Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported total revenue of $210 million, an increase of 3.5% or $7.2 million compared to the prior year, primarily driven by increased revenue from company-owned salons due to the acquisition of Align [22][24] - The fourth quarter revenue was $60.4 million, a 22.3% increase or $11 million compared to the prior year, mainly due to increased revenue from company-owned salons and a same-store sales growth of 1.3% [15][16] - Operating income for the fourth quarter was $7.3 million, up from $4.6 million in the year-ago quarter, reflecting a 58.7% increase [17][19] - Adjusted EBITDA for the fourth quarter was $9.7 million, a 24.8% increase compared to $7.8 million in the prior year quarter [20] Business Line Data and Key Metrics Changes - The company-owned salon segment's adjusted EBITDA improved by $700,000 year-over-year to $2 million for the quarter, primarily due to an increased number of company-owned salons and closure of unprofitable salons [22] - Franchise adjusted EBITDA increased from 13.7% in the year-ago quarter to 19.3% in the current period, indicating improved operational efficiency across the franchise network [22] Market Data and Key Metrics Changes - The professional hair salon industry remains resilient, driven by recurring consumer demand and a focus on self-care and wellness, with steady growth particularly in the value-focused segment [8] - Salons with higher online booking percentages show a strong correlation to business performance, supporting the company's omnichannel focus [9] Company Strategy and Development Direction - The company is focused on two primary priorities: the holistic transformation of the Supercuts brand and optimizing sales and profitability in company-owned salons [4][14] - A comprehensive brand research study for Supercuts has been completed to enhance brand relevance and customer experience [9] - The company is working on a new salon prototype aimed at improving efficiency and customer experience, with pilot launches expected in early 2026 [11][38] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's operational improvements and the potential of the company-owned salon portfolio, emphasizing the importance of the new stylist pay model [39] - The company anticipates a meaningful increase in unrestricted cash generation from core operations in fiscal year 2026, driven by operational strength and a full year of Align results [26][27] Other Important Information - The company generated $6.8 million in cash from operations for the fourth quarter, an improvement of $1.7 million compared to the fourth quarter of fiscal 2024 [25] - As of June 30, 2025, the company had $25.9 million of available liquidity, including $17 million in unrestricted cash [29] Q&A Session Summary Question: Can you talk more about the Forum 3 initiatives? - Management highlighted Forum 3's engagement in modernizing the Supercuts brand and enhancing omnichannel growth, including the success of the Supercuts Rewards loyalty program [33][34] Question: How would the new salon prototype be financed and implemented? - Management indicated that they are exploring multiple paths for financing the new salon prototype, with franchisees ready to remodel salons once the prototype is finalized [38] Question: Do you think there's more upside to the Align results? - Management expressed optimism about the company-owned salon portfolio and the early stages of operational improvements, indicating a positive outlook for future performance [39] Question: What are your plans on refinancing the debt? - Management confirmed ongoing discussions regarding refinancing the debt, aiming to reduce interest rates as operational performance improves [43]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported total revenue of $210 million, an increase of 3.5% or $7.2 million compared to the prior year, primarily driven by increased revenue from company-owned salons due to the acquisition of Align [20][21] - The fourth quarter revenue was $60.4 million, a 22.3% increase or $11 million compared to the prior year, mainly due to increased revenue from company-owned salons and a same-store sales growth of 1.3% [14][15] - Operating income for the fourth quarter was $7.3 million, up from $4.6 million in the year-ago quarter, reflecting a 58.7% increase [16][18] - Adjusted EBITDA for the fourth quarter was $9.7 million, a 24.8% increase compared to $7.8 million in the prior year quarter [19][21] Business Line Data and Key Metrics Changes - The company-owned salon segment's adjusted EBITDA improved by $700,000 year-over-year to $2 million for the quarter, primarily due to an increased number of company-owned salons and the closure of unprofitable salons [20] - The franchise segment's adjusted EBITDA was $7.7 million in the quarter, a $1.2 million increase compared to the prior year, driven by lower general and administrative expenses [19][20] Market Data and Key Metrics Changes - The professional hair salon industry remains resilient, driven by recurring consumer demand and a focus on self-care and wellness, with steady growth particularly in the value-focused segment [8][9] - Salons with higher online booking percentages show a strong correlation to business performance, indicating the effectiveness of digital channels [9] Company Strategy and Development Direction - The company is focused on two primary priorities: the holistic transformation of the Supercuts brand and optimizing sales and profitability in company-owned salons [4][13] - A comprehensive brand research study for Supercuts has been completed to enhance brand relevance and customer engagement [9][10] - The company is working on a new salon prototype aimed at improving efficiency and customer experience, with pilot launches expected in early 2026 [11][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's operational improvements and the potential of the company-owned salon portfolio, emphasizing the importance of a new stylist pay model and ongoing pilots [35] - The company anticipates a meaningful increase in unrestricted cash generation from core operations in fiscal year 2026, driven by operational strength and a full year of Align results [24][25] Other Important Information - The company reported a net decrease of 744 franchise locations compared to the previous year, with approximately 300 of these relating to the Align salons that converted from franchise to company-owned [15] - As of June 30, 2025, the company had $25.9 million of available liquidity, including $17 million in unrestricted cash [26] Q&A Session Summary Question: Can you talk more about the Forum 3 initiatives? - Management highlighted Forum 3's role in modernizing the Supercuts brand and enhancing omnichannel growth, including the success of the Supercuts Rewards loyalty program [30][31] Question: How would the new salon prototype be financed and implemented? - Management indicated that they are exploring various financing paths for the new salon prototype, with several franchisees ready to remodel once the prototype is finalized [34] Question: Do you think there's more upside to the Align results? - Management expressed optimism about the company-owned salon portfolio and noted that operational improvements are in the early stages [35] Question: What are your plans on refinancing the debt? - Management confirmed that discussions on refinancing the debt are ongoing, with a focus on strengthening financial positions to secure better terms [40]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported total revenue of $210 million, an increase of 3.5% or $7.2 million compared to the prior year, primarily driven by increased revenue from company-owned salons due to the acquisition of Align [20][21] - The fourth quarter revenue was $60.4 million, a 22.3% increase or $11 million compared to the prior year, mainly due to increased revenue from company-owned salons and a same-store sales growth of 1.3% [14][15] - Operating income for the fourth quarter was $7.3 million, up from $4.6 million in the year-ago quarter, reflecting a 58.7% increase [16][18] - Adjusted EBITDA for the fourth quarter was $9.7 million, a 24.8% increase compared to $7.8 million in the prior year quarter [19] Business Line Data and Key Metrics Changes - The company-owned salon segment saw improved performance, with adjusted EBITDA increasing by $700,000 year-over-year to $2 million for the quarter, attributed to the increased number of company-owned salons and closure of unprofitable salons [20] - The franchise segment's adjusted EBITDA increased to $7.7 million in the quarter, a $1.2 million increase compared to the prior year, driven by lower general and administrative expenses [19][20] Market Data and Key Metrics Changes - The professional hair salon industry remains resilient, driven by recurring consumer demand and a focus on self-care and wellness, with steady growth particularly in the value-focused segment [8] - The company noted a strong correlation between salons with higher online booking percentages and business performance, indicating the effectiveness of digital channels [8][9] Company Strategy and Development Direction - The company is focused on two primary priorities: the holistic transformation of the Supercuts brand and optimizing sales and profitability in company-owned salons [4][13] - A comprehensive brand research study for Supercuts has been completed to enhance brand relevance and customer experience [9][10] - The company is also working on a new salon prototype aimed at improving efficiency and customer experience, with plans for pilot launches in early 2026 [11][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's operational improvements and the potential of the company-owned salon portfolio, emphasizing the importance of the new stylist pay model and ongoing pilots [35] - The company anticipates a meaningful increase in unrestricted cash generation from core operations in fiscal year 2026, driven by operational strength and a full year of Align results [24][25] Other Important Information - The company reported a net decrease of 744 franchise locations compared to the previous year, with approximately 300 of these relating to the Align salons that converted from franchise to company-owned [15] - As of June 30, 2025, the company had $25.9 million of available liquidity, including $17 million in unrestricted cash [26] Q&A Session Summary Question: Can you talk more about the Forum 3 initiatives? - Management highlighted Forum 3's role in modernizing the Supercuts brand and enhancing omnichannel growth, including the success of the Supercuts Rewards loyalty program [30][31] Question: How would the new salon prototype be financed and implemented? - Management indicated that they are exploring multiple financing paths for the new salon prototype, with several franchisees ready to remodel once the prototype is finalized [34] Question: Do you think there's more upside to the Align results? - Management expressed optimism about the company-owned salon portfolio and noted that operational improvements are in the early stages [35] Question: What are your plans on refinancing the debt? - Management confirmed that discussions on refinancing the debt are ongoing, with a focus on strengthening financial positions to secure better terms [40]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported total revenue of $210 million, an increase of 3.5% or $7.2 million compared to the prior year, primarily driven by increased revenue from company-owned salons due to the acquisition of Align [20][21] - The fourth quarter revenue was $60.4 million, a 22.3% increase or $11 million compared to the prior year, mainly due to increased revenue from company-owned salons and a same-store sales growth of 1.3% [14][15] - Operating income for the fourth quarter was $7.3 million, up from $4.6 million in the year-ago quarter, reflecting a 58.7% increase [16][18] - Adjusted EBITDA for the fourth quarter was $9.7 million, a 24.8% increase compared to $7.8 million in the prior year quarter [19][21] Business Line Data and Key Metrics Changes - The company-owned salon segment's adjusted EBITDA improved by $700,000 year-over-year to $2 million for the quarter, primarily due to an increased number of company-owned salons and closure of unprofitable salons [20] - The franchise segment's adjusted EBITDA was $7.7 million in the quarter, a $1.2 million increase compared to the prior year, driven by lower general and administrative expenses [19][20] Market Data and Key Metrics Changes - The professional hair salon industry remains resilient, driven by recurring consumer demand and a focus on self-care and wellness, with steady growth particularly in the value-focused segment [8][9] - Salons with higher online booking percentages show a strong correlation to business performance, indicating the effectiveness of digital channels [9] Company Strategy and Development Direction - The company is focused on two primary priorities: the holistic transformation of the Supercuts brand and optimizing sales and profitability in company-owned salons [4][13] - A comprehensive brand research study for Supercuts has been completed to modernize and evolve the brand, enhancing customer engagement [9][10] - The company is also working on a new salon prototype aimed at improving efficiency and customer experience, with pilot launches expected in early 2026 [11][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's operational improvements and the potential of the company-owned salon portfolio, emphasizing the importance of the new stylist pay model [35] - The company anticipates a meaningful increase in unrestricted cash generation from core operations in fiscal year 2026, driven by operational strength and a full year of Align results [24][25] Other Important Information - The company reported a net decrease of 744 franchise locations compared to the previous year, with approximately 300 of these relating to the Align salons that converted from franchise to company-owned [15] - As of June 30, 2025, the company had $25.9 million of available liquidity, including $17 million in unrestricted cash [26] Q&A Session Summary Question: Can you talk more about the Forum 3 initiatives? - Management highlighted Forum 3's engagement in modernizing the Supercuts brand and enhancing omnichannel growth, particularly through the loyalty rewards program and online booking initiatives [30][31][32] Question: How would the new salon prototype be financed and implemented? - Management indicated that they are exploring various financing paths for the new salon prototype, with several franchisees ready to remodel salons once the prototype is finalized [34] Question: Do you think there's more upside to the Align results? - Management expressed optimism about the company-owned salon portfolio and noted that operational improvements are in the early stages, with a focus on launching several pilots [35] Question: What are your plans on refinancing the debt? - Management confirmed that discussions are ongoing regarding refinancing the debt, with a focus on strengthening financial positions and improving EBITDA [40]

Executive Summary & Business Outlook [CEO Commentary & Strategic Initiatives](index=1&type=section&id=CEO%20Commentary%20%26%20Strategic%20Initiatives) Regis Corporation concluded fiscal year 2025 with improved financial performance and strategic confidence, driven by cost management, transformation initiatives, and a significant valuation allowance release - FY2025 Revenue: **$210.1 million**[2](index=2&type=chunk) - FY2025 Operating Income: **$19.9 million**[2](index=2&type=chunk) - FY2025 Adjusted EBITDA: **$31.6 million**[2](index=2&type=chunk) - Q4 Same-Store Sales (Supercuts): Up **2.9%**[1](index=1&type=chunk) - Q4 Same-Store Sales (Regis Consolidated): Up **1.3%**[1](index=1&type=chunk) - Strategic Action: Release of **$116.3 million** valuation allowance on deferred tax assets, reflecting confidence in future profitability and NOL utilization[1](index=1&type=chunk)[3](index=3&type=chunk) - Operational Highlight: Delivered third consecutive quarter of **positive cash from operations**[1](index=1&type=chunk) - Strategic Focus: Advancing transformational strategy for long-term profitable growth, supported by digital transformation and brand strategy expertise from Forum3[1](index=1&type=chunk)[4](index=4&type=chunk) [Company Overview](index=7&type=section&id=Company%20Overview) Regis Corporation is a prominent haircare industry leader, operating or franchising 3,941 locations under well-known brands as of June 30, 2025 - Total Locations (as of June 30, 2025): **3,941**[28](index=28&type=chunk) - Key Brands: Supercuts, SmartStyle, Cost Cutters, Roosters, First Choice Haircutters[28](index=28&type=chunk) Financial Highlights (Overview) [Fourth Quarter Fiscal Year 2025 vs. 2024](index=2&type=section&id=Fourth%20Quarter%20Fiscal%20Year%202025%20vs.%202024) Regis Corporation reported improved Q4 FY2025 consolidated revenue, operating income, net income, and Adjusted EBITDA, primarily driven by company-owned salon revenue Fourth Quarter Financial Performance (Millions USD, except percentages and EPS) | Metric | Q4 FY2025 | Q4 FY2024 | Change | | :-------------------------- | :-------- | :-------- | :------- | | Consolidated Revenue (Millions USD) | $60.4M | $49.4M | +$11.0M | | Supercuts Same-Store Sales | 2.9% | N/A | N/A | | Consolidated Same-Store Sales | 1.3% | N/A | N/A | | Operating Income (Millions USD) | $7.3M | $4.6M | +$2.7M | | Cash from Operations (Millions USD) | $6.8M | $5.1M | +$1.7M | | Adjusted EBITDA (Millions USD) | $9.7M | $7.8M | +$1.9M | | Net Income (Millions USD) | $116.5M | $91.2M | +$25.3M | | Diluted EPS (USD) | $42.58 | $38.10 | +$4.48 | | Adjusted Net Income (Millions USD) | $2.0M | $(2.0)M | +$4.0M | | Adjusted Diluted EPS (USD) | $0.74 | $(0.84) | +$1.58 | [Full Fiscal Year 2025 vs. 2024](index=2&type=section&id=Full%20Fiscal%20Year%202025%20vs.%202024) Full fiscal year 2025 saw increased consolidated revenue, significantly improved cash from operations, and growth in Adjusted EBITDA and net income, despite a slight operating income decrease Full Fiscal Year Financial Performance (Millions USD, except percentages and EPS) | Metric | FY2025 | FY2024 | Change | | :-------------------------- | :------- | :------- | :------- | | Consolidated Revenue (Millions USD) | $210.1M | $203.0M | +$7.1M | | Supercuts Same-Store Sales | 1.3% | N/A | N/A | | Consolidated Same-Store Sales | (0.6)% | N/A | N/A | | Operating Income (Millions USD) | $19.9M | $20.9M | -$1.0M | | Cash from Operations (Millions USD) | $13.7M | $(2.0)M | +$15.7M | | Adjusted EBITDA (Millions USD) | $31.6M | $27.5M | +$4.1M | | Net Income (Millions USD) | $123.5M | $91.1M | +$32.4M | | Diluted EPS (USD) | $46.10 | $38.34 | +$7.76 | | Adjusted Net Income (Millions USD) | $7.6M | $(2.2)M | +$9.8M | | Adjusted Diluted EPS (USD) | $2.85 | $(0.92) | +$3.77 | Detailed Consolidated Financial Results [Consolidated Financial Performance Summary](index=3&type=section&id=Consolidated%20Financial%20Performance%20Summary) Regis Corporation reported strong Q4 and FY2025 consolidated financial results, with significant increases in net income and diluted EPS driven by an income tax benefit, alongside improved revenue and Adjusted EBITDA Consolidated Financial Performance Summary (Millions USD, except percentages and EPS) | Metric | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | :-------- | | Consolidated revenue (Millions USD) | $60.4M | $49.4M | $210.1M | $203.0M | | System-wide revenue (Millions USD) | $278.5M | $293.7M | $1,104.9M | $1,179.5M | | System-wide same-store sales comps | 1.3% | (1.3)% | (0.6)% | 0.7% | | Operating income (Millions USD) | $7.3M | $4.6M | $19.9M | $20.9M | | Income from continuing operations (Millions USD) | $118.4M | $91.3M | $117.0M | $89.1M | | Diluted income per share from continuing operations (USD) | $43.27 | $38.14 | $43.67 | $37.50 | | Net income (Millions USD) | $116.5M | $91.2M | $123.5M | $91.1M | | Net income per diluted share (USD) | $42.58 | $38.10 | $46.10 | $38.34 | | Adjusted EBITDA (Millions USD) | $9.7M | $7.8M | $31.6M | $27.5M | | Adjusted net income (loss) (Millions USD) | $2.0M | $(2.0)M | $7.6M | $(2.2)M | | Adjusted net income (loss) per diluted share (USD) | $0.74 | $(0.84) | $2.85 | $(0.92) | [Revenue Analysis](index=3&type=section&id=Revenue%20Analysis) Consolidated revenue increased in Q4 and FY2025, reaching **$60.4 million** and **$210.1 million** respectively, primarily driven by company-owned salon revenue from the Alline acquisition - Q4 Consolidated Revenue: **$60.4 million** (up **$11.0 million** YoY)[9](index=9&type=chunk) - FY2025 Consolidated Revenue: **$210.1 million** (up **$7.1 million** YoY)[9](index=9&type=chunk) - Primary Driver: Increase in company-owned salon revenue from the Alline acquisition (December 19, 2024)[9](index=9&type=chunk) [Operating Income Analysis](index=3&type=section&id=Operating%20Income%20Analysis) Q4 2025 operating income increased to **$7.3 million** due to Alline salons, while FY2025 operating income slightly decreased to **$19.9 million** compared to the prior year - Q4 2025 Operating Income: **$7.3 million** (vs. **$4.6 million** in Q4 2024)[10](index=10&type=chunk) - FY2025 Operating Income: **$19.9 million** (vs. **$20.9 million** in FY2024)[10](index=10&type=chunk) - Q4 Driver: Operating income from Alline salons, partially offset by lower royalties[10](index=10&type=chunk) [Income from Continuing Operations Analysis](index=4&type=section&id=Income%20from%20Continuing%20Operations%20Analysis) Income from continuing operations significantly increased in Q4 and FY2025, primarily due to a **$115.5 million** income tax benefit from a valuation allowance release, with Q4 2024 including a **$94.6 million** debt extinguishment gain - Q4 2025 Income from Continuing Operations: **$118.4 million** (**$43.27** diluted EPS)[12](index=12&type=chunk) - FY2025 Income from Continuing Operations: **$117.0 million** (**$43.67** diluted EPS)[12](index=12&type=chunk) - Primary Driver: **$115.5 million** income tax benefit from partial release of valuation allowance[12](index=12&type=chunk) - Q4 2024 Note: Included a **$94.6 million** gain on extinguishment of long-term debt[12](index=12&type=chunk) [Net Income Analysis](index=4&type=section&id=Net%20Income%20Analysis) Net income for Q4 2025 was **$116.5 million** and for FY2025 was **$123.5 million**, driven by a **$115.5 million** income tax benefit, partially offset by a prior year **$94.6 million** debt extinguishment gain - Q4 2025 Net Income: **$116.5 million** (**$42.58** diluted EPS)[13](index=13&type=chunk) - FY2025 Net Income: **$123.5 million** (**$46.10** diluted EPS)[13](index=13&type=chunk) - Primary Driver: **$115.5 million** income tax benefit from partial release of valuation allowance in Q4 FY2025[13](index=13&type=chunk) - Offsetting Factor (prior year): **$94.6 million** gain on extinguishment of long-term debt in FY2024[13](index=13&type=chunk) [Adjusted EBITDA Analysis](index=4&type=section&id=Adjusted%20EBITDA%20Analysis) Adjusted EBITDA improved in Q4 and FY2025, reaching **$9.7 million** and **$31.6 million** respectively, driven by higher company-owned salon revenue and lower general and administrative expenses - Q4 Adjusted EBITDA: **$9.7 million** (up **$1.9 million** YoY)[14](index=14&type=chunk) - FY2025 Adjusted EBITDA: **$31.6 million** (up **$4.1 million** YoY)[15](index=15&type=chunk) - Drivers: Higher company-owned salon revenue (Alline Acquisition), lower general and administrative expenses[14](index=14&type=chunk)[15](index=15&type=chunk) - Offset: Lower franchise revenue[14](index=14&type=chunk)[15](index=15&type=chunk) Segment Performance [Franchise Segment](index=5&type=section&id=Franchise%20Segment) The Franchise segment experienced decreased revenue in Q4 and FY2025 due to a lower salon count, but Franchise Adjusted EBITDA improved from reduced general and administrative expenses [Franchise Revenue](index=5&type=section&id=Franchise%20Revenue) Franchise revenue decreased by **$7.2 million** in Q4 to **$39.9 million** and by **$29.3 million** for FY2025 to **$166.4 million**, primarily due to a lower franchise salon count Franchise Revenue Performance (Millions USD, except percentages) | Metric | Q4 2025 | Q4 2024 | Change | FY 2025 | FY 2024 | Change | | :-------------------------- | :-------- | :-------- | :------- | :-------- | :-------- | :------- | | Royalties (Millions USD) | $14.1M | $16.1M | $(2.0)M | $58.2M | $64.1M | $(5.9)M | | Fees (Millions USD) | $2.1M | $2.4M | $(0.3)M | $9.7M | $10.2M | $(0.5)M | | Franchise rental income (Millions USD) | $18.1M | $22.7M | $(4.6)M | $76.6M | $95.3M | $(18.7)M | | Total franchise revenue (Millions USD) | $39.9M | $47.1M | $(7.2)M | $166.4M | $195.7M | $(29.3)M | | Franchise same-store sales comps | 1.3% | (1.4)% | N/A | (0.6)% | 0.6% | N/A | - Primary Reason for Decrease: Decline in non-margin franchise rental income and royalties due to fewer salons[17](index=17&type=chunk)[18](index=18&type=chunk) [Franchise Adjusted EBITDA](index=5&type=section&id=Franchise%20Adjusted%20EBITDA) Franchise Adjusted EBITDA improved by **$1.2 million** in Q4 to **$7.7 million** and by **$0.6 million** for FY2025 to **$28.4 million**, primarily driven by lower general and administrative expenses - Q4 Franchise Adjusted EBITDA: **$7.7 million** (up **$1.2 million** YoY)[19](index=19&type=chunk) - FY2025 Franchise Adjusted EBITDA: **$28.4 million** (up **$0.6 million** YoY)[19](index=19&type=chunk) - Primary Driver: Lower general and administrative expenses[19](index=19&type=chunk) [Company-Owned Salons Segment](index=6&type=section&id=Company-Owned%20Salons%20Segment) The Company-Owned Salons segment achieved significant revenue and Adjusted EBITDA growth in Q4 and FY2025, driven by the Alline Acquisition and strategic closure of unprofitable salons [Company-Owned Salon Revenue](index=6&type=section&id=Company-Owned%20Salon%20Revenue) Company-owned salon revenue significantly improved in Q4 and FY2025, increasing by **$18.2 million** to **$20.5 million** and by **$36.4 million** to **$43.7 million** respectively, primarily due to the Alline Acquisition Company-Owned Salon Revenue Performance (Millions USD, except percentages and count) | Metric | Q4 2025 | Q4 2024 | Change | FY 2025 | FY 2024 | Change | | :-------------------------------- | :-------- | :-------- | :------- | :-------- | :-------- | :------- | | Total company-owned salon revenue (Millions USD) | $20.5M | $2.3M | +$18.2M | $43.7M | $7.3M | +$36.4M | | Company-owned same-store sales comps | 1.9% | 2.4% | N/A | (2.8)% | 3.5% | N/A | | Total Company-owned salons (Count) | 294 | 17 | +277 | N/A | N/A | N/A | - Primary Driver: Increase in salon count due to the Alline Acquisition[21](index=21&type=chunk)[22](index=22&type=chunk) [Company-Owned Salon Adjusted EBITDA](index=6&type=section&id=Company-Owned%20Salon%20Adjusted%20EBITDA) Company-owned salon Adjusted EBITDA improved by **$0.7 million** in Q4 and by **$3.5 million** for FY2025, driven by increased revenues from the Alline Acquisition and closure of unprofitable salons - Q4 Company-Owned Salon Adjusted EBITDA: **$2.0 million** (up **$0.7 million** YoY)[20](index=20&type=chunk)[23](index=23&type=chunk) - FY2025 Company-Owned Salon Adjusted EBITDA: **$3.2 million** (up **$3.5 million** YoY)[20](index=20&type=chunk)[23](index=23&type=chunk) - Drivers: Increased revenues from higher salon count (Alline Acquisition) and closure of unprofitable salons[23](index=23&type=chunk) Financial Position and Cash Flow [Balance Sheet](index=9&type=section&id=Balance%20Sheet) As of June 30, 2025, total assets increased to **$598,957 thousand**, driven by goodwill, property, equipment, and a deferred tax asset, while total liabilities decreased, significantly increasing shareholders' equity Balance Sheet Summary (Thousands USD) | Metric (in thousands) | 2025 | 2024 | Change | | :-------------------------------- | :--------- | :--------- | :--------- | | **ASSETS:** | | | | | Cash and cash equivalents | $16,959 | $10,066 | +$6,893 | | Total current assets | $50,484 | $42,050 | +$8,434 | | Property and equipment, net | $10,085 | $3,664 | +$6,421 | | Goodwill | $183,436 | $173,146 | +$10,290 | | Other intangibles, net | $5,830 | $2,427 | +$3,403 | | Right of use asset | $229,861 | $287,912 | $(58,051) | | Deferred tax asset | $102,504 | $0 | +$102,504 | | Total assets | $598,957 | $530,496 | +$68,461 | | **LIABILITIES & EQUITY:** | | | | | Total current liabilities | $101,688 | $103,518 | $(1,830) | | Long-term debt, net | $109,693 | $99,545 | +$10,148 | | Long-term lease liability | $179,280 | $230,607 | $(51,327) | | Total liabilities | $413,341 | $473,709 | $(60,368) | | Retained earnings (deficit) | $101,965 | $(21,571) | +$123,536 | | Total shareholders' equity | $185,616 | $56,787 | +$128,829 | - Key Change: Recognition of **$102,504 thousand** deferred tax asset in 2025[31](index=31&type=chunk) - Debt: Amended 2024 Credit Agreement for an additional **$15,000 thousand** in long-term debt, resulting in **$125,300 thousand** outstanding borrowings at June 30, 2025[24](index=24&type=chunk) [Cash Flow Statement](index=12&type=section&id=Cash%20Flow%20Statement) Net cash provided by operating activities for FY2025 significantly improved to **$13,744 thousand**, driven by company-owned salon income and ad fund cash, while investing activities used **$11,453 thousand** and financing provided **$3,589 thousand** Cash Flow Summary (Thousands USD) | Metric (in thousands) | 2025 | 2024 | Change | | :------------------------------------------ | :--------- | :--------- | :--------- | | Net income | $123,536 | $91,060 | +$32,476 | | Deferred income taxes | $(113,891) | $519 | $(114,410) | | Gain on extinguishment of long-term debt, net | $0 | $(94,611) | +$94,611 | | Net cash provided by (used in) operating activities | $13,744 | $(2,040) | +$15,784 | | Net cash (used in) provided by investing activities | $(11,453) | $1,624 | $(13,077) | | Net cash provided by financing activities | $3,589 | $8,363 | $(4,774) | | Increase in cash, cash equivalents and restricted cash | $5,893 | $7,916 | $(2,023) | | Cash, cash equivalents and restricted cash, End of year | $35,205 | $29,312 | +$5,893 | - Operating Cash Flow Driver: Income from company-owned salons and ad fund cash build[24](index=24&type=chunk) - Investing Activities: Business acquisitions (net of cash acquired) of **$18,620 thousand**[36](index=36&type=chunk) - Financing Activities: Proceeds from long-term debt (**$15,000 thousand**) and repayments (**$1,125 thousand**)[36](index=36&type=chunk) Supplemental Operational Metrics [System-Wide Same-Store Sales](index=13&type=section&id=System-Wide%20Same-Store%20Sales) Q4 2025 saw total system-wide same-store sales up **1.3%**, led by Supercuts, while FY2025 experienced a **0.6%** decrease, with service sales generally outperforming retail sales System-Wide Same-Store Sales (Percentages) | Brand | Q4 2025 Service | Q4 2025 Retail | Q4 2025 Total | FY 2025 Service | FY 2025 Retail | FY 2025 Total | | :---------------- | :-------------- | :------------- | :------------ | :-------------- | :------------- | :------------ | | Supercuts | 3.2% | (7.0)% | 2.9% | 1.7% | (9.0)% | 1.3% | | SmartStyle | (1.7)% | (17.8)% | (4.1)% | (3.8)% | (18.5)% | (6.1)% | | Portfolio Brands | 2.2% | (5.5)% | 1.8% | (0.2)% | (7.7)% | (0.6)% | | Total | 2.1% | (11.3)% | 1.3% | 0.3% | (12.9)% | (0.6)% | [System-Wide Location Counts](index=14&type=section&id=System-Wide%20Location%20Counts) As of June 30, 2025, Regis Corporation operated **3,941** salons, a decrease from 2024, reflecting a reduction in franchise salons and a substantial increase in company-owned salons due to the Alline Acquisition System-Wide Location Counts (Number of Salons) | Category | 2025 | 2024 | Change | | :------------------------------------------ | :----- | :----- | :----- | | Total Franchise salons | 3,647 | 4,391 | (744) | | Total Company-owned salons | 294 | 17 | +277 | | Total franchise and company-owned salons | 3,941 | 4,408 | (467) | - Key Driver: Alline Acquisition increased company-owned salons[42](index=42&type=chunk) Non-GAAP Financial Measures & Reconciliations [Explanation of Non-GAAP Measures](index=15&type=section&id=Explanation%20of%20Non-GAAP%20Measures) Regis Corporation uses non-GAAP measures like Adjusted EBITDA and adjusted franchise revenue to provide additional insight into operating performance and facilitate investor analysis, excluding specific non-cash and non-margin items - Purpose: Provide meaningful insight into ongoing operating performance, supplemental perspective, and enhanced understanding for investors[43](index=43&type=chunk) - Exclusions for Adjusted EBITDA: Discontinued operations, inventory reserve, one-time professional fees and settlements, severance expense, lease liability decreases benefit, lease termination fees, asset retirement obligation costs, and debt refinancing benefit[46](index=46&type=chunk) - Exclusions for Adjusted Franchise Revenue: Non-margin revenue (franchise rental income, advertising fund contributions) to show a meaningful margin rate[47](index=47&type=chunk) - Limitation: Non-GAAP results are not in accordance with U.S. GAAP and may differ from other companies; should be viewed as supplemental[48](index=48&type=chunk) [Reconciliation of Net Income to Adjusted EBITDA](index=16&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20EBITDA) This reconciliation details adjustments to reported net income, including interest, taxes, depreciation, impairment, stock compensation, discontinued operations, debt extinguishment gain, and discrete items, to derive Adjusted EBITDA Reconciliation of Net Income to Adjusted EBITDA (Thousands USD) | Metric (in thousands) | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | :-------- | | Reported net income | $116,494 | $91,201 | $123,536 | $91,060 | | Interest expense | $5,471 | $6,864 | $20,252 | $25,393 | | Income taxes | $(115,406) | $1,070 | $(115,496) | $869 | | Depreciation and amortization | $1,321 | $1,889 | $2,966 | $3,945 | | Long-lived asset impairment | $0 | $628 | $352 | $798 | | EBITDA | $7,880 | $101,652 | $31,610 | $122,065 | | Stock-based compensation expense | $(103) | $358 | $1,940 | $1,559 | | Loss (gain) on discontinued operations | $1,892 | $96 | $(6,504) | $(1,993) | | Gain on extinguishment of long-term debt, net | $0 | $(94,611) | $0 | $(94,611) | | Discrete items | $3 | $258 | $4,529 | $472 | | Adjusted EBITDA, non-GAAP financial measure | $9,672 | $7,753 | $31,575 | $27,492 | [Reconciliation of Franchise Adjusted EBITDA to Adjusted Franchise Revenue](index=17&type=section&id=Reconciliation%20of%20Franchise%20Adjusted%20EBITDA%20to%20Adjusted%20Franchise%20Revenue) This reconciliation adjusts GAAP franchise revenue by removing non-margin components like rental income and advertising fund contributions to calculate a more representative franchise Adjusted EBITDA percentage Reconciliation of Franchise Adjusted EBITDA to Adjusted Franchise Revenue (Thousands USD, except percentages) | Metric (in thousands) | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :-------------------------------------------------- | :-------- | :-------- | :-------- | :-------- | | Franchise adjusted EBITDA | $7,678 | $6,469 | $28,362 | $27,815 | | GAAP franchise revenue | $39,855 | $47,092 | $166,403 | $195,659 | | Franchise adjusted EBITDA as a percent of GAAP franchise revenue | 19.3% | 13.7% | 17.0% | 14.2% | | Non-margin revenue adjustments: | | | | | | Franchise rental income | $(18,075) | $(22,724) | $(76,599) | $(95,258) | | Advertising fund contributions | $(5,590) | $(5,856) | $(21,924) | $(25,663) | | Adjusted franchise revenue | $16,190 | $18,512 | $67,880 | $74,738 | | Franchise adjusted EBITDA as a percent of adjusted franchise revenue | 47.4% | 34.9% | 41.8% | 37.2% | [Reconciliation of Net Income to Adjusted Net Income (Loss)](index=18&type=section&id=Reconciliation%20of%20Net%20Income%20to%20Adjusted%20Net%20Income%20(Loss)) This reconciliation adjusts reported net income by adding or subtracting non-GAAP items like stock compensation, asset impairment, discontinued operations, debt restructuring gain, and discrete items to derive adjusted net income (loss) Reconciliation of Net Income to Adjusted Net Income (Loss) (Thousands USD) | Metric (in thousands) | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | :-------- | | Net income | $116,494 | $91,201 | $123,536 | $91,060 | | Stock-based compensation | $(103) | $358 | $1,940 | $1,559 | | Long lived asset impairment | $0 | $629 | $352 | $798 | | Discontinued operations | $1,892 | $96 | $(6,504) | $(1,993) | | Gain on debt restructuring | $0 | $(94,611) | $0 | $(94,611) | | Discrete items (1) | $(116,261) | $320 | $(111,687) | $1,015 | | Adjusted net income (loss) | $2,022 | $(2,007) | $7,637 | $(2,172) | | (1) Discrete items include partial release of valuation allowance of $(116.3) million in Q4 and FY2025 | | | | | [Reconciliation of EPS to Adjusted EPS](index=19&type=section&id=Reconciliation%20of%20EPS%20to%20Adjusted%20EPS) This reconciliation adjusts reported diluted EPS by accounting for the per-share impact of stock compensation, asset impairment, discontinued operations, debt restructuring gain, discrete items, and changes in weighted average shares to derive adjusted diluted EPS Reconciliation of EPS to Adjusted EPS (USD per share) | Metric | Q4 2025 | Q4 2024 | FY 2025 | FY 2024 | | :------------------------------------------ | :-------- | :-------- | :-------- | :-------- | | Reported earnings per diluted share | $42.58 | $38.10 | $46.10 | $38.34 | | Stock compensation | $(0.04) | $0.15 | $0.72 | $0.67 | | Long lived asset impairment | $0.00 | $0.27 | $0.13 | $0.34 | | Discontinued operations | $0.69 | $0.04 | $(2.43) | $(0.85) | | Gain on debt restructuring | $0.00 | $(40.39) | $0.00 | $(40.45) | | Discrete items (1) | $(42.49) | $0.15 | $(41.67) | $0.44 | | Impact of change in weighted average shares (2) | $0.00 | $0.84 | $0.00 | $0.59 | | Adjusted earnings (loss) per diluted share | $0.74 | $(0.84) | $2.85 | $(0.92) | | (1) Discrete items include partial release of valuation allowance of ($42.51) and ($43.40) in Q4 and FY2025, respectively | | | | | Other Information [Earnings Webcast](index=7&type=section&id=Earnings%20Webcast) Regis Corporation hosted an earnings webcast on September 3, 2025, at 7:30 a.m. Central time, to discuss Q4 and FY2025 financial results, with a replay available online - Event: Q4 and FY2025 Earnings Webcast[27](index=27&type=chunk) - Date: **September 3, 2025**[27](index=27&type=chunk) - Time: **7:30 a.m. Central time**[27](index=27&type=chunk) - Access: www.regiscorp.com/investor-relations.html[27](index=27&type=chunk) [Forward-Looking Statements](index=8&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements subject to various risks, including consumer trends, regulations, economic environment, and operational challenges, with no obligation for the company to update them - Nature: Statements concerning anticipated future events and expectations, not historical facts[29](index=29&type=chunk) - Risks: Changes in consumer shopping trends, manufacturer distribution channels, laws/regulations (e.g., minimum wages), general economic environment, consumer tastes, reliance on franchise royalties, third-party supplier agreements, ability to attract/retain stylists, data security, relationship with Walmart, brand value, IT systems, external vendors, enterprise risk management, ERP system challenges, debt service obligations, compliance with covenants, premature termination of franchisee agreements, cost reduction initiatives, competition, management team, internal controls, tax exposure, Tax Preservation Plan, potential litigation[29](index=29&type=chunk) - Disclaimer: No obligation to publicly update or revise forward-looking statements[29](index=29&type=chunk)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-12725 Regis Corporation | (Exact name of registrant as specified in its charter) | | | | | --- | --- | --- | --- | | Minnesota | | | 41-074 ...

Core Viewpoint - Marriott International is expanding its luxury presence in Latin America by introducing the St. Regis Hotels & Resorts brand in Costa Rica, marking the brand's debut in the country and enhancing the Gulf of Papagayo as a luxury destination [1][5][6] Group 1: Project Details - The new resort will span 20 hectares, begin construction in July 2025, and welcome guests by early 2027, located 25 minutes from Liberia International Airport [2] - The design will reflect Costa Rica's culture and oceanic scenery, featuring six dining options, a St. Regis Bar & Speakeasy, an exclusive beach club, a large spa, and multiple pools [3] - The resort will offer over 10,000 square feet of meeting and event space, catering to high-end corporate and social events, while emphasizing local craftsmanship and sustainability [4] Group 2: Market Positioning - Costa Rica's increasing appeal to affluent travelers makes it a strategic choice for Marriott, which currently operates six St. Regis properties in the Caribbean and Latin America [5] - This expansion aligns with Marriott's strategy to grow in upscale markets and leverage its global brand power, positioning the company to capture long-term value amid rising luxury travel demand in Central America [6] Group 3: Stock Performance - Marriott's stock has increased by 10.3% in the past month, outperforming the Zacks Hotels and Motels industry's growth of 10% [7] - The company has delivered a trailing four-quarter earnings surprise of 30.9% on average, with a year-to-date stock gain of 10.4% [9]

Core Insights - Marriott International has signed an agreement with Solana PA, S.R.L. to introduce the St. Regis Hotels & Resorts brand in Costa Rica, with development expected to start in July 2025 and a planned opening in early 2027 [1][2][6] Company Expansion - The St. Regis Papagayo will be the first St. Regis hotel and residences in Costa Rica, reflecting Marriott's commitment to expanding its luxury portfolio in key destinations across the Caribbean and Central America [2][6] - The project is strategically located between Panama Bay and Culebra Bay, just 25 minutes from Liberia International Airport, enhancing the luxury offerings in the Papagayo region [3] Project Details - The new St. Regis Papagayo will feature 120 hotel rooms and 143 residential units, along with six distinct culinary venues and various luxury amenities including multiple swimming pools, a spa, and extensive meeting spaces [2][3][5] - The design will be led by the esteemed Mexican architecture firm Sordo Madaleno, with Gensler Mexico City as the principal interior design firm [4][5] Market Potential - The project arrives at a time of increasing demand for high-end travel and residential offerings in Costa Rica, indicating a significant potential for luxury experiences in the region [4][6]

Group 1 - Regis Corporation (symbol RGS) reported strong revenue growth of over 15% in the third quarter of fiscal 2025 [1] - EBITDA increased by 42% year over year, reaching $7.1 million despite the seasonally challenging nature of the third quarter [1]

Financial Data and Key Metrics Changes - For the third quarter, total revenue was $57 million, an increase of 15.9% or $7.8 million compared to the prior year, primarily driven by revenue from company-owned salons due to the Align acquisition [25][24] - Adjusted EBITDA grew 33% year-over-year to $7.1 million, while operating income increased by 23% to $5 million [5][28] - Cash from operations improved by $14 million year-to-date, generating $6.2 million in the third quarter, marking positive cash flow for the second consecutive quarter [6][32] Business Line Data and Key Metrics Changes - The Align Salon Group acquisition contributed positively to results, although its impact was modest in the quarter as the focus was on integration and planning [7][25] - Same store sales for the consolidated company saw a decline of 1.1%, with Supercuts reporting a 1.1% increase, while SmartStyle experienced a 7.4% decline [9][11] - The company-owned salons segment's adjusted EBITDA improved by $1.6 million year-over-year to $843,000, primarily due to the Align acquisition [31] Market Data and Key Metrics Changes - The timing of Easter negatively impacted sales by an estimated 1.1%, but April showed stronger same store sales with Supercuts increasing by 4.5% [10][11] - The company reported 49 net closures of underperforming stores, with a performance gap of approximately $350,000 between closed stores and top-performing locations [27] Company Strategy and Development Direction - The company is focused on a comprehensive transformation aimed at building a sustainable business model that prioritizes operational stability and profitability [3][4] - Key strategic priorities include optimizing the company-owned salon portfolio and executing a holistic transformation agenda for the Supercuts brand [16][18] - The company aims to enhance brand perception, unlock omnichannel growth, and scale operational excellence as part of its strategic roadmap [22][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term value of the strategic initiatives and the positive momentum observed in early results [9][24] - The company acknowledged the need to increase traffic to salons and improve franchisee profitability to achieve growth [12][18] - Management highlighted the importance of disciplined cost management and capital allocation in navigating current challenges [12][36] Other Important Information - The company expects fiscal year 2025 to be the last year of significant closures, with a shift of approximately 300 locations from franchise to corporate salon counts due to the Align acquisition [27][28] - The company reported a decrease in general and administrative expenses as a percentage of revenue, from 22.8% to 19.6% [28] Q&A Session Summary Question: Understanding the accounting for Align - Management confirmed that while royalty fees in the franchise segment decreased, EBITDA in the company-owned segment increased [39] Question: Updates on store closings for this year - Management indicated that the anticipated closures are occurring as expected and that future closures will be at a significantly lower rate [46][48] Question: Impact of remodeled stores on same store sales - Management noted that remodeled stores have seen a modest lift of about 5% in sales, with some locations achieving over 20% sustained price increases [53][55] Question: Plans for cash allocation - Management stated that the priority is to pay down debt, maintain liquidity, and evaluate opportunities for capital deployment based on business needs [56][60]