ONESPAWORLD HOLDINGS Ltd
For the period ended Mar 31, 2026. Filed May 1, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2026 · Filed May 1, 2026
OSW$31.13+1.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-09-30; filed 2025-10-30.
0001193125-25-258548
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-01.
0001193125-26-199522
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 105 previous paragraphs and 93 current paragraphs.
49 unchanged; 28 reworded; 14 added; 26 removed; 2 previous and 2 current paragraphs rearranged.
Tables are not compared: 4 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (14)
Current report
Key Financial Definitions
Current report
Interest expense, net. Interest expense, net consists of interest income and interest expense.
Current report
Service revenues. Service revenues for the three months ended March 31, 2026 were $203.7 million, an increase of $25.1 million, or 14%, compared to $178.5 million for the three months ended March 31, 2025.
Current report
Product revenues. Product revenues for the three months ended March 31, 2026 were $44.0 million, an increase of $2.9 million, or 7%, compared to $41.1 million for the three months ended March 31, 2025.
Current report
Administrative. Administrative expenses were $6.2 million, compared to $4.2 million in the first quarter of 2025. The increase was primarily due to $1.9 million in third-party fees for certain management and logistic services as a result of our previously announced restructuring, which were previously performed internally by company staff, and as such, the related costs have shifted from Salaries, benefits and payroll taxes to Administrative.
Current report
Salaries, benefits and payroll taxes. Salaries, benefits and payroll taxes for the three months ended March 31, 2026 were $8.4 million, a decrease of $2.6 million, or (24)%, compared to $11.0 million for the three months ended March 31, 2025. The decrease was primarily attributable to the non-recurrence of $2.5 million in separation-related expenses incurred during the first quarter of 2025 associated with the termination of the Company’s former Chief Commercial Officer. The variance also reflects a reduction in internal personnel costs in the first quarter of 2026 resulting from the transition of certain management and logistics services to third-party providers, as discussed above, partially offset by annual merit increases and higher incentive-based compensation.
Current report
Interest expense, net. Interest expense, net was $1.2 million for the three months ended March 31, 2026, compared to $1.1 million for the three months ended March 31, 2025. The nominal increase was primarily due to a $0.2 million decrease in interest income resulting from lower average interest-bearing cash balances. This was partially offset by a decrease in interest expense driven by a $15.0 million reduction in the principal balance of the Term Loan Facility since March 31, 2025, which included a $10.0 million discretionary prepayment in the third quarter of 2025 and $5.0 million in scheduled principal payments.
Current report
Income tax expense. Income tax expense was $0.4 million for both the three months ended March 31, 2026 and 2025.
Current report
The $15.0 million cash outflows from working capital for the three months ended March 31, 2025, was primarily driven by (i) a $5.1 million net payment of bonuses to employees; (ii) a payment of $7.3 million to a cruise line partner related to accrued fees, and (iii) a $3.4 million increase in inventories, as a result of increased purchases reflecting the growth in revenues and anticipation of increased shipments in the second quarter of 2025.
Current report
Investing activities. Our net cash used in investing activities for the three months ended March 31, 2026 and 2025 were $3.0 million and $1.7 million, respectively. The increase in cash used was driven by continued investments in technology hardware and software, including artificial intelligence, partially offset by $1.3 million in proceeds received from the divestiture of two immaterial subsidiaries previously disclosed in our 2025 Form 10-K.
Current report
the Company’s business, competitive position and operations;
Current report
potential future outbreaks of illnesses impacting the industries in which the Company operates;
Current report
competition for the Company’s services;
Current report
managing growth profitably;
Removed paragraphs (26)
Previous report
Other income (expense). Other income (expense) consists of interest income, interest expense and changes in the fair value of warrant liabilities.
Previous report
(1) Refer to Note 2 to the Condensed Consolidated Financial Statements in this report for details underlying OneSpaWorld’s income diluted share calculation.
Previous report
Service revenues. Service revenues for the three months ended September 30, 2025 were $208.0 million, an increase of $13.6 million, or 7%, compared to $194.4 million for the three months ended September 30, 2024.
Previous report
Product revenues. Product revenues for the three months ended September 30, 2025 were $50.5 million, an increase of $3.2 million, or 7%, compared to $47.3 million for the three months ended September 30, 2024.
Previous report
Cost of services. Cost of services for the three months ended September 30, 2025 were $172.1 million, an increase of $12.5 million, or 8%, compared to $159.6 million for the three months ended September 30, 2024. The increase primarily was attributable to costs associated with increased Service revenues of $208.0 million in the quarter compared with Service revenues of $194.4 million in the third quarter of 2024.
Previous report
Cost of products. Cost of products for the three months ended September 30, 2025 were $42.9 million, an increase of $2.7 million, or 7%, compared to $40.1 million for the three months ended September 30, 2024. The increase primarily was attributable to costs associated with increased Product revenues of $50.5 million in the quarter compared to Product revenues of $47.3 million in the third quarter of 2024.
Previous report
Administrative. Administrative expenses for the three months ended September 30, 2025 were $4.6 million, an increase of $0.3 million, or 8%, compared to $4.2 million for the three months ended September 30, 2024. The increase was primarily attributable to higher costs related to computer maintenance and supplies.
Previous report
Salaries, benefits and payroll taxes. Salaries, benefits and payroll taxes for the three months ended September 30, 2025 were $8.4 million, a decrease of $0.2 million, or (2%), compared to $8.6 million for the three months ended September 30, 2024. The decrease was due primarily to lower than prior year incentive-based compensation expense of approximately $0.1 million.
Previous report
Other expense. Other expense includes interest expense. Interest expense, net for the three months ended September 30, 2025 was $1.4 million, a decrease of $1.1 million, or (45%), compared to $2.5 million for the three months ended September 30, 2024. The decrease was primarily attributable to lower debt balances and lower effective interest rates. Since the year ended December 31, 2023, we have repaid a total of $73.3 million in debt instruments.
Previous report
Income tax expense. Income tax expense for the three months ended September 30, 2025 was an expense of $0.6 million, a decrease of $0.4 million, or (40%), compared to $1.0 million tax expense for the three months ended September 30, 2024. The decrease was primarily attributable to a mix of income earned in lower taxed jurisdictions.
Previous report
(1) Refer to Note 2 to the Condensed Consolidated Financial Statements in this report for details underlying OneSpaWorld’s income diluted share calculation.
Previous report
Comparison of Results for the nine months ended September 30, 2025 compared to nine months ended September 30, 2024
Previous report
Revenues. Total revenues increased 6% to $718.9 million compared to $677.8 million for the nine months ended September 30, 2024, driven by a 4% increase in average guest spend, fleet expansion due to 2025 vessel newbuilds, and a 1% increase in revenue days contributing $22.5 million, $10.6 million and $11.4 million, respectively, of the increase in Total revenues for the period. Contributing to the increased volume and spend was $7.7 million in increased pre-booked revenues at health and wellness centers included in our ship count as of September 30, 2025. Growth in our Maritime Total revenues was offset by a $3.5 million decrease in our destination resorts Total revenues, partially due to the closure of hotels where we had previously operated.
Previous report
Service revenues. Service revenues for the nine months ended September 30, 2025 were $579.9 million, an increase of $32.5 million, or 6%, compared to $547.5 million for the nine months ended September 30, 2024.
Previous report
Product revenues. Product revenues for the nine months ended September 30, 2025 were $139.0 million, an increase of $8.6 million, or 7%, compared to $130.4 million for the nine months ended September 30, 2024.
Previous report
Administrative. Administrative expenses for the nine months ended September 30, 2025 were $13.2 million, a decrease of $0.2 million, or 1%, compared to $13.0 million for the nine months ended September 30, 2024. The change was not material.
Previous report
Salaries, benefits and payroll taxes. Salaries, benefits and payroll taxes for the nine months ended September 30, 2025 were $28.2 million, an increase of $1.9 million, or 7%, compared to $26.3 million for the nine months ended September 30, 2024. The increase was primarily attributable to expenses associated with the termination of employment of the Company’s former Chief Commercial Officer, including $1.1 million of severance expense and $1.4 million of expense related to vesting treatment in respect of restricted stock units and performance stock units.
Previous report
Amortization of intangible assets. Amortization of intangible assets was $12.4 million for each of the nine-month periods ended September 30, 2025 and 2024.
Previous report
Other expense. Other expense includes interest expense and change in the fair value of the warrant liabilities. Interest expense, net for the nine months ended September 30, 2025 was $3.9 million, a decrease of $3.8 million, or (49%), compared to $7.7 million for the nine months ended September 30, 2024. The decrease was primarily attributable to lower debt balances and lower effective interest rates. Since the year ended December 31, 2023, we have repaid a total of $73.3 million in debt instruments. The change in fair value of the outstanding warrants during the nine months ended September 30, 2025 was zero compared to a gain of $7.7 million during the nine months ended September 30, 2024. The Company had no outstanding warrants during the nine months ended September 30, 2025; accordingly, there was no impact on the condensed consolidated statement of operations during this period.
Previous report
Income tax expense. Income tax expense for the nine months ended September 30, 2025 was an expense of $1.8 million, a decrease of $0.6 million, or (24%), compared to $2.4 million tax expense for the nine months ended September 30, 2024. The decrease was primarily attributable to mix of income earned in lower taxed jurisdictions.
Previous report
Net income. Net income for the nine months ended September 30, 2025 was $59.6 million, an increase of $1.1 million, or 2%, compared to a net income of $58.5 million for the nine months ended September 30, 2024. The increase was primarily attributable to a $4.4 million improvement in income from operations and a $3.8 million decrease in interest expense. These favorable impacts were partially offset by the non-recurrence of a $7.7 million gain recognized in the prior-year period related to the change in the fair value of warrant liabilities.
Previous report
Comparison of Results for the nine months ended September 30, 2025 and 2024
Previous report
The $23.1 million cash outflows from working capital for the nine months ended September 30, 2025 was primarily driven by (i) a $16.5 million increase in Inventories, driven by strategic purchases to secure favorable pricing from certain suppliers ahead of their scheduled annual price increase, as well as to support expanded procurement for new health and wellness centers on cruise line partners’ ships launched during 2025; ii) a $3.7 million increase in Other non-current assets primarily reflecting capitalized contract costs paid to enter into new contracts or to renew long-term contracts; iii) a $2.6 million use of cash related to prepaid expenses; and (iv) a $1.7 million increase in accounts receivable due to higher revenues with respect to the prior year period. These outflows were partially offset by a $4.8 million increase in accounts payable, primarily related to the timing of vendor payments. The remaining changes in working capital, including accrued expenses and other current assets, contributed an additional $3.4 million net use of cash.
Previous report
Investing activities. Our net cash used in investing activities for the nine months ended September 30, 2025 and 2024 were $10.0 million and $3.4 million, respectively. During the nine months ended September 30, 2025, we made investments in leasehold improvements for certain health and wellness centers operated in destination resorts, as well as technology hardware and software (including artificial intelligence) and medi-spa equipment, to support strategic expansion and enhance operational capabilities.
Previous report
difficulties of managing growth profitably;
Previous report
changes in the market for the products we offer for sale;
Reworded paragraphs (28)
Previous wording
OneSpaWorld Holdings Limited (“OneSpaWorld,” the “Company,” “we,” “our, “us” and other similar terms refer to OneSpaWorld Holdings Limited and its consolidated subsidiaries) is the pre-eminent global operator of health and wellness centers onboard cruise ships and a leading operator of health and wellness centers in destination resorts worldwide. Our highly trained and experienced staff offer guests a comprehensive suite of premium health, fitness, beauty and wellness services and products onboard cruise ships and at destination resorts globally. We are the market leader at more than 18x the size of our closest maritime competitor. Over the last 50 years, we have built our leading market position on our depth of staff expertise, broad and innovative service and product offerings, expansive global staff recruitment, training and logistics platform, global operations infrastructure, and decades-long relationships with our cruise line and destination resort partners. Throughout our history, our mission has been simple: helping guests look and feel their best during and after their stay.
Current wording
OneSpaWorld Holdings Limited (“OneSpaWorld,” the “Company,” “we,” “our, “us” and other similar terms refer to OneSpaWorld Holdings Limited and its consolidated subsidiaries) is the pre-eminent global operator of health and wellness centers onboard cruise ships and a leading operator of health and wellness centers at destination resorts worldwide. We are positioned as a leader in the hospitality-based health and wellness industry. Our highly trained and experienced staff offer guests a comprehensive suite of premium health, wellness, aesthetics and fitness services and products onboard cruise ships and at destination resorts globally. Over the last 50 years, we have built our leading market position on our depth of staff expertise, broad and innovative service and product offerings, expansive global recruitment, training and logistics platform, as well as decades-long relationships with cruise line and destination resort partners. Throughout our history, our mission has been simple: helping guests look and feel their best during and after their stay.
Previous wording
At our core, we are a global services company. We serve a critical role for our cruise line and destination resort partners, operating a complex and increasingly important aspect of their overall guest experience. Decades of investment and know-how have allowed us to construct an unmatched global infrastructure to manage the complexity of our operations. We have consistently expanded our onboard offerings with innovative and leading-edge service and product introductions, and developed our powerful recruiting, training and logistics platforms to manage our operational complexity, maintain our industry-leading quality standards, and maximize revenue and profitability per health and wellness center. The combination of our renowned recruiting and training platform, deep proprietary labor pool, global logistics and supply chain infrastructure, and proven health and wellness center and revenue management capabilities represents a significant competitive advantage that we believe is not economically feasible to replicate.
Current wording
At our core, we are a global services company. We serve a critical role for our cruise line and destination resort partners, operating a complex and increasingly important aspect of their overall guest experience. Decades of investment and know-how have allowed us to construct an unmatched global infrastructure to manage the complexity of our operations. We have consistently expanded our onboard offerings with innovative and leading-edge service and product introductions, and developed powerful recruiting, training and logistics platforms, increasingly powered by emerging technologies, including generative and agentic artificial intelligence applications, to manage our operational complexity, maintain our industry-leading quality standards, and maximize revenue and profitability per health and wellness center. The combination of our personnel recruiting and training platform, deep proprietary global labor pool, global logistics and supply chain infrastructure, and proven health and wellness center operating, revenue, and profitability management capabilities represents a significant competitive advantage that we believe is not economically feasible to replicate.
Previous wording
Product revenues. Product revenues consist primarily of sales of health and wellness products, such as skincare, body care, hair care, orthotics, and nutritional supplements to cruise ship passengers, destination resort guests andtimetospa.comcustomers.
Current wording
Product revenues. Product revenues consist primarily of sales of health and wellness products, such as facial skincare, body care, orthotics and detox supplements to cruise ship passengers, destination resort guests andtimetospa.com customers.
Previous wording
Net income. Net income consists of income from operations less other income (expense) and income tax expense.
Current wording
Net income. Net income consists of income from operations less other expense and income tax expense.
Previous wording
The number of health and wellness centers we operate on cruise ships and in destination resorts. The number of cruise ships on which we operate during each period is primarily impacted by our renewal of existing cruise ship partner agreements, introductions of new ships to service under our existing agreements, agreements with new cruise line partners, ships temporarily out of service for maintenance and repair, and ships prevented from sailing due to outbreaks of illnesses, among other factors. The number of destination resorts in which we operate during each period is primarily attributable to renewal of existing agreements with destination resort partners and destination resorts prevented from operating due to outbreaks of illnesses, among other factors.
Current wording
The number of health and wellness centers we operate on cruise ships and in destination resorts. The number of cruise ships on which we operate during each period is primarily impacted by our renewal of existing cruise ship partner agreements, introductions of new ships to service under our existing agreements, agreements with new cruise line partners, ships temporarily out of service for maintenance and repair, ships temporarily out of service undergoing enhancements to their facilities and operations, including enhancements to our health and wellness centers, ships and itineraries impacted by temporary adverse weather conditions, and ships prevented from sailing due to outbreaks of illnesses, among other factors. The number of destination resorts in which we operate during each period is primarily attributable to renewal of existing agreements with destination resort partners, certain of our health and wellness centers undergoing renovations to enhance operations, and destination resorts temporarily prevented from operating due to adverse weather conditions and outbreaks of illnesses, among other factors.
Previous wording
The size and offerings of new health and wellness centers. We have focused on innovating and implementing higher value added and price point services such as medi-spa and advanced facial techniques, which require treatment rooms equipped with specific equipment and staff trained to perform these services. As our cruise line partners continue to invest in new ships with enhanced health and wellness centers that allow for more advanced treatment rooms and larger staff sizes, we are able to increase the availability of these services, driving an overall shift towards a more profitable service mix.
Current wording
The size and offerings of new health and wellness centers. We have focused on innovating and implementing higher value added and price point services such as medi-spa and advanced facial techniques, which require treatment rooms equipped with specific equipment and staff trained to perform these services. As our cruise line partners continue to invest in new ships and enhancing existing vessels with enhanced health and wellness centers that allow for more advanced treatment rooms and larger staff sizes, we are able to increase the availability of these services, driving an overall shift towards a more profitable service mix.
Previous wording
Expansion of value-added services and products and increased pricing across modalities in existing health and wellness centers. We continue to introduce and expand our higher value added and price point offerings in existing health and wellness centers, including introducing premium medi-spa, acupuncture, and advanced facial services, resulting in higher guest demand and spending. In addition, we have increased pricing across our brands for our core services.
Current wording
Expansion of value-added services and products and increased pricing across modalities in existing health and wellness centers. We continue to introduce and expand our higher value added and price point offerings in existing health and wellness centers, including introducing premium medi-spa, acupuncture, light therapies and advanced skin care services, among other services and products innovations, resulting in higher guest demand and spending. In addition, we continue to evaluate our pricing architecture selectively across our services and products.
Previous wording
Collaboration with cruise line partners, including targeted marketing and promotion initiatives, and implementation of proprietary technologies to increase our health and wellness center utilization via pre-booking and pre-payment of health and wellness services. We directly market and promote to onboard passengers as a result of increasing collaboration with our cruise line partners. We also utilize our proprietary health and wellness services pre-booking and pre-payment technology platforms integrated with certain of our cruise line partners’ pre-cruise planning systems. These areas of increased collaboration with cruise line partners are resulting in higher productivity, revenue generation, and profitability across our health and wellness centers.
Current wording
Collaboration with cruise line partners, including targeted marketing and promotion initiatives, as well as implementation of proprietary technologies to increase center utilization via pre-booking and pre-payment of health and wellness services. We directly market and promote to onboard passengers as a result of increasing collaboration with our cruise line partners. We also utilize our proprietary health and wellness services pre-booking and pre-payment technology platforms integrated with certain of our cruise line partners’ pre-cruise planning systems. These areas of increased collaboration with cruise line partners are resulting in higher productivity, revenue generation, and profitability across our health and wellness centers.
Previous wording
Comparison of Results for the three months ended September 30, 2025 compared to three months ended September 30, 2024
Current wording
Comparison of Results for the Three Months Ended March 31, 2026 and 2025
Previous wording
Revenues. Total revenues increased 7% to $258.5 million compared to $241.7 million in the third quarter of 2024, driven by a 4% increase in average guest spend, fleet expansion due to 2025 vessel newbuilds, and a 1% increase in revenue days, contributing $7.8 million, $6.8 million and $3.2 million, respectively, to the increase in Total revenues. Contributing to the increased volume and spend was $2.7 million in increased pre-booked revenues at health and wellness centers included in our ship count as of September 30, 2025. Growth in our maritime Total revenues was offset by a $1.0 million decrease in our destination resorts Total revenues, partially due to the closure of hotels where we had previously operated.
Current wording
Revenues. Total revenues increased 13% to $247.6 million compared to $219.6 million for the first quarter of 2025, driven by a 4% increase in revenue days, a 2% increase in average guest spend, and health and wellness center expansion from 2026 new ship builds, contributing $23.1 million, $5.0 million and $1.2 million, respectively, to the increase in Total revenues, of which $5.4 million was attributable to increased guest pre-booked services. Growth in our Maritime Total revenues was offset by a $1.2 million decrease in destination resorts Total revenues, partially due to the closure of hotels where we had previously operated.
Previous wording
Cost of services. Cost of services for the nine months ended September 30, 2025 were $481.5 million, an increase of $27.1 million, or 6%, compared to $454.4 million for the nine months ended September 30, 2024. The increase primarily was attributable to costs associated with increased Service revenues of $579.9 million in the nine months ended September 30, 2025 from our operating health and wellness centers at sea and on land, compared with Service revenues of $547.5 million in the nine months ended September 30, 2024.
Current wording
Cost of services. Cost of services for the three months ended March 31, 2026 were $168.3 million, an increase of $20.2 million, or 14%, compared to $148.2 million for the three months ended March 31, 2025. The increase was primarily attributable to costs associated with increased service revenues of $203.7 million in the quarter from our operating health and wellness centers at sea and on land, compared with service revenues of $178.5 million in the first quarter of 2025.
Previous wording
Cost of products. Cost of products for the nine months ended September 30, 2025 were $118.1 million, an increase of $7.3 million, or 7%, compared to $110.8 million for the nine months ended September 30, 2024. The increase primarily was attributable to costs associated with increased Product revenues of $139.0 million in the nine months ended September 30, 2025 from our operating health and wellness centers at sea and on land, compared to Product revenues of $130.4 million in the nine months ended September 30, 2024.
Current wording
Cost of products. Cost of products for the three months ended March 31, 2026 were $37.8 million, an increase of $2.5 million, or 7%, compared to $35.3 million for the three months ended March 31, 2025. The increase was primarily attributable to costs associated with increased product revenues of $44.0 million in the quarter from our operating health and wellness centers at sea and on land, compared to product revenues of $41.1 million in the first quarter of 2025.
Previous wording
Amortization of intangible assets. Amortization of intangible assets was $4.1 million for each the three-month periods ended September 30, 2025 and 2024.
Current wording
Amortization of intangible assets. Amortization of intangible assets was $4.1 million for each of the three months ended March 31, 2026 and 2025.
Previous wording
Net income. Net income for the three months ended September 30, 2025 was $24.3 million, an increase of $2.8 million, or 13%, compared to a net income of $21.6 million for the three months ended September 30, 2024. The $2.8 million increase in net income was primarily driven by a $1.3 million improvement in income from operations and a $1.1 million reduction in interest expense.
Current wording
Net income. Net income for the three months ended March 31, 2026 was $21.3 million, an increase of $6.1 million, or 40%, compared to a net income of $15.3 million for the three months ended March 31, 2025. This increase was primarily attributable to a $6.0 million improvement in operating income.
Previous wording
We fund our operations principally with cash flow from operations. Our principal uses for our liquidity have been funding the operations of our health and wellness centers onboard 204 cruise ships and in 49 destination resorts, including associated working capital investment and capital expenditures; capital expenditures in technology and infrastructure assets to enhance our complex global operating platform; debt service, including $13.8 million repayment of our Term Loan Facility; payment of $12.4 million in dividends to shareholders; and purchasing 2,094,000 of our common shares under our 2024 Share Repurchase Program and 816,028 of our common shares under our 2025 Share Repurchase Program, among other uses of our liquidity.
Current wording
We fund our operations principally with cash flow from operations. Our principal uses for our liquidity during the three months ended March 31, 2026, included (i) funding investment in support of the operations of our health and wellness centers onboard cruise ships and in destination resorts, including working capital and capital expenditures for technology, infrastructure, and global operating infrastructure; (ii) a $1.3 million principal payment on our Term Loan Facility; and (iii) the payment of $5.1 million in Dividends.
Previous wording
We have concluded that we will have sufficient liquidity to satisfy our existing and planned capital requirements over the next twelve months and thereafter and to comply with all debt covenants as required by our debt agreements.
Current wording
We have concluded that our existing cash and available credit facilities, combined with cash flow from operations, will be sufficient to satisfy our existing and planned capital requirements and to comply with all debt covenants as required by our debt agreements over the next twelve months and for the foreseeable future beyond that period. Additional information regarding our Revolving Facility, letter of credit capacity, and debt covenants is included in the notes to our consolidated financial statements.
Previous wording
The following table shows summary cash flow information for the nine months ended September 30, 2025 and the nine months ended September 30, 2024.
Current wording
The following table shows summary cash flow information for the three months ended March 31, 2026 and 2025.
Previous wording
Operating activities. Our net cash provided by operating activities for the nine months ended September 30, 2025 and 2024 were $63.6 million and $62.2 million, respectively. This increase of $1.3 million was due to a change in working capital of ($8.8) million offset by an increase in Net income, net of non-cash items of $10.1 million. The increase in Net income, net of non-cash items was primarily attributable to: (i) increased revenues from a higher number of health and wellness center guests on our existing fleet, expansion of our fleet, and higher guest spend, and (ii) reduced interest expense, which was attributable to lower debt balances. For further discussion, see “Results of Operations”, above. The ($8.8) million change in working capital was attributable to cash outflows of $23.1 million and $14.3 million for the nine months ended September 30, 2025 and 2024, respectively.
Current wording
Operating activities. Our net cash provided by operating activities for the three months ended March 31, 2026 and 2025 were $9.1 million and $10.1 million, respectively. This decrease of $1.0 million was due to a change in working capital of $(6.6) million offset by an increase in net income, net of non-cash items of $5.6 million. The increase in net income, net of non-cash items was primarily attributable to: increased revenues from a higher number of health and wellness center guests on our existing fleet, expansion of our fleet by nine ships, and higher guest spend. For further discussion, see “Results of Operations”, above. The $(6.6) million change in working capital was attributable to cash outflows of $21.6 million and $15.0 million for the three months ended March 31, 2026 and 2025, respectively.
Previous wording
The $14.3 million cash outflows from working capital for the nine months ended September 30, 2024 was primarily driven by (i) a $22.1 million increase in Other non-current assets reflecting capitalized contract costs incurred to enter into new or to renew long-term contracts; (ii) a $1.5 million increase in accounts receivable due to higher revenues with respect to the prior year period; (iii) a $1.9 million decrease in Accounts payable, primarily related to the timing of vendor payments partially offset by (iv) a decrease in inventory of $4.1 million; and (v) an increase in other long-term liabilities of $7.3 million, which relate to fees accrued to cruise line partners.
Current wording
The $21.6 million cash outflows from working capital for the three months ended March 31, 2026 was primarily driven by: (i) a payment of $7.3 million to a cruise line partner for previously accrued fees; (ii) a $6.4 million decrease in accounts payable due to the timing of vendor payments; (iii) a $5.2 million increase in inventory, reflecting increased purchases due to revenue growth and in anticipation of increased shipments in the second quarter of 2026; (iv) a $1.5 million increase in prepaid expenses resulting from the timing of various service contracts; and (v) a $1.3 million increase in accounts receivable driven by higher revenue.
Previous wording
Financing activities. Our net cash used in by financing activities for the nine months ended September 30, 2025 and 2024 were ($81.7) million and ($37.9) million, respectively. For the nine months ended September 30, 2025, the Company utilized $55.5 million to repurchase 2,910,000 of our common shares, repaid $13.7 million on the Term Loan Facility and paid Dividends of $12.4 million. For the nine months ended September 30, 2024, the Company received proceeds from the exercise of public and private warrants of $51.7 million, received proceeds from the Term Loan Facility of $100.0 million, repaid $159.6 million on the First Lien Term Loan Facility, paid $5.4 million of deleveraging fee on the First Lien Term Loan Facility, utilized $19.0 million to repurchase 1,351,688 of our common shares and $1.3 million to pay deferred financing cost.
Current wording
Financing activities. Our net cash used in financing activities for the three months ended March 31, 2026 and 2025 were $(6.3) million and $(43.3) million, respectively. For the three months ended March 31, 2026, the Company repaid $1.3 million on the Term Loan Facility and paid dividends of $5.1 million. For the three months ended March 31, 2025, the Company utilized $37.9 million to repurchase 2,094,000 of our common shares, repaid $1.3 million on the Term Loan Facility and paid dividends of $4.2 million.
Previous wording
As of September 30, 2025, our future contractual obligations have not changed significantly from the amounts disclosed in our 2024 Form 10-K.
Current wording
As of March 31, 2026, our net future contractual obligations have not changed significantly from the amounts disclosed in our 2025 Form 10-K.
Previous wording
Management’s discussion and analysis of financial condition and results of operations is based upon our unaudited condensed consolidated financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the unaudited condensed consolidated financial statements and the reported amount of revenues and expenses during the reporting period. Actual results may differ from these estimates under different assumptions or conditions. At least quarterly, management reevaluates its judgments and estimates, which are based on historical experience, current trends and various other assumptions that are believed to be reasonable under the circumstances.
Current wording
Management’s discussion and analysis of financial condition and results of operations is based upon our condensed consolidated unaudited financial statements, which have been prepared in accordance with U.S. generally accepted accounting principles. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated unaudited financial statements and the reported amount of revenues and expenses during the reporting period. Actual results may differ from these estimates under different assumptions or conditions. At least quarterly, management reevaluates its judgments and estimates, which are based on historical experience, current trends and various other assumptions that are believed to be reasonable under the circumstances.
Previous wording
Our critical accounting policies are included in our 2024 Form 10-K. We believe that there have been no significant changes during the nine months ended September 30, 2025 to the critical accounting policies disclosed in our 2024 Form 10-K.
Current wording
Our critical accounting policies are included in our 2025 Form 10-K. We believe that there have been no significant changes during the three months ended March 31, 2026 to the critical accounting policies disclosed in our 2025 Form 10-K.
Previous wording
the potential impact of outbreaks of illnesses on the industries in which the Company operates and the Company’s business, operations, results of operations and financial condition, including cash flows and liquidity;
Current wording
the Company's results of operations and financial condition, including cash flows and liquidity;
Previous wording
the demand for the Company’s services together with the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors or changes in the business environment in which the Company operates;
Current wording
consumer demand or the markets for the Company’s services and products, together with the possibility that the Company may be adversely affected by economic, business, and/or competitive factors or changes in the business environment in which the Company operates;
Previous wording
changes in applicable laws or regulations;
Current wording
applicable laws or regulations;
Previous wording
competition for the Company’s services and the availability of competition for opportunities for expansion of the Company’s business;
Current wording
the availability and realization of opportunities for expansion of the Company’s business;
Previous wording
the loss of one or more members of the Company’s management team;
Current wording
dependence on the Company’s management team;
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
Comparison of Results for the Three Months Ended March 31, 2026 and 2025
Current report — wording carried from elsewhere
economic, business, geopolitical, and/or competitive factors and the business environment in which the Company operates;
Rearranged previous paragraphs (2)
Previous report — wording carried elsewhere
The break-down of revenue between service and product revenues was as follows:
Previous report — wording carried elsewhere
changes in consumer preferences or the markets for the Company’s services and products;