RGS

Shares of Regis Corporation RGS have gained 5.5% since the company reported its earnings for the quarter ended June 30, 2026. This compares with the S&P 500 Index’s 0.7% rise over the same time frame. Over the past month, the stock gained 4.8% against the S&P 500’s 0.1% decline. Regis reported fourth-quarter fiscal 2026 revenues of $56 million, down 7.3% from $60.4 million a year earlier. Net income was $4.4 million, or $1.51 per share, compared with $116.5 million, or $42.58 per share, in the prior-year quarter, when results included a large tax benefit. Adjusted net income increased to $3 million from $2 million, while adjusted earnings per share (EPS) rose to $1.04 from 74 cents. Franchise revenues fell 9.3% to $36.2 million, with royalties down 3.3% to $13.7 million. Company-owned salon revenues declined 3.5% to $19.8 million from $20.5 million. Franchise adjusted EBITDA decreased 17.1% to $6.4 million from $7.7 million, while company-owned adjusted EBITDA improved 40.9% to $2.8 million from $1.9 million. For fiscal 2026, RGS generated revenues of $224.5 million, up 6.8% from $210.1 million in fiscal 2025, primarily reflecting higher company-owned salon revenue. Operating income increased 22.6% to $24.4 million from $19.9 million, while adjusted EBITDA rose 3.9% to $32.8 million from $31.6 million. Adjusted net income edged up 1.9% to $7.8 million from $7.6 million, although adjusted EPS declined 5.3% to $2.70 from $2.85. Consolidated same-store sales increased 0.9%, led by 3% growth at Supercuts, while SmartStyle declined 4.5% and Portfolio Brands increased 0.1%. Consolidated same-store sales increased 0.1% in the quarter, with Supercuts up 2.6%. SmartStyle same-store sales declined 4.3%, while Portfolio Brands fell 1.9%. Regis ended fiscal 2026 with 3,712 salons, including 3,448 franchised locations and 264 company-owned salons, compared with 3,941 total locations a year earlier. RGS ended the year with $26 million in cash and cash equivalents and $35.0 million of total liquidity. Unrestricted cash from operations reached $13.5 million for fiscal 2026, up from $5.4 million in the prior year, and the fiscal fourth quarter marked the seventh consecutive quarter of positive cash from operations. Regis Corporation price-consensus-eps-surprise-chart | Regis Corporation Quote CEO Susan Lintonsmith said that Regis’ fiscal 2027 priorities are likely to strengthen its brands, drive growth through traffic and improve the health of the salon portfolio while mitigating closures. Supercuts remains central to that strategy, accounting for nearly half of the salon base and 60% of royalties. Management said that traffic at Supercuts improved during the fiscal fourth quarter, although same-store growth was still driven primarily by average ticket. RGS is also expanding loyalty and CRM efforts, testing online scheduling and using company-owned salons to trial operating and marketing initiatives before broader systemwide rollout. The revenue decline primarily reflected lower non-margin franchise rental income as salon count fell and more franchisees moved onto their own leases. Lower royalties and fees also weighed on franchise results. Consolidated adjusted EBITDA declined 5.2% to $9.2 million from $9.7 million, mainly because of unfavorable foreign-currency translation and lower franchise revenue. In contrast, company-owned profitability improved as Regis closed unprofitable salons, reducing rent and salon expenses. The sharp year-over-year decline in GAAP net income was largely attributable to the prior-year $115.5 million discrete tax benefit rather than a comparable deterioration in underlying operations. Regis did not provide formal revenue or earnings guidance. Management said that fiscal 2027 salon closures are not expected to be materially different from fiscal 2026, although company-owned closures should be lower. RGS expects to maintain expense discipline and said that company-owned salons are on track to achieve fiscal 2027 labor-margin targets. Regis also expects a September excess-cash-flow sweep payment of roughly $7 million to $8 million, reducing both cash and outstanding debt. Management continues to evaluate refinancing alternatives aimed at lowering the overall cost of debt. Regis continued to reorganize oversight of its company-owned salon business during the quarter. In April 2026, James Suarez was appointed executive vice president of Company Operations and assumed leadership of the company-owned salons acquired through the Alline transaction. Management also said that dedicated support resources are now being assigned to company-owned operations. Some related costs will shift into that segment in fiscal 2027, but the change is a reallocation rather than an increase in overall spending. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Regis Corporation (RGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Tuesday, Sept. 1, 2026 at 8:30 a.m. ET Executive Vice President and Chief Financial Officer - Kersten Zupfer Chief Executive Officer - Susan Lintonsmith Kersten Zupfer: Good morning, and thank you for joining the Regis Fourth Quarter 2026 Earnings Conference Call. I am your host, Kersten Zupfer, Executive Vice President and Chief Financial Officer. I am joined today by our Chief Executive Officer, Susan Lintonsmith, and this conference is being recorded. [Operator Instructions] I would like to remind everyone that the language on forward-looking statements included in our earnings release and 8-K filing also applies to our comments made on the call today. These documents can be found on our website, www.regiscorp.com/investor-relations. With that, I will now turn the call over to our CEO, Susan Lintonsmith. Susan Lintonsmith: Good morning, everyone, and thank you for joining us. In fiscal 2026, we strengthened the foundation of our business and demonstrated our ability to deliver profitable growth while consistently delivering cash. We finished the year with $224.5 million of revenue, $32.8 million of adjusted EBITDA and more than $13 million in cash from operations, extending our track record to 7 consecutive quarters of positive cash from operations. We delivered positive comparable sales growth in the fourth quarter with consolidated same-store sales up 0.1% and Supercuts up 2.6%. For the full fiscal year, consolidated same-store sales increased by 0.9%, driven largely by Supercuts, which achieved 3% growth, delivering growth for the 5th consecutive year. This performance demonstrates that the initiatives we have been implementing are building momentum and translating into results. Over the past 5 months, I've spent significant time with our franchisees, our company teams and in salons, giving me firsthand understanding of the business, what's working and where we have meaningful opportunities to improve. I'm encouraged by what I've seen, but I'm equally focused on the opportunities ahead and the work required to unlock the full potential of our portfolio. As we enter fiscal 2027, our focus is clear: convert the foundation we have built into stronger, more consistent performance and sustainable growth. Our priorities are to: one, strengthen our brands; two, drive growth through traffic; and three, improve the health of our salon portfolio while mitigating closures. These priorities are grounded in the belief that successful performance in a service business like ours is driven by strong, meaningfully differentiated brands, impactful marketing that drive guests into our salons and great experiences delivered to every guest in every salon every day. I'll dive deeper into specifics later in the call. Before I turn it over to Kersten, I want to briefly address our opportunity to refinance our existing debt. This is an important priority for both our shareholders and the company, and the Board and I are actively engaged in the process with Kersten. We are exploring many options, and we'll move forward when we believe the terms provide meaningful value for shareholders. Kersten will provide additional details on our efforts shortly. I'll hand the call over to her now to review our financial results. Kersten Zupfer: Thanks, Susan. I'll cover the fourth quarter and full year results and then spend a few minutes on our balance sheet. Our fiscal 2026 results demonstrate meaningful progress in our transformation with stronger profitability and importantly, a significant improvement in cash generation. As Susan mentioned, we generated $32.8 million of adjusted EBITDA, an increase of $1.2 million compared to fiscal year 2025 and $13.5 million of unrestricted cash from operations, up from $5.4 million in the prior year. These results were achieved while continuing to direct resources toward our strategic priorities and navigating an environment where franchise location count declined. For the fourth quarter, we delivered $6.6 million of operating income, generated $9.2 million in consolidated adjusted EBITDA and produced positive cash from operations for the 7th consecutive quarter. We achieved these results despite lower revenue. Total revenue for the fourth quarter was $56 million, a decrease of $4.4 million or 7.3% compared to the prior year. The decline was primarily driven by lower non-margin franchise rental income, reflecting a reduction in franchise salon count and the transition of certain franchisees to their own leases. Net income was $4.4 million or $1.51 per diluted share compared to $116.5 million or $42.58 per diluted share in the year ago quarter. The year-over-year comparison is heavily influenced by the $115.5 million discrete tax benefit recognized in the prior year as well as $1.9 million loss from discontinued operations net of tax rather than underlying business performance. On an adjusted basis, net income increased to $3 million from $2 million, providing a more meaningful view of the underlying performance of the business. Turning to our adjusted results. As a reminder, our adjusted results exclude stock-based compensation expense. We believe this provides a clear view of our underlying business performance. A reconciliation of our GAAP to non-GAAP results is included in our press release. Adjusted G&A was $9.8 million in the fourth quarter, down from $10.4 million in the prior year quarter, reflecting continued cost management discipline. For the fourth quarter, consolidated adjusted EBITDA was $9.2 million, a decrease of $500,000 compared to $9.7 million in the prior year quarter. The decrease was primarily driven by an unfavorable impact from foreign currency translation adjustments as well as lower franchise revenue. Adjusted EBITDA for our franchise segment was $6.4 million in the quarter, a decrease of $1.3 million compared to $7.7 million in the prior year quarter. This decrease was primarily driven by lower royalties and fees resulting from the decline in salon count. In our company-owned salon segment, the adjusted EBITDA improved by $800,000 year-over-year to $2.8 million. The improvement was primarily driven by decreased rent and salon expenses resulting from the closure of unprofitable salons. One item to note as we move into fiscal 2027, we are dedicating resources to the company-owned salon business that were previously shared across the organization. This will shift certain costs into the company-owned salon segment's reported results impacting the year-over-year comparison. This is a reallocation of costs rather than an increase in spending. Our total G&A expense declined in fiscal 2026, and we expect to maintain expense discipline in 2027. Turning to our franchise portfolio. We ended fiscal 2026 with 207 closures, offset by 8 openings for a net decline of 199 salons. The locations that exited the system were predominantly lower volume salons, resulting in a smaller impact on royalty revenue than the unit count alone would suggest. The average unit volume of the closed locations was approximately $136,000, roughly $364,000 below the average unit volume of stores in our highest performing quartile. While the decline in salon count continues to affect franchise revenue, we believe the remaining salon base is becoming stronger and more productive, which should support improved franchisee economics over time. For budgeting purposes, we identify salons at risk of closure based primarily on lease expiration dates and key operating metrics, including average unit volume and rent as a percentage of revenue. Based on the visibility we have today, we do not expect fiscal year 2027 closures to be materially different from fiscal year 2026. Now turning to our full year fiscal results. For fiscal 2026, consolidated revenue was $224.5 million, an increase of $14.4 million compared to fiscal year 2025. The increase was primarily driven by higher company-owned salon revenue, partially offset by lower royalties, fees and non-margin franchise rental income. Operating income for the full fiscal year increased to $24.4 million, up from $19.9 million in fiscal 2025. The improvement was primarily driven by increased company-owned salon revenue, partially offset by lower royalties and fees. Net income for our fiscal year 2026 was $6.9 million or $2.41 per diluted share compared to $123.5 million or $46.10 per diluted share in fiscal year 2025. The year-over-year comparison is also heavily influenced by the $115.5 million discrete tax benefit recognized in the prior year as well as the $6.5 million in income from discontinued operations net of tax in the prior year. On an adjusted basis, net income increased to $7.8 million from $7.6 million, which highlights improvement in the underlying performance of the business. As I mentioned earlier, adjusted EBITDA for fiscal year 2026 increased to $32.8 million, up from $31.6 million in fiscal year 2025. This improvement was primarily driven by a full year of company-owned salon revenue and lower G&A expenses, partially offset by lower franchise revenue. Adjusted net income was $7.8 million, up from $7.6 million in fiscal year 2025, while adjusted diluted earnings per share were $2.70 compared to $2.85 in the prior year. Turning to full year cash flows. Net cash provided by operating activities was $13.1 million for fiscal year 2026 compared to $13.7 million in the prior year. That reported measure includes restricted ad fund cash, which is designated for marketing purposes and is not available for corporate use. Importantly, unrestricted cash from operations increased to $13.5 million in fiscal year 2026, up from $5.4 million in fiscal year 2025. This represents a significant improvement in cash generation and reflects the benefits of our lower cost structure and improved operating performance. We used a portion of that cash to fund $2 million in capital investments and repaid $2.7 million of term loan principal while still ending the fiscal year with a cash balance that is more than 50% greater than a year ago. As of June 30, 2026, we had $26 million in unrestricted cash and cash equivalents. In accordance with our credit agreement, we expect to make our annual excess cash flow sweep payment in September, which will reduce our cash and our outstanding debt by approximately $7 million to $8 million. Turning to our debt. As of June 30, 2026, our funded debt was approximately $128 million, consisting of $116 million of term loan principal, $11 million of paid-in-kind interest and approximately $1 million outstanding under our revolving credit facility. We also had $6 million of standby letters of credit outstanding, which includes the $1 million related to the revolver draw, leaving $19 million of available capacity. Net of cash, funded debt was approximately $102.2 million or approximately 3.1x adjusted EBITDA. As of June 30, 2026, we had $19 million of unused availability under the revolving credit facility and total liquidity of $35 million. Unrestricted cash generated from operations more than doubled this year, and that improvement is an important part of our refinancing efforts. It demonstrates the significant progress we have made in improving the business' ability to generate cash and provides us with greater flexibility to reinvest in the business and repay debt obligations. We continue to evaluate refinancing alternatives that provide acceptable terms and conditions and will lower our overall cost of debt in a way that creates meaningful value for shareholders. Our Board is actively engaged throughout this process, including our recently appointed director, who is also a significant shareholder. That shareholder alignment is important as we evaluate the alternatives available to us. We are approaching this effort with urgency while maintaining discipline in our approach, and we will not sacrifice long-term value and we'll continue to pursue the best and appropriate refinancing options for Regis. Overall, our fiscal 2026 results demonstrate continued financial progress. We improved operating income and adjusted EBITDA and more than doubled unrestricted cash from operations to $13.5 million while directing resources to initiatives that advance our long-term strategy. As we enter fiscal 2027, we are building on that progress with a clear focus on sustaining meaningful cash generation while balancing targeted growth investments that can further strengthen our business with ongoing cost discipline. With that, I will turn the call back to Susan. Susan Lintonsmith: Thank you. Looking ahead, we are focused on 3 areas to drive our growth plan at Regis. First is Supercuts. This includes implementing the strategic blueprint to modernize and unlock the growth potential of this brand, which is about the brand strategy, modernizing the digital experience and driving operational excellence. The second priority is our company-owned salons, building a best-in-class operating model for growth and profitability while using these salons as a testing ground for initiatives that we can then scale across the system. And third, SmartStyle, addressing the fundamentals of this business and taking the immediate actions necessary to drive traffic and improve performance. These priorities continue to guide where we direct our resources and how we plan to drive sustainable, profitable growth at Regis. I'll quickly update you on the progress we're making across each of these areas. I'll start with Supercuts, which is our greatest brand opportunity with nearly half of our salon base and 60% of our royalties. With its scale, brand recognition and broad customer base, Supercuts is central to our growth strategy. For fiscal 2026, Supercuts delivered same-store sales growth of 3%, including strong performance throughout the year with 5% growth in Q3 and a 2.6% growth in Q4. This performance demonstrates the impact of the initiatives that we are implementing and importantly, reinforces that there is meaningful opportunity to continue strengthening and growing this brand. Against that backdrop, we're making strong progress on our strategic blueprint to modernize Supercuts for long-term growth. Recall that this plan is built around 3 pillars: brand strategy, digital experience and operational excellence. The first pillar, evolve the brand strategy, is well underway. We fully launched the new Supercuts marketing campaign in July, including the Supercuts, Supercuts video, which brings the refreshed brand positioning and the Confidence Without Compromise tagline to life in a more modern and engaging way. We're also finding ways to connect Supercuts with consumers through culture and entertainment. Our partnership with Jackson Olson from the Savannah Bananas is a great example of this approach. Jackson's strong following and the Savannah Bananas highly engaged young fan base give us an opportunity to put Supercuts in front of new audiences in an authentic and entertaining way. It helps that Jackson loves Supercuts and has amazing hair. We've had fun with social media initiatives and offering the Jack's hair style at Supercuts across the country. In addition, Jackson is a contestant in Season 5 of Dancing with the Stars, further demonstrating his popularity and appeal. These efforts are helping make Supercuts more relevant to today's consumer while reinforcing the brand's personality and our differentiation, not only through our skilled stylists, but also through differentiated hair services like color. The second pillar, modernizing the digital experience, is also underway. We're focused on improving the guest journey, including strengthening our loyalty program and testing online scheduling to make the experience more convenient and seamless for guests. We're strengthening our loyalty program to drive incremental visits, increase retention and maximize lifetime value while continuing to build a more robust CRM database that enables us to engage guests more effectively. With new marketing leadership and deep loyalty expertise now in place, we are well positioned to make loyalty a more powerful engine of profitable and sustainable growth. We're also differentiating the business by offering guests choice scheduling. This is the ability to schedule via app or web or simply walk in and get on the schedule. Early results from our online scheduling pilot are promising, and we look forward to sharing more results next quarter. The third pillar is operational excellence. This includes providing stronger support for franchisees, including communication, training and education, and coaching to improve execution and ultimately strengthen salon performance. During the last quarterly earnings call, I mentioned dedicating resources via a new leader for training and education. We have now hired a leader for this department who has hair salons in her blood. Her mother is a stylist and who brings significant expertise in high-quality training effectiveness. She and her team of seasoned trainers are building the curriculum for stylists and managers from onboarding through continued education. Our skilled stylists set us apart, and we will focus even more on development to increase retention and expand that differentiation. The important takeaway is that Supercuts' strategy has moved from planning to execution. The new brand work is in market, the digital initiatives are underway and our operating model is being implemented. And importantly, we are already extending this blueprint beyond Supercuts to other core brands, leveraging what we are learning across the portfolio. The second major area of focus is our company-owned salons. As mentioned on our last call, we now have dedicated leadership and support resources focused specifically on running the company's salon business. Our objective is to make our company salons a best-in-class operating model for growth and profitability while continuing to test important initiatives that can benefit the broader system. An example of this is our second visit marketing initiative, which is designed to convert more first-time guests into repeat guests. Another example is our new remodel and refresh design for Supercuts, which we will test in 3 company locations this fall. We will validate the costs and share the results with franchisees by November. In terms of results, we ended fiscal 2026 with 4% same-store sales growth for company-owned salons, driven primarily by pricing. Traffic remains an opportunity, and we're taking action to improve trends by strengthening the guest experience, increasing marketing efforts and enhancing our value proposition. We've also made meaningful progress on labor productivity in our company salons in Q4. Through adjustments to our pay plans in March and greater discipline around scheduling, we reduced labor margins significantly from first fiscal quarter to fourth, and we're on track to achieve our labor margin targets for fiscal '27. Overall, we will strengthen the company-owned salon portfolio by elevating the guest experience, driving profitable traffic and improving labor productivity and store level profitability. We know where the opportunities are, and we're moving with urgency to address them. The third major area of focus is SmartStyle, our second largest brand with about 25% of our total salons. I see a lot of potential in this brand, and our focus in fiscal 2027 is on addressing the fundamentals of the business and strengthening the value proposition for guests, particularly the Walmart shoppers and associates. We will quickly move into action with our franchisees, piloting several targeted initiatives, including optimizing hours of operations, improving staffing and training and attractive offers that appeal to Walmart shoppers, employees and their families. We are also evaluating opportunities to introduce more convenient express service options that meet the needs of the SmartStyle customers. The objective is straightforward: strengthen the value proposition, make SmartStyle more relevant and convenient to its core customers and ultimately drive profitable traffic. Across all core Regis brands, strengthening the health and performance of our franchise system remains a top priority. We have invested in additional resources to better support our franchisees to improve performance across the system. Our goal is to strengthen the entire system by elevating our brands, driving traffic and enhancing operational support through improved communication, and training and education. We are also leveraging AI-powered dashboards to help our operations team identify opportunities earlier and then direct resources where they can have the greatest impact. To help mitigate closures, we are focusing on key areas of opportunity while accelerating resale activity by connecting franchisees looking to exit with qualified franchisees seeking growth opportunities. By strengthening the health of our franchise system and supporting sustainable growth, our objective is to reduce closures and ultimately return the system to net unit growth. In summary, fiscal 2026 was about strengthening the foundation of Regis with meaningful progress in profitability and cash generation with 7 consecutive quarters of positive cash from operations. The Supercuts transformation is underway, and we already have tangible evidence that our actions are translating into results. Fiscal '27 is about moving from stabilization to sustainable, profitable growth. Our strategy remains clear: one, strengthen and differentiate our brands; two, drive profitable guest traffic; and three, improve the health of our salon portfolio while minimizing closures. These priorities will continue to guide how we operate and how we allocate resources. We have a lot of work to do, and I'm personally focused on making sure we execute against this strategy with discipline and urgency. This concludes our prepared remarks. Kirsten Zupfer: We'll now open the call for questions. Kersten Zupfer: [Operator Instructions] Our first question is from Ryan Meyers of Lake Street Capital Markets. Ryan Meyers: Congrats on the solid progress here. Just thinking about the positive same-store sales at Supercuts during the quarter, can you just talk about how much of that came from pricing versus better traffic? And then maybe the system as a whole, just how you have seen traffic trends, if there's been any improvement, no change and how we should maybe think about that? Susan Lintonsmith: Yes. Thank you, Ryan. This is Susan. So primarily, the growth in Supercuts did come from average ticket versus traffic. However, traffic was improved. It was down, but only by like 1 point or so. So it's improved for Supercuts and the trend is moving in the right direction. For the entire portfolio, as I mentioned, traffic absolutely is an opportunity for us to continue to make sure that we get the growth from traffic more so than pricing going forward. So that is something that we are very much focused on from our marketing efforts to improving operations. Ryan Meyers: Okay. Got it. That's helpful. And then lastly, I think you guys called out that closures in 2027 should be pretty similar to what they were in 2026. I just want to confirm and make sure I'm understanding this correctly. Is that both on the corporate-owned portfolio as well as the franchise salons? Susan Lintonsmith: '27 should not be materially different than what we had in 2026. We are expecting fewer closures in our company locations in fiscal 2027. Kersten Zupfer: The next question comes from Nathan... Unknown Analyst: I was wondering -- and this is my kind of a specific question, but I was wondering if you guys could spell out or kind of lay out the main median and potentially how many stores fall under that $150,000 threshold laid out in the master lease for the Walmart stores in terms of revenue, that would be possible? Kersten Zupfer: Yes. That is pretty specific in terms of like how we quartile. So maybe we can take that offline. We do look at our salons by quartile. As I mentioned, the majority of our closures relate to lower volume locations in the tune of $130,000, $135,000 of AUV. Is that helpful? And then we can get into more specifics. Unknown Analyst: Yes, just because like I was looking at the FDD document or financial disclosure documentation, and that's something that's missing compared to the other -- like that's available for [ Super-Styles ] and Cost Cutters, for example. I was just trying to sort of dive into that, but that's fine, too. Yes, that's kind of my main question. But yes. Kersten Zupfer: Okay. We'll touch base. Thank you. I don't see any other questions coming in. Actually, one just came in. [ Greg Bennett ]? Unknown Analyst: Yes. In your thoughts about the financing -- refinancing the balance sheet, are you considering or is the possibility to do a rights offering with your shareholders, but continue to preserve the NOL going -- how much of the NOL going forward is there? Kersten Zupfer: Yes. We have a significant over $450 million of NOL. As it relates to the refinancing, we are looking at all options. I don't want to get into any specifics, but know that we are moving swiftly and reviewing all options related to the potential refinancing. Unknown Analyst: So is it possible to do a rights offering with TCW and the rest of your shareholders and still have a backstop capacity to complete the rights offering if you were to do that? Kersten Zupfer: Yes. I don't -- at this point, I don't want to get into any specifics. So I'll stick with -- we're continuing to look at all opportunities related to refinancing. Unknown Analyst: Second question, the lease liability has been going down. What do you anticipate. You've mentioned the possibility of having 200 -- I think, similar to this past year, 200 store closures. Are those ones that would mainly be involved with you reducing your lease liability also? And you mentioned also that, I guess, the leases that are coming up, the owner of the store or the franchise has now taking the obligation. What do you anticipate your lease liability to be at the end of next year? Kersten Zupfer: Yes. So the 200 -- in terms of closures, we expect closures to be about the same that they were in fiscal year '26. Some of those leases -- so the lease liability will come down for those closures. But you're right. The other reason that, that liability is coming down is franchisees are moving on to their own leases. So it's a combination of both closures as well as franchisees taking on the lease. Unknown Analyst: With the real estate market like it is, commercial real estate, are you finding that it's lease -- the liability for leases, the rents are actually going down that the owner of the real estate wants to keep you -- keep a store in place? Kersten Zupfer: I mean we continue to see inflationary increases as we renew leases. Unknown Analyst: The cost is going up, not down. Kersten Zupfer: Thank you. Susan Lintonsmith: All right. I don't see any more questions. I just wanted to again thank everybody for joining us today. And just to summarize, we had a solid fiscal 2026, and we're very positive and optimistic as we enter fiscal 2027 and just know that we're going to pursue it with the momentum and urgency to build on the foundation that we've built. So thank you so much for your continued support of Regis Corporation and for joining the call today. Before you buy stock in Regis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Regis wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $437,097!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,355,077!* Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of September 1, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Regis (RGS) Q4 2026 Earnings Call Transcript was originally published by The Motley Fool

Positive Full-Year Same-Store Sales Growth, Including 3.0% at Supercuts Continued Profitability and Positive Cash Flow Support On-Going Efforts to Advance Long-term Growth Initiatives MINNEAPOLIS, September 01, 2026--(BUSINESS WIRE)--Regis Corporation (NasdaqGM: RGS), a leader in the haircare industry, today announced financial results for the fourth fiscal quarter and full year ended June 30, 2026. Susan Lintonsmith, Regis Corporation's President and Chief Executive Officer, commented, "Fiscal 2026 marked a year of continued progress toward strengthening the foundation of our business. We delivered revenue of $224.5 million, operating income of $24.4 million, Adjusted EBITDA of $32.8 million, and generated more than $13 million in cash from operations while continuing to position the business for its next phase of growth. "As we enter fiscal 2027, we are building on that stronger foundation to drive sustainable growth. Increasing traffic is key to unlocking our full potential, and continued focus on strengthening our brands and delivering an elevated guest experience at an affordable price will help us reach more guests, build loyalty, and drive repeat visits. We see significant opportunity ahead and are moving with discipline and urgency to capture it." "Reducing our cost of debt remains a priority," said Kersten Zupfer, Executive Vice President and Chief Financial Officer. "We are actively evaluating a range of refinancing alternatives with potential partners and are advancing through the diligence processes required for each. Our process has the active oversight of our Board, including our recently appointed director, who is also a significant shareholder. We remain focused on achieving the best possible outcome and will pursue a transaction if the economics and terms represent a meaningful improvement over our existing agreement." Financial Highlights: Fourth quarter fiscal 2026 compared to fourth quarter fiscal 2025: Consolidated revenue of $56.0 million versus $60.4 million, a decrease of $4.4 million Same-store sales growth: Supercuts: 2.6%; Consolidated: 0.1% Operating income of $6.6 million versus $7.3 million Seventh consecutive quarter of positive cash from operations Net income of $4.4 million versus $116.5 million Diluted EPS of $1.51 versus $42.58 Adjusted net income of $3.0 million versus $2.0 million Adjusted diluted EPS of $1.04 versus $0.74 Adjusted EBITDA of $9.2 million versus $9.7 million Full fiscal year 2026 compared to full fiscal year 2025: Consolidated revenue of $224.5 million versus $210.1 million Same-store sales growth: Supercuts: 3.0%; Consolidated: 0.9% Operating income of $24.4 million versus $19.9 million Cash from operations of $13.1 million versus $13.7 million, a decrease of $0.6 million Net income of $6.9 million versus $123.5 million Diluted EPS of $2.41 versus $46.10 Adjusted net income of $7.8 million versus $7.6 million Adjusted diluted EPS of $2.70 versus $2.85 Adjusted EBITDA of $32.8 million versus $31.6 million Revenue Total consolidated revenue of $56.0 million in the fourth quarter declined $4.4 million, driven primarily by lower non-margin franchise rental income. Total revenue for fiscal year 2026 of $224.5 million, increased $14.4 million, driven primarily by an increase in company-owned salon revenue, partially offset by lower royalties, fees, and non-margin franchise rental income. Operating Income Regis reported fourth quarter 2026 income from operations of $6.6 million compared to $7.3 million in the fourth quarter 2025. The $0.7 million decrease was primarily driven by lower royalties and fees. Regis reported fiscal year 2026 income from operations of $24.4 million compared to $19.9 million in fiscal year 2025. The $4.5 million increase was driven primarily by increased company-owned salon revenue, partially offset by lower royalties and fees. Income from Continuing Operations Regis reported fourth quarter 2026 net income from continuing operations of $4.4 million, or $1.51 per diluted share, compared to net income from continuing operations of $118.4 million, or $43.27 per diluted share, in the fourth quarter 2025. Regis reported fiscal year 2026 net income from continuing operations of $6.9 million, or $2.41 per diluted share, compared to net income from continuing operations of $117.0 million, or $43.67 per diluted share, in 2025. The year-over-year decrease in net income from continuing operations in both periods was driven primarily by the $115.5 million income tax benefit related to the partial release of the Company's prior year income tax valuation allowance in the fourth fiscal quarter of 2025. Net Income The Company reported fourth quarter 2026 net income of $4.4 million, or $1.51 per diluted share, compared to net income of $116.5 million, or $42.58 per diluted share, for the same period last year. The Company reported fiscal year 2026 net income of $6.9 million, or $2.41 per diluted share, compared to net income of $123.5 million, or $46.10 per diluted share, in 2025. The year-over-year decrease in net income in both periods was driven by the $115.5 million income tax benefit related to the partial release of the Company's prior year income tax valuation allowance in the fourth fiscal quarter of 2025. Adjusted EBITDA Fourth quarter Adjusted EBITDA of $9.2 million declined $0.5 million versus Adjusted EBITDA of $9.7 million in the same period last year. The decrease was driven primarily by the year-over-year unfavorable impact from foreign currency translation adjustments as well as lower franchise revenue. Fiscal year 2026 Adjusted EBITDA of $32.8 million improved $1.2 million, versus an Adjusted EBITDA of $31.6 million in the same period last year. The improvement was primarily due to higher net company-owned salon revenue and lower general and administrative expenses, partially offset by lower franchise revenue. Fourth Quarter Fiscal Year 2026 Segment Results Franchise Revenue Fourth quarter franchise revenue was $36.2 million, a $3.7 million, or 9.3%, decrease compared to the prior year quarter. Non-margin franchise rental income decreased $2.8 million due to fewer salons in the current year and franchisees signing their own leases. Royalties were $13.7 million, a $0.4 million, or 2.8%, decrease versus the same period last year due to the decline in salon count. Fiscal year 2026 franchise revenue was $146.2 million, a $20.2 million, or 12.1%, decrease compared to the prior year, primarily due to a decline in non-margin franchise rental income, royalties, and fees as a result of a lower franchise salon count, primarily driven by the portfolio of salons moving to the Company-owned segment mid-fiscal year 2025 as a result of the acquisition of Alline Salon Group. Franchise Segment Profit Fourth quarter franchise segment profit of $5.6 million decreased $1.0 million compared to the same period last year, primarily due to lower royalties and fees. Fiscal year 2026 franchise segment profit of $21.1 million increased $0.9 million year-over-year. The year-over-year increase was primarily the result of decreased general and administrative expenses, partially offset by lower royalties and fees. Franchise Adjusted EBITDA Fourth quarter Franchise Adjusted EBITDA of $6.4 million decreased $1.3 million compared to the same period last year. Fiscal year 2026 Franchise Adjusted EBITDA of $25.2 million decreased $3.2 million year-over-year. The decline in both periods was primarily driven by decreases in royalties and fees as a result of lower salon count. Company-Owned Salon Revenue Fourth quarter revenue for the company-owned segment decreased $0.7 million versus the prior year to $19.8 million. The year-over-year decline in revenue was driven by lower salon count in the fourth quarter of fiscal year 2026 compared to the same period last year. Fiscal year 2026 revenue for the company-owned segment improved $34.6 million versus the prior year to $78.3 million primarily due to a full year of income generated by the salons acquired in the acquisition of Alline Salon Group in the second quarter of fiscal year 2025. Company-Owned Segment Profit (Loss) Fourth quarter company-owned segment profit (loss) improved $0.3 million year-over-year, primarily due to decreased rent and salon expenses due to the closures of unprofitable salons. Fiscal year 2026 company-owned segment profit (loss) improved $3.6 million year-over-year, driven primarily by the income generated by the salons acquired through the acquisition of Alline Salon Group in the second fiscal quarter of the prior fiscal year. Company-Owned Adjusted EBITDA Fourth quarter Company-owned Adjusted EBITDA improved $0.8 million year-over-year, primarily due to decreased rent and salon expenses due to the closures of unprofitable salons. Fiscal year 2026 Company-owned Adjusted EBITDA improved $4.4 million year-over-year, driven primarily by the income generated by the salons acquired through the acquisition of Alline Salon Group in the second fiscal quarter of the prior fiscal year. Balance Sheet and Cash Flow The Company ended fiscal year 2026 with $26.0 million in cash and cash equivalents. As of June 30, 2026, the Company's borrowing arrangements include a $116.1 million term loan, $11.1 million of paid in kind interest, and a $25.0 million revolving credit facility with a $10.0 million minimum liquidity covenant that expires in June 2029. As of June 30, 2026, the unused available credit under the revolving credit facility was $19.0 million and total liquidity per the agreement was $35.0 million. Net cash provided by operating activities for the fiscal year totaled $13.1 million, a decrease of $0.6 million from the prior year. Cash generation decreased slightly due to the use of restricted ad fund cash in the current year period, offset partially by our lower cost structure. Non-GAAP reconciliations For GAAP to non-GAAP reconciliations, please refer to the attached section titled "Non-GAAP Reconciliations." A complete reconciliation of reported earnings to adjusted earnings is included in this press release and is available on the Company’s website at www.regiscorp.com. Earnings Webcast Regis Corporation will host a conference call via webcast discussing fourth quarter and fiscal year 2026 results today, September 1, 2026, at 7:30 a.m., Central time. Interested parties are invited to participate in the live webcast by registering for the event at www.regiscorp.com/investor-relations.html. The webcast will include a slide presentation. A replay of the presentation will be available on our website at the same web address. About Regis Corporation Regis Corporation (NasdaqGM:RGS) is a leader in the haircare industry. As of June 30, 2026, the Company franchised or owned 3,712 locations. Regis' franchised and corporate locations operate under concepts such as Supercuts®, SmartStyle®, Cost Cutters®, Roosters®, and First Choice Haircutters®. For additional information about the Company, including a reconciliation of certain non-GAAP financial information and certain supplemental financial information, please visit the Investor Information section of the corporate website at www.regiscorp.com. This press release contains or may contain "forward-looking statements" within the meaning of the federal securities laws, including statements concerning anticipated future events and expectations that are not historical facts. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this document reflect management's best judgment at the time they are made, but all such statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed in or implied by the statements herein. Such forward-looking statements are often identified herein by use of words including, but not limited to, "may," "will," "believe," "project," "forecast," "expect," "estimate," "anticipate," and "plan." In addition, the following factors could affect the Company's actual results and cause such results to differ materially from those expressed in forward-looking statements. These uncertainties include a potential material adverse impact on our business and results of operations as a result of changes in consumer shopping trends and changes in manufacturer distribution channels; our ability to realize the anticipated benefits of the Alline Acquisition; laws and regulations could require us to modify current business practices and incur increased costs including increases in minimum wages; changes in the general economic environment; changes in consumer tastes, hair product innovation, fashion trends and consumer spending patterns; our reliance on franchise royalties and overall success of our franchisees’ salons; our ability to minimize risks associated with owning and operating additional salons; our salons' dependence on a third-party supplier agreement for merchandise; our and our franchisees' ability to attract, train and retain talented stylists and salon leaders; the success of our franchisees, which operate independently; data security and privacy compliance, and our ability to manage cyber threats and protect the security of potentially sensitive information about our guests, franchisees, employees, vendors or Company information; our use of artificial intelligence; the ability of the Company to maintain a satisfactory relationship with Walmart; marketing efforts to drive traffic to our franchisees' and company-owned salons; our ability to maintain and enhance the value of our brands; reliance on legacy information technology systems; reliance on external vendors; the use of social media; the effectiveness of our enterprise risk management program; potential challenges with the implementation or ongoing operation of our new enterprise resource planning system; our ability to generate sufficient cash flow to satisfy our debt service obligations; compliance with covenants in our financing arrangement; premature termination of agreements with our franchisees; the continued ability of the Company to implement cost reduction initiatives and achieve expected cost savings; our continued ability to compete in our business markets; potential liabilities related to the employee retention credit received by Alline; reliance on our management team and other key personnel; the continued ability to maintain an effective system of internal control over financial reporting; changes in tax exposure; the ability of our Tax Preservation Plan to protect the future availability of the Company's tax assets; potential litigation and other legal or regulatory proceedings; or other factors not listed above. Additional information concerning potential factors that could affect future financial results is set forth under Item 1A of the Company's Annual Report on Form 10-K for the year ended June 30, 2026. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further disclosures made in our subsequent annual and periodic reports filed or furnished with the SEC on Forms 10-K, 10-Q, and 8-K and Proxy Statements on Schedule 14A. Non-GAAP Reconciliations: This press release includes a presentation of operating income excluding certain non-cash charges, Adjusted EBITDA, Franchise Adjusted EBITDA, Company-owned Adjusted EBITDA, and adjusted franchise revenue, which are non-GAAP measures. The non-GAAP measures are financial measures that do not reflect United States Generally Accepted Accounting Principles (GAAP). We believe our presentation of the non-GAAP measures provides meaningful insight into our ongoing operating performance and a supplemental perspective of our results of operations. Presentation of the non-GAAP measures allows investors to review our core ongoing operating performance from the same perspective as management and the Board of Directors. These non-GAAP financial measures provide investors an enhanced understanding of our operations, facilitate investors' analyses and comparisons of our current and past results of operations and provide insight into the prospects of our future performance. We also believe the non-GAAP measures are useful to investors because they provide supplemental information that research analysts frequently use to analyze financial performance. Items impacting comparability are not defined terms within U.S. GAAP. Therefore, our non-GAAP financial information may not be comparable to similarly titled measures reported by other companies. We determine the items to consider as "items impacting comparability" based on how management views our business, makes financial, operating and planning decisions and evaluates the Company's ongoing performance. The reconciliation of U.S. GAAP operating income to non-GAAP operating income excluding certain non-cash charges is included in the release. The following items have been excluded from our non-GAAP Adjusted EBITDA results: stock-based compensation expense, discontinued operations, one-time professional fees and settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired right of use asset, lease termination fees, and asset retirement obligation costs. We present adjusted revenue to provide a meaningful Franchise Adjusted EBITDA margin, which removes non-margin revenue from total revenue to arrive at an adjusted margin. Margin is a common metric used by investors, however, the majority of our revenue is offset by equal expense, so it does not contribute to our margin. We remove the non-margin revenue from this metric in order to show a meaningful margin rate. The method we use to produce non-GAAP results is not in accordance with U.S. GAAP and may differ from methods used by other companies. These non-GAAP results should not be regarded as a substitute for corresponding U.S. GAAP measures but instead should be utilized as a supplemental measure of operating performance in evaluating our business. Non-GAAP measures do have limitations as they do not reflect certain items that may have a material impact upon our reported financial results. As such, these non-GAAP measures should be viewed in conjunction with our financial statements prepared in accordance with U.S. GAAP. View source version on businesswire.com: https://www.businesswire.com/news/home/20260901853358/en/ Contacts REGIS CORPORATION: Kersten [email protected] HAYDEN IR: James [email protected] (646) 755-7412 Brett [email protected] (646) 536-7331

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved seven consecutive quarters of positive cash from operations, signaling a successful transition from business stabilization to a foundation for sustainable growth. Performance was driven largely by Supercuts, which delivered 3% same-store sales growth for the full year, marking its fifth consecutive year of growth. Management attributed the 7.3% decline in fourth-quarter total revenue to lower non-margin franchise rental income as franchisees transitioned to independent leases. The decline in franchise salon count was mitigated by the fact that closures were predominantly lower-volume locations with an average unit volume of $136,000, significantly below the top-quartile average. Strategic focus has shifted toward a 'blueprint' for Supercuts involving refreshed brand positioning, digital modernization, and enhanced stylist training to drive traffic. Company-owned salons are being utilized as a best-in-class operating model and testing ground for initiatives like second-visit marketing and new salon designs before system-wide scaling. Management expects fiscal 2027 salon closures to be materially consistent with fiscal 2026 levels, though company-owned salon closures are projected to decrease. The company is actively exploring multiple refinancing options for its $128 million funded debt, prioritizing terms that preserve shareholder value and lower the overall cost of debt. Strategic initiatives for SmartStyle in 2027 focus on optimizing hours of operation and introducing express service options to better align with Walmart shopper and associate needs. A planned excess cash flow sweep in September 2026 is expected to reduce outstanding debt by approximately $7 million to $8 million. Future growth is expected to be driven by traffic improvements rather than just pricing, supported by new loyalty programs and online scheduling pilots. Net income comparisons were heavily skewed by a $115.5 million discrete tax benefit recognized in the prior year, making adjusted net income a more accurate reflection of performance. Regis is reallocating shared organizational resources specifically to the company-owned salon segment, which will shift cost reporting but not increase total G&A spending. The company maintains a significant Net Operating Loss (NOL) carryforward of over $450 million, which remains a key consideration in refinancing and structural decisions. Ongoing inflationary pressures continue to drive increases in rent costs during lease renewals despite the broader commercial real estate environment. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that growth was primarily driven by average ticket (pricing) rather than traffic, though traffic trends are improving and were only down about 1%. Improving traffic remains the primary focus for the entire portfolio through marketing and operational enhancements. Management declined to provide specifics on a potential rights offering but confirmed they are evaluating all options to address the balance sheet. The company emphasized the importance of its $450 million in NOLs and stated that the Board, including a significant shareholder director, is aligned on the process. The reduction in lease liability is a dual result of store closures and the strategic shift of franchisees moving onto their own independent leases. Despite some market weakness, Regis is seeing inflationary increases in rent rather than decreases when renewing existing salon leases.

Interested in Regis Corp? Here are five stocks we like better. Fiscal 2026 profitability and cash generation improved: Revenue rose to $224.5 million, adjusted EBITDA increased to $32.8 million, and unrestricted operating cash flow more than doubled to $13.5 million. Regis ended the year with $26 million in unrestricted cash after repaying $2.7 million of term-loan principal. Fourth-quarter revenue and EBITDA declined due mainly to lower franchise rental income, royalties and fees as the franchise salon count fell. However, Supercuts same-store sales grew 2.6% in the quarter and 3% for the full year, extending its growth streak to five years. Refinancing and brand improvements are key fiscal 2027 priorities: Regis is evaluating options to reduce its debt costs while planning Supercuts modernization, better company-owned salon traffic and value initiatives, and targeted efforts to address SmartStyle’s performance and salon closures. Regis (NASDAQ:RGS) reported higher adjusted EBITDA and substantially improved unrestricted operating cash flow for fiscal 2026, while outlining plans to build on Supercuts’ sales momentum, improve company-owned salon operations and address traffic and value challenges at SmartStyle. Chief Executive Officer Susan Lintonsmith said the company completed fiscal 2026 with $224.5 million in revenue, $32.8 million in adjusted EBITDA and more than $13 million in cash from operations. Regis generated positive cash from operations for seven consecutive quarters during the year. → OneMain’s Yield Comes With a Catch Consolidated same-store sales rose 0.1% in the fourth quarter, led by a 2.6% increase at Supercuts. For the full year, consolidated same-store sales increased 0.9%, while Supercuts same-store sales grew 3%, extending the brand’s growth streak to five consecutive years. Fourth-quarter revenue totaled $56 million, down $4.4 million, or 7.3%, from the prior-year period. The company attributed the decline primarily to lower non-margin franchise rental income as franchise salon count declined and certain franchisees transitioned to their own leases. → Apple’s Foldable iPhone Could Be a Catalyst, But Not a Cure-All Operating income was $6.6 million, while consolidated adjusted EBITDA was $9.2 million, down $500,000 from $9.7 million a year earlier. The decrease reflected unfavorable foreign-currency translation adjustments and lower franchise revenue, according to the company. Net income was $4.4 million, or $1.51 per diluted share, compared with $116.5 million, or $42.58 per diluted share, in the prior-year quarter. Regis said the prior-year comparison was heavily affected by a $115.5 million discrete tax benefit and a $1.9 million loss from discontinued operations, net of tax. Adjusted net income increased to $3 million from $2 million. → Strike a Balance Between Growth and Stability With These 3 Names Ready to Rally Adjusted general and administrative expense fell to $9.8 million from $10.4 million in the prior-year quarter. Franchise-segment adjusted EBITDA declined $1.3 million to $6.4 million, primarily because of lower royalties and fees tied to fewer salons. Company-owned salon adjusted EBITDA, meanwhile, rose $800,000 to $2.8 million, aided by lower rent and salon expenses following the closure of unprofitable locations. For fiscal 2026, Regis reported revenue of $224.5 million, up $14.4 million from fiscal 2025. The increase was driven by higher company-owned salon revenue, partly offset by lower royalties, fees and franchise rental income. Full-year operating income increased to $24.4 million from $19.9 million. Adjusted EBITDA rose to $32.8 million from $31.6 million, with the improvement attributed to a full year of company-owned salon revenue and lower G&A costs, partially offset by lower franchise revenue. Net income was $6.9 million, or $2.41 per diluted share, compared with $123.5 million, or $46.10 per diluted share, a year earlier. The prior-year result included the $115.5 million tax benefit and $6.5 million of income from discontinued operations, net of tax. Adjusted net income rose to $7.8 million from $7.6 million, although adjusted diluted earnings per share declined to $2.70 from $2.85. Unrestricted cash from operations more than doubled to $13.5 million from $5.4 million in fiscal 2025. Reported net cash provided by operating activities was $13.1 million, compared with $13.7 million a year earlier, a figure that includes restricted advertising-fund cash. Regis used cash during the year to fund $2 million in capital investments and repay $2.7 million of term-loan principal. As of June 30, the company had $26 million in unrestricted cash and cash equivalents, more than 50% higher than a year earlier. As of June 30, Regis had approximately $128 million in funded debt, including $116 million of term-loan principal, $11 million of paid-in-kind interest and about $1 million outstanding under its revolving credit facility. Net of cash, funded debt was approximately $102.2 million, or about 3.1 times adjusted EBITDA. The company said it expects to make an annual excess cash flow sweep payment in September of approximately $7 million to $8 million, which would reduce both cash and debt. Regis reported $19 million of unused revolver availability and total liquidity of $35 million at year-end. Lintonsmith said the board and management are actively evaluating refinancing alternatives. The company said it is seeking terms that lower its overall cost of debt and create meaningful shareholder value, but declined to discuss specific structures during the question-and-answer session. Regis also said it has more than $450 million in net operating losses. Lintonsmith identified Supercuts as the company’s largest brand opportunity, representing nearly half of Regis’ salon base and 60% of its royalties. She said fiscal 2026 Supercuts growth was primarily driven by average ticket, though traffic trends improved and were down by only about one percentage point. The company has begun implementing a Supercuts modernization plan focused on brand strategy, digital experience and operational execution. Regis launched a new marketing campaign in July, is testing online scheduling and is working to strengthen its loyalty program and customer relationship management capabilities. Regis also hired a training and education leader to build stylist and manager curriculum, from onboarding through continuing education. Lintonsmith said the company is extending elements of the Supercuts blueprint to other core brands. Company-owned salons delivered 4% same-store sales growth in fiscal 2026, primarily from pricing. Regis said traffic remains an opportunity and that it is pursuing stronger marketing, guest experience initiatives and a revised value proposition. The company also said it improved labor productivity during the fourth quarter through pay-plan adjustments and more disciplined scheduling. At SmartStyle, Regis plans to focus on Walmart shoppers and associates through initiatives involving operating hours, staffing, training, promotional offers and potential express-service options. Regis closed 207 franchise salons and opened eight during fiscal 2026, for a net decline of 199 locations. The company said closed locations were predominantly lower-volume salons, with average unit volume of approximately $136,000. Regis does not expect fiscal 2027 closures to be materially different from fiscal 2026, though it expects fewer closures in company-owned locations. The company said it is using additional franchise support resources, improved training and AI-powered dashboards to identify operating opportunities earlier. It is also seeking to accelerate resale activity by connecting franchisees looking to exit with qualified operators seeking growth opportunities, with the longer-term objective of reducing closures and returning to net unit growth. Regis (NASDAQ: RGS) is a company that owns, operates and franchises a portfolio of hair salon and beauty service brands. Its business centers on providing haircutting, styling, coloring and other salon services through both company-owned and franchised locations. The company's brand portfolio includes well-known names in the haircut and salon market that serve a range of customer segments from value-focused walk-in haircuts to full-service salon experiences. Regis generates revenue through salon operations, franchise fees and the sale of professional hair-care products and retail items. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Regis Q4 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

Shares of Regis Corporation RGS have gained 10.9% since the company reported earnings for the quarter ended March 31, 2026, outperforming the S&P 500 Index’s 0.3% rise over the same period. Over the past month, the stock has risen 2.5% compared with the S&P 500’s 4.9% increase. Regis reported mixed third-quarter fiscal 2026 results, with lower revenue but improved profitability and cash generation. Consolidated revenue declined 7.9% year over year to $52.4 million from $56.9 million, primarily due to lower royalties, fees and franchise rental income. Net income from continuing operations rose to $0.7 million, or 26 cents per diluted share, from $0.3 million, or 8 cents per share, in the year-ago quarter. Adjusted EBITDA increased 7.8% to $7.7 million from $7.1 million. Same-store sales rose 2.6% on a consolidated basis, led by a 5% increase at Supercuts and a 9.6% gain in company-owned salons. Franchise revenue fell 12.4% to $33.3 million from $38 million, while company-owned salon revenue edged up to $19.1 million from $19 million a year earlier. Franchise adjusted EBITDA slipped 0.7% to $6.2 million from $6.3 million, while company-owned salon adjusted EBITDA improved to $1.4 million from $0.8 million. Operating income increased 13.9% to $5.7 million from $5 million a year earlier, supported by lower general and administrative (G&A) expenses and improved profitability in company-owned salons. Adjusted G&A expenses declined 6.8% to $9.5 million from $10.2 million. Management said disciplined cost management and operational improvements helped drive the gains in profitability and cash flow. Regis continued to benefit from stronger ticket pricing and seasonal demand trends during the quarter. System-wide same-store sales improved 2.6% against a 1.1% decline in the prior-year period. Service revenue growth offset continued weakness in retail product sales across brands. Supercuts remained the strongest-performing concept, posting 5% same-store sales growth, while SmartStyle continued to lag with a 3.3% decline. Portfolio brands delivered a 1.4% increase. Within the franchise business, adjusted EBITDA slipped 0.7% to $6.2 million from $6.3 million due to lower royalties and reduced non-cash franchise fee recognition. However, franchise EBITDA margin improved to 18.7% from 16.5% a year ago, aided by lower G&A expenses. The company-operated salon segment generated adjusted EBITDA of $1.4 million, up from $0.8 million in the prior-year quarter, supported by pricing actions and operational improvements. Regis said franchise closures continued to moderate. Franchise location count declined by 150 salons during the first nine months of fiscal 2026 compared with declines of 414 salons in fiscal 2024 and 430 salons in fiscal 2025. Management said many of the closed units were underperforming salons with lower average unit volumes. Regis Corporation price-consensus-eps-surprise-chart | Regis Corporation Quote CEO Susan Lintonsmith, who recently assumed the leadership role, outlined three key priorities — expanding the Supercuts brand, improving company-owned salon operations and turning around SmartStyle. For Supercuts, Regis is focusing on brand repositioning, digital modernization and operational improvements. The company highlighted enhancements to its loyalty program, investments in technology infrastructure and evaluations of AI-driven tools for salon scheduling and labor optimization. Management also plans to strengthen stylist training and franchisee support systems to improve guest experience consistency. Company-owned salons are being positioned as testing grounds for operational initiatives and technology tools before wider rollout across the franchise network. Regis acknowledged that labor costs increased faster than expected following changes to stylist pay plans and minimum wage increases, prompting pricing increases to offset margin pressure. Management said traffic trends remain an area of focus despite recent pricing-driven sales gains. SmartStyle remained a weak spot in the portfolio. Regis said the brand underperformed relative to the broader system and is working with franchisees to improve traffic trends, guest retention and salon-level profitability while aligning the brand more closely with Walmart’s value-oriented customer base. Regis generated $5.3 million in unrestricted cash from operations during the quarter and $8.9 million during the first nine months of fiscal 2026, marking its sixth consecutive quarter of positive operating cash flow. Cash and cash equivalents totaled $22.9 million at quarter-end, while available liquidity stood at $31.9 million. Outstanding debt was $127.1 million, excluding deferred financing costs and warrant values. Management reiterated that improving financial flexibility and reducing borrowing costs remain priorities. RGS said it is evaluating refinancing opportunities for its existing credit agreement as it approaches the two-year anniversary of the facility in June. Regis continued integrating the Alline Salon Group acquisition, completed in December 2024. The acquisition added roughly 300 company-owned salons, including Supercuts, Cost Cutters and Holiday Hair locations and continued to contribute to year-to-date revenue and EBITDA growth. Management said the acquired salons are being used to pilot operational improvements, pricing initiatives and technology enhancements before broader implementation across the system. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Regis Corporation (RGS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Regis Corp? Here are five stocks we like better. Regis posted stronger profitability in fiscal Q3 even though revenue fell 8.1% to $52.4 million, with GAAP operating income rising to $5.7 million and adjusted EBITDA up 8.5% to $7.7 million. Lower G&A costs and better performance at company-owned salons helped offset weaker franchise fee recognition. Same-store sales improved 2.6%, led by a 5% gain at Supercuts and a 9.6% increase at company-owned salons. New CEO Susan Lintonsmith said the company is focused on moving Regis “from stability to growth,” with Supercuts and SmartStyle at the center of the turnaround plan. Cash flow stayed positive for a sixth straight quarter, with $8.9 million generated from operations in the first nine months of fiscal 2026. Management also said debt reduction and a possible refinancing are key priorities as Regis works to improve financial flexibility. Regis (NASDAQ:RGS) reported higher profitability and positive cash flow in its fiscal third quarter of 2026, even as total revenue declined, as the salon franchisor pointed to cost controls, company-owned salon improvements and a sharper focus on its largest brands under new Chief Executive Officer Susan Lintonsmith. Lintonsmith, who recently became CEO after serving on the company’s board since January 2025 and most recently as board chair, used her first earnings call in the role to outline a strategy aimed at moving Regis “from stability to growth.” She said the company’s priorities include accelerating growth at Supercuts, improving company-owned salons and addressing underperformance at SmartStyle. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? “Our third quarter results reflect another quarter of strong execution, demonstrated by same-store sales growth, increasing profitability, and solid cash flow generation,” Lintonsmith said. Regis said consolidated same-store sales increased 2.6% in the third quarter. Supercuts same-store sales rose 5%, while company-owned salons posted a 9.6% increase. Lintonsmith said pricing actions, particularly in company-owned salons, supported the sales gains, though she emphasized that the company is focused on driving traffic over time. → MercadoLibre Boldly Invests in Growth: Discount Deepens Supercuts remains Regis’ flagship brand, representing nearly 50% of salons and more than 60% of royalties, according to Lintonsmith. Year to date, Supercuts same-store sales are up 3.2%. She cautioned that results may fluctuate during the brand’s transformation and said sustained improvement will depend on durable traffic gains. Regis is advancing a Supercuts “North Star” transformation plan built around three pillars: evolving the brand strategy, modernizing the digital experience and improving operational excellence. Lintonsmith said the brand positioning work has been completed, including a new tagline, “Confidence Without Compromise.” → MP Materials Is Quietly Building a Rare Earth Powerhouse Chief Financial Officer Kersten Zupfer said total third-quarter revenue was $52.4 million, down 8.1%, or $4.6 million, from the prior-year period. She said the decline was primarily due to lower non-cash franchise fee recognition. Despite the revenue decline, Regis reported GAAP operating income of $5.7 million, up from $5 million a year earlier. Income from continuing operations rose to $735,000 from $250,000 in the prior-year quarter. Zupfer said the improvements were primarily driven by lower general and administrative expenses and increased company-owned salon contribution, partially offset by lower contribution from higher-margin royalty revenue. Consolidated adjusted EBITDA was $7.7 million, up 8.5% from $7.1 million in the year-ago quarter. Year-to-date adjusted EBITDA was $23.6 million, up $1.7 million from the prior year. Adjusted G&A expense declined to $9.5 million from $10.2 million a year earlier. Franchise segment adjusted EBITDA was $6.2 million, down slightly from $6.3 million in the prior-year quarter, due to lower royalties and non-cash franchise fees, partially offset by lower G&A costs. Franchise EBITDA as a percentage of franchise revenue improved to 18.7% from 16.5%. Company-owned salon adjusted EBITDA improved by $600,000 year over year to $1.4 million, which the company attributed primarily to pricing and portfolio optimization initiatives. Regis generated $8.9 million in cash from operations for the first nine months of fiscal 2026, compared with $7 million in the prior-year period. Of that amount, $5.3 million was generated in the third quarter. Zupfer said it marked the company’s sixth consecutive quarter of positive cash from operations. Zupfer distinguished between unrestricted operating cash and restricted advertising fund cash. For the first nine months of fiscal 2026, Regis generated $9.3 million in unrestricted cash from core operations, while using $400,000 in restricted advertising fund cash. She said the company continues to expect a meaningful increase in unrestricted cash generated from core operations for the full fiscal year compared with fiscal 2025. The company also said it has deliberately accumulated a surplus in its advertising fund since fiscal 2025 by moderating spending while it focused on business transformation. Zupfer said new marketing creative is expected to be ready in the first quarter of fiscal 2027, when Regis plans to deploy accumulated advertising fund dollars to increase marketing efforts. Regis said franchise closures have moderated in fiscal 2026. During the first nine months of the fiscal year, the franchise location count declined by 150 locations, net of openings, or about 50 locations per quarter. Zupfer said the company expects the fourth-quarter net decline to be generally consistent with that recent pace. That would represent an improvement from net franchise location declines of 414 in fiscal 2024 and 430 in fiscal 2025. Zupfer said many prior closures involved underperforming locations at the end of their lease life. As of March 31, 2026, the franchise location count was down 279 salons from a year earlier. The closed locations had average unit volumes of approximately $130,000, about $350,000 below the average unit volume of stores in the company’s highest-performing quartile, Zupfer said. Lintonsmith said company-owned salons will serve as a “test and learn” platform for operating practices, loyalty tools and technology that could later be scaled across the system. Regis acquired roughly 300 salons from a large franchisee in December 2024, with the portfolio split roughly among Supercuts, Cost Cutters and Holiday Hair. She said company-owned salon sales growth in the quarter was primarily driven by pricing actions and execution, but traffic remains negative. SmartStyle, Regis’ second-largest brand by royalty stream, remains a key turnaround focus. Lintonsmith said the brand has underperformed relative to the broader portfolio, and the company is working with franchisees on initiatives to improve traffic, guest retention and salon-level economics in its retail environment. Regis is also evaluating technology upgrades, including enhancements to its point-of-sale ecosystem, web and mobile platforms, loyalty structure and AI-enabled tools for scheduling, salon-hour optimization and performance dashboards. Lintonsmith said AI initiatives will be piloted first in company-owned salons before any broader rollout. On the balance sheet, Zupfer said Regis had $31.9 million of available liquidity as of March 31, 2026, including revolving credit capacity and $22.9 million in unrestricted cash and cash equivalents. Outstanding debt was $127.1 million, excluding deferred financing costs, the value of warrants and accrued paid-in-kind interest. Management said reducing debt and improving financial flexibility remain priorities. Lintonsmith said the company is evaluating refinancing opportunities as it approaches the two-year anniversary of its credit agreement in late June, when it has the ability to refinance. During the question-and-answer session, Zupfer said the refinancing process is ongoing and that the company will provide updates when it has information to share. Regis (NASDAQ: RGS) is a company that owns, operates and franchises a portfolio of hair salon and beauty service brands. Its business centers on providing haircutting, styling, coloring and other salon services through both company-owned and franchised locations. The company's brand portfolio includes well-known names in the haircut and salon market that serve a range of customer segments from value-focused walk-in haircuts to full-service salon experiences. Regis generates revenue through salon operations, franchise fees and the sale of professional hair-care products and retail items. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Regis Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

Image source: The Motley Fool. Wednesday, May 13, 2026 at 8:30 a.m. ET Chief Executive Officer — Susan Lintonsmith Chief Financial Officer — Kersten Zupfer Need a quote from a Motley Fool analyst? Email [email protected] Susan Lintonsmith: Hi. Good morning, everyone, and thank you for joining us on today's earnings call. Let me start by recognizing our wonderful support team and our franchise partners. I also want to thank our thousands of dedicated stylists who take care of our guests every day. Since this is my first Regis earnings call as CEO, I'll take a few minutes to introduce myself. While new to the CEO role, I am not new to Regis, having been on the Board since January 2025, serving most recently as Board Chair. I have over 35 years of leadership experience with strong consumer brands, primarily in the health and beauty services and restaurant industries. I've led high growth and turnaround businesses. My expertise is in strategic planning, marketing and brand building, leading operations and running franchise systems. My career has mainly focused on multiunit retail franchise businesses, leading company-focused franchisor and then also most recently operating a beauty services franchise. My experience has reinforced a simple view, successful performance in a service business like ours is ultimately driven by strong differentiated brands, staying focused on priorities that can drive sustainable growth and delivering a great experience in every salon to every guest every day. My approach is franchisee-centric, and our strategic initiatives will be guided by a focus on supporting franchisee success and the guest experience. I am excited to lead Regis and work with an amazing group of people in a great industry. I see the potential of this business. We have a portfolio of category-leading brands and a compelling opportunity to define the future of hair care. I'm fortunate to have joined the company at a time when the business has a solid foundation to build upon and much progress has already been made. This is a great time to move the business from stability to growth, and we can achieve this by strengthening our brand differentiation, attracting new guests and improving share of visits, powered by a robust CRM and loyalty platform, digital innovation and operational excellence. We have 3 key priorities to help drive our growth plan. The first priority is to grow the Supercuts brand. At a high level, there are 3 pillars in the transformation plan to grow Supercuts. The first is evolving the brand strategy. The second is modernizing the digital experience. And the third is driving operational excellence. The second priority is our company-owned salons. We will invest more resources in our company-owned salons to make them the best-in-class model of growth and profitability. And the third priority is SmartStyle. This is an underperforming brand that continues to weigh on our overall growth, but one we are committed to improving. In addition to these 3 growth priorities, we are also taking actions to strengthen our financial foundation. We are actively pursuing refinancing opportunities to reduce our cost of capital and enhance our financial flexibility. This is a high-level overview of our priorities, and we'll go through in more detail later in the call, each one of these. Let's move now into fiscal third quarter highlights. Our third quarter results reflect another quarter of strong execution, demonstrated by same-store sales growth, increasing profitability and solid cash flow generation. The growth in same-store sales reflects benefits from favorable seasonal conditions and the impact of our initiatives. For Q3, we had solid same-store sales growth. Consolidated same-store sales growth increased 2.6%. Supercuts delivered same-store sales growth of 5% and company-owned salons had same-store sales growth of 9.6%. Pricing actions, specifically in our company-owned salons supported these sales increases. Our focus across all our salons is on driving traffic, and I'll speak later in the call about our plans to achieve this. As Kersten will cover, we continue to expand profitability and generate meaningful cash flow through disciplined cost management and operational improvements, reinforcing the underlying earnings power of this business and durability of our cash flow. Adjusted EBITDA in the third quarter was $7.7 million, an increase of $600,000, driven year-over-year by continued G&A discipline and contributions from our company salon portfolio. Year-to-date adjusted EBITDA of $23.6 million is up $1.7 million versus the prior year. We generated $5.3 million of unrestricted cash from operations in Q3, bringing the total to $9.3 million year-to-date. Our balance sheet remains solid, and we continue to operate comfortably within our credit agreement covenants. And with that summary, I'll hand it back to Kersten to discuss the financial results in more detail. Kersten Zupfer: Thanks, Susan. As Susan begins her tenure as CEO, it is worth taking a moment to reflect on the financial foundation that has been built over the past several years. Through disciplined cost management, we have made meaningful progress reducing G&A, improving profitability and returning the business to positive cash flow generation. As a result, Regis is operating from a stronger and more flexible financial position as we move into the next phase of growth Susan outlined. For the third quarter, we delivered a 14% increase in GAAP operating income, generated $7.7 million in consolidated adjusted EBITDA and produced positive cash from operations for the sixth consecutive quarter. This improvement in profitability and cash flow occurred alongside a decline in total revenue. Total third quarter revenue was $52.4 million, a decrease of 8.1% or $4.6 million compared to the prior year. This decline was primarily driven by lower noncash franchise fee recognition in the quarter. Franchise closures have moderated meaningfully in fiscal year 2026 as we continue to strengthen the overall quality of the system. During the first 9 months of fiscal year 2026, our franchise location count declined by 150 locations, net of openings or approximately 50 locations per quarter, and we expect fourth quarter net decline to be generally consistent with that recent run rate. On an annualized basis, that represents a significant improvement compared to net franchise location declines of 414 in fiscal 2024 and 430 in fiscal year 2025. Many of the prior year closures involved underperforming locations that reached the end of their lease life and their exit has contributed to a stronger, more productive remaining salon base. As of March 31, 2026, our franchise location count was down 279 salons compared to March 31, 2025. The locations that closed were primarily underperforming stores with significantly lower trailing 12-month sales than our top-performing units. The average unit volume of the closed locations was approximately $130,000, roughly $350,000 below the average unit volume of stores in our highest performing quartile. As lower performing locations exit the system, our remaining salon base becomes stronger, more productive and better positioned to support our improved profitability and cash flow over time. We reported GAAP operating income of $5.7 million, a $700,000 increase compared to $5 million in the year ago quarter. This increase was primarily driven by reductions in G&A expenses and benefits from portfolio optimization initiatives in our company-owned salon segment, which contributed to an improved operating margin. Income from continuing operations was $735,000 compared to $250,000 in the year ago quarter. The year-over-year improvement was primarily driven by reductions in G&A expenses and an increase in company-owned salon contribution, which was partially offset by lower contribution from higher-margin royalty revenues. The increase in both operating income and income from continuing operations reflects positive same-store sales performance in our franchise and company-owned salons as well as disciplined cost management. Turning to our adjusted results. As a reminder, our adjusted results exclude stock-based compensation expense. We believe this provides a clearer view of our underlying business performance. A reconciliation of our GAAP to non-GAAP results is included in our press release. For the third quarter, our consolidated adjusted EBITDA was $7.7 million, an increase of 8.5% compared to $7.1 million in the prior year quarter. The improvement was primarily driven by lower G&A expenses and contributions from company-owned salons, which were partially offset by lower franchise royalties and noncash fee recognition. Our adjusted G&A was $9.5 million in the third quarter of fiscal year 2026, down from $10.2 million in the year ago quarter, reflecting continued cost management discipline. Adjusted EBITDA for our franchise segment was $6.2 million in the quarter, a $100,000 decrease compared to $6.3 million in the prior year quarter. This decrease was primarily due to lower royalties and noncash franchise fees in the current period, which were partially offset by lower G&A expenses. Franchise EBITDA as a percentage of franchise revenue was 18.7%, up from 16.5% in the year ago quarter. Adjusted EBITDA for our company-owned salon segment improved by $600,000 year-over-year to $1.4 million for the quarter, primarily as a result of increased pricing and portfolio optimization initiatives. Turning to cash flows. For the 9 months ending March 31, 2026, we generated $8.9 million in cash from operations, which is an improvement of $1.9 million compared to $7 million in the prior year period. Of the $8.9 million, $5.3 million was generated in the third quarter. This represents our sixth consecutive quarter of positive cash from operations. This increase in cash generation was driven by higher operating income as a percentage of revenue. As a reminder, when we're evaluating our reported cash flows, we believe it is important to understand that cash flows are derived from 2 sources: unrestricted cash from operations, which is available for general corporate use and restricted cash related to our ad fund, which is sourced from contributions made by our salons, both franchise and company-owned. Ad fund cash is designated specifically for marketing purposes and is not available for corporate use. For the first 9 months of fiscal year 2026, our total reported cash from operations of $8.9 million includes $400,000 of cash used for the ad funds, which is restricted and $9.3 million in cash generated from our core operations, which is unrestricted. The business continues to generate positive cash from operations, providing a strong foundation for growth and financial flexibility. In addition, because of our significant net operating loss carryforwards, we do not expect to pay meaningful cash taxes in the near term, allowing more of our earnings improvement to translate into cash. For fiscal year 2026, we continue to anticipate a meaningful increase in unrestricted cash generated from our core operations compared to fiscal year 2025. This expected improvement is supported by continued operational strength, a full year of acquired company-owned salon results and the absence of onetime expenses we experienced last fiscal year. We also expect working capital improvements to provide additional support to cash generation. While we expect full year unrestricted cash generation to increase meaningfully year-over-year, quarterly cash generation may vary based on the timing of working capital movements and scheduled payments. Ad fund cash, which is designated specifically for marketing purposes and not available for corporate use, totals approximately $20 million annually. Since fiscal year 2025, we deliberately accumulated a surplus by moderating spend in order to focus on our business transformation strategy. In the first quarter of fiscal year 2027, we will have new marketing creative ready, and we'll deploy the accumulated ad fund dollars to increase our marketing efforts to help drive awareness and traffic. Turning to our balance sheet. Our balance sheet continues to improve through significant quarterly free cash generation. As of March 31, 2026, we had $31.9 million of available liquidity, including capacity under our revolving credit agreement and $22.9 million in unrestricted cash and cash equivalents. This provides flexibility to support ongoing operations while continuing to invest in the initiatives we are executing to drive higher salon traffic and long-term value creation. As of the end of the third fiscal quarter, we had outstanding debt of $127.1 million, excluding deferred financing costs and the value of warrants plus accrued paid-in-kind interest. As a reminder, in accordance with GAAP, our balance sheet includes approximately $175 million of operating lease liabilities related to our franchise salon leases. These leases have a weighted average remaining term of less than 5 years and the associated obligations are serviced directly by our franchisees. Provided that the franchisees continue to meet their lease payments as they historically have, we believe these amounts should not be considered part of our debt position when evaluating our financial leverage. We expect these liabilities will continue to decrease over time as the leases mature and as we further reduce our use of franchise leases. From a capital allocation perspective, reducing debt and improving financial flexibility remain key priorities. We are continuing to build cash and strengthen our financial profile, which we believe better positions the company to evaluate refinancing opportunities aimed at reducing our cost of capital over time. With that, I'll turn it back to Susan to discuss our business priorities. Susan Lintonsmith: Thank you. Over the past several years, we have completed a structural transformation of our business model, transitioning to a more asset-light franchise-focused system with a portfolio of category-leading brands. A lot of work has been done to stabilize the business since the impact of COVID. Today, we are focused on the next phase, moving from stability to sustainable growth. At a high level, our strategy is centered on leaning into our core growth drivers with a clear priority on driving traffic and continuing to take disciplined actions to strengthen performance across the broader system. We're being intentional with how we prioritize investments and allocate resources, scaling what is working across our brand portfolio. As I mentioned earlier, we have 3 priorities to drive growth, which I'm going to go into more detail on now. The first is Supercuts. Supercuts remains our flagship brand at nearly 50% of salons and over 60% of our royalties. This brand is a central driver of performance across the system. While same-store sales are up 3.2% year-to-date, and we're encouraged by our Q3 performance, it's important to recognize that our results may continue to fluctuate as we move through the transformation. As a reminder, our adjusted EBITDA is not highly sensitive to modest changes in same-store sales and sustained performance improvement requires durable traffic gains over time. We still have meaningful work ahead before delivering consistent sustained growth. We are continuing to advance our Supercuts North Star transformation strategy, which is designed to reposition the brand for sustainable long-term growth. This plan is a 3-pronged approach, including evolving the brand strategy, modernizing the digital experience and driving operational excellence. On evolving the brand strategy pillar, the positioning work has been completed, including a new tagline of confidence without compromise and some of the new creative can be seen in our digital and social efforts. The insights from the research and positioning work will be threaded through all aspects of our go-to-market strategy, including our stylist recruitment program and our future salon remodel plan. We've made progress on the second pillar, which is modernizing the digital experience. We are strengthening our loyalty program, which was launched in Supercuts in September 2024 to drive more consumer and franchise engagement and to build a robust CRM platform. From my experience, I know the power of the loyalty program, and I believe we can enhance this program to drive meaningful growth across our system. The work continues to evolve Supercuts from a largely transactional relationship with guests towards a more personalized, loyalty-driven and digitally enabled experience. From a technology perspective, we're evaluating enhancements to our existing technology stack to support a more modern operating environment. This includes ongoing work related to our POS ecosystem, web and mobile platform modernization and the continued evolution of our loyalty structure. These capabilities are increasingly important to improving guest engagement, operational visibility, franchisee support and long-term scalability across the system. We're also evaluating AI-enabled tools to improve operational efficiency and decision-making across the system. This includes AI-driven scheduling and salon hour optimization, more effective stylist shift planning and the rollout of a KPI dashboard that provides real-time visibility into performance at the salon level. These tools are designed to simplify decision-making, reduce friction in daily operations and help salon teams better align staffing to guest demand. We will pilot AI initiatives first in our company salons as proof of concept prior to scaling to the broader system. Last, we are advancing our third pillar, which is driving operational excellence. This includes several initiatives designed to achieve brand consistency and an exceptional guest experience across all locations. Our stylists are the face of the brand to the guest. At the salon level, they are accountable for delivering on the brand promise. So we're investing more in our training program to ensure that every stylist receives the training and development needed to deliver on our differentiation. Part of this investment in training includes improving our support for franchisees, providing KPI insights and coaching to help them strengthen their 4-wall profitability. We believe long-term brand health is directly connected to both quality of the in-salon experience and the strength of the support systems surrounding our franchisees and stylists. That said, Jim Lain and team will build a blueprint to modernize our education platform across both technical stylist training and franchise business development. Our objective is to create a scalable education ecosystem that strengthens technical excellence inside the salon while also improving operational capability and business acumen across our franchise system. The intent of these 3 pillars is to strengthen and grow our business while curbing store closures. The goal is to provide more support to franchisees to help improve salon performance while strengthening the franchise system through consolidation efforts, matching those who want to exit the system with those who want to grow by taking on additional salons. While these initiatives I just covered first focus on Supercuts, the intention is to implement best practices quickly across the remaining portfolio of brands. Okay. Let's move into the second priority, company salons. As a reminder, we acquired roughly 300 salons from a large franchisee late December 2024. Roughly 1/3 of these salons are Supercuts, 1/3 are cup cutters and 1/3 are holiday hair. Company-owned salons play a strategic role within the organization, serving as a test-and-learn platform that supports innovation, operational improvements and best practices that can be shared across our network. Given the importance of company salons, the leader, James Larez, is now 100% dedicated to this business as EVP of Company Operations, and the trading department is now under Jim Lain's leadership. Company salons had strong same-store sales growth of 9.6% in Q3, driven primarily by pricing actions and solid execution. As discussed on prior calls, after acquiring the salons, we implemented many changes to help improve the business, including a new stylist pay plan to address the previously high turnover. While the pay plan changes improved stylist retention, the impact of the new pay plan, combined with minimum wage increases led to a more rapid rise in labor costs than expected. In response, we implemented pricing increases and recently updated the pay plan to offset these margin pressures. These pricing actions moved the company's salons from below the brand average to slightly above the brand average. It's important to remember that traffic trends were already negative prior to the acquisition. While trends improved during our first year of ownership, traffic remained negative. We'll continue to closely analyze performance to better understand the impact of our pricing actions, consumer response and broader market dynamics while evaluating additional initiatives to support guest retention and sustainable traffic improvement. Going forward, improving traffic and expanding margins, particularly through enhanced labor efficiency will remain key areas of focus. Our goal is to make company salons best-in-class and a pilot to refine operating practices and leverage loyalty and technology tools with the plan to scale successes across the broader system. Let's turn to our third priority, SmartStyle. As our second largest brand and royalty stream, SmartStyle has underperformed relative to the broader portfolio, making its turnaround a key focus for the organization. The team is working closely with franchisees to evaluate initiatives aimed at improving traffic trends, guest retention and salon level economics while strengthening the customer proposition within its unique retail environment through a renewed focus on fast, convenient and affordable services. We believe the plan we are developing is aligned with Walmart's value-driven ethos and position SmartStyle for improved performance. We look forward to providing additional details on plans on future earnings calls. In addition to focusing on these 3 priorities, we continue to evaluate opportunities to enhance our financial flexibility, including optimizing our capital structure and reducing interest expense through a potential refinancing of our existing debt. As we approach the 2-year anniversary of our credit agreement in late June, we have the ability to refinance, which could lower our overall cost of capital. We recently added a new Board member, Bill Charters, who is also a significant shareholder and brings deep expertise in credit markets, which will be helpful as we evaluate refinancing opportunities. We're making great progress, and we'll provide an update soon. In summary, Reach's third quarter results reflect continued improvements in financial performance, driven by disciplined cost management and investment in areas of the business that support long-term growth. We're investing resources in a disciplined way to support our priorities. Supercuts remains a key focus with our transformational North Star plan, which is designed to differentiate the brand and achieve sustainable growth. We've made progress against the 3 pillars of this plan and we'll continue to strengthen the brand's differentiation going forward. We're dedicating more resources to company salons to improve traffic and margins and position it as the best-in-class operational model for the broader system. The second largest brand, SmartStyle, has been declining. We're focusing on addressing the issues and implementing initiatives to improve performance. We're putting more focus on the training program and modernizing our education platform to create a more scalable system. This initiative includes both stylist training and improved franchise business support. Reducing salon closures is a priority and the growth initiatives I've outlined, combined with the franchise support and consolidation efforts are designed to help mitigate closures. Last, we're evaluating and advancing our technology platform to enable many of the initiatives we've outlined and to support a more modern operating environment, including improved business insights and guest engagement. While significant work remains, we're focused on the right priorities. Collectively, these initiatives are designed to strengthen execution at every level of the organization, improve consistency across the system and create a more modern, data-driven operating model that supports long-term growth across the Regis portfolio. In closing, I'm excited to be leading this business. Regis has great brands and amazing people, and I'm energized about our plans to move the company into its next phase of growth. This concludes our prepared remarks. Thank you for your continued support of Regis Corporation. We will now open the call to questions.[Operator Instructions] Kersten Zupfer: Good morning Nathan, Please unmute your mic and ask question. Unknown Analyst: Susan, congrats on the new position. I just have a question regarding the unit level economics. Could you provide any information regarding level -- 4-wall breakeven or shutdown dynamics? How this has informed your pricing strategy and discuss how maybe that relates to average ticket pricing, for example? Susan Lintonsmith: Yes. First off, thank you very much. I appreciate that. I won't speak to the breakeven on this call. We can -- but I do want to say that we are focused on core KPIs to just improve overall level profitability. It does vary by location, definitely based on a lot of what's rent, what they're paying in labor, everything else. So there's no standardized response to that. But our goal is to provide more franchisee support and more support and visibility into our own company salons just to make sure that we are doing the right things not only to drive the top line through traffic, but also to improve margins for us and for our franchise partners. Unknown Analyst: Just a quick follow-up. Can you discuss a little bit about -- I know you guys mentioned quartiles. Can you kind of compare the Align system compared to the broad system and talk about -- because I know you guys -- from a mix perspective, Align does not have any SmartStyles in it. So I was wondering if you could add some sort of color to that situation. Susan Lintonsmith: Yes. If you just compare -- like I mentioned, the company salon business has the 3 different brands. And if you just -- and with Holiday hair, it's just companies. So if you look at the super cuts and the cost cutters and you look at the quartiles for our company-owned salons compared to the quartiles for our franchisees with those same brands, it's pretty comparable. Unknown Analyst: Right. But I'm just kind of trying to get at because -- I mean, 9.6% versus the system, is that -- would you say would you mainly the operational changes or sort of the broad mix? Susan Lintonsmith: Yes, the 9.6% for the company operations, that was primarily driven by the pricing actions that I mentioned. We did have a couple of pricing actions in calendar year 2025 that took us from really below the brand average. So we were priced below to above the brand average. So that in itself and a couple of operational improvements did drive that growth in Q3. Unknown Analyst: Got you. And can you add any detail to ticket pricing and sort of what -- how much room you guys think you guys have and stuff like that? Susan Lintonsmith: How much room we have? Yes. All I can say is it's -- the ticket average is really it depends how many services we have and everything else. So I don't know exactly what our pricing elasticity is or how high that ticket can go. That's something that definitely we'll be looking at. But I do believe that we do have a little bit more pricing power. We're still below -- we're still within the range, but we're going to be watching that because we're also looking at everything that's going on around us, competitive pricing, competitive value offers, et cetera. So all of that stuff impacts what we're able to price at and really what our power is. Unknown Analyst: Got you. Sorry, one final question. Do you have any sort of operational learnings from your background because I know you ran European wax centers in Colorado. Do you have any sort of direct learnings from that, that you think are transferable or... Susan Lintonsmith: Yes. sorry. A lot of my experience with running franchise locations are very directly applicable to this, working with licensed professionals and the importance of training and the importance of everything that happens within the 4 walls, that experience, that is one of my big things coming into this opportunity is really focusing on the front line, focusing on the stylists and that experience and making sure that the stylist has the training and the development needed to really provide that on that brand promise. Unknown Analyst: Got you. Yes. I know you guys probably can't discuss it, but do you have any sort of color you can add to the refinancing situation? Or is that an ongoing thing? Kersten Zupfer: It's ongoing, and we're making good progress. And once we have information that we can share with everybody, we certainly will do so. Susan Lintonsmith: At this time, we do not have any further questions. Please feel free to reach out to me at [email protected] if you have any questions that we can address offline. And thank you again for your support of Regis Corporation. Have a great day. Before you buy stock in Regis, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Regis wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,744!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,353,500!* Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 207% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Regis (RGS) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Strong Execution Drives Improved Profitability Q3 Consolidated Same-Store Sales Up 2.6%, Supercuts Up 5.0%, Company-Owned Salons Up 9.6% Cash Flow Strengthens Through Disciplined Cost Management and Operational Improvements MINNEAPOLIS, May 13, 2026--(BUSINESS WIRE)--Regis Corporation (NasdaqGM: RGS), a leader in the haircare industry, today announced financial results for the third fiscal quarter ended March 31, 2026. Susan Lintonsmith, Regis Corporation's President and Chief Executive Officer, commented, "Our third quarter results reflect another quarter of solid execution, demonstrated by increasing profitability and solid cash flow generation. We are encouraged by the momentum we are building, particularly at Supercuts and our company-owned salons, which delivered same-store sales growth of 5.0% and 9.6%, respectively. This performance was supported by ticket strength and favorable seasonal conditions." Lintonsmith continued, "Sustained value creation will ultimately be driven by higher salon traffic across the system. As we execute our strategy, we are focused on a set of initiatives designed to drive that outcome, including consistent execution of brand standards, optimization of our operating model and planned deployment of technology to deliver a consistent and more elevated guest experience. We are advancing these efforts through investments in the company-owned salon business, training, targeted marketing programs, and loyalty programs. By directing resources to the areas with the greatest potential impact on performance, we are positioning the business to unlock the next phase of value creation across our portfolio." "Disciplined capital management remains a core priority as we focus on reducing our debt service and delivering long-term shareholder value," said Kersten Zupfer, Executive Vice President and Chief Financial Officer. "We continue to work with experienced advisors and potential partners to evaluate refinancing alternatives for our existing credit agreement." Financial Highlights: Third quarter fiscal 2026 compared to third quarter fiscal 2025: Consolidated revenue of $52.4 million versus $57.0 million, a decrease of $4.6 million; driven primarily by lower royalties, fees, and non-margin franchise rental income Same-store sales: Supercuts: 5.0%; Company-owned: 9.6%; Consolidated: 2.6% Operating income of $5.7 million versus $5.0 million Sixth consecutive quarter of positive cash from operations Net income of $0.7 million versus $0.3 million Diluted EPS of $0.26 versus $0.08 Adjusted net income of $1.6 million versus $1.3 million Adjusted diluted EPS of $0.57 versus $0.43 Adjusted EBITDA of $7.7 million versus $7.1 million Year-to-date fiscal 2026 compared to year-to-date fiscal 2025: Consolidated revenue of $168.5 million versus $149.7 million, an increase of $18.8 million; driven by increased company-owned salon revenue as a result of the Alline acquisition, partially offset by lower royalties, fees, and non-margin franchise rental income Same-store sales: Supercuts: 3.2%; Consolidated: 1.1% Operating income of $17.8 million versus $12.7 million Cash from operations of $8.9 million versus $7.0 million, an increase of $1.9 million $9.3 million of cash from operations excluding the effect of restricted cash ad fund Net income of $2.5 million versus $7.0 million, inclusive of $8.4 million of income from discontinued operations in the prior year period Diluted EPS of $0.89 versus $3.00, inclusive of $3.57 of income from discontinued operations Adjusted net income of $4.7 million versus $5.6 million Adjusted diluted EPS of $1.65 versus $1.97 Adjusted EBITDA of $23.6 million versus $21.9 million in prior year Revenue Total consolidated revenue of $52.4 million in the third quarter of 2026 declined $4.6 million, driven primarily by lower royalties, fees, and non-margin franchise rental income. Consolidated revenue of $168.5 million in the year-to-date 2026 period improved $18.8 million, driven primarily by an increase in company-owned salon revenue resulting from the Alline acquisition on December 19, 2024, partially offset by lower royalties, fees, and non-margin franchise rental income. Operating Income Regis reported third quarter 2026 operating income of $5.7 million, an improvement of $0.7 million compared to $5.0 million in the third quarter of 2025. Regis reported year-to-date 2026 operating income of $17.8 million, an improvement of $5.1 million compared to $12.7 million in the year-to-date 2025 period. The year-over-year improvement in operating income was primarily driven by operating income from the Alline salons and reductions in general and administrative expenses, partially offset by lower royalties and fees. Income (Loss) from Continuing Operations Regis reported third quarter 2026 net income from continuing operations of $0.7 million, or $0.26 per diluted share, compared to net income from continuing operations of $0.3 million, or $0.08 per diluted share, in the third quarter of 2025. The Company reported year-to-date 2026 net income from continuing operations of $2.5 million, or $0.89 per diluted share, compared to a net loss from continuing operations of $1.4 million, or $0.58 per share, in the prior year period. The year-over-year increase was driven primarily by an increase in company-owned salon revenue and reductions in general and administrative expenses, partially offset by lower royalties and fees. Net Income The Company reported third quarter 2026 net income of $0.7 million, or $0.26 per diluted share, compared to net income of $0.3 million, or $0.08 per diluted share, for the same period last year. The Company reported year-to-date 2026 net income of $2.5 million, or $0.89 per diluted share, compared to net income of $7.0 million, or $3.00 per diluted share, in 2025. The higher income in the prior year-to-date period was driven primarily by income from discontinued operations, which did not recur in the current year-to-date period. Adjusted EBITDA Third quarter and year-to-date 2026 adjusted EBITDA of $7.7 million and $23.6 million, respectively, improved $0.6 million and $1.7 million, compared to adjusted EBITDA of $7.1 million and $21.9 million in the same periods last year. The improvement in both periods is primarily related to higher company-owned salon revenue and reductions in general and administrative expenses, offset partially by lower franchise royalties and non-cash fee recognition. Third Quarter Fiscal Year 2026 Segment Results Franchise Revenue Third quarter franchise revenue was $33.3 million, a $4.7 million, or 12.4%, decrease compared to the prior year quarter. Year-to-date 2026 franchise revenue was $110.0 million, a $16.5 million, or 13.0%, decrease compared to the prior year period. Non-margin franchise rental income was the primary driver of the decline due to franchisees signing their own leases and fewer franchise salons in the current year partially as a result of the Alline acquisition. Royalties were $13.2 million and $40.9 million, a $0.3 million and $3.1 million, or 2.2% and 7.0%, decrease for the third quarter and year-to-date 2026 periods, respectively, versus the same periods last year, due primarily to fewer franchise salons. Franchise Adjusted EBITDA Third quarter franchise adjusted EBITDA of $6.2 million declined $0.1 million. Year-to-date 2026 franchise adjusted EBITDA of $18.9 million declined $1.8 million year-over-year. The declines primarily related to lower royalties and non-cash fees in the current year period, offset partially by decreased general and administrative expenses. Company-Owned Salon Revenue Third quarter revenue for the company-owned salon segment was $19.1 million, a $0.1 million increase compared to the prior year quarter, primarily driven by same-store-sales growth, partially offset by the closure of underperforming salons. Year-to-date 2026 revenue for the company-owned salon segment increased $35.3 million versus the prior year to $58.5 million. The year-over-year increase in revenue was primarily due to the impact of the Alline acquisition on December 19, 2024. Company-Owned Salon Adjusted EBITDA Third quarter and year-to-date 2026 company-owned salon adjusted EBITDA improved $0.6 million and $3.6 million, respectively, compared to the prior year periods. The year-to-date improvement is due primarily to increased contribution generated by the greater salon count as a result of the Alline acquisition. Balance Sheet and Cash Flow The Company ended the third quarter of fiscal year 2026 with $22.9 million in cash and cash equivalents, $127.1 million in outstanding borrowings ($116.4 million term loan, $9.7 million paid in kind interest, and $1.0 million revolver draw) and available total liquidity of $31.9 million. Net cash provided by operating activities for the nine months ended March 31, 2026, totaled $8.9 million, an improvement of $1.9 million from the nine months ended March 31, 2025, primarily due to higher operating income in the current year period offset partially by cash accumulated in the ad fund in the prior year. Non-GAAP Reconciliations For GAAP to non-GAAP reconciliations, please refer to the attached section titled "Non-GAAP Reconciliations." A complete reconciliation of reported earnings to adjusted earnings is included in this press release. Earnings Webcast Regis Corporation will host a conference call via webcast discussing third quarter results today, May 13, 2026, at 7:30 a.m. Central time. Interested parties are invited to participate in the live webcast by registering for the event at www.regiscorp.com/investor-relations.html. A replay of the presentation will be available on our website at the same web address. About Regis Corporation Regis Corporation (NasdaqGM:RGS) is a leader in the haircare industry. As of March 31, 2026, the Company franchised or owned 3,770 locations. Regis’ franchised and corporate locations operate under concepts such as Supercuts®, SmartStyle®, Cost Cutters®, Roosters®, and First Choice Haircutters®. For additional information about the Company, please visit the Investor Relations section of the corporate website at www.regiscorp.com. This press release contains or may contain "forward-looking statements" within the meaning of the federal securities laws, including statements concerning anticipated future events and expectations that are not historical facts. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this document reflect management's best judgment at the time they are made, but all such statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed in or implied by the statements herein. Such forward-looking statements are often identified herein by use of words including, but not limited to, "may," "will," "believe," "project," "forecast," "expect," "estimate," "anticipate," and "plan." These uncertainties include a potential material adverse impact on our business and results of operations as a result of changes in consumer shopping trends and changes in manufacturer distribution channels; laws and regulations could require us to modify current business practices and incur increased costs including increases in minimum wages; changes in the general economic environment; changes in consumer tastes, hair product innovation, fashion trends and consumer spending patterns; our ability to realize the anticipated benefits of the Alline acquisition; reliance on franchise royalties and overall success of our franchisees’ salons; our salons' dependence on a third-party supplier agreement for merchandise; our and our franchisees' ability to attract, train and retain talented stylists and salon leaders; the success of our franchisees, which operate independently; data security and privacy compliance and our ability to manage cyber threats and protect the security of potentially sensitive information about our guests, franchisees, employees, vendors or Company information; the ability of the Company to maintain a satisfactory relationship with Walmart; marketing efforts to drive traffic to our franchisees' and company-owned salons; our ability to maintain and enhance the value of our brands; reliance on legacy information technology systems; reliance on external vendors; the use of social media; the effectiveness of our enterprise risk management program; potential challenges with the planning or implementation of our new enterprise resource planning system; our ability to minimize risks associated with owning and operating additional salons; ability to generate sufficient cash flow to satisfy our debt service obligations; compliance with covenants in our financing arrangement; premature termination of agreements with our franchisees; the continued ability of the Company to implement cost reduction initiatives and achieve expected cost savings; continued ability to compete in our business markets; potential liabilities related to the employee retention credit received by Alline; reliance on our management team and other key personnel; the ability to attract and retain key personnel; the continued ability to maintain an effective system of internal control over financial reporting; changes in tax exposure; the ability of our Tax Preservation Plan to protect the future availability of the Company's tax assets; potential litigation and other legal or re...gulatory proceedings; or other factors not listed above. Additional information concerning potential factors that could affect future financial results is set forth under Item 1A on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further disclosures made in our subsequent annual and periodic reports filed or furnished with the SEC on Forms 10-K, 10-Q, and 8-K and Proxy Statements on Schedule 14A. Non-GAAP Reconciliations: This press release includes a presentation of operating income excluding certain non-cash charges, adjusted EBITDA, and adjusted franchise revenue, which are non-GAAP measures. The non-GAAP measures are financial measures that do not reflect United States Generally Accepted Accounting Principles (GAAP). We believe our presentation of the non-GAAP measures provides meaningful insight into our ongoing operating performance and a supplemental perspective of our results of operations. Presentation of the non-GAAP measures allows investors to review our core ongoing operating performance from the same perspective as management and the Board of Directors. These non-GAAP financial measures provide investors an enhanced understanding of our operations, facilitate investors’ analyses and comparisons of our current and past results of operations and provide insight into the prospects of our future performance. We also believe the non-GAAP measures are useful to investors because they provide supplemental information that research analysts frequently use to analyze financial performance. Items impacting comparability are not defined terms within U.S. GAAP. Therefore, our non-GAAP financial information may not be comparable to similarly titled measures reported by other companies. We determine the items to consider as "items impacting comparability" based on how management views our business, makes financial, operating and planning decisions, and evaluates the Company's ongoing performance. The reconciliation of U.S. GAAP operating income to non-GAAP operating income excluding certain non-cash charges is included in the release. The following items have been excluded from our non-GAAP adjusted EBITDA results: stock-based compensation expense, discontinued operations, one-time professional fees and settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired right of use asset, lease termination fees, and asset retirement obligation costs. We present adjusted revenue to provide a meaningful franchise adjusted EBITDA margin, which removes non-margin revenue from total revenue to arrive at an adjusted margin. Margin is a common metric used by investors, however, the majority of our revenue is offset by equal expense, so it does not contribute to our margin. We remove the non-margin revenue from this metric in order to show a meaningful margin rate. The method we use to produce non-GAAP results is not in accordance with U.S. GAAP and may differ from methods used by other companies. These non-GAAP results should not be regarded as a substitute for corresponding U.S. GAAP measures but instead should be utilized as a supplemental measure of operating performance in evaluating our business. Non-GAAP measures do have limitations as they do not reflect certain items that may have a material impact upon our reported financial results. As such, these non-GAAP measures should be viewed in conjunction with our financial statements prepared in accordance with U.S. GAAP. View source version on businesswire.com: https://www.businesswire.com/news/home/20260513113503/en/ Contacts REGIS CORPORATION: Kersten Zupfer [email protected] HAYDEN IR: James Carbonara [email protected] (646) 755-7412 Brett Maas [email protected] (646) 536-7331