Transformation Efforts Gain Traction Across Supercuts and Corporate Networks

Q2 Same-Store Sales for Supercuts Up 2.0%, Company-Owned Salons up 4.3%, Regis Consolidated Slightly Lower as Expected Due to Franchise Mix

Loyalty Membership Enrollment Grows Steadily

Regis Corporation (NasdaqGM: RGS), a leader in the haircare industry, today announced financial results for the second fiscal quarter ended December 31, 2025.

Jim Lain, Regis Corporation's Interim President and Chief Executive Officer, commented, “Our second quarter results demonstrate improved execution and continued momentum, with same-store sales increasing 2.0% at Supercuts and 4.3% at company-owned salons. We delivered year-over-year improvements in operating income and adjusted EBITDA, and generated positive cash from operations for the fifth consecutive quarter, further strengthening our financial flexibility.”

Lain continued, “We remain focused on the transformation of Supercuts while continuing to optimize the performance of our company-owned salons, where we are seeing early signs of progress. At the same time, we are selectively leveraging verified operating improvements across our broader brand portfolio. This approach strengthens the shared operating backbone of each brand, positioning Regis for improving performance. We are confident in our progress and remain committed to building a stronger, more modern Regis capable of delivering long-term, sustainable growth.”

“Disciplined capital management remains a core priority as we focus on reducing our debt service and delivering long-term shareholder value,” said Kersten Zupfer, Executive Vice President and Chief Financial Officer. “We are speaking with potential partners to evaluate refinancing opportunities as we approach the two-year anniversary of our credit agreement in June 2026.”

Financial Highlights:

Second quarter fiscal 2026 compared to second quarter fiscal 2025:

• Consolidated revenue of $57.1 million versus $46.7 million, an increase of $10.4 million; driven by increased company-owned salon revenue as a result of the Alline acquisition, partially offset by lower royalties, fees, and non-margin franchise rental income
• Same-store sales: Supercuts: 2.0%; Consolidated: (0.1)%
• Operating income of $6.2 million versus $5.5 million
• Fifth consecutive quarter of positive cash from operations
• Net income of $0.5 million versus $7.6 million, inclusive of $7.4 million of income from discontinued operations
  • Diluted EPS of $0.16 versus $2.71, inclusive of $2.63 of income from discontinued operations
• Adjusted net income flat at $1.7 million
  • Adjusted diluted EPS of $0.60 versus $0.61
• Adjusted EBITDA of $8.0 million versus $7.1 million

First half fiscal 2026 compared to first half fiscal 2025:

• Consolidated revenue of $116.1 million versus $92.8 million, an increase of $23.3 million; driven by increased company-owned salon revenue as a result of the Alline acquisition, partially offset by lower royalties, fees, and non-margin franchise rental income
• Same-store sales: Supercuts: 2.2%; Consolidated: 0.4%
• Operating income of $12.1 million versus $7.6 million
• Cash from operations of $3.9 million versus $0.8 million, an increase of $3.1 million
  • $4.2 million of cash from operations excluding the effect of restricted cash ad fund
• Net income of $1.8 million versus $6.8 million, inclusive of $8.4 million of income from discontinued operations
  • Diluted EPS of $0.64 versus $2.90, inclusive of $3.58 of income from discontinued operations
• Adjusted net income of $3.1 million versus $4.3 million
  • Adjusted diluted EPS of $1.10 versus $1.51
• Adjusted EBITDA of $16.0 million versus $14.8 million in prior year

Revenue

Total consolidated revenue of $57.1 million in the second quarter of 2026, and $116.1 million in the first half of 2026, improved $10.4 million and $23.3 million, respectively. The improvement was driven primarily by an increase in company-owned salon revenue resulting from the Alline acquisition on December 19, 2024, partially offset by lower royalties and non-margin franchise rental income.

Operating Income

Regis reported second quarter 2026 operating income of $6.2 million, an improvement of $0.7 million compared to $5.5 million in the second quarter of 2025. Regis reported first half 2026 operating income of $12.1 million, an improvement of $4.5 million compared to $7.6 million in the first half of 2025. The year-over-year improvement in operating income was primarily driven by operating income from the Alline salons and reductions in general and administrative expenses, partially offset by lower royalties.

Income (Loss) from Continuing Operations

Regis reported second quarter 2026 net income from continuing operations of $0.5 million, or $0.16 per diluted share, compared to net income from continuing operations of $0.2 million, or $0.07 per diluted share, in the second quarter of 2025. The Company reported first half 2026 net income from continuing operations of $1.8 million, or $0.64 per diluted share, compared to a net loss from continuing operations of $1.6 million, or $0.68 per share, in the first half of 2025. The year-over-year increase was driven primarily by an increase in company-owned salon revenue and reductions in general and administrative expenses, partially offset by lower royalties.

Net Income

The Company reported second quarter 2026 net income of $0.5 million, or $0.16 per diluted share, compared to net income of $7.6 million, or $2.71 per diluted share, for the same period last year. The Company reported first half 2026 net income of $1.8 million, or $0.64 per diluted share, compared to net income of $6.8 million, or $2.90 per diluted share, for the first half of 2025. The higher income in the prior year periods was driven primarily by income from discontinued operations, which did not recur in the current year periods.

Adjusted EBITDA

Second quarter and first half 2026 adjusted EBITDA of $8.0 million and $16.0 million improved $0.9 million and $1.2 million, respectively, compared to adjusted EBITDA of $7.1 million and $14.8 million in the same periods last year. The improvement in both periods is primarily related to higher company-owned salon revenue and reductions in general and administrative expenses, offset partially by lower franchise royalties and non-cash fee recognition.

Second Quarter Fiscal Year 2026 Segment Results

Franchise Revenue

Second quarter franchise revenue was $37.9 million, a $5.4 million, or 12.5%, decrease compared to the prior year quarter. First half 2026 franchise revenue was $76.7 million, an $11.8 million, or 13.3%, decrease compared to the first half of the prior year. Non-margin franchise rental income was the primary driver of the decline due to fewer franchise salons in the current year partially as a result of the Alline acquisition.

Royalties were $13.6 million and $27.7 million, a $1.2 million and $2.8 million, or 8.1% and 9.2%, decrease for the second quarter and first half 2026, respectively, versus the same periods last year, due primarily to fewer franchise salons.

Franchise Adjusted EBITDA

Second quarter franchise adjusted EBITDA of $6.2 million decreased $0.2 million. First half 2026 franchise adjusted EBITDA of $12.6 million declined $1.8 million year-over-year. The declines primarily related to lower royalties and non-cash fees in the current year period, offset partially by lower general and administrative expenses.

Company-Owned Salon Revenue

Second quarter revenue for the company-owned salon segment increased $15.7 million versus the prior year to $19.2 million. First half 2026 revenue for the company-owned salon segment increased $35.2 million versus the prior year to $39.4 million. The year-over-year increases in revenue are driven by an increase in salon count as a result of the Alline acquisition on December 19, 2024.

Company-Owned Salon Adjusted EBITDA

Second quarter and first half 2026 company-owned salon adjusted EBITDA improved $1.1 million and $2.9 million, respectively, compared to the prior year periods, due primarily to increased contribution generated by the greater salon count as a result of the Alline acquisition.

Balance Sheet and Cash Flow

The Company ended the second quarter of fiscal year 2026 with $18.4 million in cash and cash equivalents, $126.0 million in outstanding borrowings ($116.7 million term loan, $8.3 million paid in kind interest, and $1.0 million revolver draw) and available total liquidity of $27.4 million. Net cash provided by operating activities for the six months ended December 31, 2025, totaled $3.9 million, an improvement of $3.1 million from the six months ended December 31, 2024, primarily due to higher operating income in the current year period.

Non-GAAP Reconciliations

For GAAP to non-GAAP reconciliations, please refer to the attached section titled "Non-GAAP Reconciliations." A complete reconciliation of reported earnings to adjusted earnings is included in this press release.

Earnings Webcast

Regis Corporation will host a conference call via webcast discussing second quarter results today, February 5, 2026, at 7:30 a.m. Central time. Interested parties are invited to participate in the live webcast by registering for the event at www.regiscorp.com/investor-relations.html. A replay of the presentation will be available on our website at the same web address.

About Regis Corporation

Regis Corporation (NasdaqGM:RGS) is a leader in the haircare industry. As of December 31, 2025, the Company franchised or owned 3,829 locations. Regis’ franchised and corporate locations operate under concepts such as Supercuts^®, SmartStyle^®, Cost Cutters^®, Roosters^® and First Choice Haircutters^®. For additional information about the Company, please visit the Investor Relations section of the corporate website at www.regiscorp.com.

This press release contains or may contain "forward-looking statements" within the meaning of the federal securities laws, including statements concerning anticipated future events and expectations that are not historical facts. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this document reflect management's best judgment at the time they are made, but all such statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed in or implied by the statements herein. Such forward-looking statements are often identified herein by use of words including, but not limited to, "may," "will," "believe," "project," "forecast," "expect," "estimate," "anticipate," and "plan." These uncertainties include a potential material adverse impact on our business and results of operations as a result of changes in consumer shopping trends and changes in manufacturer distribution channels; laws and regulations could require us to modify current business practices and incur increased costs including increases in minimum wages; changes in the general economic environment; changes in consumer tastes, hair product innovation, fashion trends and consumer spending patterns; our ability to realize the anticipated benefits of the Alline acquisition; reliance on franchise royalties and overall success of our franchisees’ salons; our salons' dependence on a third-party supplier agreement for merchandise; our and our franchisees' ability to attract, train and retain talented stylists and salon leaders; the success of our franchisees, which operate independently; data security and privacy compliance and our ability to manage cyber threats and protect the security of potentially sensitive information about our guests, franchisees, employees, vendors or Company information; the ability of the Company to maintain a satisfactory relationship with Walmart; marketing efforts to drive traffic to our franchisees' and company-owned salons; our ability to maintain and enhance the value of our brands; reliance on legacy information technology systems; reliance on external vendors; the use of social media; the effectiveness of our enterprise risk management program; potential challenges with the planning or implementation of our new enterprise resource planning system; our ability to minimize risks associated with owning and operating additional salons; ability to generate sufficient cash flow to satisfy our debt service obligations; compliance with covenants in our financing arrangement; premature termination of agreements with our franchisees; the continued ability of the Company to implement cost reduction initiatives and achieve expected cost savings; continued ability to compete in our business markets; potential liabilities related to the employee retention credit received by Alline; reliance on our management team and other key personnel, including a successful search for a new CEO; the ability to attract and retain key personnel; the continued ability to maintain an effective system of internal control over financial reporting; changes in tax exposure; the ability of our Tax Preservation Plan to protect the future availability of the Company's tax assets; potential litigation and other legal or regulatory proceedings; or other factors not listed above. Additional information concerning potential factors that could affect future financial results is set forth under Item 1A on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further disclosures made in our subsequent annual and periodic reports filed or furnished with the SEC on Forms 10-K, 10-Q, and 8-K and Proxy Statements on Schedule 14A.

Non-GAAP Reconciliations:

This press release includes a presentation of operating income excluding certain non-cash charges, adjusted EBITDA, and adjusted franchise revenue, which are non-GAAP measures. The non-GAAP measures are financial measures that do not reflect United States Generally Accepted Accounting Principles (GAAP). We believe our presentation of the non-GAAP measures provides meaningful insight into our ongoing operating performance and a supplemental perspective of our results of operations. Presentation of the non-GAAP measures allows investors to review our core ongoing operating performance from the same perspective as management and the Board of Directors. These non-GAAP financial measures provide investors an enhanced understanding of our operations, facilitate investors’ analyses and comparisons of our current and past results of operations and provide insight into the prospects of our future performance. We also believe the non-GAAP measures are useful to investors because they provide supplemental information that research analysts frequently use to analyze financial performance.

Items impacting comparability are not defined terms within U.S. GAAP. Therefore, our non-GAAP financial information may not be comparable to similarly titled measures reported by other companies. We determine the items to consider as "items impacting comparability" based on how management views our business, makes financial, operating and planning decisions, and evaluates the Company's ongoing performance.

The reconciliation of U.S. GAAP operating income to non-GAAP operating income excluding certain non-cash charges is included in the release.

The following items have been excluded from our non-GAAP adjusted EBITDA results: stock-based compensation expense, discontinued operations, one-time professional fees and settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired right of use asset, lease termination fees and asset retirement obligation costs.

We present adjusted revenue to provide a meaningful franchise adjusted EBITDA margin, which removes non-margin revenue from total revenue to arrive at an adjusted margin. Margin is a common metric used by investors, however, the majority of our revenue is offset by equal expense, so it does not contribute to our margin. We remove the non-margin revenue from this metric in order to show a meaningful margin rate.

The method we use to produce non-GAAP results is not in accordance with U.S. GAAP and may differ from methods used by other companies. These non-GAAP results should not be regarded as a substitute for corresponding U.S. GAAP measures but instead should be utilized as a supplemental measure of operating performance in evaluating our business. Non-GAAP measures do have limitations as they do not reflect certain items that may have a material impact upon our reported financial results. As such, these non-GAAP measures should be viewed in conjunction with our financial statements prepared in accordance with U.S. GAAP.

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