OneSpaWorld Holdings Limited

Good day, and welcome to the One Spa World third 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 a touch-tone phone. To withdraw your question, please press star, then two. Please note this event is being recorded. I would now like to turn the conference over to Allison Malkin of ICR. Please go ahead.

Thank you. Good morning, and welcome to One Spa World's third quarter 2025 Earnings Common Webcast. Before we begin, I'd like to remind you that certain statements and information made available on today's Common Webcast may be deemed to constitute forward-looking statements. These forward-looking statements reflect our judgment and analysis only as of today and actually 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 third 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 a review of our third 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 Spar World's third quarter 2025 earnings conference call. It's a pleasure to speak with you all today to share our record third quarter results, which were delivered at the high end of guidance, marking our 18th consecutive quarterly period of Euro-VO growth in total revenues and adjusted EBITDA. Our sustained rates of growth demonstrates the power of our complex global operating platform and our team's unwavering commitment to deliver exceptional experiences for our guests and outstanding performance for our cruise line and destination customers. resort partners. In addition, our execution of our asset-light business model continues to generate strong free cash flow, enabling us to create significant value for shareholders through an increasing quarterly dividend, share repurchases, accelerated debt pay down, and strategic investments across our operations. Turning now to the highlights of the quarter, total revenues, income from operations, and adjusted EBITDA, represented all time records and net income was a third quarter record. Total revenues increased 7% to $258.5 million compared to $241.7 million in the third quarter of 2024. Income from operations increased 5% to $26.3 million compared to $25 million in the third quarter of 2024. Net income increased 13% to $24.3 million compared to $21.6 million in the third quarter of 2024. And adjusted EBITDA increased 6% to $35 million compared to $33 million in the third quarter of 2024. At quarter end, we operated health and wellness centers on 204 ships with an average ship count of 199 for the quarter. This compares with a total of 196 ships and an average ship count of 195 ships at the end of the third quarter of fiscal 2024. Also at your end, at quarter end, sorry, we had 4,466 cruise ship personnel on vessels compared with 4,204 cruise ship personnel on vessels at the end of the third quarter of fiscal 2024. The quarter marked meaningful progress in our key priorities. Let me share some of those highlights. First, we captured highly visible new ship growth with current cruise line partners. We continue to solidify our market leadership during the quarter, introducing new health and wellness centers on board for new shipbuilds during the quarter. Royal Caribbean Star of the Seas, Virgin Brilliant Lady, Princess Cruises, Star Princess, and Celebrity XL. For the year, we remain on track to introduce health and wellness centers onto two additional new ships commencing voyages in the fourth quarter, giving us a total of eight new ship builds in 2025. Second, we continue to expand higher value services and products. These higher value services, including med spa, IV therapy, and acupuncture, to name a few, helped to grow sales productivity with strong double-digit increases in the quarter. We continue to introduce these services to more ships and expand offerings with the latest innovations in adding to our growth. In addition, we continue to elevate the innovation in our MediSpar services with the expansion of our rollout of next-generation technology with the Marge FLX and CoolSculpting Elite, which offer improved results and reduced treatment time by up to 50%. These new technologies generated between 40% and 60% growth for these treatments in Q3 versus last year. In addition, acupuncture remains in high demand with equally strong growth rates. The adoption of LED light therapy within the service remains a high conversion add-on treatment. At quarter end, MediSpar services were available on 150 ships. up from 144 ships at the end of the third quarter last year. We continue to expect to have many spa offerings on 151 ships this year. Third, we focused on enhancing health and wellness center productivity. This is best reflected in the delivery of across the board increases in key operating metrics, including revenue per passenger per day, weekly revenue, pre-cruise revenue, and revenue per staff per day. Without a doubt, our unsurpassed ability to identify onboard and retain staff is leading to this performance. In fact, staff retention remains a key contributor to our consistent gains in operating metrics as experienced team members are driving incremental revenue through more effective customer recommendations. The quarter saw a five-point increase in staff retention versus Q3 2024 with experienced staff generating significantly higher revenue per day versus first contract staff. We continue to take pride in being a desired employer and strive to create an environment that fosters retention. In addition, we continue to invest in best-in-class training and have recently redesigned our Our talent management processes further support productivity and long-term growth in our operating metrics across all of our staff members. Our enhanced sales training continues to fuel increases in number of guests using the spa, service frequency, service spend, and retail and average guest spend per guest. Fourth, we possess a strong and durable balance sheet. which combined with our ongoing successful growth enabled us to advance each of our capital allocation objectives in the quarter. These are to invest in future growth, return value to our shareholders, and reduce debt. To this point in the third quarter, we were active on our stock buyback. We paid our quarterly dividend and reduced outstanding debt. Additionally, as Stephen will share, the board approved a 25% increase in our quarterly dividend payment to $0.05 per share, which reflects our company's consistent after-tax-free cash flow generation and positive long-term growth prospects. As we close out the year, we remain confident in our outlook with our business continuing its favorable momentum at the start of the fourth quarter. In addition to the introduction of two new health and wellness centers, beginning voyages through year-end, We're also excited by developing initiatives employing emerging AI technologies to enhance our unique global positioning toward delivering increasing exceptional experiences for our guests and service to our partners. We believe this, along with the continued discipline with which we execute our asset-light business model, positions us well to deliver strong results for our stakeholders and shareholders in the near and long term. As Stephen will share momentarily, we have increased our 2025 guidance at the midpoint of our previous ranges for annual revenue and adjusted EBITDA. With that, I will turn the call over to Stephen, who will provide more details on our third quarter results and guidance. Stephen.