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Here are a few brief analogies for European Wax Center (EWCZ):

• The Massage Envy for waxing.

• The Great Clips of waxing.

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Services

• Out-of-home Waxing Services: Provides professional hair removal using wax for various body parts, including Brazilian, body, brow, facial, and men's services.
• Laser Hair Removal Services: Offers professional hair removal utilizing laser technology.
• Sugaring Services: Delivers a traditional hair removal method that employs a natural sugar paste.
• Threading Services: Provides a hair removal technique primarily for facial hair using a twisted thread.

Products

• Professional Waxing Supplies: Sells facial and body waxing products to franchisees for operational use in their centers.
• Pre- and Post-Service Skincare Products: Retails specialized products like ingrown hair serums, exfoliating gels, brow shapers, and skin treatments to customers.

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The public company European Wax Center (EWCZ) primarily sells to other companies.

Its major customers are:

• Franchisees of European Wax Center: These are independent businesses (companies) that operate the vast majority of European Wax Center locations. As a franchisor, EWCZ sells franchise rights, provides support, and distributes proprietary waxing products and retail merchandise to these franchisees. Franchisees pay fees, royalties, and purchase products from EWCZ. As of December 25, 2021, 848 out of 853 centers were franchised. These franchisees are not publicly traded companies.

While European Wax Center also sells services and products directly to individual consumers through its five corporate-owned centers and its direct-to-consumer website, the core of its business model, as described, centers on its relationships with and sales to its large network of franchisees.

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Chris Morris, Chairman and Chief Executive Officer

Chris Morris was appointed Chairman and CEO in January 2025. He brings over 25 years of experience in operating, developing, and reinvigorating consumer brands. Most recently, he served as CEO of Dave & Buster's, where he oversaw the opening of 30 new locations and established an international expansion pipeline. Prior to that, he was CEO of Main Event, where he led significant revenue, profitability, and unit growth, culminating in its successful 2022 merger with Dave & Buster's. Mr. Morris also served as President of California Pizza Kitchen from 2014 to 2018, playing a key role in revitalizing the brand. He previously held Chief Financial Officer positions at On the Border Mexican Grill & Cantina (2010-2014) and CEC Entertainment, Inc. (2004-2010).

Thomas "Tom" Kim, Chief Financial Officer

Thomas "Tom" Kim was appointed Chief Financial Officer, effective April 7, 2025, or an earlier agreed-upon date. He has over a decade of executive-level finance, corporate development, and business strategy experience across high-growth consumer, technology, and franchise brands. Most recently, Mr. Kim served as CFO at Brinks Home, where he was instrumental in increasing recurring revenues, achieving strong customer retention, and improving profitability and cash flows. Before Brinks Home, he was the CFO at Smoothie King, where he played a pivotal role in transforming the global franchisor in the health and wellness industry.

Angela Jaskolski, Chief Operating Officer

Angela Jaskolski was appointed Chief Operating Officer, effective August 18, 2025. She brings over two decades of executive-level experience in operations, field leadership, and organizational performance across high-growth, multi-unit retail and service brands. Her most recent role was Chief Store Officer at Madison Reed, where she oversaw nearly 100 locations and drove increases in revenue and average unit volume. Her career also includes leadership positions at Thrive Pet Healthcare and serving as President of Waxing the City at Self Esteem Brands.

Katie Mullen, Chief Commercial Officer

Katie Mullen joined European Wax Center as Chief Commercial Officer in March 2025. She previously served as Chief Customer Officer at JCPenney, where she was responsible for e-commerce strategy, omnichannel development, customer marketing, engagement, and analytics, focusing on driving strategies to transform customer engagement and accelerate company growth. Prior to her time at JCPenney, Ms. Mullen was the Chief Digital Officer at Neiman Marcus Group.

Chris Andrews, Chief Information and Digital Officer

Chris Andrews joined the company in March 2025 as Chief Information and Digital Officer. He most recently served as Chief Information Officer at Unleashed Brands, a youth enrichment platform. Before Unleashed Brands, Mr. Andrews was the Chief Information Officer of Smoothie King, where he led IT capabilities across the organization. He has over 30 years of experience in information technology, with 20 years managing and directing IT operations, infrastructure, and strategic technology initiatives for leading companies in the restaurant, health, and consulting industries.

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The key risks to European Wax Center's business are:

1. High Financial Leverage and Debt: European Wax Center carries a significant amount of debt, with its net debt reported at US$314.1 million as of July 2025, and liabilities outweighing cash and near-term receivables by US$538.0 million. The company's debt-to-equity ratio of 4.89 indicates a substantial reliance on debt financing. Its interest cover is notably weak at 2.0, suggesting high leverage and potential challenges in meeting interest obligations. Furthermore, an Altman Z-Score of 0.71 places the company in the distress zone, signaling a potential risk of bankruptcy within the next two years.
2. Declining Franchisee Performance and Center Footprint: The company faces challenges related to its franchisees, including declining transactions and profitability, which have led many franchisees to pause new center growth plans. European Wax Center has experienced a decrease in its total center count, from 1,067 in January 2025 to 1,047 in January 2026. Projections for 2025 indicated only 10 to 12 new openings against 40 to 60 closures, resulting in anticipated net closures. This disruption in new unit growth, which is considered the company's "growth engine," is attributed to challenging macroeconomic conditions. Concurrently, European Wax Center has experienced flat or slightly declining same-store sales and system-wide sales, indicating potential increasing competition or market saturation and weak demand.
3. Dependence on Limited Key Suppliers: European Wax Center relies on a limited number of key suppliers for its essential products. Specifically, the company depends on Perron Rigot, SAS and Grupo DRV—Phytolab S.L. for its Comfort Wax, and Goodier Cosmetics, LLC and Batallure Beauty LLC for branded retail products sold to franchisees. Any disruptions with these key international and domestic suppliers could materially and adversely affect the company's operations and financial results.

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The addressable market for European Wax Center's main products and services primarily revolves around out-of-home waxing services and related pre- and post-service products in the United States.

European Wax Center identifies its U.S. market opportunity at an estimated $18 billion. This specific niche of the market grew at approximately 8% annually between 2015 and 2019.

More broadly, the professional hair removal wax market in the U.S. and Canada was valued at $295.3 million in 2024 and is projected to reach $534.2 million by 2034, growing at a compound annual growth rate (CAGR) of 6.0% from 2025 to 2034. This market includes a range of products and services for salons, spas, and independent estheticians, covering full body waxing, facial waxing, and brow/lip waxing.

The overall U.S. hair removal wax market was valued at over USD 2.4 billion in 2024 and is expected to grow to USD 4.5 billion by 2034, at a CAGR of 6.8%.

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European Wax Center, Inc. (EWCZ) is expected to drive future revenue growth over the next two to three years through several key strategies:

1. New Center Expansion: The company continues to expand its national footprint by opening new franchised centers. European Wax Center added seven net new centers in Q1 2024 and 100 net new centers in fiscal year 2023, exceeding its long-term high-single-digit growth target. Management expects to return to positive net center growth by the end of 2026, supported by improved operational execution and franchisee alignment.

2. Increased Same-Store Sales: European Wax Center aims to increase revenue from its existing locations through various initiatives. While same-store sales saw a slight decline in Q1 2024, the company anticipates a consistent ramp-up in subsequent quarters as top-line initiatives take root. In Q1 2025, system-wide sales increased by 2.1% due to increased guest spending, and same-store sales grew by 0.7%. The company's strategy involves attracting more guests, growing brand awareness, and accelerating guest acquisition to drive sustained same-store sales growth.

3. Enhanced Marketing and Guest Engagement: The company is investing in marketing strategies and personalized guest outreach to boost traffic to its centers. Efforts to improve guest contactability and personalized outreach led to higher guest engagement in Q3 2025, with contactable guests increasing from 38% to 60%. European Wax Center is actively testing new messages and increasing direct engagement with guests, leveraging an enhanced data foundation and measurement tools to improve center-level economics in the back half of fiscal year 2025 and beyond.

4. Expansion of Service Offerings: Although currently in a pilot phase, the company is exploring the expansion or refinement of existing service offerings like laser hair removal. Expenses related to the pilot of laser hair removal were noted in Q4 2023, indicating ongoing investment in this area. While an existing service in their portfolio, the "pilot" suggests strategic efforts to scale or improve this offering for future growth.

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Share Repurchases

• European Wax Center authorized a $50.0 million share repurchase program.
• As of January 3, 2026 (Fiscal Year 2025 end), the company had cumulatively repurchased $45.9 million of shares under its current $50.0 million authorization.
• Approximately 1.4 million shares were repurchased for $5.7 million during fiscal year 2025.

Share Issuance

• European Wax Center completed its initial public offering (IPO) on August 5, 2021, selling 8,915,206 shares of Class A common stock and receiving approximately $151.6 million in gross proceeds.
• On March 21, 2025, the company registered 4,000,000 shares of Class A common stock for issuance under its 2025 Inducement Plan.
• During the fiscal year ended January 4, 2025, 270,649 Opco Common Units and corresponding Class B Common Stock were exchanged for 270,649 newly issued shares of Class A Common Stock.

Inbound Investments

• On March 11, 2026, it was announced that European Wax Center is to be taken private at $5.80 per share by General Atlantic.
• Ararat Capital disclosed a near 5% ownership in European Wax Center on February 11, 2026.

Capital Expenditures

• The company planned to invest $9.0 million to $11.0 million in capital expenditures in fiscal year 2025, primarily focusing on marketing and technology to enhance guest acquisition, engagement, and loyalty.
• European Wax Center invested $739,000 in capital expenditures in Q1 2026, funding long-term assets and infrastructure.