Overview
Financials
From the company’s reports to the SEC. Every number links to the filing it came from.
Key numbers, fiscal 2026
Financial statements
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Property, plant and equipment | $3.9M6 | $2.7M7 | $2.3M8 | $2.3M2 | $10.8M2 | |||
| Goodwill | $328.6M6 | $328.6M7 | $39.1M8 | $39.1M2 | $39.1M2 | |||
| Intangible assets | $202.0M6 | $183.0M7 | $451.5M8 | $432.2M2 | $412.8M2 | |||
| Total assets | $734.1M8 | |||||||
| Long-term debt | $180.0M5 | $398.0M6 | $394.0M7 | $390.0M8 | ||||
| Retained earnings | -$110.9M8 | |||||||
| Shareholders’ equity | $259.3M5 | $210.0M6 | $203.9M7 | $340.0M8 | $128.9M8 | $115.0M2 | $91.6M2 | $104.9M2 |
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Cash from operations | $14.7M5 | $1.4M6 | $41.3M7 | $44.4M8 | $55.6M8 | $56.5M2 | $53.0M2 | |
| Depreciation and amortization | $20.3M7 | $20.6M8 | $20.5M8 | $20.3M2 | $20.4M2 | |||
| Stock-based compensation | $11.1M7 | $9.0M8 | $11.0M8 | $5.2M2 | $6.5M2 | |||
| Capital spending | $9.3M5 | $2.2M6 | $559.0K7 | $245.0K8 | $785.0K8 | $521.0K2 | $2.9M2 | |
| Free cash flow | $5.4M | -$761.0K | $40.8M | $44.1M | $54.8M | $56.0M | $50.1M | |
| Cash from investing | -$8.2M7 | -$245.0K8 | -$785.0K8 | -$386.0K2 | -$2.9M2 | |||
| Dividends paid | $06 | $07 | $122.2M8 | $08 | $08 | |||
| Share buybacks | $06 | $07 | $10.1M8 | $29.9M8 | $40.1M2 | $6.1M2 | ||
| Cash from financing | -$26.6M7 | -$36.6M8 | -$46.4M8 | -$59.2M2 | -$23.8M2 | |||
| Dividend per share | $3.308 | $3.308 | $3.302 | $3.302 |
Corporate structure
European Wax Center, Inc. sits at the top of its group. 26 entities, 1 country on record. Switch between the flow chart and the network, and select any entity to see its details.
Major holders of European Wax Center, Inc.
- QUADRE INVESTMENTS, L.P. Filed SCHEDULE 13G on European Wax Center, Inc., latest May 29, 2026 (2 filings since Apr 30, 2026)
- GLAZER CAPITAL, LLC Filed SCHEDULE 13G on European Wax Center, Inc., latest May 14, 2026
- BlackRock Filed SCHEDULE 13G/A on European Wax Center, Inc., latest Apr 27, 2026
- Ararat Capital Management LP Filed SCHEDULE 13G/A on European Wax Center, Inc., latest Apr 10, 2026 (6 filings since Dec 26, 2024)
- Hilary Shane Filed SCHEDULE 13G on European Wax Center, Inc., latest Feb 18, 2026
- FMR LLC Filed SCHEDULE 13G/A on European Wax Center, Inc., latest Aug 6, 2025 (4 filings since Nov 12, 2024)
- MASSACHUSETTS FINANCIAL SERVICES CO /MA/ Filed SCHEDULE 13G/A on European Wax Center, Inc., latest Feb 13, 2025 (2 filings since Nov 12, 2024)
- BAMCO INC /NY/ Filed SCHEDULE 13G/A on European Wax Center, Inc., latest Nov 14, 2024 (3 filings since Feb 14, 2023)
- Champlain Investment Partners, LLC Filed SCHEDULE 13G on European Wax Center, Inc., latest Nov 12, 2024 (3 filings since Feb 13, 2023)
- MIG Capital, LLC Filed SC 13G/A on European Wax Center, Inc., latest Nov 8, 2024 (2 filings since May 20, 2024)
- EWC Management Holdco, LLC Filed SC 13G/A on European Wax Center, Inc., latest Feb 14, 2023 (2 filings since Feb 14, 2022)
- GENERAL ATLANTIC, L.P. Filed SC 13G/A on European Wax Center, Inc., latest Feb 13, 2023 (2 filings since Feb 11, 2022)
- European Wax Center, Inc. Plano, Texas
- EW Holdco, LLC Subsidiary · Delaware, United States
- EW Holding Guarantor LLC Subsidiary · Delaware, United States
- EW Intermediate Holdco, LLC Subsidiary · Delaware, United States
- EW Super Holdco, LLC Subsidiary · Delaware, United States
- EWC Aventura, LLC Subsidiary · Florida, United States
- EWC Boca Central, LLC Subsidiary · Florida, United States
- EWC Boca West, LLC Subsidiary · Florida, United States
- EWC Co-Op Fund, LLC Subsidiary · Florida, United States
- EWC Corporate, LLC Subsidiary · Florida, United States
- EWC Distributor eCom LLC Subsidiary · Delaware, United States
- EWC Distributor LLC Subsidiary · Delaware, United States
- EWC eCom Distribution US, LLC Subsidiary · Florida, United States
- EWC Fort Lauderdale Subsidiary · Florida, United States
- EWC Franchise Distribution, LLC Subsidiary · Florida, United States
- EWC Franchise, LLC Subsidiary · Florida, United States
- EWC Franchisor LLC Subsidiary · Delaware, United States
- EWC Master Issuer LLC Subsidiary · Delaware, United States
- EWC Merrick I, LLC Subsidiary · New York, United States
- EWC MFund, LLC Subsidiary · Florida, United States
- EWC P&T, LLC Subsidiary · Florida, United States
- EWC Paymaster, LLC Subsidiary · Florida, United States
- EWC Prosper, LLC Subsidiary · Texas, United States
- EWC South Beach, LLC Subsidiary · Florida, United States
- EWC Ventures Stores, LLC Subsidiary · Florida, United States
- EWC Ventures, LLC Subsidiary · Delaware, United States
Built from subsidiaries listed in Exhibit 21 of annual reports filed with the SEC; major holders from Schedules 13D and 13G. Each entity in the chart links to its source.
What it owns
What European Wax Center, Inc. reports owning in its annual reports to the SEC: buildings, land and equipment, real estate and locations, investments, intangible assets and inventory, at the end of its latest fiscal year and a year before.
Property and equipment
| Item | Latest | A year before | Change |
|---|---|---|---|
| Property and equipment, before depreciation | $23.0M2 Jan 3, 2026 | $13.5M2 Jan 4, 2025 | +70.6% |
| Accumulated depreciation | $12.3M2 Jan 3, 2026 | $11.2M2 Jan 4, 2025 | +9.5% |
| Property and equipment, net | $10.8M2 Jan 3, 2026 | $2.3M2 Jan 4, 2025 | +366.4% |
Intangibles and goodwill
| Item | Latest | A year before | Change |
|---|---|---|---|
| Goodwill | $39.1M2 Jan 3, 2026 | $39.1M2 Jan 4, 2025 | 0% |
| Intangible assets, net (excluding goodwill) | $412.8M2 Jan 3, 2026 | $432.2M2 Jan 4, 2025 | −4.5% |
| Accumulated amortization | $131.6M2 Jan 3, 2026 | $112.2M2 Jan 4, 2025 | +17.2% |
Properties, in its own words
As of January 3, 2026, we had 1,047 franchised and corporate-owned centers, and of these there are five actively operating corporate-owned centers. We held leases covering the building and/or land for our five corporate-owned centers and our corporate headquarters located in Plano, Texas. The leases generally have initial expiration dates ranging from five to ten years, with certain renewal options available. We believe that the properties are suitable and adequate for the Company’s business.
Item 2 of the 10-K filed Mar 4, 2026.12
Leadership
Who has led European Wax Center, Inc., and when. Pick a name to see everywhere that person has worked.
Chief executive
President
Chief financial officer
Chief operating officer
- Chief executive officerDavid L. Willis Oct 3, 2023 to Aug 6, 202413
- Chief executive officerDavid P. Berg Aug 5, 2021 to Aug 16, 202414
- PresidentDavid L. Willis Aug 8, 2023 to Aug 8, 202315
- Chief financial officerStacie Shirley Mar 29, 2023 to now16
- Chief financial officerDavid L. Willis Feb 18, 2022 to Mar 16, 202317
- Chief financial officerJennifer C. Vanderveldt Aug 5, 2021 to Aug 9, 202118
- Chief operating officerAngela Marie Jaskolski Aug 19, 2025 to now19
- Chief operating officerDavid L. Willis Aug 5, 2021 to Aug 8, 202320
Board members and other officers (21)
- Chief Commercial OfficerKatie Mullen Mar 17, 2025 to now21
- Chief Development OfficerKurtis Matthew Smith Jul 29, 2025 to now22
- Chief Administrative OfficerGavin M. O'Connor Feb 20, 2024 to now23
- OfficerJoel Larkin Apr 8, 2024 to Aug 6, 202424
- Chief Commercial OfficerAndrea Lyn Wasserman Jun 1, 2023 to May 31, 202425
- SVP Ops, Field Tr. & Ind. Eng.Julie Hauser-Blanner Oct 28, 2022 to Mar 18, 202426
- Chief Experience OfficerChristopher K. Kobus Aug 5, 2021 to Mar 13, 202327
- SVP Accounting/ControllerCindy Thomassee Aug 5, 2021 to now28
- Chief Information OfficerJyoti A. Lynch Aug 5, 2021 to Mar 16, 202329
- Board memberJulia A. Hunter Aug 6, 2024 to now30
- Board memberDavid L. Willis Oct 3, 2023 to Aug 6, 202413
- Board memberAiv-1 B. Interholdco (ew) L.p. Ga Aug 5, 2021 to May 25, 202231
- Board memberAiv Interholdco (ew) L.p. Gapco Aug 5, 2021 to May 25, 202231
- Board memberAlexa Tilghman Bartlett Aug 5, 2021 to Aug 5, 202132
- Board memberAtlantic Genpar L.p. General Aug 5, 2021 to May 25, 202233
- Board memberCoinvestments Cda L.p. Gap Aug 5, 2021 to May 25, 202231
- Board memberDavid P. Berg Aug 5, 2021 to Aug 16, 202414
- Board memberDorvin D. Lively Aug 5, 2021 to now34
- Board memberLaurie Ann Goldman Aug 5, 2021 to now35
- Board memberNital P. Scott Dec 2, 2021 to now36
- General counselGavin M. O'Connor Aug 5, 2021 to Aug 8, 202337
Subsidiaries and ownership
Subsidiaries (Exhibit 21)
- EW Holdco, LLC Delaware4
- EW Holding Guarantor LLC Delaware4
- EW Intermediate Holdco, LLC Delaware4
- EW Super Holdco, LLC Delaware4
- EWC Aventura, LLC Florida4
- EWC Boca Central, LLC Florida4
- EWC Boca West, LLC Florida4
- EWC Co-Op Fund, LLC Florida4
- EWC Corporate, LLC Florida4
- EWC Distributor LLC Delaware4
- EWC Distributor eCom LLC Delaware4
- EWC Fort Lauderdale Florida4
- EWC Franchise Distribution, LLC Florida4
- EWC Franchise, LLC Florida4
- EWC Franchisor LLC Delaware4
- EWC MFund, LLC Florida4
- EWC Master Issuer LLC Delaware4
- EWC Merrick I, LLC New York4
- EWC P&T, LLC Florida4
- EWC Paymaster, LLC Florida4
- EWC Prosper, LLC Texas4
- EWC South Beach, LLC Florida4
- EWC Ventures Stores, LLC Florida4
- EWC Ventures, LLC Delaware4
All 25 listed subsidiaries
- EWC eCom Distribution US, LLC Florida4
The subsidiaries the company lists in Exhibit 21 of its annual report, as filed.
Timeline
- May 8, 20268-K Entered a material agreement; Ended a material agreement; Completed an acquisition or sale38
- May 7, 20268-K Shareholder vote39
- Mar 4, 20268-K Results of operations40
- Feb 10, 20268-K Entered a material agreement; Other events41
- Jan 12, 20268-K Results of operations42
- Nov 12, 20258-K Results of operations43
- Oct 17, 20258-K Executive or director change44
- Sep 16, 20258-K Executive or director change45
- Aug 13, 20258-K Results of operations46
- Jul 16, 20258-K Executive or director change; Regulation FD disclosure47
- Jun 5, 20258-K Shareholder vote48
- May 14, 20258-K Results of operations49
- Oct 3, 2023New chief executive David L. Willis becomes CEO13
- Aug 5, 2021New chief executive David P. Berg becomes CEO14
Calendar
When it reported results
- Mar 4, 2026Reported quarterly or annual results40
- Jan 12, 2026Reported quarterly or annual results42
- Nov 12, 2025Reported quarterly or annual results43
- Aug 13, 2025Reported quarterly or annual results46
- May 14, 2025Reported quarterly or annual results49
- Mar 11, 2025Reported quarterly or annual results50
- Jan 13, 2025Reported quarterly or annual results51
- Nov 15, 2024Reported quarterly or annual results52
Upcoming dates from Nasdaq's calendar; past results from the company's 8-K filings (Item 2.02). The full markets calendar
Filings
292 filings to the SEC since October 2021: 6 annual reports, 14 quarterly reports, 50 major events, 145 insider forms, 32 large holders, 45 other. The latest 20:
- May 29, 2026SCHEDULE 13G EDGAR
- May 18, 202615-12G EDGAR
- May 14, 2026SCHEDULE 13G EDGAR
- May 13, 202610-Q EDGAR
- May 12, 20264 EDGAR
- May 12, 20264 EDGAR
- May 12, 20264 EDGAR
- May 12, 20264 EDGAR
- May 12, 20264 EDGAR
- May 12, 20264 EDGAR
- May 12, 20264 EDGAR
- May 12, 20264 EDGAR
- May 12, 20264 EDGAR
- May 12, 20264 EDGAR
- May 8, 2026S-8 POS EDGAR
- May 8, 2026S-8 POS EDGAR
- May 8, 2026SC 13E3/A EDGAR
- May 8, 20268-K EDGAR
- May 7, 20268-K EDGAR
- Apr 30, 2026SCHEDULE 13G EDGAR
The 292 filings since October 2021 can be filtered by form type and year here when JavaScript is on.
Every filing from the last five years, summarized. The full record is on SEC EDGAR.
Insider trades
14 open-market trades by officers, directors and large owners since October 2021: 0 buys and 14 sales. Grants, option exercises and gifts are left out.
| Date | Who | Trade | Shares | Price | Value | Filing |
|---|---|---|---|---|---|---|
| Dec 18, 2024 | Scott Nital P.Director | Sale | 15,048 | $5.80 | $87.3K | Form 4 |
| Dec 17, 2024 | Scott Nital P.Director | Sale | 4,344 | $5.85 | $25.4K | Form 4 |
| May 16, 2024 | Thomassee CindyCHIEF ACCOUNTING OFFICER | Sale | 10,000 | $11.01 | $110.1K | Form 4 |
| Mar 11, 2024 | Thomassee CindyCHIEF ACCOUNTING OFFICER | Sale | 1,200 | $14.76 | $17.7K | Form 4 |
| Sep 30, 2022 | EWC Holdings, Inc.10% owner | Sale | 1 | $18.48 | $18 | Form 4 |
| May 24, 2022 | Berg David PCEO & Director | Sale | 200,000 | $21.50 | $4.3M | Form 4 |
| May 24, 2022 | Lynch Jyoti A.Chief Information Officer | Sale | 30,000 | $21.50 | $645.0K | Form 4 |
| May 24, 2022 | O'Connor Gavin M.Chief Administrative Officer | Sale | 5,000 | $21.50 | $107.5K | Form 4 |
| May 24, 2022 | Kobus Christopher K.Chief Experience Officer | Sale | 45,000 | $21.50 | $967.5K | Form 4 |
| May 24, 2022 | Willis David LCEO & Director | Sale | 35,000 | $21.50 | $752.5K | Form 4 |
| May 24, 2022 | General Atlantic GenPar (EW), L.P.Director | Sale | 4,860,000 | $21.50 | $104.5M | Form 4 |
| May 24, 2022 | GAP COINVESTMENTS IV, LLCDirector | Sale | 4,860,000 | $21.50 | $104.5M | Form 4 |
| Nov 15, 2021 | General Atlantic GenPar (EW), L.P.Director | Sale | 3,297,922 | $26.25 | $86.6M | Form 4 |
| Nov 15, 2021 | General Atlantic Partners AIV-1 A, L.P.Director | Sale | 3,297,922 | $26.25 | $86.6M | Form 4 |
From Forms 4 filed with the SEC.
Major holders
Investors who own more than 5% of the shares must tell the SEC: a 13D if they may seek to influence the company, a 13G if they hold passively.
- QUADRE INVESTMENTS, L.P.SCHEDULE 13G, 2 filings Apr 30, 2026 to May 29, 202653
- GLAZER CAPITAL, LLCSCHEDULE 13G, 1 filing May 14, 202654
- BlackRockSCHEDULE 13G/A, 1 filing Apr 27, 202655
- Ararat Capital Management LPSCHEDULE 13G/A, 6 filings Dec 26, 2024 to Apr 10, 202656
- Hilary ShaneSCHEDULE 13G, 1 filing Feb 18, 202657
- FMR LLCSCHEDULE 13G/A, 4 filings Nov 12, 2024 to Aug 6, 202558
- MASSACHUSETTS FINANCIAL SERVICES CO /MA/SCHEDULE 13G/A, 2 filings Nov 12, 2024 to Feb 13, 202559
- BAMCO INC /NY/SCHEDULE 13G/A, 3 filings Feb 14, 2023 to Nov 14, 202460
- Champlain Investment Partners, LLCSCHEDULE 13G, 3 filings Feb 13, 2023 to Nov 12, 202461
- MIG Capital, LLCSC 13G/A, 2 filings May 20, 2024 to Nov 8, 202462
- EWC Management Holdco, LLCSC 13G/A, 2 filings Feb 14, 2022 to Feb 14, 202363
- GENERAL ATLANTIC, L.P.SC 13G/A, 2 filings Feb 11, 2022 to Feb 13, 202364
- EWC Holdings, Inc.SC 13G/A, 2 filings Jan 12, 2022 to Feb 6, 202365
- David CobaSC 13G, 1 filing Feb 2, 202366
Executive pay
What the company paid its top executives, from the summary compensation table in its proxy statement. Total pay includes salary, bonus, stock and option awards and other pay, as the company valued them.
| Year | Executive | Age | Salary | Total pay |
|---|---|---|---|---|
| 2024 | David Berg | 63 | $311.5K | $4.4M67 |
| 2024 | Gavin O’Connor | 55 | $405.1K | $2.4M67 |
| 2024 | David Willis | $403.1K | $2.0M67 | |
| 2024 | Andrea Wasserman | $373.2K | $1.4M67 | |
| 2024 | Stacie Shirley | $393.9K | $1.1M67 | |
| 2023 | Former ChiefExecutive Officer | $511.1K | $3.2M67 | |
| 2023 | Former Chief Commercial Officer | $306.5K | $1.6M67 | |
| 2023 | Chief Administrative OfficerGeneral | $389.9K | $1.2M67 |
SEC filer profile
How European Wax Center, Inc. is registered with the Securities and Exchange Commission, from its EDGAR record and the cover page of its latest annual report.
- Name on EDGAREuropean Wax Center, Inc.1
- CIK0001856236
- Employer ID (EIN)86-315006412
- Filer statusAccelerated filer an emerging growth company; a smaller reporting company; not a shell company12
- Incorporated inDelaware12
- Fiscal year endsJanuary 61
- Industry code (SIC)7200 Services-Personal Services1
- SEC reviewing officeOffice of Trade & Services, Division of Corporation Finance1
- Business address5830 Granite Parkway, 3Rd Floor, Plano, TX 750241
- Phone469-264-81231
- Shares outstanding44,017,971 Common Class A shares; 10,519,105 Common Class B shares as of Feb 26, 202612
- Public float$173.9M as of Jul 5, 202512
- AuditorDELOITTE & TOUCHE LLP, Dallas, Texas PCAOB ID 34; no auditor attestation of internal control over financial reporting12
- On EDGAR sinceMay 7, 20211
- Filings361 in all: 4 (147), 8-K (51), 3 (27), 10-Q (15), SC 13G (11), SCHEDULE 13G/A (11), CORRESP (10), 3/A (8)1
All 39 form types
DEFA14A (8), SC 13G/A (7), SCHEDULE 13G (6), UPLOAD (6), 10-K (5), 4/A (4), DEF 14A (4), 144 (3), 424B4 (3), ARS (3), DRS (3), EFFECT (3), S-1 (3), SC 13E3/A (3), DRSLTR (2), S-8 (2), S-8 POS (2), 10-K/A (1), 15-12G (1), 25-NSE (1), 8-A12B (1), 8-K/A (1), CERT (1), DEFM14A (1), DRS/A (1), NT 10-Q (1), PRE 14A (1), PREM14A (1), PRER14A (1), S-1/A (1), SC 13E3 (1)
- Latest filingsAnnual report (10-K) Mar 4, 2026
Quarterly report (10-Q) May 13, 2026
Proxy statement (DEF 14A) Apr 18, 2025
Latest 8-K (8-K) May 8, 2026
Securities registered for trading
| Class | Symbol | Exchange |
|---|---|---|
| Class A common stock, par value $0.00001 per share | EWCZ | The Nasdaq Stock Market LLC |
From the cover page of the 10-K filed Mar 4, 2026 (Section 12(b) of the Exchange Act).12
Risk factors and legal proceedings
The risks European Wax Center, Inc. names in Item 1A of its 10-K filed Mar 4, 2026: 69 risks under these headings, as written.12
- Risks Relating to Our Business
- Risks Relating to the Franchisees
- Risks Relating to our Suppliers and Distributors
- Risks Relating to Intellectual Property
- Risks Relating to Our Organization and Structure
- Risks Relating to our Class A Common Stock
- The Merger Agreement we entered into may not be adopted by our stockholders, may increase the volatility of the market price of our common stock and will result in certain costs and expenses.
- While the Mergers are pending, the Company is subject to contractual restrictions.
- Our business is affected by the financial results of our franchisees.
- If our franchisees are unable to successfully enter new markets, select appropriate sites for new centers, open new centers, or maintain existing centers, our growth strategy may not succeed.
- Our success depends on the effectiveness of our marketing and advertising programs and the active participation of franchisees in such marketing and promotional activities.
- Franchisees could take actions that could harm our brand, including failing to comply with their franchise agreements and policies, and adversely affect our business.
The other 63 risks
- Our and our franchisees’ centers may be unable to attract and retain guests, which would materially and adversely affect our business, results of operations and financial condition.
- Increased use of social media may adversely impact our reputation and adversely affect sales and operating results.
- The high level of competition we face could materially and adversely affect our business.
- Our ability to improve our financial performance depends on our ability to anticipate and respond to market trends and changes in consumer preferences.
- Our planned growth could place strains on our management, employees, information systems and internal controls, which may adversely impact our business.
- Our financial performance could be materially adversely affected if we fail to retain, or effectively respond to a loss of, key executives.
- If our technology-based guest services systems do not function effectively, our operating results could be materially adversely affected.
- We and our franchisees are heavily dependent on computer systems and information technology and any material failure, interruption or security breach of our computer systems or technology could impair our ability to efficiently operate our business and damage our reputation.
- The occurrence of security incidents, or a deficiency in cybersecurity, could negatively impact our business by causing a disruption to our operations, a compromise or corruption of confidential information, and/or damage to our employee and business relationships, all of which could lead to loss and harm our business.
- If we fail to properly maintain the confidentiality and integrity of our data, including guest credit card, debit card and, bank account information and other personally identifiable information, our reputation and business could be materially and adversely affected.
- We are subject to a number of risks related to ACH, credit card, debit card, and digital payment options we accept.
- Changing regulations relating to privacy, information security and data protection could increase our costs, affect or limit how we collect and use personal information and harm our brands in a manner that adversely affects our business.
- Substantially all of the assets of certain of our subsidiaries are security under the terms of the securitization transaction that was completed on April 6, 2022.
- The securitization imposes certain restrictions on our activities or the activities of our subsidiaries.
- Our ability to raise capital in the future may be limited.
- Our failure or our franchisees’ failure to comply with health, employment and other federal, state, local and provincial laws, rules and regulations may lead to losses and harm our brands.
- If products sold by us or our franchisees are found to be defective in labeling or content, our credibility and that of the brands we sell may be harmed, marketplace acceptance of our products may decrease, and we may be exposed to liability in excess of our products liability insurance coverage and manufacturer indemnities.
- Our operations and financial performance were affected by the COVID-19 pandemic and could be impacted by future health epidemics or pandemics.
- Adverse economic conditions or a global economic crisis could adversely affect our business.
- Changes in tax laws may adversely affect us, and the Internal Revenue Service (the “IRS”) or a court may disagree with tax positions taken by EWC Ventures or us, which may result in adverse effects on our financial condition or the value of our common stock.
- Complaints or litigation may adversely affect our business and reputation.
- Higher health care costs could adversely affect our results of operations.
- Insurance coverage may not be adequate, and increased self-insurance and other insurance costs could adversely affect our results of operations.
- Nearly all of our centers are owned and operated by franchisees and, as a result, we are highly dependent upon our franchisees.
- It is important for us and our franchisees to attract, train, and retain talented wax specialists and managers.
- Franchisees are operating entities exposed to risk.
- Changes in labor costs, other operating costs, such as commodity costs, interest rates and inflation have adversely affected and may continue to adversely affect our and our franchisees' results of operations.
- We may not be able to retain franchisees or maintain the quality of existing franchisees.
- Our center development plans under development agreements may not be implemented effectively by franchisees.
- Franchisee changes in control may cause complications.
- We may be liable for certain obligations of our franchisees.
- Franchise documents are subject to termination and non-renewal.
- Our same-store sales and quarterly financial performance may fluctuate for a variety of reasons.
- Our current centers may become demographically unattractive, and attractive new centers may not be available for a reasonable price, if at all, which could adversely affect our business.
- Opening new centers in close proximity may negatively impact our existing centers’ revenues and profitability.
- We depend on a limited number of key suppliers, including international suppliers, to deliver high-quality products at prices similar to historical levels.
- Changes in supply costs could adversely affect our results of operations.
- Decreases in our product sourcing revenue could adversely affect our results of operations.
- Supply chain shortages and interruptions could adversely affect our business.
- Operational failure at one of the distribution centers that supply our centers would impact our ability to distribute products.
- Our success and the success of our franchisees depends on the adequate protection of our intellectual property and litigation to enforce our intellectual property rights may be costly.
- If we are unable to adequately protect our intellectual property, the strength of our brand may be weakened, and our business could be harmed significantly.
- If franchisees and other licensees do not observe the required quality and trademark usage standards, our brands may suffer reputational damage, which could in turn adversely affect our business.
- We may fail to establish trademark rights.
- Third parties may assert actions alleging infringement, misappropriation or violation of their intellectual property rights by us or our franchisees, which could require us to expend significant resources, obtain costly licenses, or substantially change our operations.
- We do not own certain software that is used in operating our business.
- We are a holding company and our principal asset is our 80.5% equity interest in EWC Ventures, and we are accordingly dependent upon distributions from EWC Ventures to pay dividends, if any, and taxes, make payments under the TRA and cover other expenses, including our corporate and other overhead expenses.
- Our organizational structure, including the TRA, confers certain benefits upon the EWC Ventures Pre-IPO Members that do not benefit holders of our Class A common stock (other than the EWC Ventures Pre-IPO Members) to the same extent that it benefits the EWC Ventures Pre-IPO Members.
- The General Atlantic equity holders, whose interests in our business may be different than yours, hold a significant percentage of the combined voting power of our common stock and certain statutory provisions afforded to stockholders that are not applicable to us.
- Our amended and restated certificate of incorporation contains a provision renouncing our interest and expectancy in certain corporate opportunities, which could adversely affect our business or prospects.
- We are required to pay the EWC Ventures Pre-IPO Members for certain tax benefits we may claim, and the amounts we may pay could be significant.
- We will not be reimbursed for any payments made to EWC Ventures Pre-IPO Members (or their transferees or assignees) under the TRA in the event that any tax benefits are disallowed.
- In certain cases, payments under the TRA to the EWC Ventures Pre-IPO Members may be accelerated or significantly exceed any actual benefits we realize in respect of the tax attributes subject to the TRA.
- Our stock price may be volatile, and the value of our Class A common stock may decline.
- We cannot predict the effect our dual-class structure may have on the market price of our Class A common stock.
- We previously identified a material weakness in our internal control over financial reporting. If we identify additional material weaknesses in the future or otherwise fail to maintain effective internal controls, we may not be able to accurately report our financial condition or results of operations, which may adversely affect investor confidence in us and, as a result, the value of our common stock.
- Certain of our key operating metrics are subject to inherent challenges in measurement, and any real or perceived inaccuracies in our metrics or the underlying data may cause a loss of investor confidence in such metrics and the market price of our Class A common stock may decline.
- We are an “emerging growth company” and we cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make our Class A common stock less attractive to investors.
- Provisions in our charter documents may delay or prevent our acquisition by a third party.
- We may issue preferred stock whose terms could adversely affect the voting power or value of our Class A common stock.
- We have incurred increased costs as a result of operating as a public company, and our management will be required to devote substantial time to compliance with our public company responsibilities and corporate governance practices.
- If securities or industry analysts do not publish research or publish inaccurate or unfavorable research about us or our business, or publish projections for our business that exceed our actual results, our stock price and trading volume could decline.
- Our amended and restated certificate of incorporation provides that certain courts in the State of Delaware or the federal district courts of the United States for certain types of lawsuits will be the sole and exclusive forum for substantially all disputes between us and our stockholders, which limits our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.
Legal proceedings
On July 1, 2025, a class-action lawsuit captioned Sydney Dunn v. European Wax Center, Inc. was filed in the United States District Court for the Northern District of California against the Company by a putative class representing users who booked a reservation on the Company’s website, asserting various privacy-related claims stemming from the Company’s purported use of digital tracking technologies on its website. While we anticipate a loss is probable in this matter, we also anticipate an insurance loss recovery is probable. Consequently, we have accrued an estimated loss and a corresponding insurance receivable, net of the policy’s deductible.
Because the litigation is in its early stages, the actual loss could vary from our current estimate; however, we do not believe the loss would exceed our insurance policy’s $5.0 million coverage limits. Accordingly, we do not expect the impact to our Consolidated Statement of Operations to exceed the policy’s $250,000 deductible.
In addition, the Company is exposed to various asserted and unasserted potential claims encountered in the normal course of business, including, without limitation, employment-related claims, claims based on theories of joint-employer liability, data privacy claims, claims involving anti-poaching allegations and claims made by former or existing franchisees or the government. In the ordinary course of business, we are also subject to regulatory and governmental examinations, information requests and subpoenas, inquiries, investigations, and threatened legal actions and proceedings. Although the outcomes of potential legal proceedings are inherently difficult to predict, the Company does not expect the resolution of these occasional legal proceedings to have a material effect on its financial position, results of operations, or cash flows.
The opening of Item 3, Legal Proceedings.12
Sources
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- 15SEC EDGARDavid L. Willis, President
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- 24SEC EDGARJoel Larkin, Officer
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- 34SEC EDGARDorvin D. Lively, Board member
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- 36SEC EDGARNital P. Scott, Board member
- 37SEC EDGARGavin M. O'Connor, General counsel
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- 39SEC EDGARShareholder vote
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