XWEL XWELL, Inc.

Overview and Growth

XWELL, Inc. generated $29.21M of revenue in fiscal 2025, with net loss of $16.99M and an operating cash outflow of $8.71M. Revenue of $29.21M sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line contracted 13.8% from $33.90M in fiscal 2024; this top-line contraction left the company with a smaller revenue base. The company reported diluted EPS of -$5.08, adding a shareholder-level measure to the absolute income figures considered below. At period end, total assets were $11.22M, framing the scale of the company’s operating and financing commitments. Revenue equaled 2.6x of total assets, indicating how much reported top-line activity the company produced relative to its period-end asset base.

Profitability

After reported cost of revenue, the company retained $7.51M as gross profit before recognizing operating expenses and other items. Gross margin was 25.7%, so that share of each revenue unit remained after the cost of revenue reported for the period. The reported operating result was an operating loss of $15.67M, reflecting costs that exceeded gross profit. An operating margin of -53.6% reflected costs exceeding revenue-level gross profit by 53.6% of sales. The company ended the period with a net loss of $16.99M, extending the operating result through all remaining items. The net loss equaled 58.2% of revenue, showing the bottom-line deficit relative to the company’s sales base. Before income taxes, the company recorded a loss of $16.08M, bridging the operating result to the final net loss. Pretax margin was -55.0%, reflecting a pre-tax loss equal to 55.0% of revenue. Income tax expense totaled $29.00K, providing the reported tax component that separates pretax and after-tax earnings. Relative to total assets, the net loss represented 151.5%. Compared with a $16.85M net loss in fiscal 2024, the current loss increased to $16.99M.

Liquidity and Capital Structure

The company held $11.22M of assets against $23.80M of liabilities and -$12.80M of equity, revealing how the asset base was financed. With total equity at -$12.80M, the company carried a negative book-capital position, increasing its reliance on liabilities and future earnings. At period end, current assets of $5.91M compared with current liabilities of $12.89M, defining the company’s short-term resource position. At 0.46x, current liabilities exceeded current assets and placed pressure on the company’s near-term liquidity position. Reported cash and equivalents were $2.62M, separating immediately recognizable cash resources from the rest of the current-asset base. Cash and equivalents represented 20.3% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Liabilities represented 212.2% of total assets, quantifying the liability-funded share of the company’s resource base. Measured against total assets, cash and equivalents represented 23.3%, a balance-sheet composition measure rather than a liquidity forecast. Compared with $25.35M in fiscal 2024, the current asset base moved 55.8% and finished lower. Book equity was 265.4% lower than fiscal 2024 equity of $7.74M, showing how shareholder capital changed year over year. The reported cash balance changed 42.5% from $4.55M in fiscal 2024, ending lower year over year.

Cash Flow and Earnings Quality

The company reported an operating cash outflow of $8.71M, rather than cash generation from operations. Capital expenditures used $2.96M in addition to the operating cash outflow, increasing the total cash consumed by operations and investment during the period. Operating cash flow and capital spending combined to leave a $11.68M cash deficit after capital spending. Free-cash-flow margin was -40.0%, reflecting a cash deficit equal to 40.0% of revenue after capital spending. The free-cash-flow deficit equaled 104.1% of total assets, placing the cash shortfall against the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.