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1. Company Snapshot

1.a. Company Description

Regis Corporation owns, operates, and franchises hairstyling and hair care salons in the United States, Canada, Puerto Rico, and the United Kingdom.The company operates in two segments, Franchise Salons and Company-Owned Salons.Its salons provide haircutting and styling, including shampooing and conditioning; hair coloring; and other services, as well as sells various hair care and other beauty products.


The company also offers mobile applications; and operates accredited cosmetology schools.Regis Corporation operates its salons primarily under the SmartStyle, Supercuts, Cost Cutters, Roosters, First Choice Haircutters, and Magicuts concepts names.As of June 30, 2022, the company operated 5,576 salons, such as 5,395 franchised salons, 105 company-owned salons, and 76 non-controlling ownership salons.


Regis Corporation was founded in 1922 and is headquartered in Minneapolis, Minnesota.

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1.b. Last Insights on RGS

Regis Corporation's recent performance was driven by strong Q3 2025 earnings, with revenue up 15% and EBITDA up 42%. The company's acquisition of Alline and operational improvements contributed to its success, setting up Regis for $9MM quarterly EBITDA and $36MM annual EBITDA in FY 2026. Additionally, the company's debt reduction and refinancing at lower rates could boost EPS by $1 to $3 per share, supporting its growth trajectory.

1.c. Company Highlights

2. Regis Corporation's Q4 2025 Earnings: A Turning Point

Regis Corporation reported a significant improvement in its financial performance for Q4 2025, with revenues increasing to $60.4 million, up 22.3% year-over-year. The company's adjusted EBITDA grew 24.8% to $9.7 million, driven by the acquisition of 300 salons from Alline in 2024 and same-store sales growth of 1.3%. The actual EPS came out at '-0.43', beating estimates of '-1.19'. According to Jim Lain, the interim CEO, "the third consecutive quarter of positive cash flow reflects progress in operational efficiency."

Publication Date: Sep -13

📋 Highlights
  • Revenue Growth:: Q4 revenue increased 22.3% to $60.4M, driven by Alline Acquisition and 1.3% same-store sales growth.
  • EBITDA Expansion:: Adjusted EBITDA rose 24.8% to $9.7M in Q4, with full-year EBITDA up 14.9% to $31.6M, reflecting operational improvements.
  • Cash Flow Resilience:: $13.7M total cash from operations (Q4: $6.8M), with $5.3M unrestricted cash and $8.4M in restricted ad fund cash.
  • Strategic Debt Management:: $125.3M in outstanding debt (excluding leases) and $25.9M liquidity, prioritizing growth, refinancing, and operational efficiency.
  • Brand Transformation:: Supercuts growth (2.9% Q4 sales) supported by loyalty program (36% of transactions) and Forum3 partnership for digital/brand modernization.

Financial Performance

The company's full-year revenue reached $210 million, up 3.5%, with adjusted EBITDA increasing 14.9% to $31.6 million. Operating income was $19.9 million, and GAAP income from continuing operations surged to $118.4 million, aided by tax valuation allowance releases. The company's cash flow from operations improved to $13.7 million, with $5.3 million in unrestricted core operations cash.

Valuation Metrics

Regis Corporation's current valuation metrics indicate a mixed picture. The 'P/S Ratio' is 0.34, suggesting a relatively low revenue multiple. However, the 'EV/EBITDA' ratio is 13.53, indicating a relatively high valuation compared to its EBITDA. The 'Free Cash Flow Yield (%)' is 15.97, which is a positive sign. The 'ROIC (%)' is 271.75, and 'ROE (%)' is 124.05, indicating high returns on invested capital and equity.

Strategic Initiatives

The company is focusing on modernizing the Supercuts brand through digital engagement, loyalty programs, and operational excellence. The partnership with Forum3 is expected to drive brand modernization, omnichannel growth, and operational improvements. The new salon prototype is slated for early 2026, and the company is evaluating strategic transactions to drive growth.

Outlook

Regis Corporation is confident in its operational momentum and strategic execution. The company's priorities for 2026 include reinvesting in growth, managing debt, and evaluating strategic transactions. With a strong focus on operational efficiency and strategic initiatives, the company is well-positioned for future growth.

3. NewsRoom

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Regis to Issue First Quarter 2026 Results on November 12, 2025

Oct -29

Source: businesswire.com

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Regis to Participate in Lake Street's 9th Annual Best Ideas Growth (BIG9) Conference September 11, 2025

Sep -04

Source: businesswire.com

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Regis Corporation (RGS) Q4 2025 Earnings Call Transcript

Sep -03

Source: seekingalpha.com

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Regis Corporation Reports Financial Results for Fourth Fiscal Quarter and Full Fiscal Year 2025

Sep -03

Source: businesswire.com

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Regis to Issue Fourth Quarter and Full Year 2025 Results on September 3, 2025

Aug -21

Source: businesswire.com

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Regis Corporation Announces Leadership Transition

Jun -23

Source: businesswire.com

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Marriott Expands Luxury Footprint With St. Regis in Costa Rica

May -23

Source: zacks.com

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Marriott International Signs Agreement to Debut St. Regis Hotels & Resorts Brand in Costa Rica

May -22

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.66%)

6. Segments

Franchise

Expected Growth: 4.65%

Regis Corporation's franchise growth of 4.65% is driven by increasing demand for beauty services, successful brand recognition, and strategic expansion into new markets. Additionally, the company's focus on technology integration, operational efficiency, and cost savings initiatives have contributed to its growth momentum.

Company-owned

Expected Growth: 4.83%

Regis Corporation's company-owned segment growth of 4.83% is driven by strategic initiatives, including salon remodels, technology upgrades, and enhanced customer experience. Additionally, the company's focus on cost savings, productivity improvements, and effective marketing strategies have contributed to the growth. Furthermore, the acquisition of new salons and expansion into new markets have also fueled the segment's growth.

7. Detailed Products

Haircutting and Styling

Regis Corporation offers a wide range of haircutting and styling services for men, women, and children, including cuts, colors, highlights, and styling treatments.

Hair Color and Highlights

Regis Corporation offers a variety of hair color and highlighting services, including permanent and semi-permanent colors, highlights, and lowlights.

Waxing and Tanning

Regis Corporation offers waxing services for men and women, including eyebrow shaping, lip waxing, and body waxing, as well as tanning services for a sun-kissed glow.

Nail Care

Regis Corporation offers a range of nail care services, including manicures, pedicures, and nail enhancements.

Skincare

Regis Corporation offers a variety of skincare services, including facials, chemical peels, and microdermabrasion.

Bridal and Special Occasion Services

Regis Corporation offers specialized services for brides and wedding parties, including hair, makeup, and nail services.

8. Regis Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Regis Corporation operates in the beauty industry, where there are many substitutes available to customers. However, the company's strong brand recognition and loyalty programs help to mitigate the threat of substitutes.

Bargaining Power Of Customers

Regis Corporation's customers have a high bargaining power due to the availability of many beauty service providers. Customers can easily switch to competitors if they are not satisfied with the services offered by Regis.

Bargaining Power Of Suppliers

Regis Corporation has a low bargaining power of suppliers due to its large scale of operations and strong relationships with suppliers. The company is able to negotiate favorable prices and terms with its suppliers.

Threat Of New Entrants

The threat of new entrants in the beauty industry is moderate. While it is relatively easy to start a new beauty business, there are significant barriers to entry, including the need for specialized skills and equipment.

Intensity Of Rivalry

The intensity of rivalry in the beauty industry is high due to the large number of competitors and the need to differentiate oneself through high-quality services and competitive pricing.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 107.15%
Debt Cost 4.25%
Equity Weight -7.15%
Equity Cost 12.85%
WACC 3.64%
Leverage -1499.18%

11. Quality Control: Regis Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Carriage Services

A-Score: 6.0/10

Value: 5.0

Growth: 5.9

Quality: 5.4

Yield: 2.0

Momentum: 9.0

Volatility: 8.3

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Regis

A-Score: 4.7/10

Value: 8.1

Growth: 5.1

Quality: 6.2

Yield: 0.0

Momentum: 6.5

Volatility: 2.3

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Value: 4.3

Growth: 7.4

Quality: 5.3

Yield: 0.0

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Volatility: 5.3

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Medifast

A-Score: 4.1/10

Value: 7.6

Growth: 2.1

Quality: 5.6

Yield: 3.0

Momentum: 1.5

Volatility: 4.7

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Century Casinos

A-Score: 3.6/10

Value: 8.8

Growth: 2.9

Quality: 3.8

Yield: 0.0

Momentum: 4.5

Volatility: 2.0

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Ballys

A-Score: 2.1/10

Value: 5.2

Growth: 4.4

Quality: 1.4

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

27.95$

Current Price

27.95$

Potential

-0.00%

Expected Cash-Flows