Regis Corporation

Fiscal 2026 consolidated revenue was $224.5 million, up $14.4 million year over year; adjusted EBITDA was $32.8 million, up $1.2 million; operating income was $24.4 million versus $19.9 million; and unrestricted cash from operations was $13.5 million versus $5.4 million. Fiscal 2026 adjusted diluted EPS was $2.70 versus $2.85, and adjusted net income was $7.8 million versus $7.6 million. In the fourth quarter, revenue was $56 million, down $4.4 million or 7.3%; operating income was $6.6 million; consolidated adjusted EBITDA was $9.2 million versus $9.7 million; and adjusted net income was $3 million versus $2 million. Fourth-quarter net income was $4.4 million or $1.51 per diluted share, compared with $116.5 million or $42.58 per diluted share a year ago, with the comparison distorted by the prior-year $115.5 million tax benefit. Full-year same-store sales increased 0.9%, with Supercuts up 3%; fourth-quarter consolidated same-store sales were up 0.1% and Supercuts was up 2.6%. Balance-sheet figures included $26 million of unrestricted cash and cash equivalents, approximately $128 million of funded debt, and net funded debt of approximately $102.2 million, or about 3.1x adjusted EBITDA. Management expects the annual excess cash flow sweep in September to reduce cash and debt by approximately $7 million to $8 million, and said fiscal 2027 closures should not be materially different from fiscal 2026.

Susan Lintonsmith framed fiscal 2026 as a year of strengthening the foundation, with profitable growth and consistent cash generation, and said the company is moving from stabilization toward sustainable growth in fiscal 2027. She emphasized three priorities: strengthening brands, driving growth through traffic, and improving salon portfolio health while mitigating closures. Much of her commentary focused on Supercuts, where she said the new marketing campaign, digital changes and training investments are moving from planning to execution.

Kersten Zupfer highlighted the financial progress: adjusted EBITDA rose to $32.8 million in fiscal 2026, unrestricted cash from operations increased to $13.5 million, and total G&A declined, reflecting cost discipline. She also pointed to $26 million of unrestricted cash, approximately $128 million of funded debt, and net funded debt of approximately $102.2 million, or about 3.1x adjusted EBITDA, while noting the planned $7 million to $8 million debt-and-cash reduction from the annual sweep. She said the refinancing process is active, that the company has more than $450 million of NOLs, and that management wants terms that create meaningful value without sacrificing long-term value.

Analysts asked whether Supercuts’ positive same-store sales were driven more by pricing or traffic; management said the growth came primarily from average ticket, though traffic improved and was down only about 1 point. Questions also focused on closures and lease liabilities: management reiterated that fiscal 2027 closures should be similar to fiscal 2026, with fewer company-owned closures, and said lease liabilities are falling both because of closures and because franchisees are taking over leases. On refinancing, management declined to discuss structure details such as a rights offering but said all options are being evaluated, alongside the company’s more than $450 million of NOLs.