European Wax Center (EWCZ) | News Based Sentiment Analysis

• On August 13, 2025, European Wax Center (EWC) released its Q2 fiscal 2025 earnings report, revealing a 6.6% decrease in revenue to $55.91 million compared to $59.91 million in the same quarter last year. Despite the revenue dip, adjusted EBITDA increased by 4.7% to $21.6 million, and the adjusted EBITDA margin improved by 420 basis points to 38.7%, showing some underlying strength in their operations.
• While revenue missed expectations of $56.89 million, EWC is seeing encouraging signs of recovery. Same-store sales increased by 1.7% in June and 1.5% through the first five weeks of Q3, suggesting that strategic initiatives are beginning to positively impact performance. This transaction growth is a key indicator to watch for future revenue improvements.
• EWC has narrowed its full-year guidance, now anticipating system-wide sales between $940 million and $950 million, and same-store sales to be flat to up 1%. Full-year revenue is projected to be between $205 million and $209 million, but adjusted EBITDA guidance remains unchanged, projecting between $69 million and $71 million.
• The company is investing in its leadership team, appointing Angela Jaskolski as Chief Operating Officer (COO) and Kurt Smith as Chief Development Officer (CDO) to accelerate operational excellence and development. This suggests a focus on strengthening internal capabilities for future growth.
• Newly appointed Chief Development Officer, Kurtis Matthew Smith, received a substantial equity package as an inducement grant, including 95,000 restricted stock units (RSUs) vesting between 2026-2029, and 350,000 stock options exercisable by July 22, 2029. This aligns Smith’s interests with long-term shareholder value and demonstrates confidence in his ability to drive development.
• EWC remains on track to open 10 to 12 new centers in 2025, with seven already opened and five currently under construction. While this expansion is expected to contribute to long-term growth, the immediate financial impact will be moderate.

The Investment Story: European Wax Center navigated a challenging quarter with declining revenue but demonstrated improved profitability and positive momentum in same-store sales, signaling potential for future recovery. Strategic leadership appointments and continued expansion efforts suggest a commitment to long-term growth.

What It Means for Investors: The mixed results indicate that EWC is facing short-term headwinds, but the improving EBITDA margin and positive same-store sales trends offer some optimism. Investors should monitor the company's ability to execute its strategic initiatives and achieve its revised full-year guidance.

Looking Ahead: Investors should watch for continued improvement in same-store sales and the impact of the new leadership team on operational efficiency. The success of the new center openings will also be a key factor to monitor.

The Bottom Line: European Wax Center is a work in progress. While revenue is currently under pressure, the company is taking steps to improve profitability and position itself for future growth, making it a potentially interesting opportunity for patient investors.