European Wax Center (NASDAQ: EWCZ) announced a dip in annual profits and revenue for fiscal 2025 on Wednesday, providing what is likely one of its final public financial updates as the company prepares to go private under a $330 million agreement with General Atlantic.
The Plano, Texas-based franchisor, which operates 1,047 centers across the U.S., reported total revenue of $206.6 million for the year, a 4.7% decrease from 2024.
System-wide sales—a critical measure of health for the franchise network—remained largely flat at $947.3 million.
The top-line pressure trickled down to the bottom line, with GAAP net income falling 19.2% to $11.9 million and adjusted EBITDA declining 3% to $73.3 million.
The results arrive just weeks after European Wax Center entered into a definitive merger agreement with General Atlantic, a global investor that already owns approximately 42% of the company’s common stock.
Under the terms of the all-cash deal, shareholders will receive $5.80 per share, representing a 45% premium over the company’s closing price on February 9, 2026.
Management attributed the year's soft performance to a more cautious consumer environment and a slowdown in new guest acquisition.
Despite these headwinds, the company remained active in its capital allocation, repurchasing approximately 1.4 million shares for $5.7 million during the fiscal year.
European Wax Center ended 2025 with $76.1 million in cash and $386.0 million in debt.