XWELL (XWEL) Q4 2025 earnings summary

Executive summary

• Revenue for 2025 was $29.2 million, down 14% year-over-year, mainly due to lower XpresTest segment revenues, partially offset by growth in Naples Wax Center services.

• Operating loss for 2025 was $15.7 million, a slight improvement from $16.7 million in 2024, reflecting cost reductions and business optimization.

• The company completed a major capital restructuring in early 2026, raising $31.3 million in gross proceeds through a private placement of Series H Preferred Stock and warrants, using $9 million to repurchase debt and preferred equity.

• Management concluded that the new financing alleviated prior substantial doubt about the company's ability to continue as a going concern.

Financial highlights

• Total revenue decreased by $4.7 million (14%) to $29.2 million in 2025, driven by a decline in XpresTest revenues.

• Cost of sales decreased by $3.3 million (13%) to $21.7 million, reflecting closures of underperforming locations.

• General and administrative expenses fell by $4.1 million (20%) to $16.0 million, due to cost optimization.

• Impairment charges totaled $3.1 million for long-lived assets and $1.4 million for goodwill, primarily related to Naples Wax Center.

• Net loss attributable to common stockholders was $28.2 million, or $5.08 per share, compared to $16.9 million, or $3.66 per share, in 2024.

Outlook and guidance

• The company plans to expand and integrate offerings across brands, focusing on both airport and off-airport locations.

• Strategic emphasis is on international expansion, membership programs, and off-airport growth through acquisitions, especially in the med spa sector.

• Management expects the recent capital raise to provide sufficient liquidity for at least the next twelve months.