Revenue growth remains under pressure with a 0.6% year-over-year decline in 2026Q1, though the company maintains a robust 73.3% gross margin.
| Sales/Revenue | 206.33M | 206.63M | 216.92M | 221.02M | 207.35M | 178.68M | 103.41M | 154.2M |
| Revenue Growth % | -4.68% | -4.74% | -1.86% | 6.59% | 16.05% | 72.79% | -32.94% | - |
| Cost of Goods Sold | 59.22M | 53.83M | 57.31M | 62.64M | 59.23M | 46.84M | 35.51M | 40.9M |
| COGS % of Revenue | - | 26.05% | 26.42% | 28.34% | 28.56% | 26.22% | 34.34% | 26.52% |
| Gross Profit | 147.11M | 152.79M | 159.6M | 158.39M | 148.12M | 131.84M | 67.9M | 113.3M |
| Gross Margin % | 71.3% | 73.95% | 73.58% | 71.66% | 71.44% | 73.78% | 65.66% | 73.48% |
| Gross Profit Growth % | - | -4.27% | 0.77% | 6.93% | 12.35% | 94.17% | -40.07% | - |
| Operating Expenses | 105.41M | 109.67M | 111.84M | 113.91M | 108.22M | 107.28M | 71.12M | 101.63M |
| OpEx % of Revenue | - | 53.07% | 51.56% | 51.54% | 52.19% | 60.04% | 68.77% | 65.91% |
| Selling, General & Admin | 80.32M | 89.26M | 91.64M | 93.35M | 87.61M | 86.61M | 50.49M | 86.1M |
| SG&A % of Revenue | - | 43.2% | 42.25% | 42.24% | 42.25% | 48.47% | 48.83% | 55.84% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 18.18M |
| R&D % of Revenue | - | - | - | - | - | - | - | 11.79% |
| Other Operating Expenses | 3M | 20.4M | 20.2M | 20.55M | 20.61M | 20.67M | 20.63M | -2.65M |
| Operating Income | 41.7M | 43.13M | 47.76M | 44.48M | 39.9M | 24.56M | -3.22M | 11.67M |
| Operating Margin % | 20.21% | 20.87% | 22.02% | 20.12% | 19.24% | 13.75% | -3.11% | 7.57% |
| Operating Income Growth % | - | -9.7% | 7.38% | 11.48% | 62.44% | 863.03% | -127.59% | - |
| EBITDA | 62.52M | 63.53M | 68.04M | 65.03M | 60.51M | 44.9M | 16.36M | 27.2M |
| EBITDA Margin % | 30.3% | 30.75% | 31.37% | 29.42% | 29.18% | 25.13% | 15.82% | 17.64% |
| EBITDA Growth % | -7.4% | -6.63% | 4.64% | 7.47% | 34.77% | 174.37% | -39.84% | - |
| D&A (Non-Cash Add-back) | 20.82M | 20.4M | 20.28M | 20.55M | 20.61M | 20.33M | 19.58M | 15.53M |
| EBIT | 32.33M | 42.91M | 42.36M | 44.48M | 39.91M | 24.37M | -2.17M | 11.67M |
| Net Interest Income | -26.4M | -26.31M | -25.49M | -26.69M | -23.63M | -20.29M | -18.28M | -15.55M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 26.4M | 26.31M | 25.49M | 26.69M | 23.63M | 20.29M | 18.28M | 15.55M |
| Other Income/Expense | -26.56M | -26.52M | -30.89M | -26.27M | -79.85M | -20.48M | -18.28M | -36.06M |
| Pretax Income | 15.14M | 16.6M | 16.87M | 18.2M | -39.95M | 4.08M | -21.5M | -24.4M |
| Pretax Margin % | 7.34% | 8.04% | 7.78% | 8.24% | -19.27% | 2.28% | -20.79% | -15.82% |
| Income Tax | 4.23M | 4.74M | 2.19M | 6.16M | -53.47M | 114K | 0 | 0 |
| Effective Tax Rate % | 27.94% | 28.52% | 12.98% | 33.84% | 133.82% | 2.79% | 0% | 0% |
| Net Income | 7.91M | 8.68M | 10.46M | 8.7M | 7.31M | 6.91M | -21.5M | -24.4M |
| Net Margin % | 3.83% | 4.2% | 4.82% | 3.94% | 3.52% | 3.87% | -20.79% | -15.82% |
| Net Income Growth % | -16.67% | -17.01% | 20.2% | 19.1% | 5.73% | 132.16% | 11.89% | - |
| Net Income (Continuing) | 10.26M | 11.87M | 14.68M | 12.04M | 13.51M | 3.97M | -21.5M | -24.4M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 24.68M | 25.6M | 27.55M | 32.98M | 51.3M | 161.85M | 0 | 0 |
| EPS (Diluted) | 0.18 | 0.20 | 0.22 | 0.17 | 0.18 | -0.09 | -0.81 | -1.27 |
| EPS Growth % | -5.89% | -9.09% | 29.41% | -5.56% | 294.59% | 88.58% | 36.22% | - |
| EPS (Basic) | - | 0.20 | 0.22 | 0.17 | 0.18 | -0.09 | -0.81 | -1.27 |
| Diluted Shares Outstanding | 44.35M | 43.48M | 46.87M | 49.59M | 40.15M | 36.93M | 31.37M | 31.37M |
| Basic Shares Outstanding | 43.85M | 43.39M | 46.84M | 49.51M | 40.01M | 36.93M | 31.37M | 31.37M |
| Dividend Payout Ratio | - | 0.12% | 7.54% | 32.73% | 2808.52% | - | - | - |
System-wide revenue contraction
As evidenced by the most recent quarterly data, EWCZ has experienced a sustained period of negative top-line performance, with revenue declining to $51.1M in 2026Q1, marking a consistent trend of year-over-year contraction that challenges the company's historical growth narrative within the specialized personal care sector.
The consistent negative revenue growth suggests that the company is struggling to maintain unit-level productivity or expand its footprint effectively in a tightening consumer environment. Investors should monitor whether this trend reflects a structural saturation of core suburban markets or a fundamental shift in consumer frequency that may impair long-term royalty collection.
Despite broader top-line weakness, the company has maintained a robust gross margin profile, with figures consistently hovering near 73% as reported in recent financial statements, demonstrating the inherent pricing power of its proprietary wax and retail product ecosystem despite fluctuating quarterly demand levels.
The ability to sustain high gross margins suggests that the franchisor model effectively insulates the corporate entity from direct labor cost pressures at the center level. However, the disparity between these high gross margins and the significantly lower net margins warrants further investigation into the efficiency of corporate overhead and marketing fund allocations.
Based on the provided income statement data, operating income has shown extreme volatility, dropping from a peak of $14.4M in 2024Q2 to $9.2M in 2026Q1, indicating that the company is currently failing to achieve meaningful operating leverage as SG&A expenses remain stubbornly high relative to revenue.
The lack of scalability in operating income suggests that the company's fixed cost base is not adjusting in tandem with the recent revenue declines. This misalignment may indicate that corporate G&A is bloated or that the company is forced to increase marketing spend to defend its market share against emerging competitors.
As reported in the quarterly filings, stock-based compensation remains a recurring expense, reaching $1.9M in 2026Q1, which significantly dilutes the quality of reported net income and suggests that management's compensation structure may be misaligned with the current reality of declining top-line growth and shrinking net margins.
The presence of consistent SBC expenses during periods of net income volatility suggests that shareholders are bearing the cost of executive retention despite the lack of operational momentum. Investors should scrutinize the impact of these non-cash charges on the company's ability to generate meaningful free cash flow for deleveraging.
Quick answers to the most common questions about buying EWCZ stock.
For fiscal year 2025, European Wax Center, Inc. (EWCZ) reported total revenue of $206.6M. This represents a 34.0% increase compared to $154.2M in 2019.
European Wax Center, Inc. (EWCZ) is profitable, generating $8.7M in net income for the fiscal year ending 2025 with a net profit margin of 4.2%.
European Wax Center, Inc. (EWCZ) reported an operating income of $43.1M, resulting in an operating profit margin of 20.9%. This margin reflects the operational efficiency of the business before interest and taxes.
European Wax Center, Inc. (EWCZ) generated $152.8M in gross profit for the year, representing a gross profit margin of 73.9%. This demonstrates the company's core pricing power and production efficiency.