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Apr 05, 2025
European Wax Center Q1 2025 Earnings Report
European Wax Center reported stable performance with modest revenue decline but improved adjusted earnings in Q1 2025.
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%.
Revenue by Segment
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
Historical Earnings Impact
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Avg. Return Before/After Earnings
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