builds, Disney Destiny and Star Seeker. For 2026, OneSpaWorld plans to launch centers on six new ships, further expanding its operational footprint.
Higher Value Services: The introduction of high-value services such as medispa treatments and acupuncture has expanded OneSpaWorld’s addressable market. The company reported revenue growth of 23% to 40% in Q4 from these new services.
AI Integration: The implementation of advanced AI technologies is set to enhance operational efficiency. OneSpaWorld is deploying a machine learning algorithm to optimize pricing and improve revenue utilization, with a dynamic price optimization model being introduced to pre-bookings.
Focus on Employee Retention: The company has made significant strides in improving staff retention rates, which increased by 4 percentage points compared to 2024. This focus on employee satisfaction is expected to enhance overall service quality and guest experiences.

Leonard Fluxman, Executive Chairman and CEO, emphasized the importance of innovation in driving growth and efficiency, stating, > “Our unique capabilities and the successful execution of our Strategy have produced 19 consecutive quarters of year-over-year growth.”

Future Outlook

Looking ahead, OneSpaWorld Holdings has reaffirmed its guidance for fiscal year 2026, expecting total revenues to exceed the $1 billion mark for the first time. The company anticipates total revenues in the range of $1.01 billion to $1.03 billion, reflecting high single-digit growth at the midpoint. Additionally, adjusted EBITDA is projected to be between $128 million and $138 million, also indicating strong growth.

Management has expressed confidence in achieving these targets due to several key factors:

The annualization of new ships that entered service in 2025.
The introduction of six new health and wellness centers commencing voyages in 2026.
Continuous enhancements in product and service offerings, bolstered by a strong commitment to customer service excellence.

Stephen Lazarus, President and CFO, remarked that the company is well-positioned to deliver strong results supported by its operational excellence and innovative strategies.

Conclusion

In summary, OneSpaWorld Holdings has demonstrated remarkable growth in its fourth quarter and fiscal year 2025 results, driven by strategic initiatives and a commitment to innovation. With a strong financial performance and an optimistic outlook for fiscal 2026, the company appears poised for continued success. Investors should consider OneSpaWorld as it leverages its unique market position and operational efficiencies to enhance shareholder value in the coming years. As the company continues to implement AI technologies and expand its service offerings, it remains a compelling option for those interested in the health and wellness sector within the cruise industry.