🧾 What This Document Is

This is a press release filed with the SEC as an 8-K report. Think of it as a company's official news announcement that they must share with investors. It covers XWELL's financial results for the full year 2025 and highlights important recent business moves.

🏢 What The Company Does

👉 In simple terms, XWELL runs wellness spas, health testing centers, and waxing studios, mostly for travelers. Their main brands are XpresSpa (in airports), XpresCheck (biosecurity/health screening), and Naples Wax Center. They are trying to grow beyond airports into regular shopping areas.

🚀 Key Moves & Strategy

The company is actively making changes to grow and stay funded.

• Expanding Beyond Airports: They opened new "off-airport" wellness centers, like one in NYC's Penn Station and two in Florida. This is a big strategic shift to reach everyday customers, not just travelers.
• Strategic Partnership: They teamed up with an AI company, PieQ, to build a disease-tracking platform for the CDC. This builds on their existing biosecurity work.
• Raising Cash: In February 2026, they raised about $31.3 million from a private investment. They plan to use this money to pay off some debt, buy back certain stocks, and for general operations.
• New Expert Advisor: They hired Dr. Cindy Friedman, the former head of the CDC's airport surveillance program, as a senior advisor to help grow their biosecurity business internationally.

💰 Financial Highlights (Fiscal 2025)

Here’s how the company performed financially for the year ending December 31, 2025.

• Revenue: $29.2 million total.
  • XpresSpa (spas): $18.6 million
  • XpresCheck (biosecurity): $8.3 million
  • Naples Wax Center: $2.3 million
• Profitability: The company is still losing money, but some costs are improving.
  • Operating Loss: $15.7 million (better than last year's $16.7 million loss).
  • Net Loss: $17.0 million (slightly worse than last year's $16.9 million loss).
• Cost Cutting: They did a good job reducing expenses.
  • Total Operating Expenses fell ~10%.
  • Cost of Sales fell ~13%.
  • General/Admin costs fell ~20%.

📦 Financial Position & Liquidity

👉 This is the most critical part. At the end of 2025, the company had only $2.6 million in cash and no long-term debt. That's a very low cash cushion for a company losing over $15 million a year.

However, the $31.3 million they raised in February 2026 is a game-changer. It gives them the financial runway to execute their strategy without immediate funding worries. This fresh cash completely changes their short-term survival outlook.

📈 What This Signals

This report shows a company in transition. XWELL is trying to pivot from being an airport-dependent spa business to a broader "wellness and biosecurity" company. The new store openings, AI partnership, and high-profile hire signal serious ambition. The massive cash raise shows investors are willing to bet on this new direction, even though the core business is still unprofitable.

⚖️ Big Picture: Strengths & Risks

• 👍 Strengths:
  • Successfully cutting costs and improving operational efficiency.
  • Securing a large cash infusion to fund growth.
  • Diversifying revenue streams (off-airport retail, biosecurity).
  • High-profile CDC partnership and advisor add credibility.
• ⚠️ Risks:
  • The core business has consistently been unprofitable.
  • Expansion into new retail markets is unproven and capital-intensive.
  • Success depends heavily on executing a major strategic pivot.
  • The biosecurity revenue is largely dependent on government contracts.

🧠 The Analogy

XWELL is like an airport coffee shop that’s trying to reinvent itself as a trendy, health-focused café chain for everyone. They’ve just taken out a big loan (the $31M raise) to open new locations in train stations and hire a famous chef (Dr. Friedman), all while figuring out how to stop losing money on their original airport carts.

📇 Key Contacts & People

• Media Contact: Heather Tidwell, MWW | [email protected]

🧩 Final Takeaway

XWELL is using a big new cash injection to fuel an ambitious pivot away from airports and into broader wellness and biosecurity. While they are still losing money, they are cutting costs and making strategic bets that could define their future. The next 12-18 months will be critical to see if this turnaround works.