OneSpaWorld Holdings Limited

Good day and welcome to the OneSPAW World Second Quarter 2025 Earnings Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star, then one, on your telephone keypad. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to hand the call over to Allison Malkin of ICR. Please go ahead. Thank

you. Good morning and welcome to OneSPAW World Second Quarter 2025 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 current 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 2025 Earnings Release, which was furnished to the SEC today on Form 8K. 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 this call. An explanation of these metrics can be found in our Earnings Release issued earlier this morning. Joining me today are Leonard Fluxman, Executive Chairman and Chief Executive Officer, and Stephen Lazarus, President, Chief Operating Officer, and Chief Financial Officer. Leonard will begin with review of our Second Quarter 2025 performance and provide an update on our key priorities. Then Stephen will provide more details on the financials and guidance. Following our prepared remarks, we will turn the call over to the operator to begin the question and answer portion of the call. I would now like to turn the call over to Leonard.

Thank you, Alison. Good morning, and welcome to One Spa World's Second Quarter 2025 Earnings Conference Call. It's a pleasure to speak to you today to share better than expected Second Quarter results, which completed a strong first half of the year for our company. Our ongoing strength reflects the efforts of our outstanding team that continues to leverage our powerful global operating platform and our strategic investments to drive innovation, productivity, and profitability across our operations. Highlights of our Second Quarter were total revenues increased 7% to a record $240.7 million compared to $224.9 million in the Second Quarter of 2024. Income from operations increased 17% to a record $22.1 million compared to $18.8 million in the Second Quarter of 2024. Net income increased 27% to $19.9 million compared to $15.8 million in the Second Quarter of 2024. And adjusted EBITDA increased 13% to a record $30.5 million compared to $27.1 million in the Second Quarter of 2024. At quarter end, we operated health and wellness centers on 200 ships with an average ship count of 171 for the quarter, compared to the total of 197 ships and an average ship count of 188 at the end of the Second Quarter of fiscal 2024. Also at the quarter end, we had 4,365 cruise ship personnel on vessels compared with 4,300 cruise ship personnel on vessels at the end of the Second Quarter of fiscal 2024. The quarter marked meaningful progress on our key priorities, and I'm going to share some of those highlights with you. First, we captured highly visible new ship growth with current cruise line partners and added new cruise line partnerships to our fold. We continued to solidify our market leadership during the quarter, renewing our partnership with Windstar Cruises and introducing a new health and wellness center on board the newly launched Oceana Allura. For the year, we remain on track to introduce health and wellness centers on an additional seven new ship builds, commencing voyages in the second half of the year. Second, we continue to expand higher value services and products. These higher value services, including MediSpa, IV therapy, and Acupuncture, to name a few, help to grow sales productivity. In the quarter, we continue to introduce these services to more ships and expand offerings with the latest innovations, adding to our growth. To this end, we continue to elevate the innovation in our MediSpa services with the expansion of our rollout of next generation technology with the Marge FLX and CoolSculping Elite, which offer improved results and reduced treatment time by up to 50%. These new technologies generated over 20% growth for these treatments in Q2 versus last year. In addition, Acupuncture remains a sought-after service with very strong adoption of LED light therapy as a high conversion add-on treatment. At quarter end, MediSpa services were available on 147 ships, up from 144 ships at the end of 2024 second quarter. We continue to expect to have MediSpa offerings on 151 ships this year. Third, we focused on enhancing health and wellness center productivity. This is best reflected in the delivery of -the-board growth and key operating metrics, including revenue per passenger per day, weekly revenue, pre-cruise revenue, and revenue per staff per day driven by, one, staff retention, which remains a key contributor to our consistent gains in operating metrics as experienced team members are driving incremental revenue through more effective customer recommendations. We continue to invest in -in-class training and have recently redesigned our talent management process to further support productivity and long-term growth in our operating metrics. Our enhanced sales training continues to feel increases in the number of guests using the service frequency, service spend, and retail and average spend per guest. Additionally, pre-booking revenue as a percentage of services remains strong at 23%. During this quarter, we introduced pre-booking on Azumaric cruises. Fourth, we ended the quarter with a very strong balance sheet, which allowed us to invest in our growth while returning value to shareholders through our quarterly dividend payment. We remain confident in our outlook as we begin the second quarter of the year, with our business continuing its favorable momentum at the start of the third quarter. In addition to the introduction of seven new health and wellness centers beginning the voyages through the remainder of 2025, we are also excited by developing initiatives employing emerging AI technologies to enhance our unique global positioning towards delivering increased exceptional experiences for our guests and service to our partners. We believe this, along with continued discipline with which we execute our asset-light business model, positions us well to deliver strong results for our stakeholders and shareholders in fiscal 2025 and beyond. As Stephen will share momentarily, we have affirmed our annual revenue guidance and have increased our 2025 adjusted EBITDA guidance. With that, I will turn the call over to Stephen, who will provide more detail on our second quarter results and guidance. Stephen.