Regis (US:RGS) Businesswireยท2025-11-12 11:30Core Insights - Regis Corporation reported a strong start to fiscal 2026 with growth in same-store sales and improved profitability, marking the fourth consecutive quarter of positive cash from operations [2][3][5] Financial Performance - Consolidated revenue for Q1 fiscal 2026 was $59.0 million, an increase of $12.9 million from $46.1 million in Q1 fiscal 2025, driven by increased company-owned salon revenue from the Alline Acquisition [4][5][7] - System-wide same-store sales increased by 0.9%, with Supercuts specifically showing a 2.5% increase [4][5] - Operating income rose to $5.9 million from $2.1 million year-over-year, reflecting improved operational performance [5][8] - Cash from operations improved to $2.3 million, a $3.6 million increase from the previous year [5][21] - Net income for the quarter 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 [10][11] Segment Performance - Franchise revenue decreased by $6.6 million, or 14.6%, primarily due to lower non-margin franchise rental income and fewer franchise salons [12][14] - Company-owned salon revenue surged to $20.2 million, up from $0.8 million, attributed to the increase in salon count from the Alline Acquisition [17][18] - Adjusted EBITDA for the quarter was $8.0 million, an increase from $7.6 million in the prior year [11][39] Operational Highlights - Loyalty program participation increased to 40%, indicating stronger customer engagement [3] - The number of total franchise salons decreased to 3,593 from 4,350, reflecting a strategic shift in the franchise model [12][32] - Company-owned salons accounted for 7.4% of total salons, with 286 locations [32] Balance Sheet and Cash Flow - As of September 30, 2025, the company had $16.6 million in cash and cash equivalents and $124.8 million in outstanding borrowings [20][27] - Total assets were reported at $592.1 million, with total liabilities at $404.6 million [27]