Regis (RGS) Q2 2026 earnings summary

Executive summary

• Focused on building a more durable, modern, and disciplined organization to sustain cash generation and long-term value creation, with Q2 showing continued progress despite traffic headwinds.

• Transformation strategy execution is ongoing, with improvements in brand-level performance and operational discipline.

• Q2 2026 saw same-store sales rise 2.0% at Supercuts and 4.3% at company-owned salons, with consolidated same-store sales nearly flat at -0.1% due to franchise mix.

• Operated 3,829 locations as of December 31, 2025, with 3,551 franchised and 278 company-owned salons, reflecting the Alline acquisition and net closures of 96 franchise and 16 company-owned salons in six months.

• Positive cash from operations was generated for the fifth consecutive quarter, enhancing financial flexibility.

Financial highlights

• Q2 2026 consolidated revenue increased to $57.1 million from $46.7 million year-over-year, mainly due to the Alline acquisition.

• Adjusted EBITDA for Q2 was $8.0 million, up from $7.1 million year-over-year; year-to-date Adjusted EBITDA reached $16.0 million, up $1.2 million.

• GAAP operating income increased to $6.2 million from $5.5 million year-over-year.

• Net income from continuing operations was $0.5 million, up from $0.2 million in Q2 2025; prior year net income included $7.4 million from discontinued operations.

• Cash provided by operating activities for six months was $3.9 million, up from $0.8 million year-over-year.

Outlook and guidance

• Expecting a meaningful increase in unrestricted cash from core operations for fiscal 2026, supported by operational strength and a full year of Alline results.

• Anticipate franchise closures in the second half of fiscal 2026 to be similar to the first half, mainly involving underperforming stores.

• Management believes liquidity, cash on hand, and borrowing capacity are sufficient to meet obligations for the next twelve months and until credit agreement maturity in June 2029.

• Management remains focused on transformation, cost discipline, and leveraging operational improvements across brands.

• Ongoing evaluation of refinancing opportunities as the credit agreement approaches its two-year anniversary in June 2026.