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Dec 31, 2024
XpresSpa Q4 2024 Earnings Report
XWELL, Inc. reported a decrease in net loss and total operating expenses, driven by cost optimization and improved performance in the acquired Naples Wax business. The company also saw an increase in total revenue.
Key Takeaways
XWELL, Inc. reported a net loss of $16,490 thousand for the year ended December 31, 2024, a significant improvement from the $28,029 thousand net loss in the previous year. Total revenue increased by 13% to $33,897 thousand, primarily due to the full-year service revenue from the acquired Naples Wax business and growth in XpresSpa's new touchless locations. The company's operating expenses decreased by 19.5% due to cost optimization and the closure of underperforming XpresSpa locations.
Net loss significantly decreased from $28,029 thousand in 2023 to $16,490 thousand in 2024, indicating improved financial performance.
Total revenue increased by 13% to $33,897 thousand, driven by the acquired Naples Wax business and XpresSpa's new touchless locations.
Total operating expenses decreased by 19.5% to $25,626 thousand, reflecting successful cost optimization efforts and closure of underperforming locations.
The company continues to face substantial doubt about its ability to continue as a going concern due to recurring losses and insufficient liquidity, despite recent capital raises.
XpresSpa
XpresSpa
XpresSpa Revenue by Segment
Revenue by Segment
XpresSpa Revenue
CapyFin.comNaples Wax Center Revenue
CapyFin.com Forward Guidance
XWELL, Inc. is strategically positioned to capitalize on growing consumer interest in travel, health, and wellness. The company plans to expand and integrate offerings across its brands, optimize its airport portfolio, and pursue off-airport growth through acquisitions, particularly in the med spa sector. International expansion of bio-security services is also a key focus. However, the company faces substantial doubt about its ability to continue as a going concern due to recurring losses and insufficient liquidity, requiring additional capital raises.
Positive Outlook
- Strategic positioning to capitalize on growing consumer interest in travel, health, and wellness.
- Plans to expand and integrate offerings across multiple brands, unifying airport and off-airport locations under the XWELL brand.
- Optimization of the airport portfolio to create a leaner, more profitable business while leveraging high foot traffic for brand recognition.
- Pursuit of off-airport growth strategy through acquisitions, particularly in the expanding med spa sector.
- Expansion of bio-security services beyond the U.S. through partnerships with government clients.
Challenges Ahead
- Substantial doubt about the company's ability to continue as a going concern due to recurring losses and insufficient liquidity.
- Need to raise additional equity or debt capital to fund future operations, with no assurance of success.
- Uncertainty regarding the execution and effectiveness of strategic plans.
- Potential for dilution to existing stockholders if additional equity capital is raised.
- Risk of being required to curtail or terminate business plans if sufficient capital cannot be secured.
Revenue & Expenses
Visualization of income flow from segment revenue to net income