OneSpaWorld (OSW) investor relations material

Executive summary

• Achieved record first quarter results with total revenues of $247.6 million, net income of $21.3 million, and adjusted EBITDA of $32.2 million, marking the 20th consecutive quarter of record revenues and adjusted EBITDA.

• Strong operational momentum driven by innovation, disciplined execution, and expansion of health and wellness centers, including six new ship builds planned for 2026.

• Continued integration of AI-driven technologies to enhance revenue, cash flow, and earnings growth.

• Maintained strong staff retention and productivity, with a 5 percentage point improvement in retention year-over-year.

• Operates on 208 ships and 36 resorts as of Q1 2026, maintaining over 90% market share in outsourced spa services at sea.

Financial highlights

• Total revenues increased 13% year-over-year to $247.6 million in Q1 2026, with service revenues up 14% to $203.7 million and product revenues up 7% to $44.0 million.

• Net income rose 40% to $21.3 million, or $0.21 per diluted share; adjusted EBITDA grew 21% to $32.2 million; adjusted net income was $28 million, or $0.27 per diluted share.

• Income from operations increased 36% to $22.9 million, aided by the non-recurrence of $2.5 million in severance expense from Q1 2025.

• Robust free cash flow supported shareholder returns and debt reduction, with $5.1 million in dividends paid and $1.3 million in debt repaid in Q1.

• Cash at quarter-end was $17.3 million, with total liquidity of $67.3 million including a fully undrawn $50 million credit facility.

Outlook and guidance

• Q2 2026 guidance: total revenues of $257–$262 million and adjusted EBITDA of $32.5–$34.5 million, representing 10% growth at the midpoint.

• FY 2026 guidance: total revenues of $1.014–$1.034 billion and adjusted EBITDA of $129–$139 million, both up 9% at midpoint and slightly raised from previous guidance.

• Guidance incorporates potential softness in European demand due to geopolitical factors.

• Management expects sufficient liquidity and compliance with debt covenants for the next twelve months and beyond.

• Six new ship builds scheduled for 2026, supporting continued growth.