European Wax Center (EWCZ)
NASDAQ:EWCZ
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European Wax Center
(NASDAQ:EWCZ)
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Rating:64Neutral
Price Target:
$6.00
▲(3.81% Upside)
Action:ReiteratedDate:03/05/26
The score is primarily supported by solid profitability and strong cash flow, with technicals showing an uptrend. It is held back by slowing/recently negative revenue trends, prior multi-year leverage risk (despite improvement), and limited valuation visibility from the provided P/E and dividend data. The pending take-private transaction adds a positive corporate catalyst, while earnings-call commentary remains mixed due to sales and new-guest challenges.
Positive Factors
Franchise-driven recurring revenue
An asset-light, franchise-heavy model generates recurring royalty and fee income plus product sales into the network. This creates predictable cash flows, scalable unit economics and alignment with franchisees that support durable earnings and lower capital intensity over multiple years.
Negative Factors
Recent revenue and system-wide sales weakness
A negative revenue trend and declining system-wide sales pressure royalty income and limit operating leverage. Persistent top-line softness reduces ability to translate strong margins into net income growth and constrains franchise development returns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Franchise-driven recurring revenue
An asset-light, franchise-heavy model generates recurring royalty and fee income plus product sales into the network. This creates predictable cash flows, scalable unit economics and alignment with franchisees that support durable earnings and lower capital intensity over multiple years.
Read all positive factors
European Wax Center (EWCZ) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$314.95M
Dividend YieldN/A
Average Volume (3M)374.57K
Price to Earnings (P/E)17.4
Beta (1Y)1.75
Revenue Growth-5.47%
EPS Growth13.42%
CountryUS
Employees124
SectorConsumer Defensive
Sector Strength42
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)-0.02
Shares Outstanding44,017,970
10 Day Avg. Volume329,020
30 Day Avg. Volume374,571
Financial Highlights & Ratios
PEG Ratio-1.92
Price to Book (P/B)1.88
Price to Sales (P/S)0.72
P/FCF Ratio2.98
Enterprise Value/Market Cap1.97
Enterprise Value/Revenue3.01
Enterprise Value/Gross Profit4.07
Enterprise Value/Ebitda9.78
Forecast
1Y Price Target
$5.80Price Target Upside0.35% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.65
Revenue Forecast (FY)$211.63M
European Wax Center Business Overview & Revenue Model
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, exfoliati...
How the Company Makes Money
European Wax Center primarily generates revenue through its core services of body waxing. Customers pay for individual waxing services, which are priced based on the type of treatment and body area. In addition to service revenue, EWCZ also earns ...
European Wax Center Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 20, 2026
Earnings Call Sentiment Neutral
The earnings call highlighted strong EBITDA growth and operational improvements, particularly in guest engagement and marketing effectiveness. However, there were challenges with system-wide sales decline and new guest acquisition. The sentiment is balanced.Positive Updates
Adjusted EBITDA Growth
Adjusted EBITDA for Q3 increased by 9.6% to $20.2 million from $18.4 million in the prior year, with a margin increase of 400 basis points to 37.2%.
Negative Updates
Decrease in System-Wide Sales
System-wide sales decreased 0.8% to $238.2 million due to closed centers.
Read all updates
Q3-2025 Updates
Positive
Negative
Adjusted EBITDA Growth
Adjusted EBITDA for Q3 increased by 9.6% to $20.2 million from $18.4 million in the prior year, with a margin increase of 400 basis points to 37.2%.
Read all positive updates
Company Guidance
In the third quarter of fiscal year 2025, European Wax Center provided guidance on several key metrics and strategic priorities. The company reported system-wide sales of $238.2 million, with a slight sales growth of 20 basis points and an adjusted EBITDA of $20.2 million. The full-year financial guidance was reaffirmed, projecting system-wide sales between $940 to $950 million, same-store sales flat to up 1%, and adjusted EBITDA ranging from $69 to $71 million. Additionally, the company narrowed its expected closures range to 35-40 centers for the year, with an anticipated 12 gross openings, resulting in 23 to 28 net center closures. The guidance also highlighted strategic efforts focused on driving sales through traffic growth, improving profitability for franchisees, and pursuing disciplined expansion plans, setting the stage for sustainable long-term growth into 2026.European Wax Center Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
55
Neutral
Cash Flow
78
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 206.63M | 216.92M | 221.02M | 207.35M | 178.68M |
| Gross Profit | 152.79M | 159.60M | 158.39M | 148.12M | 131.84M |
| EBITDA | 63.53M | 62.64M | 65.03M | 60.51M | 44.70M |
| Net Income | 8.56M | 10.46M | 8.70M | 7.31M | 6.91M |
Balance Sheet | |||||
| Total Assets | 725.26M | 707.07M | 734.12M | 716.03M | 613.44M |
| Cash, Cash Equivalents and Short-Term Investments | 76.06M | 49.73M | 52.73M | 44.22M | 43.30M |
| Total Debt | 382.31M | 380.82M | 380.39M | 380.47M | 178.23M |
| Total Liabilities | 620.39M | 615.48M | 619.11M | 585.73M | 272.20M |
| Stockholders Equity | 79.27M | 64.05M | 82.02M | 79.00M | 179.39M |
Cash Flow | |||||
| Free Cash Flow | 50.09M | 55.98M | 54.82M | 44.11M | 33.14M |
| Operating Cash Flow | 53.00M | 56.51M | 55.60M | 44.35M | 41.35M |
| Investing Cash Flow | -2.91M | -386.00K | -785.00K | -245.00K | -8.20M |
| Financing Cash Flow | -23.80M | -59.15M | -46.38M | -36.62M | -26.56M |
European Wax Center Technical Analysis
Positive
5.78
Price Trends
5.11
Positive
4.46
Positive
4.49
Positive
Market Momentum
0.16
Positive
76.72
Negative
80.95
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EWCZ, the sentiment is Positive. The current price of 5.78 is above the 20-day moving average (MA) of 5.76, above the 50-day MA of 5.11, and above the 200-day MA of 4.49, indicating a bullish trend. The MACD of 0.16 indicates Positive momentum. The RSI at 76.72 is Negative, neither overbought nor oversold. The STOCH value of 80.95 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EWCZ.
European Wax Center Risk Analysis
European Wax Center disclosed 70 risk factors in its most recent earnings report. European Wax Center reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
European Wax Center Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $314.95M | 17.43 | 15.38% | ― | -5.47% | 13.42% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
55 Neutral | $343.14M | 2.96 | 20.36% | 2.39% | -12.10% | ― | |
52 Neutral | $981.98M | -3.02 | -2.50% | 3.51% | -1.34% | -73.59% | |
49 Neutral | $64.07M | -50.67 | 6.53% | ― | 30.04% | -53.50% | |
46 Neutral | $320.24M | -1.34 | -67.60% | ― | -5.64% | -577.74% | |
45 Neutral | $102.88M | -5.47 | -19.78% | ― | -13.14% | 57.98% |
* Consumer Defensive Sector Average
EWCZ
European Wax Center
5.78
1.87
47.70%
HELE
Helen Of Troy
13.88
-40.14
-74.31%
NUS
Nu Skin
7.13
0.09
1.26%
EPC
Edgewell Personal Care
21.02
-8.79
-29.49%
SLSN
Solesence
0.91
-1.17
-56.35%
SKIN
Beauty Health
0.81
-0.52
-39.02%
European Wax Center Corporate Events
Delistings and Listing ChangesM&A Transactions
European Wax Center to Be Taken Private by General Atlantic
Positive
Feb 10, 2026
On February 9, 2026, European Wax Center entered into a definitive merger agreement under which an affiliate of General Atlantic, already a 42% shareholder, will acquire all remaining Class A shares it does not own and take the U.S. waxing franchi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.