Thu, May 1, 8:47 PM (21 days ago)
**OneSpaWorld Holdings Limited (OSW) Q1 2025 Financial Summary** **Financial Health and Performance Metrics:** - **Revenue:** Total revenue for Q1 2025 was $219.6 million, up from $211.2 million in Q1 2024, driven by a 2% increase in Revenue Days and a 2% increase in average guest spend. - **Profit Margins:** Gross profit margin was approximately 76.7% for Q1 2025, slightly down from Q1 2024 due to increased costs associated with higher service and product revenues. - **Net Income:** Net income for Q1 2025 was $15.3 million, a decrease of 28% compared to $21.2 million in Q1 2024, primarily due to a $7.7 million benefit from the change in the fair value of warrant liabilities in Q1 2024. - **Cash Flow:** Net cash provided by operating activities was $10.1 million for Q1 2025, down from $15.0 million in Q1 2024, due to changes in working capital and increased investments in technology and infrastructure. - **Earnings Changes:** Earnings per share (EPS) for Q1 2025 was $0.15, down from $0.21 in Q1 2024. **Quarterly Performance Discussion:** - **Revenue Growth:** The increase in revenue was driven by a 2% increase in Revenue Days and a 2% increase in average guest spend, partially offset by a $1.5 million decrease in land-based spa business due to hotel closures. - **Cost Management:** Cost of services and products increased in line with revenue growth, while administrative expenses and salaries, benefits, and payroll taxes saw moderate increases. - **Interest Expense:** Interest expense decreased by 61% due to lower debt balances and effective interest rates. - **Dividends and Share Repurchases:** The company declared a quarterly dividend of $0.04 per share and repurchased 2,094,498 common shares under the 2024 Share Repurchase Program. **Trends and Uncertainties:** - **Seasonality:** The company experiences varying degrees of seasonality, with the third quarter and holiday periods generally resulting in the highest revenue yields. - **Economic Conditions:** The company's revenues and financial performance are influenced by general economic conditions, including inflation, global health concerns, and customer preferences. - **Weather Impact:** The company's health and wellness centers may be negatively affected by the frequency and intensity of hurricanes, particularly during the peak season from August through October. **Future Operations Impact:** - **Share Repurchase Program:** The company announced a new share repurchase program to repurchase up to $75.0 million of its common shares, funded through available cash. - **Capital Expenditures:** The company continued to invest in technology hardware and software, including artificial intelligence, and medi-spa equipment. - **Debt Management:** The company has concluded that it will have sufficient liquidity to satisfy its existing and planned capital requirements over the next twelve months and to comply with all debt covenants.