Regis Corporation achieved a 22.3% revenue increase to $57.1 million in its fiscal second quarter ended December 31, 2025, fueled primarily by contributions from the Alline acquisition, while adjusted EBITDA improved to $8.0 million and operating income rose to $6.2 million. Same-store sales grew 2.0% at Supercuts and 4.3% at company-owned salons, underscoring operational progress despite a slight consolidated decline of 0.1%. The company maintained positive cash flow from operations for the fifth straight quarter and highlighted ongoing transformation initiatives across its brands.
Fiscal Q2 2026 Financial Performance
Regis Corporation, a prominent player in the haircare industry with a portfolio including Supercuts, SmartStyle, Cost Cutters, Roosters, and First Choice Haircutters, delivered a quarter of notable top-line expansion and profitability gains. Consolidated revenue reached $57.1 million, marking a substantial $10.4 million improvement over the prior-year period’s $46.7 million. This growth stemmed largely from the integration of salons acquired through the Alline transaction completed in late 2024, which significantly bolstered the company-owned segment.
Operating income climbed to $6.2 million, up $0.7 million from $5.5 million in the comparable quarter, reflecting higher contributions from company-owned locations and disciplined reductions in general and administrative expenses. These gains were partially tempered by lower royalty and fee income from the franchise business.
Net income from continuing operations stood at $0.5 million, or $0.16 per diluted share. Adjusted net income remained stable at $1.7 million, translating to adjusted diluted earnings per share of $0.60, compared to $0.61 in the prior year. Adjusted EBITDA advanced to $8.0 million, a $0.9 million increase driven by the revenue mix shift and cost controls.
Cash generation remained a strength, with the company posting positive cash flow from operations for the fifth consecutive quarter. This consistent performance enhances financial flexibility amid ongoing debt management efforts.
Segment Breakdown
The company’s operations are divided into franchise and company-owned salons, revealing divergent trends shaped by strategic shifts.
Franchise Segment Franchise revenue decreased to $37.9 million from $43.3 million, a 12.5% decline attributable to a reduced salon count (3,551 versus 3,925) and lower non-margin rental income following the Alline integration. Royalties fell 8.1% to $13.6 million, while fees dropped 37.9% to $1.8 million. Franchise rental income declined 14.0% to $17.2 million. Despite these pressures, adjusted EBITDA for the segment held relatively steady at $6.2 million, with margin expansion to 16.5% of revenue (from 14.8%). Same-store sales in the franchise network edged down 0.4%.
Company-Owned Salons Segment In contrast, company-owned salons generated revenue of $19.2 million, a dramatic rise from $3.5 million in the prior year, directly reflecting the addition of locations from the Alline acquisition. Same-store sales in this segment increased 4.3%, indicating early positive traction from operational enhancements. Adjusted EBITDA rose to $1.8 million from $0.7 million, though the margin as a percentage of revenue moderated to 9.4% due to integration dynamics.
The total network comprised 3,829 locations as of quarter-end, with franchise salons dominating the footprint.
Key Metrics Comparison
| Metric | Q2 FY2026 | Q2 FY2025 | Change |
|---|---|---|---|
| Consolidated Revenue | $57.1M | $46.7M | +22.3% |
| Operating Income | $6.2M | $5.5M | +$0.7M |
| Adjusted EBITDA | $8.0M | $7.1M | +$0.9M |
| Net Income (Continuing Ops) | $0.5M | N/A* | N/A |
| Diluted EPS | $0.16 | $2.71* | N/A |
| Adjusted Diluted EPS | $0.60 | $0.61 | -$0.01 |
| Supercuts Same-Store Sales | +2.0% | N/A | N/A |
| Company-Owned Same-Store Sales | +4.3% | N/A | N/A |
| Consolidated Same-Store Sales | -0.1% | N/A | N/A |
*Prior year net income and EPS included significant contributions from discontinued operations.
First Half Performance
Through the first six months of fiscal 2026, trends mirrored quarterly results with amplified scale. Consolidated revenue grew to $116.1 million from $92.8 million. Operating income improved to $12.1 million from $7.6 million, and adjusted EBITDA rose to $16.0 million from $14.8 million. Cash from operations totaled $3.9 million, up from $0.8 million. Same-store sales showed resilience, with Supercuts at +2.2% and consolidated at +0.4%.
Strategic and Operational Highlights
Management emphasized continued momentum in the company’s transformation strategy. Supercuts posted consistent same-store sales growth, supported by loyalty program expansion and operational refinements. Company-owned salons exhibited early signs of improvement post-acquisition, with efforts focused on optimizing performance and integrating new locations effectively.
Leadership highlighted disciplined capital management and active discussions with partners regarding potential debt refinancing opportunities ahead of key credit agreement milestones in mid-2026. These initiatives aim to reduce debt service burdens and support long-term shareholder value creation.
The quarter reflects Regis’ evolution toward a more balanced model combining franchise stability with enhanced company-owned operations, positioning the organization to capitalize on consumer demand for accessible haircare services amid evolving industry dynamics.
Disclaimer This article is provided for informational purposes only and is not intended as investment advice, financial guidance, or a recommendation to buy, sell, or hold any securities. Investors should conduct their own research and consult with qualified professionals before making decisions.