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Regis Corporation Investment Presentation – November 2025 –1–Nasdaq: RGS
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Cautionary Statement Regarding Forward-Looking Statements This presentation contains or may contain “forward-looking statements” within the meaning of the federal securities laws, including statements concerning anticipated future events and expectations that are not historical facts. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements in this document reflect management’s best judgment at the time they are made, but all such statements are subject to numerous risks and uncertainties, which could cause actual results to differ materially from those expressed in or implied by the statements herein. Such forward-looking statements are often identified herein by use of words including, but not limited to, “may,” “will,” “believe,” “project,” “forecast,” “expect,” “estimate,” “anticipate,” and “plan.” In addition, the following factors could affect the Company's actual results and cause such results to differ materially from those expressed in forward-looking statements. These uncertainties include a potential material adverse impact on our business and results of operations as a result of changes in consumer shopping trends and changes in manufacturer distribution channels; our ability to realize the anticipated benefits of the Alline Acquisition; laws and regulations could require us to modify current business practices and incur increased costs including increases in minimum wages; changes in the general economic environment; changes in consumer tastes, hair product innovation, fashion trends and consumer spending patterns; reliance on franchise royalties and overall success of our franchisees’ salons; our ability to minimize risks associated with owning and operating additional salons; our salons' dependence on a third-party supplier agreement for merchandise; the Company and our franchisees' ability to attract, train and retain talented stylists and salon leaders; the success of our franchisees, which operate independently; data security and privacy compliance and our ability to manage cyber threats and protect the security of potentially sensitive information about our guests, franchisees, employees, vendors or Company information; the ability of the Company to maintain a satisfactory relationship with Walmart; marketing efforts to drive traffic to our and our franchisees' salons; our ability to maintain and enhance the value of our brands; reliance on legacy information technology systems; reliance on external vendors; the use of social media; the effectiveness of our enterprise risk management program; potential challenges with the planning or implementation of our new enterprise resource planning system; ability to generate sufficient cash flow to satisfy our debt service obligations; compliance with covenants in our financing arrangement; premature termination of agreements with our franchisees; the continued ability of the Company to implement cost reduction initiatives and achieve expected cost savings; continued ability to compete in our business markets; potential liabilities related to the employee retention credit received by Alline; reliance on our management team and other key personnel, including a successful search for a new CEO; the ability to attract and retain key personnel; the continued ability to maintain an effective system of internal control over financial reporting; changes in tax exposure; the ability of our Tax Preservation Plan to protect the future availability of the Company's tax assets; potential litigation and other legal or regulatory proceedings; or other factors not listed above. Additional information concerning potential factors that could affect future financial results is set forth under Item 1A of Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of newinformation, future events or otherwise. However, your attention is directed to any further disclosures made in our subsequent annual and periodic reports filed or furnished with the SEC on Forms 10-K, 10-Q and 8-K and Proxy Statements on Schedule 14A.
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• One of the largest networks and franchisors of hair care salons with approximately 3,900 locations, represented by five main brands • 100+ years of heritage and operating experience • Portfolio of brands possess high consumer awareness with a focus on the value segment • Comprehensive offering of haircutting, styling and coloring, among a variety of other hair care / beauty products and services 100+ Years of Company Heritage Over 92% Of Salons Are Franchised $1.105 billion System-wide Revenue (Fiscal Year 2025) ~3,900 Salons Worldwide Regis Corporation is publicly traded under the stock ticker: RGS Core Brands Regis: A Market Leader in Hair Services Nasdaq: RGS
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An industry leader with multiple levers to drive long-term growth Large Franchisor of Hair Services • Expansive network of salons • Economies of scale • Widespread brand visibility Widely Recognized Brand Portfolio • Five brands with strong recognition • Well-established reputation Highly Attractive Financial Profile • Consistent profitability and cash generation • Resilient EBITDA amid modest changes in SSS • Solid balance sheet Large, Economically Durable Industry • Persistent consumer demand • Resilient to macro-economic cycles Strong Customer Value Proposition • High-quality at competitive pricing • Diversity of services Predictable Asset-light Business Model • Minimal CapEx requirements • Profitability + low CapEx = Strong free cash flow Regis: A Compelling Investment Opportunity Nasdaq: RGS
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Profitability and minimal CapEx drive consistent generation of positive free cash flow enabling financial flexibility Covid – created significant losses resulting in $700MM of NOLs. Weaker franchisees shut stores with a 5-year delayed impact synchronized with lease expirations. This phenomena has largely passed in FY 25. Store stabilization – closed 448 net locations in FYE 6/30/25; magnitude of annual closures expected to be lower in FYE 6/30/26. Distressed refinance – the previous creditors forgave $80MM of debt in the refinancing; however, the new debt facility bears high interest at SOFR + 9% and precludes dividends and/or share buybacks. Improving a resilient business - implemented a phone app for on-line check-in, started a loyalty program, and implemented SEO and SCM to enhance traffic through a widely respected industry consultant, Forum3 Refinancing – NOLs and minimal capex allow for significant debt reduction to potentially refinance debt at more favorable rates Executive Summary Nasdaq: RGS
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Past – since the FYE 6/30/22, we closed over 28% of underperforming stores and reduced G&A by $20MM Present - Optimize and improve salon performance with increased salon oversight and SEO and SCM initiatives with advice from our consultant Forum3 Future - Launching refresh of Supercuts this year to drive traffic and improve customer experience. Expect FY2025 was last year of store closures at prior levels. We have significantly reduced G&A and underperforming stores. Store closures should decrease as many underperforming stores have already closed, and people head back to the office and our SEO and SCM initiatives take hold. Store Stabilization Nasdaq: RGS
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45B FICA Tax Tip Credit – the recently past federal bill allows salons to claim a credit for the FICA taxes they pay on worker tips. Prior to the bill, salons would have to pay FICA on tips paid to stylists although tips went directly to stylists. This bill allows salons to have the same tax benefits as the restaurant industry. Franchisees – Assuming $300,000 average salon revenue and 20% are reported tips, the impact would be as follows: $300,000 x 20% = $60,000 x 7.65% FICA tax or $4,590 annual income tax credit per store. Using this example, our franchisee system (3,641 salons) could see $16.7M in annual income tax savings. Company owned – Assuming $80MM revenue and 20% reported tips: $16MM x 7.65% = $1,224,000 in annual income tax credits earned. Since the company is not currently paying federal income taxes due to net operating losses, the income tax credit will result in an increase to our deferred tax asset. This is a positive tailwind for our franchisees and should contribute to the stabilization of our portfolio. Note: Assumptions are for illustrative purposes only. Store Stabilization Nasdaq: RGS
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There are several drivers to offset revenue headwinds from potential store closures including expected same store sales growth, store openings and improved Company Owned store profitability Store closure economics – on average stores that close have revenue of approximately $120,000. For example, every 100 store closures could result in a revenue head wind of: 120,000 x 5.5% x 100 is $660,000 Franchise Same Store Sale economics – 1% increase in same store sale is $280,000 x 3,647 x 5.5% x 1% = $560,000 Company Owned Store economics – 1% increase in salon level profitability is $700,000 of incremental profitability Store Stabilization Nasdaq: RGS Note: Assumptions are for illustrative purposes only.
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Debt Refinanced in June 2024 • This transaction forgave $80MM of debt • Does not allow for dividends or share repurchases –9– Nasdaq: RGS
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Source: Third-party consulting report and IBIS World. Regis is well-positioned in a large, attractive and resilient industry Attractive, Resilient Industry Regis has the 2nd Largest Network of Hair Salons with Scale Advantages Large and Growing Hair Services Market Large Salon Footprint with ~3,900 Salons Worldwide 1 No Online Solution with Barriers to eCommerce Some of the Highest Brand Awareness in the Industry Predictable Recurring Revenue Industry Leading Stylist Education and Training Program Highly Fragmented Systems and operational infrastructure to properly support a scaled platform Recession Resilient 100+ Years of Heritage and Operating Experience 5.5% Expected growth in Hair Services from 2025 - 2030 ~35% Market Share within Large Chain Salons $60 Billion Estimated Hair Services Market Size by 2030 Source: Third-party consulting report and IBIS World. Improving a Resilient Business Nasdaq: RGS
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Improving a Resilient Business Subscription-Like Repeat Business • $300 average annual spend in Value Hair Services category • Subscription-like revenue stream with an average ~10 visits per year for men and an average ~6 visits per year for woman in the Value Hair Services category Source: Third-party consulting report and Supercuts 2018 Customer Survey; IBIS World Recurring Royalty Revenue • Stable, predictable revenue stream • Average royalty rate of ~5.5% of system-wide sales Streamlined Expense / CapEx Model Franchise model is expected to drive improvement in operating performance with stable, predictable revenue through recurring royalties and a streamlined expense structure • Right-sized G&A • Low Capex & profitability drive strong free cash flow • NOLs – Reduce future cash taxes ✓ ✓ ✓ Positioned for continued growth in profitability Nasdaq: RGS
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Regis Strategic Roadmap 1 2 Driving EBITDA, Market Leadership & Sustained Value Creation Reignite Customer Passion Elevating the Guest Experience Unleash People & Excellence Empowering a High-Performance Culture Accelerate Strategic Growth Driving Enterprise Value 1. Reimagine our Brand: Modernize Supercuts to attract guests and stylists, driving traffic & ticket growth. 2. Elevate In-Salon Experience: Deliver consistent, high-quality service in a refreshed environment to build trust & retention. 3. Supercharge Digital Flywheel: Scale seamless booking, loyalty, and personalized communications to grow lifetime value. 4. One Team, One Culture: Unite team with clear vision, aligned leadership, focused execution and accountability. 5. Empower Franchisee Partners: Provide tools, aligned incentives, and support to improve unit profitability and growth. 6. Invest in Stylist Excellence: Innovate training, career paths and recognition to attract and retain top talent. 7. Corporate Salons Center of Excellence: Leverage as gold-standard model for testing & scaling innovations, elevating systemwide performance. 8. Tech & AI-Driven Advantage: Modernize technology and deploy AI to streamline operations & delight guests. 9. Winning Portfolio & Expansion: Optimize our brand portfolio and pursue disciplined growth in high-potential markets. 10. Maintain disciplined cost management BOLD MOVES STRATEGIC IMPERATIVES
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Disciplined execution and portfolio optimization are delivering profitable growth and sustained margin expansion $411.7 $276.0 $233.3 $203.0 $210.1 FY2021 FY2022 FY2023 FY2024 FY2025 Revenue +3.5% • Decided to move to fully- franchised model in 2017 and started the process of selling Company-owned salons • Currently operate 3,647 franchised salons and 294 company owned salons as of June 30, 2025 • FY25 revenue growth primarily driven by increase in number of corporate-owned salons from Alline acquisition ($75.9) ($0.5) $23.3 $27.5 $31.6 FY2021 FY2022 FY2023 FY2024 FY2025 Adjusted EBITDA +14.9% • Government mandated salon shutdowns and restrictions during the pandemic disrupted Regis’ business • Store stabilization efforts are taking hold • Leaner operating structure from recent G&A reductions Initiatives are Driving Improving Results –13– Nasdaq: RGS *Note: In FY24 stock compensation was removed from As Adjusted EBITDA calculation. All Years adjusted to reflect that methodology
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Solid balance sheet with manageable financial leverage and ample cash to fund current operations $ in millions June 30, 2025 June 30, 2024 Cash and cash equivalents $16,959 $10,066 Other current assets 33,525 31,984 Goodwill 183,436 173,146 Right of use asset 229,861 287,912 Other long-term assets 135,176 27,388 Total assets $598,957 $530,496 Current liabilities 101,688 103,518 Long-term debt, net 109,693 99,545 Long-term lease liability 179,280 230,607 Other long-term liabilities 22,680 40,039 Total liabilities $413,341 $473,709 Total shareholders’ equity $185,616 $56,787 Total liabilities and shareholders’ equity $598,957 $530,496 Clean cap structure Growing cash balance from positive Cash From Ops LT lease liability is largely operating leases related to franchisee salon leases that are serviced directly by franchisees Summary Balance Sheets –14– Nasdaq: RGS
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Kersten Zupfer Jim Lain Prior Experience: Prior Experience: Executive Vice President, Chief Financial Officer Executive Vice President, Interim Chief Executive Officer Jamie Suarez Prior Experience: Senior Vice President, Merchandising & Education Michael Ferranti Prior Experience: Executive Vice president, Brand Operations Experienced Management Team Nasdaq: RGS
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–8– Regis Corporation Investment Presentation – November 2025 –16– Nasdaq: RGS