XWELL, Inc.

What they do

XWELL operates three reportable segments: XpresSpa (airport spa and wellness retail), XpresTest (biosecurity and traveler genomic surveillance), and Naples Wax Center (waxing services). As of March 31, 2026, it had 16 domestic XpresSpa locations and nine international locations across Dubai, Abu Dhabi, Amsterdam, and Istanbul. The company also runs a CDC traveler-based genomic surveillance program through XpresTest and has expanded off-airport with locations in Penn Station and Florida.

Revenue drivers

• XpresSpa — Global airport spa services and retail products; 25 total locations as of March 31, 2026.
• XpresTest (biosecurity) — CDC Traveler-based Genomic Surveillance program, with a three-year contract valued at up to $24.8 million (total base value $22.2 million).
• Naples Wax Center — Off-airport waxing services; part of the company's diversification beyond airports.

Recent performance

For FY2025, revenue was $29.2 million, down from $33.9 million in 2024, with net loss of $17.0 million (diluted EPS -$5.08). Quarterly revenue has declined sequentially from $7.7M (June 2025) to $6.6M (March 2026). Operating expenses decreased ~10% year-over-year, cost of sales down ~13%, and G&A down ~20%. Cash at March 31, 2026 was $16.8M; shareholder equity was only $389,000.

Strategy

XWELL is expanding beyond airports into off-airport wellness locations, including Penn Station (opened December 2025) and Florida locations (Brandon and Waterford Lakes, opened Q3 2025). In February 2026, it partnered with PieQ on a U.S. biosecurity forecasting platform and appointed a former CDC senior advisor to support international biosecurity expansion. A $31.3M private placement with American Ventures closed in February 2026, providing liquidity for growth.

Risks

• Revenue decline — Revenue fell from $73.7M in 2021 to $29.2M in 2025, with continued quarter-over-quarter declines into 2026.
• Thin equity position — Shareholder equity was only $389,000 as of March 31, 2026, leaving little cushion against further losses.
• Listing compliance — The company received a delisting notice or listing-rule failure in December 2025, indicating potential Nasdaq non-compliance.
• Dependence on government contracts — XpresTest revenue relies heavily on a CDC contract that has been renewed multiple times but could be reduced or terminated.

Outlook

Management continues to execute strategic priorities of expanding outside airports, diversifying access points, and elevating brand relevance. The $31.3M private placement is expected to fund growth and international biosecurity initiatives. The company believes it is well positioned to create long-term value.