European Wax Center (EWCZ) Q4 2025 earnings summary

Executive summary

• Ended fiscal 2025 with 1,047 centers, a 1.9% decrease year-over-year, as openings were outpaced by closures.

• System-wide sales for the year were $947.3 million, down 0.4% year-over-year; total revenue fell 4.7% to $206.6 million.

• GAAP net income for fiscal 2025 was $11.9 million, a 19.2% decrease; Adjusted Net Income was $36.2 million, down 11.6%.

• Adjusted EBITDA for the year was $73.3 million, a 3.0% decrease year-over-year.

• Announced agreement to be taken private by General Atlantic in an all-cash transaction; will cease public reporting and guidance.

Financial highlights

• Fourth quarter system-wide sales were $225.6 million, down 1.6% year-over-year; total revenue was $45.1 million, down 9.3%.

• Same-store sales for the year increased 0.2%; Q4 same-store sales decreased 0.1%.

• Q4 net loss was $1.5 million, compared to net income of $3.1 million in the prior year; Adjusted Net Income for Q4 was $4.2 million, down 64.4%.

• Q4 Adjusted EBITDA was $12.7 million, down 33.1% year-over-year.

• Net income margin for the year was 5.7%, down from 6.8%; Adjusted EBITDA margin increased to 35.5% from 34.8%.

Outlook and guidance

• No financial guidance for fiscal 2026 due to pending privatization; no conference call will be held.