XpresSpa Registers First Ever Quarter Of Profitability

XpresSpa Group Inc XSPA reported third-quarter FY21 revenue of $26.8 million, primarily due to the recognition of revenue from twelve XpresCheck locations totaling $25.4 million. It reported $0.2 million in revenue last year.
The cost of sales increased to $13.7 million from $1.4 million in the prior year. General and administrative expenses rose 18.2% Y/Y to $5.2 million.
The operating margin was 26.4%, and operating income for the quarter was $7.1 million versus a loss of $(9.2) million.
Adjusted EBITDA for the quarter was $8.7 million versus $(5.1) million prior year.
Net income for the quarter was $5.6 million versus a loss of $(6.1) million last year.
"We firmly believe that COVID-19 testing at major U.S. airports will remain an important part of travel, especially international travel, for the foreseeable future," said CEO Doug Satzman.
XpresSpa reiterated its long-term revenue target of $500 million by 2025.
Price Action: XSPA shares closed higher by 11.68% at $1.53 on Monday.