Financial Data and Key Metrics Changes - In Q2 2025, the company reported system-wide sales of $257.6 million, a decrease of 1% year-over-year, with same-store sales growth of 30 basis points [6][26] - Adjusted EBITDA for the quarter was $21.6 million, reflecting a 4.7% increase from $20.6 million in the prior year period, with an adjusted EBITDA margin of 38.7% [28][29] - Total revenue decreased by approximately $4 million or 6.6% to $55.9 million, primarily due to lower contributions from wholesale product and retail revenue [26][28] Business Line Data and Key Metrics Changes - The company opened two growth centers during the quarter and closed five, resulting in three net center closures, with a total of 1,059 centers at the end of Q2, flat year-over-year [26][30] - The company has seen an improvement in transaction growth, with same-store sales up 1.7% in June and 1.5% through the first five weeks of Q3 [8][9] Market Data and Key Metrics Changes - The company noted challenges in the California market, while improvements were observed in Texas, Florida, and New York [62] - The Wax Pass sales increased by almost 2% year-over-year, indicating stable customer engagement [66] Company Strategy and Development Direction - The company is focused on three strategic objectives: driving sales through traffic growth, improving profitability for franchisees, and implementing a more sophisticated development approach [10][20] - The leadership team has been expanded with the addition of a Chief Operating Officer and a Chief Development Officer to enhance operational execution and franchise development [10][21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamentals of the business and the potential for long-term growth, despite being in a transitional year [7][39] - The company is narrowing its full-year revenue outlook to between $940 million and $950 million, with same-store sales expected to be flat to up 1% for the full year [33][36] Other Important Information - The company ended the quarter with $63.9 million in cash and $388 million outstanding under senior secured notes, with a net leverage ratio of 4.2 times [30] - The company plans to maintain advertising expenses slightly above 3% of system-wide sales to support ongoing traffic-driving initiatives [37] Q&A Session Summary Question: What changes have been made to the grand opening playbook? - The company has refined its grand opening playbook to ensure centers are set up for success, focusing on staffing and training, which has led to improved ramping of new units [44] Question: How should we think about closure pace going forward? - The company aims to minimize negative impacts from closures by building a strong foundation for sustainable traffic growth and improving overall network health [49] Question: Are there notable changes at the store level or in center execution? - The company is focusing on both marketing and operational tactics to drive frequency with existing guests, with a strong partnership with franchisees [53] Question: What is the outlook for regional performance? - The company is seeing challenges in California but improvements in Texas and Florida, with a focus on using data analytics to engage guests effectively [62] Question: How is the new product launch performing? - The company is pleased with the acceptance of new products and continues to prioritize transaction counts while maintaining a focus on retail [64] Question: What is the trajectory of Wax Pass sales? - Wax Pass sales have increased by almost 2% year-over-year, indicating continued customer engagement [66]

Core Insights - European Wax Center, Inc. reported financial results for the second quarter of fiscal 2025, indicating a transitional year focused on strengthening the business foundation through data-driven strategies and disciplined execution [2][3] - The company aims to drive traffic and sales growth, improve profitability for franchisees, and pursue profitable expansion [3] Financial Performance - System-wide sales decreased by 1.0% to $257.6 million from $260.2 million in the prior year period, primarily due to a decline in same-day services and retail sales [6][7] - Total revenue for the quarter was $55.9 million, down 6.6% from $59.9 million in the prior year [6][7] - Same-store sales increased by 0.3% [6][7] - GAAP net income decreased by 9.0% to $5.4 million, while adjusted net income increased by 5.6% to $11.8 million [6][7] - Adjusted EBITDA rose by 4.7% to $21.6 million, with an adjusted EBITDA margin increase of 420 basis points to 38.7% [6][7] Year-to-Date Results - For the first half of fiscal 2025, system-wide sales increased by 0.4% to $483.5 million, driven by cash collected from wax pass sales [13] - Total revenue for the year-to-date period was $107.3 million, down 3.9% from the previous year [13] - Same-store sales increased by 0.5% [13] - Net income for the first half decreased by 16.9% to $8.0 million, while adjusted net income increased by 7.9% to $21.3 million [13] Balance Sheet and Cash Flow - The company ended the second quarter with $63.9 million in cash and cash equivalents and $388.0 million in borrowings outstanding [8] - Net cash provided by operating activities totaled $15.2 million during the quarter [8] Fiscal 2025 Financial Outlook - The company updated its fiscal 2025 outlook, projecting system-wide sales between $940 million and $950 million, total revenue between $205 million and $209 million, and same-store sales growth of 0.0% to 1.0% [9][11] - The adjusted net income outlook remains between $31 million and $33 million, with adjusted EBITDA also projected between $69 million and $71 million [11] Center Openings and Closures - Franchisees opened 2 centers and closed 5 during the second quarter, maintaining a total of 1,059 centers [6][7] - For fiscal 2025, the company estimates franchisees will open 10 to 12 new centers while closing 40 to 60 centers, resulting in a net closure of 28 to 50 centers [12]

Core Viewpoint - European Wax Center, Inc. is set to report its second quarter fiscal 2025 financial results on August 13, 2025, with a conference call scheduled for 8:00 a.m. ET [1] 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 44 states [3] - The company performs more than 23 million services annually, focusing on providing a professional personal care experience [3] - In fiscal 2024, the company generated sales of $951 million [3] - The company utilizes its proprietary Comfort Wax® and offers a range of products to enhance waxing results [3] - European Wax Center is recognized as a Certified™ Great Place to Work® [3]

Core Insights - European Wax Center, Inc. has been recognized in Entrepreneur Magazine's 2025 Top Franchises for Multi-Unit Owners and Best of the Best Franchises lists, highlighting its strong market position and brand reputation [1][2]. Company Overview - European Wax Center is the leading franchisor and operator of out-of-home waxing services in the United States, with over 1,000 locations across 45 states [5]. - The company performed more than 23 million services in the previous year and generated sales of $951 million in fiscal 2024 [5]. Franchise Performance - The brand ranked among the top 20 on Entrepreneur's Top Brands for Multi-Unit Owners list, improving its position from 2024 [2]. - It was also recognized as the top waxing franchise in the Best of the Best Franchises list [2]. Franchisee Support - European Wax Center provides robust support to its franchisees, including comprehensive training, multi-channel marketing, real estate guidance, and guest retention tools [3]. - A significant portion of franchisees are multi-unit owners, with one-fifth operating five or more centers [3]. Brand Values and Innovation - The company emphasizes its core values: caring for each other, doing the right thing, delighting guests, and having fun while being awesome [5]. - European Wax Center has developed an innovative Comfort Wax® to enhance the waxing experience, making it more efficient and less painful [5].

Group 1: European Wax Center, Inc. (EWCZ) - European Wax Center is a franchisor and operator of out-of-home waxing services with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings increased by 96.8% over the last 60 days [1] - The company's shares gained 30.8% over the last three months, outperforming the S&P 500's advance of 5.3% [1] - European Wax Center possesses a Momentum Score of A [1] Group 2: Carlsberg A/S (CABGY) - Carlsberg is a producer of beer and other beverage products with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings increased by 6.1% over the last 60 days [2] - Carlsberg's shares gained 41.2% over the last six months, significantly outperforming the S&P 500's advance of 1.9% [2] - The company also possesses a Momentum Score of A [2]

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]

Financial Performance - Consolidated service revenue decreased by 4.9% YoY to $650.7 million in 1Q 2025[40] - Consolidated Adjusted EBITDA increased by 1.4% YoY to $32.6 million in 1Q 2025[40] - Net loss was $50.4 million in 1Q 2025[40] Segment Performance (1Q 2025) - NEMT service revenue was $449.0 million, a decrease of 6.3% YoY, with Adjusted EBITDA of $27.8 million, an increase of 2.5% YoY[40] - PCS service revenue was $181.8 million, a decrease of 1.0% YoY, with Adjusted EBITDA of $12.2 million, an increase of 8.5% YoY[40] - Monitoring service revenue was $18.1 million, a decrease of 9.8% YoY, with Adjusted EBITDA of $5.2 million, a decrease of 17.4% YoY[40] NEMT Segment Details - NEMT total paid trips decreased by 4.0% YoY to 8,458[58] - NEMT revenue per trip decreased by 2.4% YoY to $53.09[58] - NEMT revenue per member per month increased 15.6% to $6.35[58] PCS Segment Details - PCS total hours decreased by 2.1% YoY to 6,818[64] - PCS revenue per hour increased by 1.1% YoY to $26.66[64] - PCS service expense per hour increased by 0.8% YoY to $21.64[64] Monitoring Segment Details - Monitoring members decreased by 7.3% YoY to 231K[70] - Monitoring revenue per member per month decreased by 2.8% YoY to $26.15[70] - Monitoring service expense per member per month decreased by 1.1% YoY to $11.07[70]

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]