European Wax Center Issues FY25 Results Ahead of Buyout Deal

For the fourth quarter of fiscal 2025, European Wax Center reported total revenue of $45.1 million, reflecting a 9.3% year-over-year decline. System-wide sales for the quarter fell 1.6% to $225.6 million, while same-store sales experienced a modest decrease of 0.1%. For the full fiscal year 2025, total revenue stood at $206.6 million, down 4.7% from the prior year, alongside a 0.4% dip in full-year system-wide sales to $947.3 million. The topline contraction during the fourth quarter was primarily driven by a shift in service mix and lower overall system volume.

Profitability metrics compressed during the reporting period, with the company recording a fourth-quarter GAAP net loss of $1.5 million, marking a steep decline from the $3.1 million net income generated in the same quarter last year. Fourth-quarter Adjusted EBITDA dropped 33.1% year-over-year to $12.7 million, resulting in an Adjusted EBITDA margin of 28.1%, which represented a 1,000 basis point contraction. Selling, general, and administrative expenses increased to 34.3% of total revenue in the fourth quarter, driven by strategic headcount investments and lower overall revenue. For the full fiscal year 2025, GAAP net income declined 19.2% to $11.9 million, while full-year Adjusted EBITDA saw a more moderate decrease of 3.0% to $73.3 million.