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OneSpaWorld Holdings
(NASDAQ:OSW)
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Rating:73Outperform
Price Target:
$29.00
▲(10.31% Upside)
Action:Reiterated
Date:07/31/26
OSW scores well primarily on strong financial performance (notably cash flow strength and improved leverage) and a positive, guidance-raising earnings update with continued operational momentum. The score is tempered by a premium valuation (high P/E with limited dividend support) and only mixed near-term technicals (below the 20-day average despite a constructive longer-term trend).
Positive Factors
Cash generation
Consistent positive operating and free cash flow with OCF exceeding net income indicates durable cash conversion. This supports reinvestment in onboard services, dividend and buyback capacity, and provides a buffer versus cyclical cruise demand drops, improving long-term financial resilience.
Negative Factors
Margin volatility
Marked swings in gross margin show sensitivity to service/retail mix, regional cost changes and operational exits. Persistent margin variability makes earnings and cash-flow predictability harder, raising execution risk for sustaining adjusted EBITDA growth and complicating long-term planning.
Read all positive and negative factors
Positive Factors
Negative Factors
Cash generation
Consistent positive operating and free cash flow with OCF exceeding net income indicates durable cash conversion. This supports reinvestment in onboard services, dividend and buyback capacity, and provides a buffer versus cyclical cruise demand drops, improving long-term financial resilience.
Read all positive factors
OneSpaWorld Holdings Key Performance Indicators (KPIs)
Any
Revenue by Type
Breaks revenue into major types such as services (spa treatments, wellness programs, managed operations) versus product sales (retail skincare, packaged goods), highlighting differences in margin and predictability. The mix matters because services tend to be tied to guest volumes while products can scale differently and offer higher or lower margins.
Breaks revenue into major types such as services (spa treatments, wellness programs, managed operations) versus product sales (retail skincare, packaged goods), highlighting differences in margin and predictability. The mix matters because services tend to be tied to guest volumes while products can scale differently and offer higher or lower margins.
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The Fly
The FlyOneSpaWorld Holdings (OSW) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$2.61B
Dividend Yield0.74%
Average Volume (3M)623.14K
Price to Earnings (P/E)32.2
Beta (1Y)0.99
Revenue Growth9.82%
EPS Growth15.96%
CountryUS
Employees5,395
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)0.80
Shares Outstanding101,498,710
10 Day Avg. Volume582,550
30 Day Avg. Volume623,139
Financial Highlights & Ratios
PEG Ratio-21.04
Price to Book (P/B)3.94
Price to Sales (P/S)2.23
P/FCF Ratio31.27
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$31.50Price Target Upside19.82% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)1.14
Revenue Forecast (FY)$1.03B
OneSpaWorld Holdings Business Overview & Revenue Model
Company Description
OneSpaWorld Holdings Limited operates health and wellness centers onboard cruise ships and at destination resorts in the United States and internationally. It offers massage and body care services and therapies, and aesthetics treatments; medi-spa...
How the Company Makes Money
OSW primarily makes money by operating spas and wellness facilities under agreements with cruise lines (and, in some cases, destination resorts), earning revenue from (1) service fees paid by guests for spa and wellness treatments (e.g., massage, ...
OneSpaWorld Holdings Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive tone: the company reported record revenue and adjusted EBITDA growth, raised full-year guidance, demonstrated strong balance sheet metrics and cash generation, expanded higher-value services and fleet presence, and is seeing encouraging early returns from AI deployments (Amanda, AVA, Serena). Challenges were limited but notable: product revenue deceleration tied to regional reorganizations, higher administrative expenses due to third-party fees, a modest decline in destination resort revenue, and some uncertainty around the timing and magnitude of AI-driven cost/margin improvements and itinerary mix (Europe) sensitivity. Overall, the positive operational momentum and guidance raise outweigh the identified headwinds.Positive Updates
Record Revenues and EBITDA
Total revenues increased 9% year-over-year to $261.2 million (Q2 2026 vs $240.7M Q2 2025). Adjusted EBITDA rose 13% to $34.4 million (vs $30.5M). This marked the company's 21st consecutive quarter of record total revenues and adjusted EBITDA.
Negative Updates
Product Revenue Deceleration and Reorganization Impact
Product revenue decreased, driven in part by a reorganization of operations in the UK and Italy; the reorg accounted for ~$1.0 million of product revenue in Q2 2025 and contributed to a ~$500,000 year-over-year product revenue decline in Q2 2026. The reorganization also caused a shift of costs from salary/benefits to administrative expense.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Revenues and EBITDA
Total revenues increased 9% year-over-year to $261.2 million (Q2 2026 vs $240.7M Q2 2025). Adjusted EBITDA rose 13% to $34.4 million (vs $30.5M). This marked the company's 21st consecutive quarter of record total revenues and adjusted EBITDA.
Read all positive updates
Company Guidance
OneSpaWorld raised full‑year 2026 guidance to total revenue of $1.018 billion–$1.038 billion (midpoint $1.028 billion) and adjusted EBITDA of $130 million–$140 million (midpoint $135 million), which the company says represents roughly 10% growth at the midpoints versus fiscal 2025 (excluding $23 million of exited/reorganized operations) and would be the fourth consecutive record fiscal year; it also introduced Q3 2026 guidance of $268 million–$273 million in total revenue (midpoint $270.5 million) and $35 million–$37 million in adjusted EBITDA (midpoint $36 million), noting management expects double‑digit growth in both total revenue and adjusted EBITDA at the guidance midpoints while acknowledging a dynamic environment.OneSpaWorld Holdings Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.01B | 961.00M | 895.02M | 794.04M | 546.26M | 144.03M |
| Gross Profit | 144.30M | 105.55M | 149.46M | 127.04M | 83.57M | 8.45M |
| EBITDA | 109.58M | 106.62M | 111.18M | 38.94M | 91.89M | -32.14M |
| Net Income | 80.95M | 71.62M | 72.86M | -2.97M | 53.16M | -68.52M |
Balance Sheet | ||||||
| Total Assets | 729.84M | 707.10M | 746.42M | 706.14M | 717.43M | 688.87M |
| Cash, Cash Equivalents and Short-Term Investments | 40.36M | 16.31M | 57.44M | 27.70M | 32.06M | 30.94M |
| Total Debt | 90.85M | 94.36M | 112.74M | 170.63M | 227.13M | 230.46M |
| Total Liabilities | 147.63M | 164.52M | 191.93M | 272.07M | 351.63M | 394.96M |
| Stockholders Equity | 582.20M | 542.58M | 554.50M | 434.07M | 365.81M | 293.90M |
Cash Flow | ||||||
| Free Cash Flow | 78.23M | 68.45M | 72.06M | 57.96M | 19.94M | -37.97M |
| Operating Cash Flow | 95.50M | 83.52M | 78.80M | 63.38M | 24.76M | -35.10M |
| Investing Cash Flow | -17.59M | -16.72M | -6.74M | -5.42M | -4.83M | -2.87M |
| Financing Cash Flow | -72.25M | -107.92M | -42.21M | -62.66M | -18.72M | 27.47M |
OneSpaWorld Holdings Technical Analysis
Positive
26.29
Price Trends
26.07
Positive
24.74
Positive
22.83
Positive
Market Momentum
>-0.01
Positive
51.64
Neutral
38.94
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 26.29 is below the 20-day moving average (MA) of 26.37, above the 50-day MA of 26.07, and above the 200-day MA of 22.83, indicating a bullish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 51.64 is Neutral, neither overbought nor oversold. The STOCH value of 38.94 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $10.08B | 23.99 | 13.14% | ― | 12.69% | 75.05% | |
73 Outperform | $2.61B | 32.20 | 14.68% | 0.72% | 9.82% | 15.96% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $2.77B | 112.50 | -6.18% | ― | -3.26% | ― | |
60 Neutral | $4.44B | 20.18 | -69.35% | ― | 14.41% | 31.33% | |
55 Neutral | $2.10B | 16.65 | -35.46% | ― | -3.55% | -29.18% | |
44 Neutral | $289.91M | -4.72 | 14.36% | ― | -5.80% | 32.11% |
* Consumer Cyclical Sector Average
OSW
OneSpaWorld Holdings
26.60
4.36
19.59%
PRKS
United Parks & Resorts
46.17
-1.30
-2.74%
PLNT
Planet Fitness
55.97
-53.30
-48.78%
PTON
Peloton Interactive
6.61
-0.50
-7.03%
XPOF
Xponential Fitness
6.68
-3.62
-35.15%
LTH
Life Time Group Holdings
44.73
18.90
73.17%
OneSpaWorld Holdings Corporate Events
Executive/Board ChangesShareholder Meetings
OneSpaWorld Shareholders Approve Proposals at 2026 Meeting
Positive
Jun 4, 2026
On June 3, 2026, OneSpaWorld Holdings Limited held its 2026 Annual Meeting of Shareholders, with approximately 96% of eligible common shares represented, reflecting strong shareholder engagement. All director nominees were elected, although direct...
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.