XWELL, Inc. (formerly XpresSpa Group, Inc.) reported its financial results for the third quarter and the nine months ended September 30, 2024, showing notable improvements in revenue and reductions in operating losses compared to the previous fiscal period.
For the three months ended September 30, 2024, XWELL generated total revenue of $8,422,000, a 13% increase from $7,468,000 in the same period of 2023. The nine-month revenue also rose to $26,430,000 from $22,706,000, reflecting a 16% increase. This growth was primarily attributed to the XpresTest contract with the CDC and the recent acquisition of Naples Wax Center, which added new revenue streams.
Gross profit for the third quarter was $2,053,000, significantly up from $1,091,000 year-over-year. The company reported an operating loss of $(4,769,000) for the third quarter, an improvement from $(12,089,000) in the prior year. For the nine months, the operating loss decreased to $(9,040,000) from $(23,101,000). The net loss for the third quarter was $(4,705,000), down from $(11,591,000) in 2023, while the nine-month net loss improved to $(8,854,000) from $(23,099,000).
XWELL's total assets decreased to $33,785,000 as of September 30, 2024, from $38,993,000 at the end of 2023. Current assets also fell to $19,513,000 from $26,566,000, with cash and cash equivalents declining to $4,365,000 from $8,437,000. Total equity attributable to XWELL decreased to $6,304,000 from $13,002,000.
Strategically, XWELL has focused on streamlining operations and reducing overhead costs to enhance profitability. The company has consolidated its HyperPointe segment into XpresTest and closed all XpresCheck Wellness locations due to declining testing volumes. Additionally, XWELL plans to open its first XWELL Studios location in Jacksonville, Florida, in 2025, aiming to expand its wellness service offerings.
The acquisition of Naples Wax Center on September 12, 2023, for $1,624,000 is part of XWELL's strategy to broaden its retail presence beyond airport clients. The company has also executed a 1-for-20 reverse stock split and completed a registered direct offering in August 2024, raising approximately $1.4 million.
Overall, XWELL's financial performance indicates a positive trend in revenue growth and a significant reduction in losses, supported by strategic acquisitions and operational efficiencies.
About XWELL, Inc.
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