OneSpaWorld Forecasts Q3 Adjusted EBITDA of $33-$35 Million.

OneSpaWorld forecasts Q3 adjusted EBITDA of $33-35 million. The company's financial health is underscored by strong revenue growth, profitability, and balance sheet strength. However, warning signs include insider selling and potentially overvalued valuation metrics. The business performance is driven by its strategic focus on the health and wellness sector, particularly within the cruise and resort markets. Market sentiment is neutral, and institutional ownership is high. Risk assessment indicates caution due to insider selling and potentially overvalued valuation metrics.

OneSpaWorld Holdings Limited (NASDAQ: OSW), a global leader in health and wellness services and products on-board cruise ships and in destination resorts, has reported its second-quarter (Q2) fiscal 2025 results, showcasing robust growth and financial health. The company announced total revenues of $240.7 million, net income of $19.9 million, and adjusted EBITDA of $30.5 million, reaffirming its fiscal 2025 annual total revenues guidance and increasing its annual adjusted EBITDA guidance [1].

Executive Chairman and CEO Leonard Fluxman highlighted the company's strong performance, attributing it to the team's efforts in leveraging the global operating platform and strategic investments. The company's strategic focus on the health and wellness sector, particularly within the cruise and resort markets, has driven its business performance [1].

The company's financial highlights include:

- Revenue Growth: Total revenues increased by 7% to $240.7 million compared to $224.9 million in Q2 2024, driven by a 4% increase in average guest spend, a 1% increase in revenue days, and fleet expansion [1].
- Profitability: Net income increased by 27% to $19.9 million, and adjusted net income increased by 22% to $25.8 million, reflecting strong operational performance [1].
- EBITDA: Adjusted EBITDA increased by 13% to $30.5 million, demonstrating the company's efficiency and profitability [1].
- Liquidity: The company ended Q2 2025 with $86.2 million in total liquidity, including cash and a fully undrawn $50 million credit facility [1].

The company also announced a quarterly dividend payment of $0.04 per common share, payable on September 3, 2025, to shareholders of record as of August 20, 2025 [1].

For the third quarter (Q3) 2025 and the full fiscal year 2025, OneSpaWorld has provided guidance:

- Q3 2025: Total revenues are expected to be in the range of $255-$260 million, with adjusted EBITDA forecasted at $33-$35 million [1].
- FY2025: Total revenues are projected to be in the range of $950-$970 million, with adjusted EBITDA expected to be in the range of $140-$150 million [1].

However, the company's financial health is not without warning signs. Insider selling has been observed, which could indicate potential concerns among insiders. Additionally, the company's valuation metrics may be overvalued, warranting caution among investors.

In conclusion, OneSpaWorld's Q2 results demonstrate strong financial performance, driven by its strategic focus on the health and wellness sector. The company's guidance for Q3 and FY2025 reflects continued growth and profitability. However, investors should remain cautious due to insider selling and potentially overvalued valuation metrics.

References:

[1] https://www.businesswire.com/news/home/20250730108943/en/OneSpaWorld-Reports-Second-Quarter-Fiscal-2025-Results