OnespaWorld projects $1.014B-$1.034B 2026 revenue as it targets 10% Q2 growth and expands AI tools to 190+ vessels

Earnings Call Insights: OneSpaWorld (OSW) Q1 2026

MANAGEMENT VIEW

* "We began the year with continued strong momentum in the first quarter, reporting better-than-expected top and bottom line results" (CEO & Executive Chairman Leonard Fluxman).
* "As outlined in our earnings release, based on our first quarter performance and favorable momentum, we currently expect to deliver 10% growth in total revenues and adjusted EBITDA for the second quarter at the midpoint of our guidance ranges, excluding the results of exited and reorganized operations" (CEO & Executive Chairman Fluxman).
* "During the quarter, we introduced health and wellness centers on two new ship builds, Norwegian Cruise Line's Luna and Disney Adventure, which launched their maiden voyages in March" (CEO & Executive Chairman Fluxman).
* "At quarter end, medi-spa services were available on 155 ships, up from 148 ships at the end of the first quarter of 2025" (CEO & Executive Chairman Fluxman).
* "During the quarter, we accelerated the rollout of Niagen Plus NAD boosting intravenous solution across all 90-plus ships offering IV services following strong initial pilot results" (CEO & Executive Chairman Fluxman).
* "We continue to refine our machine learning algorithmic engine to improve revenue and utilization, which is progressing well and is now available on 190 vessels" (President, COO & CFO Stephen Lazarus).
* "This maritime agent is autonomously resolving 94% of tickets with response times in seconds and has now been deployed on 191 vessels" (President, COO & CFO Lazarus).

OUTLOOK

* "For the second quarter of 2026, we are introducing guidance for total revenue in the range of $257 million to $262 million and adjusted EBITDA in the range of $32.5 million to $34.5 million" (President, COO & CFO Lazarus).
* "For the full year 2026, we now expect total revenue in the range of $1.014 billion to $1.034 billion and adjusted EBITDA in the range of $129 million to $139 million" (President, COO & CFO Lazarus).
* "This guidance reflects our confidence in our ability to deliver sustained momentum and the visibility of our growth pipeline while acknowledging the dynamic environment we find ourselves in" (President, COO & CFO Lazarus).
* "Please keep in mind that fiscal 2025 reported total revenues includes $23 million associated with the reorganization of operations in the United Kingdom and Italy, and the exit of land-based operations in Asia, all previously announced" (President, COO & CFO Lazarus).

FINANCIAL RESULTS

* "Total revenues increased 13% to $247.6 million" (CEO & Executive Chairman Fluxman).
* "Net income was $21.3 million or net income per diluted share of $0.21" (President, COO & CFO Lazarus).
* "Adjusted net income was $28 million or adjusted net income per diluted share of $0.27" (President, COO & CFO Lazarus).
* "Total cash" was "$17.3 million" and "we had full availability of our $50 million revolving line facility, giving us total liquidity of $67.3 million" (President, COO & CFO Lazarus).
* "Administrative expenses were $6.2 million compared to $4.2 million in the first quarter of 2025" and Lazarus said the increase was "primarily due to $1.9 million in third-party fees for certain management and logistics services as a result of our previously announced restructuring" (President, COO & CFO Lazarus).
* "Salary, benefit and payroll taxes were $8.4 million compared to $11 million in the first quarter of 2025" and Lazarus attributed the decrease "primarily" to "the nonrecurrence of $2.5 million in separation-related expenses" tied to "the termination of the company's former Chief Commercial Officer" (President, COO & CFO Lazarus).

Q&A

* Randal Konik, Jefferies LLC, Research Division: asked about "the rise in higher-value services" and how penetration has changed; CEO & Executive Chairman Fluxman responded, "We continue to innovate and stack new services into medi-spa services" and said offerings like "truFlex" and "the NAD IVs that we've introduced" are "helping to produce better spend" and "we continue to roll out as fast as we can" (CEO & Executive Chairman Fluxman).
* Konik, Jefferies LLC, Research Division: asked about a resort-spas leadership addition and plans; CEO & Executive Chairman Fluxman said, "we added a new person in resorts to drive business development and strategy" and added, "we've seen a potential pipeline that she's working on" with focus on "new opportunities within the U.S. and Caribbean, not the Asian market, which we're winding down" (CEO & Executive Chairman Fluxman).
* Steven Wieczynski, Stifel, Nicolaus & Company, Incorporated, Research Division: asked what is driving "revenue per staff per day" and upside; CEO & Executive Chairman Fluxman pointed to "newer ships" with "incredible spas, medi-spa facilities, thermal suites" and said, "it's a healthy increase, 6% productivity increase" (CEO & Executive Chairman Fluxman).
* Wieczynski, Stifel, Nicolaus & Company, Incorporated, Research Division: asked about potential Europe softness and cancellations; CEO & Executive Chairman Fluxman said, "we're certainly cognizant of the geopolitical backdrop" and "we've thought about this and included it as part of the guidance in the back half" while Lazarus added, "generally, we're servicing about 11% of the guests on board" which provides "a layer of insulation" (CEO & Executive Chairman Fluxman; President, COO & CFO Lazarus).
* Maksim Rakhlenko, TD Cowen, Research Division: asked what drove improving prebooking and how AI ties in; CEO & Executive Chairman Fluxman said, "prebooking services... were up 17%" and Lazarus clarified, "the AI initiative specifically as it relates to dynamic pricing on prebooking is not yet in play" (CEO & Executive Chairman Fluxman; President, COO & CFO Lazarus).
* Rakhlenko, TD Cowen, Research Division: asked about longevity/wellness and post-cruise continuation; CEO & Executive Chairman Fluxman said, "We remain very focused on the longevity and health and wellness vertical" and added, "It does not mean we need to do M&A to do that" and "We can do it through a joint venture or a partnership" (CEO & Executive Chairman Fluxman).
* Gregory Miller, Truist Securities, Inc., Research Division: asked about Caribbean concentration; CEO & Executive Chairman Fluxman said, "We love Caribbean performance" and "North American passengers, definitely the best spenders" (CEO & Executive Chairman Fluxman).
* Miller, Truist Securities, Inc., Research Division: asked about earnings differences across European itineraries; CEO & Executive Chairman Fluxman said, "The short answer is there's no difference to us" (CEO & Executive Chairman Fluxman).
* Assia Georgieva, Infinity Research: asked about sustaining prebooking growth and Europe pricing actions; CEO & Executive Chairman Fluxman said, "yes, it's definitely the strategy" on prebooking and on Europe said, "we're monitoring it very closely" and "thus far, we've seen no impact" (CEO & Executive Chairman Fluxman).

SENTIMENT ANALYSIS

* Analysts sounded slightly negative to neutral, pressing on demand risk and price/mix in Europe, including "some softness" and "a slight uptick in cancellations" (Steven Wieczynski, Stifel, Nicolaus & Company, Incorporated, Research Division) and "a significant price cut" concern in Europe (Assia Georgieva, Infinity Research).
* Management tone was slightly positive and defensive on macro, emphasizing insulation and monitoring, including "we've thought about this and included it as part of the guidance" and "we're monitoring it very closely" (CEO & Executive Chairman Fluxman) and "we're servicing about 11% of the guests on board" (President, COO & CFO Lazarus).
* Versus the prior quarter’s more implementation-focused AI discussion, management in Q1 used more risk-acknowledging language on demand, including "cognizant of the geopolitical backdrop" and "dynamic environment" (CEO & Executive Chairman Fluxman; President, COO & CFO Lazarus).

QUARTER-OVER-QUARTER COMPARISON

* Guidance framing shifted from Q4’s "reaffirming" 2026 outlook to Q1’s "we now expect" updated full-year ranges and "introducing guidance" for Q2 (President, COO & CFO Lazarus).
* AI commentary moved from rollout milestones in Q4 ("deployed across 180 vessels") to expanded penetration and operational metrics in Q1 ("available on 190 vessels" and "deployed on 191 vessels" with "94% of tickets") (President, COO & CFO Lazarus).
* Analyst focus broadened from Q4 questions about AI benefits and consumer/discounting to Q1 questions centered on Europe demand/cancellations, prebooking mix, and high-value services penetration (multiple analysts as cited in Q&A).

RISKS AND CONCERNS

* "We're certainly cognizant of the geopolitical backdrop" and management referenced potential cancellations and booking delays affecting Europe demand, while stating, "our guidance includes that" (CEO & Executive Chairman Fluxman).
* On Europe pricing/mix concerns, management said, "we're monitoring it very closely" and "thus far, we've seen no impact" while reiterating, "we focus on the best 11% every single week" (CEO & Executive Chairman Fluxman).

FINAL TAKEAWAY

Management described Q1 as a record start to 2026, highlighted continued expansion of medi-spa and IV offerings alongside new ship openings, and positioned AI-driven revenue and operational tools as scaling across most of the fleet. Leadership introduced Q2 guidance and updated full-year ranges, while acknowledging geopolitical and Europe-demand uncertainty as incorporated into the back-half outlook, and emphasized prebooking growth, productivity initiatives, and continued capital returns supported by liquidity and the remaining share repurchase authorization.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/osw/earnings/transcripts]

MORE ON ONESPAWORLD

* OneSpaWorld Holdings Limited (OSW) Q1 2026 Earnings Call Transcript [https://seekingalpha.com/article/4896134-onespaworld-holdings-limited-osw-q1-2026-earnings-call-transcript]
* OneSpaWorld Holdings Limited (OSW) Q4 2025 Earnings Call Transcript [https://seekingalpha.com/article/4871569-onespaworld-holdings-limited-osw-q4-2025-earnings-call-transcript]
* OneSpaWorld Non-GAAP EPS of $0.27, revenue of $247.6M [https://seekingalpha.com/news/4581398-onespaworld-non-gaap-eps-of-0_27-revenue-of-247_6m]
* OnespaWorld expects 2026 revenues to surpass $1B as AI initiatives and new ship builds drive growth [https://seekingalpha.com/news/4553421-onespaworld-expects-2026-revenues-to-surpass-1b-as-ai-initiatives-and-new-ship-builds-drive]
* Seeking Alpha’s Quant Rating on OneSpaWorld [https://seekingalpha.com/symbol/OSW/ratings/quant-ratings]