NASDAQ$XWEL

XpresSpa Group Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported results for the third quarter of 2022, showing a shift in direction as a leading authority in wellness for ‘People on the Go’ after rebranding as XWELL.

XWELL, Inc. reported a total revenue of $10.7 million for the third quarter of 2022, compared to $26.8 million in the corresponding period in 2021. The company experienced a net loss attributable to common shareholders of $7.2 million, compared to a net income of $5.6 million in the prior year third quarter. Despite the losses, the company is focused on strategic objectives, international expansion, retail strategy implementation, and cost reduction to achieve profitability in 2023.

  • Total revenue for Q3 2022 was $10.7 million, a decrease from $26.8 million in Q3 2021.
  • Net loss attributable to common shareholders was $7.2 million in Q3 2022, compared to net income of $5.6 million in Q3 2021.
  • The company closed five unprofitable XpresCheck locations during the third quarter and plans to close another seven in the fourth quarter.
  • XWELL's partnership with Ginkgo Bioworks secured a new contract worth approximately $16 million, with a potential to reach $61 million based on CDC program options.

Headline financials

Total Revenue

$10.7M

Previous: $26.8M-59.9%
EPS (adj)

-$1.60

Previous: $0.05-3300.0%
Capital Expenditures

-$5.8M

Previous: -$2.65M-118.8%
Free Cash Flow

-$13M

Previous: $2.95M-540.3%
Net Income

-$7.18M

Previous: $5.6M-228.3%
Operating Income

-$7.65M

Previous: $7.06M-208.5%
Gross Profit

$1.4M

Previous: $13.1M-89.3%
Cash & Equivalents

$49.4M

Previous: $109M-54.7%
Total Assets

$85M

Previous: $129M-34.3%
Stock-Based Comp

$483K

Previous: $790K-38.9%

Revenue & EPS history

XpresSpa · Revenue · Quarterly

$10.7M

Q3 2022-59.9%vs Q3 2021
Beat estimate in 3 of 10 quarters(30%)
ActualEstimate

Revenue by segment

XpresSpa · $6.64M total across 3 segments · Q1 2026

  • XpresSpa
    $4.2M
  • XpresTest
    $1.92M
  • Naples Wax
    $524K

Forward guidance

The Company believes it is entering 2023 as a leaner business with a path to returned profitability and is well positioned to achieve its growth goals.

Tailwinds

  • Expanding internationally with new XpresSpa locations in Istanbul.
  • Implementing a new retail strategy to drive more foot traffic into airport locations.
  • Adding new technologies and trends, including tech-forward equipment.
  • Offering diagnostic testing, hydration therapy, IV drips, and vitamin injections at Treat locations.
  • Continuing biosurveillance partnership with Ginkgo Bioworks and the CDC.

Headwinds

  • Decreased testing volumes at XpresCheck locations due to relaxed testing requirements.
  • Closing unprofitable XpresCheck locations to optimize performance.
  • Q3 2022 total revenue decreased compared to Q3 2021.
  • Q3 2022 net loss attributable to common shareholders, compared to net income in Q3 2021.
  • Adjusted EBITDA was negative during the third quarter 2022, compared to positive Adjusted EBITDA in the prior year third quarter.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2022

Historical avgQ3 2022

+1.1%

Avg return

Earnings day

-2.3%

Avg return

5 days after

-4.5%

Avg return

30 days after

43%

16 / 37 earnings

Positive

+24.4%

Q4 2019

Best reaction

-11.1%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026
Q3 2025+0.0%-8.4%-9.6%
Q2 2025-5.8%-8.3%-8.3%
Q1 2025+1.2%+12.8%+9.3%
Q4 2024+0.0%+0.0%+15.4%
Q3 2024-1.2%-10.6%-24.1%
Q2 2024+3.7%+0.5%-14.8%
Q1 2024+3.4%-8.4%+41.6%
Q4 2023+0.0%+0.7%+32.1%
Q3 2023+6.2%+35.4%+31.1%
Q2 2023-4.2%-4.2%-25.0%
Q1 2023+0.0%+4.2%+4.2%
Q4 2022+6.3%-9.4%-21.9%
Q3 2022+0.0%-12.3%-10.5%
Q2 2022-6.5%-5.4%+9.7%
Q1 2022-1.1%-18.7%-22.0%
Q4 2021+8.2%+52.0%+11.2%
Q3 2021+11.7%+13.1%+25.5%
Q2 2021-6.9%-13.1%-2.9%
Q4 2020+6.4%-3.5%-20.8%
Q3 2020-1.1%-13.4%-22.5%
Q2 2020-6.5%-4.2%-42.9%
Q1 2020-7.5%-5.5%+6.5%
Q4 2019+24.4%+26.8%+17.1%
Q3 2019+2.0%-5.9%-41.6%
Q2 2019+0.0%+21.2%+31.9%
Q1 2019+7.8%-9.0%-40.0%
Q4 2018+0.3%-12.0%-22.7%
Q3 2018+0.0%+0.0%+11.1%
Q2 2018+0.0%-25.0%-20.0%
Q1 2018-4.8%-31.7%-20.6%
Q4 2017-11.1%-24.7%-17.3%
Q3 2017-0.8%-4.0%-6.5%
Q2 2017+11.5%+4.4%+9.7%
Q1 2017+4.9%+1.9%+5.6%
Q4 2016+0.9%-9.7%-20.8%
Q3 2016+0.8%-8.0%-15.6%
Q2 2016-1.9%-1.0%+1.9%
Q1 2016
Q4 2015
Q3 2015
Q2 2015
Q1 2015
Q4 2014
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q4 2011
Q3 2011

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