OneSpaWorld Holdings Ltd (OSW)
NASDAQ:OSW
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OneSpaWorld Holdings
(NASDAQ:OSW)
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Rating:72Outperform
Price Target:
$27.00
▲(10.79% Upside)
Action:ReiteratedDate:02/24/26
The score is driven primarily by improved fundamentals (revenue scale recovery, profitability, and positive cash generation) and a constructive earnings outlook with reaffirmed >$1B revenue guidance. Technicals are supportive with price above key averages and positive momentum. The main constraint is valuation, with a high P/E and modest dividend yield, alongside watch items around 2025 margin compression and softer free cash flow versus 2024.
Positive Factors
Revenue scale recovery & >$1B guidance
Sustained post‑pandemic recovery to $961M and management's first >$1B revenue guidance indicate durable demand restoration and scale. Achieving this scale supports fixed‑cost leverage, better negotiating power with cruise partners, and a stronger base for multi-year revenue and investment planning.
Negative Factors
Margin compression in 2025
A meaningful step‑down in gross and net margins signals rising cost pressure or lower unit economics. If sustained, margin compression could reduce operating leverage benefits from higher revenue, constrain incremental free cash flow, and require pricing or productivity fixes to restore structural profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue scale recovery & >$1B guidance
Sustained post‑pandemic recovery to $961M and management's first >$1B revenue guidance indicate durable demand restoration and scale. Achieving this scale supports fixed‑cost leverage, better negotiating power with cruise partners, and a stronger base for multi-year revenue and investment planning.
Read all positive factors
OneSpaWorld Holdings (OSW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.47B
Dividend Yield0.79%
Average Volume (3M)1.35M
Price to Earnings (P/E)29.9
Beta (1Y)1.06
Revenue Growth7.27%
EPS Growth45.12%
CountryUS
Employees5,191
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)0.24
Shares Outstanding101,451,280
10 Day Avg. Volume2,925,607
30 Day Avg. Volume1,353,420
Financial Highlights & Ratios
PEG Ratio-20.92
Price to Book (P/B)3.94
Price to Sales (P/S)2.23
P/FCF Ratio31.27
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue2.68
Enterprise Value/Gross Profit19.22
Enterprise Value/Ebitda22.68
Forecast
1Y Price Target
$27.00Price Target Upside10.79% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.12
Revenue Forecast (FY)$1.02B
OneSpaWorld Holdings Business Overview & Revenue Model
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...
How the Company Makes Money
OSW generates revenue mainly by operating outsourced spa and wellness concessions for third-party hospitality partners—most prominently cruise lines—under agreements where OSW runs the onboard spa/wellness facilities. Its core revenue streams incl...
OneSpaWorld Holdings Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call communicated strong operating momentum and financial performance — record Q4, double‑digit growth in several adjusted metrics, fleet and Medi‑Spa expansion, meaningful AI deployments, and bullish >$1B 2026 revenue guidance. The company also completed substantial capital returns and reduced net debt. Negative items were limited to one‑time restructuring charges and asset impairments tied to the strategic exit of Asian land‑based operations, a dip in GAAP net income for the quarter, and some increased costs tied to higher service/product activity. Overall the positives (growth, margin expansion on adjusted basis, clear roadmap for AI and dynamic pricing, balance sheet progress and shareholder returns) materially outweigh the transitory negatives.Positive Updates
Record Q4 Performance and Double‑Digit Growth
Total revenue for Q4 increased 11% year-over-year to $242.1M (vs. $217.2M). Adjusted EBITDA for Q4 rose to $31.2M from $26.7M (approximately +16.9%). Adjusted net income for Q4 increased to $24.3M from $21.4M (approximately +13.6%).
Negative Updates
Restructuring Charges and Asset Impairments
Q4 restructuring expenses totaled $2.7M driven by reorganization in the U.K. and Italy and exit of land‑based operations in Asia. Long‑lived asset impairment was $3.0M in Q4 (including a $2.8M impairment related to exiting resort operations in Asia: $2.2M intangible and $0.6M property/equipment/right‑of‑use).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Q4 Performance and Double‑Digit Growth
Total revenue for Q4 increased 11% year-over-year to $242.1M (vs. $217.2M). Adjusted EBITDA for Q4 rose to $31.2M from $26.7M (approximately +16.9%). Adjusted net income for Q4 increased to $24.3M from $21.4M (approximately +13.6%).
Read all positive updates
Company Guidance
OneSpaWorld reaffirmed fiscal 2026 guidance, forecasting total revenues of $1.01–$1.03 billion (the first time above $1.0B) and adjusted EBITDA of $128–$138 million, each representing high-single-digit increases at the midpoint versus fiscal 2025 (FY25: $961.0M revenue; adjusted EBITDA $123.3M; adjusted net income $102.9M, or 99p per diluted share); for Q1 2026 the company expects revenue of $241–$246M and adjusted EBITDA of $30–$32M, noting that exited/reorganized operations contributed $5.3M to Q1 2025 and $23M to FY25 and are excluded from guidance — year-end liquidity was $67.5M (cash $17.5M plus $50M revolver availability), total debt, net, was $84.0M, and management expects to continue dividends and share repurchases (remaining repurchase authorization $37.5M) while prioritizing debt reduction.OneSpaWorld Holdings Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 961.00M | 895.02M | 794.04M | 546.26M | 144.03M |
| Gross Profit | 105.55M | 149.46M | 127.04M | 83.57M | 8.45M |
| EBITDA | 106.62M | 111.18M | 38.94M | 91.89M | -32.14M |
| Net Income | 71.62M | 72.86M | -2.97M | 53.16M | -68.52M |
Balance Sheet | |||||
| Total Assets | 707.10M | 746.42M | 706.14M | 717.43M | 688.87M |
| Cash, Cash Equivalents and Short-Term Investments | 16.31M | 57.44M | 27.70M | 32.06M | 30.94M |
| Total Debt | 102.77M | 112.74M | 170.63M | 227.13M | 230.46M |
| Total Liabilities | 164.52M | 191.93M | 272.07M | 351.63M | 394.96M |
| Stockholders Equity | 542.58M | 554.50M | 434.07M | 365.81M | 293.90M |
Cash Flow | |||||
| Free Cash Flow | 68.45M | 72.06M | 57.96M | 19.94M | -37.97M |
| Operating Cash Flow | 83.52M | 78.80M | 63.38M | 24.76M | -35.10M |
| Investing Cash Flow | -16.72M | -6.74M | -5.42M | -4.83M | -2.87M |
| Financing Cash Flow | -107.92M | -42.21M | -62.66M | -18.72M | 27.47M |
OneSpaWorld Holdings Technical Analysis
Positive
24.37
Price Trends
21.83
Positive
21.19
Positive
21.35
Positive
Market Momentum
0.77
Negative
65.78
Neutral
87.05
Negative
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 24.37 is above the 20-day moving average (MA) of 22.63, above the 50-day MA of 21.83, and above the 200-day MA of 21.35, indicating a bullish trend. The MACD of 0.77 indicates Negative momentum. The RSI at 65.78 is Neutral, neither overbought nor oversold. The STOCH value of 87.05 is Negative, 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $2.47B | 29.88 | 13.18% | 0.79% | 7.27% | 45.12% | |
65 Neutral | $6.20B | 15.51 | 12.76% | ― | 15.77% | 86.16% | |
62 Neutral | $5.59B | 41.35 | -82.94% | ― | 14.39% | 31.64% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $1.82B | 11.77 | -41.63% | ― | -3.27% | -17.93% | |
53 Neutral | $1.97B | -16.60 | 12.90% | ― | -8.74% | 74.66% | |
47 Neutral | $372.21M | -2.45 | ― | ― | -3.55% | -111.90% |
* Consumer Cyclical Sector Average
OSW
OneSpaWorld Holdings
24.37
7.31
42.87%
PRKS
United Parks & Resorts
37.33
-5.35
-12.54%
PLNT
Planet Fitness
70.40
-27.19
-27.86%
PTON
Peloton Interactive
4.62
-1.08
-18.95%
XPOF
Xponential Fitness
7.60
0.13
1.74%
LTH
Life Time Group Holdings
27.95
-3.90
-12.24%
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.