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Jul 05
European Wax Center Q2 2025 Earnings Report
European Wax Center reported its Q2 2025 earnings with slight revenue decline but improved adjusted profitability.
Key Takeaways
European Wax Center saw a 6.6% decrease in revenue year-over-year in Q2 2025, but adjusted net income and adjusted EBITDA both grew. The company maintained stable same-store sales and ended the quarter with 1,059 centers.
Total revenue declined 6.6% year-over-year to $55.9 million.
Adjusted Net Income rose to $11.8 million, up from $11.1 million last year.
Adjusted EBITDA grew 4.7% to $21.6 million.
Same-store sales remained positive with 0.3% growth.
European Wax Center
European Wax Center
European Wax Center Revenue by Segment
Revenue by Segment
Product Sales Revenue
CapyFin.comRoyalty Fees Revenue
CapyFin.comMarketing Fees Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
The company updated its full-year 2025 outlook with a narrower revenue range and reiterated other metrics, anticipating a modest decrease in center count.
Positive Outlook
- Adjusted Net Income guidance reiterated at $31M–$33M
- Adjusted EBITDA guidance reaffirmed at $69M–$71M
- Same-store sales still expected to remain flat to positive
- Franchise network remains nationwide with strong brand presence
- Cost discipline and marketing improvements continue
Challenges Ahead
- Revenue guidance lowered to $205M–$209M from $210M–$214M
- Expected net center closures between 28 to 50 for FY 2025
- Q2 system-wide sales decreased 1.0% YoY
- Marketing fees declined year-over-year
- Revenue decline driven by drop in same-day services and retail