Regis (RGS) investor relations material

Executive summary

• Leadership transition with a new interim CEO focused on continuity and transformation, supported by a strategic transformation and digital initiatives partnership with Forum Three.

• Strategic priorities include Supercuts brand transformation, optimizing company-owned salons, and accelerating digital, loyalty, and operational initiatives.

• Acquisition of 300 Align/Alline salons converted to company-owned, driving revenue and operational improvements.

• Achieved consolidated revenue of $60.4M in Q4 and $210.1M for the year, with third consecutive quarter of positive cash from operations.

• Released $116.3M valuation allowance on deferred tax assets, reflecting improved outlook and confidence in long-term profitability.

Financial highlights

• Q4 revenue rose 22.3% year-over-year to $60.4M, driven by Align/Alline acquisition and same-store sales growth.

• Q4 operating income increased to $7.3M, adjusted EBITDA up 24.8% to $9.7M; full-year adjusted EBITDA was $31.6M.

• Q4 net income was $116.5M, up from $91.2M, driven by a $115.5M income tax benefit from the valuation allowance release.

• Third consecutive quarter of positive cash from operations; $13.7M cash from operations for the year.

• Net decrease of 744 franchise locations, mainly due to Align/Alline conversion and underperforming store closures.

Outlook and guidance

• Expecting higher unrestricted cash generation in FY26 due to operational strength and absence of nonrecurring expenses.

• Marketing spend to increase in FY26 as accumulated ad fund cash is deployed.

• Anticipate FY25 to be the last year of large-scale closures.

• Management expresses confidence in continued profitability and long-term value creation, supported by strategic transformation and digital initiatives.