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1. Company Snapshot

1.a. Company Description

European Wax Center, Inc.operates as the franchisor and operator of out-of-home waxing services in the United States.The company offers body and facial waxing services; and pre- and post-service products, including ingrown hair serums, exfoliating gels, brow shapers, and skin treatments.


As of March 26, 2022, it had a portfolio of centers operating in 874 locations across 44 states, including 868 franchised centers and six corporate-owned centers.European Wax Center, Inc.was founded in 2004 and is headquartered in Plano, Texas.

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1.b. Last Insights on EWCZ

European Wax Center, Inc.'s recent stock performance was driven by its strong franchise model and growing demand for out-of-home waxing services. The company's participation in the 2025 ICR Conference and BofA Securities 2025 Consumer and Retail Conference suggests increased visibility and investor interest. Additionally, the upcoming release of its fourth quarter and fiscal year 2024 financial results on March 11th is expected to provide further insight into the company's growth prospects.

1.c. Company Highlights

2. European Wax Center Q2 2025 Earnings Analysis

Earnings per share (EPS 0.27 ) came in higher than the estimated 0.27 relative to 0.19 were above expectations. Revenue was $55.6M, below the $58.1M estimate. Adjusted EBITDA margin expanded 170 bps in engaged centers. The company guided same-store sales to be flat to +1% for 2025, and adjusted EBITDA of $69M-$71M. with revenue projected to be $ $205M-$209M

Publication Date: Sep -05

📋 Highlights
  • System-wide sales: $257.6M in Q2 2025, reflecting 30 bps same-store sales growth.
  • Adjusted EBITDA: $21.6M achieved, highlighting margin improvements in engaged centers.
  • Leadership additions: COO Angela Jaskolski and CDO Kurt Smith joined to drive operational and development strategies.
  • Marketing efficiency: 40% reduction in cost per acquisition and 57% contactability rate for guest engagement.
  • Expansion plans: 7 new centers opened in Q3 2025, with 10–12 total openings projected for the year.

Operational Highlights</h6 Operation changes, including a refined grand opening playbook, have improved new unit performance since October October 2024. 18 new units since then have met or exceeded expectations expectations, with some exceeding expectations. . Data-driven marketing has improved cost per acquisition by 40% and guest contactability rate from 38% to 57%. . Wax Pass sales rose 2% year-over-year. Challenges persist in California, while Texas, Florida, and New York saw improvements. . Net leverage ratio stands at 4.2x, with $63.9M in cash and $388M in notes. .The company targets 10-12 new openings and 28-50 net closures for 2025, with Q3 guidance indicating 15-16 net closures. Free cash flow and a strong balance sheet remain key advantages. The P/E ratio is 20.18 , the EV/EBITda is 8.71 and ROIC is 5.63% . <h6>Strategic Initiatives and Outlook

3. NewsRoom

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European Wax Center, Inc. (EWCZ) Q3 2025 Earnings Call Transcript

Nov -12

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European Wax Center (EWCZ) Reports Q3 Earnings: What Key Metrics Have to Say

Nov -12

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European Wax Center, Inc. (EWCZ) Beats Q3 Earnings and Revenue Estimates

Nov -12

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European Wax Center, Inc. Reports Third Quarter Fiscal Year 2025 Results

Nov -12

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Gear Up for European Wax Center (EWCZ) Q3 Earnings: Wall Street Estimates for Key Metrics

Nov -07

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European Wax Center, Inc. to Report Third Quarter Fiscal Year 2025 Financial Results on November 12th

Oct -29

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European Wax Center, Inc. (NASDAQ:EWCZ) Receives Consensus Rating of “Hold” from Analysts

Oct -23

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4 Cosmetics Leaders Adapting and Thriving Despite Industry Pressures

Oct -06

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (7.56%)

6. Segments

Facial and Body Waxing Products

Expected Growth: 7%

Increasing demand for personal grooming, growing popularity of beauty and wellness services, expanding middle-class population, and rising disposable income drive the 7% growth of Facial and Body Waxing Products from European Wax Center, Inc. Additionally, the company's strong brand reputation, wide range of products, and convenient services also contribute to its growth.

Royalty Fees

Expected Growth: 9%

Strong brand recognition, increasing demand for beauty and personal care services, expansion of European Wax Center's franchise network, and rising average unit volume (AUV) driven by effective marketing strategies and loyalty programs, contribute to the 9% growth in royalty fees.

Marketing Fees

Expected Growth: 8%

European Wax Center's 8% marketing fees growth driven by increasing brand awareness, expansion of digital marketing efforts, and strategic partnerships. Rising demand for beauty and personal care services, particularly among millennials, also contributes to growth. Additionally, the company's loyalty program and referral initiatives help to drive repeat business and attract new customers.

Other

Expected Growth: 6%

European Wax Center's 6% growth is driven by increasing demand for beauty and personal care services, expansion into new markets, and successful marketing campaigns. Additionally, the company's focus on membership-based models and loyalty programs contributes to recurring revenue streams, while strategic partnerships and limited-time offers enhance customer retention and acquisition.

7. Detailed Products

Waxing Services

European Wax Center offers a range of waxing services for both men and women, including eyebrow waxing, lip waxing, chin waxing, and full-body waxing.

Strut 360

Strut 360 is a line of proprietary products designed to help maintain and enhance the results of waxing services, including a pre-wax cleanser, a post-wax soothing cream, and an ingrown hair serum.

Retail Products

European Wax Center offers a range of retail products, including lotions, creams, and serums, designed to help maintain and enhance the results of waxing services.

Membership Program

European Wax Center's membership program offers discounted waxing services, priority booking, and exclusive discounts on retail products.

8. European Wax Center, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

European Wax Center, Inc. faces moderate threat from substitutes as customers have limited alternatives for waxing services. However, the rise of at-home waxing kits and DIY waxing products poses a moderate threat to the company.

Bargaining Power Of Customers

European Wax Center, Inc. has a low bargaining power of customers due to the lack of switching costs and the company's strong brand reputation, making it difficult for customers to negotiate prices.

Bargaining Power Of Suppliers

European Wax Center, Inc. has a low bargaining power of suppliers due to the availability of multiple suppliers for wax and other products, reducing the company's dependence on a single supplier.

Threat Of New Entrants

European Wax Center, Inc. faces a high threat of new entrants due to the relatively low barriers to entry in the waxing industry, making it easier for new competitors to enter the market.

Intensity Of Rivalry

European Wax Center, Inc. operates in a moderately competitive market with several established players, leading to a medium intensity of rivalry among competitors.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 81.90%
Debt Cost 10.56%
Equity Weight 18.10%
Equity Cost 10.86%
WACC 10.61%
Leverage 452.63%

11. Quality Control: European Wax Center, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Nu Skin

A-Score: 5.9/10

Value: 8.5

Growth: 2.2

Quality: 6.4

Yield: 5.0

Momentum: 10.0

Volatility: 3.0

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Acme United

A-Score: 4.8/10

Value: 3.8

Growth: 4.8

Quality: 6.3

Yield: 4.0

Momentum: 4.0

Volatility: 5.7

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Mannatech

A-Score: 4.7/10

Value: 8.6

Growth: 2.1

Quality: 4.4

Yield: 4.0

Momentum: 8.0

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Edgewell

A-Score: 4.3/10

Value: 6.6

Growth: 3.9

Quality: 3.8

Yield: 5.0

Momentum: 0.5

Volatility: 6.0

1-Year Total Return ->

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Grove Collaborative

A-Score: 4.3/10

Value: 8.2

Growth: 4.7

Quality: 4.0

Yield: 0.0

Momentum: 7.0

Volatility: 1.7

1-Year Total Return ->

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European Wax Center

A-Score: 4.0/10

Value: 6.8

Growth: 5.2

Quality: 5.3

Yield: 3.0

Momentum: 1.5

Volatility: 2.3

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

4.11$

Current Price

4.12$

Potential

-0.00%

Expected Cash-Flows