Unit economics improvement
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MINILUXE REPORTS FINANCIAL RESULTS FOR THE THIRD QUARTER AND YTD Q3 2025
Globenewswireยท 2025-11-20 01:43
Core Insights - MiniLuxe Holding Corp. reported continued double-digit system-wide sales growth and 10 consecutive quarters of unit economic improvement [1][6] Financial Performance - For Q3 2025, total revenue reached $7.261 million, reflecting a 7% year-over-year increase, while year-to-date (YTD) revenue was $20.873 million, an 8% increase [5][6] - Gross profit for Q3 2025 was $3.105 million, a 6% increase from the previous year, maintaining a gross margin of 43% [5][6] - Adjusted EBITDA for Q3 2025 was ($912,000), showing a 2% improvement compared to the previous year [5][12] Sales Growth - System-wide sales growth was 11% year-over-year for Q3 2025, totaling $7.6 million, with net revenue growth of 7% to $7.3 million [6] - Year-to-date sales growth also stood at 11%, with system-wide revenue at $21.6 million and net revenue at $20.9 million [6] Unit Economics - The company has seen improvements in unit economics for 10 consecutive quarters, driven by a favorable service mix and labor efficiency [6] - Cash contribution on a 4-wall basis for the full company-owned fleet increased approximately 40% year-over-year [6] Team and Client Metrics - The company reported an 87% year-over-year retention rate of hourly team members, with over 50% of the team having more than 5 years of tenure [6] - MiniLuxe achieved a net promoter score (NPS) of over 85, indicating strong client loyalty, with around 80% of clients being repeat customers [6] Growth Strategy - MiniLuxe's strategy includes strengthening unit economics across its 24 studios and expanding growth through mergers and acquisitions (M&A) and franchise partnerships [4][6] - The company signed a new franchise operating partner for the Connecticut region, covering three new sites, and is actively evaluating M&A opportunities [6]