European Wax Center(US:EWCZ) Globenewswire·2025-11-12 11:00Core Insights - European Wax Center, Inc. reported solid third-quarter performance, focusing on traffic growth, franchisee profitability, and disciplined expansion [3][6][9] - The company ended the quarter with 1,053 centers, a 1.0% decrease from the previous year [6][7] - System-wide sales were $238.2 million, down 0.8% from $240.2 million in the prior year [6][7] - Total revenue decreased by 2.2% to $54.2 million compared to $55.4 million in the prior year [6][7] - Same-store sales increased by 0.2% [6][7] - GAAP net income rose 164.4% to $5.4 million, while adjusted net income increased by 14.2% to $10.7 million [6][7] - Adjusted EBITDA grew by 9.6% to $20.2 million, with an adjusted EBITDA margin of 37.2% [6][7] Financial Performance - Year-to-date system-wide sales were flat at $721.7 million compared to the prior year-to-date period [7] - Total revenue for the first three quarters decreased by 3.4% to $161.5 million [7] - Selling, general and administrative expenses decreased by 25.4% to $13.0 million [7] - Interest expense increased slightly to $6.5 million from $6.3 million in the prior year [7] - The effective tax rate decreased to 27.4% from 28.7% in the prior year [7] Balance Sheet and Cash Flow - The company ended the quarter with $73.6 million in cash and cash equivalents and $6.4 million in restricted cash [8] - Net cash provided by operating activities totaled $17.3 million during the quarter [8] - The company repurchased approximately 1.2 million shares for $4.6 million, with cumulative repurchases reaching $45.9 million under a $50 million authorization [7][8] Fiscal 2025 Outlook - The company reiterated its fiscal 2025 outlook for system-wide sales between $940 million and $950 million [9] - Franchisees are expected to open 12 new centers while closing 35 to 40 centers, resulting in a net decrease of 23 to 28 centers for the fiscal year [10]