European Wax Center Reports Weak Q4 & FY25 Results Amidst Pending Take-Private Deal

summarizeSummary

European Wax Center, Inc. reported a net loss for Q4 2025 and significant declines in full-year profitability, with these results released in the context of its pending acquisition by General Atlantic.

check_boxKey Events

• Q4 2025 Financial Performance Declines

  The company reported a net loss of $1.5 million for Q4 2025, a 147.5% decrease from net income in the prior year. Adjusted Net Income fell 64.4% to $4.2 million, and Adjusted EBITDA decreased 33.1% to $12.7 million. Total revenue declined 9.3% to $45.1 million, and same-store sales decreased 0.1%.

• Full Year 2025 Profitability Weakens

  For the full fiscal year 2025, GAAP net income decreased 19.2% to $11.9 million, and Adjusted Net Income fell 11.6% to $36.2 million. Adjusted EBITDA decreased 3.0% to $73.3 million. Total revenue was down 4.7% to $206.6 million, while system-wide sales decreased 0.4%.

• Pending Acquisition Impacts Guidance

  In light of the definitive agreement to be taken private by General Atlantic, announced on February 10, 2026, European Wax Center will not host a conference call or provide financial guidance for fiscal year 2026. The company's Class A common stock will no longer be publicly listed upon completion of the transaction.

• Center Count Decreases and Leverage Remains High

  The company ended the year with 1,047 centers, a 1.9% decrease from the prior year, with 31 centers closed and 11 opened in fiscal 2025. The net leverage ratio stands at 4.2x, with $386.0 million in borrowings outstanding.

auto_awesomeAnalysis

European Wax Center, Inc. reported a net loss for the fourth quarter of fiscal year 2025 and significant declines in full-year profitability, with these results released in the context of its pending acquisition by General Atlantic. The company experienced a 147.5% decrease in Q4 net income, turning into a net loss, and a 33.1% drop in Adjusted EBITDA for the quarter. Full-year results also showed declines in total revenue, net income, and Adjusted EBITDA. The company's center count decreased, and its net leverage ratio stands at 4.2x. Due to the definitive agreement to be taken private, the company will not host a conference call or provide financial guidance for fiscal year 2026, as the stock is expected to delist upon completion of the transaction.