XWELL, Inc. Reports 13% Revenue Decline in Q3 2025 Amid Restructuring Efforts

XWELL, Inc. reported a decline in financial performance for the third quarter of 2025, with total revenue decreasing to $7.3 million from $8.4 million in the same period last year, marking a 13% drop. For the nine months ending September 30, 2025, revenue also fell by 17% to $22.1 million compared to $26.4 million in 2024. The decrease in revenue was primarily attributed to reduced contributions from the XpresTest segment, which previously benefited from additional CDC-related revenues in 2024. The company’s gross profit for the quarter was $1.5 million, down from $2.1 million a year earlier, while the net loss attributable to XWELL, Inc. was $724,000, compared to a loss of $4.8 million in the prior year.

In terms of operational changes, XWELL has been actively restructuring its business model. The company has streamlined operations and reduced overhead costs, resulting in a significant decrease in general and administrative expenses, which fell to $1.6 million from $6.4 million year-over-year. This reduction was largely due to decreased accounting, legal, and public company costs, as well as the recognition of an employee retention credit. The company also reported a notable impairment of long-lived assets amounting to $122,000 during the quarter, reflecting ongoing adjustments to its asset base.

XWELL's strategic initiatives included the acquisition of Naples Wax Center in September 2023, aimed at expanding its wellness services beyond airport locations. As of September 30, 2025, the company operated 17 domestic XpresSpa locations and 11 international locations, with plans for further geographic expansion. The company is also focusing on enhancing its product offerings and integrating services across its brands to improve customer engagement and market share.

Despite these efforts, XWELL faces significant challenges, including a working capital surplus of only $758,000 as of September 30, 2025, down from $6.1 million at the end of 2024. The company has expressed substantial doubt about its ability to continue as a going concern, citing recurring losses and insufficient liquidity to fund future operations. To address these issues, XWELL is exploring additional financing options and strategic partnerships to bolster its cash position and operational viability.

Looking ahead, XWELL is focused on improving its financial health and operational efficiency. The company has entered into a Securities Exchange Agreement to convert a portion of its Series G Convertible Preferred Stock into senior secured convertible notes, which are expected to provide additional liquidity. However, the company acknowledges that it must successfully raise capital to sustain its operations and achieve profitability in the coming years.