European Wax Center, Inc. Reports Q3 Fiscal Year Performance
The company reaffirms its fiscal 2025 financial outlook
Key Highlights from Q3 Fiscal 2025
In a recent announcement, European Wax Center, Inc. (NASDAQ: EWCZ), a leader in out-of-home waxing services across the United States, has outlined its financial performance for the latest quarter, which ended on October 4, 2025.
Summary of Performance Metrics
- Count of operating centers stood at 1,053, modestly down from 1,064 centers reported during the previous year.
- System-wide sales totaled $238.2 million, reflecting a slight decrease of 0.8% compared to the previous year.
- Total revenue reached $54.2 million, showing a decline of 2.2% from the prior year.
- Same-store sales witnessed a fractional growth of 0.2% in the same quarter.
- GAAP net income increased substantially to $5.4 million, marking a 164.4% improvement.
- Adjusted net income was reported at $10.7 million, an increase of 14.2% from the comparable quarter.
- Adjusted EBITDA rose to $20.2 million, which is a 9.6% growth from the previous year's performance.
Comments from Leadership
Chris Morris, Chairman and CEO, expressed satisfaction with the company’s performance, stating, "Our team has made significant strides in executing our strategic objectives, focusing on driving sales through increased customer traffic, boosting profitability for our franchise partners, and expanding responsibly."
Morris further emphasized the positive momentum within the organization, highlighting the improved engagement of franchisees and the company's resilience amid a challenging economic backdrop.
Year-To-Date Financial Updates
For the year-to-date period leading up to the third quarter of fiscal 2025, the company reports:
- Franchisees opened a total of 10 new centers while closing 24, resulting in a net loss of centers.
- System-wide sales maintained a flat trajectory at $721.7 million.
- Total revenue dipped to $161.5 million, down by 3.4% from the prior year period.
- Same-store sales recorded a modest growth of 0.4% year over year.
- Operating expenses improved with selling, general and administrative expenses decreasing by 2.2% for the year-to-date, reflecting cost management strategies in place.
- Net income reached $13.3 million, up 14.8% from the previous year.
- Adjusted EBITDA also saw an upward trend at $60.6 million, a 7.1% increase.
Outlook for Fiscal 2025
As the company progresses through fiscal 2025, it continues to expect substantial system-wide sales between $940 million to $950 million, with total revenue projected between $205 million to $209 million. The anticipated same-store sales growth is forecasted to range from 0.0% to 1.0%.
Share Repurchase Initiatives
During the latest quarter, European Wax Center repurchased approximately 1.2 million shares, reflecting the company's commitment to returning value to shareholders. The cumulative purchase under the company's $50 million authorization now stands at $45.9 million.
Financial Position and Future Guidance
The company's balance sheet remains strong, ending the quarter with $73.6 million in cash and cash equivalents. The outstanding borrowings under its senior secured notes were $387 million, without any debt on its revolving credit facility.
Frequently Asked Questions
What is the latest financial performance of European Wax Center?
European Wax Center reported a GAAP net income of $5.4 million for Q3, reflecting a 164.4% increase compared to the same period last year.
How many centers does European Wax Center have?
As of the end of Q3 FY2025, European Wax Center operates 1,053 centers.
What is the company’s outlook for fiscal year 2025?
The company anticipates system-wide sales between $940 million to $950 million and total revenue of $205 million to $209 million.
Is the company engaging in share repurchase programs?
Yes, the company has repurchased approximately 1.2 million shares during the latest quarter, adhering to its $50 million purchase authorization.
How does management view the performance and future growth?
Management expresses optimism about building momentum across the organization while staying committed to their strategic priorities.
