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] - Cash From Operations was $2.3 million, a $3.6 million improvement compared to a use of cash by operations of $1.3 million in the prior year [16][17] 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][5] - Adjusted EBITDA for the Company-Owned Salon Segment improved by $1.9 million year-over-year to $1.6 million for the quarter [15] - Adjusted EBITDA for the franchise segment decreased by $1.6 million to $6.4 million, primarily due to lower royalties and fees [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 has received questions regarding the potential to refinance existing debt, indicating that current economics do not support such a move in the near term [21] - The company expects G&A expenses to be in the range of $40 million-$43 million for the year, including G&A associated with the Align transaction [37] 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 a competitive pricing survey, with no significant changes in traffic trends observed [23][24] Question: Can you talk about traffic trends at Supercuts and Smart Style? - Management noted improvements in traffic trends 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 have reduced by half compared to the previous year, but did not provide specific guidance on future closures [31] Question: Can you provide insight into G&A for this year? - Management expects G&A to be in the range of $40 million-$43 million, including G&A associated with the Align transaction [37] Question: What is the status of the CEO search? - Management anticipates a decision on the CEO search in the coming months, with the interim CEO actively engaged in the process [42]

Core Viewpoint - Roche's Accu-Chek SmartGuide continuous glucose monitoring (CGM) system has received CE certification, integrating with the mySugr app to enhance clinical application potential through digital integration [2][4]. Group 1: Product Development and Features - SmartGuide was first introduced at the 2024 ATTD conference and received CE certification in July 2024, featuring AI-driven predictive capabilities for blood glucose monitoring [4][5]. - The integration with the mySugr app allows users to view glucose trends, dietary records, and insulin dosage calculations on a single platform, facilitating comprehensive diabetes management [4][9]. - SmartGuide transitions from a mere monitoring tool to a predictive and decision-support platform, emphasizing proactive management of blood glucose levels [10][27]. Group 2: Clinical and Research Data - Roche has published accuracy studies and real-world evidence (RWE) for SmartGuide, showing a mean absolute relative deviation (MARD) of 9.2% in a study involving 48 diabetes patients [13]. - The Night Low Predict feature reduces the occurrence of nighttime hypoglycemia by approximately 20% and severe hypoglycemia by about 31% [14]. - User-reported diabetes distress has decreased, indicating improved long-term adherence and reduced psychological burden [16]. Group 3: Market Overview - The global CGM market is projected to reach approximately $11-13.6 billion in 2024-2025, with a compound annual growth rate (CAGR) of around 16%, expected to exceed $45 billion by 2034 [21]. - The United States is the largest single market, with an estimated size of $4.9 billion in 2024, continuing to grow rapidly over the next decade [22]. Group 4: Competitive Landscape - SmartGuide differentiates itself by emphasizing predictive capabilities and system integration, contrasting with traditional CGMs that focus on real-time monitoring [25][26]. - The competitive landscape includes players like Abbott, Dexcom, and Medtronic, each with unique strengths in cost, accuracy, and integrated systems [25][26]. - The integration of digital health management is becoming a core competitive advantage, positioning SmartGuide as a central hub for patient management [27]. Group 5: Future Trends - The CGM market is entering a second phase of competition, where differentiation will rely on AI algorithms, digital ecosystem integration, and long-term adherence [28]. - Roche's strategy indicates a shift towards predictive risk management, which may become a key clinical value point recognized by payers and regulatory bodies [28].