What factors drove the changes in European Wax Center's revenue and profit?

What is the market's earnings forecast for European Wax Center next quarter?

Did European Wax Center beat or miss consensus estimates last quarter?

What were the key takeaways from European Wax Center's earnings call?

What is the revenue and EPS growth rate for European Wax Center year over year?

What is European Wax Center's latest dividend and current dividend yield?

What is European Wax Center's gross profit margin?

What guidance did European Wax Center's management provide for the next earnings period?

- **Revenue resilience**: 20 basis points same-store growth despite macro challenges.
- **Profitability boost**: 37.2% EBITDA margin, up 400 basis points YoY.
- **Operational turnaround**: Closure range narrowed to 35-40, 2026 net positive growth on track.
- **Marketing momentum**: 60% guest contactability, 53% website traffic lift, but new guest acquisition needs 2026 focus.
- **Financial strength**: $73.6 million cash, 3.9x leverage, stable free cash flow.


**【CEO Summary】**
- **System-wide sales**: $238.2 million, down 0.8% YoY due to closed centers, with same-store sales growth of 20 basis points.
- **Adjusted EBITDA**: $20.2 million (up 9.6% YoY), margin improving to 37.2%.
- **Strategic priorities**: 
  1. **Traffic growth**: Enhanced marketing re-engaged 60% of guests, driving frequency through data-driven campaigns.
  2. **Operational excellence**: New COO focus on in-center execution, reducing closures to 35-40 (from 40-60) with 2026 net positive growth.
  3. **Expansion**: 12 gross openings in 2025, targeting 2026 profitable expansion.
- **Regional trends**: Stability in core guests, with challenges in NY/D.C. and improvement in California.

**【CFO Financial Commentary】**
- **Revenue**: $54.2 million (down 2.2% YoY), with gross margin at 73.3%.
- **Cost management**: SG&A down $4.5 million, advertising spend optimized for efficiency.
- **Balance sheet**: $73.6 million cash, $387 million debt, net leverage 3.9x.
- **Outlook**: Full-year system-wide sales $940-950 million, EBITDA $69-71 million, net income $31-33 million.

**【Q&A Highlights】**
- **Marketing effectiveness**: 75% improvement in influencer content, 53% lift in website visitors, but new guest acquisition remains a 2026 focus.
- **Unit closures**: Driven by low-volume units with lease expirations, 2026 NCOs expected to return to growth.
- **Financial discipline**: Maintaining 3%+ advertising spend, tariff mitigation via diversified suppliers.


European Wax Center, Inc. (EWCZ) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

EWCZ

EWCZ fundamentals

You can ask Aime