XWELL, Inc. Reports Q2 2026 Financial Results with Revenue Decline and Improved Gross Profit

XWELL, Inc. reported its financial results for the second quarter of 2026, revealing a total revenue of $7.145 million, a decrease of 7% from $7.689 million in the same period last year. For the first half of 2026, revenue totaled $13.784 million, down 6% from $14.712 million in the prior year. The decline in revenue was primarily attributed to the cessation of operations at HyperPointe as of December 31, 2025, and a slight decrease in revenue from the Naples Wax Center segment. Despite the revenue drop, the company achieved a gross profit of $2.948 million for the quarter, compared to $1.775 million in the previous year, reflecting a gross margin improvement.

The company’s operating loss for the second quarter was $2.104 million, an improvement from a loss of $2.692 million in the same quarter of 2025. For the first half of 2026, the operating loss widened to $7.518 million from $5.850 million in the prior year. The increase in general and administrative expenses, which rose to $4.650 million from $4.280 million year-over-year, was a significant factor in the operating loss. The company also reported a net loss attributable to common stockholders of $2.240 million for the second quarter, translating to a loss per share of $0.26, compared to a loss of $3.041 million and $0.56 per share in the same 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 $28.269 million. These funds were utilized to repurchase Series G Preferred Stock and certain convertible notes, as part of a strategy to simplify its capital structure. The company’s liquidity position improved significantly, with cash and cash equivalents increasing to $11.778 million as of June 30, 2026, compared to $2.617 million at the end of 2025. The total current liabilities also decreased to $6.668 million from $12.892 million, resulting in a working capital surplus of $8.471 million.

Operationally, XWELL reported a total of 16 domestic and 9 international XpresSpa locations as of June 30, 2026. The company continues to focus on its wellness services, with XpresTest transitioning from COVID-19 testing to bio-surveillance programs in collaboration with the CDC. The Naples Wax Center segment remains a key area for growth, with ongoing efforts to enhance customer acquisition and retention. The company is also exploring opportunities to expand its wellness offerings.

Looking ahead, XWELL is in the process of divesting its airport-based operations, having entered into a Securities Purchase Agreement to sell its ownership interests in XpresSpa and XpresTest for approximately $13 million. This strategic shift aims to concentrate on non-airport wellness activities, particularly the Naples Wax Center. The transaction is expected to close in the fourth quarter of 2026, subject to shareholder approval. The company believes it has sufficient liquidity to fund its operations and meet obligations for at least the next twelve months, while continuing to pursue strategic partnerships to enhance long-term profitability.