OneSpaWorld Holdings Limited

Greetings and welcome to One Spa World first quarter 2026 earnings conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. I would now like to turn the conference over to your host, Allison Malkin, a partner with ICR. Thank you. You may begin.

Thank you. Good morning, and welcome to One Smile World's first quarter, 2026 Earnings Call-In Webcast. Before we begin, I'd like to remind you that certain statements and information made available on today's call-in 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 on this conference call and webcast, we refer you to the disclaimer regarding forward-looking statements that is included in our first quarter 2026 earnings release which was also furnished to the SEC today on Form 8K. We do not undertake any obligation to update or alter any information regarding 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. Explanations 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 first quarter of 2026 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 OneSpot World's first quarter 2026 earnings conference call. We began the year with continued strong momentum in the first quarter, reporting better than expected top and bottom line results. The period marked our 20th consecutive quarter of record total revenues and adjusted EBITDA, evidencing the strength of our global operations and the disciplined execution of our strategy by our outstanding team. Our highly trained and motivated staff delivered exceptional experiences for our health and wellness center guests, driven by ongoing innovation in our product and service offerings. The longstanding strength reinforces our leading position in the global operations of health and wellness services at sea. I continue to be very proud of our exceptional team members worldwide for their unwavering commitment and the outstanding performance which has led to our ongoing strong results. As outlined in our earnings release based on our first quarter performance and favorable momentum, we currently expect to deliver 10% growth in total revenues and adjusted EBITDA for the second quarter. at the midpoint of our guidance ranges, excluding the results of exited and reorganized operations. Turning to the highlights of the quarter, total revenues increased 13% to $247.6 million, income from operations increased 36% to $22.9 million, net income increased 40% to $21.3 million, and adjusted EBITDA increased 21% to $32.2 million. At quarter end, we operated health and wellness centers on 208 ships with an average ship count of 202 for the quarter. This compares with a total of 199 ships and an average ship count of 193 ships at the end of the first quarter of fiscal 2025. Also at quarter end, our cruise ship health and wellness centers were staffed with 4,585 personnel. compared with 4,240 personnel on vessels on March 31st, 2025. We continue to focus on four key priorities to deliver this growth, delivering meaningful progress on each during the quarter. Let me share some of those highlights. First, we captured highly visible new ship growth with current cruise line partners. During the quarter, we introduced health and wellness centers on two new ship builds, Norwegian Cruise Lines Lunar and Disney Adventure, which launched their major voyages in March. These launches reinforce our strong positioning alongside leading global cruise operators and our commitment to elevating and differentiating our health and wellness centers to bring innovative and breakthrough technology to our guests. To this end, on NCL's Luna, we introduced TruFlex, the new non-invasive muscle sculpting mini spa service. As mentioned, we remain on track to introduce health and wellness centers on six new shipbuilds this year. Second, we continue to expand high-value service and products. Our higher-value services, including MediSpar, IV therapy, and acupuncture, continue to enhance onboard productivity and expand our addressable market. To this end, the Quartus saw us deliver breakthrough innovation in our MediSpar services with a continued rollout of next-generation technology, including Thermars, trans-sculpt, cool-sculpting, IV therapy, and acupuncture LED light therapy. These new technologies generated strong double-digit growth for those treatments in Q1. We will continue to scale these services across additional ships while introducing new offerings in support of travelers' increasing commitment towards longevity and wellness. Based on the success of TruFlex on NCL's Luna, we plan additional rollouts. During the quarter, we accelerated the rollout of Niagen Plus NAD boosting intravenous solution across all 90 plus ships offering IV services, following strong initial pilot results. At quarter end, MediSpar services were available on 155 ships, up from 148 ships at the end of the first quarter of 2025. We expect to have MediSpar services on 157 ships by year-end 2026. 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, and revenue per staff per day. Additionally, pre-book revenues grew 17% and remain a driver of sales productivity with these appointments. continuing to generate 30% more guest spend than services booked on board. Finally, staff retention at 77% improved, increasing five percentage points from Q1 of 2025, reflecting the strength of our onboarding engagement and retention initiatives. We're proud of our reputation as an employer of choice and strive to create an environment that fosters retention. These and other onboard employee initiatives have contributed to the improved retention. Importantly, experienced staff generates significantly higher revenue per day versus first staff contract. We continue to invest in developing our future onboard leadership and enhancing training programs, which are key drivers of sales productivity and overall onboard performance. Fourth, we maintained our strong and durable balance sheet and generated robust free cash flow. During the quarter, we returned $5.1 million to shareholders through our quarterly dividend and reduced debt by $1.3 million under our term loan facility. Our consistent free cash flow generation continued to support both our capital allocation priorities and investment in future growth. Overall, we remain confident that 2026 will reflect another year for our company as we execute our proven and highly visible growth strategies by our exceptional team. We believe we are well positioned to further establish our leadership as the preeminent global operator of health and wellness services at sea, delivering value for our cruise line partners, elevated experience for our guests, and strong returns for our shareholders. With that, I'll turn the call over to Stephen, who will provide more details on our first quarter results and guidance.