Contradictions in OneSpaWorld's 2025 Q1 Call: Staffing Strategies, Consumer Demand, and Economic Resilience

Medi-spa staffing and growth strategy, cruise line marketing and consumer sentiment, pre-booking focus and energy, demand for high-end services, and impact of economic downturns are the key contradictions discussed in OneSpaWorld's latest 2025Q1 earnings call.



Revenue and EBITDA Growth:
- OneSpaWorld Holdings Limited reported total revenue of $219.6 million for Q1 2025, up 4% compared to Q1 2024.
- Adjusted EBITDA increased by 5% to $26.6 million. The growth was driven by strong cruise line partnerships, new ship additions, and enhanced productivity in health and wellness centers.

Cruise Line Partnerships and Ship Growth:
- The company reported operating health and wellness centers on 199 ships at the end of Q1 2025, with an average ship count of 193 for the quarter.
- Growth in ship count and partnerships were driven by new agreements with cruise lines like Norwegian Cruise Lines and P&O Cruise Lines, enhancing service offerings and market penetration.

Medi-Spa Services Expansion:
- Medi-spa services were available on 148 ships, up from 142 ships at the end of the 2024 Q1.
- The expansion was supported by the rollout of advanced technologies like CoolSculpting Elite and FLX, which improved results and reduced treatment time, contributing to a 20% growth in medi-spa revenues.

Capital Allocation and Share Repurchase:
- OneSpaWorld's board of directors approved a new $75 million share repurchase program, extending the previous $50 million program.
- This decision reflects the company's strong competitive and financial position, supported by consistent free cash flow generation and a commitment to enhancing shareholder value.