Analogy 1: It's like a CVS MinuteClinic meets a nail salon, but exclusively located in airports.

Analogy 2: Imagine a Starbucks, but for quick health and relaxation services at the airport.

• Airport Spa Services: Provides services such as massage, nail care, and skin care for travelers at airport locations.
• Airport Wellness and Diagnostic Services: Offers screening and rapid testing for communicable diseases (e.g., COVID-19, influenza, RSV), seasonal flu vaccinations, and other medical diagnostic tests at airport wellness centers.
• Retail Products: Sells a variety of spa, travel, and general retail products to the traveling public.

XWELL (symbol: XWEL) sells primarily to individuals.

The company serves the following categories of customers:

• Air Travelers Seeking Spa and Relaxation Services: Individuals at airports who are looking for massage, nail care, skin care, and other spa services to relax or rejuvenate during their travels.
• Travelers and Airport Patrons Requiring Health Screening and Diagnostic Testing: Individuals utilizing the wellness centers for rapid testing for communicable diseases such as COVID-19, influenza, and RSV, as well as seasonal flu vaccinations and other medical diagnostic services.
• Consumers of Travel and Wellness Retail Products: Travelers purchasing various spa-related products, travel essentials, and health-focused retail items offered at XWELL's airport locations.

• Abbott Laboratories (ABT)

Ezra Ernst, Chief Executive Officer

Ezra Ernst joined XWELL as CEO in September 2024, after serving as CEO of XWELL brands XpresCheck and HyperPointe since January 2022 and March 2020, respectively. He brings over 20 years of executive experience in health, wellness, and biosecurity. Ernst previously held roles as CEO and Chief Commercial Officer at leading wellness firms, where he developed scalable solutions. Under his leadership, XpresCheck successfully increased revenue and reputational awareness, notably through the development of the Traveler-based Genomic Surveillance (TGS) program with the Centers for Disease Control and Prevention (CDC). He is passionate about purpose-driven leadership, focusing on advancing well-being and public safety.

Ian Brown, Chief Financial Officer

Ian Brown was appointed XWELL's CFO in January 2025, bringing over 25 years of senior finance experience. His background spans startups, media, and consumer products, with expertise in corporate finance, strategic planning, investor relations, systems transformation, financial operations, and back-office process improvement. Brown previously served as a Managing Director of the Strategic FP&A Group at Accordion from 2022 to 2025 and worked at FTI Consulting in their Technology Transformation group from 2014 to 2022. He was also the CFO of two early-stage companies and was a colleague of Ezra Ernst at Wolters Kluwer. Additionally, he has experience in media investment banking.

Patti Ward, Chief Operating Officer

Patti Ward is an accomplished leader with extensive expertise across the health and wellness sectors. As Chief Operating Officer, she is responsible for driving innovation at the intersection of public health, wellness, and emerging technology, overseeing the development of solutions that improve global health security and operational effectiveness.

Summer Bernard, Director of National Spa Operations

Summer Bernard possesses over seven years of experience in medical spa management. She has a strong background in tactical planning, product knowledge, and maintaining a focus on client satisfaction, having led both individual locations and national operations.

The key risks to XWELL (symbol: XWEL) primarily revolve around its financial viability, its inherent dependence on the travel industry, and broader market challenges including intense competition and corporate governance issues.

1. Financial Condition and Profitability: XWELL has consistently reported significant operating losses and net losses, including an operating loss of approximately $16.7 million and a net loss of approximately $16.9 million for 2024. Despite some revenue growth, the company's financial performance indicates ongoing challenges in achieving sustained profitability. XWELL also exhibits weak gross profit margins, recorded at 18.35% as of Q1 2024, which raises concerns about its ability to effectively manage costs. Furthermore, the company has shown reliance on external financing to support its operations and expansion plans, as evidenced by a $4 million private placement in January 2025. A substantial risk is the possibility of delisting from Nasdaq, which would severely impair its ability to raise additional capital, affect the trading of its securities, and negatively impact stock value and liquidity.
2. Reliance on Air Travel and Airport Operations: A significant portion of XWELL's business model is built around providing spa and wellness services at airports. This inherently links its performance to the health and stability of international and domestic air travel, as well as the amount of time passengers spend in airports post-security. Disruptions to air travel, such as pandemics, economic downturns, or heightened security concerns, can severely impact its primary revenue streams. While XWELL is making efforts to diversify by expanding into off-airport locations, such as the Naples Wax Center and an upcoming XpresSpa in Penn Station, it remains highly susceptible to factors affecting airport traffic and operations.
3. Market Volatility and Competition/Governance Issues: XWELL operates within the "personal services" industry, facing competition from various rivals. The company's stock has demonstrated high volatility, with a beta of 1.91, indicating it is 91% more volatile than the S&P 500. Historically, XWELL has experienced a sharp decline in shareholder value, with its stock plummeting approximately 99% between February 2016 and July 2024. Adding to these market-driven risks are ongoing corporate governance challenges, including litigation initiated by a significant shareholder alleging breaches of fiduciary duties and attempts to hinder alternative director nominations, which could introduce uncertainty regarding the company's leadership and strategic direction.

The company faces a clear emerging threat from the declining demand for its COVID-19 testing services. The XpresTest segment, which includes COVID-19 screening and testing, was a significant growth area for XWELL during the pandemic. As global travel restrictions ease and the acute phase of the pandemic recedes, the need for airport-based COVID-19 testing is diminishing rapidly, directly impacting a substantial revenue stream for this segment.

Additionally, the widespread availability and increasing adoption of convenient and affordable at-home diagnostic testing kits for various communicable diseases (including influenza, RSV, and COVID-19) represent another clear emerging threat. These at-home solutions offer travelers an alternative to visiting an airport wellness center for testing, potentially eroding the market for XWELL's XpresTest services by shifting consumer behavior towards self-testing.

Addressable Markets for XWELL's Main Products and Services

Spa Services (XpresSpa Segment)

• The global spa services market was estimated to be around USD 89.78 billion in 2023 and is projected to grow to approximately USD 199.19 billion by 2033, with a compound annual growth rate (CAGR) of 8.30% during that period. Other estimates place the global spa services market at USD 140.0 billion in 2025, projected to reach USD 363.1 billion by 2035 with a CAGR of 10.0%.
• The global wellness tourism market, which encompasses spa services, generated approximately USD 814.6 billion in revenue in 2022 and is expected to reach USD 2,096.3 billion by 2030, growing at a CAGR of 12.5%. Other reports indicate the global wellness tourism market size reached USD 1,004.5 billion in 2024 and is expected to reach USD 1,682.8 billion by 2033.
• In the United States, the spa industry generated a record USD 22.5 billion in revenue in 2024. The U.S. spa services industry held a dominant share of 83.2% within the North American market in 2025. North America accounted for 39.7% of the global wellness tourism market in 2022.

Wellness Centers and Medical Diagnostic Testing (XpresTest Segment)

• The global rapid diagnostics market was valued at USD 35.3 billion in 2024 and is expected to reach USD 68.9 billion by 2034, growing at a CAGR of 6.8% from 2025 to 2034. Another report estimated the global rapid diagnostics market size at USD 51.12 billion in 2025, predicted to reach approximately USD 280.03 billion by 2034, expanding at a CAGR of 20.80%.
• The global diagnostic rapid test kits market was valued at USD 24.52 billion in 2023 and is expected to reach USD 41.03 billion by 2031, growing at a CAGR of 6.64%.
• North America holds the largest market share in the global rapid diagnostics market, with approximately 34% of global testing adoption. The U.S. market for rapid diagnostics was valued at USD 16.8 billion in 2024.

Retail Products (Integrated Digital Platform and Relevant Retail Offering)

• The global travel retail market was valued at USD 79.93 billion in 2024 and is expected to reach USD 229.45 billion by 2032, growing at a CAGR of 14.09%. Other estimates for the global travel retail market include a valuation of USD 75.1 billion in 2024, projected to reach USD 128.9 billion by 2030.
• Airports and airline outlets represented a significant portion of the travel retail market, holding a 55.91% market share in 2024.

XWELL (NASDAQ: XWEL) is focusing on several key drivers to fuel its revenue growth over the next two to three years:

1. Expansion of XpresSpa Locations and Enhanced Operational Efficiencies: XWELL aims to accelerate growth both within and outside airport locations. The company has already seen significant revenue growth in its XpresSpa segment, including international airport spas, attributed to more effective staff deployment, new service introductions, and enhanced operational efficiencies.
2. Growth and Expansion of the XpresTest Segment and Biosecurity Opportunities: The XpresTest segment, which includes its biosurveillance partnership, is a considerable revenue contributor. XWELL has secured a three-year extension of its Traveler-based Genomic Surveillance Program with the Centers for Disease Control and Prevention (CDC). Furthermore, the company plans to explore international biosecurity opportunities, including large-scale deployments at major global events like the 2026 World Cup and the Olympics.
3. Acquisition and Organic Expansion of Off-Airport Wellness and Beauty Offerings: XWELL is actively expanding its footprint beyond airports through acquisitions and organic growth. The acquisition of Naples Wax Center has performed well, with plans for additional locations. The company also intends to acquire select medical spas to expand into the high-growth wellness and beauty sector and enhance its presence in urban areas beyond travel hubs.
4. Strategic Partnerships and Global Reach: XWELL is leveraging strategic partnerships to expand its offerings and reach. Notably, its partnership with Priority Pass has been expanded internationally to include select airports in the Middle East and Europe, introducing new revenue streams and providing broader access to XWELL's wellness services.

Share Repurchases

• In March 2026, XWELL utilized $9 million from a private placement to repurchase outstanding senior secured convertible notes, redeem all Series G preferred stock, and retire 8.8 million existing warrants.

Share Issuance

• In February and March 2026, XWELL completed a private placement that raised approximately $31.3 million through the issuance of Series H Convertible Preferred Stock and accompanying warrants. The Series H preferred stock is initially convertible into up to 66,666,669 common shares, with warrants allowing for the purchase of an equal number of common shares.
• In January 2025, the company closed a $4 million private placement consisting of convertible preferred stock and warrants.
• XWELL's shares outstanding significantly increased from approximately 2 million in December 2020 to 6 million in September 2025.

Inbound Investments

• A significant inbound investment occurred in February and March 2026, with a $31.3 million private placement from an accredited investor.
• In January 2025, XWELL received a $4 million private placement from certain accredited investors, which involved the issuance of convertible preferred stock and warrants.

Outbound Investments

• In September 2023, XWELL acquired Naples Wax Center, a group of hair removal boutiques in Florida, for approximately $1.5 million, marking a strategic expansion beyond airports.
• In March 2025, XWELL announced plans to acquire select medical spas by the end of 2025, intending to use the $4 million private placement for this expansion into the wellness and beauty sector.

Capital Expenditures

• In the last 12 months (up to approximately March 2026), XWELL's capital expenditures were -$2.99 million.
• Management is implementing capital spending controls as part of strategic initiatives to reduce operating expenses and enhance cash flow.