OneSpaWorld — Third Quarter Fiscal 2026 Earnings Summary

Financial Performance:

• Total revenues for the third quarter ended September 30, 2026, reached a record $276.5 million, a 7% increase year-over-year (YoY) from $258.5 million in Q3 2025.
• Net income for Q3 2026 was $28.2 million, a 16% increase YoY from $24.3 million; net income per diluted share was $0.28 compared to $0.23 in Q3 2025.
• Adjusted EBITDA for Q3 2026 was $39.2 million, a 12% increase YoY from $35.0 million.
• Income from operations for Q3 2026 was $30.0 million, a 14% increase YoY from $26.3 million.
• Year-to-date (nine months ended September 30, 2026) total revenues were $785.4 million, up 9% YoY from $718.9 million.
• Year-to-date net income was $72.8 million, up 22% YoY from $59.6 million; net income per diluted share was $0.71 compared to $0.57.
• Year-to-date Adjusted EBITDA was $105.8 million, up 15% YoY from $92.0 million.
• Service revenues increased 9% YoY to $226.4 million in Q3 2026; Product revenues decreased 1% YoY to $50.2 million.
• Cost of services increased $12.2 million YoY to $184.3 million in Q3 2026, driven by increased service revenues.
• Administrative expenses increased 52% YoY to $7.0 million in Q3 2026, primarily due to $2.1 million in third-party fees for management and logistics services following UK and Italy reorganization.
• Salaries, benefits, and payroll taxes increased 4% YoY to $8.7 million in Q3 2026.
• Interest expense, net, decreased 15% YoY to $1.2 million in Q3 2026, primarily due to lower debt balances.
• Cash totaled $32.1 million at September 30, 2026; total liquidity was $80.9 million.
• Total debt, net of deferred financing costs, was $70.5 million at September 30, 2026.

Guidance and Future Outlook:

• Fiscal 2026 total revenue guidance was raised to $1.033 billion to $1.038 billion, compared to previous guidance of $1.018 billion to $1.038 billion.
• Fiscal 2026 Adjusted EBITDA guidance was raised to $138.0 million to $140.0 million, compared to previous guidance of $130.0 million to $140.0 million.
• Management expects fiscal 2026 total revenues to increase 10% and Adjusted EBITDA to increase 13% at the midpoints of the guidance ranges compared to fiscal 2025 results (excluding exited and reorganized operations).
• Q4 2026 total revenue guidance is $248 million to $253 million.
• Q4 2026 Adjusted EBITDA guidance is $32 million to $34 million.
• Management expects the fourth consecutive year of record results in fiscal 2026.
• Forecasted average ship count for Q4 2026 is 202; forecasted average resort count is 14.
• Forecasted average ship count for full fiscal 2026 is 203; forecasted average resort count is 27.

Business Segments and Product Lines:

• Maritime pre-booking revenue, average guest spend, service frequency, and guest penetration all increased in Q3 2026.
• Maritime total revenues grew, partially offset by a $1.4 million decrease in destination resort total revenues due to hotel closures.
• Product revenues decreased $1.3 million YoY in Q3 2026, driven by the reorganization of operations in the United Kingdom and Italy.
• The Company entered into new agreements with Azamara Cruises and Silversea Cruises to extend long-term partnerships and enhance spa facilities.
• The Company ended Q3 2026 with health and wellness centers on 207 ships (average 206), compared to 204 ships (average 199) in Q3 2025.
• The Company ended Q3 2026 with 23 destination resort health and wellness centers (average 23), compared to 49 (average 50) in Q3 2025; the reduction reflects the exit of the Asia resorts business, which was completed subsequent to quarter-end.
• Staff count on cruise ships was 4,645 at the end of Q3 2026, up from 4,466 in Q3 2025.
• The Company implemented and integrated AI technology to drive operational efficiencies and profitable growth.

Market and Competitive Landscape:

• OneSpaWorld holds the leading market position within the cruise industry segment of the international leisure market.
• The Company has operated for over six decades, leveraging exceptional service, global recruitment, training, and logistics platforms.
• Growth drivers included fleet expansion from 2026 vessel newbuilds and higher volumes driven by a 1.8% increase in revenue days (net of fleet expansion) and increased guest count in Q3 2026.

Risks and Challenges:

• The press release notes that actual results may differ from forward-looking statements due to risks including economic factors, changes in consumer preferences, regulatory changes, competition, and the loss of major customers.
• The reorganization of operations in the United Kingdom and Italy resulted in increased administrative expenses and decreased product revenues.
• The exit of the Asia resorts business impacted destination resort revenue and counts.

Management Commentary and Tone:

• Executive Chairman Leonard Fluxman described the performance as "excellent," noting the 22nd consecutive record quarter of YoY growth in Total revenues and Adjusted EBITDA.
• Fluxman highlighted the durability of the business model and the power of asset-light operations to generate strong free cash flow.
• CFO Stephen Lazarus noted broad-based gains across key operating metrics and the successful integration of AI technology.
• Management expressed confidence in the focused execution of strategy to achieve a fourth consecutive year of record results in fiscal 2026.

Other Key Points:

• The Board approved a new $100 million share repurchase program on October 20, 2026.
• The Board approved a 25% increase in the quarterly dividend to $0.0625 per share, payable December 2, 2026, to shareholders of record as of November 18, 2026.
• In Q3 2026, the Company returned $42.3 million to shareholders, including $37.2 million for the repurchase of approximately 1.4 million shares and $5.1 million in dividends.
• Since initiating the share repurchase program in April 2025, the Company has repurchased approximately 3.2 million common shares, completing the $75 million authorized under the 2025 program.
• The Company repaid $11.3 million of its Term Loan Facility in Q3 2026.
• Year-to-date, the Company repurchased $37.5 million of common shares, paid $15.2 million in dividends, and repaid $13.8 million of debt.
• Q3 2025 results included $0.9 million from the Asia resorts business in the process of being exited; Q3 2026 results exclude this business.
• Fiscal 2025 results included $5.7 million (Q3) and $23.0 million (YTD) related to the UK/Italy reorganization and Asia exit, which are excluded from the fiscal 2026 guidance comparison.