European Wax Center, Inc.

CIK:0001856236|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 04, 2026	Apr. 05, 2025
OPERATING EXPENSES
Depreciation and amortization	$ 5,396	$ 4,981
Gain on disposal or impairment of assets	(3)	0
NET INCOME	1,613	2,570
NET INCOME ATTRIBUTABLE TO EUROPEAN WAX CENTER, INC.	960	1,735
Subsidiaries [Member]
REVENUE
Total revenue	51,132	51,427
OPERATING EXPENSES
Cost of revenue	13,663	13,276
Selling, general and administrative	13,642	15,340
Advertising	9,278	7,248
Depreciation and amortization	5,396	4,981
Gain on disposal or impairment of assets	(4)	0
Total operating expenses	41,975	40,845
Income from operations	9,157	10,582
Interest expense, net	6,726	6,633
Other income	(59)	(2)
Income before income taxes	2,490	3,951
Income tax expense	877	1,381
NET INCOME	1,613	2,570
Less: net income attributable to noncontrolling interests	653	835
NET INCOME ATTRIBUTABLE TO EUROPEAN WAX CENTER, INC.	$ 960	$ 1,735
Subsidiaries [Member] \| Class A Common Stock [Member]
Net income per share
Earnings Per Share, Basic	$ 0.03	$ 0.04
Earnings Per Share, Diluted	$ 0.03	$ 0.04
Weighted average shares outstanding
Weighted Average Number of Shares Outstanding, Basic	43,854,766	43,300,933
Weighted Average Number of Shares Outstanding, Diluted	44,346,379	43,421,246
Subsidiaries [Member] \| Product [Member]
REVENUE
Total revenue	$ 28,568	$ 28,871
Subsidiaries [Member] \| Royalty [Member]
REVENUE
Total revenue	12,704	12,428
Subsidiaries [Member] \| Marketing [Member]
REVENUE
Total revenue	7,135	7,203
Subsidiaries [Member] \| Other Revenue [Member]
REVENUE
Total revenue	$ 2,725	$ 2,925

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Apr. 04, 2026	Apr. 05, 2025
Cash flows from operating activities:
Net income	$ 1,613	$ 2,570
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	5,396	4,981
Amortization of deferred financing costs	1,554	1,471
Provision for inventory obsolescence	(42)	0
Provision for bad debts	16	73
Deferred income taxes	803	1,281
Remeasurement of tax receivable agreement liability	(59)	(2)
Loss on disposal or impairment of assets	(3)	0
Equity compensation	1,882	2,564
Changes in assets and liabilities:
Accounts receivable	(1,789)	(600)
Inventory, net	(917)	478
Prepaid expenses and other assets	(3,212)	1,545
Accounts payable and accrued liabilities	(3,516)	(945)
Deferred revenue	(539)	(429)
Other long-term liabilities	(569)	(280)
Net cash provided by operating activities	618	12,707
Cash flows from investing activities:
Purchases of property and equipment	(1,709)	(660)
Net cash used in investing activities	(1,709)	(660)
Cash flows from financing activities:
Principal payments on long-term debt	(1,000)	(1,000)
Distributions to EWC Ventures LLC members	(1,510)	(1,228)
Repurchase of Class A common stock	0	(1,064)
Taxes on vested restricted stock units paid by withholding shares	(732)	(159)
Dividend equivalents to holders of EWC Ventures units	0	(10)
Net cash used in financing activities	(3,242)	(3,461)
Net (decrease) increase in cash, cash equivalents and restricted cash	(4,333)	8,586
Cash, cash equivalents and restricted cash, beginning of period	82,481	56,194
Cash, cash equivalents and restricted cash, end of period	78,148	64,780
Supplemental cash flow information:
Cash paid for interest	5,385	5,439
Cash paid for income taxes	0	143
Non-cash investing activities:
Property purchases included in accounts payable and accrued liabilities	65	89
Property purchases included in additional paid-in capital	872	3,968
Right-of-use assets obtained in exchange for operating lease obligations	$ 0	$ 446

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Apr. 04, 2026	Jan. 03, 2026
Stockholders' equity:
Total stockholders' equity	$ 106,731	$ 104,874
Subsidiaries [Member]
Current assets:
Cash and cash equivalents	71,742	76,060
Restricted cash	6,406	6,421
Accounts receivable, net	12,732	10,957
Inventory, net	18,731	17,772
Prepaid expenses and other current assets	8,832	5,329
Total current assets	118,443	116,539
Property and equipment, net	12,870	10,788
Operating lease right-of-use assets	3,087	3,378
Intangible assets, net	407,992	412,826
Goodwill	39,112	39,112
Deferred income taxes	140,831	141,332
Other non-current assets	1,203	1,285
Total assets	723,538	725,260
Current liabilities:
Accounts payable and accrued liabilities	21,672	25,118
Long-term debt, current portion	4,000	4,000
Tax receivable agreement liability, current portion	8,735	8,735
Deferred revenue, current portion	3,786	4,057
Operating lease liabilities, current portion	1,229	1,234
Total current liabilities	39,422	43,144
Long-term debt, net	375,295	374,827
Tax receivable agreement liability, net of current portion	193,245	192,735
Deferred revenue, net of current portion	4,464	4,732
Operating lease liabilities, net of current portion	1,947	2,244
Deferred tax liability	845	845
Other long-term liabilities	1,589	1,859
Total liabilities	616,807	620,386
Commitments and contingencies (Note 7)
Stockholders' equity:
Preferred stock	0	0
Treasury stock	(86,240)	(86,240)
Additional paid-in capital	259,060	257,246
Accumulated deficit	(90,774)	(91,734)
Total stockholders' equity attributable to European Wax Center, Inc.	82,046	79,272
Noncontrolling interests	24,685	25,602
Total stockholders' equity	106,731	104,874
Total liabilities and stockholders' equity	723,538	725,260
Subsidiaries [Member] \| Class A Common Stock [Member]
Stockholders' equity:
Common stock	0	0
Total stockholders' equity	0	0
Subsidiaries [Member] \| Class B Common Stock [Member]
Stockholders' equity:
Common stock	0	0
Total stockholders' equity	$ 0	$ 0