Regis (NasdaqGM:RGS) Q2 2026 Earnings call February 05, 2026 08:30 AM ET Company ParticipantsBill Charters - Founder, Owner, and Investment ProfessionalJim Lain - Interim CEOKersten Zupfer - EVP and CFOKersten ZupferGood morning, and thank you for joining the Regis second quarter 2026 earnings conference call. I am your host, Kersten Zupfer, Executive Vice President and Chief Financial Officer. I am joined today by our interim Chief Executive Officer, Jim Lain. All participants are in a listen-only mode, an ...

Regis (NasdaqGM:RGS) Q2 2026 Earnings call February 05, 2026 08:30 AM ET Company ParticipantsBill Charters - Founder, Owner, and Investment ProfessionalJim Lain - Interim CEOKersten Zupfer - EVP and CFOKersten ZupferGood morning, and thank you for joining the Regis Second Quarter 2026 Earnings Conference Call. I am your host, Kersten Zupfer, Executive Vice President and Chief Financial Officer. I am joined today by our interim Chief Executive Officer, Jim Lain. All participants are in a listen-only mode, an ...

Regis (NasdaqGM:RGS) Q2 2026 Earnings call February 05, 2026 08:30 AM ET Company ParticipantsBill Charters - FounderJim Lain - Interim President and CEOKersten Zupfer - EVP and CFOKersten ZupferI am joined today by our Interim CEO, Jim Lain. All participants are in a listen-only mode, and this conference is being recorded. 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 ...

Financial Data and Key Metrics Changes - For Q2 fiscal 2026, the company reported total revenue of $57.1 million, a 22.3% increase or $10.4 million compared to the prior year, primarily driven by increased revenue from company-owned salons due to the Alline acquisition [12] - Adjusted EBITDA for Q2 was $8 million, an increase of $900,000 year-over-year, reflecting improved G&A discipline and contributions from the company-owned salon portfolio [2][15] - GAAP operating income increased by 13% to $6.2 million compared to $5.5 million in the year-ago quarter, driven by contributions from company-owned salons and cost management [11][13] Business Line Data and Key Metrics Changes - Supercuts achieved same-store sales growth of 2% year-to-date, while consolidated same-store sales increased by 0.4% [3][4] - The company-owned salon segment reported a sales growth of 4.3% for Q2, benefiting from the Alline acquisition [4] - Franchise segment adjusted EBITDA was $6.2 million, a decrease of $173,000 compared to the prior year, primarily due to lower royalties and non-cash fees [16] Market Data and Key Metrics Changes - The company experienced a net decrease of 374 franchise locations compared to the previous year, with closures primarily involving underperforming stores [12][13] - The gap in sales between underperforming stores and top-performing units was approximately $350,000, indicating potential for profitability enhancement [13] Company Strategy and Development Direction - The company is focused on building a more durable and disciplined organization, emphasizing cash generation, financial performance, and long-term value creation [2] - Key strategic priorities include stabilizing traffic, increasing franchisee adoption and compliance, and enhancing customer digital interaction through technology [4][9] - The company is leveraging AI for labor optimization and improving operational efficiency across its brands [8][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged traffic as a significant challenge impacting top-line performance, with a focus on sustainable improvements [3][9] - The company is encouraged by progress in profitability, cash generation, and organizational focus, which supports confidence in future growth [9][22] - Management is actively exploring refinancing options for existing debt as part of their financial strategy [21] Other Important Information - The company generated $1.5 million of unrestricted cash from operations in Q2, reflecting improved cash management [3] - As of December 31, 2025, the company had $27.4 million in available liquidity, including $18.4 million in unrestricted cash [19][20] Q&A Session Summary Question: What initiatives are in place to improve performance at Alline stores? - Management highlighted three components: refinement of the pay plan, pricing adjustments, and labor optimization using AI to better align staffing with sales patterns [24][25][26] Question: Can you confirm the reduction in store closures compared to last fiscal year? - Management confirmed that closures are expected to be about 50% lower than the previous fiscal year, indicating a positive trend [29][30][32] Question: What insights are being gained from potential replacement lenders regarding refinancing? - Management stated that initial conversations are ongoing, but specific rates or terms cannot be disclosed at this time [35] Question: What strategies are being implemented to drive foot traffic and customer retention? - Management emphasized the importance of loyalty programs, customer acquisition strategies, and data analysis to enhance customer retention and engagement [36][37] Question: Are there plans to add Cost Cutters locations? - Management indicated that while there isn't a broad effort to add locations, some conversions from existing businesses are occurring [39][40] Question: Why is loyalty adoption lagging in SmartStyle and Cost Cutters? - Management noted that loyalty programs were implemented later in these brands, but growth is being observed [41][42]

Regis (NasdaqGM:RGS) Q2 2026 Earnings call February 05, 2026 08:30 AM ET Speaker1Good morning, and thank you for joining the Regis second quarter 2026 earnings conference call. I am your host, Kersten Zupfer, Executive Vice President and Chief Financial Officer. I am joined today by our interim Chief Executive Officer, Jim Lain. All participants are in a listen-only mode, and this conference is being recorded. I would like to remind everyone that the language on forward-looking statements included in our ea ...

MINNEAPOLIS--(BUSINESS WIRE)--Regis Corporation (NasdaqGM: RGS), a leader in the haircare industry, today announced financial results for the second fiscal quarter ended December 31, 2025. Jim Lain, Regis Corporation's Interim President and Chief Executive Officer, commented, "Our second quarter results demonstrate improved execution and continued momentum, with same-store sales increasing 2.0% at Supercuts and 4.3% at company-owned salons. We delivered year-over-year improvements in operating. ...

Company Operations - As of December 31, 2025, Regis Corporation operated 3,829 locations, including 3,551 franchised salons and 278 company-owned salons[109]. Financial Performance - System-wide revenue for the three months ended December 31, 2025, was $260.8 million, a decrease of 4.8% from $274.1 million in the same period of 2024[114]. - Total system-wide same-store sales decreased by 0.1% for the three months ended December 31, 2025, compared to a decrease of 1.6% in the same period of 2024[114]. - Company-owned salon revenue increased by $15.7 million, or 448.6%, from $3.5 million to $19.2 million for the three months ended December 31, 2025, due to the Alline acquisition[125]. - Franchise revenue decreased by $5.4 million and $11.8 million during the three and six months ended December 31, 2025, primarily due to a decrease in franchise salon count[141]. - Franchise adjusted EBITDA totaled $6.2 million and $12.6 million for the three and six months ended December 31, 2025, reflecting a decrease of $0.2 million and $1.8 million, respectively[142]. - Company-owned salon revenue increased by $15.7 million and $35.2 million during the three and six months ended December 31, 2025, primarily due to the Alline acquisition[145]. - Company-owned salon adjusted EBITDA improved by $1.1 million and $2.9 million for the three and six months ended December 31, 2025, respectively[146]. Expenses and Liabilities - Royalties decreased by $1.2 million, or 8.1%, during the three months ended December 31, 2025, primarily due to a decrease in franchise salon count[121]. - General and administrative expenses decreased by $0.9 million, or 8.0%, during the three months ended December 31, 2025, primarily due to lower broker fees and severance[126]. - Rent expense increased by $1.5 million, or 71.4%, during the three months ended December 31, 2025, due to expenses associated with salons from the Alline acquisition[127]. - Company-owned salon expenses increased by $11.8 million, or 621.1%, from $1.9 million to $13.7 million for the three months ended December 31, 2025, primarily due to the Alline acquisition[130]. - Depreciation and amortization increased by $0.3 million, or 60.0%, during the three months ended December 31, 2025, due to assets acquired in the Alline acquisition[131]. - Interest expense increased by $0.5 million and $0.8 million for the three and six months ended December 31, 2025, respectively, due to higher debt outstanding compared to the prior year[133]. - The company recognized a $1.0 million gain on earn-out liability related to the Alline acquisition during the six months ended December 31, 2025[134]. Cash Flow and Capitalization - As of December 31, 2025, cash and cash equivalents were $18.4 million, with $17.6 million in the United States and $0.8 million in Canada[151]. - Cash provided by operating activities was $3.9 million for the six months ended December 31, 2025, compared to $0.8 million in the prior year[155]. - The company's debt to capitalization ratio was 40.0% as of December 31, 2025, compared to 40.3% as of June 30, 2025[159]. - The company has $54.6 million remaining under the approved stock repurchase program as of December 31, 2025[160]. Market Risks and Strategic Considerations - The company is exposed to market risks from changes in interest rates and foreign currency exchange rates, with no material changes reported since the last annual report[164]. - Forward-looking statements reflect management's best judgment but are subject to numerous risks and uncertainties that could materially affect actual results[162]. - The company emphasizes the importance of maintaining satisfactory relationships with key partners, such as Walmart, to drive business success[162]. - There is a reliance on franchise royalties and the overall success of franchisees' salons, which are critical for revenue generation[162]. - The company faces challenges in attracting, training, and retaining talented stylists and salon leaders, impacting operational efficiency[162]. - Data security and privacy compliance are highlighted as significant concerns, particularly regarding the protection of sensitive information[162]. - The company is focused on implementing cost reduction initiatives to achieve expected cost savings and maintain competitiveness[162]. - The ability to generate sufficient cash flow to meet debt service obligations is a key financial consideration for the company[162]. - The company is currently undergoing a search for a new CEO, which is crucial for future leadership and strategic direction[162]. - Potential liabilities related to the employee retention credit received by Alline may pose financial risks[162].

MINNEAPOLIS--(BUSINESS WIRE)--Regis Corporation (NasdaqGM:RGS), a leader in the haircare industry, will issue financial results for the second fiscal quarter ended December 31, 2025, before the market opens on February 5, 2026. Following the release, the Company will host a presentation via webcast for investors beginning at 7:30 a.m. central time to discuss its corporate developments and financial performance. To participate in the live webcast, interested parties may register here or register by logging i ...

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Financial Data and Key Metrics Changes - For the first quarter of fiscal 2026, consolidated same-store sales increased by 0.9%, driven by pricing actions and improved execution at the salon level [4] - Adjusted EBITDA for the first fiscal quarter was $8 million, up from $7.6 million a year ago, reflecting a $400,000 improvement [4][14] - Total first quarter revenue was $59 million, an increase of 28% or $12.9 million compared to the prior year [11] - GAAP operating income increased to $5.9 million, up from $2.1 million in the year-ago quarter [13] - The company generated $2.3 million in positive operating cash flow, a $3.6 million improvement versus last year's first quarter [4][16] Business Line Data and Key Metrics Changes - Same-store sales for Supercuts were up 2.5% for the first fiscal quarter, with loyalty program participation growing from 36% to 40% [4] - Adjusted EBITDA for the franchise segment was $6.4 million, a decrease of $1.6 million compared to the prior year quarter [15] - Adjusted EBITDA for the company-owned salon segment improved by $1.9 million year-over-year to $1.6 million for the quarter [15] Market Data and Key Metrics Changes - The company experienced a net decrease of 757 franchise locations compared to the previous year, with approximately 300 related to the Align salons that converted from franchise to company-owned [12] - The performance gap between closed stores and top-performing units was approximately $350,000, indicating strong potential within the system [12] Company Strategy and Development Direction - The company is focused on the holistic transformation of the Supercuts brand and optimizing sales and profitability in its company-owned salon portfolio [3] - Key initiatives include enhancing operational performance, reinforcing brand leadership, and driving technology and digital acceleration across the business [8] - The company is piloting brand-specific initiatives to strengthen performance across its portfolio [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the progress made in improving profitability and generating positive cash flow [9] - The company anticipates a meaningful increase in unrestricted cash generated from core operations compared to fiscal year 2025 [17] - Management is encouraged by the signals that their actions are taking hold, indicating a positive trajectory for the company [10] Other Important Information - The company expects G&A expenses to be in the range of $40 million to $43 million for the year, including G&A associated with the Align transaction [37] - As of September 30, 2025, the company had $25.5 million of available liquidity and outstanding debt of $124.8 million [19][20] Q&A Session Summary Question: Can you provide more details about pricing actions and their impact on traffic? - Management indicated that franchisees have begun to take further pricing actions based on competitive pricing surveys, with no significant changes in traffic trends observed [23][24] Question: Can you talk about traffic trends at Supercuts and Smart Style? - Management noted continued improvements in traffic at Supercuts, while acknowledging opportunities for improvement at Smart Style [26] Question: Regarding store closures, should we expect a reduction in closures this year? - Management confirmed that closures are expected to be reduced by half compared to previous years, with no guidance on specific numbers [31] Question: Can you provide insight into G&A for this year? - Management expects G&A to be in the range of $40 million to $43 million, including G&A associated with the Align transaction [37] Question: What is the status of the CEO search? - Management indicated that a decision on the CEO search is expected in the coming months, with the interim CEO actively engaged in the process [42]