Financial Data and Key Metrics Changes - System wide sales for Q1 fiscal 2025 reached $225.9 million, a 2.1% increase from $221.4 million in the previous year, driven by the shift in the Easter holiday and payment timing [6][23] - Same store sales grew by 70 basis points, but adjusting for the Easter shift, it would have been approximately flat [23] - Adjusted EBITDA increased by 7.2% to $18.8 million from $17.5 million, with an adjusted EBITDA margin rising to 36.5% from 33.7% [25] - Adjusted net income rose by 10.3% to $9.5 million from $8.6 million [26] Business Line Data and Key Metrics Changes - Total revenue decreased by approximately $400,000 or 90 basis points to $51.4 million, primarily due to lower retail and wholesale product revenue [24] - The company ended Q1 with 1,062 centers, representing a 1% growth year over year, with five gross openings and ten closures, resulting in five net center closures [22] Market Data and Key Metrics Changes - The company is experiencing stable trends in mature center transactions year to date, with expectations for flat to positive same store sales growth [29][82] - The macroeconomic environment remains uncertain, but the core guest base has shown resilience [81] Company Strategy and Development Direction - The company aims to focus on driving sales, improving profitability, and reigniting unit growth, emphasizing the importance of a strong marketing engine and franchisee support [9][10][19] - A more sophisticated development approach is being implemented, focusing on profitable expansion and identifying underpenetrated trade areas for future growth [18] - The company is actively exploring alternative sourcing options to mitigate tariff impacts on product costs [31][32] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the uncertain consumer backdrop and supply chain environment but remains confident in the fundamentals of the business model [7][28] - The outlook for 2025 is reiterated, with expectations for system wide sales between $940 million and $960 million, and same store sales expected to be flat to positive 2% [30][34] Other Important Information - The company has made significant progress in assembling a new executive team to execute strategic priorities [20] - The marketing strategy is being refined to better target high-value guests and improve guest engagement [12][14] Q&A Session Summary Question: Can you talk about the game plan going forward and the potential tariff impact? - Management is pleased with progress and sees stability in the business, with no material changes in promotional activity expected [41][44] - The company is actively exploring alternative sourcing options to manage tariff exposure [46][47] Question: What are you hearing from franchisees regarding center closures? - Franchisees are passionate about the brand, and the company is focused on building strong partnerships to improve profitability and minimize closures [50][52] Question: Can you provide insight into the increase in capital investment? - The increase is primarily due to inflationary pressures rather than fundamental changes in the business model [60] Question: What are the key themes for the upcoming franchise convention? - The convention will cover a full situation assessment, opportunities, and a plan to maximize potential [62] Question: How do you prioritize marketing and franchisee execution? - The primary focus is on the marketing funnel and franchisee execution, with ongoing efforts to improve guest experience and profitability [100][101] Question: What is the strategy for dealing with higher input prices due to tariffs? - The company is evaluating all options, including potential price adjustments, but aims to manage costs effectively without compromising the brand [112]

Financial Data and Key Metrics Changes - System wide sales for Q1 2025 reached $225.9 million, a 2.1% increase from $221.4 million in Q1 2024, driven by the shift in the Easter holiday and payment timing [23][6] - Same store sales grew by 70 basis points, but adjusting for the Easter shift, it would have been approximately flat [23][6] - Adjusted EBITDA increased by 7.2% to $18.8 million from $17.5 million in the prior year, with an adjusted EBITDA margin rising to 36.5% from 33.7% [25][26] - Adjusted net income rose by 10.3% to $9.5 million from $8.6 million in the previous year [26] Business Line Data and Key Metrics Changes - Total revenue decreased by approximately $400,000 or 90 basis points to $51.4 million, primarily due to lower retail and wholesale product revenue [24] - SG&A expenses increased by $1.9 million to $15.3 million, driven by higher stock-based compensation and executive severance costs [25] - Advertising expenses decreased by $1.4 million due to the timing of spend within the fiscal year [25] Market Data and Key Metrics Changes - The company ended Q1 with 1,062 centers, representing a 1% growth year over year, with five gross openings and ten closures resulting in five net center closures [22] - The company expects 10 to 12 gross openings and 40 to 60 center closures for the year, leading to 28 to 50 net center closures [29] Company Strategy and Development Direction - The company aims to focus on driving sales, improving four wall profitability, and reigniting unit growth as critical components for revitalizing long-term growth [10][19] - A data-rich digital-first marketing engine is being developed to enhance guest engagement and drive new guest acquisition [11][12] - The company is implementing a more sophisticated development approach focused on thoughtful, profitable expansion, identifying underpenetrated trade areas for future growth [17][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the uncertain consumer backdrop and supply chain environment but emphasizes strong fundamentals and proactive management [7][6] - The outlook for 2025 is reiterated, assuming a stable consumer environment, with expectations for system wide sales between $940 million and $960 million [28][30] - Management is confident in their ability to manage tariff impacts and maintain guidance despite macroeconomic challenges [31][34] Other Important Information - The company has made substantial progress in assembling a team of seasoned leaders to execute strategic priorities for 2025 and beyond [19][20] - The company is actively exploring alternative sourcing options to mitigate tariff impacts on product costs [31][44] Q&A Session Summary Question: Can you talk about the game plan going forward and the potential tariff impact? - Management is pleased with progress and sees stability in the business, with no material changes in promotional activity expected [39][41] - They are actively exploring all options to manage tariff exposure, including alternative sourcing [44] Question: What are you hearing from franchisees regarding center closures? - Franchisees are passionate about the brand, but the past few years have been tough, leading to underperforming centers [48][50] Question: Can you provide insight into the cost to build and return to net unit growth? - The increase in capital investment is attributed to inflationary pressures, with a focus on optimizing costs and operations [57] Question: What are the key themes for the upcoming franchise convention? - The convention will cover a full situation assessment, opportunities, and a plan to maximize potential [60] Question: How do you prioritize marketing, franchisee execution, and other factors? - The primary focus is on the marketing funnel and franchisee execution, followed by waxer consistency and consumer value [96][98] Question: What is the performance of underperforming stores versus healthy stores? - Underperforming stores are primarily an AUV issue, with various factors contributing to their performance [65][100]

Company Performance - European Wax Center, Inc. (EWCZ) reported quarterly earnings of $0.22 per share, exceeding the Zacks Consensus Estimate of $0.05 per share, and up from $0.13 per share a year ago, representing an earnings surprise of 340% [1] - The company posted revenues of $51.43 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.11%, although this is a slight decrease from year-ago revenues of $51.87 million [2] - Over the last four quarters, the company has consistently surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Outlook - European Wax Center shares have declined approximately 40.6% since the beginning of the year, contrasting with the S&P 500's gain of 0.1% [3] - The company's earnings outlook is favorable, with a current consensus EPS estimate of $0.12 on revenues of $57.77 million for the coming quarter, and $0.31 on revenues of $211.81 million for the current fiscal year [7] - The estimate revisions trend for European Wax Center is currently favorable, resulting in a Zacks Rank 1 (Strong Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Cosmetics industry, to which European Wax Center belongs, is currently ranked in the bottom 24% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of European Wax Center may be influenced by the overall outlook for the industry, as research indicates that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]

[First Quarter Fiscal Year 2025 Earnings Release Overview](index=1&type=section&id=First%20Quarter%20Fiscal%20Year%202025%20Earnings%20Release%20Overview) European Wax Center, Inc. announced its Q1 FY25 results, reiterating its full-year outlook and highlighting strategic progress and solid financial performance [Executive Summary](index=1&type=section&id=Executive%20Summary) European Wax Center, Inc. reported its Q1 FY25 results, reiterating its full-year outlook. The company achieved solid financial performance and made progress on strategic priorities, including enhancing its marketing engine and strengthening corporate infrastructure to support franchisees - Company reiterates **fiscal 2025 outlook**[1](index=1&type=chunk) - Made meaningful progress against strategic priorities and delivered solid financial performance[3](index=3&type=chunk) - Advancing data-rich marketing engine and strengthening corporate infrastructure to support franchisees[3](index=3&type=chunk) - Focus on long-term network health and goal of achieving net unit growth by end of 2026[3](index=3&type=chunk) [CEO Statement](index=1&type=section&id=CEO%20Statement) CEO Chris Morris expressed conviction in the brand and market position, highlighting efforts to navigate a dynamic macroeconomic environment with a disciplined approach to supply chain management. The focus is on driving near-term results, improving four-wall profitability, and reigniting long-term unit growth - CEO Chris Morris amplified conviction in the European Wax Center brand and its **leading market position**[3](index=3&type=chunk) - Navigating a dynamic macroeconomic environment and taking a disciplined, strategic approach to managing the supply chain with franchisee success top of mind[3](index=3&type=chunk) - Taking quick action to drive near-term results while sharpening a clear vision for the future, anchored in driving sales, improving four-wall profitability, and reigniting long-term unit growth[3](index=3&type=chunk) [First Quarter Fiscal Year 2025 Financial Performance](index=1&type=section&id=First%20Quarter%20Fiscal%20Year%202025%20Financial%20Performance) This section details European Wax Center's Q1 FY25 financial performance, including key highlights, detailed results, and a summary of the balance sheet and cash flow [Key Financial Highlights (Q1 FY25 vs FY24)](index=1&type=section&id=Key%20Financial%20Highlights%20(Q1%20FY25%20vs%20FY24)) European Wax Center reported mixed results for Q1 FY25. System-wide sales and Adjusted EBITDA saw increases, while total revenue and GAAP net income decreased. Same-store sales showed modest growth, and net new centers increased slightly Q1 FY25 vs FY24 Key Financial Highlights | Metric | Q1 FY25 | Q1 FY24 | Change (%) | | :----------------------- | :-------- | :-------- | :--------- | | Net new centers | 1,062 | 1,051 | +1.0% | | System-wide sales | $225.9M | $221.4M | +2.1% | | Total revenue | $51.4M | $51.9M | -0.9% | | Same-store sales | +0.7% | N/A | +0.7% | | GAAP net income | $2.6M | $3.7M | -29.7% | | Adjusted Net Income (new) | $9.5M | $8.6M | +10.3% | | Adjusted EBITDA | $18.8M | $17.5M | +7.2% | [Detailed Financial Results (Q1 FY25 vs FY24)](index=1&type=section&id=Detailed%20Financial%20Results%20(Q1%20FY25%20vs%20FY24)) A deeper dive into Q1 FY25 reveals that the increase in system-wide sales was driven by existing centers and new openings. Total revenue slightly decreased. SG&A expenses rose significantly due to stock-based compensation and executive severance, impacting net income and effective tax rate. Adjusted EBITDA margin improved - System-wide sales of **$225.9 million** **increased 2.1%** from **$221.4 million** in the prior year period, primarily driven by **increased** spend by guests at existing centers and net new centers opened over the past twelve months[6](index=6&type=chunk) - Total revenue of **$51.4 million** **decreased 0.9%** from **$51.9 million** in the prior year period[6](index=6&type=chunk) - Selling, general and administrative expenses ("SG&A") of **$15.3 million** **increased 13.9%** from **$13.5 million** in the prior year period. SG&A as a percent of total revenue **increased 380 basis points** to **29.8%** from **26.0%** primarily driven by **increased** stock based compensation and executive severance expense[6](index=6&type=chunk) - Interest expense, net of **$6.6 million** **increased** from **$6.3 million** in the prior year period[6](index=6&type=chunk) - The effective tax rate **increased** to **35.0%** from **24.9%** in the prior year period, primarily due to the impact of nondeductible officer compensation[6](index=6&type=chunk) - Net income margin **decreased 200 basis points** to **5.0%** from **7.0%**[12](index=12&type=chunk) - Adjusted EBITDA Margin **increased 280 basis points** to **36.5%** from **33.7%**[12](index=12&type=chunk) - The Company repurchased **approximately 0.2 million shares** of its Class A Common Stock during the period for **$1.1 million**, bringing **cumulative repurchases under the Company's current $50 million authorization to $41.2 million**[12](index=12&type=chunk) [Balance Sheet and Cash Flow Summary](index=2&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Summary) As of April 5, 2025, the company maintained a healthy cash position with $58.3 million in cash and equivalents. Net cash provided by operating activities was $12.7 million for the quarter, with outstanding borrowings of $389.0 million under senior secured notes Q1 FY25 Balance Sheet & Cash Flow Snapshot | Metric | Amount (as of April 5, 2025) | | :-------------------------------- | :--------------------------- | | Cash and cash equivalents | $58.3 million | | Restricted cash | $6.5 million | | Borrowings outstanding (senior secured notes) | $389.0 million | | Outstanding borrowings (revolving credit facility) | $0 | | Net cash provided by operating activities (Q1) | $12.7 million | [Fiscal Year 2025 Outlook](index=2&type=section&id=Fiscal%20Year%202025%20Outlook) The company reiterates its fiscal year 2025 financial outlook, providing projections for sales, revenue, profitability, and net new center development [Financial Outlook](index=2&type=section&id=Financial%20Outlook) The company reiterates its fiscal year 2025 financial outlook, projecting system-wide sales between $940 million and $960 million, and total revenue between $210 million and $214 million. Adjusted Net Income (new definition) is expected to be $31 million to $33 million, with Adjusted EBITDA between $69 million and $71 million Fiscal 2025 Financial Outlook | Metric | Fiscal 2025 Outlook | | :-------------------------------- | :-------------------- | | System-Wide Sales | $940 million to $960 million | | Total Revenue | $210 million to $214 million | | Same-Store Sales | 0.0% to 2.0% | | Adjusted Net Income (previously defined) | $16 million to $18 million | | Adjusted Net Income (now defined) | $31 million to $33 million | | Adjusted EBITDA | $69 million to $71 million | - Adjusted Net Income outlook assumes an **effective tax rate of approximately 23% for fiscal 2025**[8](index=8&type=chunk) [Net New Center Outlook](index=2&type=section&id=Net%20New%20Center%20Outlook) For fiscal 2025, the company anticipates 10 to 12 new center openings and 40 to 60 center closures, resulting in 28 to 50 net center closings. The second quarter is expected to see 7 to 8 net center closings - Franchisees are estimated to open **10 to 12 new centers** and close **40 to 60 centers in fiscal 2025**[9](index=9&type=chunk) - This translates to **28 to 50 net center closings** in **fiscal 2025**[9](index=9&type=chunk) - The Company expects **7 to 8 net center closings** during the second quarter[9](index=9&type=chunk) - As of May 13, 2025, **1 center has opened and 2 have closed** in the second quarter[9](index=9&type=chunk) [Company Information](index=3&type=section&id=Company%20Information) This section provides an overview of European Wax Center, Inc., including company profile, forward-looking statements, non-GAAP financial measure disclosures, and key business metric definitions [About European Wax Center, Inc.](index=3&type=section&id=About%20European%20Wax%20Center,%20Inc.) European Wax Center, Inc. is the leading franchisor and operator of out-of-home waxing services in the U.S., performing over 23 million services annually. The company emphasizes professional care, innovative Comfort Wax®, proprietary products, and strong company values, operating over 1,000 centers in 45 states - European Wax Center, Inc. is the **leading franchisor and operator** of out-of-home waxing services in the United States[13](index=13&type=chunk) - Locations perform **more than 23 million services** per year, providing an unparalleled, professional personal care experience with innovative Comfort Wax® and proprietary products[13](index=13&type=chunk) - Its network includes **more than 1,000 centers in 45 states**, generating **sales of $951 million in fiscal 2024**[13](index=13&type=chunk) - Proud to be Certified™ by Great Place to Work®, leading with values: We Care About Each Other, We Do the Right Thing, We Delight Our Guests, and We Have Fun While Being Awesome[13](index=13&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section outlines the nature of forward-looking statements within the press release, including strategy, outlook, growth prospects, and financial targets for fiscal 2025. It also details various known and unknown risks and uncertainties that could cause actual results to differ materially from expectations, such as operational and financial results of franchisees, market competition, and economic conditions - Includes forward-looking statements regarding European Wax Center, Inc.'s strategy, outlook, growth prospects, operational and financial outlook for **fiscal 2025**, expected center openings and closures, and capital allocation strategy[14](index=14&type=chunk) - These statements are based on current expectations and beliefs, but involve known and unknown risks, uncertainties, and other important factors that may cause actual results to be materially different[15](index=15&type=chunk) - Key factors that could cause actual results to differ include operational and financial results of franchisees, ability to enter new markets, marketing effectiveness, competition, economic conditions, and compliance with regulations[15](index=15&type=chunk) - The Company does not have any obligation to update or revise forward-looking statements, except as required by law[17](index=17&type=chunk) [Disclosure Regarding Non-GAAP Financial Measures](index=4&type=section&id=Disclosure%20Regarding%20Non-GAAP%20Financial%20Measures) The company uses non-GAAP financial measures like Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Net Leverage Ratio to provide additional insights into operating performance. The definition of Adjusted Net Income was revised in Q1 2025 to exclude amortization of intangible assets, aiming for clearer evaluation of core operations - The Company includes non-GAAP financial measures such as Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income, and Net Leverage Ratio to assess operating performance[18](index=18&type=chunk) - The definition of Adjusted Net Income (Loss) was revised in the first quarter of **2025** to exclude amortization of intangible assets, which management does not view as part of core operations, to enable clearer and more consistent evaluation of core operating performance[22](index=22&type=chunk) - The Company is unable to provide GAAP net income guidance or a reconciliation for forward-looking non-GAAP measures without unreasonable effort due to the inability to predict certain items[24](index=24&type=chunk) [Key Business Metrics Definitions](index=5&type=section&id=Key%20Business%20Metrics%20Definitions) This section defines key business metrics used by the company. System-Wide Sales include all sales from the network, influencing royalty revenue and brand health. Same-Store Sales track performance of existing centers open for at least 52 full weeks, excluding new openings and closures - **System-Wide Sales** represent sales from same day services, retail sales, and cash collected from wax passes for all centers in the network, including both franchisee-owned and corporate-owned centers, used to assess royalty revenue, overall center performance, brand health, and market position[25](index=25&type=chunk) - **Same-Store Sales** reflect the change in sales over a comparable **52-week period** year over year from services performed and retail sales for centers **open for at least 52 full weeks**, excluding the impact of new center openings and closures, to highlight the performance of existing centers[26](index=26&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents the condensed consolidated financial statements, including balance sheets, statements of operations, and statements of cash flows for the period [Balance Sheets](index=6&type=section&id=Balance%20Sheets) The balance sheet shows total assets increased slightly from $707.1 million at January 4, 2025, to $713.8 million at April 5, 2025. Cash and cash equivalents increased, while total liabilities remained relatively stable. Stockholders' equity attributable to European Wax Center, Inc. increased to $70.5 million Condensed Consolidated Balance Sheets (Selected Items) | Item | April 5, 2025 (in thousands) | January 4, 2025 (in thousands) | | :------------------------------------ | :----------------------------- | :----------------------------- | | Cash and cash equivalents | $58,326 | $49,725 | | Total current assets | $95,308 | $87,839 | | Intangible assets, net | $427,327 | $432,160 | | Total assets | $713,795 | $707,067 | | Total current liabilities | $35,119 | $36,111 | | Long-term debt, net | $373,630 | $373,246 | | Total liabilities | $615,283 | $615,475 | | Total stockholders' equity | $98,512 | $91,592 | [Statements of Operations](index=7&type=section&id=Statements%20of%20Operations) For the thirteen weeks ended April 5, 2025, total revenue was $51.4 million, a slight decrease from $51.9 million in the prior year. Net income decreased to $2.6 million from $3.7 million, primarily due to increased SG&A expenses and higher income tax expense. Diluted EPS for Class A Common Stock was $0.04 Condensed Consolidated Statements of Operations (Selected Items) | Item | For the Thirteen Weeks Ended April 5, 2025 (in thousands) | For the Thirteen Weeks Ended April 6, 2024 (in thousands) | | :------------------------------------ | :-------------------------------------------------------- | :-------------------------------------------------------- | | Total revenue | $51,427 | $51,874 | | Total operating expenses | $40,845 | $40,692 | | Income from operations | $10,582 | $11,182 | | Interest expense, net | $6,633 | $6,336 | | Income before income taxes | $3,951 | $4,866 | | Income tax expense | $1,381 | $1,212 | | NET INCOME | $2,570 | $3,654 | | Diluted - Class A Common Stock EPS | $0.04 | $0.06 | [Statements of Cash Flows](index=8&type=section&id=Statements%20of%20Cash%20Flows) Net cash provided by operating activities increased to $12.7 million for the thirteen weeks ended April 5, 2025, compared to $10.7 million in the prior year. Investing activities resulted in a net cash outflow of $0.7 million, while financing activities used $3.5 million, including principal payments on debt and share repurchases Condensed Consolidated Statements of Cash Flows (Selected Items) | Item | For the Thirteen Weeks Ended April 5, 2025 (in thousands) | For the Thirteen Weeks Ended April 6, 2024 (in thousands) | | :------------------------------------ | :-------------------------------------------------------- | :-------------------------------------------------------- | | Net cash provided by operating activities | $12,707 | $10,724 | | Net cash (used in) provided by investing activities | $(660) | $105 | | Net cash used in financing activities | $(3,461) | $(3,186) | | Net increase in cash, cash equivalents and restricted cash | $8,586 | $7,643 | | Cash paid for interest | $5,439 | $5,490 | | Cash paid for income taxes | $143 | $40 | [Reconciliation of Non-GAAP Financial Measures](index=9&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides reconciliations for non-GAAP financial measures, including Adjusted Net Income, EBITDA, Adjusted EBITDA, and Net Leverage Ratio [Adjusted Net Income Reconciliation](index=9&type=section&id=Adjusted%20Net%20Income%20Reconciliation) The reconciliation shows Adjusted Net Income (as now defined) for Q1 FY25 was $9.5 million, an increase from $8.6 million in Q1 FY24. Key adjustments include share-based compensation, remeasurement of tax receivable agreement liability, executive severance, reorganization costs, and, under the new definition, amortization of intangible assets Reconciliation of Net Income to Adjusted Net Income (Thirteen Weeks Ended) | Item | April 5, 2025 (in thousands) | April 6, 2024 (in thousands) | | :------------------------------------ | :----------------------------- | :----------------------------- | | Net income | $2,570 | $3,654 | | Share-based compensation | $2,564 | $1,382 | | Executive severance | $465 | $0 | | Reorganization costs | $160 | $0 | | Adjusted Net Income, as previously defined | $5,599 | $4,737 | | Amortization of intangible assets | $4,834 | $4,834 | | Tax effect of adjustments | $(962) | $(985) | | Adjusted Net Income, as now defined | $9,471 | $8,586 | [EBITDA and Adjusted EBITDA Reconciliation](index=10&type=section&id=EBITDA%20and%20Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA for Q1 FY25 was $18.8 million, up from $17.5 million in Q1 FY24, with the Adjusted EBITDA Margin improving to 36.5% from 33.7%. Adjustments primarily include share-based compensation, remeasurement of tax receivable agreement liability, executive severance, and reorganization costs Reconciliation of Net Income to EBITDA and Adjusted EBITDA (Thirteen Weeks Ended) | Item | April 5, 2025 (in thousands) | April 6, 2024 (in thousands) | | :------------------------------------ | :----------------------------- | :----------------------------- | | Net income | $2,570 | $3,654 | | Interest expense, net | $6,633 | $6,336 | | Income tax expense | $1,381 | $1,212 | | Depreciation and amortization | $4,981 | $5,095 | | EBITDA | $15,565 | $16,297 | | Share-based compensation | $2,564 | $1,382 | | Executive severance | $465 | $0 | | Reorganization costs | $160 | $0 | | Adjusted EBITDA | $18,752 | $17,498 | | Adjusted EBITDA Margin | 36.5% | 33.7% | [Net Leverage Ratio Reconciliation](index=10&type=section&id=Net%20Leverage%20Ratio%20Reconciliation) As of April 5, 2025, the Net Leverage Ratio was 4.3x, calculated from total debt of $389.0 million, less cash and cash equivalents of $58.3 million, divided by trailing twelve months Adjusted EBITDA of $76.8 million Reconciliation of Total Debt to Net Leverage Ratio (Trailing Twelve Months Ended April 5, 2025) | Item | Amount (in thousands) | | :------------------------ | :-------------------- | | Total debt | $389,000 | | Less: Cash and cash equivalents | $(58,326) | | Net Debt | $330,674 | | Adjusted EBITDA | $76,759 | | Net Leverage Ratio | 4.3x | [Additional Information](index=2&type=section&id=Additional%20Information) This section provides details on the webcast and conference call, along with contact information for investor relations and media inquiries [Webcast and Conference Call Information](index=2&type=section&id=Webcast%20and%20Conference%20Call%20Information) European Wax Center, Inc. hosted a conference call and webcast on May 14, 2025, to discuss Q1 FY25 results, with replay available online - European Wax Center, Inc. hosted a conference call to discuss first quarter **fiscal 2025** results on May 14, **2025**[11](index=11&type=chunk) - A replay of the webcast will be available two hours after the call and archived on https://investors.waxcenter.com for one year[11](index=11&type=chunk) [Contact Information](index=10&type=section&id=Contact%20Information) Contact details for investor relations and media inquiries are provided - Investor Contact: Bethany Johns, Bethany.Johns@myewc.com, 469-270-6888[40](index=40&type=chunk) - Media Contact: Sophia Tortorella, sophia.tortorella@zenogroup.com, 312-752-6851[40](index=40&type=chunk)

Core Insights - European Wax Center, Inc. reported solid financial performance in Q1 2025, with a focus on strategic priorities and franchisee support [3][6] - The company reiterated its full-year financial outlook, indicating confidence in achieving growth despite macroeconomic challenges [3][8] Financial Performance - System-wide sales reached $225.9 million, a 2.1% increase from $221.4 million in the prior year [6][7] - Total revenue decreased by 0.9% to $51.4 million from $51.9 million year-over-year [6][7] - Same-store sales increased by 0.7% [6][7] - GAAP net income was $2.6 million, down 29.7% from $3.7 million [6][7] - Adjusted net income increased by 10.3% to $9.5 million from $8.6 million [6][7] - Adjusted EBITDA rose by 7.2% to $18.8 million from $17.5 million [6][7] Balance Sheet and Cash Flow - The company ended the quarter with $58.3 million in cash and cash equivalents and $6.5 million in restricted cash [5][6] - Net cash provided by operating activities totaled $12.7 million during the quarter [5][6] - Total borrowings under senior secured notes amounted to $389.0 million, with no outstanding borrowings under the revolving credit facility [5][6] Outlook - The company expects system-wide sales for fiscal 2025 to be between $940 million and $960 million [8] - Total revenue is projected to be between $210 million and $214 million [8] - Same-store sales are anticipated to range from 0.0% to 2.0% [8] - The adjusted net income outlook is set at $31 million to $33 million [8] - Franchisees are estimated to open 10 to 12 new centers while closing 40 to 60 centers, leading to a net center closure of 28 to 50 for fiscal 2025 [9]

Core Viewpoint - European Wax Center, Inc. (EWCZ) is expected to report a quarterly earnings per share (EPS) of $0.05, reflecting a year-over-year decline of 61.5%, with revenues projected at $49.4 million, down 4.8% from the previous year [1]. Earnings Projections - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not reassessed their initial estimates during this period [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts predict 'Revenue- Marketing fees' will reach $6.78 million, indicating a year-over-year decline of 4.5% [4]. - 'Revenue- Royalty fees' is estimated to be $12.26 million, reflecting a year-over-year change of -1.5% [5]. - The consensus for 'Revenue- Product sales' is $27.69 million, showing a decline of 6.1% from the prior-year quarter [5]. - The average prediction for 'Ending center count' is 1,061, compared to 1,051 from the previous year [5]. Stock Performance - Over the past month, shares of European Wax Center have decreased by 1.4%, while the Zacks S&P 500 composite has increased by 13.7% [6]. - EWCZ currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [6].

Company Overview - European Wax Center, Inc. is the leading franchisor and operator of out-of-home waxing services in the United States, with over 1,000 centers across 45 states [3] - The company performs more than 23 million services annually, providing a professional personal care experience in clean, individual waxing suites [3] - In fiscal 2024, the company generated sales of $951 million [3] Upcoming Financial Results - The company plans to report its first quarter fiscal 2025 financial results before the market opens on May 14, 2025 [1] - Following the release, management will host a conference call at 8:00 a.m. ET/7:00 a.m. CT to review the results [1] Innovation and Values - European Wax Center has revolutionized the waxing industry with its innovative Comfort Wax®, which is formulated with high-quality ingredients to enhance the waxing experience [3] - The company emphasizes its core values: We Care About Each Other, We Do the Right Thing, We Delight Our Guests, and We Have Fun While Being Awesome [3]

Subscribers get to use a 50+ stock model account, in-depth cash flow analyses of E&P firms, and live chat discussion of the sector. Crude Value Insights offers you an investing service and community focused on oil and natural gas. We focus on cash flow and the companies that generate it, leading to value and growth prospects with real potential. Sign up today for your two-week free trial and get a new lease on oil & gas! As somebody who is inquisitive by nature, I am always on the lookout for new and intere ...

"We are thrilled to enhance our EWC SLOW® line with the launch of the Face & Body Bi-Phase Moisturizer," said Chris Morris, Chief Executive Officer of European Wax Center. "This unique formula is clinically tested and demonstrated to help nourish the skin and provide all-day moisturization, which, in turn, delivers a smoother, more comfortable waxing experience for our guests. Our dedication to skincare innovation is one of the many reasons guests trust EWC to reveal their most beautiful skin, and the bi-ph ...

USA Today and Plant-A Insights Group name waxing industry leader as one of the most trusted brands in the United States PLANO, Texas, March 27, 2025 /PRNewswire/ -- European Wax Center, Inc. (NASDAQ: EWCZ), the leading franchisor and operator of out-of-home waxing services in the United States, has been named one of America's Most Trusted Brands in 2025 by USA Today.In partnership with Plant-A Insights Group, America's Most Trusted Brands 2025 recognizes brands in the United States that consumers trust most ...