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OneSpaWorld Holdings Limited (OSW) Q2 2026 Earnings Call July 29, 2026 10:00 AM EDT

Company Participants

Leonard Fluxman - CEO & Executive Chairman
Stephen Lazarus - President, COO & CFO

Conference Call Participants

Allison Malkin - ICR Inc.
Steven Wieczynski - Stifel, Nicolaus & Company, Incorporated, Research Division
Sharon Zackfia - William Blair & Company L.L.C., Research Division
Randal Konik - Jefferies LLC, Research Division
Maksim Rakhlenko - TD Cowen, Research Division
Gregory Miller - Truist Securities, Inc., Research Division
Andrew May - Northcoast Research Partners, LLC
Assia Georgieva - Infinity Research

Presentation

Operator

Greetings, and welcome to the OneSpaWorld Second Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Allison Malkin, partner of ICR. Thank you. Please go ahead.

Allison Malkin
ICR Inc.

Thank you. Good morning, and welcome to OneSpaWorld's Second Quarter 2026 Earnings Call and Webcast. Before we begin, I'd like to remind you that certain statements and information made available on today's call and webcast may be deemed to constitute forward-looking statements.

These forward-looking statements reflect our judgment and analysis only as of today, and actual results may differ materially from current expectations based on a number of factors affecting our business. Accordingly, you should not place undue reliance on these forward-looking statements. For a more thorough discussion of the risks and uncertainties associated with the forward-looking statements to be made in this conference call and webcast, we refer you to the disclaimer regarding forward-looking statements that is included in our second quarter 2026 earnings release, which was furnished to the SEC today on Form 8-K.

We do not undertake any obligation to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise. In addition, the company may refer to certain adjusted non-GAAP metrics on

Walter Field McLallen, a director of OneSpaWorld Holdings Limited (OSW +3.38%), reported the sale of 10,500 shares of Common Stock in an open-market transaction on June 11, 2026, according to a SEC Form 4 filing.

Transaction summaryMetricValueShares sold (direct)10,500Transaction value$259,035Post-transaction shares (direct)137,382Post-transaction value (direct ownership)~$3.41 millionTransaction value based on SEC Form 4 weighted average purchase price ($24.67).

Key questionsHow does this transaction compare to McLallen's historical sale patterns?
Since July 2023, McLallen has executed sell transactions averaging approximately 13,524 shares each.What is the impact of this sale on McLallen's ownership position in OneSpaWorld?
The sale reduced McLallen's direct Common Stock holdings by 7%, leaving a post-transaction balance of 137,382 shares.Were any shares disposed of through indirect entities or derivatives in this filing?
No; all 10,500 shares were sold from direct holdings, with no indirect transactions (such as those involving trusts or LLCs) or derivative exercises involved in this event.Company overviewMetricValuePrice (as of market close 6/11/26)$24.67Revenue (TTM)$989.00 millionNet income (TTM)$77.68 million1-year price change37.14%* 1-year performance calculated using June 11th, 2026 as the reference date.

Company snapshotOneSpaWorld offers a comprehensive suite of spa, wellness, fitness, and beauty services, including traditional therapies, medi-spa treatments, and branded retail products, primarily on cruise ships and at premium destination resorts.The firm operates under a service-based business model, generating revenue through direct provision of health and wellness services, product sales, and exclusive brand partnerships within its facilities.It targets cruise line passengers and resort guests seeking premium wellness experiences, with a focus on high-value leisure travelers and vacationers.OneSpaWorld Holdings Limited is a leading global provider of health and wellness services, operating an extensive network across cruise ships and destination resorts. The company leverages exclusive brand partnerships and a broad service portfolio to address the growing demand for premium wellness experiences among leisure travelers. Its scale and integrated offering underpin a strong competitive position within the leisure and hospitality sector.

What this transaction means for investorsMcLallen has been a consistent seller over the past several years, and this transaction falls below his average sale size while leaving him with a sizable stake in the company.

More importantly for long-term investors, OneSpaWorld reported record first-quarter revenue of $247.6 million, up 13% year over year, while net income climbed 40% to $21.3 million and adjusted EBITDA increased 21% to a record $32.2 million. CEO Leonard Fluxman said the company has now delivered 20 consecutive quarters of record revenue and adjusted EBITDA, citing strong execution and continued demand across its cruise ship and resort network. Management also raised its full-year outlook, now expecting as much as $1.034 billion in revenue and up to $139 million in adjusted EBITDA, while highlighting plans to launch operations on six new cruise ships this year.

With shares up 37% over the past year, it's not surprising to see some insiders lock in gains. Still, McLallen retained more than 137,000 shares after the sale, suggesting his interests remain aligned with shareholders. Investors should focus less on this relatively modest disposition and more on whether the hospitality provider can continue translating strong cruise demand into higher earnings, cash flow, and shareholder returns.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.