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]

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]

Financial Data and Key Metrics Changes - For Q1 fiscal 2026, total revenue was $59 million, an increase of 28% or $12.9 million compared to the prior year, primarily driven by increased revenue from company-owned salons and a same-store sales increase of 0.9% [10][11] - Adjusted EBITDA for the first quarter was $8 million, up from $7.6 million a year ago, reflecting a 4.3% improvement [14] - Operating income increased by 177%, reaching $5.9 million compared to $2.1 million in the year-ago quarter [10][12] - 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 increased by 2.5% in Q1, with loyalty program participation growing from 36% to 40% [4][5] - Adjusted EBITDA for the franchise segment was $6.4 million, a decrease of $1.6 million compared to the prior year, primarily due to lower royalties and fees [15] - Adjusted EBITDA for the company-owned salon segment improved by $1.9 million year-over-year to $1.6 million, driven by an increased number of company-owned salons [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 of these related to the Align salons that converted from franchise to company-owned [11] - The performance gap between closed stores and top-performing units was approximately $350,000, indicating strong potential within the system [11] 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][4] - Key initiatives include enhancing operational performance, reinforcing brand leadership, and driving technology and digital acceleration across the business [7][8] - The company plans to pilot new digital interactions on its website and app to improve guest experience [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the progress made in improving profitability and generating positive cash flow, indicating a solid start to fiscal 2026 [8][21] - The company anticipates a meaningful increase in unrestricted cash generated from core operations compared to fiscal year 2025, supported by operational strength and a full year of acquired company-owned salon results [17][18] Other Important Information - The company has $25.5 million of available liquidity, including $16.6 million in unrestricted cash and cash equivalents [19] - The board is evaluating prospects for a permanent CEO, with a decision expected in the coming months [40] 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 pricing actions based on a competitive pricing survey, with no significant changes in traffic trends observed across the country [22][23] Question: Can you talk about traffic trends at Supercuts and Smart Style? - Management noted improvements in traffic at Supercuts, while acknowledging opportunities for growth in the Smart Style brand [25] 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 54 locations closed in Q1 [30] 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 [35] Question: What is the status of the CEO search? - Management is currently in an interim role, with the board evaluating prospects and a decision expected in the coming months [40]

Core 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]

Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported total revenue of $210 million, an increase of 3.5% or $7.2 million compared to the prior year, primarily driven by increased revenue from company-owned salons due to the acquisition of Align [20][21] - The fourth quarter revenue was $60.4 million, a 22.3% increase or $11 million compared to the prior year, mainly due to increased revenue from company-owned salons and a same-store sales growth of 1.3% [14][15] - Operating income for the fourth quarter was $7.3 million, up from $4.6 million in the year-ago quarter, reflecting a 58.7% increase [16][18] - Adjusted EBITDA for the fourth quarter was $9.7 million, a 24.8% increase compared to $7.8 million in the prior year quarter [19] Business Line Data and Key Metrics Changes - The company-owned salon segment saw improved performance, with adjusted EBITDA increasing by $700,000 year-over-year to $2 million for the quarter, attributed to the increased number of company-owned salons and closure of unprofitable salons [20] - The franchise segment's adjusted EBITDA increased to $7.7 million in the quarter, a $1.2 million increase compared to the prior year, driven by lower general and administrative expenses [19][20] Market Data and Key Metrics Changes - The professional hair salon industry remains resilient, driven by recurring consumer demand and a focus on self-care and wellness, with steady growth particularly in the value-focused segment [8] - The company noted a strong correlation between salons with higher online booking percentages and business performance, indicating the effectiveness of digital channels [8][9] Company Strategy and Development Direction - The company is focused on two primary priorities: the holistic transformation of the Supercuts brand and optimizing sales and profitability in company-owned salons [4][13] - A comprehensive brand research study for Supercuts has been completed to enhance brand relevance and customer experience [9][10] - The company is also working on a new salon prototype aimed at improving efficiency and customer experience, with plans for pilot launches in early 2026 [11][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's operational improvements and the potential of the company-owned salon portfolio, emphasizing the importance of the new stylist pay model and ongoing pilots [35] - The company anticipates a meaningful increase in unrestricted cash generation from core operations in fiscal year 2026, driven by operational strength and a full year of Align results [24][25] Other Important Information - The company reported a net decrease of 744 franchise locations compared to the previous year, with approximately 300 of these relating to the Align salons that converted from franchise to company-owned [15] - As of June 30, 2025, the company had $25.9 million of available liquidity, including $17 million in unrestricted cash [26] Q&A Session Summary Question: Can you talk more about the Forum 3 initiatives? - Management highlighted Forum 3's role in modernizing the Supercuts brand and enhancing omnichannel growth, including the success of the Supercuts Rewards loyalty program [30][31] Question: How would the new salon prototype be financed and implemented? - Management indicated that they are exploring multiple financing paths for the new salon prototype, with several franchisees ready to remodel once the prototype is finalized [34] Question: Do you think there's more upside to the Align results? - Management expressed optimism about the company-owned salon portfolio and noted that operational improvements are in the early stages [35] Question: What are your plans on refinancing the debt? - Management confirmed that discussions on refinancing the debt are ongoing, with a focus on strengthening financial positions to secure better terms [40]