Regis (US:RGS)2025-05-13 10:02Financial Performance - Consolidated revenue for Q3 2025 was $57.0 million, a 15.9% increase from $49.2 million in Q3 2024[10] - Operating income improved to $5.0 million, a 22.9% increase compared to $4.1 million in Q3 2024[14] - Adjusted EBITDA for Q3 2025 was $7.1 million, up 31.5% from $5.4 million in the same quarter last year[20] - Net income for Q3 2025 was $0.3 million, a significant improvement from a net loss of $2.3 million in Q3 2024[18] - Adjusted net income for Q3 2025 was $1.3 million, compared to an adjusted net loss of $1.4 million in the same period last year[6] - Total revenue for Q3 2025 was $56.96 million, compared to $49.18 million in Q3 2024, reflecting a year-over-year increase of approximately 15.5%[37] - The company reported a net income of $250,000 for Q3 2025, compared to a net loss of $2.33 million in Q3 2024[37] - Net income for the nine months ended March 31, 2025, was $7,042,000, a significant improvement from a net loss of $141,000 in the same period of 2024[40] Cash Flow and Liquidity - Cash from operations reached $6.2 million, an increase of $6.5 million from $(0.3) million in Q3 2024, marking the second consecutive quarter of positive cash flow[6] - The company ended Q3 2025 with $13.3 million in cash and cash equivalents, and $127.4 million in outstanding borrowings[29] - Net cash provided by operating activities for the nine months ended March 31, 2025, totaled $7.0 million, an improvement of $14.1 million from the prior year[29] - Cash provided by operating activities for the nine months ended March 31, 2025, was $6,986,000, compared to cash used of $7,130,000 in the same period of 2024[40] - The company reported a total cash balance of $32,508,000 at the end of the period, up from $14,816,000 at the end of the same period in 2024[40] - Net cash provided by operating activities for Q3 2025 was $6,198,000, a significant improvement from a cash outflow of $280,000 in Q3 2024[70] - The net cash provided by operating activities excluding Ad Fund for Q3 2025 was $3,829,000, compared to $411,000 in Q3 2024[70] Revenue Breakdown - Franchise revenue for Q3 2025 was $38.0 million, a decrease of 20.7% compared to the prior-year quarter[22] - The company-owned salon revenue for Q3 2025 was $19.0 million, a substantial increase from $1.3 million in Q3 2024[26] - Company-owned salon revenue for Q3 2025 was $19.0 million, an increase of $17.7 million year-over-year[27] - Year-to-date revenue for the company-owned salon segment reached $23.2 million, up $18.2 million compared to the previous year[27] - Adjusted franchise revenue for Q3 2025 was $15,935,000, with franchise adjusted EBITDA as a percent of adjusted franchise revenue at 39.4%, up from 33.5% in Q3 2024[66] Operational Metrics - Same-store sales for Supercuts increased by 4.5% in April 2025, following a 1.1% increase in Q3 2025 compared to the previous year[3] - Year-to-date consolidated revenue declined by 2.5% to $149.7 million, primarily due to lower non-margin franchise rental income[11] - System-wide same-store sales for the total portfolio decreased by 1.3% for the nine months ended March 31, 2025, compared to an increase of 1.4% in the same period of 2024[43] - Total North American salons decreased from 4,295 as of June 30, 2024, to 3,681 as of March 31, 2025, reflecting a decline of approximately 14.3%[45] - The total number of franchise salons decreased from 4,391 as of June 30, 2024, to 3,776 as of March 31, 2025, a decline of approximately 14%[45] - The company-owned salons increased from 17 as of June 30, 2024, to 311 as of March 31, 2025, indicating a significant expansion in company-owned locations[45] Adjusted Metrics - Adjusted EBITDA for company-owned salons improved by $1.6 million year-over-year to $843,000 in Q3 2025[28] - Year-to-date adjusted EBITDA for company-owned salons increased by $2.8 million year-over-year to $1.2 million[28] - Adjusted EBITDA for the nine months ended March 31, 2025, was $21,902,000, compared to $19,740,000 for the same period in 2024, representing an increase of 10.9%[54] - Adjusted operating income for the nine months ended March 31, 2025, was $19,621,000, an increase from $18,364,000 in the same period of 2024[68] - Franchise adjusted EBITDA for Q3 2025 was $6,282,000, representing 16.5% of GAAP franchise revenue, compared to 12.8% in Q3 2024[66] - Franchise adjusted EBITDA for the nine months ended March 31, 2025, was $20,683,000, down from $21,346,000 in the same period of 2024[66] Capital Expenditures and Liabilities - The company incurred capital expenditures of $769,000 for the nine months ended March 31, 2025, compared to $372,000 in the same period of 2024[40] - Total assets as of March 31, 2025, were $511.25 million, down from $530.50 million as of June 30, 2024[36] - The company’s total liabilities decreased to $442.60 million as of March 31, 2025, from $473.71 million as of June 30, 2024[36] Stock-Based Compensation - Stock-based compensation for the nine months ended March 31, 2025, was $2,043,000, compared to $1,201,000 in the same period of 2024[68] Other Financial Adjustments - The change in Ad Fund Cash for Q3 2025 was a negative $2,369,000, contrasting with a positive $691,000 in Q3 2024[70] - Franchise rental income adjustments for the nine months ended March 31, 2025, totaled $(58,524,000), down from $(72,534,000) in the same period of 2024[66]