From GlobeNewswire: 2025-05-14 06:00:00

European Wax Center, Inc. reports financial results for the first quarter of fiscal 2025. Net new centers increased by 1.0% to a total of 1,062 centers in 45 states, with system-wide sales reaching $225.9 million. Total revenue decreased by 0.9% to $51.4 million, but same-store sales increased by 0.7%. GAAP net income decreased by 29.7%, while Adjusted Net Income increased by 10.3%. Adjusted EBITDA rose by 7.2% to $18.8 million.

CEO Chris Morris highlighted progress in strategic priorities and financial performance, focusing on enhancing marketing strategies and supporting franchisees. The company aims for net unit growth by 2026, navigating a dynamic economic environment and taking strategic supply chain management steps. Morris emphasized driving sales, profitability, and long-term growth.

For fiscal year 2025, European Wax Center reiterates a financial outlook, including system-wide sales of $940-960 million, total revenue of $210-214 million, and Adjusted Net Income of $31-33 million. The company estimates opening 10-12 new centers and closing 40-60 centers, with 28-50 net center closings expected in fiscal 2025. In the second quarter, 7-8 net center closings are anticipated.

The company ended the first quarter with $58.3 million in cash and cash equivalents, $6.5 million in restricted cash, and $389 million in borrowings. Net cash provided by operating activities totaled $12.7 million. The company’s financial outlook for fiscal 2025 includes Adjusted EBITDA of $69-71 million and a Net Leverage Ratio of 4.3x based on total debt and Adjusted EBITDA.

European Wax Center continues to revolutionize the waxing industry with its Comfort Wax® and proprietary products. The company, with over 1,000 centers in 45 states, generated sales of $951 million in fiscal 2024. For more information, visit their website. The company’s stock is listed on NASDAQ under the symbol EWCZ.

Investors can access a conference call to discuss first quarter fiscal 2025 results on May 14, 2025, at 8:00 a.m. ET/7:00 a.m. CT. Analysts should register online, while other participants can access the earnings webcast on the company’s investors website. A replay of the webcast will be available for one year.

Disclosure Regarding Non-GAAP Financial Measures includes definitions of key business metrics and financial terms used by European Wax Center, such as System-Wide Sales, Same-Store Sales, EBITDA, Adjusted EBITDA, and Adjusted Net Income. Reconciliations of these non-GAAP measures to GAAP equivalents are provided in the release. Non-GAAP financial outlook and guidance are also discussed.



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