European Wax Center Q1 2025 Earnings Report
Key Takeaways
European Wax Center saw a slight revenue decline but achieved growth in adjusted net income and adjusted EBITDA. The company also reiterated its full-year outlook and continued executing on strategic priorities including marketing and franchisee support.
Revenue declined slightly to $51,427,000 compared to $51,874,000 last year.
GAAP Net Income dropped to $2,570,000, down 29.7% year-over-year.
Adjusted Net Income rose to $9,471,000, reflecting a change in definition to exclude intangible amortization.
Adjusted EBITDA increased 7.2% to $18,752,000, with margin expanding to 36.5%.
European Wax Center
European Wax Center
European Wax Center Revenue by Segment
European Wax Center Revenue by Geographic Location
Forward Guidance
The company reaffirmed its full-year 2025 outlook, projecting growth in system-wide sales, adjusted EBITDA, and adjusted net income while planning for net center closures.
Positive Outlook
- System-wide sales expected between $940M to $960M
- Revenue outlook of $210M to $214M
- Adjusted Net Income (new definition) guidance of $31M to $33M
- Adjusted EBITDA forecasted at $69M to $71M
- Continued investment in marketing and franchisee support
Challenges Ahead
- Anticipated net closure of 28 to 50 centers in FY25
- Expecting 7 to 8 net closures in Q2 alone
- Flat to minimal same-store sales growth (0.0% to 2.0%)
- Increased SG&A due to severance and stock-based comp
- Interest expense and tax rate both increased year-over-year