XWELL, Inc. Releases Q3 2024 10-Q Report Highlighting Financial and Operational Improvements
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XWELL, Inc., a company specializing in premium spa services, diagnostic testing, hair removal, and wellness services, has released its Form 10-Q report for the third quarter of 2024. The report highlights significant financial and operational improvements, reflecting the company's strategic initiatives and expansion efforts.
Financial Highlights
- Total Revenue: $8.422 million, increased by 13% compared to the same period last year, primarily due to the increase in the XpresTest CDC contract and the addition of Naples Wax.
- Gross Profit: $2.053 million, reflecting an improvement from the previous year, driven by schedule optimization in XpresSpa locations.
- Operating Loss: $(4.769) million, a significant reduction from the previous year's loss, attributed to cost management and efficiency improvements.
- Net Loss: $(4.705) million, showing a decrease in losses compared to the prior year, with efforts focused on reducing operating and overhead expenses.
- Basic and Diluted Loss Per Share: $(0.99), improved from the previous year's $(2.76), reflecting better cost control and strategic financial management.
Business Highlights
- Revenue Segments: XWELL operates through four main segments: XpresSpa, XpresTest, Naples Wax Center, and Treat. XpresSpa provides premium spa services at airports, XpresTest offers diagnostic testing and bio-surveillance services, Naples Wax Center focuses on hair removal and skincare products, and Treat provides wellness services for travelers.
- Geographical Performance: As of September 30, 2024, XpresSpa had 19 domestic locations and 10 international locations, including in Dubai, Abu Dhabi, Amsterdam, and Istanbul. This international presence highlights the company's strategic focus on expanding its global footprint.
- Sales Units: The company reported a total of 19 domestic XpresSpa locations, with 17 being company-owned and two franchises. Additionally, there are three high-performing Naples Wax Center locations.
- New Product Launches: The company is expanding its retail strategy by aligning products more efficiently with service offerings, such as adding muscle relaxation patches to massages.
- New Production Launches: Plans are underway to open the first XWELL Studios location in Jacksonville, Florida in 2025. This new concept will provide leased space to wellness service providers outside of airports.
- Future Outlook: XWELL plans to expand its health and wellness services outside of airports to scale its brand offerings. The company is also looking to further expand internationally, leveraging the return of international travel to pre-pandemic levels.