{"success":true,"data":{"pressRelease":{"id":"33000","rtpr_id":"nBwpf970a","ticker":"RGS","exchange":"NASDAQ","all_tickers":["RGS"],"title":"Regis Corporation Reports Financial Results for the Third Fiscal Quarter 2026","author":"Business Wire","published_at":"2026-05-13T10:00:00.622Z","article_body":"Regis Corporation Reports Financial Results for the Third Fiscal Quarter 2026\n\nStrong Execution Drives Improved Profitability\n\nQ3 Consolidated Same-Store Sales Up 2.6%, Supercuts Up 5.0%, Company-Owned\nSalons Up 9.6%\n\nCash Flow Strengthens Through Disciplined Cost Management and Operational\nImprovements\n\nRegis Corporation (NasdaqGM: RGS), a leader in the haircare industry, today\nannounced financial results for the third fiscal quarter ended March 31, 2026.\n\nSusan Lintonsmith, Regis Corporation's President and Chief Executive Officer,\ncommented, “Our third quarter results reflect another quarter of solid\nexecution, demonstrated by increasing profitability and solid cash flow\ngeneration. We are encouraged by the momentum we are building, particularly at\nSupercuts and our company-owned salons, which delivered same-store sales\ngrowth of 5.0% and 9.6%, respectively. This performance was supported by\nticket strength and favorable seasonal conditions.”\n\nLintonsmith continued, “Sustained value creation will ultimately be driven\nby higher salon traffic across the system. As we execute our strategy, we are\nfocused on a set of initiatives designed to drive that outcome, including\nconsistent execution of brand standards, optimization of our operating model\nand planned deployment of technology to deliver a consistent and more elevated\nguest experience. We are advancing these efforts through investments in the\ncompany-owned salon business, training, targeted marketing programs, and\nloyalty programs. By directing resources to the areas with the greatest\npotential impact on performance, we are positioning the business to unlock the\nnext phase of value creation across our portfolio.\"\n\n“Disciplined capital management remains a core priority as we focus on\nreducing our debt service and delivering long-term shareholder value,” said\nKersten Zupfer, Executive Vice President and Chief Financial Officer. “We\ncontinue to work with experienced advisors and potential partners to evaluate\nrefinancing alternatives for our existing credit agreement.”\n\nFinancial Highlights:\n\nThird quarter fiscal 2026 compared to third quarter fiscal 2025:\n\n\n * Consolidated revenue of $52.4 million versus $57.0 million, a decrease of $4.6\nmillion; driven primarily by lower royalties, fees, and non-margin franchise\nrental income\n\n * Same-store sales: Supercuts: 5.0%; Company-owned: 9.6%; Consolidated: 2.6%\n\n * Operating income of $5.7 million versus $5.0 million\n\n * Sixth consecutive quarter of positive cash from operations\n\n * Net income of $0.7 million versus $0.3 million\n\n\n* Diluted EPS of $0.26 versus $0.08\n\n\n\n\n * Adjusted net income of $1.6 million versus $1.3 million\n\n\n* Adjusted diluted EPS of $0.57 versus $0.43\n\n\n\n\n * Adjusted EBITDA of $7.7 million versus $7.1 million\n\nYear-to-date fiscal 2026 compared to year-to-date fiscal 2025:\n\n\n * Consolidated revenue of $168.5 million versus $149.7 million, an increase of\n$18.8 million; driven by increased company-owned salon revenue as a result of\nthe Alline acquisition, partially offset by lower royalties, fees, and\nnon-margin franchise rental income\n\n * Same-store sales: Supercuts: 3.2%; Consolidated: 1.1%\n\n * Operating income of $17.8 million versus $12.7 million\n\n * Cash from operations of $8.9 million versus $7.0 million, an increase of $1.9\nmillion\n\n\n* $9.3 million of cash from operations excluding the effect of restricted cash\nad fund\n\n\n\n\n * Net income of $2.5 million versus $7.0 million, inclusive of $8.4 million of\nincome from discontinued operations in the prior year period\n\n\n* Diluted EPS of $0.89 versus $3.00, inclusive of $3.57 of income from\ndiscontinued operations\n\n\n\n\n * Adjusted net income of $4.7 million versus $5.6 million\n\n\n* Adjusted diluted EPS of $1.65 versus $1.97\n\n\n\n\n * Adjusted EBITDA of $23.6 million versus $21.9 million in prior year\n Third Quarter Fiscal Year 2026 Consolidated Results                                                                                                              \n                                                                                                                                                                  \n                                                                 Three Months Ended March 31,                         Nine Months Ended March 31,                 \n (Dollars in millions, except per share data)                    2026                        2025                     2026                     2025               \n                                                                                                                                                                  \n Consolidated revenue                                            $      52.4                 $      57.0              $     168.5              $     149.7        \n System-wide revenue (1)                                                261.1                       266.9                   796.6                    826.4        \n                                                                                                                                                                  \n System-wide same-store sales comps                                     2.6    %                    (1.1   )%               1.1    %                 (1.3   )%    \n                                                                                                                                                                  \n Operating income                                                $      5.7                  $      5.0               $     17.8               $     12.7         \n Income (loss) from continuing operations                               0.7                         0.3                     2.5                      (1.4   )     \n Diluted income (loss) per share from continuing operations             0.26                        0.08                    0.89                     (0.58  )     \n Income from discontinued operations                                    —                           —                       —                        8.4          \n Net income                                                             0.7                         0.3                     2.5                      7.0          \n Diluted earnings per share                                             0.26                        0.08                    0.89                     3.00         \n Adjusted EBITDA (2)(3)                                                 7.7                         7.1                     23.6                     21.9         \n Adjusted net income (2)                                                1.6                         1.3                     4.7                      5.6          \n Adjusted diluted net income per share (2)                              0.57                        0.43                    1.65                     1.97         \n\n ____________________                                                              \n (1)  Represents total sales within the system.                                    \n (2)  See GAAP to non-GAAP reconciliations within the attached section titled      \n      \"Non-GAAP Reconciliations.\"                                                  \n (3)  Total is a recalculation; line items calculated individually may not sum to  \n      total due to rounding.                                                       \n\n\nRevenue\n\nTotal consolidated revenue of $52.4 million in the third quarter of 2026\ndeclined $4.6 million, driven primarily by lower royalties, fees, and\nnon-margin franchise rental income. Consolidated revenue of $168.5 million in\nthe year-to-date 2026 period improved $18.8 million, driven primarily by an\nincrease in company-owned salon revenue resulting from the Alline acquisition\non December 19, 2024, partially offset by lower royalties, fees, and\nnon-margin franchise rental income.\n\nOperating Income\n\nRegis reported third quarter 2026 operating income of $5.7 million, an\nimprovement of $0.7 million compared to $5.0 million in the third quarter of\n2025. Regis reported year-to-date 2026 operating income of $17.8 million, an\nimprovement of $5.1 million compared to $12.7 million in the year-to-date 2025\nperiod. The year-over-year improvement in operating income was primarily\ndriven by operating income from the Alline salons and reductions in general\nand administrative expenses, partially offset by lower royalties and fees.\n\nIncome (Loss) from Continuing Operations\n\nRegis reported third quarter 2026 net income from continuing operations of\n$0.7 million, or $0.26 per diluted share, compared to net income from\ncontinuing operations of $0.3 million, or $0.08 per diluted share, in the\nthird quarter of 2025. The Company reported year-to-date 2026 net income from\ncontinuing operations of $2.5 million, or $0.89 per diluted share, compared to\na net loss from continuing operations of $1.4 million, or $0.58 per share, in\nthe prior year period. The year-over-year increase was driven primarily by an\nincrease in company-owned salon revenue and reductions in general and\nadministrative expenses, partially offset by lower royalties and fees.\n\nNet Income\n\nThe Company reported third quarter 2026 net income of $0.7 million, or $0.26\nper diluted share, compared to net income of $0.3 million, or $0.08 per\ndiluted share, for the same period last year. The Company reported\nyear-to-date 2026 net income of $2.5 million, or $0.89 per diluted share,\ncompared to net income of $7.0 million, or $3.00 per diluted share, in 2025.\nThe higher income in the prior year-to-date period was driven primarily by\nincome from discontinued operations, which did not recur in the current\nyear-to-date period.\n\nAdjusted EBITDA\n\nThird quarter and year-to-date 2026 adjusted EBITDA of $7.7 million and $23.6\nmillion, respectively, improved $0.6 million and $1.7 million, compared to\nadjusted EBITDA of $7.1 million and $21.9 million in the same periods last\nyear. The improvement in both periods is primarily related to higher\ncompany-owned salon revenue and reductions in general and administrative\nexpenses, offset partially by lower franchise royalties and non-cash fee\nrecognition.\n\nThird Quarter Fiscal Year 2026 Segment Results\n Franchise                                                                                                                                                                                               \n                                                                                                                                                                                                         \n                                                               Three Months Ended March 31,                         Decrease            Nine Months Ended March 31,                     Decrease         \n                                                                                                                                                                              \n (Dollars in millions)                                         2026                        2025                                2026                  2025                     \n                                                                                                                                                                                                         \n Royalties                                                     $      13.2                 $      13.5              $    (0.3  )        $     40.9               $     44.0             $    (3.1   )    \n Fees                                                                 1.9                         2.4                    (0.5  )              5.4                      7.7                   (2.3   )    \n Advertising fund contributions                                       5.2                         5.2                    —                    16.1                     16.3                  (0.2   )    \n Franchise rental income                                              13.0                        16.9                   (3.9  )              47.6                     58.5                  (10.9  )    \n Total franchise revenue (1)                                   $      33.3                 $      38.0              $    (4.7  )        $     110.0              $     126.5            $    (16.5  )    \n                                                                                                                                                                                                         \n Franchise same-store sales comps                                     2.0    %                    (0.7   )%                                   0.8    %                 (1.1   )%                         \n                                                                                                                                                                                                         \n Franchise adjusted EBITDA                                     $      6.2                  $      6.3               $    (0.1  )        $     18.9               $     20.7             $    (1.8   )    \n as a percent of revenue (1)                                          18.7   %                    16.5   %                                    17.1   %                 16.3   %                          \n as a percent of adjusted revenue (2)                                 41.3   %                    39.4   %                                    40.7   %                 40.0   %                          \n                                                                                                                                                                                                         \n Total franchise salons                                               3,497                       3,776                  (279  )                                                                         \n as a percent of total franchise and company-owned salons             92.8   %                    92.4   %                                                                                               \n\n ____________________                                                                  \n (1)  Total is a recalculation; line items calculated individually may not             \n      recalculate due to rounding.                                                     \n (2)  Adjusted revenue excludes non-margin revenue. See GAAP to non-GAAP               \n      reconciliations within the attached section titled \"Non-GAAP Reconciliations.\"   \n\n\nFranchise Revenue\n\nThird quarter franchise revenue was $33.3 million, a $4.7 million, or 12.4%,\ndecrease compared to the prior year quarter. Year-to-date 2026 franchise\nrevenue was $110.0 million, a $16.5 million, or 13.0%, decrease compared to\nthe prior year period. Non-margin franchise rental income was the primary\ndriver of the decline due to franchisees signing their own leases and fewer\nfranchise salons in the current year partially as a result of the Alline\nacquisition.\n\nRoyalties were $13.2 million and $40.9 million, a $0.3 million and $3.1\nmillion, or 2.2% and 7.0%, decrease for the third quarter and year-to-date\n2026 periods, respectively, versus the same periods last year, due primarily\nto fewer franchise salons.\n\nFranchise Adjusted EBITDA\n\nThird quarter franchise adjusted EBITDA of $6.2 million declined $0.1 million.\nYear-to-date 2026 franchise adjusted EBITDA of $18.9 million declined $1.8\nmillion year-over-year. The declines primarily related to lower royalties and\nnon-cash fees in the current year period, offset partially by decreased\ngeneral and administrative expenses.\n Company-Owned Salons                                                                                                                                                                                   \n                                                                                                                                                                                                        \n                                                               Three Months Ended March 31,                         Increase              Nine Months Ended March 31,                   Increase        \n                                                                                                                    \n                                                                                   \n                                                                                                                    \n(Decrease)                                                                         \n                                                                                                                                                                              \n (Dollars in millions)                                         2026                        2025                                 2026                  2025                    \n                                                                                                                                                                                                        \n Total company-owned salon revenue                             $      19.1                 $      19.0              $     0.1             $     58.5              $     23.2            $    35.3       \n Company-owned same-store sales comps                                 9.6    %                    (6.8   )%                                     5.1   %                 (6.7  )%                        \n                                                                                                                                                                                                        \n Company-owned salon adjusted EBITDA                           $      1.4                  $      0.8               $     0.6             $     4.8               $     1.2             $    3.6        \n as a percent of revenue                                              7.3    %                    4.2    %                                      8.2   %                 5.2   %                         \n                                                                                                                                                                                                        \n Total company-owned salons                                           273                         311                     (38   )                                                                       \n as a percent of total franchise and company-owned salons             7.2    %                    7.6    %                                                                                              \n\n\nCompany-Owned Salon Revenue\n\nThird quarter revenue for the company-owned salon segment was $19.1 million, a\n$0.1 million increase compared to the prior year quarter, primarily driven by\nsame-store-sales growth, partially offset by the closure of underperforming\nsalons. Year-to-date 2026 revenue for the company-owned salon segment\nincreased $35.3 million versus the prior year to $58.5 million. The\nyear-over-year increase in revenue was primarily due to the impact of the\nAlline acquisition on December 19, 2024.\n\nCompany-Owned Salon Adjusted EBITDA\n\nThird quarter and year-to-date 2026 company-owned salon adjusted EBITDA\nimproved $0.6 million and $3.6 million, respectively, compared to the prior\nyear periods. The year-to-date improvement is due primarily to increased\ncontribution generated by the greater salon count as a result of the Alline\nacquisition.\n\nBalance Sheet and Cash Flow\n\nThe Company ended the third quarter of fiscal year 2026 with $22.9 million in\ncash and cash equivalents, $127.1 million in outstanding borrowings ($116.4\nmillion term loan, $9.7 million paid in kind interest, and $1.0 million\nrevolver draw) and available total liquidity of $31.9 million. Net cash\nprovided by operating activities for the nine months ended March 31, 2026,\ntotaled $8.9 million, an improvement of $1.9 million from the nine months\nended March 31, 2025, primarily due to higher operating income in the current\nyear period offset partially by cash accumulated in the ad fund in the prior\nyear.\n\nNon-GAAP Reconciliations\n\nFor GAAP to non-GAAP reconciliations, please refer to the attached section\ntitled \"Non-GAAP Reconciliations.\" A complete reconciliation of reported\nearnings to adjusted earnings is included in this press release.\n\nEarnings Webcast\n\nRegis Corporation will host a conference call via webcast discussing third\nquarter results today, May 13, 2026, at 7:30 a.m. Central time. Interested\nparties are invited to participate in the live webcast by registering for the\nevent at www.regiscorp.com/investor-relations.html\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.regiscorp.com%2Finvestor-relations.html&esheet=54534396&newsitemid=20260513113503&lan=en-US&anchor=www.regiscorp.com%2Finvestor-relations.html&index=1&md5=92990385d191aac78c0b3e92d99010e7)\n. A replay of the presentation will be available on our website at the same\nweb address.\n\nAbout Regis Corporation\n\nRegis Corporation (NasdaqGM:RGS) is a leader in the haircare industry. As of\nMarch 31, 2026, the Company franchised or owned 3,770 locations. Regis’\nfranchised and corporate locations operate under concepts such as\nSupercuts(®), SmartStyle(®), Cost Cutters(®), Roosters(®), and First\nChoice Haircutters(®). For additional information about the Company, please\nvisit the Investor Relations section of the corporate website at\nwww.regiscorp.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.regiscorp.com&esheet=54534396&newsitemid=20260513113503&lan=en-US&anchor=www.regiscorp.com&index=2&md5=fea2f4473d6d74bf0edd6fa49b0bcd22)\n.\n\nThis press release contains or may contain \"forward-looking statements\" within\nthe meaning of the federal securities laws, including statements concerning\nanticipated future events and expectations that are not historical facts.\nThese forward-looking statements are made pursuant to the safe harbor\nprovisions of the Private Securities Litigation Reform Act of 1995. The\nforward-looking statements in this document reflect management's best judgment\nat the time they are made, but all such statements are subject to numerous\nrisks and uncertainties, which could cause actual results to differ materially\nfrom those expressed in or implied by the statements herein. Such\nforward-looking statements are often identified herein by use of words\nincluding, but not limited to, \"may,\" \"will,\" \"believe,\" \"project,\"\n\"forecast,\" \"expect,\" \"estimate,\" \"anticipate,\" and \"plan.\" These\nuncertainties include a potential material adverse impact on our business and\nresults of operations as a result of changes in consumer shopping trends and\nchanges in manufacturer distribution channels; laws and regulations could\nrequire us to modify current business practices and incur increased costs\nincluding increases in minimum wages; changes in the general economic\nenvironment; changes in consumer tastes, hair product innovation, fashion\ntrends and consumer spending patterns; our ability to realize the anticipated\nbenefits of the Alline acquisition; reliance on franchise royalties and\noverall success of our franchisees’ salons; our salons' dependence on a\nthird-party supplier agreement for merchandise; our and our franchisees'\nability to attract, train and retain talented stylists and salon leaders; the\nsuccess of our franchisees, which operate independently; data security and\nprivacy compliance and our ability to manage cyber threats and protect the\nsecurity of potentially sensitive information about our guests, franchisees,\nemployees, vendors or Company information; the ability of the Company to\nmaintain a satisfactory relationship with Walmart; marketing efforts to drive\ntraffic to our franchisees' and company-owned salons; our ability to maintain\nand enhance the value of our brands; reliance on legacy information technology\nsystems; reliance on external vendors; the use of social media; the\neffectiveness of our enterprise risk management program; potential challenges\nwith the planning or implementation of our new enterprise resource planning\nsystem; our ability to minimize risks associated with owning and operating\nadditional salons; ability to generate sufficient cash flow to satisfy our\ndebt service obligations; compliance with covenants in our financing\narrangement; premature termination of agreements with our franchisees; the\ncontinued ability of the Company to implement cost reduction initiatives and\nachieve expected cost savings; continued ability to compete in our business\nmarkets; potential liabilities related to the employee retention credit\nreceived by Alline; reliance on our management team and other key personnel;\nthe ability to attract and retain key personnel; the continued ability to\nmaintain an effective system of internal control over financial reporting;\nchanges in tax exposure; the ability of our Tax Preservation Plan to protect\nthe future availability of the Company's tax assets; potential litigation and\nother legal or regulatory proceedings; or other factors not listed above.\nAdditional information concerning potential factors that could affect future\nfinancial results is set forth under Item 1A on Form 10-K. We undertake no\nobligation to publicly update or revise any forward-looking statements,\nwhether as a result of new information, future events or otherwise. However,\nyour attention is directed to any further disclosures made in our subsequent\nannual and periodic reports filed or furnished with the SEC on Forms 10-K,\n10-Q, and 8-K and Proxy Statements on Schedule 14A.\n REGIS CORPORATION                                                                                                                \n \n                                                                                                                                \n \nCONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)                                                                               \n \n                                                                                                                                \n \nAs of March 31, 2026, and June 30, 2025                                                                                         \n \n                                                                                                                                \n \n(Dollars in thousands, except per share data)                                                                                   \n                                                                                                                                  \n                                                                                    March 31,                June 30,             \n                                                                                    \n2026                    \n2025                \n                                                                                                                                  \n ASSETS                                                                                                                           \n Current assets:                                                                                                                  \n Cash and cash equivalents                                                          $     22,930             $     16,959         \n Receivables, net                                                                         9,005                    9,473          \n Inventory                                                                                2,482                    2,798          \n Other current assets                                                                     19,926                   21,254         \n Total current assets                                                                     54,343                   50,484         \n                                                                                                                                  \n Property and equipment, net                                                              9,542                    10,085         \n Goodwill                                                                                 183,101                  183,436        \n Other intangibles, net                                                                   5,471                    5,830          \n Right of use asset                                                                       188,206                  229,861        \n Deferred tax asset                                                                       100,978                  102,504        \n Other assets                                                                             14,957                   16,757         \n Total assets                                                                       $     556,598            $     598,957        \n                                                                                                                                  \n LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                             \n Current liabilities:                                                                                                             \n Accounts payable                                                                   $     20,570             $     20,837         \n Accrued expenses                                                                         15,986                   19,066         \n Long-term debt, current portion                                                          2,550                    1,100          \n Short-term lease liability                                                               52,558                   60,685         \n Total current liabilities                                                                91,664                   101,688        \n                                                                                                                                  \n Long-term debt, net                                                                      112,774                  109,693        \n Long-term lease liability                                                                144,564                  179,280        \n Other non-current liabilities                                                            18,146                   22,680         \n Total liabilities                                                                        367,148                  413,341        \n                                                                                                                                  \n Shareholders' equity:                                                                                                            \n Common stock, $0.05 par value; issued and outstanding 2,498,778 and 2,435,981            125                      122            \n common shares at March 31, 2026, and June 30, 2025, respectively                                                                 \n Additional paid-in capital                                                               76,831                   75,243         \n Accumulated other comprehensive income                                                   7,982                    8,286          \n Retained earnings                                                                        104,512                  101,965        \n Total shareholders' equity                                                               189,450                  185,616        \n Total liabilities and shareholders' equity                                         $     556,598            $     598,957        \n\n REGIS CORPORATION                                                                                                                                                             \n \n                                                                                                                                                                             \n \nCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)                                                                                                                  \n \n                                                                                                                                                                             \n \nFor the Three and Nine Months Ended March 31, 2026, and 2025                                                                                                                 \n \n                                                                                                                                                                             \n \n(Dollars and shares in thousands, except per share amounts)                                                                                                                  \n                                                                                                                                                                               \n                                                                        Three Months Ended March 31,                           Nine Months Ended March 31,                     \n                                                                        2026                         2025                      2026                       2025                 \n                                                                                                                                                                               \n Revenues:                                                                                                                                                                     \n Royalties                                                              $      13,224                $      13,533             $     40,901               $     44,019         \n Fees                                                                          1,861                        2,402                    5,398                      7,671          \n Advertising fund contributions                                                5,215                        5,203                    16,086                     16,334         \n Franchise rental income                                                       13,006                       16,866                   47,597                     58,524         \n Company-owned salon revenue                                                   19,101                       18,953                   58,500                     23,188         \n Total revenue                                                                 52,407                       56,957                   168,482                    149,736        \n Operating expenses:                                                                                                                                                           \n General and administrative                                                    9,975                        11,235                   31,590                     36,424         \n Rent                                                                          3,622                        4,058                    10,443                     7,271          \n Advertising fund expense                                                      5,215                        5,203                    16,086                     16,334         \n Franchise rent expense                                                        13,006                       16,866                   47,597                     58,524         \n Company-owned salon expense (1)                                               13,958                       13,835                   42,453                     16,534         \n Depreciation and amortization                                                 914                          739                      2,478                      1,645          \n Long-lived asset impairment                                                   —                            —                        —                          352            \n Total operating expenses                                                      46,690                       51,936                   150,647                    137,084        \n                                                                                                                                                                               \n Operating income                                                              5,717                        5,021                    17,835                     12,652         \n                                                                                                                                                                               \n Other (expense) income:                                                                                                                                                       \n Interest expense                                                              (5,026  )                    (5,087  )                (15,552  )                 (14,781  )     \n Gain on earn-out liability                                                    —                            —                        1,000                      —              \n Other, net                                                                    202                          315                      961                        685            \n                                                                                                                                                                               \n Income (loss) from operations before income taxes                             893                          249                      4,244                      (1,444   )     \n                                                                                                                                                                               \n Income tax (expense) benefit                                                  (158    )                    1                        (1,697   )                 90             \n                                                                                                                                                                               \n Income (loss) from continuing operations                                      735                          250                      2,547                      (1,354   )     \n                                                                                                                                                                               \n Income from discontinued operations                                           —                            —                        —                          8,396          \n                                                                                                                                                                               \n Net income                                                             $      735                   $      250                $     2,547                $     7,042          \n                                                                                                                                                                               \n Net income per share:                                                                                                                                                         \n Basic:                                                                                                                                                                        \n Income (loss) from continuing operations                               $      0.29                  $      0.10               $     1.01                 $     (0.58    )     \n Income from discontinued operations                                           —                            —                        —                          3.57           \n Net income per share (2)                                               $      0.29                  $      0.10               $     1.01                 $     3.00           \n Diluted:                                                                                                                                                                      \n Income (loss) from continuing operations                               $      0.26                  $      0.08               $     0.89                 $     (0.58    )     \n Income from discontinued operations                                           —                            —                        —                          3.57           \n Net income per share, diluted (2)                                      $      0.26                  $      0.08               $     0.89                 $     3.00           \n                                                                                                                                                                               \n Weighted average common and common equivalent shares outstanding:                                                                                                             \n Basic                                                                         2,539                        2,499                    2,513                      2,350          \n Diluted                                                                       2,864                        3,002                    2,867                      2,350          \n\n ____________________                                                               \n (1)  Includes cost of services and products sold to guests in our company-owned    \n      salons. Excludes general and administrative expense, rent, and depreciation   \n      and amortization related to company-owned salons.                             \n (2)  Total is a recalculation; line items calculated individually may not sum to   \n      total due to rounding.                                                        \n\n REGIS CORPORATION                                                                                                                 \n \n                                                                                                                                 \n \nCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)                                                                      \n \n                                                                                                                                 \n \nFor the Nine Months Ended March 31, 2026, and 2025                                                                               \n \n                                                                                                                                 \n \n(Dollars in thousands)                                                                                                           \n                                                                                                                                   \n                                                                                    Nine Months Ended March 31,                    \n                                                                                    2026                      2025                 \n                                                                                                                                   \n Cash flows provided by (used in) operating activities:                                                                            \n Net income                                                                         $     2,547               $     7,042          \n Adjustments to reconcile net income to cash provided by operating activities:                                                     \n Gain from sale of OSP                                                                    —                         (8,396   )     \n Depreciation and amortization                                                            2,444                     1,596          \n Deferred income taxes                                                                    1,442                     (197     )     \n Non-cash interest                                                                        4,296                     3,846          \n Gain on earn-out liability                                                               (1,000  )                 —              \n Long-lived asset impairment                                                              —                         352            \n Stock-based compensation                                                                 706                       2,043          \n Amortization of debt discount and financing costs                                        2,717                     2,437          \n Other non-cash items affecting earnings                                                  43                        579            \n Ad fund                                                                                  (365    )                 5,844          \n Changes in operating assets and liabilities (1)                                          (3,912  )                 (8,160   )     \n Net cash provided by operating activities                                                8,918                     6,986          \n                                                                                                                                   \n Cash flows (used in) provided by investing activities:                                                                            \n Capital expenditures                                                                     (1,383  )                 (769     )     \n Asset acquisitions, net of cash acquired and certain obligations assumed                 —                         (18,631  )     \n Proceeds from sale of OSP, net of fees                                                   —                         8,463          \n Net cash used in investing activities                                                    (1,383  )                 (10,937  )     \n                                                                                                                                   \n Cash flows (used in) provided by financing activities:                                                                            \n Borrowings on revolving credit facility                                                  —                         4,326          \n Repayments of revolving credit facility                                                  —                         (10,238  )     \n Repayments of long-term debt                                                             (2,440  )                 (825     )     \n Debt refinancing fees                                                                    (41     )                 (949     )     \n Proceeds from issuance of common stock in connection with warrant exercise               298                       —              \n Proceeds from issuance of common stock for options exercised                             606                       —              \n Proceeds from issuance of long-term debt                                                 —                         15,000         \n Taxes paid for shares withheld                                                           (161    )                 (75      )     \n Net cash (used in) provided by financing activities                                      (1,738  )                 7,239          \n                                                                                                                                   \n Effect of exchange rate changes on cash and cash equivalents                             (46     )                 (92      )     \n                                                                                                                                   \n Increase in cash, cash equivalents, and restricted cash                                  5,751                     3,196          \n                                                                                                                                   \n Cash, cash equivalents, and restricted cash:                                                                                      \n Beginning of period                                                                      35,205                    29,312         \n End of period                                                                      $     40,956              $     32,508         \n                                                                                                                                   \n Supplemental non-cash disclosure                                                                                                  \n Stock issued in connection with Alline Acquisition                                 $     —                   $     3,000          \n\n ____________________                                                             \n (1)  Changes in operating assets and liabilities exclude ad fund and assets and  \n      liabilities sold or acquired.                                               \n\n REGIS CORPORATION                                                                                                                   \n \n                                                                                                                                   \n \nSystem-Wide Same-Store Sales                                                                                                       \n                                                                                                                                     \n SYSTEM-WIDE SAME-STORE SALES (1):                                                                                                   \n                                                                                                                                     \n                                         Three Months Ended                                                                          \n                                         March 31, 2026                                  March 31, 2025                              \n                                         Service         Retail           Total          Service         Retail           Total      \n                                                                                                                                     \n Supercuts                               5.4   %         (5.5   )%        5.0   %        1.4   %         (8.1   )%        1.1   %    \n SmartStyle                              (1.1  )         (17.6  )         (3.3  )        (5.1  )         (19.9  )         (7.4  )    \n Portfolio Brands                        2.7             (16.8  )         1.4            (1.0  )         (0.2   )         (0.9  )    \n                                                                                                                                     \n Total system-wide same-store sales      3.6   %         (13.7  )%        2.6   %        (0.4  )%        (11.2  )%        (1.1  )%   \n                                                                                                                                     \n                                         Nine Months Ended                                                                           \n                                         March 31, 2026                                  March 31, 2025                              \n                                         Service         Retail           Total          Service         Retail           Total      \n                                                                                                                                     \n Supercuts                               3.5   %         (7.4   )%        3.2   %        1.2   %         (9.6   )%        0.8   %    \n SmartStyle                              (2.1  )         (19.6  )         (4.6  )        (4.4  )         (18.7  )         (6.8  )    \n Portfolio Brands                        1.5             (9.6   )         0.8            (1.0  )         (8.3   )         (1.5  )    \n                                                                                                                                     \n Total system-wide same-store sales      2.0   %         (13.0  )%        1.1   %        (0.4  )%        (13.3  )%        (1.3  )%   \n\n ____________________                                                                  \n (1)  System-wide same-store sales are calculated as the total change in sales for     \n      system-wide franchise and company-owned locations that were open on a specific   \n      day of the week during the current period and the corresponding prior period.    \n      Quarterly system-wide same-store sales are the sum of the system-wide            \n      same-store sales computed on a daily basis. Franchise salons that do not         \n      report daily sales are excluded from same-store sales. System-wide same-store    \n      sales are calculated in local currencies to remove foreign currency              \n      fluctuations from the calculation.                                               \n\n REGIS CORPORATION                                                                               \n \n                                                                                               \n \nSystem-Wide Location Counts                                                                    \n                                                                                                 \n                                                               March 31,           June 30,      \n                                                               \n2026               \n2025         \n                                                                                                 \n FRANCHISE SALONS:                                                                               \n Supercuts                                                     1,648               1,711         \n SmartStyle/Cost Cutters in Walmart Stores                     998                 1,049         \n Portfolio Brands                                              779                 816           \n Total North American salons                                   3,425               3,576         \n Total International salons (1)                                72                  71            \n Total franchise salons                                        3,497               3,647         \n as a percent of total franchise and company-owned salons      92.8    %           92.5   %      \n                                                                                                 \n COMPANY-OWNED SALONS:                                                                           \n Supercuts                                                     96                  100           \n Portfolio Brands                                              177                 194           \n Total company-owned salons                                    273                 294           \n as a percent of total franchise and company-owned salons      7.2     %           7.5    %      \n                                                                                                 \n Total franchise and company-owned salons                      3,770               3,941         \n\n ____________________                                                            \n (1)  Canadian and Puerto Rican salons are included in the North American salon  \n      totals.                                                                    \n\n\nNon-GAAP Reconciliations:\n\nThis press release includes a presentation of operating income excluding\ncertain non-cash charges, adjusted EBITDA, and adjusted franchise revenue,\nwhich are non-GAAP measures. The non-GAAP measures are financial measures that\ndo not reflect United States Generally Accepted Accounting Principles (GAAP).\nWe believe our presentation of the non-GAAP measures provides meaningful\ninsight into our ongoing operating performance and a supplemental perspective\nof our results of operations. Presentation of the non-GAAP measures allows\ninvestors to review our core ongoing operating performance from the same\nperspective as management and the Board of Directors. These non-GAAP financial\nmeasures provide investors an enhanced understanding of our operations,\nfacilitate investors’ analyses and comparisons of our current and past\nresults of operations and provide insight into the prospects of our future\nperformance. We also believe the non-GAAP measures are useful to investors\nbecause they provide supplemental information that research analysts\nfrequently use to analyze financial performance.\n\nItems impacting comparability are not defined terms within U.S. GAAP.\nTherefore, our non-GAAP financial information may not be comparable to\nsimilarly titled measures reported by other companies. We determine the items\nto consider as \"items impacting comparability\" based on how management views\nour business, makes financial, operating and planning decisions, and evaluates\nthe Company's ongoing performance.\n\nThe reconciliation of U.S. GAAP operating income to non-GAAP operating income\nexcluding certain non-cash charges is included in the release.\n\nThe following items have been excluded from our non-GAAP adjusted EBITDA\nresults: stock-based compensation expense, discontinued operations, one-time\nprofessional fees and settlements, severance expense, the benefit from lease\nliability decreases in excess of previously impaired right of use asset, lease\ntermination fees, and asset retirement obligation costs.\n\nWe present adjusted revenue to provide a meaningful franchise adjusted EBITDA\nmargin, which removes non-margin revenue from total revenue to arrive at an\nadjusted margin. Margin is a common metric used by investors, however, the\nmajority of our revenue is offset by equal expense, so it does not contribute\nto our margin. We remove the non-margin revenue from this metric in order to\nshow a meaningful margin rate.\n\nThe method we use to produce non-GAAP results is not in accordance with U.S.\nGAAP and may differ from methods used by other companies. These non-GAAP\nresults should not be regarded as a substitute for corresponding U.S. GAAP\nmeasures but instead should be utilized as a supplemental measure of operating\nperformance in evaluating our business. Non-GAAP measures do have limitations\nas they do not reflect certain items that may have a material impact upon our\nreported financial results. As such, these non-GAAP measures should be viewed\nin conjunction with our financial statements prepared in accordance with U.S.\nGAAP.\n REGIS CORPORATION                                                                                                                                   \n \n                                                                                                                                                   \n \nReconciliation of U.S. GAAP Net Income to Adjusted EBITDA                                                                                          \n \n                                                                                                                                                   \n \n(Dollars in thousands)                                                                                                                             \n \n                                                                                                                                                   \n \n(Unaudited)                                                                                                                                        \n                                                                                                                                                     \n                                                  Three Months Ended March 31,                         Nine Months Ended March 31,                   \n                                                  2026                        2025                     2026                      2025                \n                                                                                                                                                     \n Reported net income                              $      735                  $      250               $     2,547               $     7,042         \n Interest expense                                        5,026                       5,087                   15,552                    14,781        \n Income tax expense (benefit)                            158                         (1     )                1,697                     (90     )     \n Depreciation and amortization                           914                         739                     2,478                     1,645         \n Long-lived asset impairment                             —                           —                       —                         352           \n EBITDA                                                  6,833                       6,075                   22,274                    23,730        \n Stock-based compensation                                (204   )                    439                     706                       2,043         \n Gain on discontinued operations                         —                           —                       —                         (8,396  )     \n Gain on earn-out liability                              —                           —                       (1,000  )                 —             \n Discrete items (1)                                      1,051                       611                     1,657                     4,525         \n Adjusted EBITDA, non-GAAP financial measure      $      7,680                $      7,125             $     23,637              $     21,902        \n\n ____________________                                                              \n (1)  Discrete items include one-time professional fees and legal settlements,     \n      severance expense, the benefit from lease liability decreases in excess of   \n      previously impaired right of use asset, and lease termination fees.          \n\n REGIS CORPORATION                                                                                                                                                                  \n \n                                                                                                                                                                                  \n \nReconciliation of Reported Franchise Adjusted EBITDA as a Percent of GAAP                                                                                                         \n Franchise Revenue                                                                                                                                                                  \n \n                                                                                                                                                                                  \n \nto Franchise Adjusted EBITDA as a Percent of Adjusted Franchise Revenue                                                                                                           \n \n                                                                                                                                                                                  \n \n(Dollars in thousands)                                                                                                                                                            \n \n                                                                                                                                                                                  \n \n(Unaudited)                                                                                                                                                                       \n                                                                                                                                                                                    \n                                                                           Three Months Ended March 31,                             Nine Months Ended March 31,                     \n                                                                           2026                          2025                       2026                       2025                 \n                                                                                                                                                                                    \n Franchise adjusted EBITDA                                                 $      6,236                  $      6,282               $     18,861               $     20,683         \n GAAP franchise revenue                                                           33,306                        38,004                    109,982                    126,548        \n Franchise adjusted EBITDA as a percent of GAAP franchise revenue                 18.7     %                    16.5     %                17.1     %                 16.3     %     \n Non-margin revenue adjustments:                                                                                                                                                    \n Franchise rental income                                                   $      (13,006  )             $      (16,866  )          $     (47,597  )           $     (58,524  )     \n Advertising fund contributions                                                   (5,215   )                    (5,203   )                (16,086  )                 (16,334  )     \n Adjusted franchise revenue                                                $      15,085                 $      15,935              $     46,299               $     51,690         \n Franchise adjusted EBITDA as a percent of adjusted franchise revenue             41.3     %                    39.4     %                40.7     %                 40.0     %     \n\n REGIS CORPORATION                                                                                                                             \n \n                                                                                                                                             \n \nReconciliation of Reported Net Income to Adjusted Net Income                                                                                 \n \n                                                                                                                                             \n \n(Dollars in thousands)                                                                                                                       \n \n                                                                                                                                             \n \n(Unaudited)                                                                                                                                  \n                                                                                                                                               \n                                             Three Months Ended March 31,                         Nine Months Ended March 31,                  \n                                             2026                        2025                     2026                     2025                \n                                                                                                                                               \n Reported net income                         $      735                  $      250               $     2,547              $     7,042         \n Stock-based compensation, net of tax               (204   )                    439                     1,121                    2,043         \n Long-lived asset impairment                        —                           —                       —                        352           \n Discontinued operations                            —                           —                       —                        (8,396  )     \n Gain on earn-out liability, net of tax             —                           —                       (780   )                 —             \n Discrete items (1)                                 1,102                       607                     1,861                    4,574         \n Adjusted net income                         $      1,633                $      1,296             $     4,749              $     5,615         \n\n ____________________                                                              \n (1)  Discrete items include one-time professional fees and legal settlements,     \n      severance expense, the benefit from lease liability decreases in excess of   \n      previously impaired right of use asset, lease termination fees and asset     \n      retirement obligation costs, and deferred tax asset impacts.                 \n\n REGIS CORPORATION                                                                                                                                     \n \n                                                                                                                                                     \n \nReconciliation of Reported Diluted Earnings Per Share to Adjusted Diluted                                                                            \n Earnings Per Share                                                                                                                                    \n \n                                                                                                                                                     \n \n(Unaudited)                                                                                                                                          \n                                                                                                                                                       \n                                                      Three Months Ended March 31,                         Nine Months Ended March 31,                 \n                                                      2026                        2025                     2026                     2025               \n                                                                                                                                                       \n Reported diluted earnings per share                  $      0.26                 $      0.08              $     0.89               $     3.00         \n Stock compensation                                          (0.07  )                    0.15                    0.38                     0.72         \n Long-lived asset impairment                                 —                           —                       —                        0.12         \n Discontinued operations                                     —                           —                       —                        (2.94  )     \n Gain on earn-out liability                                  —                           —                       (0.27  )                 —            \n Discrete items (1)                                          0.38                        0.20                    0.65                     1.60         \n Impact of change in weighted average shares (2)             —                           —                       —                        (0.53  )     \n Adjusted diluted earnings per share                  $      0.57                 $      0.43              $     1.65               $     1.97         \n\n ____________________                                                                \n (1)  Discrete items include one-time professional fees and legal settlements,       \n      severance expense, the benefit from lease liability decreases in excess of     \n      previously impaired right of use asset, lease termination fees and asset       \n      retirement obligation costs, and deferred tax asset impacts.                   \n (2)  Non-GAAP net income per share reflects the weighted average shares associated  \n      with non-GAAP net income, which includes the dilutive effect of common stock   \n      equivalents. The impact of the adjustments described above result in the       \n      effect of the common stock equivalents to be dilutive to the non-GAAP net      \n      income per share.                                                              \n\n REGIS CORPORATION                                                                                                                                \n \n                                                                                                                                                \n \nReconciliation of Reported General and Administrative Expenses to General and                                                                   \n Administrative Expenses Used to Calculate Adjusted EBITDA                                                                                        \n \n                                                                                                                                                \n \n(Dollars in thousands)                                                                                                                          \n \n                                                                                                                                                \n \n(Unaudited)                                                                                                                                     \n                                                                                                                                                  \n                                              Three Months Ended March 31,                          Nine Months Ended March 31,                   \n                                              2026                        2025                      2026                      2025                \n                                                                                                                                                  \n Reported general and administrative          $      9,975                $      11,235             $     31,590              $     36,424        \n Discrete general and administrative (1)             (692   )                    (622    )                (1,204  )                 (4,584  )     \n Stock-based compensation                            204                         (439    )                (706    )                 (2,043  )     \n Adjusted general and administrative          $      9,487                $      10,174             $     29,680              $     29,797        \n\n ____________________                                                              \n (1)  Discrete items include one-time professional fees and legal settlements and  \n      severance expense.                                                           \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260513113503/en/\n(https://www.businesswire.com/news/home/20260513113503/en/)\n\nREGIS CORPORATION: \n\nKersten Zupfer\n\ninvestorrelations@regiscorp.com (mailto:investorrelations@regiscorp.com)\n\nHAYDEN IR: \n\nJames Carbonara\n\nJames@haydenir.com \n(mailto:James@haydenir.com) \n(646) 755-7412\n\nBrett Maas\n\nbrett@haydenir.com \n(mailto:brett@haydenir.com) \n(646) 536-7331\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBwpf970a","title":"Regis Corporation Reports Financial Results for the Third Fiscal Quarter 2026","author":"Business Wire","ticker":"RGS","created":"2026-05-13T10:00:00.622Z","tickers":["RGS"],"exchange":"NASDAQ","article_body":"Regis Corporation Reports Financial Results for the Third Fiscal Quarter 2026\n\nStrong Execution Drives Improved Profitability\n\nQ3 Consolidated Same-Store Sales Up 2.6%, Supercuts Up 5.0%, Company-Owned\nSalons Up 9.6%\n\nCash Flow Strengthens Through Disciplined Cost Management and Operational\nImprovements\n\nRegis Corporation (NasdaqGM: RGS), a leader in the haircare industry, today\nannounced financial results for the third fiscal quarter ended March 31, 2026.\n\nSusan Lintonsmith, Regis Corporation's President and Chief Executive Officer,\ncommented, “Our third quarter results reflect another quarter of solid\nexecution, demonstrated by increasing profitability and solid cash flow\ngeneration. We are encouraged by the momentum we are building, particularly at\nSupercuts and our company-owned salons, which delivered same-store sales\ngrowth of 5.0% and 9.6%, respectively. This performance was supported by\nticket strength and favorable seasonal conditions.”\n\nLintonsmith continued, “Sustained value creation will ultimately be driven\nby higher salon traffic across the system. As we execute our strategy, we are\nfocused on a set of initiatives designed to drive that outcome, including\nconsistent execution of brand standards, optimization of our operating model\nand planned deployment of technology to deliver a consistent and more elevated\nguest experience. We are advancing these efforts through investments in the\ncompany-owned salon business, training, targeted marketing programs, and\nloyalty programs. By directing resources to the areas with the greatest\npotential impact on performance, we are positioning the business to unlock the\nnext phase of value creation across our portfolio.\"\n\n“Disciplined capital management remains a core priority as we focus on\nreducing our debt service and delivering long-term shareholder value,” said\nKersten Zupfer, Executive Vice President and Chief Financial Officer. “We\ncontinue to work with experienced advisors and potential partners to evaluate\nrefinancing alternatives for our existing credit agreement.”\n\nFinancial Highlights:\n\nThird quarter fiscal 2026 compared to third quarter fiscal 2025:\n\n\n * Consolidated revenue of $52.4 million versus $57.0 million, a decrease of $4.6\nmillion; driven primarily by lower royalties, fees, and non-margin franchise\nrental income\n\n * Same-store sales: Supercuts: 5.0%; Company-owned: 9.6%; Consolidated: 2.6%\n\n * Operating income of $5.7 million versus $5.0 million\n\n * Sixth consecutive quarter of positive cash from operations\n\n * Net income of $0.7 million versus $0.3 million\n\n\n* Diluted EPS of $0.26 versus $0.08\n\n\n\n\n * Adjusted net income of $1.6 million versus $1.3 million\n\n\n* Adjusted diluted EPS of $0.57 versus $0.43\n\n\n\n\n * Adjusted EBITDA of $7.7 million versus $7.1 million\n\nYear-to-date fiscal 2026 compared to year-to-date fiscal 2025:\n\n\n * Consolidated revenue of $168.5 million versus $149.7 million, an increase of\n$18.8 million; driven by increased company-owned salon revenue as a result of\nthe Alline acquisition, partially offset by lower royalties, fees, and\nnon-margin franchise rental income\n\n * Same-store sales: Supercuts: 3.2%; Consolidated: 1.1%\n\n * Operating income of $17.8 million versus $12.7 million\n\n * Cash from operations of $8.9 million versus $7.0 million, an increase of $1.9\nmillion\n\n\n* $9.3 million of cash from operations excluding the effect of restricted cash\nad fund\n\n\n\n\n * Net income of $2.5 million versus $7.0 million, inclusive of $8.4 million of\nincome from discontinued operations in the prior year period\n\n\n* Diluted EPS of $0.89 versus $3.00, inclusive of $3.57 of income from\ndiscontinued operations\n\n\n\n\n * Adjusted net income of $4.7 million versus $5.6 million\n\n\n* Adjusted diluted EPS of $1.65 versus $1.97\n\n\n\n\n * Adjusted EBITDA of $23.6 million versus $21.9 million in prior year\n Third Quarter Fiscal Year 2026 Consolidated Results                                                                                                              \n                                                                                                                                                                  \n                                                                 Three Months Ended March 31,                         Nine Months Ended March 31,                 \n (Dollars in millions, except per share data)                    2026                        2025                     2026                     2025               \n                                                                                                                                                                  \n Consolidated revenue                                            $      52.4                 $      57.0              $     168.5              $     149.7        \n System-wide revenue (1)                                                261.1                       266.9                   796.6                    826.4        \n                                                                                                                                                                  \n System-wide same-store sales comps                                     2.6    %                    (1.1   )%               1.1    %                 (1.3   )%    \n                                                                                                                                                                  \n Operating income                                                $      5.7                  $      5.0               $     17.8               $     12.7         \n Income (loss) from continuing operations                               0.7                         0.3                     2.5                      (1.4   )     \n Diluted income (loss) per share from continuing operations             0.26                        0.08                    0.89                     (0.58  )     \n Income from discontinued operations                                    —                           —                       —                        8.4          \n Net income                                                             0.7                         0.3                     2.5                      7.0          \n Diluted earnings per share                                             0.26                        0.08                    0.89                     3.00         \n Adjusted EBITDA (2)(3)                                                 7.7                         7.1                     23.6                     21.9         \n Adjusted net income (2)                                                1.6                         1.3                     4.7                      5.6          \n Adjusted diluted net income per share (2)                              0.57                        0.43                    1.65                     1.97         \n\n ____________________                                                              \n (1)  Represents total sales within the system.                                    \n (2)  See GAAP to non-GAAP reconciliations within the attached section titled      \n      \"Non-GAAP Reconciliations.\"                                                  \n (3)  Total is a recalculation; line items calculated individually may not sum to  \n      total due to rounding.                                                       \n\n\nRevenue\n\nTotal consolidated revenue of $52.4 million in the third quarter of 2026\ndeclined $4.6 million, driven primarily by lower royalties, fees, and\nnon-margin franchise rental income. Consolidated revenue of $168.5 million in\nthe year-to-date 2026 period improved $18.8 million, driven primarily by an\nincrease in company-owned salon revenue resulting from the Alline acquisition\non December 19, 2024, partially offset by lower royalties, fees, and\nnon-margin franchise rental income.\n\nOperating Income\n\nRegis reported third quarter 2026 operating income of $5.7 million, an\nimprovement of $0.7 million compared to $5.0 million in the third quarter of\n2025. Regis reported year-to-date 2026 operating income of $17.8 million, an\nimprovement of $5.1 million compared to $12.7 million in the year-to-date 2025\nperiod. The year-over-year improvement in operating income was primarily\ndriven by operating income from the Alline salons and reductions in general\nand administrative expenses, partially offset by lower royalties and fees.\n\nIncome (Loss) from Continuing Operations\n\nRegis reported third quarter 2026 net income from continuing operations of\n$0.7 million, or $0.26 per diluted share, compared to net income from\ncontinuing operations of $0.3 million, or $0.08 per diluted share, in the\nthird quarter of 2025. The Company reported year-to-date 2026 net income from\ncontinuing operations of $2.5 million, or $0.89 per diluted share, compared to\na net loss from continuing operations of $1.4 million, or $0.58 per share, in\nthe prior year period. The year-over-year increase was driven primarily by an\nincrease in company-owned salon revenue and reductions in general and\nadministrative expenses, partially offset by lower royalties and fees.\n\nNet Income\n\nThe Company reported third quarter 2026 net income of $0.7 million, or $0.26\nper diluted share, compared to net income of $0.3 million, or $0.08 per\ndiluted share, for the same period last year. The Company reported\nyear-to-date 2026 net income of $2.5 million, or $0.89 per diluted share,\ncompared to net income of $7.0 million, or $3.00 per diluted share, in 2025.\nThe higher income in the prior year-to-date period was driven primarily by\nincome from discontinued operations, which did not recur in the current\nyear-to-date period.\n\nAdjusted EBITDA\n\nThird quarter and year-to-date 2026 adjusted EBITDA of $7.7 million and $23.6\nmillion, respectively, improved $0.6 million and $1.7 million, compared to\nadjusted EBITDA of $7.1 million and $21.9 million in the same periods last\nyear. The improvement in both periods is primarily related to higher\ncompany-owned salon revenue and reductions in general and administrative\nexpenses, offset partially by lower franchise royalties and non-cash fee\nrecognition.\n\nThird Quarter Fiscal Year 2026 Segment Results\n Franchise                                                                                                                                                                                               \n                                                                                                                                                                                                         \n                                                               Three Months Ended March 31,                         Decrease            Nine Months Ended March 31,                     Decrease         \n                                                                                                                                                                              \n (Dollars in millions)                                         2026                        2025                                2026                  2025                     \n                                                                                                                                                                                                         \n Royalties                                                     $      13.2                 $      13.5              $    (0.3  )        $     40.9               $     44.0             $    (3.1   )    \n Fees                                                                 1.9                         2.4                    (0.5  )              5.4                      7.7                   (2.3   )    \n Advertising fund contributions                                       5.2                         5.2                    —                    16.1                     16.3                  (0.2   )    \n Franchise rental income                                              13.0                        16.9                   (3.9  )              47.6                     58.5                  (10.9  )    \n Total franchise revenue (1)                                   $      33.3                 $      38.0              $    (4.7  )        $     110.0              $     126.5            $    (16.5  )    \n                                                                                                                                                                                                         \n Franchise same-store sales comps                                     2.0    %                    (0.7   )%                                   0.8    %                 (1.1   )%                         \n                                                                                                                                                                                                         \n Franchise adjusted EBITDA                                     $      6.2                  $      6.3               $    (0.1  )        $     18.9               $     20.7             $    (1.8   )    \n as a percent of revenue (1)                                          18.7   %                    16.5   %                                    17.1   %                 16.3   %                          \n as a percent of adjusted revenue (2)                                 41.3   %                    39.4   %                                    40.7   %                 40.0   %                          \n                                                                                                                                                                                                         \n Total franchise salons                                               3,497                       3,776                  (279  )                                                                         \n as a percent of total franchise and company-owned salons             92.8   %                    92.4   %                                                                                               \n\n ____________________                                                                  \n (1)  Total is a recalculation; line items calculated individually may not             \n      recalculate due to rounding.                                                     \n (2)  Adjusted revenue excludes non-margin revenue. See GAAP to non-GAAP               \n      reconciliations within the attached section titled \"Non-GAAP Reconciliations.\"   \n\n\nFranchise Revenue\n\nThird quarter franchise revenue was $33.3 million, a $4.7 million, or 12.4%,\ndecrease compared to the prior year quarter. Year-to-date 2026 franchise\nrevenue was $110.0 million, a $16.5 million, or 13.0%, decrease compared to\nthe prior year period. Non-margin franchise rental income was the primary\ndriver of the decline due to franchisees signing their own leases and fewer\nfranchise salons in the current year partially as a result of the Alline\nacquisition.\n\nRoyalties were $13.2 million and $40.9 million, a $0.3 million and $3.1\nmillion, or 2.2% and 7.0%, decrease for the third quarter and year-to-date\n2026 periods, respectively, versus the same periods last year, due primarily\nto fewer franchise salons.\n\nFranchise Adjusted EBITDA\n\nThird quarter franchise adjusted EBITDA of $6.2 million declined $0.1 million.\nYear-to-date 2026 franchise adjusted EBITDA of $18.9 million declined $1.8\nmillion year-over-year. The declines primarily related to lower royalties and\nnon-cash fees in the current year period, offset partially by decreased\ngeneral and administrative expenses.\n Company-Owned Salons                                                                                                                                                                                   \n                                                                                                                                                                                                        \n                                                               Three Months Ended March 31,                         Increase              Nine Months Ended March 31,                   Increase        \n                                                                                                                    \n                                                                                   \n                                                                                                                    \n(Decrease)                                                                         \n                                                                                                                                                                              \n (Dollars in millions)                                         2026                        2025                                 2026                  2025                    \n                                                                                                                                                                                                        \n Total company-owned salon revenue                             $      19.1                 $      19.0              $     0.1             $     58.5              $     23.2            $    35.3       \n Company-owned same-store sales comps                                 9.6    %                    (6.8   )%                                     5.1   %                 (6.7  )%                        \n                                                                                                                                                                                                        \n Company-owned salon adjusted EBITDA                           $      1.4                  $      0.8               $     0.6             $     4.8               $     1.2             $    3.6        \n as a percent of revenue                                              7.3    %                    4.2    %                                      8.2   %                 5.2   %                         \n                                                                                                                                                                                                        \n Total company-owned salons                                           273                         311                     (38   )                                                                       \n as a percent of total franchise and company-owned salons             7.2    %                    7.6    %                                                                                              \n\n\nCompany-Owned Salon Revenue\n\nThird quarter revenue for the company-owned salon segment was $19.1 million, a\n$0.1 million increase compared to the prior year quarter, primarily driven by\nsame-store-sales growth, partially offset by the closure of underperforming\nsalons. Year-to-date 2026 revenue for the company-owned salon segment\nincreased $35.3 million versus the prior year to $58.5 million. The\nyear-over-year increase in revenue was primarily due to the impact of the\nAlline acquisition on December 19, 2024.\n\nCompany-Owned Salon Adjusted EBITDA\n\nThird quarter and year-to-date 2026 company-owned salon adjusted EBITDA\nimproved $0.6 million and $3.6 million, respectively, compared to the prior\nyear periods. The year-to-date improvement is due primarily to increased\ncontribution generated by the greater salon count as a result of the Alline\nacquisition.\n\nBalance Sheet and Cash Flow\n\nThe Company ended the third quarter of fiscal year 2026 with $22.9 million in\ncash and cash equivalents, $127.1 million in outstanding borrowings ($116.4\nmillion term loan, $9.7 million paid in kind interest, and $1.0 million\nrevolver draw) and available total liquidity of $31.9 million. Net cash\nprovided by operating activities for the nine months ended March 31, 2026,\ntotaled $8.9 million, an improvement of $1.9 million from the nine months\nended March 31, 2025, primarily due to higher operating income in the current\nyear period offset partially by cash accumulated in the ad fund in the prior\nyear.\n\nNon-GAAP Reconciliations\n\nFor GAAP to non-GAAP reconciliations, please refer to the attached section\ntitled \"Non-GAAP Reconciliations.\" A complete reconciliation of reported\nearnings to adjusted earnings is included in this press release.\n\nEarnings Webcast\n\nRegis Corporation will host a conference call via webcast discussing third\nquarter results today, May 13, 2026, at 7:30 a.m. Central time. Interested\nparties are invited to participate in the live webcast by registering for the\nevent at www.regiscorp.com/investor-relations.html\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.regiscorp.com%2Finvestor-relations.html&esheet=54534396&newsitemid=20260513113503&lan=en-US&anchor=www.regiscorp.com%2Finvestor-relations.html&index=1&md5=92990385d191aac78c0b3e92d99010e7)\n. A replay of the presentation will be available on our website at the same\nweb address.\n\nAbout Regis Corporation\n\nRegis Corporation (NasdaqGM:RGS) is a leader in the haircare industry. As of\nMarch 31, 2026, the Company franchised or owned 3,770 locations. Regis’\nfranchised and corporate locations operate under concepts such as\nSupercuts(®), SmartStyle(®), Cost Cutters(®), Roosters(®), and First\nChoice Haircutters(®). For additional information about the Company, please\nvisit the Investor Relations section of the corporate website at\nwww.regiscorp.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.regiscorp.com&esheet=54534396&newsitemid=20260513113503&lan=en-US&anchor=www.regiscorp.com&index=2&md5=fea2f4473d6d74bf0edd6fa49b0bcd22)\n.\n\nThis press release contains or may contain \"forward-looking statements\" within\nthe meaning of the federal securities laws, including statements concerning\nanticipated future events and expectations that are not historical facts.\nThese forward-looking statements are made pursuant to the safe harbor\nprovisions of the Private Securities Litigation Reform Act of 1995. The\nforward-looking statements in this document reflect management's best judgment\nat the time they are made, but all such statements are subject to numerous\nrisks and uncertainties, which could cause actual results to differ materially\nfrom those expressed in or implied by the statements herein. Such\nforward-looking statements are often identified herein by use of words\nincluding, but not limited to, \"may,\" \"will,\" \"believe,\" \"project,\"\n\"forecast,\" \"expect,\" \"estimate,\" \"anticipate,\" and \"plan.\" These\nuncertainties include a potential material adverse impact on our business and\nresults of operations as a result of changes in consumer shopping trends and\nchanges in manufacturer distribution channels; laws and regulations could\nrequire us to modify current business practices and incur increased costs\nincluding increases in minimum wages; changes in the general economic\nenvironment; changes in consumer tastes, hair product innovation, fashion\ntrends and consumer spending patterns; our ability to realize the anticipated\nbenefits of the Alline acquisition; reliance on franchise royalties and\noverall success of our franchisees’ salons; our salons' dependence on a\nthird-party supplier agreement for merchandise; our and our franchisees'\nability to attract, train and retain talented stylists and salon leaders; the\nsuccess of our franchisees, which operate independently; data security and\nprivacy compliance and our ability to manage cyber threats and protect the\nsecurity of potentially sensitive information about our guests, franchisees,\nemployees, vendors or Company information; the ability of the Company to\nmaintain a satisfactory relationship with Walmart; marketing efforts to drive\ntraffic to our franchisees' and company-owned salons; our ability to maintain\nand enhance the value of our brands; reliance on legacy information technology\nsystems; reliance on external vendors; the use of social media; the\neffectiveness of our enterprise risk management program; potential challenges\nwith the planning or implementation of our new enterprise resource planning\nsystem; our ability to minimize risks associated with owning and operating\nadditional salons; ability to generate sufficient cash flow to satisfy our\ndebt service obligations; compliance with covenants in our financing\narrangement; premature termination of agreements with our franchisees; the\ncontinued ability of the Company to implement cost reduction initiatives and\nachieve expected cost savings; continued ability to compete in our business\nmarkets; potential liabilities related to the employee retention credit\nreceived by Alline; reliance on our management team and other key personnel;\nthe ability to attract and retain key personnel; the continued ability to\nmaintain an effective system of internal control over financial reporting;\nchanges in tax exposure; the ability of our Tax Preservation Plan to protect\nthe future availability of the Company's tax assets; potential litigation and\nother legal or regulatory proceedings; or other factors not listed above.\nAdditional information concerning potential factors that could affect future\nfinancial results is set forth under Item 1A on Form 10-K. We undertake no\nobligation to publicly update or revise any forward-looking statements,\nwhether as a result of new information, future events or otherwise. However,\nyour attention is directed to any further disclosures made in our subsequent\nannual and periodic reports filed or furnished with the SEC on Forms 10-K,\n10-Q, and 8-K and Proxy Statements on Schedule 14A.\n REGIS CORPORATION                                                                                                                \n \n                                                                                                                                \n \nCONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)                                                                               \n \n                                                                                                                                \n \nAs of March 31, 2026, and June 30, 2025                                                                                         \n \n                                                                                                                                \n \n(Dollars in thousands, except per share data)                                                                                   \n                                                                                                                                  \n                                                                                    March 31,                June 30,             \n                                                                                    \n2026                    \n2025                \n                                                                                                                                  \n ASSETS                                                                                                                           \n Current assets:                                                                                                                  \n Cash and cash equivalents                                                          $     22,930             $     16,959         \n Receivables, net                                                                         9,005                    9,473          \n Inventory                                                                                2,482                    2,798          \n Other current assets                                                                     19,926                   21,254         \n Total current assets                                                                     54,343                   50,484         \n                                                                                                                                  \n Property and equipment, net                                                              9,542                    10,085         \n Goodwill                                                                                 183,101                  183,436        \n Other intangibles, net                                                                   5,471                    5,830          \n Right of use asset                                                                       188,206                  229,861        \n Deferred tax asset                                                                       100,978                  102,504        \n Other assets                                                                             14,957                   16,757         \n Total assets                                                                       $     556,598            $     598,957        \n                                                                                                                                  \n LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                             \n Current liabilities:                                                                                                             \n Accounts payable                                                                   $     20,570             $     20,837         \n Accrued expenses                                                                         15,986                   19,066         \n Long-term debt, current portion                                                          2,550                    1,100          \n Short-term lease liability                                                               52,558                   60,685         \n Total current liabilities                                                                91,664                   101,688        \n                                                                                                                                  \n Long-term debt, net                                                                      112,774                  109,693        \n Long-term lease liability                                                                144,564                  179,280        \n Other non-current liabilities                                                            18,146                   22,680         \n Total liabilities                                                                        367,148                  413,341        \n                                                                                                                                  \n Shareholders' equity:                                                                                                            \n Common stock, $0.05 par value; issued and outstanding 2,498,778 and 2,435,981            125                      122            \n common shares at March 31, 2026, and June 30, 2025, respectively                                                                 \n Additional paid-in capital                                                               76,831                   75,243         \n Accumulated other comprehensive income                                                   7,982                    8,286          \n Retained earnings                                                                        104,512                  101,965        \n Total shareholders' equity                                                               189,450                  185,616        \n Total liabilities and shareholders' equity                                         $     556,598            $     598,957        \n\n REGIS CORPORATION                                                                                                                                                             \n \n                                                                                                                                                                             \n \nCONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)                                                                                                                  \n \n                                                                                                                                                                             \n \nFor the Three and Nine Months Ended March 31, 2026, and 2025                                                                                                                 \n \n                                                                                                                                                                             \n \n(Dollars and shares in thousands, except per share amounts)                                                                                                                  \n                                                                                                                                                                               \n                                                                        Three Months Ended March 31,                           Nine Months Ended March 31,                     \n                                                                        2026                         2025                      2026                       2025                 \n                                                                                                                                                                               \n Revenues:                                                                                                                                                                     \n Royalties                                                              $      13,224                $      13,533             $     40,901               $     44,019         \n Fees                                                                          1,861                        2,402                    5,398                      7,671          \n Advertising fund contributions                                                5,215                        5,203                    16,086                     16,334         \n Franchise rental income                                                       13,006                       16,866                   47,597                     58,524         \n Company-owned salon revenue                                                   19,101                       18,953                   58,500                     23,188         \n Total revenue                                                                 52,407                       56,957                   168,482                    149,736        \n Operating expenses:                                                                                                                                                           \n General and administrative                                                    9,975                        11,235                   31,590                     36,424         \n Rent                                                                          3,622                        4,058                    10,443                     7,271          \n Advertising fund expense                                                      5,215                        5,203                    16,086                     16,334         \n Franchise rent expense                                                        13,006                       16,866                   47,597                     58,524         \n Company-owned salon expense (1)                                               13,958                       13,835                   42,453                     16,534         \n Depreciation and amortization                                                 914                          739                      2,478                      1,645          \n Long-lived asset impairment                                                   —                            —                        —                          352            \n Total operating expenses                                                      46,690                       51,936                   150,647                    137,084        \n                                                                                                                                                                               \n Operating income                                                              5,717                        5,021                    17,835                     12,652         \n                                                                                                                                                                               \n Other (expense) income:                                                                                                                                                       \n Interest expense                                                              (5,026  )                    (5,087  )                (15,552  )                 (14,781  )     \n Gain on earn-out liability                                                    —                            —                        1,000                      —              \n Other, net                                                                    202                          315                      961                        685            \n                                                                                                                                                                               \n Income (loss) from operations before income taxes                             893                          249                      4,244                      (1,444   )     \n                                                                                                                                                                               \n Income tax (expense) benefit                                                  (158    )                    1                        (1,697   )                 90             \n                                                                                                                                                                               \n Income (loss) from continuing operations                                      735                          250                      2,547                      (1,354   )     \n                                                                                                                                                                               \n Income from discontinued operations                                           —                            —                        —                          8,396          \n                                                                                                                                                                               \n Net income                                                             $      735                   $      250                $     2,547                $     7,042          \n                                                                                                                                                                               \n Net income per share:                                                                                                                                                         \n Basic:                                                                                                                                                                        \n Income (loss) from continuing operations                               $      0.29                  $      0.10               $     1.01                 $     (0.58    )     \n Income from discontinued operations                                           —                            —                        —                          3.57           \n Net income per share (2)                                               $      0.29                  $      0.10               $     1.01                 $     3.00           \n Diluted:                                                                                                                                                                      \n Income (loss) from continuing operations                               $      0.26                  $      0.08               $     0.89                 $     (0.58    )     \n Income from discontinued operations                                           —                            —                        —                          3.57           \n Net income per share, diluted (2)                                      $      0.26                  $      0.08               $     0.89                 $     3.00           \n                                                                                                                                                                               \n Weighted average common and common equivalent shares outstanding:                                                                                                             \n Basic                                                                         2,539                        2,499                    2,513                      2,350          \n Diluted                                                                       2,864                        3,002                    2,867                      2,350          \n\n ____________________                                                               \n (1)  Includes cost of services and products sold to guests in our company-owned    \n      salons. Excludes general and administrative expense, rent, and depreciation   \n      and amortization related to company-owned salons.                             \n (2)  Total is a recalculation; line items calculated individually may not sum to   \n      total due to rounding.                                                        \n\n REGIS CORPORATION                                                                                                                 \n \n                                                                                                                                 \n \nCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)                                                                      \n \n                                                                                                                                 \n \nFor the Nine Months Ended March 31, 2026, and 2025                                                                               \n \n                                                                                                                                 \n \n(Dollars in thousands)                                                                                                           \n                                                                                                                                   \n                                                                                    Nine Months Ended March 31,                    \n                                                                                    2026                      2025                 \n                                                                                                                                   \n Cash flows provided by (used in) operating activities:                                                                            \n Net income                                                                         $     2,547               $     7,042          \n Adjustments to reconcile net income to cash provided by operating activities:                                                     \n Gain from sale of OSP                                                                    —                         (8,396   )     \n Depreciation and amortization                                                            2,444                     1,596          \n Deferred income taxes                                                                    1,442                     (197     )     \n Non-cash interest                                                                        4,296                     3,846          \n Gain on earn-out liability                                                               (1,000  )                 —              \n Long-lived asset impairment                                                              —                         352            \n Stock-based compensation                                                                 706                       2,043          \n Amortization of debt discount and financing costs                                        2,717                     2,437          \n Other non-cash items affecting earnings                                                  43                        579            \n Ad fund                                                                                  (365    )                 5,844          \n Changes in operating assets and liabilities (1)                                          (3,912  )                 (8,160   )     \n Net cash provided by operating activities                                                8,918                     6,986          \n                                                                                                                                   \n Cash flows (used in) provided by investing activities:                                                                            \n Capital expenditures                                                                     (1,383  )                 (769     )     \n Asset acquisitions, net of cash acquired and certain obligations assumed                 —                         (18,631  )     \n Proceeds from sale of OSP, net of fees                                                   —                         8,463          \n Net cash used in investing activities                                                    (1,383  )                 (10,937  )     \n                                                                                                                                   \n Cash flows (used in) provided by financing activities:                                                                            \n Borrowings on revolving credit facility                                                  —                         4,326          \n Repayments of revolving credit facility                                                  —                         (10,238  )     \n Repayments of long-term debt                                                             (2,440  )                 (825     )     \n Debt refinancing fees                                                                    (41     )                 (949     )     \n Proceeds from issuance of common stock in connection with warrant exercise               298                       —              \n Proceeds from issuance of common stock for options exercised                             606                       —              \n Proceeds from issuance of long-term debt                                                 —                         15,000         \n Taxes paid for shares withheld                                                           (161    )                 (75      )     \n Net cash (used in) provided by financing activities                                      (1,738  )                 7,239          \n                                                                                                                                   \n Effect of exchange rate changes on cash and cash equivalents                             (46     )                 (92      )     \n                                                                                                                                   \n Increase in cash, cash equivalents, and restricted cash                                  5,751                     3,196          \n                                                                                                                                   \n Cash, cash equivalents, and restricted cash:                                                                                      \n Beginning of period                                                                      35,205                    29,312         \n End of period                                                                      $     40,956              $     32,508         \n                                                                                                                                   \n Supplemental non-cash disclosure                                                                                                  \n Stock issued in connection with Alline Acquisition                                 $     —                   $     3,000          \n\n ____________________                                                             \n (1)  Changes in operating assets and liabilities exclude ad fund and assets and  \n      liabilities sold or acquired.                                               \n\n REGIS CORPORATION                                                                                                                   \n \n                                                                                                                                   \n \nSystem-Wide Same-Store Sales                                                                                                       \n                                                                                                                                     \n SYSTEM-WIDE SAME-STORE SALES (1):                                                                                                   \n                                                                                                                                     \n                                         Three Months Ended                                                                          \n                                         March 31, 2026                                  March 31, 2025                              \n                                         Service         Retail           Total          Service         Retail           Total      \n                                                                                                                                     \n Supercuts                               5.4   %         (5.5   )%        5.0   %        1.4   %         (8.1   )%        1.1   %    \n SmartStyle                              (1.1  )         (17.6  )         (3.3  )        (5.1  )         (19.9  )         (7.4  )    \n Portfolio Brands                        2.7             (16.8  )         1.4            (1.0  )         (0.2   )         (0.9  )    \n                                                                                                                                     \n Total system-wide same-store sales      3.6   %         (13.7  )%        2.6   %        (0.4  )%        (11.2  )%        (1.1  )%   \n                                                                                                                                     \n                                         Nine Months Ended                                                                           \n                                         March 31, 2026                                  March 31, 2025                              \n                                         Service         Retail           Total          Service         Retail           Total      \n                                                                                                                                     \n Supercuts                               3.5   %         (7.4   )%        3.2   %        1.2   %         (9.6   )%        0.8   %    \n SmartStyle                              (2.1  )         (19.6  )         (4.6  )        (4.4  )         (18.7  )         (6.8  )    \n Portfolio Brands                        1.5             (9.6   )         0.8            (1.0  )         (8.3   )         (1.5  )    \n                                                                                                                                     \n Total system-wide same-store sales      2.0   %         (13.0  )%        1.1   %        (0.4  )%        (13.3  )%        (1.3  )%   \n\n ____________________                                                                  \n (1)  System-wide same-store sales are calculated as the total change in sales for     \n      system-wide franchise and company-owned locations that were open on a specific   \n      day of the week during the current period and the corresponding prior period.    \n      Quarterly system-wide same-store sales are the sum of the system-wide            \n      same-store sales computed on a daily basis. Franchise salons that do not         \n      report daily sales are excluded from same-store sales. System-wide same-store    \n      sales are calculated in local currencies to remove foreign currency              \n      fluctuations from the calculation.                                               \n\n REGIS CORPORATION                                                                               \n \n                                                                                               \n \nSystem-Wide Location Counts                                                                    \n                                                                                                 \n                                                               March 31,           June 30,      \n                                                               \n2026               \n2025         \n                                                                                                 \n FRANCHISE SALONS:                                                                               \n Supercuts                                                     1,648               1,711         \n SmartStyle/Cost Cutters in Walmart Stores                     998                 1,049         \n Portfolio Brands                                              779                 816           \n Total North American salons                                   3,425               3,576         \n Total International salons (1)                                72                  71            \n Total franchise salons                                        3,497               3,647         \n as a percent of total franchise and company-owned salons      92.8    %           92.5   %      \n                                                                                                 \n COMPANY-OWNED SALONS:                                                                           \n Supercuts                                                     96                  100           \n Portfolio Brands                                              177                 194           \n Total company-owned salons                                    273                 294           \n as a percent of total franchise and company-owned salons      7.2     %           7.5    %      \n                                                                                                 \n Total franchise and company-owned salons                      3,770               3,941         \n\n ____________________                                                            \n (1)  Canadian and Puerto Rican salons are included in the North American salon  \n      totals.                                                                    \n\n\nNon-GAAP Reconciliations:\n\nThis press release includes a presentation of operating income excluding\ncertain non-cash charges, adjusted EBITDA, and adjusted franchise revenue,\nwhich are non-GAAP measures. The non-GAAP measures are financial measures that\ndo not reflect United States Generally Accepted Accounting Principles (GAAP).\nWe believe our presentation of the non-GAAP measures provides meaningful\ninsight into our ongoing operating performance and a supplemental perspective\nof our results of operations. Presentation of the non-GAAP measures allows\ninvestors to review our core ongoing operating performance from the same\nperspective as management and the Board of Directors. These non-GAAP financial\nmeasures provide investors an enhanced understanding of our operations,\nfacilitate investors’ analyses and comparisons of our current and past\nresults of operations and provide insight into the prospects of our future\nperformance. We also believe the non-GAAP measures are useful to investors\nbecause they provide supplemental information that research analysts\nfrequently use to analyze financial performance.\n\nItems impacting comparability are not defined terms within U.S. GAAP.\nTherefore, our non-GAAP financial information may not be comparable to\nsimilarly titled measures reported by other companies. We determine the items\nto consider as \"items impacting comparability\" based on how management views\nour business, makes financial, operating and planning decisions, and evaluates\nthe Company's ongoing performance.\n\nThe reconciliation of U.S. GAAP operating income to non-GAAP operating income\nexcluding certain non-cash charges is included in the release.\n\nThe following items have been excluded from our non-GAAP adjusted EBITDA\nresults: stock-based compensation expense, discontinued operations, one-time\nprofessional fees and settlements, severance expense, the benefit from lease\nliability decreases in excess of previously impaired right of use asset, lease\ntermination fees, and asset retirement obligation costs.\n\nWe present adjusted revenue to provide a meaningful franchise adjusted EBITDA\nmargin, which removes non-margin revenue from total revenue to arrive at an\nadjusted margin. Margin is a common metric used by investors, however, the\nmajority of our revenue is offset by equal expense, so it does not contribute\nto our margin. We remove the non-margin revenue from this metric in order to\nshow a meaningful margin rate.\n\nThe method we use to produce non-GAAP results is not in accordance with U.S.\nGAAP and may differ from methods used by other companies. These non-GAAP\nresults should not be regarded as a substitute for corresponding U.S. GAAP\nmeasures but instead should be utilized as a supplemental measure of operating\nperformance in evaluating our business. Non-GAAP measures do have limitations\nas they do not reflect certain items that may have a material impact upon our\nreported financial results. As such, these non-GAAP measures should be viewed\nin conjunction with our financial statements prepared in accordance with U.S.\nGAAP.\n REGIS CORPORATION                                                                                                                                   \n \n                                                                                                                                                   \n \nReconciliation of U.S. GAAP Net Income to Adjusted EBITDA                                                                                          \n \n                                                                                                                                                   \n \n(Dollars in thousands)                                                                                                                             \n \n                                                                                                                                                   \n \n(Unaudited)                                                                                                                                        \n                                                                                                                                                     \n                                                  Three Months Ended March 31,                         Nine Months Ended March 31,                   \n                                                  2026                        2025                     2026                      2025                \n                                                                                                                                                     \n Reported net income                              $      735                  $      250               $     2,547               $     7,042         \n Interest expense                                        5,026                       5,087                   15,552                    14,781        \n Income tax expense (benefit)                            158                         (1     )                1,697                     (90     )     \n Depreciation and amortization                           914                         739                     2,478                     1,645         \n Long-lived asset impairment                             —                           —                       —                         352           \n EBITDA                                                  6,833                       6,075                   22,274                    23,730        \n Stock-based compensation                                (204   )                    439                     706                       2,043         \n Gain on discontinued operations                         —                           —                       —                         (8,396  )     \n Gain on earn-out liability                              —                           —                       (1,000  )                 —             \n Discrete items (1)                                      1,051                       611                     1,657                     4,525         \n Adjusted EBITDA, non-GAAP financial measure      $      7,680                $      7,125             $     23,637              $     21,902        \n\n ____________________                                                              \n (1)  Discrete items include one-time professional fees and legal settlements,     \n      severance expense, the benefit from lease liability decreases in excess of   \n      previously impaired right of use asset, and lease termination fees.          \n\n REGIS CORPORATION                                                                                                                                                                  \n \n                                                                                                                                                                                  \n \nReconciliation of Reported Franchise Adjusted EBITDA as a Percent of GAAP                                                                                                         \n Franchise Revenue                                                                                                                                                                  \n \n                                                                                                                                                                                  \n \nto Franchise Adjusted EBITDA as a Percent of Adjusted Franchise Revenue                                                                                                           \n \n                                                                                                                                                                                  \n \n(Dollars in thousands)                                                                                                                                                            \n \n                                                                                                                                                                                  \n \n(Unaudited)                                                                                                                                                                       \n                                                                                                                                                                                    \n                                                                           Three Months Ended March 31,                             Nine Months Ended March 31,                     \n                                                                           2026                          2025                       2026                       2025                 \n                                                                                                                                                                                    \n Franchise adjusted EBITDA                                                 $      6,236                  $      6,282               $     18,861               $     20,683         \n GAAP franchise revenue                                                           33,306                        38,004                    109,982                    126,548        \n Franchise adjusted EBITDA as a percent of GAAP franchise revenue                 18.7     %                    16.5     %                17.1     %                 16.3     %     \n Non-margin revenue adjustments:                                                                                                                                                    \n Franchise rental income                                                   $      (13,006  )             $      (16,866  )          $     (47,597  )           $     (58,524  )     \n Advertising fund contributions                                                   (5,215   )                    (5,203   )                (16,086  )                 (16,334  )     \n Adjusted franchise revenue                                                $      15,085                 $      15,935              $     46,299               $     51,690         \n Franchise adjusted EBITDA as a percent of adjusted franchise revenue             41.3     %                    39.4     %                40.7     %                 40.0     %     \n\n REGIS CORPORATION                                                                                                                             \n \n                                                                                                                                             \n \nReconciliation of Reported Net Income to Adjusted Net Income                                                                                 \n \n                                                                                                                                             \n \n(Dollars in thousands)                                                                                                                       \n \n                                                                                                                                             \n \n(Unaudited)                                                                                                                                  \n                                                                                                                                               \n                                             Three Months Ended March 31,                         Nine Months Ended March 31,                  \n                                             2026                        2025                     2026                     2025                \n                                                                                                                                               \n Reported net income                         $      735                  $      250               $     2,547              $     7,042         \n Stock-based compensation, net of tax               (204   )                    439                     1,121                    2,043         \n Long-lived asset impairment                        —                           —                       —                        352           \n Discontinued operations                            —                           —                       —                        (8,396  )     \n Gain on earn-out liability, net of tax             —                           —                       (780   )                 —             \n Discrete items (1)                                 1,102                       607                     1,861                    4,574         \n Adjusted net income                         $      1,633                $      1,296             $     4,749              $     5,615         \n\n ____________________                                                              \n (1)  Discrete items include one-time professional fees and legal settlements,     \n      severance expense, the benefit from lease liability decreases in excess of   \n      previously impaired right of use asset, lease termination fees and asset     \n      retirement obligation costs, and deferred tax asset impacts.                 \n\n REGIS CORPORATION                                                                                                                                     \n \n                                                                                                                                                     \n \nReconciliation of Reported Diluted Earnings Per Share to Adjusted Diluted                                                                            \n Earnings Per Share                                                                                                                                    \n \n                                                                                                                                                     \n \n(Unaudited)                                                                                                                                          \n                                                                                                                                                       \n                                                      Three Months Ended March 31,                         Nine Months Ended March 31,                 \n                                                      2026                        2025                     2026                     2025               \n                                                                                                                                                       \n Reported diluted earnings per share                  $      0.26                 $      0.08              $     0.89               $     3.00         \n Stock compensation                                          (0.07  )                    0.15                    0.38                     0.72         \n Long-lived asset impairment                                 —                           —                       —                        0.12         \n Discontinued operations                                     —                           —                       —                        (2.94  )     \n Gain on earn-out liability                                  —                           —                       (0.27  )                 —            \n Discrete items (1)                                          0.38                        0.20                    0.65                     1.60         \n Impact of change in weighted average shares (2)             —                           —                       —                        (0.53  )     \n Adjusted diluted earnings per share                  $      0.57                 $      0.43              $     1.65               $     1.97         \n\n ____________________                                                                \n (1)  Discrete items include one-time professional fees and legal settlements,       \n      severance expense, the benefit from lease liability decreases in excess of     \n      previously impaired right of use asset, lease termination fees and asset       \n      retirement obligation costs, and deferred tax asset impacts.                   \n (2)  Non-GAAP net income per share reflects the weighted average shares associated  \n      with non-GAAP net income, which includes the dilutive effect of common stock   \n      equivalents. The impact of the adjustments described above result in the       \n      effect of the common stock equivalents to be dilutive to the non-GAAP net      \n      income per share.                                                              \n\n REGIS CORPORATION                                                                                                                                \n \n                                                                                                                                                \n \nReconciliation of Reported General and Administrative Expenses to General and                                                                   \n Administrative Expenses Used to Calculate Adjusted EBITDA                                                                                        \n \n                                                                                                                                                \n \n(Dollars in thousands)                                                                                                                          \n \n                                                                                                                                                \n \n(Unaudited)                                                                                                                                     \n                                                                                                                                                  \n                                              Three Months Ended March 31,                          Nine Months Ended March 31,                   \n                                              2026                        2025                      2026                      2025                \n                                                                                                                                                  \n Reported general and administrative          $      9,975                $      11,235             $     31,590              $     36,424        \n Discrete general and administrative (1)             (692   )                    (622    )                (1,204  )                 (4,584  )     \n Stock-based compensation                            204                         (439    )                (706    )                 (2,043  )     \n Adjusted general and administrative          $      9,487                $      10,174             $     29,680              $     29,797        \n\n ____________________                                                              \n (1)  Discrete items include one-time professional fees and legal settlements and  \n      severance expense.                                                           \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260513113503/en/\n(https://www.businesswire.com/news/home/20260513113503/en/)\n\nREGIS CORPORATION: \n\nKersten Zupfer\n\ninvestorrelations@regiscorp.com (mailto:investorrelations@regiscorp.com)\n\nHAYDEN IR: \n\nJames Carbonara\n\nJames@haydenir.com \n(mailto:James@haydenir.com) \n(646) 755-7412\n\nBrett Maas\n\nbrett@haydenir.com \n(mailto:brett@haydenir.com) \n(646) 536-7331\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-05-13T10:00:00.722448091Z","server_sent_at_ms":1778666400722},"received_at":"2026-05-13T10:00:00.927Z","source_url":"https://www.businesswire.com/news/home/20260513113503/en/"},"analysis":{"id":"23676","press_release_id":"33000","analysis_json":{"industry":{"label":"Specialty Retail","sector":"Consumer Discretionary"},"redFlags":[],"eventType":"earnings","narrative":"Regis Corporation reported Q3 fiscal 2026 revenue of $52.4 million, a decrease of 8.1% year-over-year, driven by lower royalties, fees, and non-margin franchise rental income.\n\nSame-store sales showed strong growth, with Supercuts up 5.0%, company-owned salons up 9.6%, and consolidated sales up 2.6%.\n\nOperating income improved to $5.7 million from $5.0 million, and net income from continuing operations increased to $0.7 million from $0.3 million, with diluted EPS rising to $0.26 from $0.08.\n\nAdjusted EBITDA for the quarter was $7.6 million, up from $7.1 million in the prior year, reflecting disciplined cost management and operational improvements.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Despite revenue decline, Regis shows strong same-store sales growth and improved profitability."},"keyFigures":{"eps":0.26,"revenue":52407000,"guidance":"","revenueYoy":"-8.1%","customDimensions":{"net_income":735000,"adjusted_ebitda":7680000,"operating_income":5717000,"adjusted_diluted_eps":0.57,"same_store_sales_supercuts":"5.0%","same_store_sales_consolidated":"2.6%","same_store_sales_company-Owned":"9.6%"}},"quotedText":"Our third quarter results reflect another quarter of solid execution, demonstrated by increasing profitability and solid cash flow generation.","namedEntities":{"people":[{"name":"Susan Lintonsmith","role":"President and CEO"},{"name":"Kersten Zupfer","role":"Executive Vice President and CFO"}],"products":[],"companies":[{"name":"Regis Corporation","ticker":"RGS"},{"name":"Hayden IR","relationship":"IR firm"}],"dollarAmounts":[{"amount":"$52.4 million","context":"Q3 fiscal 2026 revenue"},{"amount":"$57.0 million","context":"Q3 fiscal 2025 revenue"},{"amount":"$5.7 million","context":"Q3 fiscal 2026 operating income"},{"amount":"$5.0 million","context":"Q3 fiscal 2025 operating income"},{"amount":"$0.26","context":"Q3 fiscal 2026 diluted EPS"},{"amount":"$0.08","context":"Q3 fiscal 2025 diluted EPS"},{"amount":"$7.6 million","context":"Q3 fiscal 2026 adjusted EBITDA"},{"amount":"$7.1 million","context":"Q3 fiscal 2025 adjusted EBITDA"},{"amount":"$22.9 million","context":"cash and cash equivalents as of March 31, 2026"},{"amount":"$127.1 million","context":"outstanding borrowings as of March 31, 2026"},{"amount":"$31.9 million","context":"available total liquidity as of March 31, 2026"}]},"materialImpact":{"score":4,"reasoning":"Despite a decline in consolidated revenue, the company showed strong same-store sales growth, improved operating income, and positive cash flow. The EPS beat and adjusted EBITDA growth are significant positive indicators."},"tickerRelevance":{"others":[],"primary":"RGS"},"globalImportance":35,"audienceRelevance":50,"eventTypeSecondary":[],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"earnings","sectorWeight":"Consumer Discretionary","materialImpact":"strong same-store sales growth and improved profitability"}},"event_type":"earnings","event_type_secondary":null,"sentiment":"bullish","material_impact_score":4,"narrative":"Regis Corporation reported Q3 fiscal 2026 revenue of $52.4 million, a decrease of 8.1% year-over-year, driven by lower royalties, fees, and non-margin franchise rental income.\n\nSame-store sales showed strong growth, with Supercuts up 5.0%, company-owned salons up 9.6%, and consolidated sales up 2.6%.\n\nOperating income improved to $5.7 million from $5.0 million, and net income from continuing operations increased to $0.7 million from $0.3 million, with diluted EPS rising to $0.26 from $0.08.\n\nAdjusted EBITDA for the quarter was $7.6 million, up from $7.1 million in the prior year, reflecting disciplined cost management and operational improvements.","key_figures":{"eps":0.26,"revenue":52407000,"guidance":"","revenueYoy":"-8.1%","customDimensions":{"net_income":735000,"adjusted_ebitda":7680000,"operating_income":5717000,"adjusted_diluted_eps":0.57,"same_store_sales_supercuts":"5.0%","same_store_sales_consolidated":"2.6%","same_store_sales_company-Owned":"9.6%"}},"named_entities":{"people":[{"name":"Susan Lintonsmith","role":"President and CEO"},{"name":"Kersten Zupfer","role":"Executive Vice President and CFO"}],"products":[],"companies":[{"name":"Regis Corporation","ticker":"RGS"},{"name":"Hayden IR","relationship":"IR firm"}],"dollarAmounts":[{"amount":"$52.4 million","context":"Q3 fiscal 2026 revenue"},{"amount":"$57.0 million","context":"Q3 fiscal 2025 revenue"},{"amount":"$5.7 million","context":"Q3 fiscal 2026 operating income"},{"amount":"$5.0 million","context":"Q3 fiscal 2025 operating income"},{"amount":"$0.26","context":"Q3 fiscal 2026 diluted EPS"},{"amount":"$0.08","context":"Q3 fiscal 2025 diluted EPS"},{"amount":"$7.6 million","context":"Q3 fiscal 2026 adjusted EBITDA"},{"amount":"$7.1 million","context":"Q3 fiscal 2025 adjusted EBITDA"},{"amount":"$22.9 million","context":"cash and cash equivalents as of March 31, 2026"},{"amount":"$127.1 million","context":"outstanding borrowings as of March 31, 2026"},{"amount":"$31.9 million","context":"available total liquidity as of March 31, 2026"}]},"model_name":"Qwen/Qwen2.5-72B-Instruct-AWQ","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-05-13T10:01:00.706Z","global_importance":35,"audience_relevance":50,"importance_components":{"tickerTier":"mid-cap","eventGravity":"earnings","sectorWeight":"Consumer Discretionary","materialImpact":"strong same-store sales growth and improved profitability"}},"durationMs":36095,"modelName":"george-droid-qwen-72b"}}