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Oct 04
European Wax Center Q3 2025 Earnings Report
European Wax Center reported a solid Q3 performance with higher profitability despite slightly lower revenue and a modest decline in system-wide sales.
Key Takeaways
European Wax Center delivered higher net and adjusted income for Q3 2025 even as revenue dipped slightly, highlighting effective cost management and a resilient core business model.
Total revenue decreased 2.2% to $54.2 million
Net income rose 164.4% to $5.4 million with a margin of 9.9%
Adjusted EBITDA grew 9.6% to $20.2 million with margin improving to 37.2%
Same-store sales increased marginally by 0.2%
European Wax Center
European Wax Center
European Wax Center Revenue by Segment
European Wax Center Revenue by Geographic Location
Revenue by Segment
Product Sales Revenue
CapyFin.comRoyalty Fees Revenue
CapyFin.comMarketing Fees Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
The company reaffirmed its full-year 2025 outlook, expecting revenue between $205M and $209M and Adjusted EBITDA between $69M and $71M. However, center closings are expected to outpace openings.
Positive Outlook
- Revenue guidance reaffirmed at $205M–$209M
- System-wide sales projected at $940M–$950M
- Adjusted EBITDA forecasted at $69M–$71M
- Adjusted Net Income expected between $31M–$33M
- Same-store sales expected to grow up to 1.0%
Challenges Ahead
- Expecting 23–28 net center closures in FY25
- 11–16 center closures anticipated in Q4
- Limited new center openings (12 forecasted)
- Cost controls needed amid declining top-line growth
- Challenging macro environment impacting expansion