European Wax Center(EWCZ) - 2025 Q3 - Quarterly Results

Revenue Performance - Total revenue for Q3 FY2025 was $54.2 million, a decrease of 2.2% compared to $55.4 million in Q3 FY2024[5] - Total revenue for the thirteen weeks ended October 4, 2025, was $54,185,000, a decrease of 2.2% compared to $55,430,000 for the same period in 2024[33] - Total revenue for the thirty-nine weeks ended October 4, 2025, was $161,523,000, compared to $167,175,000 for the same period in 2024, indicating a decline of 3.9%[41] Sales Metrics - System-wide sales decreased by 0.8% to $238.2 million from $240.2 million in the prior year period[6] - Same-store sales increased by 0.2% in Q3 FY2025[5] - Same-store sales growth is driven by increases in the number of transactions and average transaction size, reflecting the performance of existing centers[29] Income and Profitability - GAAP net income increased by 164.4% to $5.4 million from $2.0 million in the prior year[6] - Net income for the thirteen weeks ended October 4, 2025, was $5,367,000, compared to $2,030,000 for the same period in 2024, representing a 164% increase[36] - Adjusted net income for FY2025 is expected to be between $31 million and $33 million[10] - Adjusted Net Income for the thirty-nine weeks ended October 4, 2025, was $31,967,000, up from $29,086,000 in the prior year, reflecting a 9.7% growth[36] - Net income margin for the thirteen weeks ended October 4, 2025, was 9.9%, compared to 3.7% in the prior year, showing an improvement of 6.2 percentage points[41] EBITDA Metrics - Adjusted EBITDA for Q3 FY2025 was $20.2 million, reflecting a 9.6% increase from $18.4 million in Q3 FY2024[6] - Adjusted EBITDA for the trailing twelve months ended October 4, 2025, was $79,536,000, an increase from $56,550,000 in the previous year, marking a 40.6% rise[41] - Adjusted EBITDA margin for the thirty-nine weeks ended October 4, 2025, was 37.5%, up from 33.8% in the previous year, reflecting a 3.7 percentage point increase[41] Shareholder Actions - The company repurchased approximately 1.2 million shares for $4.6 million during the quarter, with cumulative repurchases reaching $45.9 million[7] Center Operations - The company ended Q3 FY2025 with 1,053 centers, a 1.0% decrease from 1,064 centers in the prior year[5] - The company estimates 12 new centers will open and 35 to 40 centers will close in FY2025, resulting in a net decrease of 23 to 28 centers[12] Cash and Assets - Cash and cash equivalents increased to $73,600,000 as of October 4, 2025, compared to $49,725,000 as of January 4, 2025[31] - Total assets as of October 4, 2025, were $720,697,000, up from $707,067,000 as of January 4, 2025[31] - Total liabilities as of October 4, 2025, were $615,888,000, slightly up from $615,475,000 as of January 4, 2025[31] Debt and Expenses - Long-term debt, net, was $374,412,000 as of October 4, 2025, compared to $373,246,000 as of January 4, 2025[31] - Interest expense for the thirty-nine weeks ended October 4, 2025, was $19,747,000, compared to $19,043,000 in the prior year, representing a 3.7% increase[41] - Legal settlements for the thirteen weeks ended October 4, 2025, amounted to $261,000, while the previous year reported no legal settlements, indicating a new expense category[41] Royalty Revenue - The company’s royalty revenue is calculated based on a percentage of franchised center sales, which is 6.0% of sales, net of retail product sales[28]