Key Takeaways
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OneSpaWorld shares jumped 11% after record third-quarter revenue of $276.5 million and a raised 2026 outlook.
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A new $100 million buyback and a 25% dividend raise show how much cash its asset-light business throws off.
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Carnival, Royal Caribbean and Norwegian Cruise Line Holdings bring in most of its revenue, so its results are a read on onboard spending.
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Norwegian's report on Thursday is the next test.
OneSpaWorld ( OSW:NASDAQ )stock is up 11% today after a record third quarter, a raised outlook, a new $100 million buyback and a 25% dividend raise.
That matters beyond the spa. Carnival ( CCL:NYSE ), Royal Caribbean ( RCL:NYSE )and Norwegian Cruise Line Holdings ( NCLH:NYSE )brought in about 85% of OneSpaWorld's revenue in 2023, its annual report shows, so its numbers show what cruise guests spend on board.
Record after record
CEO Leonard Fluxman called it the company's "22nd consecutive record quarter of year-over-year growth in Total revenues and Adjusted EBITDA."
Revenue rose 7% and adjusted EBITDA 12%, to $39.2 million, both ahead of the company's own guidance. Average guest spend rose 3.3%, and OneSpaWorld ended the quarter on 207 ships, up from 204.
It also raised the low end of its 2026 guidance, to $1.033-$1.038 billion in revenue and $138-$140 million in adjusted EBITDA.
The cash keeps coming
Running spas on other companies' ships costs little: capital spending was $2.2 million in the third quarter. Its free cash flow covered the dividend nearly four times over in 2025.
It finished its $75 million buyback in the third quarter. The new $100 million program is bigger than any year of free cash flow so far, so it'll take a while.
And it's still paying down debt.
It repaid another $11.3 million of its term loan in the third quarter, leaving total debt at $70.5 million.
TIKR tracks 6 analysts on OneSpaWorld. How many say "Buy"?
See the full breakdown of Buy, Hold, and Sell ratings on OneSpaWorld, along with Wall Street's revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See OneSpaWorld's Analyst Ratings
Good news for the cruise lines
Royal Caribbean, whose Silversea brand just signed a new OneSpaWorld agreement, said in its third-quarter release on Tuesday that onboard revenue rates were ahead of last year. Carnival posted record net yields in its September report, with 2027 bookings at record occupancy and pricing. OneSpaWorld's 3.3% rise in guest spend says those passengers are still spending once aboard.
Norwegian is the open question. In July it guided to 2026 net yield down about 5% in constant currency, citing softer demand at its namesake brand. Does OneSpaWorld's strength show up on its ships too? Thursday's report should say.
Steady as she goes
The jump looks earned to me. At about 21x forward earnings at Tuesday's close, and even higher today, OneSpaWorld isn't cheap. But a business that beats its guidance, raises it and hands this much cash back deserves a premium.
Of course, a pullback in onboard spending would hit it fast. Next up is its fourth-quarter report early next year.
So what is OneSpaWorld stock actually worth?
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