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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 Q1 FY2026 Earnings: A Step in the Right Direction

Regis Corporation reported a revenue increase of 28% to $59 million in the first quarter of FY2026, driven by the acquisition of 281 company-owned salons from Align in December 2024. Adjusted EBITDA was $8 million, up 4.3% from $7.6 million in the prior year quarter. The company's earnings per share (EPS) came in at $0.93, beating estimates of $0.6. Consolidated same-store sales increased by 0.9%, with Supercuts same-store sales rising by 2.5%. The company's focus on pricing actions and improved execution at the salon level contributed to the growth.

Publication Date: Nov -20

📋 Highlights
  • Consolidated Same-Store Sales Growth: Increased 0.9% QoQ, driven by pricing and salon-level execution improvements.
  • Adjusted EBITDA Improvement: Rose to $8 million (+4.3% YoY) with $400,000 year-over-year increase.
  • Supercuts Modernization Success: Achieved 2.5% same-store sales growth and 40% loyalty program participation in Q1.
  • Revenue Surge from Acquisitions: Total revenue jumped 28% to $59 million due to 281 new company-owned salons.
  • Store Closure Efficiency: Closed 54 locations (50% fewer than prior year), with 757 franchise net closures to enhance profitability.

Operational Highlights

The company's modernization efforts for Supercuts are gaining traction, with a 2.5% increase in same-store sales. Participation in the loyalty program rose to 40% from 36% in the prior quarter. The company is working to reinforce brand relevance and consistency across all touchpoints. As Jim Lain, the interim CEO, noted, "We're reinforcing brand relevance and consistency across every touchpoint—in salon, online, and through marketing—all designed to drive guest traffic and retention."

Transformation Strategy

The company is continuing its transformation strategy, which includes optimizing and growing sales and profitability in its company-owned salon portfolio. The net decrease of 757 franchise locations compared to September 30, 2024, was primarily due to underperforming stores with significantly lower trailing twelve-month sales volumes. The company expects to enhance profitability margins and cash flow generation as it continues executing its transformation strategy.

Valuation and Outlook

With a P/S Ratio of 0.3 and an EV/EBITDA of 12.76, the company's valuation appears reasonable. Analysts estimate revenue growth of 147.3% for the next year. The company's guidance on General and Administrative expenses (G&A) is expected to be in the range of 40-43% on an annualized basis. Regis Corporation is also working on providing guidance to owners on how to claim the FICA tax tip credit benefit, which could translate to $16 million in benefits for franchisees.

Debt and Cash Flow

The company generated $2.3 million in positive operating cash flow, a $3.6 million improvement versus the prior year. Regis Corporation expects unrestricted cash generated from operations to be higher in FY2026 compared to FY2025. The company is not planning to make debt repayments in the near term due to the make-whole requirement expiring in June.

3. NewsRoom

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Aspire Growth Partners LLC Grows Stock Position in Regis Co. $RGS

Nov -29

Source: defenseworld.net

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Regis Corporation (RGS) Q1 2026 Earnings Call Transcript

Nov -12

Source: seekingalpha.com

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Regis Corporation Reports Financial Results for the First Fiscal Quarter 2026

Nov -12

Source: businesswire.com

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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

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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Growth: 5.9

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Yield: 2.0

Momentum: 9.0

Volatility: 8.3

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Regis

A-Score: 4.7/10

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Quality: 6.2

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Momentum: 6.5

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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

28.9$

Current Price

28.9$

Potential

-0.00%

Expected Cash-Flows