XWELL, Inc. reported third‑quarter 2025 revenue of $7.3 million, a decline of 5% from the $7.7 million earned in the second quarter and 13% below the $8.4 million recorded in the same period a year earlier. The drop reflects a modest contraction in demand for the company’s core wellness services, while the overall mix of revenue remained largely unchanged across its three operating segments.
Operating loss for the quarter was $0.8 million, a dramatic improvement from the $4.8 million loss reported for the same quarter in 2024. The narrowing loss is largely attributable to disciplined cost management, including a $2.4 million reduction in annualized staffing expenses and the integration of the HyperPointe digital platform, which has helped streamline operations and reduce overhead.
The staffing cost reduction was achieved through a combination of workforce realignment and automation initiatives, while the HyperPointe integration consolidated back‑office functions and eliminated duplicate processes. Together, these measures have lowered operating expenses and positioned the company to better absorb future market volatility.
Revenue by segment was $5.1 million from XpresSpa, $1.7 million from XpresCheck, and $0.5 million from Naples Wax Center. The XpresSpa segment, which accounts for the majority of the company’s top line, saw a slight decline in volume, offset by a modest uptick in the XpresCheck and Naples Wax Center segments, which benefited from new off‑airport locations and expanded Priority Pass partnerships.
Cash and cash equivalents stood at $4.0 million at the end of September, with no long‑term debt on the balance sheet. The company also completed a Series G convertible preferred stock exchange, converting preferred shares into convertible notes to support future growth initiatives without increasing leverage.
CEO Ezra Ernst highlighted the company’s progress in diversifying access points and expanding its biosecurity program, noting that the new off‑airport wellness centers and the extended Traveler‑Based Genomic Surveillance Program with the CDC and Ginkgo Bioworks reinforce XWELL’s strategic focus on both revenue diversification and public health partnerships. The company’s continued emphasis on cost discipline and operational efficiency signals confidence in its ability to navigate a challenging market environment while pursuing long‑term growth.
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