XWELL, Inc. Reports $6.638 Million Revenue and $11.202 Million Net Loss in Q1 2026

XWELL, Inc. reported a net revenue of $6.638 million for the first quarter of 2026, a decrease of 5.5% from $7.023 million in the same period of the previous year. The decline in revenue was primarily attributed to the cessation of operations in the HyperPointe segment as of December 31, 2025, and a reduction in additional revenues from XpresTest services, which had previously benefited from surge billing. The company's gross profit for the quarter was $2.353 million, up from $1.319 million year-over-year, reflecting a decrease in total cost of sales, which fell by 25% to $4.285 million.

The company experienced a significant increase in general and administrative expenses, which rose by 76% to $7.595 million, largely due to higher franchise tax expenses, stock-based compensation, and consulting fees. This contributed to an operating loss of $5.414 million, compared to a loss of $3.158 million in the prior year. The net loss attributable to XWELL, Inc. was $11.202 million, or $1.51 per share, compared to a net loss of $4.719 million, or $1.00 per share, in the first quarter of 2025.

In terms of strategic developments, XWELL completed a private placement of Series H Convertible Preferred Stock in February 2026, generating net proceeds of approximately $28.269 million. These funds were utilized to repurchase Series G Preferred Stock and certain convertible notes, as part of a strategy to simplify the capital structure and reduce future financing obligations. The company also eliminated the Series G Preferred Stock designation, which had previously been a part of its capital structure.

Operationally, XWELL reported a total of 16 domestic and 9 international XpresSpa locations as of March 31, 2026. The company continues to focus on expanding its wellness services beyond airport locations, with plans to enhance its retail strategy and product offerings. The company’s liquidity position improved significantly, with cash and cash equivalents increasing to $16.800 million from $2.617 million at the end of 2025, resulting in a working capital surplus of $11.358 million.

Looking ahead, XWELL management expressed confidence in the company's ability to fund operations and meet obligations for at least the next twelve months, despite ongoing challenges in the market. The company is committed to improving its operational efficiency and profitability through strategic partnerships and cost management initiatives. However, the management also acknowledged the potential impact of geopolitical events and market volatility on future performance.