European Wax Center Reports $54.2 Million Revenue, Net Income Increases 164.4%

European Wax Center, Inc. reported a total revenue of $54.2 million for the thirteen weeks ended October 4, 2025, a decrease of 2.2% compared to $55.4 million for the same period in the previous year. The decline in revenue was primarily attributed to reduced transactions at existing centers, which negatively impacted product sales and royalty fees. Product sales fell to $30.6 million, down 3.4% from $31.7 million, while royalty fees decreased by 1.6% to $13.2 million. Despite these declines, the company experienced a slight increase in other revenue, which rose to $2.8 million, reflecting a 2.9% increase due to higher franchise fees from increased center transfers.

In terms of profitability, European Wax Center reported a net income of $5.4 million for the quarter, a significant increase of 164.4% from $2.0 million in the prior year. This growth in net income was driven by a reduction in operating expenses, which decreased by 12.3% to $40.3 million, primarily due to lower selling, general, and administrative expenses. The company’s income from operations also improved, rising 46.7% to $13.9 million, reflecting effective cost management strategies.

Operationally, the company faced challenges with a net loss of six centers during the quarter, bringing the total number of system-wide centers to 1,053. This included 1,048 franchised centers and five corporate-owned locations. The company reported system-wide sales of $238.2 million for the quarter, a slight decrease of 0.8% from the previous year, primarily driven by a decline in same-day services and retail sales. However, cash collected from the Wax Pass program showed an increase, partially offsetting the overall decline in sales.

Looking ahead, European Wax Center is focusing on stabilizing and realigning its business to enhance profitability at existing locations. The company has paused new center growth plans in the short term, anticipating more closures than openings in 2025. To support its long-term growth strategy, European Wax Center has recently expanded its management team, hiring a Chief Operating Officer and a Chief Development Officer. The company aims to return to positive net center growth by the end of 2026, while continuing to invest in its corporate infrastructure and marketing capabilities to drive traffic and sales growth.