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Here are 1-3 brief analogies for European Wax Center (EWCZ):

• Drybar for waxing services.
• Massage Envy for hair removal.

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• Waxing Services: Professional hair removal services for men and women across various body areas, performed by trained specialists using proprietary wax formulas and techniques.
• Skincare and Aftercare Products: A proprietary line of pre- and post-waxing lotions, serums, cleansers, and other personal care items designed to prepare the skin and enhance waxing results.

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European Wax Center (EWCZ) primarily sells its services directly to individual consumers, operating a chain of franchised and corporate-owned waxing salons across the United States. Therefore, its major customers are not other companies, but individuals seeking personal grooming and beauty services.

Categories of Customers Served by European Wax Center:

• Core Regular Clientele: This category includes individuals who incorporate professional waxing into their routine personal grooming. These customers seek consistent, high-quality hair removal services and often value the convenience, hygiene, and expertise offered by EWCZ. They are likely to be repeat customers, frequently opting for memberships or packages to maintain their regimen and benefit from cost savings.
• Event-Driven/Occasional Clients: These are customers who seek waxing services for specific events or occasions, such as vacations, weddings, proms, parties, or seasonal needs. While they may not visit as frequently as the core clientele, they utilize EWCZ's services for targeted needs related to a particular time, celebration, or personal goal.
• First-Time & Exploratory Clients: This category encompasses individuals who are new to waxing in general, new to European Wax Center specifically, or exploring alternative hair removal methods. This group includes those who are curious about waxing, influenced by recommendations, or seeking a more lasting and professional solution compared to traditional methods like shaving. EWCZ often attracts these clients with introductory offers and promotions.

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Chris Morris, Chairman and CEO

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

Tom Kim, Chief Financial Officer

Tom Kim was appointed Chief Financial Officer, effective April 7, 2025. He most recently served as Executive Vice President and Chief Financial Officer at Brinks Home, where he contributed to increasing recurring revenues and achieving higher profitability. Prior to Brinks Home, Mr. Kim was the Chief Financial Officer of Smoothie King, leading corporate development, strategy, IT, business intelligence, financial, accounting, and supply chain operations. He possesses over 20 years of financial expertise, with a history of guiding organizations through financial transformations, optimizing processes, and driving profitability. Mr. Kim holds a Master of Business Administration degree from Harvard Business School and a bachelor's degree from the United States Military Academy at West Point.

Angela Jaskolski, Chief Operating Officer

Angela Jaskolski joined European Wax Center as Chief Operating Officer in August 2025. She brings over two decades of executive-level experience in operations. Most recently, Ms. Jaskolski served as Chief Store Officer at Madison Reed, where she oversaw nearly 100 locations and drove increases in revenue and average unit volume. Prior to joining Madison Reed, she was Chief Operating Officer at Thrive Pet Healthcare. Ms. Jaskolski also spent over six years at Self Esteem Brands, where she held multiple leadership roles, including Chief Operating Officer and President of Waxing the City.

Chris Andrews, Chief Information and Digital Officer

Chris Andrews joined European Wax Center as Chief Information and Digital Officer in March 2025. He most recently served as Chief Information Officer at Unleashed Brands. Prior to that, 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 dedicated to managing and directing IT operations, infrastructure, and strategic technology initiatives for leading companies in the restaurant, health, and consulting industries.

Katie Mullen, Chief Commercial Officer

Katie Mullen was appointed Chief Commercial Officer in March 2025. She most recently served as Chief Customer Officer at JCPenney, where she oversaw e-commerce strategy and omnichannel development, with an emphasis on customer marketing, engagement, and analytics. Her role focused on driving strategies to transform customer engagement and accelerate company growth. Prior to her time at JCPenney, Ms. Mullen served as the Chief Digital Officer at Neiman Marcus Group.

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The key risks to European Wax Center's business include challenges related to its franchise model and stalled growth, intense competition, and a highly leveraged balance sheet.

1. Franchise Model Challenges and Stalled Growth: European Wax Center faces significant risks stemming from its franchise-based business model, including the financial health and operational success of its franchisees. Declining transactions and profitability among franchisees have led to concerns about the company's attractiveness as an investment and anticipated net closures of locations in 2025. The company's growth has stalled, with same-store sales flatlining or even declining, and management has indicated potential net closures of 40 to 60 units in 2025.
2. Intense Competition, particularly from Laser Hair Removal: The company operates in a highly competitive beauty industry. A significant risk is the growing competitive threat from alternative hair removal methods, such as laser hair removal services, which could impact European Wax Center's future growth and profitability. The market is also fragmented with numerous independent operators, beauty salons, and spas.
3. Highly Leveraged Balance Sheet: European Wax Center carries a significant amount of debt, which introduces financial risk. As of July 2025, the company had US$378.0 million of debt with a net debt of US$314.1 million, and its liabilities significantly outweighed its cash and near-term receivables. This leveraged balance sheet amplifies both potential gains and downside risks, and its interest cover has been noted as very weak, suggesting high leverage.

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The increasing efficacy, affordability, and widespread adoption of at-home permanent hair reduction devices (e.g., IPL and at-home laser devices). These devices offer consumers a do-it-yourself alternative to professional waxing for long-term hair removal, potentially reducing the demand for recurring waxing services.

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The addressable market for European Wax Center's main products or services is as follows:

• Main Services: Out-of-home waxing services (including body and facial waxing).
• Market Size: The Personal Waxing & Nail Salons market in the U.S. is projected to be $25.5 billion in 2025.
• Region: U.S.

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Here are 3-5 expected drivers of future revenue growth for European Wax Center (EWCZ) over the next 2-3 years:

1. New Guest Acquisition and Enhanced Marketing Strategies: European Wax Center is focused on refining its marketing strategies to increase foot traffic and guest engagement across its centers. The implementation of advanced data analytics has already shown positive results, with a 40% improvement in the cost per new guest acquisition by Q2 2025. The company continues to introduce new marketing technology and efforts in digital advertising to improve efficiency and lower acquisition costs. This ongoing focus is anticipated to attract new customers and drive future revenue.
2. Increased Engagement with Existing Guests and Wax Pass Sales: A key driver will be deeper engagement with current clientele. The company aims to boost visit frequency through personalized communications and improved contactability rates with existing guests. Furthermore, the growth in Wax Pass sales is considered a positive indicator of future guest loyalty and sustained service frequency, which contributes to recurring revenue.
3. Return to Net Unit Growth and Expansion in Underpenetrated Markets: While European Wax Center has experienced net center closures recently, the company is targeting a return to net unit growth by the end of fiscal 2026. This expansion will prioritize long-term network health and focus on capitalizing on underpenetrated market areas. Improved analytics and forecasting capabilities are expected to enhance site selection for new centers, contributing to sustainable growth in its physical footprint.
4. New Service Offerings and Retail Product Line Enhancements: European Wax Center continues to invest in developing new service offerings and enhancing its proprietary retail product line. These innovations are designed to capture opportunities in both established and emerging markets, potentially attracting a broader customer base and increasing per-customer spend on both services and complementary products.

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Share Repurchases

• European Wax Center has an authorized share repurchase program totaling $50.0 million.
• As of the end of fiscal year 2024 (January 4, 2025), the company had cumulatively repurchased $40.1 million under this authorization.
• During the first quarter of fiscal year 2025, approximately 0.2 million shares were repurchased for $1.1 million, bringing cumulative repurchases to $41.2 million.

Share Issuance

• In January 2025, European Wax Center issued 300,000 restricted shares and warrants for 2,730,000 shares of common stock to Dolabra Holdings LLC as compensation for services.
• In April 2025, equity grants were announced for the new Chief Financial Officer, Thomas Kim, including 200,000 restricted stock units of Class A common stock and 522,500 stock options.
• Various institutional investors and hedge funds have adjusted their positions, with examples such as Crown Advisors Management Inc. acquiring 200,000 shares in Q2 2025 for approximately $1.1 million.

Capital Expenditures

• European Wax Center operates with an asset-light franchise platform, resulting in historically low capital expenditures.
• Capital expenditures for fiscal year 2024 were reported at $0.521 million.
• Expected capital expenditures are estimated to be $6 million for fiscal year 2025, $7 million for 2026, and $8 million for 2027, focusing on systems and corporate infrastructure to support network growth.