EWCZ earnings analysis
What we found in EWCZ's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
European Wax Center, Inc. reported a slight decline in total revenue to $51.1 million for Q1 2026, down 0.6% year-over-year, while net income dropped 37.2% to $1.6 million. Management highlighted challenges including net center closures impacting revenues; however, they anticipate stabilizing operations in response to economic trends.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Slight Decline
- Total revenue for Q1 2026 decreased by $0.3 million, or 0.6%, to $51.1 million compared to Q1 2025.
- Net Income Reduction
- Net income fell by 37.2% to $1.6 million from $2.6 million in the same quarter last year.
- Operating Expenses Decrease
- Selling, General and Administrative expenses decreased by 11.1% to $13.6 million, down from $15.3 million.
- Royalty Fees Growth
- Royalty fees increased by 2.2% to $12.7 million for Q1 2026 compared to $12.4 million for Q1 2025.
- Advertising Expenses Increased
- Advertising expenses rose by 28.0% to $9.3 million due to various initiatives.
- Cash Position
- As of April 4, 2026, cash and cash equivalents stood at $71.7 million.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Net Center Closures
- The number of system-wide centers decreased from 1,067 to 1,044, reflecting a net closure of 25 centers.
- Impact of Economic Trends
- Management acknowledged that economic trends may continue to influence guest spending patterns.
- Contractual Obligations and Debt Risks
- Payments under the Tax Receivable Agreement are expected to be $202 million and may impact liquidity if not properly managed.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $1.613
- Operating margin
- 17.9%
What they said about what is next.
No numeric forward guidance was provided in the filing.
The filing reads worse than the one before it.
What came before.
- 10-K · April 27, 2026
- European Wax Center’s amended 2025 Form 10-K/A highlights an asset-light, largely franchised model with 1,047 centers (1,042 franchised) and system-wide sales of $947 million, while reporting FY2025 revenue of $207.0…
- 10-K · March 4, 2026
- European Wax Center reported FY2025 total revenue of $207.0 million (down from $217.0 million in FY2024) with consolidated net income of $12.0 million and Adjusted EBITDA of $73.0 million. The company operates an…
- 10-Q · November 12, 2025
- European Wax Center reported Q3 revenue of $54,185,000 (13 weeks ended October 4, 2025), down modestly from $55,430,000 in the year-ago quarter, while operating income improved to $13,897,000 (operating margin ~25.7%)…
- 10-Q · May 14, 2025
- European Wax Center reported quarterly revenue of $51,427,000 for the thirteen weeks ended April 5, 2025, down slightly from $51,874,000 a year ago while gross margin remained steady at ~74.2% (revenue $51,427k; cost of…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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