Earnings release
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Exhibit No. 99.1 Regis Corporation Reports Financial Results for the Third Fiscal Quarter 2025 Delivered Improvement Across All Profitability Metrics Generated $6.2 Million in Cash from Operations in Q3 - Two Consecutive Quarters of Cash from Operations for the First Time Since Q1 2018 Advances Transformational Strategy to Drive Sustainable, Profitable Growth MINNEAPOLIS, May 13, 2025 - Regis Corporation (NasdaqGM: RGS), a leader in the haircare industry, today announced financial results for the third fiscal quarter ended March 31, 2025. Matthew Doctor, Regis Corporation's President and Chief Executive Officer, commented, “Our results for the third fiscal quarter demonstrate meaningful progress towards the transformation of our business. We delivered a 22.0% increase in operating profit, 33.1% increase in Adjusted EBITDA, and importantly, generated positive cash from operations of more than $6 million. The underlying economics of our business are strengthening, and our financial position remains solid as we continue executing a strategic roadmap aimed at reigniting growth that is both profitable and sustainable. “We implemented targeted pricing and compensation changes at our Alline salons at the end of the third fiscal quarter, which we expect will contribute incrementally to performance in the near term, and the revitalization of the Supercuts brand is underway, with same-store sales trends stabilizing over the past three quarters. A shift in the timing of the Easter holiday, from March 31 last year to April 20 this year, adversely impacted same-store sales comparisons for the third quarter. However, to start the fourth quarter, in April, same-store sales at Supercuts were up 4.5% and consolidated sales were up 2.8%.While we expect the continued transformation to take time, the steps we are taking to elevate our brands, drive company-owned salon results, and enhance operations are foundational to the business, and we are encouraged by the progress we are making and the underlying momentum that is building.” Financial Highlights: Third quarter fiscal 2025 compared to third quarter fiscal 2024: • Consolidated revenue of $57.0 million versus $49.2 million; driven by increased company-owned salon revenue, offset by lower royalties, non-margin franchise rental income and lower advertising fund contributions • Same-store sales versus third quarter 2024: Supercuts: +1.1%; Consolidated: (1.1)% • Operating Income of $5.0 million, versus $4.1 million • Cash from operations of $6.2 million versus $(0.3) million, increase of $6.5 million • Second consecutive quarter of cash from operations since the first fiscal quarter of 2018 ◦ $3.8 million of cash from operations excluding the effect of restricted cash ad fund build • Adjusted EBITDA of $7.1 million versus $5.4 million • Net income of $0.3 million versus $(2.3) million ◦ Diluted EPS of $0.08 versus $(1.00) • Adjusted net income of $1.3 million versus $(1.4) million ◦ Adjusted EPS of $0.43 versus $(0.61) Additional third quarter fiscal 2025 commentary: • Alline acquisition focus during the quarter was primarily on continued integration and strategic planning • Progress made on same-store sales growth since acquisition
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• Rolled out first set of strategic initiatives, including: a new stylist compensation plan, updated service menu and pricing on March 30, 2025; impact expected in future quarters Fiscal year-to-date 2025 compared to fiscal year-to-date fiscal 2024: • Consolidated revenue of $149.7 million versus $153.6 million • Same-store sales versus prior year: Supercuts: +0.8%; Consolidated: (1.3)% • Operating Income of $12.7 million versus $16.3 million, decline primarily driven by non-recurring severance costs • Cash from operations of $7.0 million versus $(7.1) million, increase of $14.1 million ◦ $1.1 million of cash from operations excluding the effect of restricted cash ad fund build • Adjusted EBITDA of $21.9 million versus $19.7 million • Net income of $7.0 million versus $(0.1) million ◦ Diluted EPS of $3.00 versus $(0.06) • Adjusted net income of $5.6 million versus $(0.2) million ◦ Adjusted EPS of $1.97 versus $(0.07) Third Quarter Fiscal Year 2025 Consolidated Results Three Months Ended March 31, Nine Months Ended March 31, (Dollars in millions, except per share data) 2025 2024 2025 2024 Consolidated revenue $ 57.0 $ 49.2 $ 149.7 $ 153.6 System-wide revenue (1) 266.9 286.8 826.4 885.4 System-wide same-store sales comps (1.1)% 0.5 % (1.3)% 1.4 % Operating income $ 5.0 $ 4.1 $ 12.7 $ 16.3 Income (loss) from continuing operations 0.3 (2.4) (1.4) (2.2) Diluted income (loss) per share from continuingoperations 0.08 (1.03) (0.58) (0.95) Income from discontinued operations — 0.1 8.4 2.1 Net income (loss) 0.3 (2.3) 7.0 (0.1) Diluted earnings (loss) per share 0.08 (1.00) 3.00 (0.06) Adjusted operating income 6.1 5.1 19.6 18.4 Adjusted EBITDA (2) 7.1 5.4 21.9 19.7 Adjusted net income (loss) 1.3 (1.4) 5.6 (0.2) Adjusted diluted earnings (loss) per share 0.43 (0.61) 1.97 (0.07) _______________________________________________________________________________ (1) Represents total sales within the system. (2) See GAAP to non-GAAP reconciliations within the attached section titled "Non-GAAP Reconciliations." Consolidated Revenue Total consolidated revenue of $57.0 million in the third quarter 2025, an increase of 15.9%, or $7.8 million, due primarily to an increase in company-owned salon revenue resulting from the acquisition of Alline on December 19, 2024. Year-to-date consolidated revenue declined 2.5% or $3.9 million, to $149.7 million. The decline was driven primarily by a reduction in non-margin franchise rental income and advertising fund contributions, which was partially offset by an increase in company-owned salon revenue. Operating Income
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Regis reported third quarter 2025 operating income of $5.0 million, an improvement of 22.9%, or $0.9 million, compared to $4.1 million in the third quarter 2024. The year-over-year improvement in operating income was driven primarily by operating income from the Alline salons. Regis reported year-to-date 2025 operating income of $12.7 million, a decline of 22.1%, or $3.6 million, compared to $16.3 million year-to-date 2024. The year-over-year decline in operating income was primarily driven by non-recurring severance costs. Income (Loss) from Continuing Operations Regis reported third quarter 2025 income (loss) from continuing operations of $250,000, or $0.08 per diluted share, compared to a net loss from continuing operations of $2.4 million, or $(1.03) per diluted share, in the third quarter 2024. The year-over- year improvement was driven by an increase in operating income and a decrease in interest expense. Regis reported year-to-date 2025 net loss from continuing operations of $1.4 million, or $(0.58) per diluted share, compared to a net loss from continuing operations of $2.2 million, or $0.95 per diluted share from continuing operations, in 2024. The year-over-year improvement was driven primarily by a decrease in interest expense, which was partially offset by a decrease in operating income. Net Income (Loss) The Company reported third quarter 2025 net income of $250,000, or $0.08 diluted income per share, compared to a net loss of $2.3 million, inclusive of a net gain from discontinued operations of $89,000, or $(1.00) per diluted share, for the same period last year. The Company reported year-to-date 2025 net income of $7.0 million, inclusive of net income from discontinued operations of $8.4 million, or $3.00 per diluted share, compared to a net loss of $141,000, inclusive of net income from discontinued operations of $2.1 million or $(0.06) per diluted share, for 2024. Adjusted EBITDA Third quarter adjusted EBITDA of $7.1 million improved $1.7 million, compared to adjusted EBITDA of $5.4 million in the same period last year. Year-to-date adjusted EBITDA of $21.9 million improved 11.1% or $2.2 million versus adjusted EBITDA of $19.7 million in the same period last year. The improvement is primarily driven by a lower general and administrative expense structure.
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Third Quarter Fiscal Year 2025 Segment Results Franchise Three Months Ended March31, Increase Nine Months Ended March 31, Increase(Dollars in millions) (1) 2025 2024 2025 2024 Royalties $ 13.5 $ 15.7 $ (2.2) $ 44.0 $ 48.0 $ (4.0) Fees 2.4 2.6 (0.2) 7.7 7.7 — Product sales to franchisees — — — — 0.5 (0.5) Advertising fund contributions 5.2 5.8 (0.6) 16.3 19.8 (3.5) Franchise rental income 16.9 23.8 (6.9) 58.5 72.5 (14.0) Total franchise revenue $ 38.0 $ 47.9 $ (9.9) $ 126.5 $ 148.6 $ (22.1) Franchise same-store sales comps (0.7)% 0.5 % (1.1)% 1.3 % Franchise adjusted EBITDA $ 6.3 $ 6.1 $ 0.2 $ 20.7 $ 21.3 $ (0.6) as a percent of revenue 16.5 % 12.8 % 16.3 % 14.4 % as a percent of adjusted revenue (2) 39.4 % 33.5 % 40.0 % 38.0 % Total franchise salons 3,776 4,537 (761) as a percent of total franchise and company-owned salons92.4 % 99.6 % _______________________________________________________________________________ (1) Total is a recalculation; line items calculated individually may not recalculate due to rounding. (2) Adjusted revenue excludes non-margin revenue. See GAAP to non-GAAP reconciliations within the attached section titled "Non- GAAP Reconciliations." Franchise Revenue Third quarter franchise revenue for franchise salons was $38.0 million, a decrease of 20.7% or $9.9 million, compared to the prior-year quarter. Year-to-date franchise revenue was $126.5 million, a decrease of 14.9%, or $22.1 million, compared to the prior year period. Non-margin franchise rental income was the primary driver of the decline in both periods due to fewer franchise salons in the current year and franchisees renewing their own leases. Royalties were $13.5 million and $44.0 million, a $2.2 million and $4.0 million, or 14.0% and 8.3% decrease for the third quarter and year-to-date 2025, versus the same periods last year due to fewer franchise salons. Franchise Adjusted EBITDA Third quarter franchise adjusted EBITDA of $6.3 million increased 2.6%, or $0.2 million, and year-to-date franchise adjusted EBITDA of $20.7 million decreased 2.8%, or $0.6 million year-over-year primarily due to a decrease in royalty revenue.
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Company-Owned Salons Three Months Ended March31, Increase(Decrease) Nine Months Ended March31, Increase(Decrease)(Dollars in millions) (1) 2025 2024 2025 2024 Total company-owned salon revenue $ 19.0 $ 1.3 $ 17.7 $ 23.2 $ 5.0 $ 18.2 Company-owned salon adjusted EBITDA $ 0.8 $ (0.8) $ 1.6 $ 1.2 $ (1.6) $ 2.8 as a percent of revenue 4.2 % (61.5)% 5.2 % (32.0)% Total company-owned salons 311 20 291 as a percent of total franchise and company-ownedsalons 7.6 % 0.4 % _______________________________________________________________________________ (1) Variances calculated on amounts shown in millions may result in rounding differences. Company-Owned Salon Revenue Third quarter revenue for Company-owned salons was $19.0 million, an increase of $17.7 million compared to the prior year. Year-to-date revenue for the Company-owned salon segment was $23.2 million, an increase of $18.2 million versus the prior year. The year-over-year increase in revenue for both periods was expected and driven by the acquisition of Alline on December 19, 2024. Company-Owned Salon Adjusted EBITDA Third quarter Company-owned salon adjusted EBITDA improved $1.6 million year-over-year to $843,000. Year-to-date Company-owned salon adjusted EBITDA improved $2.8 million year-over-year to $1.2 million. The improvement in each of the periods is due primarily to increased revenue from an increased number of company-owned salons resulting from the Alline acquisition. Balance Sheet and Cash Flow The Company ended the third quarter of fiscal year 2025 with $13.3 million in cash and cash equivalents, $127.4 million in outstanding borrowings and available total liquidity of $19.0 million. Net cash provided by operating activities for the nine months ended March 31, 2025, totaled $7.0 million, an improvement of $14.1 million from the nine months ended March 31, 2024, due to lower operating costs. Cash used in investing activities includes $18.6 million for Alline acquisition.
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Non-GAAP Reconciliations For GAAP to non-GAAP reconciliations, please refer to the attached section titled "Non-GAAP Reconciliations." A complete reconciliation of reported earnings to adjusted earnings is included in this press release and is available on the Company’s website at www.regiscorp.com. Earnings Webcast Regis Corporation will host a conference call via webcast discussing third quarter results today, May 13, 2025, at 7:30 a.m. Central time. Interested parties are invited to participate in the live webcast by registering for the event at www.regiscorp.com/investor-relations.html. A replay of the presentation will be available on our website at the same web address. About Regis Corporation Regis Corporation (NasdaqGM:RGS) is a leader in the haircare industry. As of March 31, 2025, the Company franchised or owned 4,087 locations. Regis’ franchised and corporate locations operate under concepts such as Supercuts , SmartStyle , Cost Cutters , Roosters , and First Choice Haircutters . For additional information about the Company, including a reconciliation of certain non-GAAP financial information and certain supplemental financial information, please visit the Investor Relations section of the corporate website at www.regiscorp.com. REGIS CORPORATION: Kersten Zupfer investorrelations@regiscorp.com HAYDEN IR: James Carbonara James@haydenir.com (646) 755-7412 Brett Maas brett@haydenir.com (646) 536-7331 ® ® ® ® ®
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This press release 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 andcause such results to differ materially from those expressed in forward-looking statements. These factors 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; laws and regulations could require us to modify current business practices and incur increased costs including increases in minimum wages; changes in general economic environment; changes in consumer tastes, hair product innovation, fashion trends and consumer spending patterns; compliance with Nasdaq listing requirements; our ability to realize the anticipated benefits of the Alline Acquisition; reliance on franchise royalties and overall success of our franchisees’ salons; our salons' dependence on a third-party supplier agreement for merchandise; our 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 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; our ability to minimize risks associated with owning and operating additional salons; ability to generate sufficient cash flow to satisfy our debt service obligations; compliancewith 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; changes in trade policies, treaties, tariffs and customs duties and taxes; reliance on our management team and other 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 on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, 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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REGIS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) As of March 31, 2025, and June 30, 2024 (Dollars in thousands, except per share data) March 31,2025 June 30,2024 ASSETS Current assets: Cash and cash equivalents $ 13,287 $ 10,066 Receivables, net 8,979 9,434 Other current assets 25,136 22,550 Total current assets 47,402 42,050 Property and equipment, net 10,696 3,664 Goodwill 184,317 173,146 Other intangibles, net 5,906 2,427 Right of use asset 244,664 287,912 Other assets 18,263 21,297 Total assets $ 511,248 $ 530,496 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 18,127 $ 12,747 Accrued expenses 20,296 21,644 Short-term lease liability 62,572 69,127 Total current liabilities 100,995 103,518 Long-term debt, net 112,010 99,545 Long-term lease liability 193,314 230,607 Other non-current liabilities 36,285 40,039 Total liabilities 442,604 473,709 Shareholders' equity: Common stock, $0.05 par value; issued and outstanding, 2,435,981 and 2,279,948 commonshares at March 31, 2025, and June 30, 2024, respectively 122 114 Additional paid-in capital 74,878 69,660 Accumulated other comprehensive income 8,173 8,584 Accumulated deficit (14,529) (21,571) Total shareholders' equity 68,644 56,787 Total liabilities and shareholders' equity $ 511,248 $ 530,496 – more –
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REGIS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) For the Three and Nine Months Ended March 31, 2025, and 2024 (Dollars and shares in thousands, except per share data) Three Months Ended March31, Nine Months Ended March 31, 2025 2024 2025 2024 Revenues: Royalties $ 13,533 $ 15,687 $ 44,019 $ 48,035 Fees 2,402 2,617 7,671 7,740 Product sales to franchisees — — — 451 Advertising fund contributions 5,203 5,773 16,334 19,807 Franchise rental income 16,866 23,780 58,524 72,534 Company-owned salon revenue 18,953 1,324 23,188 5,039 Total revenue 56,957 49,181 149,736 153,606 Operating expenses: Cost of product sales to franchisees — 19 — 436 General and administrative 11,235 11,247 36,424 33,748 Rent 4,058 1,766 7,271 4,257 Advertising fund expense 5,203 5,773 16,334 19,807 Franchise rent expense 16,866 23,780 58,524 72,534 Company-owned salon expense (1) 13,835 1,503 16,534 4,301 Depreciation and amortization 739 1,009 1,645 2,056 Long-lived asset impairment — — 352 170 Total operating expenses 51,936 45,097 137,084 137,309 Operating income 5,021 4,084 12,652 16,297 Other (expense) income: Interest expense (5,087) (6,153) (14,781) (18,529) Other, net 315 (298) 685 (199) Income (loss) from operations before income taxes 249 (2,367) (1,444) (2,431) Income tax benefit (expense) 1 (54) 90 201 Income (loss) from continuing operations 250 (2,421) (1,354) (2,230) Income from discontinued operations — 89 8,396 2,089 Net income (loss) $ 250 $ (2,332) $ 7,042 $ (141) Net income (loss) per share: Basic: Income (loss) from continuing operations $ 0.10 $ (1.03) $ (0.58) $ (0.95) Income from discontinued operations 0.00 0.04 3.57 0.89 Net income (loss) per share (2) $ 0.10 $ (1.00) $ 3.00 $ (0.06) Diluted: Income (loss) from continuing operations $ 0.08 $ (1.03) $ (0.58) $ (0.95) Income from discontinued operations 0.00 0.04 3.57 0.89 Net income (loss) per share, diluted (2) $ 0.08 $ (1.00) $ 3.00 $ (0.06) Weighted average common and common equivalent sharesoutstanding: Basic 2,499 2,342 2,350 2,338 Diluted 3,002 2,342 2,350 2,338 _______________________________________________________________________________ (1) Includes cost of service and product sold to guests in our company-owned salons. Excludes general and administrative expense, rent, and depreciation and amortization related to company-owned salons. (2) Total is a recalculation; line items calculated individually may not sum to total due to rounding.
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REGIS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) For the Nine Months Ended March 31, 2025, and 2024 (Dollars in thousands) Nine Months Ended March 31, 2025 2024 Cash flows provided by (used in) operating activities: Net income (loss) $ 7,042 $ (141) Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: Gain from sale of OSP (8,396) (2,000) Depreciation and amortization 1,596 1,576 Long-lived asset impairment 352 170 Deferred income taxes (197) (50) Non-cash interest 3,846 1,956 Stock-based compensation 2,043 1,201 Amortization of debt discount and financing costs 2,437 2,240 Other non-cash items affecting earnings 579 216 Changes in operating assets and liabilities, excluding the effects of asset sales and businessacquisitions (2,316) (12,298) Net cash provided by (used in) operating activities 6,986 (7,130) Cash flows (used in) provided by investing activities: Capital expenditures (769) (372) Proceeds from sale of OSP, net of fees 8,463 2,000 Business acquisitions, net of cash acquired and certain obligations assumed (18,631) — Net cash (used in) provided by investing activities (10,937) 1,628 Cash flows provided by (used in) financing activities: Proceeds from issuance of long-term debt 15,000 — Borrowings on revolving credit facility 4,326 4,000 Repayments of long-term debt (825) (2,499) Repayments of revolving credit facility (10,238) — Debt refinancing fees (949) (2,552) Taxes paid for shares withheld (75) (16) Net cash provided by (used in) financing activities 7,239 (1,067) Effect of exchange rate changes on cash and cash equivalents (92) (11) Increase (decrease) in cash, cash equivalents, and restricted cash 3,196 (6,580) Cash, cash equivalents and restricted cash: Beginning of period 29,312 21,396 End of period $ 32,508 $ 14,816 _______________________________________________________________________________ (1) Changes in operating assets and liabilities exclude assets and liabilities sold and assets and liabilities acquired through business acquisitions. – more –
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REGIS CORPORATION System-Wide Same-Store Sales SYSTEM-WIDE SAME-STORE SALES (1): Three Months Ended March 31, 2025 March 31, 2024 Service Retail Total Service Retail Total Supercuts 1.4 % (8.1)% 1.1 % 2.1 % (10.7)% 1.6 % SmartStyle (5.1) (19.9) (7.4) (2.2) (13.4) (4.2) Portfolio Brands (1.0) (0.2) (0.9) 2.9 (8.9) 1.9 Total (0.4)% (11.2)% (1.1)% 1.5 % (11.4)% 0.5 % Nine Months Ended March 31, 2025 March 31, 2024 Service Retail Total Service Retail Total Supercuts 1.2 % (9.6)% 0.8 % 2.6 % (7.0)% 2.2 % SmartStyle (4.4) (18.7) (6.8) (1.2) (10.4) (2.9) Portfolio Brands (1.0) (8.3) (1.5) 3.8 (4.5) 3.0 Total (0.4)% (13.3)% (1.3)% 2.2 % (7.8)% 1.4 % _______________________________________________________________________________ (1) System-wide same-store sales are calculated as the total change in sales for system-wide franchise and company-owned locations that were open on a specific day of the week during the current period and the corresponding prior period. Quarterly system-wide same-store sales are the sum of the system-wide same-store sales computed on a daily basis. Franchise salons that do not report daily sales are excluded from same-store sales. System-wide same-store sales are calculated in local currencies to remove foreign currency fluctuations from the calculation. – more –
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REGIS CORPORATION System-Wide Location Counts March 31,2025 June 30,2024 FRANCHISE SALONS: Supercuts 1,746 1,946 SmartStyle/Cost Cutters in Walmart Stores 1,099 1,232 Portfolio Brands 836 1,117 Total North American salons 3,681 4,295 Total International salons (1) 95 96 Total franchise salons 3,776 4,391 as a percent of total franchise and company-owned salons 92.4 % 99.6 % COMPANY-OWNED SALONS (2): Supercuts 104 3 SmartStyle/Cost Cutters in Walmart Stores — 8 Portfolio Brands 207 6 Total company-owned salons 311 17 as a percent of total franchise and company-owned salons 7.6 % 0.4 % Total franchise and company-owned salons 4,087 4,408 _______________________________________________________________________________ (1) Canadian and Puerto Rican salons are included in the North American salon totals. (2) Salon counts as of March 31, 2025, include the salons acquired as part of the Alline acquisition. – more –
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Non-GAAP Reconciliations: This press release includes a presentation of adjusted EBITDA and adjusted franchise revenue, which are non-GAAP measures. The non- GAAP measures are financial measures that do not reflect United States Generally Accepted Accounting Principles (GAAP). We believe our presentation of the non-GAAP measures provides meaningful insight into our ongoing operating performance and a supplemental perspective of our results of operations. Presentation of the non-GAAP measures allows investors to review our core ongoing operating performance from the same perspective as management and the Board of Directors. These non-GAAP financial measures provide investors an enhanced understanding of our operations, facilitate investors’ analyses and comparisons of our current and past results of operations and provide insight into the prospects of our future performance. We also believe the non-GAAP measures are useful to investors because they provide supplemental information that research analysts frequently use to analyze financial performance. Items impacting comparability are not defined terms within U.S. GAAP. Therefore, our non-GAAP financial information may not be comparable to similarly titled measures reported by other companies. We determine the items to consider as "items impacting comparability" based on how management views our business, makes financial, operating and planning decisions and evaluates the Company's ongoing performance. The following items have been excluded from our non-GAAP adjusted EBITDA results: stock-based compensation expense, discontinued operations, one-time professional fees and legal settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired right of use asset, lease termination fees and asset retirement obligation costs. We present adjusted revenue to provide a meaningful franchise adjusted EBITDA margin, which removes non-margin revenue from total revenue to arrive at an adjusted margin. Margin is a common metric used by investors, however, the majority of our revenue is offset by equal expense, so it does not contribute to our margin. We remove the non-margin revenue from this metric in order to show a meaningful margin rate. The method we use to produce non-GAAP results is not in accordance with U.S. GAAP and may differ from methods used by other companies. These non-GAAP results should not be regarded as a substitute for corresponding U.S. GAAP measures, but instead should be utilized as a supplemental measure of operating performance in evaluating our business. Non-GAAP measures do have limitations as they do not reflect certain items that may have a material impact upon our reported financial results. As such, these non-GAAP measures should be viewed in conjunction with our financial statements prepared in accordance with U.S. GAAP. – more –
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REGIS CORPORATION Reconciliation of U.S. GAAP Net Income (Loss) to Adjusted EBITDA (Dollars in thousands) (Unaudited) Three Months Ended March31, Nine Months Ended March 31, 2025 2024 2025 2024 Reported net income (loss) $ 250 $ (2,332) $ 7,042 $ (141) Interest expense 5,087 6,153 14,781 18,529 Income tax expense (benefit) (1) 54 (90) (201) Depreciation and amortization 739 1,009 1,645 2,056 Long lived asset impairment — — 352 170 EBITDA $ 6,075 $ 4,884 $ 23,730 $ 20,413 Stock-based compensation expense (1) 439 310 2,043 1,201 Gain on discontinued operations — (89) (8,396) (2,089) Discrete items (2) 611 248 4,525 215 Adjusted EBITDA, non-GAAP financial measure $ 7,125 $ 5,353 $ 21,902 $ 19,740 _______________________________________________________________________________ (1) Beginning in first quarter fiscal year 2025, management made the determination to exclude stock-based compensation expenses from the adjusted EBITDA calculation. This change has been retroactively applied to all prior periods presented accordingly. (2) Discrete items include one-time professional fees and legal settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired right of use asset, lease termination fees and asset retirement obligation costs. – more –
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REGIS CORPORATION Reconciliation of Reported General and Administrative Expenses to General and Administrative Expenses Used to Calculate Adjusted EBITDA (Dollars in thousands) (Unaudited) Three Months Ended March31, Nine Months Ended March 31, 2025 2024 2025 2024 Reported general and administrative $ 11,235 $ 11,247 $ 36,424 $ 33,748 Discrete general and administrative (1) (622) (263) (4,584) (292) Stock-based compensation (439) (310) (2,043) (1,201) Adjusted general and administrative $ 10,174 $ 10,674 $ 29,797 $ 32,255 _____________________________________________________________________________ (1) Discrete items include one-time professional fees and legal settlements, severance expense, and asset retirement obligation costs. – more –
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REGIS CORPORATION Reconciliation of Reported Net Income (Loss) to Adjusted Net Income (Loss) (Dollars in thousands) (Unaudited) Three Months Ended March31, Nine Months Ended March 31, 2025 2024 2025 2024 Net income (loss) $ 250 $ (2,332) $ 7,042 $ (141) Stock-based compensation 439 310 2,043 1,201 Long lived asset impairment — — 352 170 Discontinued operations — (89) (8,396) (2,089) Discrete items 607 685 4,574 696 Adjusted net income (loss) $ 1,296 $ (1,426) $ 5,615 $ (163) – more –
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REGIS CORPORATION Reconciliation of Reported Earnings Per Share to Adjusted Earnings Per Share (Unaudited) Three Months Ended March31, Nine Months Ended March 31, 2025 2024 2025 2024 Reported earnings (loss) per share $ 0.08 $ (1.00) $ 3.00 $ (0.06) Adjustment to reconcile reported to adjusted earnings (loss) per share 0.35 0.39 (1.56) (0.01) Impact of change in weighted average shares (1) — — 0.53 — Adjusted earnings (loss) per share $ 0.43 $ (0.61) $ 1.97 $ (0.07) _____________________________________________________________________________ (1) Non-GAAP net income per share reflects the weighted average shares associated with non-GAAP net income, which includes the dilutive effect of common stock equivalents. The earnings per share impact of the adjustments for the nine months ended March 31, 2025, included additional shares for common stock equivalents of 0.5 million. The impact of the adjustments described above result in the effect of the common stock equivalents to be dilutive to the non-GAAP net income per share. – more –
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REGIS CORPORATION Reconciliation of Reported Franchise Adjusted EBITDA as a Percent of GAAP Franchise Revenue to Franchise Adjusted EBITDA as a Percent of Adjusted Franchise Revenue (Dollars in thousands) (Unaudited) Three Months Ended March 31, Nine Months Ended March 31, 2025 2024 2025 2024 Franchise adjusted EBITDA $ 6,282 $ 6,125 $ 20,683 $ 21,346 GAAP franchise revenue 38,004 47,857 126,548 148,567 Franchise adjusted EBITDA as a percent of GAAP franchise revenue 16.5 % 12.8 % 16.3 % 14.4 % Non-margin revenue adjustments: Franchise rental income $ (16,866) $ (23,780) $ (58,524) $ (72,534) Advertising fund contributions (5,203) (5,773) (16,334) (19,807) Adjusted franchise revenue $ 15,935 $ 18,304 $ 51,690 $ 56,226 Franchise adjusted EBITDA as a percent of adjusted franchise revenue 39.4 % 33.5 % 40.0 % 38.0 % – more –
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REGIS CORPORATION Reconciliation of Reported Operating Income to Adjusted Operating Income (Dollars in thousands) (Unaudited) Three Months Ended March31, Nine Months Ended March 31, 2025 2024 2025 2024 Reported operating income $ 5,021 $ 4,084 $ 12,652 $ 16,297 Discrete items 607 686 4,926 866 Stock-based compensation 439 310 2,043 1,201 Adjusted operating income $ 6,067 $ 5,080 $ 19,621 $ 18,364 – more –
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REGIS CORPORATION Reconciliation of Reported Net Cash Provided By (Used In) Operating Activities to Net Cash Provided By (Used In) Operating Activities Excluding Ad Fund (Dollars in thousands) (Unaudited) Three Months Ended March31, Nine Months Ended March 31, 2025 2024 2025 2024 Net cash provided by (used in) operating activities $ 6,198 $ (280) $ 6,986 $ (7,130) Change in Ad Fund Cash (2,369) 691 (5,844) 2,653 Net cash provided by (used in) operating activities excluding Ad Fund $ 3,829 $ 411 $ 1,142 $ (4,477) – end