Regis (US:RGS)2025-11-12 11:17Revenue Performance - Q1 2026 consolidated revenue increased to $59.0 million, up 27.9% from $46.1 million in Q1 2025, driven by higher company-owned salon revenue from the Alline Acquisition[3][5] - Total revenue for the three months ended September 30, 2025, was $58,958,000, a 27.9% increase from $46,060,000 in the same period of 2024[26] Same-Store Sales - Same-store sales for Supercuts rose by 2.5%, while consolidated same-store sales increased by 0.9%[3][4] - System-wide same-store sales increased by 1.7% in service but decreased by 10.6% in retail for the three months ended September 30, 2025, compared to the same period in 2024[31] Income and Profitability - Operating income improved to $5.9 million, a $3.8 million increase compared to $2.1 million in Q1 2025[6] - Net income for Q1 2026 was $1.4 million, compared to a net loss of $0.9 million in the same period last year, resulting in diluted EPS of $0.49 versus $(0.36)[8] - Operating income increased to $5,921,000 for the three months ended September 30, 2025, compared to $2,134,000 in 2024, reflecting a significant improvement in operational efficiency[26] - Net income for the three months ended September 30, 2025, was $1,356,000, compared to a net loss of $853,000 in the same period of 2024, indicating a turnaround in profitability[26] EBITDA - Adjusted EBITDA for Q1 2026 was $8.0 million, an increase of $0.4 million from $7.6 million in Q1 2025[9] - Adjusted EBITDA for Q3 2025 was $7,965,000, an increase from $7,637,000 in Q3 2024[42] Franchise Revenue - Franchise revenue decreased by $6.6 million, or 14.6%, to $38.7 million, primarily due to lower royalties and fewer franchise salons[12] - GAAP franchise revenue decreased to $38,747,000 in Q3 2025 from $45,275,000 in Q3 2024, a drop of approximately 14.1%[46] - Adjusted franchise revenue for Q3 2025 was $15,820,000, down from $17,998,000 in Q3 2024, reflecting a decrease of 12.1%[46] Cash Flow and Liquidity - Cash from operations improved to $2.3 million, a $3.6 million increase from $(1.3) million in Q1 2025[19] - The company ended Q1 2026 with $16.6 million in cash and cash equivalents and total liquidity of $25.5 million[19] - Cash and cash equivalents at the end of the period increased to $35,767,000 from $22,441,000 in the same period of 2024, showing improved liquidity[28] - Total current assets rose to $51,404,000 as of September 30, 2025, compared to $50,484,000 as of June 30, 2025, indicating a positive trend in asset management[25] Salon Count and Operations - Company-owned salon revenue increased to $20.2 million, up from $19.4 million, attributed to an increase in salon count from the Alline Acquisition[17] - The total number of franchise salons decreased from 3,647 in June 2025 to 3,593 in September 2025, reflecting a reduction in overall salon locations[34] - The company-owned salon revenue surged to $20,211,000 for the three months ended September 30, 2025, compared to $785,000 in the same period of 2024, highlighting strong growth in this segment[26] Earnings Per Share - Basic net income per share for continuing operations was $0.56 for the three months ended September 30, 2025, compared to a loss of $0.77 in the same period of 2024, demonstrating significant improvement in earnings per share[26] - Reported diluted earnings per share for Q3 2025 was $0.49, compared to a loss of $0.36 per share in Q3 2024[51] - Adjusted earnings per share for Q3 2025 was $0.50, down from $0.93 in Q3 2024, a decrease of 46.2%[51] Expenses - Reported general and administrative expenses decreased to $11,351,000 in Q3 2025 from $14,034,000 in Q3 2024, a reduction of 19.1%[53] - Stock-based compensation expense for Q3 2025 was $629,000, down from $1,430,000 in Q3 2024, a decrease of 56%[53]