Fiscal Year 2025 versus 2024
-- 1,047 total centers in 44 states, a 1.9% decrease versus 1,067 centers in
the prior year period.
-- System-wide sales of $947.3 million decreased 0.4%
-- Total revenue of $206.6 million decreased 4.7%
-- Same-store sales increased 0.2%
-- GAAP net income of $11.9 million decreased 19.2%
-- Adjusted Net Income of $36.2 million decreased 11.6%
-- Adjusted EBITDA of $73.3 million decreased 3.0%
PLANO, Texas, March 04, 2026 (GLOBE NEWSWIRE) -- Today, European Wax Center, Inc. (NASDAQ: EWCZ), the leading franchisor and operator of out-of-home waxing services in the United States, reports financial results for the 13 and 52 weeks ended January 3, 2026.
Results for the Fourth Quarter of Fiscal 2025 versus Fiscal 2024
-- Franchisees opened 1 and closed 7 centers. We ended the quarter with
1,047 centers, representing a 1.9% decrease versus 1,067 centers in the
prior year period.
-- System-wide sales of $225.6 million decreased 1.6% from $229.3 million in
the prior year period, primarily driven by a shift in service mix.
-- Total revenue of $45.1 million decreased 9.3% from $49.7 million in the
prior year period.
-- Same-store sales decreased 0.1%.
-- Selling, general and administrative expenses ("SG&A") of $15.5 million
increased 4.3% from $14.8 million in the prior year period. SG&A as a
percent of total revenue increased 450 basis points to 34.3% from 29.8%
primarily driven by strategic investments in headcount to support
long-term growth initiatives and lower revenue primarily resulting from
one-time support investments to franchisees.
-- Interest expense, net of $6.6 million increased from $6.4 million in the
prior year period.
-- Income tax benefit decreased to $0.7 million from $1.6 million in the
prior year period primarily due to an increase in state and local taxes,
partially offset by the pretax loss in the current period.
-- Net loss of $1.5 million decreased 147.5% from net income of $3.1 million,
and Adjusted Net Income of $4.2 million decreased 64.4% from $11.9
million in the prior year period. Net loss margin decreased 940 basis
points to 3.2% from net income margin of 6.2%.
-- Adjusted EBITDA of $12.7 million decreased 33.1% from $19.0 million in
the prior year period. Adjusted EBITDA Margin decreased 1,000 basis
points to 28.1% from 38.1%.
Annual Results for Fiscal 2025 versus Fiscal 2024
-- Franchisees opened 11 and closed 31 centers in fiscal 2025.
-- System-wide sales of $947.3 million decreased 0.4% from $951.0 million
compared to the prior year.
-- Total revenue of $206.6 million decreased 4.7% from $216.9 million in the
prior year.
-- Same-store sales increased 0.2%.
-- Selling, general and administrative expenses ("SG&A") of $58.4 million
decreased 0.6% from $58.7 million in the prior year. SG&A as a percent of
total revenue increased 110 basis points to 28.2% from 27.1% primarily
driven by lower revenue, as SG&A expenses were generally consistent
year-over-year.
-- Interest expense, net of $26.3 million increased from $25.5 million in
the prior year.
-- Income tax expense increased to $4.7 million from $2.2 million in the
prior year. The effective tax rate increased to 28.5% from 13.0% in the
prior year-to-date period, primarily due to an increase related to our
investment in EWC Ventures LLC, an increase related to state and local
taxes, partially offset by decreases related to equity-based
compensation.
-- Net income of $11.9 million decreased 19.2% from $14.7 million, and
Adjusted Net Income of $36.2 million decreased 11.6% from $40.9 million
in the prior year. Net income margin decreased 110 basis points to 5.7%
from 6.8%.
-- Adjusted EBITDA of $73.3 million decreased 3.0% from $75.5 million in the
prior year. Adjusted EBITDA Margin increased 70 basis points to 35.5%
from 34.8%.
-- The Company repurchased approximately 1.4 million shares of its Class A
Common Stock during the period for $5.7 million, bringing cumulative
repurchases under the Company's current $50 million authorization to
$45.9 million.
Balance Sheet and Cash Flow
The Company ended the year with $76.1 million in cash and cash equivalents, $6.4 million in restricted cash, $386.0 million in borrowings outstanding under its senior secured notes and no outstanding borrowings under its revolving credit facility. Net cash provided by operating activities totaled $7.8 million during the quarter and $53.0 million in fiscal 2025.
2026 Outlook and Conference Call Update
On February 10, 2026, European Wax Center, Inc. announced that it entered into a definitive agreement to be taken private by General Atlantic, a leading global investor, in an all-cash transaction. Upon completion of the transaction, European Wax Center's class A common stock will no longer be publicly listed, and European Wax Center will become a privately held company. In light of the transaction, European Wax Center will not host a conference call or provide financial guidance for fiscal year 2026 in conjunction with this quarter's report. For further detail concerning the Proposed Transaction, please refer to our Current Report on Form 8-K filed with the SEC on February 10, 2026. For further detail and discussion of our financial performance, please refer to our Annual Report on Form 10-K for the fiscal year 2025 ended January 3, 2026 upon its filing with the SEC.
About European Wax Center, Inc.
European Wax Center, Inc. (NASDAQ: EWCZ) is the leading franchisor and operator of out-of-home waxing services in the United States. European Wax Center locations perform approximately 23 million services per year, providing guests with an unparalleled, professional personal care experience administered by highly trained wax specialists within the privacy of clean, individual waxing suites. The Company continues to revolutionize the waxing industry with its innovative Comfort Wax$(R)$ formulated with the highest quality ingredients to make waxing a more efficient and relatively painless experience, along with its collection of proprietary products to help enhance and extend waxing results. By leading with its values -- We Care About Each Other, We Do the Right Thing, We Delight Our Guests, and We Have Fun While Being Awesome -- the Company is proud to be Certified$(TM)$ by Great Place to Work(R). European Wax Center, Inc. was founded in 2004 and is headquartered in Plano, Texas. Its network, which includes more than 1,000 centers in 44 states, generated sales of $947 million in fiscal 2025. For more information, including how to receive your first wax free, please visit: https://waxcenter.com.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements in this press release include but are not limited to European Wax Center, Inc.'s strategy, outlook and growth prospects, its operational and financial outlook for fiscal 2025, expected center openings and closures, its capital allocation strategy, including the share repurchase program and its long-term targets and algorithm, including but not limited to statements under the headings "Fiscal 2025 Financial Outlook" and "Fiscal 2025 Net New Center Outlook" and statements by European Wax Center's chief executive officer. Words including "anticipate," "believe," "continue," "could," "estimate," "expect," "likely," "intend," "may," "might," "plan," "potential," "predict," "project," "seek," "should," "will," or "would," or, in each case, the negative thereof or other variations thereon or comparable terminology are intended to identify forward-looking statements. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking.
These forward-looking statements are based on current expectations and beliefs. These statements are neither promises nor guarantees, and involve known and unknown risks, uncertainties and other important factors that may cause the Company's actual results, performance or achievements to be materially different than the results, performance or achievements expressed or implied by the forward-looking statements. Some of the key factors that could cause actual results to differ from the Company's expectations include, but are not limited to, the following risks related to its business: the operational and financial results of franchisees; the ability of its franchisees to enter new markets, select appropriate sites for new centers or open new centers; the effectiveness of the Company's marketing and advertising programs and the active participation of franchisees in enhancing the value of its brand; the failure of its franchisees to participate in and comply with its agreements, business model and policies; the Company's and its franchisees' ability to attract and retain guests; the effect of social media on the Company's reputation; the Company's ability to compete with other industry participants and respond to market trends and changes in consumer preferences; the effect of the Company's planned growth on its management, employees, information systems and internal controls; the Company's ability to retain and effectively respond to a loss of key executives; recruitment efforts; a significant failure, interruptions or security breach of the Company's computer systems or information technology; the Company and its franchisees' ability to attract, train, and retain talented wax specialists and managers; changes in the availability or cost of labor; the Company's ability to retain its
franchisees and to maintain the quality of existing franchisees; failure of the Company's franchisees to implement business development plans; the ability of the Company's limited key suppliers, including international suppliers, and distribution centers to deliver their products; changes in supply costs and decreases in the Company's product sourcing revenue, including due to the imposition of tariffs; the Company's ability to adequately protect its intellectual property; the Company's substantial indebtedness; the impact of paying some of the Company's pre-IPO owners for certain tax benefits the Company may claim; changes in general economic and business conditions, including changes due to tariff policy and geopolitical tensions; the Company's and its franchisees' ability to comply with existing and future health, employment and other governmental regulations; complaints or litigation that may adversely affect the Company's business and reputation; the seasonality of the Company's business resulting in fluctuations in its results of operations; the impact of global crises on the Company's operations and financial performance; the impact of inflation and rising interest rates on the Company's business; the Company's access to sources of liquidity and capital to finance its continued operations and growth strategy and the other important factors discussed under the caption "Risk Factors" under Item 1A in the Company's Annual Report on Form 10-K for the year ended January 4, 2025 filed with the Securities and Exchange Commission (the "SEC"), as such factors may be updated from time to time in its other filings with the SEC, accessible on the SEC's website at www.sec.gov and Investors Relations section of the Company's website at www.waxcenter.com.
These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement that the Company makes in this press release speaks only as of the date of such statement. Except as required by law, the Company does not have any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.
Disclosure Regarding Non-GAAP Financial Measures
In addition to the financial measures presented in this release in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), the Company has included certain non-GAAP financial measures in this release, including Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Net Income and Net Leverage Ratio. Management believes these non-GAAP financial measures are useful because they enable management, investors, and others to assess the operating performance of the Company.
We define EBITDA as net income (loss) before interest, taxes, depreciation and amortization. We believe that EBITDA, which eliminates the impact of certain expenses that we do not believe reflect our underlying business performance, provides useful information to investors to assess the performance of our business.
We define Adjusted EBITDA as net income (loss) before interest, taxes, depreciation and amortization, adjusted for the impact of certain additional non-cash and other items that we do not consider in our evaluation of ongoing performance of our core operations. These items include non-cash equity-based compensation expense, non-cash gains and losses on remeasurement of our tax receivable agreement liability, contractual cash interest on our tax receivable agreement liability, loss on disposal or impairment of assets, transaction costs, business transformation costs and other one-time expenses and/or gains. Business transformation costs primarily include expenses related to our business transformation and optimization efforts that do not qualify as capital expenditures under applicable accounting principles.
We define Adjusted EBITDA Margin as Adjusted EBITDA divided by total revenue.
We define Adjusted Net Income (Loss) as net income (loss) adjusted for the impact of certain additional non-cash and other items that we do not consider in our evaluation of ongoing performance of our core operations. These items include non-cash equity-based compensation expense, amortization of intangible assets, debt extinguishment costs, non-cash gains and losses on remeasurement of our tax receivable agreement liability, contractual cash interest on our tax receivable agreement liability, loss on disposal or impairment of assets, transaction costs, business transformation costs and other one-time expenses and/or gains. Prior to the first quarter of 2025, the Company did not include amortization of intangible assets in the calculation. However, the Company revised the definition in the first quarter of 2025 as a result of a change in the way management reviews Adjusted Net Income (Loss) in order to remove the impact of the non-cash amortization of intangible assets which management does not view as part of our core operations. Management believes excluding this enables investors to evaluate more clearly and consistently the Company's core operating performance in the same manner that management evaluates its core operating performance. The comparative period was also adjusted based on the revised definition.
We define Net Leverage Ratio as the total principal balance of our outstanding debt ("total debt") less cash and cash equivalents, then divided by Adjusted EBITDA for the trailing twelve months.
Please refer to the reconciliations of non-GAAP financial measures to their GAAP equivalents located at the end of this release. This release includes forward-looking guidance for certain non-GAAP financial measures, including Adjusted EBITDA and Adjusted Net Income. These measures will differ from net income (loss), determined in accordance with GAAP, in ways similar to those described in the reconciliations at the end of this release. We are not able to provide, without unreasonable effort, guidance for net income (loss), determined in accordance with GAAP, or a reconciliation of guidance for Adjusted EBITDA and Adjusted Net Income (Loss) to the most directly comparable GAAP measure because the Company is not able to predict with reasonable certainty the amount or nature of all items that will be included in net income (loss).
Glossary of Terms for Our Key Business Metrics
System-Wide Sales. System-wide sales represent sales from same day services, retail sales and cash collected from wax passes for all centers in our network, including both franchisee-owned and corporate-owned centers. While we do not record franchised center sales as revenue, our royalty revenue is calculated based on a percentage of franchised center sales, which are 6.0% of sales, net of retail product sales, as defined in the franchise agreement. This measure allows us to better assess changes in our royalty revenue, our overall center performance, the health of our brand and the strength of our market position relative to competitors. Our system-wide sales growth is driven by net new center openings as well as increases in same-store sales.
Same-Store Sales. Same-store sales reflect the change in sales over a comparable 52-week period year over year from services performed and retail sales for the same-store base. We define the same-store base to include those centers open for at least 52 full weeks. If a center is closed for greater than six consecutive days, the center is deemed a closed center and is excluded from the calculation of same-store sales until it has been reopened for a continuous 52 full weeks. This measure highlights the performance of existing centers, while excluding the impact of new center openings and closures. We review same-store sales for corporate-owned centers as well as franchisee-owned centers. Same-store sales growth is driven by increases in the number of transactions and average transaction size.
EUROPEAN WAX CENTER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share
amounts)
January 3, 2026 January 4, 2025
----------------- -----------------
ASSETS
Current assets:
Cash and cash equivalents $ 76,060 $ 49,725
Restricted cash 6,421 6,469
Accounts receivable, net 10,957 7,283
Inventory, net 17,772 19,070
Prepaid expenses and other
current assets 5,329 5,292
------------- -------------
Total current assets 116,539 87,839
Property and equipment, net 10,788 2,313
Operating lease right-of-use
assets 3,378 3,313
Intangible assets, net 412,826 432,160
Goodwill 39,112 39,112
Deferred income taxes 141,332 140,315
Other non-current assets 1,285 2,015
------------- -------------
Total assets $ 725,260 $ 707,067
============= =============
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable and
accrued liabilities $ 25,118 $ 17,354
Long-term debt, current
portion 4,000 4,000
Tax receivable agreement
liability, current
portion 8,735 9,353
Deferred revenue, current
portion 4,057 4,149
Operating lease
liabilities, current
portion 1,234 1,255
Total current liabilities 43,144 36,111
Long-term debt, net 374,827 373,246
Tax receivable agreement
liability, net of current
portion 192,735 194,917
Deferred revenue, net of
current portion 4,732 5,836
Operating lease liabilities,
net of current portion 2,244 2,318
Deferred tax liability 845 738
Other long-term liabilities 1,859 2,309
------------- -------------
Total liabilities 620,386 615,475
Commitments and contingencies
Stockholders' equity:
Preferred stock ($0.00001
par value, 100,000,000
shares authorized, none
issued and outstanding as
of January 3, 2026 and
January 4, 2025,
respectively) -- --
Class A common stock
($0.00001 par value,
600,000,000 shares
authorized, 53,576,183 and
51,713,132 shares issued
and 43,757,406 and
43,323,183 outstanding as
of January 3, 2026 and
January 4, 2025,
respectively) -- --
Class B common stock
($0.00001 par value,
60,000,000 shares
authorized, 10,628,216 and
12,005,172 shares issued
and outstanding as of
January 3, 2026 and
January 4, 2025,
respectively) -- --
Treasury stock, at cost,
9,818,777 and 8,389,949
shares of Class A common
stock as of January 3,
2026 and January 4, 2025,
respectively (86,240) (80,148)
Additional paid-in capital 257,246 244,611
Accumulated deficit (91,734) (100,416)
------------- -------------
Total stockholders'
equity attributable to
European Wax Center,
Inc. 79,272 64,047
Noncontrolling interests 25,602 27,545
------------- -------------
Total stockholders' equity 104,874 91,592
------------- -------------
Total liabilities and
stockholders' equity $ 725,260 $ 707,067
============= =============
EUROPEAN WAX CENTER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands)
For the Thirteen For the Years
Weeks Ended Ended
-------------------- ------------------
January January January January
3, 2026 4, 2025 3, 2026 4, 2025
-------- --------- -------- --------
REVENUE
Product sales $ 22,574 $ 26,348 $112,566 $121,453
Royalty fees 12,508 12,780 52,409 53,094
Marketing fees 7,222 7,330 30,107 30,171
Other revenue 2,799 3,283 11,544 12,198
------- -------- ------- -------
Total revenue 45,103 49,741 206,626 216,916
OPERATING EXPENSES
Cost of revenue 11,907 12,762 53,834 57,313
Selling, general
and
administrative 15,482 14,845 58,365 58,696
Advertising 7,883 4,276 30,898 32,949
Depreciation and
amortization 5,377 5,033 20,402 20,279
Loss (gain) on
disposal or
impairment of
assets -- -- 125 (2)
Gain on sale of
centers -- -- -- (81)
------- -------- ------- -------
Total
operating
expenses 40,649 36,916 163,624 169,154
------- -------- ------- -------
Income from
operations 4,454 12,825 43,002 47,762
------- -------- ------- -------
Interest
expense, net 6,560 6,449 26,307 25,492
Other expense 83 4,864 91 5,399
------- -------- ------- -------
(Loss) income
before income
taxes (2,189) 1,512 16,604 16,871
------- -------- ------- -------
Income tax
expense
(benefit) (728) (1,561) 4,735 2,190
------- -------- ------- -------
NET (LOSS) INCOME $ (1,461) $ 3,073 $ 11,869 $ 14,681
------- -------- ------- -------
Less: Net (loss)
income
attributable to
noncontrolling
interests (874) 1,105 3,187 4,219
------- -------- ------- -------
NET (LOSS) INCOME
ATTRIBUTABLE TO
EUROPEAN WAX
CENTER, INC. $ (587) $ 1,968 $ 8,682 $ 10,462
======= ======== ======= =======
EUROPEAN WAX CENTER, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
For the Years Ended
-------------------------------------
January 3, 2026 January 4, 2025
----------------- -----------------
Cash flows from operating
activities:
Net income $ 11,869 $ 14,681
Adjustments to reconcile
net income to net cash
provided by operating
activities:
Depreciation and
amortization 20,402 20,279
Amortization of deferred
financing costs 5,924 5,590
(Decrease) provision for
inventory obsolescence (61) 259
Provision for bad debts 17 570
Gain on sale of centers -- (81)
Loss on disposal of
property and equipment 125 3
Deferred income taxes 4,345 2,334
Remeasurement of tax
receivable agreement
liability 91 5,399
Equity compensation 6,531 5,150
Changes in assets and
liabilities:
Accounts receivable (3,690) 1,327
Inventory, net 1,359 1,418
Prepaid expenses and other
assets 1,315 2,800
Accounts payable and
accrued liabilities 7,566 (417)
Deferred revenue (1,196) (1,704)
Other long-term
liabilities (1,598) (1,102)
------------- -------------
Net cash provided by
operating activities 52,999 56,506
------------- -------------
Cash flows from investing
activities:
Purchases of property and
equipment (2,912) (521)
Cash received for sale of
center -- 135
------------- -------------
Net cash used in
investing activities (2,912) (386)
------------- -------------
Cash flows from financing
activities:
Principal payments on
long-term debt (4,000) (4,000)
Distributions to EWC
Ventures LLC members (3,754) (4,313)
Repurchase of Class A common
stock (6,092) (40,148)
Taxes on vested restricted
stock units paid by
withholding shares (171) (557)
Dividend equivalents to
holders of EWC Ventures
units (10) (789)
Payments pursuant to tax
receivable agreement (9,773) (9,347)
------------- -------------
Net cash used in
financing activities (23,800) (59,154)
------------- -------------
Net increase (decrease)
in cash, cash
equivalents and
restricted cash 26,287 (3,034)
Cash, cash equivalents and
restricted cash, beginning of
period 56,194 59,228
------------- -------------
Cash, cash equivalents and
restricted cash, end of
period $ 82,481 $ 56,194
============= =============
Supplemental cash flow
information:
Cash paid for interest $ 21,671 $ 21,894
Cash paid for income taxes $ 214 $ 498
Non-cash investing
activities:
Property purchases included
in accounts payable and
accrued liabilities $ 105 $ 593
Property purchases included
in additional paid-in capital $ 6,526 $ 116 Right-of-use assets obtained in exchange for operating lease liabilities $ 1,199 $ 592
Reconciliation of Net Income to Adjusted Net Income:
For the Thirteen For the Years
Weeks Ended Ended
-------------------- ------------------
January
January January January 4,
3, 2026 4, 2025 3, 2026 2025
-------- --------- -------- -------
(in thousands)
Net (loss) income $ (1,461) $ 3,073 $ 11,869 $14,681
Share-based
compensation(1) 1,165 945 6,531 5,150
Remeasurement of
tax receivable
agreement
liability(2) 83 4,864 91 5,399
Gain on sale of
center(3) -- -- -- (81)
Loss on disposal
or impairment of
assets(4) -- -- 125 --
Legal
settlements(5) -- 15 261 (724)
Executive
severance(6) -- -- 465 1,548
Reorganization
costs(7) -- 140 240 630
Business
transformation
costs(8) 1,686 -- 2,236 --
Terminated debt
offering
costs(9) -- (3) -- 941
Tax effect of
adjustments to
net income(10) (1,064) (916) (1,108) (1,930)
------- -------- ------- ------
Adjusted Net Income,
as previously
defined $ 409 $ 8,118 $ 20,710 $25,614
Amortization of
intangible
assets(11) 4,834 4,834 19,335 19,335
Tax effect of
adjustments to
net income(10) (1,025) (1,092) (3,860) (4,003)
------- -------- ------- ------
Adjusted Net Income $ 4,218 $ 11,860 $ 36,185 $40,946
------- -------- ------- ------
(1) Represents non-cash equity-based compensation expense.
(2) Represents non-cash adjustments related to the remeasurement of our tax receivable agreement liability.
(3) Represents gain on the sale of a corporate-owned center.
(4) Represents the loss on disposal or impairment of assets
(5) In the current fiscal year, the amount represents the estimated exposure to the Company resulting from a lawsuit, and in the prior fiscal year, the amount represents the collection of cash proceeds from a legal judgment, both of which were not resulting from our core operations.
(6) Represents cash severance paid or payable to former executives.
(7) Represents costs associated with the Company's return-to-office mandate.
(8) Represents costs related to our business transformation and optimization efforts that do not qualify as capital expenditures under applicable accounting principles.
(9) Represents costs related to a debt offering the Company evaluated and subsequently decided to terminate.
(10) Represents the estimated income tax impact of non-GAAP adjustments computed by applying our estimated blended statutory tax rate to our share of the identified items and incorporating the effect of nondeductible and other rate impacting adjustments. The tax effect of the add-back of share-based compensation results in a further increase to net income due to the elimination of the Section 162(m) permanent difference that resulted from nondeductible officer share-based compensation.
(11) Represents the amortization of franchisee relationships and reacquired rights.
Reconciliation of Net Income to EBITDA and Adjusted EBITDA:
Trailing
Twelve
For the Thirteen Months
Weeks Ended For the Years Ended Ended
----------------------- ---------------------- ---------
January January January January January
3, 2026 4, 2025 3, 2026 4, 2025 3, 2026
-------- --------- -------- -------- ---------
(in thousands)
Net (loss) income $ (1,461) $ 3,073 $ 11,869 $ 14,681 $ 11,869
Interest expense,
net 6,560 6,449 26,307 25,492 26,307
Income tax
expense
(benefit) (728) (1,561) 4,735 2,190 4,735
Depreciation and
amortization 5,377 5,033 20,402 20,279 20,402
------- -------- ------- ------- --------
EBITDA $ 9,748 $ 12,994 $ 63,313 $ 62,642 $ 63,313
Share-based
compensation(1) 1,165 945 6,531 5,150 6,531
Remeasurement of
tax receivable
agreement
liability(2) 83 4,864 91 5,399 91
Gain on sale of
center(3) -- -- -- (81) --
Loss on disposal
or impairment of
assets(4) -- -- 125 -- 125
Legal
settlements(5) -- 15 261 (724) 261
Executive
severance(6) -- -- 465 1,548 465
Reorganization
costs(7) -- 140 240 630 240
Business
transformation
costs(8) 1,686 -- 2,236 -- 2,236
Terminated debt
offering
costs(9) -- (3) -- 941 --
------- -------- ------- ------- --------
Adjusted EBITDA $ 12,682 $ 18,955 $ 73,262 $ 75,505 $ 73,262
------- -------- ------- ------- --------
Total revenue $ 45,103 $ 49,741 $206,626 $216,916 $ 206,626
Net income (loss)
margin (3.2)% 6.2% 5.7% 6.8% 5.7%
Adjusted EBITDA
Margin 28.1% 38.1% 35.5% 34.8% 35.5%
(1) Represents non-cash equity-based compensation expense.
(2) Represents non-cash adjustments related to the remeasurement of our tax receivable agreement liability.
(3) Represents gain on the sale of a corporate-owned center.
(4) Represents the loss on disposal or impairment of assets
(5) In the current fiscal year, the amount represents the amount recorded to SG&A relating to a lawsuit, and in the prior fiscal year, the amount represents the collection of cash proceeds from a legal judgment, both of which were not resulting from our core operations.
(6) Represents cash severance paid or payable to former executives.
(7) Represents costs associated with the Company's return-to-office mandate.
(8) Represents costs related to our marketing transformation and optimization efforts that do not qualify as capital expenditures under applicable accounting principles.
(9) Represents costs related to a debt offering the Company evaluated and subsequently decided to terminate.
Reconciliation of Total Debt to Net Leverage Ratio:
Trailing Twelve Months
January 3, 2026
(in thousands)
Total debt $ 386,000
Less: Cash and cash equivalents (76,060)
Net Debt $ 309,940
Adjusted EBITDA 73,262
Net Leverage Ratio 4.2 x
=== ===================
Contact
Edelman Smithfield for European Wax Center, Inc.
EWCIR@edelman.com
(END) Dow Jones Newswires
March 04, 2026 06:00 ET (11:00 GMT)
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