Regis Corporation Reports Financial Results for Fourth Fiscal Quarter and Full Fiscal Year 2025

Q4 Same-Store Sales for Supercuts and Regis Consolidated Up 2.9% and 1.3%, respectively

Delivered Third Consecutive Quarter of Positive Cash from Operations

Release of $116.3 million Valuation Allowance on Deferred Tax Assets Underscores Confidence in Long-Term Outlook and Ability to Utilize NOLs

Continues to Advance Transformational Strategy to Drive Long-term Profitable Growth

Regis Corporation (Nasdaq GM: RGS), a leader in the haircare industry, today announced financial results for the fourth fiscal quarter and full year ended June 30, 2025.

Jim Lain, Regis Corporation's Interim President and Chief Executive Officer, commented, "We closed fiscal year 2025 with $210.1 million in revenue, $19.9 million in operating income and $31.6 million in Adjusted EBITDA. These results reflect disciplined cost management and encouraging early traction from key transformation initiatives. Importantly, our business is consistently delivering profitability and positive cash from operations, key metrics that reinforce the stability of our platform and promising potential for continued improvement as we execute our strategy.

"A notable action in the fourth quarter was the release of a significant portion of the valuation allowance on our deferred tax assets following a rigorous assessment of our future profitability. This action reflects a high degree of confidence in our improved financial performance and our expectation of generating sufficient taxable income to realize the value of our NOL carryforwards over time.

"We begin fiscal 2026 as a focused, energized organization committed to delivering sustainable, profitable growth across our portfolio. We are executing our long-term strategy with the support of Forum3, our strategic partner, whose deep expertise in digital transformation and brand strategy is helping accelerate key initiatives. With a solid foundation in place and clear strategic priorities, we are well-positioned to build on our momentum and create long-term value for all stakeholders."

Financial Highlights:

Fourth quarter fiscal 2025 compared to fourth quarter fiscal 2024:

• Consolidated revenue of $60.4 million versus $49.4 million, an increase of $11.0 million; driven primarily by increased company-owned salon revenue, offset by lower royalties and non-margin franchise rental income
• Same-store sales: Supercuts: 2.9%; Consolidated: 1.3%
• Operating income of $7.3 million versus $4.6 million;
• Cash from operations of $6.8 million versus $5.1 million, increase of $1.7 million
• Third consecutive quarter of positive cash from operations
  • $4.3 million of cash from operations excluding the effect of restricted cash ad fund build
• Adjusted EBITDA of $9.7 million versus $7.8 million
• Net income of $116.5 million versus $91.2 million
  • Diluted EPS of $42.58 versus $38.10
• Adjusted net income of $2.0 million versus $(2.0) million
  • Adjusted diluted EPS of $0.74 versus $(0.84)

Full fiscal year 2025 compared to full fiscal year 2024:

• Consolidated revenue of $210.1 million versus $203.0 million
• Same-store sales: Supercuts: 1.3%; Consolidated: (0.6)%
• Operating income of $19.9 million versus $20.9 million
• Cash from operations of $13.7 million versus $(2.0) million, increase of $15.7 million
  • $5.3 million of cash from operations excluding the effect of restricted cash ad fund build
• Adjusted EBITDA of $31.6 million versus $27.5 million
• Net income of $123.5 million versus $91.1 million
  • Diluted EPS of $46.10 versus $38.34
• Adjusted net income of $7.6 million versus $(2.2) million
  • Adjusted diluted EPS of $2.85 versus $(0.92)

Fourth Quarter Fiscal Year 2025 Consolidated Results

Revenue

Total consolidated revenue of $60.4 million in the fourth quarter and total revenue for fiscal year 2025 of $210.1 million, improved $11.0 million, and $7.1 million, respectively. The improvements were driven primarily by an increase in company-owned salon revenue resulting from the acquisition of Alline on December 19, 2024.

Operating Income

Regis reported fourth quarter 2025 income from operations of $7.3 million compared to $4.6 million in the fourth quarter 2024, primarily driven by operating income from the Alline salons, partially offset by lower royalties. Regis reported fiscal year 2025 income from operations of $19.9 million compared to $20.9 million in fiscal year 2024.

Income from Continuing Operations

Regis reported fourth quarter 2025 net income from continuing operations of $118.4 million, or $43.27 per diluted share, compared to net income from continuing operations of $91.3 million, or $38.14 per diluted share, in the fourth quarter 2024. Regis reported fiscal year 2025 net income from continuing operations of $117.0 million, or $43.67 per diluted share, compared to net income from continuing operations of $89.1 million, or $37.50 per diluted share, in 2024. The year-over-year increase in net income from continuing operations in both periods was driven by the $115.5 million income tax benefit resulting from the partial release of the Company's prior year income tax valuation allowance. In the fourth quarter of 2024, net income from continuing operations includes a gain on extinguishment of long-term debt of $94.6 million.

Net Income

The Company reported fourth quarter 2025 net income of $116.5 million, or $42.58 per diluted share, compared to a net income of $91.2 million, or $38.10 per diluted share, for the same period last year. The Company reported fiscal year 2025 net income of $123.5 million, or $46.10 per diluted share, compared to net income of $91.1 million, or $38.34 per diluted share, in 2024. The year-over-year increase 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 the fourth fiscal quarter of 2025, offset partially by the $94.6 million gain on extinguishment of long-term debt in the 2024 periods.

Adjusted EBITDA

Fourth quarter adjusted EBITDA of $9.7 million improved $1.9 million versus adjusted EBITDA of $7.8 million in the same period last year. The improvements were driven primarily by higher company-owned salon revenue as a result of the Alline Acquisition, partially offset by lower franchise revenue and company-owned salon expense.

Fiscal year 2025 adjusted EBITDA of $31.6 million improved $4.1 million, versus an adjusted EBITDA of $27.5 million in the same period last year. The improvement was primarily due to higher net company-owned salon revenue as a result of the Alline Acquisition and lower general and administrative expenses, partially offset by lower franchise revenue.

Fourth Quarter Fiscal Year 2025 Segment Results

Franchise

Franchise Revenue

Fourth quarter franchise revenue was $39.9 million, a $7.2 million, or 15.3%, decrease compared to the prior year quarter. Non-margin franchise rental income decreased $4.6 million due to fewer salons in the current year. Royalties were $14.1 million, a $2.0 million, or 12.4%, decrease, versus the same period last year due to the decline in salon count.

Fiscal year 2025 franchise revenue was $166.4 million, a $29.3 million, or 15.0%, decrease compared to the prior year, primarily due to a decline in non-margin franchise rental income as a result of a lower franchise salon count.

Franchise Adjusted EBITDA

Fourth quarter franchise adjusted EBITDA of $7.7 million improved $1.2 million from the same period last year. The improvement was primarily due to lower general and administrative expenses, offset partially by decreases in royalties as a result of lower salon count.

Fiscal year 2025 franchise adjusted EBITDA of $28.4 million improved $0.6 million year-over-year. The improvement was primarily due to lower general and administrative expenses.

Company-Owned Salons

Company-Owned Salon Revenue

Fourth quarter revenue for the company-owned salon segment improved $18.2 million versus the prior year to $20.5 million. The year-over-year improvement in revenue was driven by an increase in salon count as a result of the Alline Acquisition in the second quarter of fiscal year 2025.

Fiscal year 2025 revenue for the company-owned salon segment improved $36.4 million versus the prior year to $43.7 million due to additional revenues generated by the increase in salon count as a result of the Alline Acquisition in the second quarter of fiscal year 2025.

Company-Owned Salon Adjusted EBITDA

Fourth quarter company-owned salon adjusted EBITDA improved $0.7 million year-over-year, primarily due to increased revenues generated by the greater salon count and the closure of unprofitable salons.

Fiscal year 2025 company-owned salon adjusted EBITDA improved $3.5 million year-over-year, driven primarily by the income generated by the salons acquired through the Alline Acquisition in the second fiscal quarter of the year.

Balance Sheet and Cash Flow

The Company ended fiscal year 2025 with $17.0 million in cash and cash equivalents. On December 19, 2024, the Company amended its 2024 Credit Agreement for an additional $15.0 million in long-term debt in the form of a term loan, resulting in $125.3 million in outstanding borrowings ($118.9 million term loan, $5.4 million paid in kind interest, and $1.0 million revolver draw) and total liquidity of $25.9 million at June 30, 2025. Net cash provided by operating activities for the fiscal year totaled $13.7 million, an improvement of $15.7 million from the prior year. Cash generation improved due primarily to income generated by company-owned salons and a build of ad fund cash.

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 2025 results today, September 3, 2025, 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, 2025, the Company franchised or owned 3,941 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," "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; laws and regulations could require us to modify current business practices and incur increased costs including increases in minimum wages; changes in general economic environment; changes in consumer tastes, hair product innovation, fashion trends and consumer spending patterns; compliance with Nasdaq listing requirements; reliance on franchise royalties and overall success of our franchisees' salons; our salons' dependence on a third-party supplier agreement for merchandise; 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' salons; our ability to maintain and enhance the value of our brands; reliance on 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; 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; reliance on our management team and other key personnel, including a successful search for a new CEO; 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 this 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: discontinued operations, inventory reserve, 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, asset retirement obligation costs, and the benefit from the Company's debt refinancing.

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/20250903985787/en/

REGIS CORPORATION:

Kersten Zupfer

[email protected]

HAYDEN IR:

James Carbonara

[email protected]

(646) 755-7412

Brett Maas

[email protected]

(646) 536-7331