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1. Company Snapshot

1.a. Company Description

OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts worldwide.Its health and wellness centers offer services, such as traditional body, salon, and skin care services and products; self-service fitness facilities, specialized fitness classes, and personal fitness training; pain management, detoxifying programs, and body composition analyses; weight management programs and products; and medi-spa services.The company also provides its guests access to beauty and wellness brands, including ELEMIS, Kérastase, and Dysport, with various brands offered exclusively in the cruise market.


As of December 31, 2021, it offered health, wellness, fitness, beauty services, treatments, and products onboard 170 cruise ships and at 52 destination resorts.The company is based in Nassau, Bahamas.

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1.b. Last Insights on OSW

OneSpaWorld Holdings Limited's recent performance was driven by several positive factors. The company received a consensus "Buy" rating from seven research firms, with six analysts rating the stock as a buy and one assigning a strong buy rating. Additionally, Ethic Inc. increased its stake in the company by 12.3% in Q2. The company's Q3 earnings matched estimates, with quarterly earnings of $0.29 per share, a 12% increase from the previous year. Institutional ownership of the company's shares stands at 96%.

1.c. Company Highlights

2. OneSpaWorld's Q3 2025 Earnings: A Strong Performance

OneSpaWorld reported a 7% increase in total revenues to $258.5 million for the third quarter, with income from operations and adjusted EBITDA reaching all-time records. Net income also hit a third-quarter record, rising 13% to $24.3 million compared to $21.6 million in the third quarter of 2024. Earnings per share (EPS) came in at $0.29, in line with analyst estimates. The company's operating margin stood at 17.3%, a healthy level that indicates strong profitability. Adjusted EBITDA was $35 million, up from $33 million in the third quarter of 2024.

Publication Date: Nov -25

📋 Highlights
  • Revenue Growth:: Total revenues rose 7% to $258.5 million, driven by 4% higher average guest spend and fleet expansion.
  • Net Income Record:: Net income hit $24.3 million, a 13% increase from $21.6 million in Q3 2024.
  • Medi-Spa Expansion:: Services available on 150 ships, up from 144 in Q3 2024, with 151 expected by year-end.
  • Adjusted EBITDA:: Reached $35 million, up from $33 million in Q3 2024, with 2025 guidance raised to 10% growth at midpoint.
  • Shareholder Returns:: $4.1 million in dividends and $17.6 million in share repurchases, alongside $11.3 million in debt repayment.

Revenue Drivers

The revenue growth was driven by a 4% increase in average guest spend, fleet expansion, and a 1% increase in revenue days. Medi-Spa services were available on 150 ships, up from 144 ships at the end of the third quarter last year. As Leonard Fluxman noted, "We captured new ship growth with current cruise line partners, introduced new health and wellness centers on board for new ship builds, and continued to expand higher-value services and products." This strategic focus on higher-value services has contributed to the increase in average guest spend.

Valuation and Outlook

With a P/E Ratio of 27.81 and an EV/EBITDA of 17.59, the market appears to have priced in a certain level of growth for OneSpaWorld. Analysts estimate revenue growth at 8.2% for next year, which is slightly higher than the company's guidance for fiscal 2025. The company's strong cash flow generation and asset-light business model are expected to drive long-term value creation for shareholders. The return of $4.1 million to shareholders through the quarterly dividend payment and $17.6 million from share repurchases during the quarter further underscores the company's commitment to returning value to shareholders.

AI Initiatives and Future Plans

OneSpaWorld is making significant investments in AI initiatives aimed at enhancing revenue, operational efficiency, and productivity. While the company is still in the process of quantifying the benefits of these initiatives, Stephen Lazarus mentioned that it's likely in the second quarter of next year when they start to become more specific about expected improvements. The company's focus on maximizing facility utilization, staff training, and prebooking services through AI is expected to drive future growth.

Financial Position

The company's cash balance stands at around $25 million, with a $50 million line of credit available. OneSpaWorld is prioritizing share repurchases, dividends, and debt repayment, having repaid $11.3 million on its term loan facility during the quarter. The Net Debt / EBITDA ratio is -0.26, indicating a healthy financial position with negative net debt.

3. NewsRoom

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OneSpaWorld Holdings Limited $OSW Shares Purchased by Creative Planning

Nov -24

Source: defenseworld.net

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Contrasting OneSpaWorld (NASDAQ:OSW) and AiRWA (NASDAQ:YYAI)

Nov -15

Source: defenseworld.net

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OneSpaWorld Holdings Limited $OSW Shares Sold by Teacher Retirement System of Texas

Nov -06

Source: defenseworld.net

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InventHelp Inventor Develops Convenient Holder for Vaping Products (OSW-152)

Nov -05

Source: prnewswire.com

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Bessemer Group Inc. Buys 5,840 Shares of OneSpaWorld Holdings Limited $OSW

Nov -03

Source: defenseworld.net

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OneSpaWorld Holdings Limited (NASDAQ:OSW) Receives Consensus Recommendation of “Buy” from Analysts

Oct -31

Source: defenseworld.net

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Comparing Viking (NYSE:VIK) and OneSpaWorld (NASDAQ:OSW)

Oct -31

Source: defenseworld.net

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Flight Centre (OTCMKTS:FGETF) & OneSpaWorld (NASDAQ:OSW) Head to Head Contrast

Oct -31

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.46%)

6. Segments

Maritime

Expected Growth: 7.4%

Growing demand for luxury experiences, increasing cruise ship deployments, and rising wellness trends drive the maritime spa market growth.

Destination Resorts

Expected Growth: 8.5%

Growing demand for luxury travel, increasing focus on wellness and self-care, and expansion into new resort locations drive growth in the destination resorts segment.

Timetospa.com

Expected Growth: 10.4%

Growing demand for luxury wellness products, increasing online shopping trends, and rising awareness of self-care drive the growth of Timetospa.com. The platform's wide range of high-end spa and wellness products, coupled with its strong online presence, position it for continued growth in the luxury e-commerce market.

7. Detailed Products

Onboard Spa and Wellness Services

Provides spa and wellness services onboard cruise ships, offering a range of treatments and amenities to passengers.

Land-Based Spa and Wellness Services

Operates spas and wellness centers at resorts, hotels, and other land-based locations, offering a range of treatments and amenities.

Product and Equipment Sales

Sells spa and wellness products, including skincare and beauty products, as well as equipment and furniture for spas and wellness centers.

Consulting and Management Services

Provides consulting and management services to spas and wellness centers, helping them to improve operations and increase revenue.

8. OneSpaWorld Holdings Limited's Porter Forces

Forces Ranking

Threat Of Substitutes

OneSpaWorld Holdings Limited operates in a niche market, providing spa and wellness services to cruise lines and resorts. While there are substitutes available, such as land-based spas, the convenience and unique experience offered by OneSpaWorld make it difficult for substitutes to pose a significant threat.

Bargaining Power Of Customers

OneSpaWorld's customers are primarily cruise lines and resorts, which have limited bargaining power due to the specialized nature of the services provided. The company's strong relationships with its customers also reduce the bargaining power of customers.

Bargaining Power Of Suppliers

OneSpaWorld relies on a network of suppliers for its spa and wellness products, but the company's scale and global presence give it some bargaining power. However, the specialized nature of the products and services required means that suppliers still have some bargaining power.

Threat Of New Entrants

The barriers to entry in the spa and wellness services market are relatively high, due to the specialized nature of the services and the need for significant investment in training and equipment. This makes it difficult for new entrants to pose a significant threat to OneSpaWorld.

Intensity Of Rivalry

The spa and wellness services market is competitive, with several established players. However, OneSpaWorld's strong relationships with its customers and its specialized services help to differentiate it from competitors, reducing the intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 26.99%
Debt Cost 14.51%
Equity Weight 73.01%
Equity Cost 14.51%
WACC 14.51%
Leverage 36.97%

11. Quality Control: OneSpaWorld Holdings Limited passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Johnson Outdoors

A-Score: 5.4/10

Value: 8.7

Growth: 1.9

Quality: 3.3

Yield: 5.0

Momentum: 8.0

Volatility: 5.3

1-Year Total Return ->

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OneSpaWorld

A-Score: 5.2/10

Value: 2.6

Growth: 6.9

Quality: 6.4

Yield: 1.0

Momentum: 7.5

Volatility: 6.7

1-Year Total Return ->

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Vista Outdoor

A-Score: 4.5/10

Value: 5.2

Growth: 5.0

Quality: 5.7

Yield: 0.0

Momentum: 5.0

Volatility: 6.0

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JAKKS Pacific

A-Score: 4.1/10

Value: 5.9

Growth: 4.4

Quality: 4.6

Yield: 4.0

Momentum: 2.0

Volatility: 4.0

1-Year Total Return ->

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Xponential Fitness

A-Score: 3.7/10

Value: 8.5

Growth: 5.7

Quality: 5.5

Yield: 0.0

Momentum: 1.5

Volatility: 1.0

1-Year Total Return ->

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American Outdoor Brands

A-Score: 3.6/10

Value: 6.9

Growth: 4.2

Quality: 4.2

Yield: 0.0

Momentum: 3.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

20.01$

Current Price

20.01$

Potential

-0.00%

Expected Cash-Flows