Regis Corporation Reports Financial Results for Fourth Fiscal Quarter and Full Fiscal Year 2026

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--(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.

REGIS CORPORATION:
Kersten Zupfer
investorrelations@regiscorp.com

HAYDEN IR:
James Carbonara
James@haydenir.com
(646) 755-7412

Brett Maas
brett@haydenir.com
(646) 536-7331