OneSpaWorld Holdings Limited (OSW) saw its stock price surge 5.03% in pre-market trading on Thursday, following the release of its impressive first-quarter 2025 earnings report. The company, which specializes in health and wellness services for the global cruise industry, demonstrated resilience and growth despite some challenges.

The earnings report, released on Wednesday evening, revealed several positive developments that likely fueled investor optimism. OneSpaWorld reported a 4% increase in total revenues, reaching $219.6 million compared to the same quarter last year. Additionally, the company saw a 5% rise in adjusted EBITDA to $26.6 million, even after accounting for non-recurring severance expenses.

Investors were particularly encouraged by OneSpaWorld's expansion efforts and strategic initiatives. The company announced new agreements with long-standing partners, including the addition of a health and wellness center on Norwegian Cruise Line's first Prima Plus class ship. Furthermore, OSW's focus on high-value services such as Medi-spa, IV therapy, and acupuncture has paid off, with these treatments experiencing a 20% growth. The board's approval of a new $75 million share repurchase program also signals confidence in the company's financial position and commitment to shareholder value.

While the report did highlight some challenges, such as a slight decrease in income from operations and a decrease in net income due to changes in warrant liabilities, these factors seem to have been outweighed by the overall positive performance. The company's ability to grow revenue and expand its operations in the face of these headwinds appears to have resonated well with investors, as reflected in the stock's pre-market jump.