XWELL, Inc. Reports 20% Revenue Decline and Increased Net Loss in Q1 2025

XWELL, Inc. reported a decline in financial performance for the first quarter of 2025, with total revenue decreasing by 20% to $7.0 million, down from $8.7 million in the same period last year. The decrease was primarily attributed to lower revenues from the XpresTest segment, which has transitioned from COVID-19 testing to bio-surveillance programs, and a decline in XpresSpa revenues. The company’s gross profit also fell to $1.3 million from $2.7 million, resulting in an operating loss of $3.2 million compared to a loss of $2.4 million in the prior year. The net loss attributable to common stockholders increased to $5.3 million, or $1.00 per share, from a loss of $2.5 million, or $0.60 per share, in the first quarter of 2024.

In terms of operational changes, XWELL has made strategic moves to enhance its service offerings and expand its market presence. The company completed the acquisition of Naples Wax Center in September 2023, which is expected to broaden its wellness services beyond airport locations. Additionally, XWELL has been focusing on reducing operating expenses and improving cash flow, as indicated by a decrease in total current liabilities to $8.9 million from $9.2 million at the end of 2024. The company also reported a working capital surplus of $6.0 million as of March 31, 2025.

XWELL's customer engagement metrics reflect a mixed performance. The company operates 17 domestic XpresSpa locations and 11 international locations, including in major airports across the United States, the Netherlands, Turkey, and the United Arab Emirates. However, the company has faced challenges in maintaining customer counts and revenue streams, particularly in the XpresTest segment, which has seen a significant reduction in demand as the pandemic's impact has waned. The company is actively pursuing new revenue streams, such as its partnership with Priority Pass, which has begun to contribute to revenue.

The company’s financial outlook remains cautious, with management expressing substantial doubt about its ability to continue as a going concern due to recurring losses and insufficient liquidity. XWELL has initiated various strategic initiatives to improve its financial position, including cost reduction efforts and exploring additional financing options. The company is also under scrutiny from Nasdaq for not meeting the minimum bid price requirement, which could impact its listing status if not resolved by November 2025. As of the latest report, XWELL is focused on regaining compliance and enhancing its operational efficiency to stabilize its financial health moving forward.