Regis Corporation Reports Q3 Revenue Decline, Nine-Month Revenue Growth and Improved Net Income

Regis Corporation reported its financial results for the three and nine months ended March 31, 2026, revealing a total revenue of $52.4 million for the quarter, a decrease of 8% from $57.0 million in the same period last year. For the nine months, revenue increased to $168.5 million, up from $149.7 million in the prior year. The company’s net income for the quarter was $735,000, or $0.29 per share, compared to $250,000, or $0.10 per share, in the previous year. For the nine months, net income was $2.5 million, or $1.01 per share, compared to a loss of $1.4 million, or $(0.58) per share, in the same period last year.

The decline in quarterly revenue was primarily attributed to a decrease in franchise salon count, which fell by 150 locations, and a significant drop in franchise rental income, which decreased by $3.9 million, or 23.1%. The company-owned salon revenue, however, saw a modest increase of $0.1 million for the quarter and a substantial increase of $35.3 million for the nine months, largely due to the acquisition of Alline Salon Group, which added 314 salons to Regis's portfolio. The Alline acquisition, completed in December 2024, has been a strategic focus for Regis, allowing the company to operate more directly alongside its franchisees.

Operationally, Regis reported a total of 3,770 salons as of March 31, 2026, comprising 3,497 franchised and 273 company-owned locations. The company’s employee headcount increased to 1,655, with 1,497 employees acquired through the Alline acquisition. The company also noted a significant improvement in company-owned salon adjusted EBITDA, which rose to $4.8 million for the nine months ended March 31, 2026, compared to $1.2 million in the prior year, reflecting the operational efficiencies gained from the acquisition.

In terms of financial health, Regis reported cash and cash equivalents of $22.9 million as of March 31, 2026, an increase from $17.0 million a year earlier. The company’s total liabilities decreased to $367.1 million from $413.3 million, while shareholders' equity rose to $189.5 million from $185.6 million. The company’s debt to capitalization ratio remained stable at 40.2%, indicating a consistent leverage position. Looking ahead, Regis expressed confidence in its liquidity and operational strategies, emphasizing its ability to meet obligations and capitalize on growth opportunities stemming from the Alline acquisition and ongoing franchise operations.