XWELL, Inc. Reports $29.2 Million Revenue for Fiscal Year 2025, Faces Challenges and Plans Expansion

XWELL, Inc. reported a total revenue of $29.2 million for the fiscal year ending December 31, 2025, a decrease of 14% from $33.9 million in the previous year. This decline was primarily attributed to reduced testing volumes in the XpresTest segment, which was partially offset by modest growth in service revenues from newly opened Naples Wax locations. The company's total cost of sales also decreased by 13% to $21.7 million, reflecting the closure of underperforming locations and the Treat business. Despite these reductions, XWELL recorded an impairment charge of $3.1 million, primarily related to long-lived assets and goodwill associated with the Naples Wax business.

In terms of strategic developments, XWELL underwent a significant rebranding in October 2022, changing its name from XpresSpa Group, Inc. to align with its focus on wellness services. The company also acquired Naples Wax Center in September 2023 for $1.6 million, aiming to expand its retail footprint beyond airport locations. As of December 31, 2025, XWELL operated 35 wellness centers across 31 locations in the U.S., Netherlands, Turkey, and the UAE, with plans for further geographic expansion and integration of services across its brands.

Operationally, XWELL's employee count stood at approximately 280, comprising 175 full-time and 105 part-time employees. The company has been focusing on optimizing its airport portfolio while pursuing off-airport growth strategies, particularly in the med spa sector. The company reported a significant increase in customer engagement metrics, particularly in its Naples Wax segment, which is expected to contribute positively to future revenues.

The company faced challenges related to its financial condition, with a working capital deficit of $6.9 million as of December 31, 2025. However, a private placement of Series H Convertible Preferred Stock in February 2026 is expected to raise approximately $31.3 million, which management believes will alleviate concerns about its ability to continue as a going concern. This financing is anticipated to provide sufficient liquidity for operations over the next twelve months, allowing XWELL to focus on its growth strategies and operational improvements.

Looking ahead, XWELL aims to capitalize on the growing consumer interest in health and wellness, with plans to expand its service offerings and integrate its brands more effectively. The company is also exploring international expansion opportunities and enhancing its membership programs to foster customer loyalty. Despite the challenges faced in the past year, XWELL's management remains optimistic about the company's future prospects, contingent on successful execution of its strategic initiatives and continued recovery in the travel sector.