European Wax Center, Inc. Reports Fourth Quarter and Fiscal Year 2025 Results

Core Insights - European Wax Center, Inc. reported a decrease in total revenue and net income for fiscal year 2025 compared to fiscal year 2024, indicating challenges in maintaining growth and profitability [2][4][5] Financial Performance - Total revenue for fiscal year 2025 was $206.6 million, a decrease of 4.7% from $216.9 million in fiscal year 2024 [5] - GAAP net income for fiscal year 2025 was $11.9 million, down 19.2% from $14.7 million in the previous year [5] - Adjusted net income decreased by 11.6% to $36.2 million from $40.9 million year-over-year [5] - Adjusted EBITDA for fiscal year 2025 was $73.3 million, a decrease of 3.0% from $75.5 million in fiscal year 2024 [11] Operational Metrics - The company ended fiscal year 2025 with 1,047 centers, a 1.9% decrease from 1,067 centers in the prior year [5] - System-wide sales for fiscal year 2025 were $947.3 million, a slight decrease of 0.4% from $951.0 million in fiscal year 2024 [5] - Same-store sales increased by 0.2% in fiscal year 2025, indicating some stability in existing locations [5] Cost and Expenses - Selling, general and administrative expenses (SG&A) for fiscal year 2025 were $58.4 million, a decrease of 0.6% from $58.7 million in the previous year [5] - SG&A as a percentage of total revenue increased to 28.2% from 27.1%, primarily due to lower revenue [5] Balance Sheet and Cash Flow - The company ended the fiscal year with $76.1 million in cash and cash equivalents, an increase from $49.7 million in the prior year [6] - Net cash provided by operating activities totaled $53.0 million for fiscal year 2025, down from $56.5 million in fiscal year 2024 [6] Future Outlook - European Wax Center announced a definitive agreement to be taken private by General Atlantic in an all-cash transaction, which will result in the company's class A common stock no longer being publicly listed [7]