Regis Corporation (RGS) Q1 2026 Earnings Report

Summary of key QQ1 2026 metrics and plain-language interpretation:
- Revenue: $58.96 million, up 28% YoY; increment driven by Align-acquired company-owned salons and 0.9% same-store sales growth. This indicates effective monetization of a larger salon base and ongoing pricing/execution benefits.
- Adjusted EBITDA: $8.0 million, +$0.4 million YoY; contribution from Align offset by franchise royalty reductions. EBITDA margin implied by EBITDA/revenue is roughly 13.5% (0.1345 EBITDAR ratio in reported metrics), in line with a mid-teens range for franchised salon operators during a transformation phase.
- Operating income: $5.92 million, up 177% YoY (per company commentary on the quarter), reflecting higher company-owned salon contribution and disciplined cost control.
- Net income / EPS: Net income $1.36 million; diluted EPS $0.49 (GAAP); reported earnings benefited from higher operating income and lower amortization of acquisition-related items, though YoY net income is shown as negative in some metric lines due to base effects and non-operating items in prior periods. Basic EPS reported as $0.56 is shown in the data view; diluted EPS is $0.49.
- Cash flow: Operating cash flow $2.28 million; free cash flow $1.89 million; quarterly ad fund cash $1.1 million; unrestricted core cash flow $1.2 million. The quarter marks the fourth consecutive period of positive cash from operations and highlights improving working capital dynamics and cash generation capabilities.
- Balance sheet and liquidity: Cash and equivalents at period-end $35.77 million; unrestricted cash $16.6 million; total available liquidity $25.5 million (including revolver capacity). Debt: total debt $235.53 million with net debt of $218.97 million. Operating lease liabilities related to franchise salon leases total about $211 million, which are not included in debt per management’s presentation and are expected to decline as leases mature.
- Franchise vs. company-owned mix: Franchise segment adjusted EBITDA $6.4 million (down from $8.0m YoY, reflecting lower royalties/fees but partly offset by lower G&A); company-owned salons adjusted EBITDA $1.6 million (improved due to greater salon count and productivity gains).
- Store activity: Net closures were 443 year-over-year (excluding Align conversions), with 54 closures in the just-ended quarter; management expects 2025-level closure activity to trend down and not recur at prior peak levels.
- Brand and customer metrics: Supercuts same-store sales up 2.5% in QQ1; loyalty program participation rose to 40% from 36% prior quarter, signaling improved guest engagement and potential to drive higher traffic and spend over time.