Executive Summary

Q4 FY2025 results are not yet reported; the latest quarter is Q3 FY2025 (13 weeks ended October 4, 2025). EWCZ reiterated full-year FY2025 guidance and narrowed the range of anticipated closures, while delivering margin expansion and stable comps .
Q3 FY2025 highlights: Revenue $54.2M (-2.2% YoY), Adjusted EBITDA $20.2M (+9.6% YoY, 37.2% margin, +400 bps), Same-store sales +0.2%, System-wide sales $238.2M (-0.8% YoY). Net income rose to $5.4M (+164.4% YoY) as SG&A fell on nonrecurring prior-year items .
Guidance: FY2025 System-wide Sales $940–$950M; Revenue $205–$209M; SSS flat to +1%; Adjusted EBITDA $69–$71M; Adjusted Net Income $31–$33M—all reaffirmed in Q3, after a revenue range trim at Q2; net closures now -23 to -28 (12 openings; 35–40 closures) vs. prior -28 to -50 .
Strategic execution: management emphasized a data-driven marketing engine (higher guest contactability, lower acquisition costs), franchisee operational support (new COO), and disciplined development (targeting return to net unit growth by end of 2026). Emerging “green shoots” in guest frequency and efficiency were cited .

What Went Well and What Went Wrong

What Went Well
- Margin expansion and cost control: Adjusted EBITDA margin improved to 37.2% (+400 bps YoY); SG&A declined on nonrecurring items not repeating (severance, terminated debt offering) .
- Data-driven marketing traction: Q3 influencer content efficiency improved ~75%; Eyebrow Day strategy generated >75M impressions and a 53% lift in unique website visitors; expanding guest contactability is supporting frequency gains .
- Network health signals: Closure outlook narrowed to 35–40 for FY2025 (from 40–60) and return to positive net center growth by end of 2026 reiterated, reflecting franchisee engagement and targeted support .
What Went Wrong
- Top-line softness: Total revenue fell 2.2% YoY on lower wholesale and retail mix; system-wide sales -0.8% with closed centers weighing on volume .
- New guest acquisition lagged: Management acknowledged slower-than-hoped momentum vs. existing guest frequency initiatives, with improvements expected to show more in 2026 .
- Regional pockets of weakness: Stability overall, but persistent softness in New York, Philadelphia and DC (with California showing improvement) .

Financial Results

Revenue, EPS, margins and profitability by quarter (FY2025 YTD)

Metric	Q1 FY2025	Q2 FY2025	Q3 FY2025
Total Revenue ($M)	$51.4	$55.9	$54.2
System-wide Sales ($M)	$225.9	$257.6	$238.2
Same-Store Sales (%)	+0.7%	+0.3%	+0.2%
Net Income ($M)	$2.6	$5.4	$5.4
Diluted EPS ($)	$0.04	$0.09	$0.09
Adjusted Net Income ($M)	$9.5	$11.8	$10.7
Adjusted EBITDA ($M)	$18.8	$21.6	$20.2
Adjusted EBITDA Margin (%)	36.5%	38.7%	37.2%
Gross Margin (%)	—	74.6%	73.3%

Revenue mix by quarter

Revenue Component ($M)	Q1 FY2025	Q2 FY2025	Q3 FY2025
Product Sales	$28.9	$30.5	$30.6
Royalty Fees	$12.4	$14.3	$13.2
Marketing Fees	$7.2	$8.1	$7.6
Other Revenue	$2.9	$3.0	$2.8
Total Revenue	$51.4	$55.9	$54.2

KPIs and network metrics

KPI	Q1 FY2025	Q2 FY2025	Q3 FY2025
Centers (End of Qtr)	1,062	1,059	1,053
Openings / Closures	5 / 10	2 / 5	3 / 9
Operating Cash Flow ($M)	$12.7	$15.2	$17.3
Cash & Equivalents ($M)	$58.3	$63.9	$73.6
Senior Secured Notes ($M)	$389.0	$388.0	$387.0
Net Leverage (TTM)	4.3x	4.2x	3.9x

Notes: Q3 revenue -2.2% YoY, Adj. EBITDA +9.6% YoY, Adj. EBITDA margin +400 bps YoY; system-wide sales -0.8% YoY; SSS +0.2% .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
System-wide Sales	FY2025	$940–$960M (Q1)	$940–$950M (Q2/Q3)	Lowered range at Q2; reiterated Q3
Total Revenue	FY2025	$210–$214M (Q1)	$205–$209M (Q2/Q3)	Lowered at Q2; reiterated Q3
Same-Store Sales	FY2025	0.0% to 2.0% (Q1)	0.0% to 1.0% (Q2/Q3)	Lowered at Q2; reiterated Q3
Adjusted EBITDA	FY2025	$69–$71M (Q1)	$69–$71M (Q2/Q3)	Maintained
Adjusted Net Income	FY2025	$31–$33M (Q1)	$31–$33M (Q2/Q3)	Maintained
Net Openings (NCO)	FY2025	10–12 opens; 40–60 closures ⇒ -28 to -50 net (Q1)	12 opens; 35–40 closures ⇒ -23 to -28 net (Q3)	Fewer closures, slightly more opens

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2)	Current Period (Q3)	Trend
Data-driven marketing & contactability	Building a “digital-first marketing engine”; early traction in new guests and frequency; contactability up from 38% to 57%; up to ~40% lower cost per acquisition from refined media strategy .	Overhauled influencer strategy with new agency; ~75% efficiency gains; “Eyebrow Day” drove >75M impressions and +53% unique web visitors; focus on scaling paid media and referral program .	Improving execution and efficiency .
Franchisee ops excellence & support	Tools for tracking/accountability; 2,000+ touchpoints, 400 field visits; engaged centers +170 bps EBITDA margin; new COO announced .	New COO active in the field, focus on center “controllables,” training, and profitability; technology/analytics to unlock unit-level upside .	Strengthening field operations .
Unit closures & development	Closures planned (40–60) and return to positive NCO by end of 2026 reiterated; ramp improvements from grand opening playbook .	Closures narrowed to 35–40; still targeting return to net unit growth by end of 2026; focus on underpenetrated markets and rigorous site approval .	Risk moderating; trajectory intact .
Supply chain & tariffs	Proactive mitigation; Q1 franchisee orders likely pulled forward on tariff expectations .	Continued diversification and optimization to manage tariff impacts; EBITDA outlook intact .	Manageable with mitigations .
Regional trends	West Coast challenges; improvements in TX/FL/NY .	Improvement in California; relative weakness in NY/Philadelphia/DC; overall stable .	Mixed; stabilizing .

Management Commentary

CEO Chris Morris on Q3 progress and focus: “We’re reaffirming our full-year financial guidance... anchored in three clear strategic priorities: driving sales through traffic growth, improving four-wall profitability... and pursuing disciplined, profitable expansion” .
On marketing execution: “Our improved capabilities allowed us to pivot... scale guest acquisition through paid media... influencer content… showing a 75% improvement in efficiency” .
On development outlook: “We now expect total closures to be between 35 and 40 for the year… We remain on track to return to positive net center growth by year-end 2026” .
From the Q3 press release: “Adjusted EBITDA of $20.2 million increased 9.6%... Adjusted EBITDA Margin increased 400 basis points to 37.2%” .

Q&A Highlights

Existing guest frequency and contactability: Contactability improved from 38% to 60% YTD, enabling more targeted engagement; management is “seeing meaningful progress” in improving frequency cohorts .
New guest acquisition: Still behind expectations relative to existing guest initiatives; enhanced analytics and brand work expected to support 2026 acceleration .
Closures and unit growth: 2025 closures narrowed to 35–40; return to positive NCO by end of 2026 reiterated; lease timing influences closure cadence .
Modeling Q4: CFO cited timing of operating expense shifts into Q4 (marketing/technology) within an unchanged FY Adjusted EBITDA outlook .
Regional demand: Improvement in California; relative softness in NY/Philadelphia/DC; core guest stable, Wax Pass sales slightly up YoY .

Estimates Context

Wall Street consensus (S&P Global) for Q4 FY2025 and FY2025 was unavailable due to API request limits at the time of retrieval. Values could not be displayed and will be updated when accessible.
Without consensus, we cannot assess Q3 vs. estimates or Q4 pre-announcement setup. Management reaffirmed FY2025 guidance and highlighted timing of certain expenses into Q4 .
Disclaimer: Values retrieved from S&P Global would be shown here if available.

Key Takeaways for Investors

Margin-led story near term: Despite modest revenue pressure, cost discipline and mix drove strong margin expansion; FY Adjusted EBITDA outlook held at $69–$71M .
Evidence of execution: Marketing efficiency gains (influencer, paid media, referral) and higher guest contactability suggest a more effective traffic engine heading into 2026 .
Network risk moderating: Closure range narrowed (35–40), with plan to return to positive net center growth by end of 2026; development processes tightened (site approvals, analytics) .
Balanced regional trends: California improving, offset by weakness in Northeast urban markets; broad stability otherwise .
Watch Q4 timing: Some operating expenses shift into Q4; no change to FY EBITDA outlook, but near-term quarterly cadence may be noisy .
2026 setup: Expect greater contribution from new guest acquisition and brand work in 2026; sustained ops support to drive four-wall profitability and center performance .
Catalysts: Consistent execution vs. reiterated FY guide, visible stabilization in comps, further reductions in closure risk, and tangible improvements in guest frequency/marketing ROI .

Appendix: Additional Data (YoY commentary per company disclosures)

Q3 FY2025: Revenue -2.2% YoY; Adj. EBITDA +9.6% YoY (+400 bps margin); SSS +0.2%; System-wide sales -0.8% .
YTD through Q3: Adjusted EBITDA $60.6M (+7.1% YoY), margin +370 bps to 37.5%; Net income $13.3M (+14.8% YoY) .

Document Availability Note

Q4 FY2025 8-K Item 2.02 and the related earnings call transcript are not yet published as of now. Latest available materials are Q3 FY2025 8-K and press release (Nov 12, 2025) and the Q3 FY2025 earnings call transcript (Nov 12, 2025) .

European Wax Center, Inc. (EWCZ)·Q4 2025 Earnings Summary