Latest news with #OneSpaWorldHoldingsLimited
Business Wire
30-07-2025
- Business
- Business Wire
OneSpaWorld Reports Second Quarter Fiscal 2025 Results
BUSINESS WIRE)--OneSpaWorld Holdings Limited (NASDAQ: OSW) ('OneSpaWorld,' or the 'Company'), the pre-eminent global provider of health and wellness services and products on-board cruise ships and in destination resorts around the world, today announced its financial results for its second quarter and first six months of fiscal 2025 ended June 30, 2025. Leonard Fluxman, Executive Chairman and Chief Executive Officer, commented: 'I am very pleased to report second quarter results exceeding our guidance as our outstanding team continued to leverage our powerful global operating platform and our strategic investments to drive innovation, productivity and profitability across our operations. We also continued to solidify our market leadership during the quarter, renewing our partnership with Windstar Cruises and initiating our operations aboard the newly launched Oceania Allura.' Mr. Fluxman noted further, 'Our positive momentum has continued in the third quarter and we remain on track to operate aboard nine new ship builds commencing voyages this year. And I am particularly excited by our developing initiatives employing emerging AI technologies to enhance our unique global positioning toward delivering increasingly exceptional experiences for our guests, service to our partners, and results for our stakeholders and shareholders in fiscal 2025 and beyond.' Stephen Lazarus, President, Chief Financial Officer and Chief Operating Officer, added, 'Our strong performance across our financial and operating metrics during the quarter produced increases in Total revenues of 7% and Adjusted EBITDA of 13%. In addition, our capital efficient, asset-light business model continued to generate predictably strong free cash flow, fueling our return of $4.1 million to our shareholders through our quarterly dividend. We ended the quarter with a strong balance sheet and $86 million of total liquidity. Share repurchase availability under the 2025 Share Repurchase Program at June 30, 2025 remains $75 million.' Mr. Lazarus concluded, 'We expect to report fiscal 2025 Total revenues within our guidance range, reflecting high-single digit growth and we have increased our Adjusted EBITDA guidance to reflect mid-teens growth at the mid-point of our range as we benefit from the impact of our strategies to enhance our profitability as we grow.' Second Quarter 2025 Highlights: Total revenues increased 7% to a record $240.7 million compared to $224.9 million in the second quarter of 2024. Income from operations increased 17% to a record $22.1 million compared to $18.8 million in the second quarter of 2024. Net income increased 27% to $19.9 million compared to $15.8 million in the second quarter of 2024. Adjusted EBITDA increased 13% to a record $30.5 million compared to $27.1 million in the second quarter of 2024. Operating Network Update: Cruise Ship Count: The Company ended the second quarter operating health and wellness centers on 200 ships with an average ship count of 191 ships for the quarter, compared with 197 ships and an average ship count of 188 ships for the second quarter of 2024. Destination Resort Count: The Company ended the second quarter operating 51 destination resort health and wellness centers with an average resort count of 50 for the quarter, compared with 52 destination resort health and wellness centers and an average resort count of 52 for the second quarter of 2024. Staff Count: The Company ended the second quarter with 4,365 cruise ship personnel on vessels compared with 4,300 cruise ship personnel on vessels at the end of the second quarter of 2024. Liquidity Update: Cash at June 30, 2025 totaled $36.2 million. Liquidity, including the Company's fully undrawn $50 million credit facility, totaled $86.2 million at June 30, 2025. The Company's results are reported in this press release on a GAAP basis and on an as adjusted non-GAAP basis. A reconciliation of GAAP to non-GAAP financial information is provided at the end of this press release. This press release also refers to Adjusted EBITDA and Adjusted Net Income (non-GAAP financial measures), the definitions and reconciliations to their nearest GAAP equivalents for which are presented below. Second Quarter Ended June 30, 2025 Compared to June 30, 2024 Total revenues increased 7% to $240.7 million compared to $224.9 million for the second quarter of 2024. The increases in Service revenues and Product revenues were driven by a 4% increase in average guest spend, which positively impacted revenues by $8.5 million, 1% increase in revenue days, which impacted revenues by $4.5 million, and fleet expansion, which contributed $3.5 million. Contributing to the increased volume and spend was $2.7 million in increased pre-booked revenues at health and wellness centers included in our ship count as of June 30, 2025. This was offset by a $0.9 million decrease in our land-based spa business, partially due to the closure of hotels where we had previously operated. Cost of services increased $10.4 million, attributable to the $12.5 million increase in Service revenues compared to the second quarter of 2024. Cost of products increased $2.8 million, attributable to the $3.3 million increase in Product revenues compared to the second quarter of 2024. Salaries, benefits and payroll taxes were $8.8 million, compared to $9.2 million in the second quarter of 2024. The decrease was due primarily to lower than prior year incentive-based compensation expense of approximately $0.7 million. Net income was $19.9 million, or Net income per diluted share of $0.19, as compared to Net income of $15.8 million, or Net income per diluted share of $0.15, for the second quarter of 2024. The increase was attributable primarily to a $3.3 million increase in Income from operations and a benefit from a $0.8 million decrease in Interest expense, net. The $0.8 million decrease in Interest expense, net, was attributable primarily to lower debt balances and lower effective interest rates. Adjusted net income was $25.8 million, or Adjusted net income per diluted share of $0.25, compared to Adjusted net income of $21.7 million, or Adjusted net income per diluted share of $0.20, for the second quarter of 2024. Adjusted EBITDA was $30.5 million, compared to Adjusted EBITDA of $27.1 million in the second quarter of 2024. Year-to-date June 30, 2025 Compared to June 30, 2024 Total revenues increased 6% to $460.4 million compared to $436.1 million for the six months ended June 30, 2024. The increases in Service revenues and Product revenues were driven by a 3% increase in average guest spend, which positively impacted revenues by $13.2 million, 2% increase in revenue days, which impacted revenues by $9.6 million, and fleet expansion, which contributed $3.8 million. Contributing to the increased volume and spend was $5.0 million in increased pre-booked revenues at health and wellness centers included in our ship count as of June 30, 2025. This was offset by a $2.4 million decrease in our land-based spa business, partially due to the closure of hotels where we had previously operated. Cost of services increased $14.6 million, attributable to the $18.8 million increase in Service revenues compared to the six months ended June 30, 2024. Cost of products increased $4.6 million, attributable to the $5.4 million increase in Product revenues compared to the six months ended June 30, 2024. Salaries, benefits and payroll taxes were $19.8 million, compared to $17.7 million in the six months ended June 30, 2024. The increase was attributable primarily to expenses associated with the termination of employment of the Company's former Chief Commercial Officer in the first quarter of 2025, including $1.1 million of severance expense and $1.4 million of expense related to vesting treatment with respect to restricted stock units and performance stock units. Net income was $35.2 million, or Net income per diluted share of $0.34, compared to Net income of $36.9 million, or Net income per diluted share of $0.35, for the six months ended June 30, 2024. The change was attributable primarily to a $7.7 million benefit resulting from the change in the fair value of warrant liabilities in the six months ended June 30, 2024. The six months ended June 30, 2025 benefited from a $3.1 million increase in Income from operations and a $2.6 million decrease in Interest expense, net. The change in fair value of warrant liabilities was the result of the remeasurement to fair value of the warrants exercised during the six months ended June 30, 2024, reflecting changes in market prices of our common shares and other observable inputs deriving the value of these financial instruments. The $2.6 million decrease in Interest expense, net, was attributable primarily to lower debt balances and lower effective interest rates. Adjusted net income was $48.4 million, or Adjusted net income per diluted share of $0.46, as compared to Adjusted net income of $41.0 million, or Adjusted net income per diluted share of $0.39, for the six months ended June 30, 2024. Adjusted EBITDA was $57.1 million, compared to Adjusted EBITDA of $52.4 million in the six months ended June 30, 2024. Balance Sheet Highlights Cash at June 30, 2025 was $36.2 million compared to $58.6 million at December 31, 2024. The reduction in cash balance was attributable primarily to use of cash to fund common share repurchases of $37.9 million during the first quarter. Total debt, net of deferred financing costs, was $96.2 million at June 30, 2025 after giving effect to repayment of $1.3 million in debt during the second quarter. Dividend Announcement The Company announced today that the Board of Directors approved a quarterly dividend payment of $0.04 per common share payable on September 3, 2025 to shareholders of record as of the close of business on August 20, 2025. Q3 2025 and Fiscal Year 2025 Guidance Conference Call Details A conference call to discuss the second quarter 2025 financial results is scheduled for Wednesday, July 30, 2025, at 10:00 a.m. Eastern Time. Investors and analysts interested in participating in the call are invited to dial 1-877-283-8977 (international callers please dial 1-412-542-4171) and provide the passcode 10201395 approximately 10 minutes prior to the start of the call. A live audio webcast of the conference call will be available online at A replay of the call will be available by dialing 844-512-2921 (international callers please dial 412-317-6671) and entering the passcode 10190591. The conference call replay will be available from 2:00 p.m. Eastern Time on Wednesday, July 30, 2025 until 11:59 p.m. Eastern Time on Wednesday, August 6, 2025. The Webcast replay will remain available for 90 days. About OneSpaWorld Headquartered in Nassau, Bahamas, OneSpaWorld is one of the largest health and wellness services companies in the world. OneSpaWorld's distinguished health and wellness centers offer guests a comprehensive suite of premium health, wellness, fitness and beauty services, treatments, and products, currently onboard 202 cruise ships and at 51 destination resorts around the world. OneSpaWorld holds the leading market position within the cruise industry segment of the international leisure market, which it has earned over six decades upon its exceptional service; expansive global recruitment, training and logistics platforms; irreplicable operating infrastructure; powerful team; and product innovation, delivering tens of millions of extraordinary guest experiences and outstanding service to its cruise line and destination resort partners. On March 19, 2019, OneSpaWorld completed a series of mergers pursuant to which OSW Predecessor, comprised of direct and indirect subsidiaries of Steiner Leisure Ltd., and Haymaker Acquisition Corp. ('Haymaker'), a special purpose acquisition company, each became indirect wholly owned subsidiaries of OneSpaWorld (the 'Business Combination'). Haymaker is the acquirer and OSW Predecessor the predecessor, whose historical results have become the historical results of OneSpaWorld. Forward-Looking Statements This press release includes 'forward-looking statements' within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of the Company may differ from its actual results and consequently, you should not rely on these forward-looking statements as predictions of future events. Words such as 'expect,' 'estimate,' 'project,' 'budget,' 'forecast,' 'anticipate,' 'intend,' 'plan,' 'may,' 'will,' 'could,' 'should,' 'believes,' 'predicts,' 'potential,' 'continue,' or the negative or other variations thereof and similar expressions are intended to identify such forward looking statements. These forward-looking statements include, without limitation, expectations with respect to future performance of the Company, including projected financial information (which is not audited or reviewed by the Company's auditors), and the future plans, operations and opportunities for the Company and other statements that are not historical facts. These statements are based on the current expectations of the Company's management and are not predictions of actual performance. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Factors that may cause such differences include, but are not limited to: the impact of outbreaks of illnesses on our business, operations, results of operations and financial condition, including liquidity for the foreseeable future; the demand for the Company's services together with the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors or changes in the business environment in which the Company operates; changes in consumer preferences or the market for the Company's services; changes in applicable laws or regulations; the availability or competition for opportunities for expansion of the Company's business; difficulties of managing growth profitably; the loss of one or more members of the Company's management team; loss of a major customer and other risks and uncertainties included from time to time in the Company's reports (including all amendments to those reports) filed with the SEC. The Company cautions that the foregoing list of factors is not exclusive. You should not place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based, except as required by law. These forward-looking statements should not be relied upon as representing the Company's assessments as of any date subsequent to the date of this communication. Non-GAAP Financial Measures We refer to certain financial measures that are not recognized under U.S. generally accepted accounting principles ('GAAP'). Please see 'Note Regarding Non-GAAP Financial Information' and 'Reconciliation of GAAP to Non-GAAP Financial Information' below for additional information and a reconciliation of the non-GAAP financial measures to the most comparable GAAP financial measures. Forecasted Q3 2025 FY 2025 Period End Ship Count 205 207 Average Ship Count (1) 198 195 Period End Resort Count 50 50 Average Resort Count (2) 51 50 Expand Three Months Ended Six Months Ended June 30, June 30, 2025 2024 2025 2024 Selected Statistics Period End Ship Count 200 197 200 197 Average Ship Count (1) 191 188 192 188 Average Weekly Revenue Per Ship $ 92,936 $ 88,034 $ 88,560 $ 84,859 Average Revenue Per Shipboard Staff Per Day $ 608 $ 586 $ 585 $ 567 Revenue Days (2) 17,426 17,074 34,827 34,150 Period End Resort Count 51 52 51 52 Average Resort Count (3) 50 52 50 52 Average Weekly Revenue Per Resort $ 13,019 $ 14,028 $ 14,116 $ 15,405 Capital Expenditures (in thousands) $ 2,729 $ 1,116 $ 4,426 $ 2,322 Expand (1) Average Ship Count reflects the fact that during the period ships were in and out of service and is calculated by adding the total number of days that each of the ships generated revenue during the period, divided by the number of calendar days during the period. (2) Revenue Days reflects a day on which the health and wellness centers are open onboard a revenue generating cruise with passengers. (3) Average Resort Count reflects the fact that during the period destination resort health and wellness centers were in and out of service and is calculated by adding the total number of days that each destination resort health and wellness center generated revenue during the period, divided by the number of calendar days during the period. Note Regarding Non-GAAP Financial Information This press release includes financial measures that are not calculated in accordance with GAAP, including Adjusted net income, Adjusted net income per diluted share and Adjusted EBITDA. We define Adjusted net income as Net income, adjusted for items, including Change in fair value of warrant liabilities; increase in Depreciation and amortization resulting from the Business Combination; Long-lived assets impairment; and Stock-based compensation. Adjusted net income per diluted share is defined as Adjusted net income divided by Diluted weighted average shares outstanding during the period, as if such shares had been outstanding during the entire three and six month periods ended June 30, 2025 and 2024. We define Adjusted EBITDA as Net income adjusted for items, including Income tax expense; Interest expense, net; Change in fair value of warrant liabilities; Depreciation and amortization; and Stock-based compensation as set forth below. We believe that these non-GAAP measures, when reviewed in conjunction with GAAP financial measures, and not in isolation or as substitutes for analysis of our results of operations under GAAP, are useful to investors as they are widely used measures of performance and the adjustments we make to these non-GAAP measures provide investors further insight into our profitability and additional perspectives in comparing our performance to other companies and in comparing our performance over time on a consistent basis. Adjusted net income, Adjusted net income per diluted share and Adjusted EBITDA have limitations as profitability measures in that they do not include total amounts for interest expense on our debt and provision for income taxes, and the effect of our expenditures for capital assets and certain intangible assets. In addition, all of these non-GAAP measures have limitations as profitability measures in that they do not include the effect of non-cash stock-based compensation expense and the impact of certain expenses related to items that are settled in cash. Because of these limitations, the Company relies primarily on its GAAP results. In the future, we may incur expenses similar to those for which adjustments are made in calculating Adjusted EBITDA. Our presentation of Adjusted EBITDA should not be construed as a basis to infer that our future results will be unaffected by extraordinary, unusual, or nonrecurring items. Reconciliation of GAAP to Non-GAAP Financial Information The following table reconciles Net income to Adjusted net income for the second quarters and year-to-date periods ended June 30, 2025 and 2024 and Adjusted net income per diluted share for the second quarters and year-to-date periods ended June 30, 2025 and 2024 (amounts in thousands, except per share amounts): (a) Depreciation and amortization refers to addback of purchase price adjustments to tangible and intangible assets resulting from the Business Combination. The following table reconciles Net income to Adjusted EBITDA for the second quarters and year-to-date periods ended June 30, 2025 and 2024 (amounts in thousands): (b) Business combination costs refers to legal and advisory fees incurred by OneSpaWorld in connection with the Business Combination, including costs associated with the secondary offering and warrant conversion.
Business Wire
23-07-2025
- Business
- Business Wire
OneSpaWorld Announces Second Quarter Fiscal 2025 Financial Results on July 30, 2025
NEW YORK--(BUSINESS WIRE)--OneSpaWorld Holdings Limited, (NASDAQ: OSW), the pre-eminent global provider of health and wellness products and services on board cruise ships and in destination resorts around the world, announced today that it will release its Second Quarter Fiscal 2025 earnings on Wednesday, July 30 th before market open. The Company will conduct a conference call the same day at 10:00 am ET to discuss its quarterly results. What: OneSpaWorld Second Quarter Fiscal 2025 financial results conference call. When: Wednesday, July 30 th at 10:00 am ET. Webcast: A live webcast of the conference call can be accessed from the Investor Relations section of OneSpaWorld's website at Dial-in: To access the live conference call, please dial (877) 283-8977 (international dialers please dial (412) 542-4171) and use the passcode 10201395. Replay: An audio replay of the conference call can be accessed at (844) 512-2921 (international dialers (412) 317-6671), passcode 10201395. The conference call replay will be available approximately three hours after the call and remain in effect for one week. A replay of the webcast will be available for 90 days at About OneSpaWorld: Headquartered in Nassau, Bahamas, OneSpaWorld is one of the largest health and wellness services companies in the world. OneSpaWorld's distinguished health and wellness centers offer guests a comprehensive suite of premium health, wellness, fitness and beauty services, treatments, and products, currently onboard 202 cruise ships and at 51 destination resorts around the world. OneSpaWorld holds the leading market position within the cruise industry segment of the international leisure market, which it has earned over six decades of exceptional service; expansive global recruitment, training and logistics platforms; irreplicable operating infrastructure; powerful team; and continual service and product innovation, delivering tens of millions of extraordinary guest experiences and outstanding service to its cruise line and destination resort partners.
Business Wire
23-04-2025
- Business
- Business Wire
OneSpaWorld Announces First Quarter Fiscal 2025 Financial Results on April 30, 2025
NEW YORK--(BUSINESS WIRE)--OneSpaWorld Holdings Limited, (NASDAQ: OSW), the pre-eminent global provider of health and wellness products and services on board cruise ships and in destination resorts around the world, announced today that it will release its First Quarter Fiscal 2025 earnings on Wednesday, April 30 th before market open. The Company will conduct a conference call the same day at 10:00 am ET to discuss its quarterly results. What: OneSpaWorld First Quarter Fiscal 2025 financial results conference call. When: Wednesday, April 30 th at 10:00 am ET. Webcast: A live webcast of the conference call can be accessed from the Investor Relations section of OneSpaWorld's website at Dial-in: To access the live conference call, please dial (877) 283-8977 (international dialers please dial (412) 542-4171) and use the passcode 10198331. Replay: An audio replay of the conference call can be accessed at (844) 512-2921 (international dialers (412) 317-6671), passcode 10198331. The conference call replay will be available approximately three hours after the call and remain in effect for one week. A replay of the webcast will be available for 90 days at About OneSpaWorld: Headquartered in Nassau, Bahamas, OneSpaWorld is one of the largest health and wellness services companies in the world. OneSpaWorld's distinguished health and wellness centers offer guests a comprehensive suite of premium health, wellness, fitness and beauty services, treatments, and products, currently onboard 199 cruise ships and at 50 destination resorts around the world. OneSpaWorld holds the leading market position within the cruise industry segment of the international leisure market, which it has earned over six decades of exceptional service; expansive global recruitment, training and logistics platforms; irreplicable operating infrastructure; powerful team; and continual service and product innovation, delivering tens of millions of extraordinary guest experiences and outstanding service to its cruise line and destination resort partners.
Yahoo
22-04-2025
- Business
- Yahoo
OneSpaWorld Holdings Ltd. (OSW) Traded Lower in Q1
Ariel Investments, an investment management company, released its 'Ariel Appreciation Fund' first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter, investors fled to shelter as hopes for another year of U.S. outperformance, driven by economic momentum and the new administration's pro-business approach swiftly gave way to tariff fears and policy uncertainty, causing most of the major U.S. indices to close the quarter in the red. Against this backdrop, the fund returned -6.94% in the first quarter underperforming the Russell Midcap Value Index's -2.11% returns, and the Russell Midcap Index's -3.40% returns. In addition, please check the fund's top five holdings to know its best picks in 2025. In its first-quarter 2025 investor letter, Ariel Appreciation Fund highlighted stocks such as OneSpaWorld Holdings Limited (NASDAQ:OSW). OneSpaWorld Holdings Limited (NASDAQ:OSW) operates health and wellness centers onboard cruise ships and at destination resorts. The one-month return of OneSpaWorld Holdings Limited (NASDAQ:OSW) was -9.21%, and its shares gained 32.50% of their value over the last 52 weeks. On February 28, 2025, OneSpaWorld Holdings Limited (NASDAQ:OSW) stock closed at $16.47 per share with a market capitalization of $1.773 billion. Ariel Appreciation Fund stated the following regarding OneSpaWorld Holdings Limited (NASDAQ:OSW) in its Q1 2025 investor letter: "We initiated two positions in the leisure and travel industry, cruise ship operator, Norwegian Cruise Line Holdings Ltd. (NCLH) and global health and wellness provider onboard cruise ships and destination resorts, OneSpaWorld Holdings Limited (NASDAQ:OSW). Shares of both companies traded meaningfully lower on investor concerns around a deterioration in consumer sentiment and related softening in discretionary spend due to the economic slowdown. A potential new tax on cruise lines also weighed on NCLH's shares. In our view, these risks are currently priced in and present an attractive entry point. Notably, consumer demand and booking trends remain strong and both companies continue to deliver robust earnings growth. OSW's management continues to work to strengthen its balance sheet by paying down debt and returning capital to shareholders through buybacks and dividends." A well-equipped wellness center with classes and health services. OneSpaWorld Holdings Limited (NASDAQ:OSW) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 29 hedge fund portfolios held OneSpaWorld Holdings Limited (NASDAQ:OSW) at the end of the fourth quarter compared to 25 in the third quarter. OneSpaWorld Holdings Limited (NASDAQ:OSW) fourth quarter revenue increased 11% to $217.2 million compared to $194.8 million in Q4 2023. While we acknowledge the potential of OneSpaWorld Holdings Limited (NASDAQ:OSW) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock. In another article, we covered OneSpaWorld Holdings Limited (NASDAQ:OSW) and shared the list of best cruise stocks to buy according to hedge funds. OneSpaWorld Holdings Limited (NASDAQ:OSW) appreciated during the last quarter, boosting the Ariel Small Cap Value Strategy's performance. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
09-04-2025
- Business
- Yahoo
Why OneSpaWorld Holdings (OSW) Is Among the Best Cruise Stocks to Buy According to Hedge Funds
We recently published a list of . In this article, we are going to take a look at where OneSpaWorld Holdings Limited (NASDAQ:OSW) stands against other best cruise stocks to buy according to hedge funds. The cruise industry is on the path to recovery after plunging during the Covid-19 pandemic. The Cruise Lines International Association (CLIA) reported that around 35.7 million passengers were anticipated to set sail in 2024, reflecting a 6% growth over 2019. JP Morgan reported that major cruise lines globally benefitted from a successful 2024 wave season, which falls between January and March. In fact, JP Morgan iterated that the annual number of cruise passengers is also expected to surpass pre-COVID levels from 2023 to 2027. Matt Boss, Head of Leisure and Retailing at J.P. Morgan, said the following about the optimistic cruise industry outlook: 'An important point underscoring our more constructive view of the cruise industry post-pandemic is market share gains from the larger $1.9T global vacation market and accelerated new-to-cruise customer acquisition. Demand remains robust, with not a single historical lead indicator in the business, notably booking curve and onboard spend, signaling any softening.' In the past, baby boomers were at the center of the cruise industry's core consumer base. This trend is, however, changing with the rise of young travelers. According to CLIA, 73% of millennials and Gen X travelers said that they would consider a cruise vacation. According to Grand View Research, the global cruise market had a size of $7.67 billion in 2022. It is anticipated to grow at a compound annual growth rate (CAGR) of 11.5% between 2023 and 2030, primarily due to the rising popularity of cruise vacations among younger demographics. The more affordable nature of these vacations is another significant factor attributed to this growth. READ ALSO: and . On March 27, investment firm Exane BNP Paribas' analysts expressed bullish sentiments on the cruise industry's long-term outlook, stating that they anticipate cruise net yields to rise steadily in 2025 and 2026. The positive outlook was attributed to strong demand and new revenue drivers for the industry, such as private islands. Exclusive destinations such as private islands allow cruise lines the room to upsell guests on experiences at around $125 per day per person. This is a tailwind for cruise companies devising innovative ways to generate more value for cruisers and raise profits. The firm also highlighted favorable demographics to support its bullish stance, along with the potential to gain market share in the global vacation market worth around $2 trillion. Exane BNP Paribas opined that cruise lines will likely benefit from rising demand and limited supply growth, which are expected to strengthen pricing power. In addition, digital innovations are helping cruise companies grow onboard spending and enhance customer experiences. According to the firm, these factors are likely to lead to more earnings growth for the industry. We sifted through stock screeners, financial media reports, and ETFs to compile a list of 20 cruise stocks and chose the top 12 most popular among hedge funds as of Q4 2024. The list is ordered in ascending order of hedge fund sentiment. We sourced the hedge fund sentiment data from Insider Monkey's database. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). A well-equipped wellness center with classes and health services. Number of Hedge Fund Holders: 29 OneSpaWorld Holdings Limited (NASDAQ:OSW) operates in around 195 cruise ships at approximately 50 destination resorts around the globe. Its services include self-service fitness facilities, salons, skin care, traditional body services, pain management, comprehensive body composition analyses, detoxifying programs, advanced medi-spa services, and more. The company's brand portfolio encompasses ELEMIS, Kerastase, BOTOX Cosmetic, Dysport, Restylane, Perlane, Thermage, CoolSculpting, truSculpt 3D, and truSculpt iD, and others. OneSpaWorld Holdings Limited (NASDAQ:OSW) operates on several cruise lines, including Costa Cruises, Norwegian Cruise Line, Regent Seven Seas Cruises, Seabourn Cruise Line, and more. Fiscal 2024 marked the second consecutive year of record performance by OneSpaWorld Holdings Limited (NASDAQ:OSW). The company's positive operations are attributed to its strong financial position, innovation across its business portfolio, and global operations. The company also reported strong fiscal Q4 2024 results, with total revenues growing 11% to $217.2 million compared to $194.8 million in fiscal Q4 2023. Total revenues for 2024 increased 13% to a record $895 million compared to $794 million in fiscal year 2023. Similarly, income from operations rose 37% to $17.2 million compared to $12.6 million in fiscal Q4 2023. OneSpaWorld Holdings Limited (NASDAQ:OSW) takes the ninth spot on our list of the best cruise stocks to invest in. Ariel Small Cap Value Strategy was also bullish on OneSpaWorld Holdings Limited (NASDAQ:OSW) and said the following in its Q4 2024 investor : 'Provider of wellness services onboard cruise ships and destination resorts, OneSpaWorld Holdings Limited (NASDAQ:OSW), also traded higher as strong consumer trends drove another significant earnings beat and subsequent raise in full year guidance. Meanwhile, management strengthened the balance sheet by paying down and restructuring its expensive first lien term loan as well as ramped up capital returns to shareholders through buybacks and dividends.' Overall, OSW ranks 9th on our list of best cruise stocks to buy according to hedge funds. While we acknowledge the potential for OSW as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than OSW but trades at less than 5 times its earnings, check out our report about the . READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
