Regis (RGS) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 saw strengthened business fundamentals, profitable growth, and consistent positive cash from operations for seven consecutive quarters.

• Revenue reached $224.5 million, adjusted EBITDA was $32.8 million, and unrestricted cash from operations exceeded $13 million.

• Same-store sales grew 3.0% at Supercuts and 0.9% consolidated for the year, with Supercuts leading growth.

• Strategic focus for fiscal 2027 is on brand strength, driving guest traffic, and improving salon portfolio health while mitigating closures.

• Management is prioritizing cost of debt reduction and actively exploring refinancing alternatives.

Financial highlights

• Fiscal 2026 revenue increased by $14.4 million year-over-year to $224.5 million, driven by higher company-owned salon revenue.

• Adjusted EBITDA rose to $32.8 million from $31.6 million in the prior year.

• Adjusted net income was $7.8 million, up from $7.6 million, while adjusted diluted EPS was $2.70 versus $2.85.

• Operating income for the year increased to $24.4 million from $19.9 million.

• Q4 revenue was $56 million, down 7.3% year-over-year, mainly due to lower franchise rental income.

Outlook and guidance

• Fiscal 2027 priorities include modernizing Supercuts, optimizing company-owned salons, and revitalizing SmartStyle.

• Closures in fiscal 2027 are expected to be similar to 2026, with fewer company-owned salon closures anticipated.

• Continued focus on cost discipline, cash generation, and targeted growth investments.

• Management expects to build on the stronger foundation in fiscal 2027, focusing on increasing traffic, strengthening brands, and delivering value to drive sustainable growth.