Regis Corporation Reports Revenue Growth and Net Income Recovery in Latest Quarter

Regis Corporation reported its financial results for the three and nine months ended March 31, 2025, revealing a total revenue of $56.96 million for the quarter, an increase from $49.18 million in the same period last year. For the nine months, revenue totaled $149.74 million, down from $153.61 million in the prior year. The company achieved a net income of $250,000 for the quarter, a significant recovery from a net loss of $2.33 million in the same quarter of 2024. For the nine-month period, Regis reported a net income of $7.04 million, compared to a loss of $141,000 in the previous year.

The financial performance reflects notable changes compared to the previous fiscal period, particularly driven by the acquisition of Alline Salon Group, which added 314 salons to Regis's portfolio. This acquisition, completed in December 2024, contributed to a substantial increase in company-owned salon revenue, which surged to $18.95 million for the quarter, compared to just $1.32 million in the same period last year. However, the company experienced declines in franchise-related revenues, including royalties and franchise rental income, primarily due to a decrease in the number of franchise salons and negative same-store sales.

Operationally, Regis's total salon count as of March 31, 2025, stood at 4,087 locations, comprising 3,776 franchised salons and 311 company-owned salons. The company’s employee headcount increased to 1,860, largely due to the Alline acquisition. The franchise segment reported a decline in same-store sales of 0.7% for the quarter, while the company-owned segment saw improved performance, with adjusted EBITDA rising to $843,000 from a loss of $773,000 in the prior year.

Looking ahead, Regis Corporation's management expressed optimism regarding future growth, particularly from the integration of Alline salons and the potential for operational synergies. The company anticipates that the acquisition will enhance its market position and drive revenue growth in the coming quarters. However, challenges remain, including the need to stabilize franchise salon performance and navigate market conditions that may impact consumer spending. The company maintains a focus on improving its cost structure and leveraging its expanded salon network to achieve long-term profitability.