XWELL, Inc. opened its first wellness location inside New York City’s Pennsylvania Station on December 18, 2025, adding a high‑traffic urban venue to its portfolio of airport‑based centers. The new site, situated in the transit hub that serves more than 600,000 daily commuters, offers a curated menu of quick, on‑the‑go treatments—including the Zero Gravity Chair massage—and a retail selection of wellness products that can be purchased without an appointment.
The opening is part of XWELL’s broader strategy to diversify beyond airports, a move that could broaden its customer base to include commuters, local residents, and tourists. CEO Ezra Ernst said the Penn Station location “embeds accessible self‑care into one of the busiest places in America—bringing calm, relief and recharge to everyday routines.” The company’s quarterly results for Q3 2025 show revenue of $7.3 million, down 13% year‑over‑year from $8.4 million in Q3 2024, and a net loss of $1.47 million versus $4.75 million in the prior year. The decline is largely attributed to lower CDC contract revenue and reduced surge billing in the XpresTest and XpresSpa segments.
Segment analysis reveals that XpresSpa generated $5.1 million of the $7.3 million in Q3 2025, while XpresCheck contributed $1.7 million and the Naples Wax Center $0.5 million. The mix shift toward XpresSpa, which has higher margins, partially offsets the revenue decline in other segments. Gross profit fell from $2.1 million in Q3 2024 to $1.5 million in Q3 2025, reflecting margin pressure from increased operating costs and a heavier mix of lower‑margin services.
Management has highlighted ongoing financial headwinds, noting that the company faces “substantial doubt about its ability to continue as a going concern” due to recurring losses and insufficient liquidity. In response, XWELL is pursuing cost‑control measures, capital‑spending restraint, and additional financing to improve liquidity and return to profitability. The Penn Station launch is intended to generate incremental revenue and strengthen brand exposure, but it will not immediately offset the company’s broader financial challenges.
The expansion into Penn Station signals XWELL’s commitment to capturing high‑traffic urban markets, but the company’s financial performance remains a concern. Investors will likely view the new location as a positive strategic move, while the continued losses and liquidity issues underscore the need for disciplined execution and potential capital raises in the near term.
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