On this page of StockholderLetter.com we present the latest annual shareholder letter from ONESPAWORLD HOLDINGS Ltd — ticker symbol OSW. Reading current and past OSW letters to shareholders can bring important insights into the investment thesis.
O N E S PAWO R LD AN N UAL R E P O RT 2 0 2 5

Wellness is rediscovered through the power of restoration.
Dear Fellow Shareholders, Thank you for trusting our company and our extraordinary people to be stewards of the capital and support you have invested in OneSpaWorld. Fiscal 2025 marked our fourth consecutive record year for Total Revenues and Adjusted EBITDA, with 19 consecutive quarter-over-quarter increases, driven by strong performance across virtually all of our operating and nancial metrics. For the year, Total Revenues of $961.0 million and Adjusted EBITDA of $123.3 million increased 7% and 10%, respectively, over our prior 2024 records. Our strong performance is a testament to the power of our complex global operations; the expertise and commitment of our team; our market leading capabilities operating health and wellness centers at sea and on land; the depth of our cruise line and destination resorts partnerships; our innovation mindset across our business; and our highly capital e cient asset light business model that enables us to make accretive investments across our business and return meaningful capital to you. Notably, our strong performance gave rise to appreciation in our market capitalization, culminating in our selection to be included in the S&P SmallCap 600 Index earlier this year. Thank you indeed for your continuing long-term support; I am grateful for the trust and con dence you place in us. I would also like to acknowledge and thank our outstanding sta worldwide whose expertise and dedication drives our ongoing success. Our leadership team understands the responsibilities we have to assure outstanding opportunities and experiences for our people to thrive. It is a privilege to serve alongside and guide such talented and committed individuals and teammates. I am deeply grateful for their invaluable contributions to OneSpaWorld and the trust they place in us with their careers and their families well-being. Additionally, I want to extend my appreciation to our cruise line and destination resort partners for their con dence in us to create remarkable value for their customers, their teams, and their shareholders. And to our supplier partners, whose products and services enable our strong performance for all of our stakeholders. During the year, we capitalized on our unique strengths to elevate our preeminent positioning by leveraging our operating strategies to innovate our premier guest o erings and experiences; enhance sales productivity and health and wellness center operating e ciencies; increase facilities, services and sta ng utilization; and seamlessly commence operations on eight new ships. Key 2025 accomplishments included introducing highmargin guest service and product o erings; enhancing experienced sta retention; implementing breakthrough technology applications across our business; and further cementing our cruise line and resort partnerships, evidenced by advances in our highly e ective pre-cruise booking integrations. As a result, we have begun 2026 with strong momentum, leveraging our ever-building competitive positioning to maximize our powerful standing as the preeminent operator of health and wellness centers at sea and on land. The key strategic priorities that drove our record performance and shareholder value included: Shareholder returns and capital allocation. We continue to execute a balanced capital allocation strategy, including quarterly cash dividends and repurchases of outstanding common shares, leveraging our robust free cash flow generation and strong capitalization. We returned nearly $93 million to you in 2025 through dividends and share repurchases, including a 25% increase in our quarterly dividend midyear, while strengthening our capitalization and investing in our business to drive sustained growth and increasing shareholder returns. New ship growth with current cruise line partners. We continued to build on our market leadership throughout 2025, introducing eight new health and wellness centers onboard new ship builds for Royal Caribbean Cruises, Norwegian Cruise Line, Oceania Cruise Line, Princess Cruises, Celebrity Cruises, Windstar Cruises, Disney Cruise Line, and Virgin Voyages. Our fleet expansion further cements our competitive positioning as the preeminent operator of health and wellness centers at sea for premier cruise line brands. At year-end, we operated health and wellness centers on 206 ships with 4,582 highly trained sta providing extraordinary guest experiences, compared with 199 ships and 4,352 sta at year-end 2024. We expect to further strengthen our market leadership as we initiate health and wellness center operations on at least six new ship builds in 2026, three of which are expected to commence voyages in the rst half of the year. Expanding higher-value services, products and experiences. We delivered continuous innovation in our o ering of guest services, products and experiences, which drove meaningful sales productivity and pro tability gains during the year. These higher-value services, including advanced Medi-Spa and Acupuncture treatments, increase our addressable market and help to grow same ship revenue performance. At year-end, Medi-Spa services were available on 153 ships, up from 147 ships at the end of scal 2024. We expect to have Medi-Spa o erings on 157 ships by year-end 2026.
Enhancing health and wellness center productivity. Our productivity-focused strategies drove signi cant increases across key operating metrics, including revenue per passenger per day, weekly revenue, precruise revenue and revenue per sta per day. Our unique ability to identify, educate and train, onboard and retain outstanding professional sta drives this increasingly strong performance, leading to a four percentage-point increase in sta retention versus 2024. Experienced sta generate signi cantly higher revenue per day compared with rst contract sta , contributing directly to our enhanced productivity and pro tability. Leveraging AI and emerging technologies to drive growth and e ciency. We have accelerated the integration of AI-driven technologies into our health and wellness center operations, intended to drive incremental revenue, cash flow and earnings growth. Strengthening and optimizing our nancial position and capitalization. We leveraged our strong cash flow generation during 2025 to further strengthen our balance sheet, reducing outstanding debt by $15 million, ending the year with total debt of $84.0 million, net of deferred nancing costs, less than 0.7 times our Adjusted EBITDA. And we closed the year with total cash of $17.5 million and full availability of our $50 million revolving loan facility, for total liquidity of $67.5 million. We will continue to build and leverage the increasing strength of our nancial position and deploy our capital allocation strategy toward high return opportunities across our business and maximizing total returns for our shareholders. Strategic operational focus. At year-end, we implemented strategic actions to focus operational and capital investment on our highest growth and most pro table operations, exiting land-based health and wellness centers in Asia and reorganizing operations in the United Kingdom and Italy. These initiatives, combined with our AI implementations and innovation across our global operating platform, have us poised to achieve accelerated growth and enhanced operating e ciencies in 2026 and beyond. Commitment to sustainability and social responsibility. We published our second annual Sustainability and Social Responsibility Report, highlighting our continued commitment to responsible business practices and transparency in environmental, social and governance (ESG) matters across our global operations. With a footprint spanning oceans and continents, our scale brings opportunity together with the responsibility to act as stewards for our people and our planet. Our approach to ESG imperatives extends from that purpose, grounded in our core practices: investing in our people, prioritizing safety and sustainability, and strengthening our long-standing partnerships around the world. The Year Ahead We remain con dent in our ability to continue our strong performance throughout 2026 and beyond. We expect to achieve new milestones including surpassing $1 billion in annual Total Revenues for the rst time. Our positive outlook is supported by the continued innovation in our o erings of guest services, products and experiences and the unwavering commitment to service excellence by our outstanding sta . We are con dent in our ability to continue delivering strong results and returns for our shareholders by leveraging our operating levers to drive highly visible Total Revenues and Adjusted EBITDA growth; increasing consumer demand for high quality health and wellness and cruise experiences, which are ideal tailwinds for what we do; our uniquely powerful global operating infrastructure; and the continued discipline with which we execute our asset-light business model. All told, we see another high-single digit growth year in scal 2026, which is reflected in our guidance for Total Revenues in the range of $1.01 billion to $1.03 billion and Adjusted EBITDA in the range of $128 million to $138 million. In closing, I want to extend my heartfelt appreciation to our exceptional team members worldwide, whose unwavering commitment and outstanding performance consistently elevates our standards of excellence. To our cruise line and destination resort partners for trusting us to create extraordinary experiences for their guests and value for their brands. And to you, our shareholders, who choose to invest in our company among your many competing alternatives, for giving us the opportunity to deliver outstanding returns on your investment of trust and capital in our company. Looking forward, my excitement and enthusiasm for what is to come has never been stronger. Respectfully, Leonard Fluxman Executive Chairman and Chief Executive O cer
 • shareholder letter icon 4/27/2026 Letter Continued (Full PDF)
 • stockholder letter icon 4/28/2023 OSW Stockholder Letter
 • stockholder letter icon 4/25/2024 OSW Stockholder Letter
 • stockholder letter icon 4/24/2025 OSW Stockholder Letter
 • stockholder letter icon More "Sporting Goods & Activities" Category Stockholder Letters
 • Benford's Law Stocks icon OSW Benford's Law Stock Score = 33


OSW Shareholder/Stockholder Letter Transcript:

O N E S PAWO R LD AN N UAL R E P O RT 2 0 2 5


Wellness is rediscovered
through the power of restoration.

Dear Fellow Shareholders,
Thank you for trusting our company and our
extraordinary people to be stewards of the capital and
support you have invested in OneSpaWorld. Fiscal 2025
marked our fourth consecutive record year for Total
Revenues and Adjusted EBITDA, with 19 consecutive
quarter-over-quarter increases, driven by strong
performance across virtually all of our operating and
   nancial metrics. For the year, Total Revenues of $961.0
million and Adjusted EBITDA of $123.3 million increased
7% and 10%, respectively, over our prior 2024 records.
Our strong performance is a testament to the power
of our complex global operations; the expertise and
commitment of our team; our market leading capabilities
operating health and wellness centers at sea and on
land; the depth of our cruise line and destination resorts
partnerships; our innovation mindset across our
business; and our highly capital e   cient asset light
business model that enables us to make accretive
investments across our business and return meaningful
capital to you.
Notably, our strong performance gave rise to
appreciation in our market capitalization, culminating in
our selection to be included in the S&P SmallCap 600  
Index earlier this year. Thank you indeed for your
continuing long-term support; I am grateful for the trust
and con   dence you place in us.
I would also like to acknowledge and thank our
outstanding sta    worldwide whose expertise and
dedication drives our ongoing success. Our leadership
team understands the responsibilities we have to assure
outstanding opportunities and experiences for our
people to thrive. It is a privilege to serve alongside and
guide such talented and committed individuals and
teammates. I am deeply grateful for their invaluable
contributions to OneSpaWorld and the trust they place
in us with their careers and their families    well-being.
Additionally, I want to extend my appreciation to our
cruise line and destination resort partners for their
con   dence in us to create remarkable value for their
customers, their teams, and their shareholders. And to
our supplier partners, whose products and services
enable our strong performance for all of our
stakeholders.
During the year, we capitalized on our unique strengths
to elevate our preeminent positioning by leveraging
our operating strategies to innovate our premier guest
o   erings and experiences; enhance sales productivity
and health and wellness center operating e   ciencies;
increase facilities, services and sta   ng utilization; and
seamlessly commence operations on eight new ships.
Key 2025 accomplishments included introducing highmargin guest service and product o   erings; enhancing
experienced sta    retention; implementing breakthrough
technology applications across our business; and
further cementing our cruise line and resort
partnerships, evidenced by advances in our highly
e   ective pre-cruise booking integrations.
As a result, we have begun 2026 with strong momentum,
leveraging our ever-building competitive positioning to
maximize our powerful standing as the preeminent
operator of health and wellness centers at sea and on
land.
The key strategic priorities that drove our record
performance and shareholder value included:
Shareholder returns and capital allocation.
We
continue to execute a balanced capital allocation
strategy, including quarterly cash dividends and
repurchases of outstanding common shares, leveraging
our robust free cash flow generation and strong
capitalization. We returned nearly $93 million to you in
2025 through dividends and share repurchases,
including a 25% increase in our quarterly dividend midyear, while strengthening our capitalization and
investing in our business to drive sustained growth and
increasing shareholder returns.
New ship growth with current cruise line partners. We
continued to build on our market leadership throughout
2025, introducing eight new health and wellness centers
onboard new ship builds for Royal Caribbean Cruises,
Norwegian Cruise Line, Oceania Cruise Line, Princess
Cruises, Celebrity Cruises, Windstar Cruises, Disney
Cruise Line, and Virgin Voyages. Our fleet expansion
further cements our competitive positioning as the
preeminent operator of health and wellness centers at
sea for premier cruise line brands. At year-end, we
operated health and wellness centers on 206 ships with
4,582 highly trained sta    providing extraordinary guest
experiences, compared with 199 ships and 4,352 sta    at
year-end 2024. We expect to further strengthen our
market leadership as we initiate health and wellness
center operations on at least six new ship builds in 2026,
three of which are expected to commence voyages in
the    rst half of the year.
Expanding higher-value services, products and
experiences. We delivered continuous innovation in
our o   ering of guest services, products and experiences,
which drove meaningful sales productivity and
pro   tability gains during the year. These higher-value
services,
including
advanced
Medi-Spa
and
Acupuncture treatments, increase our addressable
market and help to grow same ship revenue
performance. At year-end, Medi-Spa services were
available on 153 ships, up from 147 ships at the end of
   scal 2024. We expect to have Medi-Spa o   erings on
157 ships by year-end 2026.

Enhancing health and wellness center productivity.
Our productivity-focused strategies drove signi   cant
increases across key operating metrics, including
revenue per passenger per day, weekly revenue, precruise revenue and revenue per sta    per day. Our
unique ability to identify, educate and train, onboard
and retain outstanding professional sta    drives this
increasingly strong performance, leading to a four
percentage-point increase in sta    retention versus
2024. Experienced sta    generate signi   cantly higher
revenue per day compared with    rst contract sta   ,
contributing directly to our enhanced productivity and
pro   tability.
Leveraging AI and emerging technologies to drive
growth and e   ciency. We have accelerated the
integration of AI-driven technologies into our health
and wellness center operations, intended to drive
incremental revenue, cash flow and earnings growth.
Strengthening and optimizing our    nancial position
and capitalization. We leveraged our strong cash flow
generation during 2025 to further strengthen our
balance sheet, reducing outstanding debt by $15
million, ending the year with total debt of $84.0 million,
net of deferred    nancing costs, less than 0.7 times our
Adjusted EBITDA. And we closed the year with total
cash of $17.5 million and full availability of our $50
million revolving loan facility, for total liquidity of $67.5
million. We will continue to build and leverage the
increasing strength of our    nancial position and deploy
our capital allocation strategy toward high return
opportunities across our business and maximizing total
returns for our shareholders.
Strategic operational focus. At year-end, we
implemented strategic actions to focus operational and
capital investment on our highest growth and most
pro   table operations, exiting land-based health and
wellness centers in Asia and reorganizing operations in
the United Kingdom and Italy.
These initiatives,
combined with our AI implementations and innovation
across our global operating platform, have us poised to
achieve accelerated growth and enhanced operating
e   ciencies in 2026 and beyond.
Commitment to sustainability and social responsibility.
We published our second annual Sustainability and
Social Responsibility Report, highlighting our continued
commitment to responsible business practices and
transparency in environmental, social and governance
(ESG) matters across our global operations. With a
footprint spanning oceans and continents, our scale
brings opportunity together with the responsibility to
act as stewards for our people and our planet. Our
approach to ESG imperatives extends from that
purpose, grounded in our core practices: investing in
our people, prioritizing safety and sustainability, and
strengthening our long-standing partnerships around
the world.
The Year Ahead
We remain con   dent in our ability to continue our
strong performance throughout 2026 and beyond. We
expect to achieve new milestones     including surpassing
$1 billion in annual Total Revenues for the    rst time. Our
positive outlook is supported by the continued
innovation in our o   erings of guest services, products
and experiences and the unwavering commitment to
service excellence by our outstanding sta   .
We are con   dent in our ability to continue delivering
strong results and returns for our shareholders by
leveraging our operating levers to drive highly visible
Total Revenues and Adjusted EBITDA growth; increasing
consumer demand for high quality health and wellness
and cruise experiences, which are ideal tailwinds for
what we do; our uniquely powerful global operating
infrastructure; and the continued discipline with which
we execute our asset-light business model.
All told, we see another high-single digit growth year in
   scal 2026, which is reflected in our guidance for Total
Revenues in the range of $1.01 billion to $1.03 billion and
Adjusted EBITDA in the range of $128 million to $138
million.
In closing, I want to extend my heartfelt appreciation to
our exceptional team members worldwide, whose
unwavering commitment and outstanding performance
consistently elevates our standards of excellence. To
our cruise line and destination resort partners for
trusting us to create extraordinary experiences for their
guests and value for their brands. And to you, our
shareholders, who choose to invest in our company
among your many competing alternatives, for giving us
the opportunity to deliver outstanding returns on your
investment of trust and capital in our company. Looking
forward, my excitement and enthusiasm for what is to
come has never been stronger.
Respectfully,
Leonard Fluxman
Executive Chairman and Chief Executive O   cer


shareholder letter icon 4/27/2026 Letter Continued (Full PDF)
 

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