XWELL (XWEL) Q1 2026 earnings summary

Executive summary

• Report covers the quarter ended March 31, 2026, with three operating segments: XpresSpa, XpresTest, and Naples Wax Center.

• Revenue declined 5% year-over-year to $6.6M, mainly due to the cessation of the HyperPointe segment and lower surge billing in XpresTest.

• Net loss attributable to common shareholders was $11.2M, compared to $5.3M in the prior year quarter.

• Significant capital restructuring occurred, including a $28.3M private placement and repurchase of preferred stock, notes, and warrants.

Financial highlights

• Revenue: $6.6M (down from $7.0M year-over-year).

• Gross profit: $2.4M, with gross margin of 36%.

• Operating loss: $5.4M, compared to $3.2M in Q1 2025.

• Net loss: $11.2M, or $(1.51) per share (basic and diluted).

• Cash and cash equivalents: $16.8M as of March 31, 2026, up from $2.6M at year-end.

• Working capital surplus of $11.4M, reversing a prior deficit.

Outlook and guidance

• Management believes current liquidity is sufficient to fund operations for at least the next twelve months.

• Strategic focus remains on cost reduction, working capital optimization, and returning to profitability.