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OneSpaWorld Holdings Ltd (OSW)
NASDAQ:OSW
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OneSpaWorld Holdings (OSW) AI Stock Analysis

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OSW

OneSpaWorld Holdings

(NASDAQ:OSW)

Rating:69Neutral
Price Target:
$24.00
▲(9.34% Upside)
OneSpaWorld Holdings shows strong financial recovery and positive earnings call sentiment, which are the most significant factors driving the score. Technical indicators are neutral, and the valuation suggests the stock is relatively expensive, slightly offsetting the positive aspects.
Positive Factors
Growth Initiatives
The company is executing well and will benefit from seven ship introductions which should support future growth.
Operational Performance
Adjusted EBITDA grew 13%, indicating strong operational performance.
Negative Factors
Demand Visibility
OSW has limited visibility into future demand since much of its revenue depends on real-time onboard spending, and pre-bookings have a shorter window than cruise ticket bookings.
Economic Sensitivity
OSW noted that revenues and EBITDA contracted just 10% during the Great Financial Crisis, suggesting resilience and potential to outperform in a milder economic downturn.

OneSpaWorld Holdings (OSW) vs. SPDR S&P 500 ETF (SPY)

OneSpaWorld Holdings Business Overview & Revenue Model

Company DescriptionOneSpaWorld Holdings (OSW) is a leading provider of health and wellness services, specializing in spa and wellness offerings on cruise ships, resorts, and other destinations. The company operates a diverse portfolio of wellness facilities, including spas, fitness centers, and beauty salons, catering to a wide range of clientele seeking relaxation and rejuvenation. OSW focuses on delivering a premium experience through a combination of holistic therapies, beauty treatments, and fitness services, positioning itself as a key player in the wellness tourism industry.
How the Company Makes MoneyOneSpaWorld generates revenue primarily through the provision of its health and wellness services on cruise ships and in resort locations. The company earns money by charging customers for various treatments, including massages, facials, and fitness classes. Additionally, OSW has established contracts with cruise lines and resorts, which provide a steady stream of income through service fees and revenue-sharing agreements. Key revenue streams include direct customer payments for services, sales of wellness products, and partnerships with hospitality brands that enhance the company's service offerings. The growth of the cruise industry and the increasing demand for wellness experiences contribute significantly to OSW's earnings.

OneSpaWorld Holdings Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: 1.11%|
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call presented a largely positive outlook for OneSpaWorld with record revenue and profitability growth, expansion in ship partnerships, and increased guidance for adjusted EBITDA. However, there was a minor setback in the land-based spa business. Overall, the company appears well-positioned for continued success.
Q2-2025 Updates
Positive Updates
Record Revenue Growth
Total revenues increased 7% to a record $240.7 million compared to $224.9 million in the second quarter of 2024.
Increased Profitability
Income from operations increased 17% to a record $22.1 million, net income rose 27% to $19.9 million, and adjusted EBITDA increased 13% to a record $30.5 million.
Expansion in Ship Partnerships
Renewed partnership with Windstar Cruises and introduced a new health and wellness center onboard the newly launched Oceania Allura.
Growth in Medi-Spa Services
Medi-spa services available on 147 ships, up from 144, and generated over 20% growth for Thermage FLX and CoolSculpting Elite treatments in Q2.
Strong Balance Sheet
Total cash of $36.2 million and full availability on a $50 million revolving loan facility, providing total liquidity of $86.2 million.
Positive Revenue Guidance
Annual revenue guidance affirmed and 2025 adjusted EBITDA guidance increased.
Negative Updates
Decrease in Land-Based Spa Business
A $900,000 decrease in the land-based spa business due to the closure of hotels where operations were previously conducted.
Company Guidance
During the OneSpaWorld Second Quarter 2025 Earnings Call, the company provided a comprehensive overview of its financial performance and strategic initiatives. Total revenues for the quarter increased by 7% to a record $240.7 million, while income from operations rose by 17% to $22.1 million. Net income saw a significant 27% increase, reaching $19.9 million, and adjusted EBITDA grew by 13% to $30.5 million. The company operated health and wellness centers on 200 ships, with an average ship count of 191, and employed 4,365 cruise ship personnel. The quarter marked progress in several key areas, including new ship growth and partnerships, expansion of higher-value services, and productivity enhancements at health and wellness centers. Prebooking revenue accounted for 23% of services, and the company ended the quarter with a strong balance sheet, holding total cash of $36.2 million and full availability on a $50 million revolving loan facility. Annual revenue guidance was affirmed, and adjusted EBITDA guidance for 2025 was increased, reflecting confidence in continued strong performance.

OneSpaWorld Holdings Financial Statement Overview

Summary
OneSpaWorld Holdings shows a strong financial recovery trajectory post-2020, with notable improvements in revenue growth and operational profitability. The balance sheet indicates a stable equity position with improved leverage management, while cash flow statements reveal robust free cash flow generation. Potential risks include fluctuations in profitability margins and financing cash flow volatility, which need to be monitored.
Income Statement
78
Positive
OneSpaWorld Holdings has demonstrated robust revenue growth, with a 65% increase from 2020 to 2022, and further growth in 2023 and 2024. The company's gross profit margin improved significantly post-2020, reaching 14.9% in TTM 2025. The EBIT and EBITDA margins have also seen improvement, demonstrating enhanced operational efficiency. However, net profit margin volatility, as seen with a negative margin in 2023, suggests some instability in profitability.
Balance Sheet
70
Positive
The company's balance sheet shows a healthy equity ratio, improving from 42% in 2020 to 75% in TTM 2025, indicating strong shareholder equity support. The debt-to-equity ratio has decreased over time, reflecting better leverage management. However, fluctuations in total assets and liabilities, along with a decrease in stockholders' equity from 2024 to TTM 2025, present potential risks.
Cash Flow
85
Very Positive
OneSpaWorld exhibits strong cash flow management with consistent free cash flow generation. The operating cash flow to net income ratio is healthy, and significant improvement in free cash flow is observed from 2020 to TTM 2025. However, financing cash flow volatility indicates potential challenges in capital structure adjustments.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue919.26M895.02M794.04M546.26M144.03M120.92M
Gross Profit142.10M132.89M90.23M83.57M8.45M-32.45M
EBITDA106.77M107.41M42.42M37.49M-32.14M-246.62M
Net Income71.15M72.86M-2.97M53.16M-68.52M-287.98M
Balance Sheet
Total Assets731.82M746.42M706.14M717.43M688.87M702.28M
Cash, Cash Equivalents and Short-Term Investments35.03M57.44M27.70M32.06M30.94M41.55M
Total Debt109.38M112.74M170.63M227.13M230.46M229.43M
Total Liabilities183.49M191.93M272.07M351.63M394.96M276.75M
Stockholders Equity548.33M554.50M434.07M365.81M293.90M320.83M
Cash Flow
Free Cash Flow66.71M72.06M57.96M19.94M-37.97M-38.68M
Operating Cash Flow75.56M78.80M63.38M24.76M-35.10M-36.55M
Investing Cash Flow-8.85M-6.74M-5.42M-4.83M-2.87M-2.13M
Financing Cash Flow-94.45M-42.21M-62.66M-18.72M27.47M68.55M

OneSpaWorld Holdings Technical Analysis

Technical Analysis Sentiment
Positive
Last Price21.95
Price Trends
50DMA
21.20
Positive
100DMA
19.58
Positive
200DMA
19.45
Positive
Market Momentum
MACD
0.24
Negative
RSI
64.10
Neutral
STOCH
67.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OSW, the sentiment is Positive. The current price of 21.95 is below the 20-day moving average (MA) of 21.97, above the 50-day MA of 21.20, and above the 200-day MA of 19.45, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 64.10 is Neutral, neither overbought nor oversold. The STOCH value of 67.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OSW.

OneSpaWorld Holdings Risk Analysis

OneSpaWorld Holdings disclosed 31 risk factors in its most recent earnings report. OneSpaWorld Holdings reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

OneSpaWorld Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$2.24B32.1113.16%0.74%8.51%31.24%
69
Neutral
$6.26B27.488.66%17.25%93.88%
66
Neutral
$2.82B13.52-52.57%-1.43%-2.50%
61
Neutral
$9.12B48.03-79.88%12.47%22.74%
61
Neutral
$17.42B12.39-5.32%3.12%1.53%-15.37%
50
Neutral
$3.20B58.47%-7.76%79.66%
48
Neutral
$444.98M22.27%-3.02%-517.53%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
OSW
OneSpaWorld Holdings
22.96
7.70
50.46%
PRKS
United Parks & Resorts
51.28
2.59
5.32%
PLNT
Planet Fitness
106.95
25.88
31.92%
PTON
Peloton Interactive
7.69
2.85
58.88%
XPOF
Xponential Fitness
8.80
-5.70
-39.31%
LTH
Life Time Group Holdings
28.31
3.44
13.83%

OneSpaWorld Holdings Corporate Events

Shareholder Meetings
OneSpaWorld Holdings Approves Proposals at Annual Meeting
Neutral
Jun 12, 2025

On June 9, 2025, OneSpaWorld Holdings Limited conducted its 2025 Annual Meeting of Shareholders, where approximately 95% of the company’s common shares were voted. All director nominees were elected, and all proposals, including executive compensation and the appointment of Ernst & Young LLP as the independent accounting firm, were approved as recommended by the Board of Directors.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 22, 2025