Annual report
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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2026 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-12725 Regis Corporation (Exact name of registrant as specified in its charter) Minnesota 41-0749934 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 3701 Wayzata Boulevard, Minneapolis Minnesota 55416 (Address of principal executive offices) (Zip Code) (952) 947-7777 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading symbol Name of each exchange on which registered Common Stock, $0.05 par value RGS The Nasdaq Global Market Rights to Purchase Series A Junior ParticipatingPreferred Stock, $0.05 par value RGS The Nasdaq Global Market Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒ Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☒ Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐ Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definition of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act. Large accelerated filer ☐ Accelerated filer ☐ Non-accelerated filer ☒ Smaller reporting company ☒ Emerging growth company ☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐ Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐ If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐ Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant's executive officers during the relevant recovery period pursuant to § 240.10D-1(b). ☐ Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Act). Yes ☐ No ☒ The aggregate market value of the voting common equity held by non-affiliates computed by reference to the price at which common equity was last sold as of the last business day of the registrant's most recently completed second fiscal quarter, December 31, 2025, was approximately $68,932,520. The registrant has no non-voting common equity. As of August 25, 2026, the registrant had 2,498,778 shares of Common Stock, par value $0.05 per share, issued and outstanding. DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant's definitive Proxy Statement for the annual fiscal 2026 meeting of shareholders (the 2026 Proxy Statement) (to be filed pursuant to Regulation 14A within 120 days after the registrant's fiscal year-end of June 30, 2026) are incorporated by reference into Part III.
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Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This annual report, as well as information included in, or incorporated by reference from, future filings by the Company with the Securities and Exchange Commission (the SEC) and information contained in written material, press releases and oral statements issued by or on behalf of the Company 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; our 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; 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; our use of artificial intelligence; the ability of the Company to maintain asatisfactory relationship with Walmart; marketing efforts to drive traffic to our franchisees' and company-owned 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 implementation or ongoing operation of our new enterprise resource planning system; our 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; our 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; 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 this 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. 2
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Table of Contents REGIS CORPORATION FORM 10-K FOR THE FISCAL YEAR ENDED JUNE 30, 2026 INDEX Part I. Item 1. Business 4 Information About Our Executive Officers 14 Item 1A. Risk Factors 15 Item 1B. Unresolved Staff Comments 25 Item 1C. Cybersecurity 25 Item 2. Properties 25 Item 3. Legal Proceedings 26 Item 4. Mine Safety Disclosures 26 Part II. Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of EquitySecurities 27 Item 6. Reserved 27 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 7A. Quantitative and Qualitative Disclosures about Market Risk 43 Item 8. Financial Statements and Supplementary Data 44 Report of Independent Registered Public Accounting Firm 45 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 94 Item 9A. Controls and Procedures 94 Item 9B. Other Information 94 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 94 Part III. Item 10. Directors, Executive Officers, and Corporate Governance 95 Item 11. Executive Compensation 95 Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 95 Item 13. Certain Relationships and Related Transactions, and Director Independence 95 Item 14. Principal Accountant Fees and Services 95 Part IV. Item 15. Exhibits and Financial Statement Schedules 96 Item 16. Form 10-K Summary 98 Signatures 99 3
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Table of Contents PART I Item 1. Business General: Regis Corporation franchises and owns hair care salons. The Company is listed on the Nasdaq Global Market under the ticker symbol "RGS." Unless the context otherwise provides, when we refer to the "Company," "we," "our," or "us," we are referring to Regis Corporation, the Registrant, together with its subsidiaries. As of June 30, 2026, the Company franchised or owned 3,712 locations, primarily in North America. The Company's locations consist of 3,448 franchised salons and 264 company-owned salons. Each of the Company's salon concepts generally offers similar salon products and hair services. The major services supplied by the salons are haircutting and styling (including shampooing and conditioning) and hair coloring. Salons also sell a variety of hair care and other beauty products. We earn royalty revenue based on service and product sales at our franchise locations and earn revenue for services and products sold at our company-owned salons. Salons operate primarily under the trade names of Supercuts, SmartStyle, Cost Cutters, First Choice Haircutters and Roosters, and they generally serve the value category within the industry. Salons are primarily located in convenient locations, including strip centers and Walmart Supercenters. The Company reports its operations in two operating segments: franchise and company-owned. Service revenues comprise approximately 95% of total company-owned salon revenues. Financial information about our segments and geographic areas for fiscal years 2026, 2025, and 2024 are included in Note 15 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K. Industry Overview: The hair salon market represents a significant and highly fragmented industry, encompassing a vast number of operators and generating considerable annual revenue, with the majority of locations being independently owned and operated. The Company faces competition from chains, such as Great Clips, Fantastic Sams, Sport Clips and Ulta Beauty, independently owned salons, in-home hair services, booth rentals, and blow dry bars. The Company also faces competition from other franchise organizations outside of the hair salon industry in attracting new franchisees. At the individual salon level, barriers to entry are low; however, barriers exist for chains to expand nationally due to the need to lease quality sites, recruit franchisees, establish systems and infrastructure to support franchisees, the ability to recruit and retain stylists, and hire multi-unit and experienced field and salon management. The principal factors of competition in the hair care category are the ability to attract, retain, and train quality stylists, provide consistent and exceptional guest experiences, have the right technology tools, and win on convenience and price value. The Company continually strives to improve its performance in each of these areas and to create additional points of brand differentiation versus the competition. 4
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Table of Contents General. We provide our franchisees and company-owned salons with a comprehensive system of business performance coaching, stylist training and education, site approval, professional marketing, promotion, and advertising programs, loyalty and CRM programs, technology tools, and other forms of ongoing support designed to help franchisees build successful businesses. Historically, we signed the salon lease and then subleased the space to our franchisees. In December 2024, the Company acquired Super C Group, LLC, doing business as Alline Salon Group (Alline), bringing a portfolio of 314 salons, of which 261 remain in operation as of June 30, 2026, across the Supercuts, Cost Cutters, and Holiday Hair brands under Regis Corporation (the Alline Acquisition). Although the Company's main focus remains being a franchisor and maintaining an asset-light model, which includes supporting and driving franchisee sales and profitability, this transaction was a strategic move that provides a company-owned environment to test, learn and refine initiatives before broader franchise rollout. Our intent is to make the company- owned salon business best in class by proving out operational excellence and piloting programs, including enhanced loyalty and marketing capabilities supported by new technology, that can be tested and refined at our Company-owned salons, and, once successful, scaled across the franchise system. Standards of Operations. The Company does not control the day-to-day operations of its franchisees, including employment, benefits and wage determination, prices charged for products and services, business hours, personnel management, and capital expenditure decisions. However, the franchise agreements afford certain rights to the Company, such as the right to approve locations, suppliers, and the sale of a franchise. Additionally, franchisees are required to conform to the Company's established operational policies and procedures relating to consistent brand standards, quality of service, training, salon design, and decor and trademark usage. The Company's field personnel utilize dashboards with key performance indicators and make periodic visits to franchised salons to ensure they are operating in conformity with the standards for each franchising program. The Company also retains a third party to ensure adherence to brand standards for Supercuts. In contrast to franchised locations, the Company's 264 company-owned salons, operating primarily under the Supercuts, Cost Cutters, and Holiday Hair brands, are directly operated by the Company. In these locations, the Company exercises full control over day-to-day operations, including employment decisions, scheduling, compensation, and operational standards. The company- owned salon portfolio also serves as a testing ground for brand and operational initiatives that, once proven successful, can be scaled across the broader franchise system. All the rights afforded to the Company with regard to franchised operations allow the Company to protect its brands, but do not allow the Company to control day-to-day franchise operations or make decisions that have a significant impact on the success of the franchised salons. The Company's franchise agreements do not give the Company any right, ability or potential to determine or otherwise influence any terms and/or conditions of employment of franchisees' employees (except for those, if any, that are specifically related to quality of service, training, salon design, decor and trademark usage), including, but not limited to, franchisees' employees' wages and benefits, hours of work, scheduling, leave programs, seniority rights, promotional or transfer opportunities, layoff/recall arrangements, grievance and dispute resolution procedures, and/or discipline and discharge. Franchise Terms. Pursuant to a franchise agreement with the Company, each franchisee pays an initial fee for each salon and ongoing royalties to the Company. In addition, for most brands, the Company collects advertising funds from franchisees and administers the funds on behalf of the brands. Franchisees are responsible for the costs of leasehold improvements, furniture, fixtures, equipment, supplies, inventory, payroll costs, and certain other items, including initial working capital. The majority of franchise agreements provide the Company a right of first refusal if the store is to be sold, and the franchisee must obtain the Company's approval in all instances where there is a sale of a franchise location. Additional information regarding each of the major franchised brands is listed below: Supercuts Supercuts franchise agreements have a perpetual term, subject to termination of the underlying lease agreement or termination of the franchise agreement by either the Company or the franchisee. All new franchisees enter into development agreements, which give them the right to enter into a defined number of franchise agreements. The majority of these franchise agreements are site-specific because the site of the franchised location is known at the time of execution. Otherwise, the location in the franchise agreement is identified as to-be- determined, and the franchise agreement is amended to identify a specific site once determined. The development agreement provides limited territorial protection for the stores developed under those franchise agreements. Older franchisees have grandfathered expansion rights, which allow them to develop stores outside of development agreements and provide them with greater territorial protections in their markets. The Company has a comprehensive impact policy that resolves potential conflicts among Supercuts franchisees and/or the Company's Supercuts locations regarding proposed store sites. SmartStyle and Cost Cutters in Walmart Supercenters SmartStyle locations, more than 900 in total, operate within Walmart Supercenters, as do a number of Cost Cutters salons. The majority of existing SmartStyle and Cost Cutters franchise agreements for salons located in Walmart Supercenters have a five-year term with a two or five-year option to renew. The franchise agreements are site specific. 5
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Table of Contents Cost Cutters (not located in Walmart Supercenters), First Choice Haircutters, Magicuts and Roosters Men’s Grooming Center (Portfolio Brands) The majority of existing Cost Cutters franchise agreements have a 15-year term with a 15-year option to renew (at the option of the franchisee), while the majority of First Choice Haircutters franchise agreements have a 10-year term with a five-year option to renew. The majority of Magicuts franchise agreements have a term equal to the greater of five years or the current initial term of the lease agreement with an option to renew for two additional five-year periods. The current franchise agreement is site specific. Franchisees may enter into development agreements with the Company, which provide limited territorial protection. Roosters franchise agreements have a 10-year term with a 10-year option to renew (at the option of the franchisee). New franchisees enter into a franchise agreement concurrently with the opening of their first store, along with a development agreement with the right to open two additional locations. Franchisee Training. The Company provides new franchisees with training, focusing on the various aspects of salon management, including operations, management training, marketing fundamentals, and controls. Existing franchisees receive training, coaching, and information from the Company on a regular basis. The Company provides franchise salon managers and stylists with access to technical training resources. Guests. Among other factors, consistent delivery of an exceptional guest experience, haircut quality, convenience, competitive pricing, salon location, inviting salon appearance and atmosphere, comprehensive retail assortments, and engagement through technology all drive guest traffic and improve guest retention. Guest Experience. Our portfolio of salon concepts enables our guests to select different service scheduling options based upon their preference. We believe the ability to serve walk-in appointments and minimize guest wait times are essential elements in delivering an efficient guest experience. Our mobile applications and online check-in or scheduling capabilities allow us to capitalize on our guests' desire for convenience by allowing for future check-ins with optional stylist selection, and offering predicted wait times for guests who wish to walk in. Our franchisees continue to focus on stylist staffing and retention, optimizing schedules, balancing variable labor hours with guest traffic, and managing guest wait times. Our franchise salons are located in high-traffic strip centers and Walmart Supercenters with guest parking and easy access to offer guests a variety of convenient ways to fulfill their beauty needs. Stylists. Our Company depends on the stylists in our system to help deliver great guest experiences. Stylists are licensed cosmetologists who receive additional training and development at Regis, which provides differentiation from independent salons. We believe in the importance of the ongoing development of stylists' craft. We aim to be an industry leader in stylist training, including the utilization of both live and digital training. We believe stylists deliver a superior experience for guests when they are well-trained technically and through years of experience. We employ trainers who provide new hire training for stylists joining the Company and train franchisee trainers. We supplement internal training with targeted vendor training and external trainers that bring specialized expertise to stylists in our system. We utilize training materials to help all levels of field employees navigate the operation of a salon and essential elements of guest service training within the context of brand positions. Affordability. The Company strives to offer exceptional value for its services. In the value category, our guests expect outstanding service at competitive prices. These expectations are met with the average service price of transactions ranging from $27 to $39. Pricing decisions are considered on a salon-level basis and are established based on local conditions. Our franchisees control pricing at their locations. Retail Assortments. Salons sell nationally recognized hair care and beauty products. The top selling brands within the Company’sretail assortment include: L'Oreal Professional Brands and John Paul Mitchell. Stylists are regularly trained to sell hair care and beauty products to their guests and may be compensated via bonus plans for retail sales. Additionally, guests are encouraged to purchase products after stylists demonstrate their efficacy by using them in the styling process in order to improve the health of the guests' hair. Marketing. Our marketing is brand specific and funded primarily from contractual contributions, based on sales, to the brand's cooperative advertising funds. These funds are used largely in support of advertising and other efforts to increase guest awareness, relevance, and affinity for our brands, driving traffic, retention and share of visits to our salons. A portion of our marketing funds are used in support of stylist recruitment and training to attract quality stylists to our brands. Technology. In fiscal year 2022, we sold our proprietary back-office salon management system, Opensalon Pro, to a third party, Soham Inc. (Zenoti). See Note 3 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K. As of August 2024, all our salons transitioned to the Zenoti salon technology platform. We also use mobile applications to allow guests to view wait times and interact in other ways with salons. ® 6
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Table of Contents Salon Support. Our corporate headquarters is referred to as Salon Support or the Support Center. We take a service-oriented mentality to best support our franchisees and oversee our company-owned locations. Salon Support and our associated priorities are aligned with our brands to enhance the effectiveness and efficiency of the service we provide. Salon Support is located in Minneapolis, Minnesota, while allowing for hybrid and remote work. 7
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Table of Contents Salon Concepts: The Company's salon concepts focus on providing high-quality hair care services and professional hair care products. Descriptions of the Company's salon concepts are listed below: Supercuts. Supercuts salons provide consistent, high-quality hair care services and professional hair care products to guests at convenient times and locations at value prices. This concept appeals to men, women, and children. The Company has 1,634 franchised and 95 company-owned Supercuts locations throughout North America. SmartStyle/Cost Cutters in Walmart stores. SmartStyle and Cost Cutters salons offer a full range of custom styling, cutting, and hair coloring, as well as professional hair care products and are currently located in Walmart Supercenters. This concept has primarily a "walk-in" guest base with value pricing. The Company has 984 franchised SmartStyle and Cost Cutters salons located in Walmart Supercenter locations throughout North America. Portfolio Brands. Portfolio Brands salons are made up of acquired regional salon groups operating under the primary concepts of Cost Cutters, First Choice Haircutters (Canada), Roosters, Hair Masters, Magicuts and Holiday Hair, as well as other concept names. Most concepts offer a full range of custom hairstyling, cutting and coloring services, as well as professional hair care products. The Company has 763 franchised and 169 company-owned Portfolio Brands locations throughout North America. The Holiday Hair brand is 100% company-owned. International Salons. The Company's International salons are locations operating in the United Kingdom, primarily under the Supercuts and Regis concepts. These salons offer similar levels of service as our North American salons. Salons are usually located in prominent high-traffic locations and offer a full range of custom hairstyling, cutting and coloring services, as well as professional hair care products. The Company has 67 licensed international locations. Canadian and Puerto Rican salons are included in the North American salon totals. The tables below set forth the number of system-wide locations (franchised and company-owned) and activity within the various salon concepts. System-wide Location Counts Fiscal Years 2026 2025 2024 FRANCHISE SALONS: Supercuts 1,634 1,711 1,946 SmartStyle/Cost Cutters in Walmart stores 984 1,049 1,232 Portfolio Brands 763 816 1,117 Total North American salons 3,381 3,576 4,295 Total International salons 67 71 96 Total franchise salons 3,448 3,647 4,391 as a percent of total franchise and company-owned salons 92.9 % 92.5 % 99.6 % COMPANY-OWNED SALONS: Supercuts 95 100 3 SmartStyle/Cost Cutters in Walmart stores — — 8 Portfolio Brands 169 194 6 Total company-owned salons 264 294 17 as a percent of total franchise and company-owned salons 7.1 % 7.5 % 0.4 % Total franchise and company-owned salons 3,712 3,941 4,408 8
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Table of Contents Constructed Locations (Net of Relocations) Fiscal Years 2026 2025 2024 FRANCHISE SALONS: Supercuts 2 12 9 SmartStyle/Cost Cutters in Walmart stores — 6 — Portfolio Brands 5 — 5 Total North American salons 7 18 14 Total International salons 1 — 1 Total franchise salons 8 18 15 Closed Locations Fiscal Years 2026 2025 2024 FRANCHISE SALONS: Supercuts (82) (139) (145) SmartStyle/Cost Cutters in Walmart stores (64) (189) (166) Portfolio Brands (56) (95) (111) Total North American salons (202) (423) (422) Total International salons (5) (25) (7) Total franchise salons (207) (448) (429) COMPANY-OWNED SALONS: Supercuts (5) (11) (3) SmartStyle/Cost Cutters in Walmart stores — (8) (30) Portfolio Brands (25) (18) (8) Total company-owned salons (30) (37) (41) 9
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Table of Contents Conversions (Including Net Franchisee Transactions) Fiscal Years 2026 2025 2024 FRANCHISE SALONS: Supercuts 3 (108) 1 SmartStyle/Cost Cutters in Walmart stores (1) — 10 Portfolio Brands (2) (206) (1) Total franchise salons — (314) 10 COMPANY-OWNED SALONS: Supercuts — 108 (1) SmartStyle/Cost Cutters in Walmart stores — — (10) Portfolio Brands — 206 1 Total company-owned salons (1) — 314 (10) _____________________________________________________________________________ (1) Total company-owned salon conversions for fiscal year 2025 include salons acquired through the Alline Acquisition. 10
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Table of Contents Corporate Trademarks: The Company holds numerous trademarks, both in the United States and in many foreign countries. The most recognized trademarks are "SmartStyle ," "Supercuts ," "Regis Salons ," "Cost Cutters ," "First Choice Haircutters ," "Roosters " and "Magicuts ." Human Capital Management: Our Culture Our people and culture are fundamental to our success. Our vision is to define the future of haircare through a scaled portfolio of relevantly differentiated, category-leading brands — powered by digital innovation and operational excellence — to deepen guest loyalty and deliver sustainable long-term growth. At the heart of our culture is our purpose: Unleashing the Beauty of Potential. This purpose is brought to life through our four core values: Own It. Take responsibility, exercise sound judgment, remain results-driven and be accountable for delivering high-quality work and outcomes. Foster Trust. Build strong relationships by treating others with respect and acting with empathy, transparency, and integrity. Be Brave. Remain focused on growth, bring a can-do attitude, pursue bold ideas, and courageously challenge the status quo. Create Community. Connect and collaborate with our partners, sharing challenges as openly as we celebrate successes. Together, our purpose and values shape a collaborative, inclusive, and accountable culture that empowers our people, strengthens our organization, and supports the long-term success and growth of our Company. Our People As of June 30, 2026, the Company employed 1,611 employees. The Company offers flexible work arrangements such as hybrid and remote work. Diversity and Inclusion The Company promotes diversity of thoughts, backgrounds, experiences, and ideas. As of June 30, 2026, women represent 95% of the Company's workforce and men represent 5%. Additionally, 59% of the Company's leadership positions are held by women. ® ® ® ® ® ® ® 11
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Table of Contents Families First Over one hundred years ago, the Company began as a family business, and its support of families continues today. It offers up to 16 weeks of parental leave, including adoption, up to 12 of which are paid, so that parents have time to focus on their newest family members. It also offers flexible work arrangements, including full-time telecommuting. Additionally, the Company offers flexible paid time off, which allows employees to control their time away from work based on individual needs, not years of service. Other Compensation and Benefits The Company also takes care of its people by offering competitive compensation and benefits packages that are designed to support the total well-being and promote the full potential of our employees and their families. These include short- and long-term incentive packages, an employee stock purchase plan, retirement plans, health, dental, and vision benefits, basic life insurance, long-term disability coverage, and wellness and employee assistance programs. The Company analyzes market trends and monitors its own compensation practices to attract, retain, and promote employees and reduce turnover and associated costs. In addition, its short- and long-term incentive plans are aligned with its core values and key business objectives, which are intended to motivate strong performance. Corporate Responsibility The Company will not do business with organizations that employ or condone unfair labor practices. Instead, it partners with companies who share the Company's commitment to ethical business conduct and fair labor practices. The Company also specifically condemns human trafficking and abuse of child labor. 12
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Table of Contents Governmental Regulations: The Company is subject to various federal, state, local and provincial laws affecting its business, as well as a variety of regulatory provisions relating to the conduct of its beauty-related business, including health and safety. We monitor state and local regulations carefully to ensure the safety of our stylists and guests. In the United States, the Company's franchise operations are subject to the Federal Trade Commission's Trade Regulation Rule on Franchising (the FTC Rule) and to state laws and administrative regulations that regulate various aspects of franchise operations and sales. The Company's franchises are offered to franchisees by means of a disclosure document containing specified disclosures in accordance with the FTC Rule and the laws and regulations of certain states. The Company has registered its offering of franchises with the regulatory authorities of those states in which it offers franchises and where registration is required. State laws that regulate the franchisee/franchisor relationship presently exist in a substantial number of states and, in certain cases, apply substantive standards to this relationship. Such laws may, for example, require that the franchisor deal with the franchisee in good faith, prohibit interference with the right of free association among franchisees, and limit termination of franchisees without payment of reasonable compensation. Governmental regulation of franchises has varied over time based on changes in administration and other factors. However, such laws have not had, and the Company does not expect such laws to have, a significant effect on the Company's operations. In Canada, the Company's franchise operations are subject to franchise laws and regulations in the provinces of Ontario, Alberta, Manitoba, New Brunswick, Prince Edward Island and British Columbia. The offering of franchises in Canada occurs by way of a disclosure document, which contains certain disclosures required by the applicable provincial laws. The provincial franchise laws and regulations primarily focus on disclosure requirements, although each requires certain relationship requirements, such as a duty of fair dealing and the right of franchisees to associate and organize with other franchisees. The Company believes it is operating in substantial compliance with applicable laws and regulations governing all its operations. Financial Information about Foreign and North American Operations Financial information about foreign and North American operations is incorporated herein by reference to Management's Discussion and Analysis of Financial Condition and Results of Operations in Part II, Item 7 and segment information in Note 15 to the Consolidated Financial Statements in Part II, Item 8 of this Form 10-K. Available Information The Company is subject to the informational requirements of the Securities Exchange Act of 1934, as amended (Exchange Act). The Company therefore files periodic reports, proxy statements and other information with the Securities and Exchange Commission (SEC). All our reports, proxy and information statements and other information are available on the SEC's internet site (www.sec.gov). Financial and other information can be accessed in the Investor Relations section of the Company's website at www.regiscorp.com. The Company makes available, free of charge, copies of its annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after filing such material electronically or otherwise furnishing it to the SEC. 13
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Table of Contents Information About Our Executive Officers: Information relating to the Executive Officers of the Company follows: Name Age Position Jim Lain 62 Executive Vice President, Chief Operating Officer Susan Lintonsmith 61 President, Chief Executive Officer Keelee MacDonald 52 Senior Vice President, Franchise Operations James Suarez 51 Executive Vice President, Company Operations Kersten Zupfer 51 Executive Vice President, Chief Financial Officer Jim Lain resumed his role as Executive Vice President and Chief Operating Officer in March 2026, after serving as Interim President andChief Executive Officer from July 1, 2025 through March 15, 2026, while simultaneously fulfilling his role as Executive Vice President,Brand Operations - Supercuts and Cost Cutters since August 2024. Previously, Mr. Lain served as Executive Vice President and Chief Operating Officer from December 2021 to August 2024, President of SmartStyle from June 2021 to December 2021, and President ofPortfolio Brands from December 2020 to June 2021. Mr. Lain served as a consultant to the Company from July 2020 to December 2020and as Executive Vice President and Chief Operating Officer from November 2013 to July 2020. The Board appointed Susan Lintonsmith to serve as President and Chief Executive Officer, effective March 16, 2026. Ms. Lintonsmith hasserved as a director of the Company since January 2025 and served as Board Chair from November 2025 through March 15, 2026. She served as Chief Operations Officer of Sphinx Franchise Holdings, a European Wax Center franchise, from 2022 to March 2026.Previously, she served as Chief Executive Officer, President & Chief Operating Officer of Elements Massage (part of the WellBiz Brands),a massage therapy company, from 2019 to 2020. Prior to Elements Massage, she served in positions of increasing responsibility at QCE LLC (Quiznos), including as Global Chief Marketing Officer from 2011 to 2016, U.S. Chief Operations Officer from 2014 to 2016, andChief Executive Officer & President from 2016 to 2018. Prior to Quiznos, she served as Chief Marketing Officer of Red Robin GourmetBurgers, Inc., from 2007 to 2011 and Vice-President, General Manager of Horizon Organic Dairy, WhiteWave Foods (Dean Foods) from2005 to 2007. Earlier in her career, she held various marketing positions of increasing responsibility at Pizza Hut Inc., The Coca-Cola Company, and Western Union. She has also served on the board of directors of The One Group (Nasdaq: STKS) since 2021 and on theboard of Checkers/Rally's drive-in restaurants since June 2023. Keelee MacDonald was appointed to Senior Vice President, Franchise Operations in January 2026 after rejoining the Company in aconsulting capacity in July 2025. Ms. MacDonald previously served with the Company from November 2014 to August 2024 and heldmultiple senior leadership roles, including Vice President of Franchise and Corporate Operations and Vice President of Field Operations, overseeing multi-brand operations across thousands of salon locations. Prior to Regis, Ms. MacDonald spent nearly a decade with GapInc., in multi-unit leadership roles and began her career with Victoria’s Secret Stores, where she held progressive field leadership positionssupporting high-volume districts. James Suarez was appointed to Executive Vice President, Company Operations in April 2026. As part of that role, he assumed leadershipof the company-owned salons acquired through the Alline Acquisition. Mr. Suarez previously served as Executive Vice President, Merchandising and Education and prior to that promotion had 26 years of combined salon operations and education experience at theCompany, including Senior Vice President of Merchandising and Education from March 2022 to August 2023, Vice President ofMerchandising and Education from October 2021 to February 2022 and as Vice President of Education from August 2017 to October2021. Kersten Zupfer was appointed to Executive Vice President and Chief Financial Officer in November 2019. For more than 13 years before her promotion to Chief Financial Officer, Ms. Zupfer served in accounting and finance roles of increasing leadership at the Company. Ms. Zupfer served as Senior Vice President and Chief Accounting Officer from November 2017 to November 2019, prior to which she served as Vice President, Corporate Controller and Chief Accounting Officer from December 2014 to November 2017. 14
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Table of Contents Item 1A. Risk Factors Business and Industry Risks Changes in consumer shopping trends and manufacturer choice of distribution channels may negatively affect both service and product revenues. Our salons are partly dependent on the volume of customer foot traffic around their locations to generate both service and product revenues. Because many of our salons are located in shopping centers, customer foot traffic may be adversely affected by changing consumer shopping trends that favor internet-based shopping or alternative shopping methods or locations. In addition, we are experiencing a proliferation of alternative channels of distribution, such as blow dry bars, booth rental facilities, discount brick-and-mortar and online professional product retailers, as well as manufacturers selling directly to consumers online, all of which may negatively affect our product and service revenue. Also, product manufacturers may decide to utilize these other distribution channels to a larger extent than in the past and they generally have the right to terminate relationships with us with little advance notice. These changes in distribution channels could also reduce the volume of foot traffic around our salons, and in turn, our revenues may be adversely affected. We may be unable to successfully realize the anticipated benefits of the Alline Acquisition. On December 19, 2024, we acquired 314 stores, of which 261 remain in operation as of June 30, 2026, under our Cost Cutters, Holiday Hair, and Supercuts brand names (Alline, or the Alline Stores) from a former franchisee (the Alline Acquisition). The success of the Alline Acquisition depends on our ability to successfully integrate the Alline Stores with our existing limited network of company-owned stores and operate the Alline Stores as company-owned stores. The anticipated benefits of the Alline Acquisition may not be realized fully, or at all, or may take longer to realize than expected. We may face significant challenges in realizing the anticipated benefits of the Alline Acquisition, including, without limitation: • the diversion of management’s attention from ongoing business concerns and performance shortfalls as a result of the devotion of management’s attention to the integration of the Alline Stores and Alline personnel; • retaining key business relationships and retaining and attracting employees and stylists; • potential unknown liabilities associated with the Alline Acquisition; and • unforeseen expenses and delays related to the integration of Alline Stores into our system. Many of these factors will be outside of our control and any one of them could result in increased costs or decreased revenue, which may have a materially adverse effect on our business, financial condition, and results of operations. We are subject to laws and regulations that could require us to modify our current business practices and incur increased costs, which could have an adverse effect on our business, financial condition, and revenues. In our U.S. markets, numerous laws and regulations at the federal, state, and local levels can affect our business. Legal requirements are frequently changed and subject to interpretations, and we are unable to predict the ultimate cost of compliance with these requirements or their effect on our operations. If we or our franchisees fail to comply with any present or future laws or regulations, we or they could be subject to future liabilities or a prohibition on the operation of salons, and we could be prohibited from offering franchises for sale in certain states. A number of U.S. states, Canadian provinces, and municipalities in which we do business have recently increased, or are considering increasing, the minimum wage, with increases generally phased over several years depending upon the size of the employer. Increases in minimum wages, employment taxes and overtime pay result in an increase in salon operating costs, and the salons' ability to offset these increases through price increases may be limited. In fact, increases in minimum wages have increased salon operating costs over the last five years. In addition, a growing number of states, provinces, and municipalities have passed, or are considering passing, requirements for paid sick leave, family leave, predictive scheduling (which imposes penalties for changing an employee's shift as it nears), and other requirements that increase the administrative complexity and cost of managing a workforce. Increases in costs could lead to reduced profitability of salons, which may lead to salon closures. Finally, changes in labor laws designed to facilitate union organizing could increase the likelihood of stylists being subjected to greater organized labor influence. If a significant portion of stylists were to become unionized, it would have an adverse effect on salon operations, which could adversely impact our business and financial results. If the National Labor Relations Board (NLRB) were to decide to treat our franchisees as "joint employers" with us or if our franchisees are classified as large employers under minimum wage statutes because of their affiliations with us, this could have an adverse impact on our business. In addition, we and our franchisees must comply with state employment laws, including the California Labor Code, which has stringent requirements and penalties for non-compliance. 15
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Table of Contents Various state and federal laws govern our relationships with our franchisees and our potential sale of a franchise. If we fail to comply with these laws, we may subject the Company and our personnel to claims lodged by our franchisees or applicants, as well as federal and state government agencies, and those claims may include, among others, fraud, misrepresentation, unfair business practices, and wrongful terminations. As a result of those claims, we could be liable for fines, damages, stop orders, or other penalties. A franchisee or government agency may bring legal action against us based on the franchisee/franchisor relationship. Also, under the franchise business model, we may face claims and liabilities based on vicarious liability, joint-employer liability, or other theories or liabilities. All such legal actions could not only result in changes to laws and interpretations, which could make it more difficult to appropriately support our franchisees and, consequently, impact our performance, but could also result in expensive litigation with our franchisees, third parties, or government agencies, which could adversely affect both our profits and our important relationships with our franchisees. In addition, other regulatory or legal developments may result in changes to laws or to the franchisee/franchisor relationship that could negatively impact the franchise business model and, accordingly, our profits. We are also subject to federal statutes and regulations, including the rules promulgated by the U.S. Federal Trade Commission, as well as certain state laws governing the offer and sale of franchises. Many state franchise laws impose substantive requirements on franchise agreements, including limitations on non-competition provisions and on provisions concerning the termination or non-renewal of a franchise. Some states require that certain materials be filed for a franchisor to be registered and approved before franchises can be offered or sold in that state. The failure to obtain or retain licenses or approvals to sell franchises could have a material adverse effect on our business, financial condition, results of operations, and prospects. In addition to employment and franchise laws, we are also subject to a wide range of federal, state, provincial, and local laws and regulations in the jurisdictions in which we operate, including those affecting public companies, product manufacturing and sale, and those governing the franchisee/franchisor relationship. Compliance with new, complex, and changing laws may cause our expenses to increase. In addition, any non-compliance with laws or regulations could result in penalties, fines, product recalls, and enforcement actions or otherwise restrict our ability to market certain products or attract or retain employees, which could adversely affect our business, financial condition, and results of operations. Changes in the general economic environment may impact our business and results of operations. Changes to the U.S., Canada, and U.K.'s economies have an impact on our business. General economic factors that are beyond our control, such as recession, inflation, deflation, tax rates and policy, tariffs, energy costs, unemployment trends, extreme weather patterns, viruses, pandemics, stay-at-home orders, and other casualty events that influence consumer confidence and spending, may impact our business and results of operations. In particular, visitation patterns to our salons can be adversely impacted by increases in unemployment rates and decreases in discretionary income levels. Changes in consumer tastes, hair product innovation, fashion trends and consumer spending patterns may impact our revenue. Our success depends, in part, on our ability to anticipate, gauge and react in a timely manner to changes in consumer tastes, hair product innovation, fashion trends and consumer spending patterns. If we do not timely identify and properly respond to evolving trends and changing consumer demands for hair care or services, salon sales may decline. Remote work arrangements reduce foot traffic in downtowns, city centers, and other business districts where our salons are located, causing a reduction in our revenue. Operating Risks We are substantially dependent on franchise royalties and the overall success of our franchisees' salons. Our success is substantially dependent on franchise royalties and the overall success of our franchisees' salons. Some franchisees have seen a decline in revenues in recent years which reduces their profitability. As a result, franchise salon closures have increased, which reduces our royalty income. In addition, franchisees may be unable to pay their royalties which could decrease cash collections. Some franchisees have stopped paying rents as they come due, reduced operating hours, or closed before the lease end date, which are violations of the lease agreements and may result in penalties depending on the lease, which may increase our cash outflows when the franchisee subleases from us, or we guarantee the lease. Franchisees who decide to close their salons when there is not another franchisee willing to take over their business decreases the size of our fleet and our royalty revenues. To support and enhance our franchisees' businesses, we may need to invest in certain unanticipated new capabilities and/or services, and we will need to determine the appropriate amount of investment to optimize the success of our franchisees, while ensuring that the level of investment supports our expected return on those investments. If we are not able to identify the right level of support and effectively deliver those resources to our franchisees, our results of operations and business may be 16
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Table of Contents adversely affected. Furthermore, as a franchised business, we may be exposed to additional legal, compliance and operational risks specific to this business model, including the business failure of unproven new salon owners. Materially increasing the number of salons that we own and operate could expose us to additional risk and adversely affect our financial results. Previously, we transitioned to a fully franchised business model. However, in connection with the Alline Acquisition, we acquired 314stores under our Cost Cutters, Holiday Hair, and Supercuts brand names. We now operate 264 salons, or approximately 7.1% of the salons in our system. Operating salons can expose us to additional risks or exacerbate those risks to which we are already exposed as a franchisor. Operating additional salons inherently increases the operating lease costs, advertising and marketing expenses, professional fees, and other expenses. Furthermore, as a result of the Alline Acquisition, we initially increased our number of employees by more than 1,600. This increase in employees may expose us to additional liability and operating costs, such as risks associated with labor shortages, minimum wage requirements, employment taxes, increased overtime pay and benefits, increased costs for insurance, employment and labor liability, and regulatory compliance risks. We could also be subject to additional liability such as property, environmental and other liability as a result of being a direct operator and lessee of additional salons and liability arising from regulatory compliance. Furthermore, it may create additional costs, expose us to additional legal and compliance risks, cause disruption to our business and impact our financial condition and results of operations. Our salons are dependent on a third-party preferred supplier agreement for merchandise. We depend on a third-party preferred supplier agreement for merchandise. If our supplier is unable to source the products at the prices expected by our franchisees, our franchisees' profitability and our profitability may be adversely impacted. Further, events or circumstances beyond our control, including economic instability and other impactful events and circumstances in the regions in which our supplier and its manufacturers are located, the financial instability of our supplier, our supplier's failure to meet our terms and conditions or our supplier standards, product safety and quality issues, disruption or delay in the transportation of products from our supplier and its manufacturers to our salons, transport availability and cost, transport security, inflation, tariff instability, and other factors relating to the supplier and the areas in which it operates, may adversely impact our and our franchisees' profitability. It is important for us and our franchisees to attract, train and retain talented stylists and salon leaders. Guest loyalty is strongly dependent upon the stylists who serve our guests and the customer experience in our salons. Qualified, trained stylists are key to a memorable guest experience that creates loyal customers. In order to profitably grow our business, it is important for our salons to attract, train and retain talented stylists and salon leaders and to adequately staff our salons. Regulations promulgated by the Department of Education, and changes to the Higher Education Act recently enacted as part of the "One Big Beautiful Bill Act" could reduce access to Federal financial aid for beauty schools which could reduce the number of qualified stylists to recruit if licensing requirements are not adjusted. Because the salon industry is highly fragmented and comprised of many independent operators, the market for stylists is highly competitive. In addition, labor shortages and increases in minimum wage requirements may impact the number of stylists considering careers outside the beauty industry. In most markets, we and our franchisees have experienced a shortage of qualified stylists or a reduction in the hours stylists will work. Offering competitive wages, benefits, education, and training programs are important elements to attracting and retaining qualified stylists. In addition, due to challenges facing the for-profit education industry, cosmetology schools have experienced declines in enrollment, revenues, and profitability in recent years. If the cosmetology school industry sustains further declines in enrollment or some schools close entirely, or if stylists leave the beauty industry, we expect that we and our franchisees would have increased difficulty staffing our salons in some markets. We are making significant investments in programs to attract and retain stylists. If our strategies are not successful in attracting, training, and retaining stylists or in staffing salons, our system-wide sales or the performance of our business could experience periods of volatility or sales could decline and our results of operations could be adversely affected. Our continued success depends, in part, on the success of our franchisees, which operate independently. As of June 30, 2026, approximately 92.9% of our salons were franchised locations. We derive revenues associated with our franchised locations primarily from royalties and fees. Our financial results are therefore substantially dependent upon the operational and financial success of our franchisees. As a franchise business, we are dependent on our franchisees. We have limited control over how our franchisees' businesses are operated. Though we have established operational standards and guidelines, franchisees own, operate, and oversee the daily operations of their salon, including employee-related matters and pricing. If franchisees do not successfully operate their salons in compliance with our standards, our brand reputation and image could be harmed, and our financial results could be affected. Additionally, if franchisees do not price their goods and 17
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Table of Contents services competitively, the franchisee may fail to maximize the financial performance of their salon. We could experience greater risks as the scale of our franchised salons increases. In addition, our franchisees are subject to the same general economic risks as our Company, and their results are influenced by competition for both guests and stylists, market trends, price competition and disruptions in their markets and business operations due to public health issues, including pandemics, severe weather, and other external events. Our franchisees may be located in areas that are subject to natural disasters such as severe weather and other potential risks and costs associated with the impacts of climate change. Like us, they rely on external vendors for some critical functions and to protect their company data. They may also be limited in their ability to open new locations by an inability to secure adequate financing, especially because many of them are small businesses with much more limited access to financing than our Company or by the limited supply of favorable real estate for new salon locations. They may also experience financial distress because of over-leveraging, which could negatively affect our operating results due to delayed or non-payments to us. The bankruptcy, default, abandonment, or breach by or of a franchisee could also expose us to lease liability due to our lease guarantees or subleases as explained previously. A deterioration in the financial results of our franchisees, a failure of our franchisees to renew their franchise agreements or closure of locations adversely affects our operating results through decreased royalty payments and fees. We also must continue to attract qualified franchisees and work with them to make their businesses successful. In addition, challenges in supporting our franchise system could cause our operating results to suffer. If we are unable to effectively select and train new franchisees and support our growing franchisee base, it could affect our brand standards, cause disputes between us and our franchisees, and potentially lead to material liabilities. Our business is dependent on franchisees continuing to operate. When a franchisee exits the franchise system, and we are unable to recruit an existing or new franchisee to run that salon location, our salon count and revenues decline. A decline in salon count could also reduce the value of our brands. Additionally, we are dependent on our franchisees to grow their business in order for our business to grow. However, franchisees may not have access to capital, labor, etc., to support their growth. Data security and data privacy compliance requirements could increase our costs, and cybersecurity incidents could result in the compromise of potentially sensitive information about our guests, franchisees, employees, vendors, or Company and expose us to business disruption, negative publicity, costly government enforcement actions or private litigation and our reputation could suffer. The normal operations of our business and our investments in technology involve processing, transmitting and storing potentially sensitive personal information about our guests, employees, franchisees, vendors and our Company, all of which require the appropriate and secure utilization of such information and subjects us to increased focus regarding our data security compliance. Cyber-attacks, including ransomware, designed to gain access to sensitive information by breaching mission critical systems of large organizations (and their third- party vendors) are constantly evolving and high-profile electronic security breaches leading to unauthorized release of sensitive information have occurred at a number of large U.S. companies in recent years. Furthermore, there has been heightened legislative and regulatory focus on data security in the U.S. and abroad, including requirements for varying levels of customer notification in the event of a data breach. These laws are changing rapidly and vary among jurisdictions. We will continue our efforts to meet any applicable privacyand data security obligations; however, it is possible that certain new obligations may be difficult to meet and could increase our costs. We rely on commercially available systems, software, and tools to provide security for processing, transmitting, and storing of sensitive information. As the risk of cyber-attacks increases, our related insurance premiums may also increase. Despite the security measures and processes we have in place, our efforts (and those of our third-party vendors) to protect sensitive guest, employee, franchisee, vendor, and Company information may not be successful in preventing a breach in our systems or detecting and responding to a breach on a timely basis. We have, from time to time, experienced threats to, and incidents involving, our systems and information, none of which have been material to date. As a result of a security incident or breach in our systems, our systems could be interrupted or damaged, and/or sensitive information could be accessed by third parties. If that occurred, our guests could lose confidence in our ability to protect their information, which could cause them to stop visiting our salons altogether or our franchisees could exit the system due to lack of confidence. Such events could also lead to lost future sales and adversely affect our results of operations. In addition, as the regulatory environment relating to retailers and other companies' obligations to protect sensitive data becomes stricter, a material failure on our part to comply with applicable regulations could potentially subject us to fines, penalties, other regulatory sanctions, or lawsuits with the possibility of substantial damages. The costs to remediate security incidents or breaches that may occur could be material. Also, as cyber-attacks become more frequent, intense, and sophisticated, the costs of proactive defensive measures may increase. Furthermore, while our franchisees are independently responsible for data security at their franchised salon locations, a security incident or breach at a franchised salon location could negatively affect public perception of our brands. More broadly, our incident response preparedness and disaster recovery planningefforts may be inadequate or ill-suited for a security incident, and we could suffer disruption of operations or adverse effects to our operating results. 18
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Table of Contents Our use of artificial intelligence presents risks that could adversely affect our business, operations, and reputation. We have begun incorporating artificial intelligence (AI) technologies into certain aspects of our business operations. Currently, our AI Taskforce is leading an initiative that leverages AI tools to analyze operational and guest traffic data to guide decisions regarding optimal salon operating hours across our salon portfolio, and we anticipate expanding our use of AI in additional operational and business contexts in fiscal year 2027 and beyond. Although we believe these initiatives have the potential to improve operational efficiency and support profitability, the use of AI also introduces a number of risks. AI systems rely on data inputs and algorithms that may produce inaccurate, incomplete, or biased results, and decisions made in reliance on flawed AI outputs could result in suboptimal operating hours, lost revenue, stylist scheduling inefficiencies, or guest dissatisfaction. AI systems may also process sensitive operational, employee, or guest data, increasing exposure to cybersecurity threats and potential liability in the event of a breach or misuse. If our AI investments fail to deliver expected benefits, or if our competitors deploy AI more effectively or at lower cost — for example, to optimize personalized guest experiences, dynamic pricing, marketing, or stylist matching — we may be unable to compete effectively, which could result in a loss of guests or market share. Furthermore, the legal and regulatory landscape governing the use of AI is evolving rapidly, and compliance with new or amended laws may require us to modify or discontinue certain AI-enabled processes, potentially resulting in fines or penalties if we fail to comply. We are in the early stages of developing internal AI governance capabilities, including an AI Acceptable Use Policy to guide employees on appropriate use of AI tools, and will continue to evolve our policies and practices in response to further developments in AI. Even with these policies, there remains a risk of unauthorized or inappropriate use of AI that could expose the Company to legal, reputational, or operational harm. We also may utilize third-party vendors to develop or operate AI capabilities, and there may be third parties with whom we do business using AI, and any failure or discontinuation of their services or businesses could disrupt our operations. We cannot guarantee that the benefits of our current or future AI initiatives will outweigh the associated risks, and any of the foregoing, if they materialize, could adversely affect our business, financial condition, and results of operations. Our U.S. SmartStyle and Cost Cutters (located in Walmart) salon operations are dependent on our relationship with Walmart. As of June 30, 2026, we had 984 SmartStyle or Cost Cutters salons within Walmart locations. Walmart is our largest landlord. Business within each of those salons relies primarily on the traffic of visitors to the Walmart location, so our success is tied to Walmart's success in bringing shoppers into their stores. We have limited control over the locations and markets in which we open new locations, as we only have potential opportunities in locations offered to us by Walmart. Furthermore, Walmart has the right to (a) close up to 100 salons per year for any reason, upon payment of certain buyout fees; (b) terminate lease agreements for breach, such as if we failed to conform with required operating hours, subject to a notice and cure period; (c) non-renew the lease agreements if salons fail to reach certain sales thresholds; (d) impose penalties for failing to meet required operation hours; and (e) terminate the lease if the Walmart store is closed. Future franchising activity is dependent upon a continued relationship between us and Walmart, as well as Walmart's approval of our proposed franchisee on a location-by-location basis. Further, Walmart may attempt to impose changes to the terms and conditions of our agreements, which may be contrary to our economic interests. Operating these salons adds complexity in overseeing franchise compliance and coordination with Walmart. Additionally, there are various remodel requirements of our franchisees, whether it be upon lease expiration or the remodeling of a Walmart location. To the extent Walmart accelerates the pace of their own store remodels, our salons in remodeled Walmart locations would be held to the same standard. The cost of these remodels may be prohibitive to our franchisees and could lead to the Company bearing a portion of the cost, or closures if the remodel requirement is not satisfied. Our future growth and profitability may depend, in part, on our ability to build awareness and drive traffic through advertising and marketing efforts and on delivering a quality guest experience to drive repeat visits to our salons. Our future growth and profitability may depend on the effectiveness, efficiency and spending levels of our marketing and advertisingefforts to drive awareness and traffic to our salons. In addition, delivering a quality guest experience is crucial to drive repeat visits to our salons. We are focusing on improving guest experiences to provide brand differentiation and preference as well as ensuring our guests' needs are met. If our marketing, advertising, and improved guest experience efforts do not generate sufficient customer traffic and repeat visits to our salons, our business, financial condition, and results of operations may be adversely affected. Additionally, we plan to continue expanding our digital marketing efforts, including seeking additional options for loyalty and rewards software to complement our current system. The success of those efforts is dependent upon our franchisees’ proper continued use of the Zenoti salon technology platform, accurate and consistent guest data capture, and customers continuing to opt-in to receive marketing messages from us. Our success depends substantially on the value of our brands. 19
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Table of Contents Our success depends, in large part, on our ability to maintain and enhance the value of our brands, our customers' connection to our brands and a positive relationship with our franchisees. Declining revenue reduces the advertising funds available to invest in the brands and a decline in the Company's investment in its brands could reduce brand awareness and the overall value of our brands. Brand value can be severely damaged even by isolated incidents, particularly if the incidents receive considerable negative publicity, including via social media or if they result in litigation. Some of these incidents may relate to the way we manage our relationships with our franchisees, our growth strategies, our development efforts, or the ordinary course of our or our franchisees' business. Other incidents may arise from events that may be beyond our control and may damage our brands, such as actions taken (or not taken) by one or more franchisees or their employees relating to health, safety, welfare, social issues or otherwise, litigation and claims, security breaches or other fraudulent activities associated with our back-office management or payment systems, and illegal activity targeted at us or others. Consumer demand for our products and services and our brands' value could diminish significantly if any such incidents or other matters erode consumer confidence in us or our products or services. This could result in lower sales and, ultimately, lower royalty income, which could materially and adversely affect our business and operating results. We rely heavily on our information technology systems for our key business processes. If we experience an interruption in their operation, our results of operations may be affected. The efficient operation of our business is dependent on our management information systems. We rely heavily on our management information systems to collect daily sales information and guest demographics, monitor salon performance, generate payroll information, and other functions. Such systems are subject to damage or interruption from power outages, computer and telecommunications failures, computer viruses, hacker attempts, security breaches, and natural disasters. Certain capabilities or entire systems may become outdated which could limit functionality. These management information systems may require upgrades or replacements periodically, which involve implementation and other operational risks. In addition, our management information systems are developed and maintained by external vendors, including the Zenoti salon technology platform used by our franchisees and company-owned salons. The failure of our management information systems to perform as we anticipate, to meet the continuously evolving needs of our business, or to provide an affordable long-term solution, could disrupt our business operations and result in other negative consequences, including remediation costs, loss of revenue and reputational damage. Further, if our external vendors fail to adequately provide technical support for any one of our key existing management information systems or if new or updated components are not integrated smoothly, we could experience service disruptions that could result in the loss of important data, increase our expenses, decrease our revenues and generally harm our business, reputation and brands. Any such conduct with respect to our franchisees could also result in litigation. We rely on external vendors for products and services critical to our operations. We, along with our franchisees, rely on external vendors for the manufacture, supply, and distribution of retail products we sell, and products we use during salon services, such as color and chemical treatments. We also rely on external vendors for various services critical to our operations and the security of certain Company data. Our dependence upon vendors exposes us to operational, reputational, financial and compliance risk. If salon product offerings do not meet guests' expectations regarding safety and quality, we could experience lost sales, increased costs, and exposure to legal and reputational risk. All our vendors must comply with applicable product safety laws, and we are dependent on them to ensure that the products and packages we buy, for either use on a guest during a service or resale to the public, comply with all safety and quality standards. Events that give rise to actual, potential, or perceived product safety concerns or mislabeling could expose us to government enforcement action and/or private litigation and result in costly product recalls and other liabilities. Our vendors are also responsible for the security of certain Company data, as discussed above. If one of our key vendors becomes unable to continue to provide products and services, if their systems fail or are compromised, or if the quality of their systems deteriorates, we may suffer operational difficulties and financial loss. The use of social media may have an adverse effect on our reputation. Our reputation is critical to our ability to compete and succeed. However, our reputation may be damaged by negative publicity on social media or other channels regarding the quality of products or services we provide. There has been a substantial increase in the use of social media platforms, which allow individuals to be heard by a broad audience of consumers and other interested persons. Negative or false commentary regarding our brands or the products or services we offer may be posted on social media platforms at any time. Customers value readily available information and may act on information without further investigation or regard to its accuracy. The harm to our reputation may be immediate, without affording us an opportunity for redress or correction. Our reputation may also be damaged by factors that are mostly or entirely out of our control, including actions by a franchisee or a franchisee's employee. 20
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Table of Contents We also use social media platforms as marketing tools. As laws and regulations rapidly evolve to govern the use of these platforms, the failure by us, our employees, franchisees or third parties acting at our direction, to abide by applicable laws and regulations in the use of these platforms could adversely affect our business, financial condition, and revenues. Our enterprise risk management program may leave us exposed to unidentified or unanticipated risks. We maintain an enterprise risk management program that is designed to identify, assess, mitigate, and monitor the risks that we face. There can be no assurance that our frameworks or models for assessing and managing known risks, compliance with applicable laws and related controls will effectively mitigate risk and limit losses in all market environments or against all types of risk in our business. If conditions or circumstances arise that expose flaws or gaps in our risk management or compliance programs, the performance and value of our business could be adversely affected. Insurance and other traditional risk-shifting tools may be held by, or made available to, us in order to manage certain types of risks, but they are subject to terms such as deductibles, retentions, limits and policy exclusions, as well as risk of denial of coverage, default or insolvency. If we suffer unexpected or uncovered losses, or if any of our insurance policies or programs are terminated for any reason or are not effective in mitigating our risks, we may incur losses that are not covered or that exceed our coverage limits and could adversely impact our results of operations, cash flows and financial position. Our franchise agreements require each franchisee to maintain specified insurance coverages and levels. Certain extraordinary hazards, however, may not be covered, and insurance may not be available (or may be available only at prohibitively expensive rates) with respect to many other risks. Moreover, any loss incurred could exceed policy limits and policy payments made to franchisees may not be made on a timely basis. Any such loss or delay in payment could have a material and adverse effect on a franchisee's ability to satisfy its obligations under its franchise agreement, including its ability to make royalty payments. We have implemented a new enterprise resource planning system, and challenges arising from the implementation or the ongoing operation of the system may impact our internal control over financial reporting, business, and operations. We have completed a multi-year process of implementing an enterprise resource planning (ERP) system, which was a major undertaking that replaced most of our existing financial systems. The new ERP system, which was implemented August 1, 2026, is used to maintain financial records, enhance data security and operational functionality and resiliency, and provide timely information to management related to the operation of the business. The implementation required the integration of the new ERP system with existing information systems and business processes and will continue to require investment of significant capital and human resources, including the attention of members of our management team. While the initial implementation is complete, we may continue to encounter deficiencies in the design or operation of the new ERP system that could result in significantly greater capital expenditures and employee time and attention than currently contemplated and could adversely affect our ability to operate our business, including effective management of ourinvoicing and accounts receivable and collections processes, our ability to file timely reports with the SEC, or otherwise affect the proper and efficient operation of our controls. If the system as implemented, or after necessary investments, does not result in our ability to maintain accurate books and records, our financial condition, results of operations, and cash flows could be materially adversely impacted. If we are unable to adequately maintain procedures and controls relating to our ERP, our ability to produce timely and accurate financial statements or comply with applicable regulations could be impaired and impact the effectiveness of our internal control over financial reporting. All of the above could result in harm to our reputation or our customers and franchisees, as well as expose us to regulatory actions or claims, any of which could materially impact our business, results of operations, financial condition, and stock price. Financial and Economic Risks We may be unable to generate sufficient cash flow to satisfy our debt service obligations, which would materially adversely affect our financial condition and results of operations. Our ability to make interest payments and comply with debt covenants associated with our indebtedness depends on our ability to generate cash in the future, which, to a certain extent, is subject to general economic, financial, competitive, legislative, regulatory, and other factors that are beyond our control. Specifically, our interest payments are based on the secured overnight financing rate (SOFR), such that an increase in the SOFR will have a negative impact on our cash flows. 21
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Table of Contents If we fail to comply with any of the covenants in our existing financing arrangement, we may not be able to access our existing revolving credit facility, and we may face an accelerated obligation to repay our indebtedness. If we fail to comply with the terms in our existing financing arrangements, such a failure may cause a default under our financing arrangement, which could limit our ability to obtain new replacement financing or additional financing under our existing credit facility, require us to pay higher levels of interest or accelerate our obligation to repay our indebtedness. The impact of significant business disruptions could ultimately impair our ability to comply with our covenants, which could preclude our ability to access our credit facility or accelerate our debt repayment obligation, which is secured by a lien on substantially all of the Company's assets. Premature termination of franchise agreements can cause losses. Our franchise agreements may be subject to premature termination in certain circumstances, such as failure of a franchisee to cure a default, monetary or otherwise, a franchisee bankruptcy, voluntary termination, or abandonment of the franchise. If terminations occur for these or other reasons, we may need to enforce our right to damages for breach of contract and related claims, which could cause us to incur significant legal fees and expenses and/or to take back and operate such salons as company-owned salons. Any damages we ultimately collect could be less than the projected future value of the fees and other amounts we would have otherwise collected under the franchise agreement. In addition, with many of our brands, we remain liable under the lease and, therefore, will be obligated to pay rent or enter a settlement with the landlord, and we may not be made whole by the franchisee. A significant loss of franchisee agreements due to premature terminations could hurt our financial performance or our ability to grow our business. Failure to control costs may adversely affect our operating results. We must continue to control our expense structure. Failure to manage our labor and benefit rates, advertising and marketing expenses, professional fees, operating lease costs, other expenses, or indirect spending could delay or prevent us from achieving increased profitability or otherwise adversely affect our operating results. Any audit by the Internal Revenue Service with respect to Alline’s receipt of an employee retention credit under The Coronavirus Aid, Relief, and Economic Security (CARES) Act could result in additional taxes or costs to Alline for which we may ultimately be liable. Alline applied for and received an employee retention credit (ERC) under the CARES Act amounting to approximately $29 million. In July 2023, the Internal Revenue Service (IRS) stated its intention to shift its focus to review ERC claims for compliance concerns, including intensifying audit work. Although Alline received the amounts related to the ERC from the IRS, no formal determination regarding Alline’s eligibility to claim the ERC was received, and such eligibility remains subject to audit by the IRS. If the IRS audits Alline during the applicable statute of limitations period and finds that Alline was not eligible to receive all or part of the ERC, Alline would be required to return some or all of the ERC to the IRS, together with any applicable interest and penalties. As of June 30, 2026, the statute of limitations remains open on $10 million of the total ERC Alline received. While the former owners of Alline would be required to indemnify us for any such amounts required to be repaid to the IRS (together with any applicable interest and penalties, and all reasonable costs and expenses incurred by us in defending or addressing any matters related to the ERC), we may not ultimately be able to timely or fully recoup such amounts from the former owners of Alline. If we are ultimately required to repay the ERC, and we are unable to sufficiently recover such amounts from the former owners of Alline, our financial condition, results of operations and liquidity may be materially adversely affected. If we are not able to successfully compete in our business markets, our financial results may be affected. Competition on a market-by-market basis remains challenging as many smaller chain competitors are franchise systems with local operating strength in certain markets and the hair salon industry, as a whole, is fragmented and highly competitive for customers, stylists, and prime locations. Therefore, our ability to attract guests, raise prices and secure suitable locations in certain markets can be adversely impacted by this competition. Our strategies for competing are complicated by the fact that we have multiple brands in multiple segments, which compete on different factors. We also face significant competition for prime real estate, particularly in strip malls. We compete for lease locations not only with other hair salons, but with a wide variety of businesses looking for similar square footage and high-quality locations. If we are unable to successfully compete, we may lose market share and our ability to grow same-store sales and increase our revenue and earnings may be impaired. Corporate Structure and Governance Risks We rely on our management team and other key personnel. We depend on the skills, working relationships and continued services of key personnel, including our management team and others throughout our Company. We are also dependent on our ability to attract and retain qualified personnel, for whom we 22
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Table of Contents compete with other companies both inside and outside our industry. We may be required to increase wages and/or benefits to attract and retain qualified personnel or risk considerable turnover. Our business, financial condition or results of operations may be adversely impacted by the unexpected loss of any of our management team or other key personnel, or more generally if we fail to identify, recruit, train and/or retain talented personnel. In addition, our business may be harmed if we lose too many individuals with institutional knowledge. If we fail to maintain an effective system of internal control over financial reporting, we may not be able to accurately report our financial results and prevent or detect material misstatements due to fraud, which could reduce investor confidence and adversely affect the value of our common stock. Effective internal control over financial reporting is necessary for us to provide reliable financial reports and effectively prevent and detect material fraud. If we cannot provide reliable financial reports or prevent or detect material fraud, our operating results could be materially misstated. There can be no assurances that we will be able to prevent control deficiencies from occurring, which could cause us to incur unforeseen costs, reduce investor confidence, cause the market price of our common stock to decline, or have other potential adverse consequences. Commencing with our fiscal 2023 audit, and as a result of our non-accelerated filer status, we are not required to obtain, nor did we obtain, an audit of our system of internal controls over financial reporting. However, if our public float exceeds $75 million as of the last business day of our second fiscal quarter, we would no longer qualify as a non-accelerated filer and would be required to include an attestation report from our independent registered public accounting firm on the effectiveness of our internal control over financial reporting in future annual reports. Obtaining such an attestation could require significant management time and resources, and there can be no assurance that our independent auditors would not identify one or more material weaknesses in our internal controls at that time, which could adversely affect investor confidence and the market price of our common stock. We could be subject to changes in tax rates, the adoption of new U.S. or international tax legislation or exposure to additional tax liabilities. We are subject to income taxes in the U.S. and other foreign jurisdictions. Significant judgment is required in determining our tax provision for income taxes. In the ordinary course of our business, there are many transactions and calculations where the ultimate tax determination is uncertain. We are subject to the examination of our income tax returns, payroll taxes and other tax matters by the Internal Revenue Service (IRS) and other tax authorities and governmental bodies. We regularly assess the likelihood of an adverse outcome resulting from these examinations to determine the adequacy of our provision for income taxes and payroll tax accruals. There can be no assurances as to the outcome of these examinations. Although we believe our tax estimates are reasonable, the final determination of tax audits, and any related litigation, could be materially different from our historical tax provisions and employment taxes. The results of an audit or litigation could have a material effect on our Consolidated Financial Statements in the period or periods where that determination is made. Our actual effective tax rate may vary from our expectation and that variance may be material. A number of factors may increase our effective income tax rate, including changes in valuation allowances on our deferred tax assets, changes in the mix of earnings in countries with different statutory tax rates, changes in tax laws or the outcome of income examinations. Our Board has adopted a Tax Benefits Preservation Plan, which may not protect the future availability of the Company’s tax assets in all circumstances, and which could delay or discourage takeover attempts that some shareholders may consider favorable. As of June 30, 2026, we had approximately $466 million of U.S. federal net operating losses (NOLs) as well as other tax attributes that could be available in certain circumstances to reduce future U.S. corporate income tax liabilities. Pursuant to Section 382 (Section 382) of the U.S. Internal Revenue Code of 1986, as amended (the Code), and the Treasury Regulations issued thereunder, a corporation that undergoes an "ownership change” is subject to limitations on its use of its existing NOL and interest expense carryforwards and certain other tax attributes (collectively, Tax Assets), which can be utilized in certain circumstances to offset future U.S. tax liabilities. Generally, an "ownership change” occurs if the percentage of the Company’s stock owned by one or more "five percent stockholders” increases by more than fifty percentage points over the lowest percentage of stock owned by such stockholders at any time during the prior three-year period or, if sooner, since the last "ownership change” experienced by the Company. In the event of such an "ownership change,” Section 382 imposes an annual limitation on the amount of post-change taxable income a corporation may offset with pre-change Tax Assets. Similar rules apply in various U.S. state and local jurisdictions. With respect to the substantial majority of our Tax Assets, while we have, in recent years, experienced significant changes in the ownership of our stock, we do not believe we have undergone an "ownership change” that would limit our ability to use these Tax Assets. However, there can be no assurance that the IRS will not challenge this position. On January 28, 2024, our Board of Directors authorized and declared a dividend of one preferred stock purchase right for each outstanding share of Common Stock. See Note 14 to the Consolidated Financial Statements for additional information on the 23
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Table of Contents terms and operation of the Tax Benefits Preservation Plan (the "Plan”), dated as of January 29, 2024, as the same may be amended from time to time, between the Company and Equiniti Trust Company, LLC, as Rights Agent. On January 27, 2025, the Company entered into Amendment No. 1 to the Plan, extending the expiration date of the Plan from January 29, 2025, to January 29, 2028 (the Extension). Pursuant to the terms of the Plan, the Company submitted the Extension to its shareholders for ratification and the shareholders subsequently approved the ratification on October 28, 2025. By extending the Plan, the Board of Directors is seeking to protect the Company’s ability to use its NOLs and other tax attributes to offset potential future income tax liabilities. The Company’s ability to use such NOLs and other tax attributes would be substantially limited if the Company experiences an "ownership change,” as defined in Section 382. The Plan is intended to make it more difficult for the Company to undergo an ownership change by deterring any person from acquiring 4.95% or more of the outstanding shares of stock without the approval of the Board of Directors. However, there can be no assurance that the Plan will prevent an "ownership change” from occurring for purposes of Section 382, and events outside of our control and which may not be subject to the Plan, such as sales of our stock by certain existing shareholders, may result in such an "ownership change” in the future. If we have undergone or, in the future undergo, an ownership change that applies to our Tax Assets, our ability to use these Tax Assets could be substantially limited after the ownership change, and this limit could have a substantial adverse effect on our cash flows and financial position including but not limited to a change in the valuation allowance on our deferred tax assets. Although the Plan is not principally intended to prevent a takeover, it may have an anti-takeover effect because an “acquiring person” thereunder may be diluted upon the occurrence of a triggering event. Accordingly, the Plan may complicate or discourage a merger, tender offer, accumulations of substantial blocks of our stock, or assumption of control by a substantial holder of our securities. The Plan, however, should not interfere with any merger or other business combination approved by the Board of Directors. Because the Board of Directors may consent to certain transactions, the Plan gives our Board of Directors significant discretion to act in the best interests of shareholders. Litigation and other legal or regulatory proceedings or claims and the outcome of such litigation, proceedings, or claims, including possible fines and penalties, could have an adverse effect on our business and any loss contingency accruals may be inadequate to cover actual losses. From time to time in the ordinary course of our business operations, we are subject to litigation, including potential class action and single- plaintiff litigation, arbitration and other legal or regulatory proceedings or claims. Litigation to defend ourselves against claims by third parties, or to enforce any rights that we may have against third parties, may be necessary, which could require significant time commitments from our management team and result in substantial costs and diversion of our resources, which may cause an adverse effect on our business, financial condition and revenues. We establish accruals for potential liabilities arising from litigation and other legal or regulatory proceedings or claims when potential liabilities are probable, and the amount of the loss can be reasonably estimated based on currently available information. We may still incur legal costs for a matter even if we have not accrued a liability. In addition, actual losses may be higher than the amount accrued for a certain matter or in the aggregate. Any resolution of litigation or other legal or regulatory proceedings as well as claims could adversely affect our business, financial condition, or revenues. 24
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Table of Contents Item 1B. Unresolved Staff Comments None. Item 1C. Cybersecurity We have defined policies and procedures for cybersecurity incident detection, containment, response, and remediation and have adopted physical, technological, and administrative cybersecurity and data privacy controls. The Company established a cybersecurity incident response plan, which includes classification of cybersecurity incidents, to whom to escalate an incident, and when to escalate a cybersecurity incident, including direct communication to the Director of Information Security, Vice President of IT, our President and our Board of Directors. The Audit Committee receives periodic reports on the Company's cybersecurity measures, protections, response plans, etc. The Company regularly conducts risk assessments and tracks remediation to completion. Critical systems are periodically audited against industry standards. Key elements of our cybersecurity risk management program include, but are not limited to, the following: • Risk assessments designed to help identify material cybersecurity risks to our critical systems, information, products, services, and our broader enterprise IT environment;• A security team principally responsible for managing (1) our cybersecurity risk assessment processes, (2) our security controls, and (3) our response to cybersecurity incidents; • The use of external service providers, where appropriate, to assess, test or otherwise assist with aspects of our security processes; • Cybersecurity awareness training of our employees; • A cybersecurity incident response plan that includes procedures for responding to cybersecurity incidents; and • A third-party risk management process for service providers based on our assessment of their criticality to our operations and respective risk profile. Our Director of Information Security directs, coordinates, plans, and organizes information security activities throughout the Company, including leading the development of our cybersecurity risk management strategy. Our Director of Information Security has more than 35 years of relevant IT experience, including 20 years directly managing information security, holds professional certifications including ISC(2)’s Certified Information Systems Security Professional (CISSP—issued 2006) and ISACA’s Certified Information Security Manager (CISM—issued 2006), and has ongoing involvement in various professional organizations, including serving for the last 16 years on the governing body of the Gartner/Evanta Minneapolis CISO summit, and is a member of the Minnesota chapter of ISACA. We have not historically been materially impacted by risks from cybersecurity threats and as of the date of this Annual Report on Form 10- K, we are not aware of any cybersecurity risks that are reasonably likely to materially affect our business. Item 2. Properties The Company leases its corporate headquarters in Minneapolis, Minnesota, and the lease expires in 2030. We lease four floors at our corporate headquarters. We currently sublease three of the four floors through sublease arrangements which expire in 2030. The Company leases the premises in which approximately 79% of its franchisees operate and has entered into corresponding sublease arrangements with these franchisees. Generally, these leases have a one to ten-year initial term and one or more five to ten-year renewal options. All lease costs are passed through to the franchisees. Remaining franchisees who do not enter into sublease arrangements with the Company negotiate and enter into leases on their own behalf. As leases renew, the Company intends for franchisees to sign the non- Walmart leases directly so it will no longer be the primary tenant. As a result of having assigned its interest in obligations under certain real estate leases directly to franchisees, the Company is secondarily liable on such lease agreements as guarantor. The Company operates all its company-owned salons under lease agreements with original terms of one to five years, generally with the ability to renew at the Company's option, for one or more additional three to five-year periods. None of the Company's salon leases are individually material to the operations of the Company, and the Company expects that it will be able to renew its leases on satisfactory terms as they expire or identify and secure other suitable locations. See Note 6 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K. 25
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Table of Contents Item 3. Legal Proceedings The Company is a defendant in various lawsuits and claims arising out of the normal course of business. Like certain other franchisors, the Company has been faced with allegations of franchise regulation and agreement violations. Additionally, because the Company may be the tenant under a master lease for a location subleased to a franchisee, the Company faces allegations of non-payment of rent and associated charges. Further, similar to other large retail employers, the Company has been faced with allegations of purported patent, consumer, and wage and hour violations, some of which involve class actions. Litigation is inherently unpredictable, and the outcome of these matters cannot presently be determined. Although the actions are being vigorously defended, the Company could, in the future, incur judgments or enter into settlements of claims that could have a material adverse effect on its results of operations in any particular period. See Note 9 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K. Item 4. Mine Safety Disclosures Not applicable. 26
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Table of Contents PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities Market Information The Company's common stock is listed and traded on the Nasdaq Global Market under the symbol "RGS." Holders As of August 25, 2026, the Company had approximately 266 shareholders of record. The closing stock price was $26.75 per share on August 25, 2026. Dividends In accordance with its capital allocation policy, the Company does not pay cash dividends. Share Repurchase Program In May 2000, the Board approved a stock repurchase program with no stated expiration date. Since that time and through June 30, 2026, the Board has authorized $650.0 million to be expended for the repurchase of the Company's stock under this program. All repurchased shares become authorized but unissued shares of the Company. The timing and amounts of any repurchases depend on many factors, including the market price of the common stock and overall market conditions. During fiscal year 2026, the Company did not repurchase shares. As of June 30, 2026, 1.5 million shares have been cumulatively repurchased for $595.4 million, and $54.6 million remained authorized for repurchase. The Company does not anticipate repurchasing shares of common stock for the foreseeable future. Item 6. Reserved Not applicable. 27
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Table of Contents Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is designed to provide a reader of our financial statements with a narrative from the perspective of our management on our financial condition, results of operations, liquidity, and certain other factors that may affect our future results. BUSINESS DESCRIPTION Regis Corporation (the Company) franchises, owns, and operates beauty salons. As of June 30, 2026, the Company franchised or owned 3,712 salons in North America and the United Kingdom. Each of the Company's salon concepts generally offer similar salon products and hair services. As of June 30, 2026, we had 1,611 corporate employees worldwide. See discussion within Part I, Item 1 of this Form 10-K. In December 2024, the Company acquired the Alline Salon Group (the Alline Acquisition), its largest franchisee, consisting of 314 salons,of which 261 salons remain in operation as of June 30, 2026. The transaction provides Regis with a turn-key operating infrastructure andgets the Company closer to salon operations alongside franchisees, and the salon portfolio provides a testing ground for brand andoperational initiatives. On June 30, 2022, the Company sold its Opensalon Pro (OSP) software-as-a-service solution to Soham Inc. (Zenoti). In fiscal year 2024, the Company received $2.0 million of proceeds that had been previously held back for general indemnity provisions, and in fiscal year2025, the Company received $8.5 million in additional proceeds related to salons migrating to Zenoti. The Zenoti migration wassuccessfully completed in fiscal year 2025 and therefore the Company did not receive any additional proceeds from Zenoti in fiscal year2026. As a result of the sale, the Company classified the OSP business as discontinued operations in the financial statements as discussed in Note 3 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K. ® 28
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Table of Contents RESULTS OF OPERATIONS The Company reports its operations in two operating segments: franchise salons and company-owned salons. System-wide results Our results are impacted by our system-wide sales, which include sales by all points of distribution, whether owned by our franchisees or the Company. While we do not record sales by franchisees as revenue, and such sales are not included in our Consolidated Financial Statements, we believe that this operating measure is important in obtaining an understanding of our financial performance. We believe system-wide sales information aids in understanding how we derive royalty revenue and in evaluating performance. In fiscal year 2026, a net 199 and 30 franchise and company-owned salons, respectively, have closed. The following table summarizes system-wide revenue and system-wide same-store sales by concept: Fiscal Years 2026 2025 2024 (Dollars in millions) System-wide revenue $ 1,066.3 $ 1,104.9 $ 1,179.5 Supercuts 3.0 % 1.3 % 1.6 % SmartStyle (4.5) (6.1) (3.5) Portfolio Brands 0.1 (0.6) 2.0 Total system-wide same-store sales (1) 0.9 % (0.6)% 0.7 % ____________________________________________________________________________ (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. 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. 29
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Table of Contents Consolidated Results of Operations The following table sets forth, for the periods indicated, certain information derived from our Consolidated Statements of Operations. The percentages are computed as a percent of total consolidated revenues, except as otherwise indicated, and the increase (decrease) is measured in basis points. Variances calculated on amounts shown in millions may result in rounding differences. Fiscal Years 2026 2025 2024 2026 2025 2024 2026 2025 (Dollars in millions) % of Total Revenues (1) (Decrease) Increase Royalties $ 54.6 $ 58.2 $ 64.1 24.3 % 27.7 % 31.6 % (340) (390) Fees 7.2 9.7 10.2 3.2 4.6 5.0 (140) (40) Product sales to franchisees — — 0.5 — — 0.2 — (20) Advertising fund contributions 21.4 21.9 25.7 9.5 10.4 12.7 (90) (230) Franchise rental income 62.9 76.6 95.3 28.0 36.5 46.9 (850) (1,040) Company-owned salon revenue 78.3 43.7 7.3 34.9 20.8 3.6 1,410 1,720 Cost of product sales to franchisees — — 0.4 N/A N/A 80.0 N/A N/A General and administrative 42.0 46.8 45.4 18.7 22.3 22.4 (360) (10) Rent 13.5 10.5 5.5 6.0 5.0 2.7 100 230 Advertising fund expense 21.4 21.9 25.7 9.5 10.4 12.7 (90) (230) Franchise rent expense 62.9 76.6 95.3 28.0 36.5 46.9 (850) (1,040) Company-owned salon expense 56.0 31.1 5.1 25.0 14.8 2.5 1,020 1,230 Depreciation and amortization 4.1 3.0 3.9 1.8 1.4 1.9 40 (50) Long-lived asset impairment 0.1 0.4 0.8 — 0.2 0.4 (20) (20) Operating income (2) 24.4 19.9 20.9 10.9 9.5 10.3 140 (80) Interest expense (20.7) (20.3) (25.4) (9.2) (9.7) (12.5) 50 280 Gain on extinguishment of long-termdebt, net — — 94.6 — — 46.6 N/A N/A Gain on earn-out liability 1.0 — — 0.4 — — 40 — Other, net 1.1 1.8 (0.2) 0.5 0.9 (0.1) (40) 100 Income tax benefit (expense) (3) 1.1 115.5 (0.9) (18.3) (7,519.3) 1.0 N/A N/A Income from discontinued operations — 6.5 2.0 — 3.1 1.0 (310) 210 Net income (2) 6.9 123.5 91.1 3.1 58.8 44.9 (5,570) 1,390 ____________________________________________________________________________ (1) Cost of product sales to franchisees is computed as a percent of product sales to franchisees. (2) Total is a recalculation; line items calculated individually may not sum to total due to rounding. (3) Computed as a percent of income from continuing operations before income taxes. The income taxes basis point change is noted as not applicable (N/A) as the discussion below is related to the effective income tax rate. 30
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Table of Contents Fiscal Year Ended June 30, 2026, Compared with Fiscal Year Ended June 30, 2025 Royalties During fiscal year 2026, royalties decreased $3.6 million, or 6.2%, mainly due to a decrease in franchise salon count primarily caused by franchise salon closures and the conversion of franchise salons acquired in the Alline Acquisition to company-owned in December 2024. Fees During fiscal year 2026, fees decreased $2.5 million, or 25.8%, primarily due to salon closures. Additionally, the prior year results include the recognition of terminated franchise fees related to the acquisition of Alline. Advertising Fund Contributions Advertising fund contributions decreased $0.5 million, or 2.3%, during fiscal year 2026, primarily due to lower salon count. Franchise Rental Income During fiscal year 2026, franchise rental income decreased $13.7 million, or 17.9%, primarily due to the decrease in franchise salon count and franchisees signing their own leases. Company-Owned Salon Revenue During fiscal year 2026, company-owned salon revenue increased $34.6 million, or 79.2%, due to additional revenues generated by the increase in salon count as a result of the Alline Acquisition in the second quarter of fiscal year 2025. General and Administrative The decrease of $4.8 million, or 10.3%, in general and administrative expense during fiscal year 2026 was primarily due to lower corporate compensation and franchise brokerage expenses, as well as lower education event costs, partially offset by higher company- owned general and administrative expense. Rent The increase of $3.0 million, or 28.6%, in rent expense during fiscal year 2026 was primarily due to rent expense associated with the salons acquired in the Alline Acquisition. Advertising Fund Expense Advertising fund expense decreased $0.5 million, or 2.3%, during fiscal year 2026, primarily due to lower salon count. Franchise Rent Expense During fiscal year 2026, franchise rent expense decreased $13.7 million, or 17.9%, primarily due to the decrease in franchise salon count and franchisees signing their own leases. Company-Owned Salon Expense Company-owned salon expense increased $24.9 million, or 80.1%, during fiscal year 2026, primarily due to the full year of expenses generated by the salons acquired in the Alline Acquisition. Depreciation and Amortization The increase of $1.1 million, or 36.7%, in depreciation and amortization during fiscal year 2026 was primarily due to depreciation expense associated with the assets acquired in the Alline Acquisition. Long-Lived Asset Impairment The Company recorded long-lived asset impairment charges of $0.1 million and $0.4 million in fiscal years 2026 and 2025, respectively. The decrease in long-lived asset impairment charges in fiscal year 2026 is due to recognizing impairment on a single salon while the fiscal year 2025 impairment related to subleasing excess corporate office space to unrelated third parties. Interest Expense The $0.4 million increase in interest expense during fiscal year 2026 was primarily due to higher debt outstanding, offset partially by declining interest rates. 31
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Table of Contents Gain on Earn-Out Liability The $1.0 million gain on earn-out liability in fiscal year 2026 is due to a change in the estimated fair value expected to be paid in conjunction with the Alline Acquisition. Other, Net Other, net declined $0.7 million in fiscal year 2026, primarily due to foreign currency adjustments. Income Tax Benefit During fiscal year 2026, the Company recognized an income tax benefit of $1.1 million with a corresponding effective tax rate of (18.3)%. During fiscal year 2025, the Company recognized an income tax benefit of $115.5 million, with a corresponding effective tax rate of (7,519.3)%, primarily due to the partial release of the valuation allowance on our deferred tax assets. See Note 10 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K. Income from Discontinued Operations, net of tax The Company recorded no income from discontinued operations, net of tax, in fiscal year 2026 compared to $6.5 million in fiscal year 2025, related to contingent proceeds earned based on the number of salons that migrated to the Zenoti platform, partially offset by a non- cash income tax expense allocated to discontinued operations. See Note 3 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K. 32
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Table of Contents Results of Operations by Segment Based on our internal management structure, we report two segments: franchise salons and company-owned salons. See Note 15 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K. Significant results of continuing operations are discussed below with respect to each of these segments. Franchise Salons Fiscal Years 2026 2025 2024 2026 2025 (Dollars in millions) (Decrease) Increase (1) Royalties $ 54.6 $ 58.2 $ 64.1 $ (3.6) $ (5.9) Fees 7.2 9.7 10.2 (2.5) (0.5) Product sales to franchisees — — 0.4 — (0.4) Advertising fund contributions 21.4 21.9 25.7 (0.5) (3.8) Franchise rental income 62.9 76.6 95.3 (13.7) (18.7) Total franchise revenue (1) $ 146.2 $ 166.4 $ 195.7 $ (20.2) $ (29.3) Franchise same-store sales (2) 0.6 % (0.6)% 0.6 % Total franchise salons 3,448 3,647 4,391 (199) (744) _______________________________________________________________________________ (1) Total is a recalculation; line items calculated individually may not sum to total due to rounding. (2) Franchise same-store sales are calculated as the total change in sales for franchise locations that were open on a specific day of the week during the current period and the corresponding prior period. Year-to-date franchise same-store sales are the sum of the franchise same-store sales computed on a daily basis. Franchise salons that do not report daily sales are excluded from same-store sales. Franchise same-store sales are calculated in local currencies to remove foreign currency fluctuations from the calculation. Fiscal Year Ended June 30, 2026, Compared with Fiscal Year Ended June 30, 2025 Franchise Revenue Franchise revenue decreased $20.2 million during fiscal year 2026. The decrease in franchise revenue was primarily due to the decrease in franchise rental income, royalties, and fees as a result of lower salon count, primarily driven by the Alline portfolio moving to the Company-owned segment mid-fiscal year 2025. During fiscal year 2026, franchisees constructed (net of relocations) and closed 8 and 207 franchise salons, respectively. 33
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Table of Contents Company-Owned Salons Fiscal Years 2026 2025 2024 2026 2025 (Dollars in millions) Increase (Decrease) (1) Total revenue $ 78.3 $ 43.7 $ 7.3 $ 34.6 $ 36.4 Company-owned same-store sales (2) 4.0 % (2.8)% 3.5 % Total company-owned salons 264 294 17 (30) 277 _______________________________________________________________________________ (1) Total is a recalculation; line items calculated individually may not sum to total due to rounding. (2) Company-owned same-store sales are calculated as the total change in sales for company-owned locations that were open on a specific day of the week during the current period and the corresponding prior period. Year-to-date company-owned same-store sales are the sum of the company-owned same-store sales computed on a daily basis. Fiscal Year Ended June 30, 2026, Compared with Fiscal Year Ended June 30, 2025 Company-Owned Salon Revenue Company-owned salon revenue improved $34.6 million in fiscal year 2026, primarily due to a full year of income generated by the salons acquired in the Alline Acquisition. Recent Accounting Pronouncements Recent accounting pronouncements are discussed in Note 1 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K. 34
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Table of Contents LIQUIDITY AND CAPITAL RESOURCES In June 2024, the Company entered into a new credit agreement with TCW Asset Management Company, LLC, and MidCap Financial Trust, which matures in June 2029 (the 2024 Credit Agreement). In addition to a $10.0 million minimum liquidity covenant, the agreement includes typical provisions and financial covenants, including leverage and fixed-charge coverage ratio covenants. The agreement was amended in December 2024 in connection with the Alline Acquisition (the December 2024 Amendment). See Note 8 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K. Sources of Liquidity Funds generated by operating activities, available cash and cash equivalents and our borrowing agreements are our most significant sources of liquidity. The Company believes it has sufficient liquidity, cash on hand, and borrowing capacity to meet its obligations in the next twelve months and until maturity of the credit agreement in June 2029. As of June 30, 2026, cash and cash equivalents were $26.0 million, with $25.3 million and $0.7 million within the United States and Canada, respectively. As of June 30, 2026, the Company's borrowing arrangements include a $116.1 million term loan, $11.1 million of paid-in-kind interest, and a $25.0 million revolving credit facility with a $10.0 million minimum liquidity covenant that expires in June 2029. As of June 30, 2026, the unused available credit under the revolving credit facility was $19.0 million and total liquidity per the agreement was $35.0 million. See additional discussion under Financing Arrangements and Note 8 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K. Uses of Cash The Company closely manages its liquidity and capital resources. The Company's liquidity requirements depend on key variables, including the performance of the business, the level of investment needed to support its business strategies, credit facilities and borrowing arrangements, and working capital management. The Company has a disciplined approach to capital allocation, which focuses on ensuring we can meet our interest obligations and investing in key priorities to support the Company's strategic plan as discussed within Part I, Item 1. Additional information about the Company's current use of cash is described under "Sources of Liquidity." Cash Requirements The Company's most significant contractual cash requirements as of June 30, 2026, were lease commitments and interest payments. See Notes 6 and 8 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K for further detail. 35
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Table of Contents Cash Flows Cash Flows from Operating Activities During fiscal year 2026, cash provided by operating activities was $13.1 million. Cash provided by operations decreased slightly year over year due primarily to the use of restricted ad fund cash in fiscal year 2026, versus a build of restricted ad fund cash in the prior fiscal year, offset partially by our lower cost structure. Cash Flows from Investing Activities During fiscal year 2026, cash used in investing activities of $2.0 million was primarily related to capital expenditures. Cash Flows from Financing Activities During fiscal year 2026, cash used in financing activities of $2.3 million was primarily related to repayments of long-term debt, partially offset by proceeds from issuance of common stock related to options and warrants exercised. 36
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Table of Contents Financing Arrangements Financing activities are discussed in Note 8 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K. Derivative activities are discussed in Part II, Item 7A, "Quantitative and Qualitative Disclosures about Market Risk." The Company's financing arrangements consist of the following: Twelve months ended June 30, 2026 2025 2026 2025 (Cash interest rate %) (Dollars in thousands) Term loan (1) 8.42% 9.14% $ 116,135 $ 118,875 Paid-in-kind interest 11,101 5,376 Deferred financing fees (2) (9,392) (12,174) Term loan, net 117,844 112,077 Revolving credit facility (1) 8.42% 9.14% 1,030 1,030 Fair value of warrants issued to lenders (1,736) (2,314) Total debt, net $ 117,138 $ 110,793 Less: Long-term debt, current portion (3,000) (1,100) Long-term debt, net $ 114,138 $ 109,693 _______________________________________________________________________________ (1) The term loan and revolving credit facility mature on June 24, 2029. (2) Deferred financing fees, inclusive of $4.3 million of Original Issue Discount fees, are amortized on a straight-line basis over the term of the related agreement. The Company's 2024 Credit Agreement, as amended, includes a $120.0 million term loan and a $25.0 million revolving credit facility, with a $10.0 million minimum liquidity covenant, is secured by the Company's assets, and expires June 24, 2029. The 2024 Credit Agreement, as amended, includes typical provisions and financial covenants, including leverage and fixed-charge coverage ratio covenants. As of June 30, 2026, the unused available credit under the revolving credit facility was $19.0 million, outstanding letters of credit were $6.0 million, and total liquidity per the agreement was $35.0 million. The interest rate on the 2024 Credit Agreement is based on the secured overnight financing rate (SOFR) plus margin. The margin is subject to change based on the Company's total leverage ratio, remeasured annually on a predetermined date set by the lender. When the Company's total leverage ratio is greater than or equal to 3.75 to 1.00, the margin applicable to the term loan and revolving credit facility is 9.00%. If the Company's leverage ratio is less than 3.75 to 1.00, the margin rate is 8.50%. In either scenario, the Company has elected the option to pay 4.5% of the margin as paid-in-kind (PIK) interest (added to the principal balance and thereafter accruing interest), and the remainder is paid currently in cash. The SOFR base rate applicable to the debt has a floor of 2.50% per annum. The interest rate applicable to any letter of credit is 5.25% and paid currently in cash. See additional discussion in Note 8 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K. Our debt to capitalization ratio, calculated as the principal amount of debt, including paid-in-kind interest accrued, as a percentage of the principal amount of debt and shareholders' equity at fiscal year end, was as follows: As of June 30, Debt toCapitalization (1) 2026 39.8 % 2025 40.3 % 2024 67.0 % _______________________________________________________________________________ (1) Excludes the long-term lease liability as that liability is offset by the right-of-use (ROU) asset. 37
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Table of Contents Contractual Obligations and Commercial Commitments On-Balance Sheet Obligations Our debt obligations are primarily composed of our 2024 Credit Agreement, as amended, at June 30, 2026. Non-current deferred benefits of $5.7 million include $1.5 million related to a non-qualified deferred salary plan, a salary deferral program of $1.4 million and a bonus deferral plan of $2.8 million related to established contractual payment obligations under retirement and severance agreements for a small number of employees. See Note 4 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K. Operating leases primarily represent long-term obligations for the rental of salons, including leases for company-owned locations, as well as salon franchisee lease obligations, which are reimbursed to the Company by franchisees. Regarding franchisee subleases, we generally retain the right to the related salon assets, net of any outstanding obligations, in the event of a default by a franchise owner. Additionally, as a result of having assigned its interest in obligations under certain real estate leases directly to franchisees, the Company is secondarily liable on such lease agreements as guarantor. Declines in system-wide revenue in certain brands over the past few years have increased the risk of default by franchisees, which may be material. The Company has unfunded deferred compensation contracts covering certain management and executive personnel. We cannot predict the timing or amount of future payments related to these contracts. See Note 11 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K. As of June 30, 2026, we have liabilities for uncertain tax positions. We are not able to reasonably estimate the amount by which the liabilities will increase or decrease over time; however, at this time, we do not expect a significant payment related to these obligations within the next fiscal year. See Note 10 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K. Off-Balance Sheet Arrangements Under the 2024 Credit Agreement, as amended, the margin applicable to any letter of credit is 5.25% and is paid currently in cash. See Note 8 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K. We are a party to a variety of contractual agreements that we may be obligated to indemnify the other party for certain matters, which indemnities may be secured by operation of law or otherwise, in the ordinary course of business. These contracts primarily relate to our commercial contracts, operating leases and other real estate contracts, financial agreements, agreements to provide services and agreements to indemnify officers, directors, and employees in the performance of their work. While our aggregate indemnification obligation could result in a material liability, we are not aware of any current matter that we expect will result in a material liability. We do not have any unconditional purchase obligations or significant other commercial commitments such as standby repurchase obligations. We do not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured finance or special purpose entities, which would have been established for the purpose of facilitating off-balance sheet financial arrangements or other contractually narrow or limited purposes at June 30, 2026. As such, we are not materially exposed to any financing, liquidity, market, or credit risk that could arise if we had engaged in such relationships. 38
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Table of Contents Dividends The Company has not declared a quarterly dividend payment since December 2013. Share Repurchase Program In May 2000, the Board approved a stock repurchase program with no stated expiration date. Since that time and through June 30, 2026, the Board has authorized $650.0 million to be expended for the repurchase of the Company's stock under this program. All repurchased shares become authorized but unissued shares of the Company. The timing and amounts of any repurchases depend on many factors, including the market price of the common stock and overall market conditions. During fiscal year 2026, the Company did not repurchase shares. As of June 30, 2026, 1.5 million shares have been cumulatively repurchased for $595.4 million, and $54.6 million remained authorized for repurchase. The Company does not anticipate repurchasing shares of common stock for the foreseeable future. 39
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Table of Contents CRITICAL ACCOUNTING POLICIES AND ESTIMATES The Consolidated Financial Statements are prepared in conformity with accounting principles generally accepted in the United States. In preparing the Consolidated Financial Statements, we are required to make various judgments, estimates and assumptions that could have a significant impact on the results reported in the Consolidated Financial Statements. We base these estimates on historical experience and other assumptions believed to be reasonable under the circumstances. Estimates are considered to be critical if they meet both of the following criteria: (1) the estimate requires assumptions about material matters that are uncertain at the time the accounting estimates are made, and (2) other materially different estimates could have been reasonably made or material changes in the estimates are reasonably likely to occur from period to period. Changes in these estimates could have a material effect on our Consolidated Financial Statements. Our significant accounting policies can be found in Note 1 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K. We believe the following accounting policies are most critical to aid in fully understanding and evaluating our reported financial condition and results of operations. Goodwill As of June 30, 2026, and 2025, the franchise reporting unit had $172.4 million and $173.1 million of goodwill, respectively, and the company-owned segment had goodwill of $10.3 million in each period related to the Alline Acquisition. See Note 5 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K. The Company assesses goodwill impairment on an annual basis as of April 30, and between annual assessments if an event occurs, or circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Goodwill impairment assessments are performed at the reporting unit level, which is the same as the Company's operating segments. The goodwill assessment involves a one-step comparison of the reporting unit's fair value to its carrying value, including goodwill (Step 1). If the reporting unit's fair value exceeds its carrying value, no further procedures are required. However, if the reporting unit's fair value is less than the carrying value, an impairment charge is recorded for the difference between the fair value and carrying value of the reporting unit. In applying the goodwill impairment assessment, the Company may assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying value (Step 0). Qualitative factors may include, but are not limited to, economic, market and industry conditions, cost factors, and overall financial performance of the reporting unit. If after assessing these qualitative factors, the Company determines it is more likely than not that the carrying value is less than the fair value, then performing Step 1 of the goodwill impairment assessment is unnecessary. The carrying value of each reporting unit is based on the assets and liabilities associated with the operations of the reporting unit, including allocation of shared or corporate balances among reporting units. Allocations are generally based on the number of salons in each reporting unit as a percent of total salons or expenses of the reporting unit as a percentage of total company expenses. The Company calculates estimated fair values of the reporting units based on discounted cash flows utilizing estimates in annual revenue, fixed expense rates, allocated corporate overhead, franchise and company-owned salon counts, and long-term growth rates for determining terminal value. Where available and as appropriate, comparative market multiples are used in conjunction with the results of the discounted cash flows. The Company engages third-party valuation consultants to assist in evaluating the Company's estimated fair value calculations. See Note 1 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K. 40
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Table of Contents Long-Lived Assets, Excluding Goodwill The Company follows the guidance in ASC 360, Property, Plant, and Equipment and applies the guidance to property, plant, and equipment as well as right of use (ROU) assets. The Company has identified its asset groups at the individual salon level as this represents the lowest level that identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. Poor salon performance in fiscal years 2026, 2025, and 2024, resulted in ASC 360-10-35-21 triggering events. As a result, management assessed underperforming salon asset groups, which included the related ROU assets, for impairment in accordance with ASC 360. The first step in the impairment test under ASC 360 is to determine whether the long-lived assets are recoverable, which is determined by comparing the net carrying value of the salon asset group to the undiscounted net cash flows to be generated from the use and eventual disposition of that asset group. Estimating cash flows for purposes of the recoverability test is subjective and requires significant judgment. Estimated future cash flows used for the purposes of the recoverability test were based upon historical cash flows for the salons, adjusted for expected changes in future market conditions and other factors. The period of time used to determine the estimates of the future cash flows for the recoverability test was based on the remaining useful life of the primary asset of the group, which was the ROU asset in all cases. The second step of the long-lived asset impairment test requires that the fair value of the asset group be estimated when determining the amount of any impairment loss. For the salon asset groups that failed the recoverability test, an impairment loss was measured as the amount by which the carrying amount of the asset group exceeds its fair value. The Company applied the fair value guidance within ASC 820-10 to determine the fair value of the asset group from the perspective of a market-participant considering, among other things, appropriate discount rates, multiple valuation techniques, the most advantageous market, and assumptions about the highest and best use of the asset group. To determine the fair value of the salon asset groups, the Company utilized market-participant assumptions rather than the Company's own assumptions about how it intends to use the asset group. The significant judgments and assumptions utilized to determine the fair value of the salon asset groups include the market rent of comparable properties and a discount rate. The fair value of the salon long-lived asset group is estimated using market participant methods based on the best information available. The fair value of the right of use asset is estimated by determining what a market participant would pay over the life of the primary asset in the group, discounted back to June 30, 2026. During fiscal years 2026, 2025, and 2024, the Company recognized long-lived asset impairment charges of $0.1 million, $0.4 million, and $0.8 million, respectively, on the Consolidated Statements of Operations in Part II, Item 8 of this Form 10-K. The impairment loss for each salon asset group that was recognized was allocated among the long-lived assets of the group on a pro-rata basis using their relative carrying amounts. Additionally, the impairment losses did not reduce the carrying amount of an individual asset below its fair value, including the assets included in the salon asset groups. Assessing the long-lived assets for impairment requires management to make assumptions and to apply judgment which can be affected by economic conditions and other factors that can be difficult to predict. The Company does not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions it uses to calculate impairment losses for its long-lived assets, including its ROU assets. If actual results are not consistent with the estimates and assumptions used in the calculations, the Company may be exposed to future impairment losses that could be material. 41
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Table of Contents Income Taxes Deferred income tax assets and liabilities are recognized for the expected future tax consequences of events that have been included in the Consolidated Financial Statements or income tax returns. Deferred income tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using currently enacted tax rates in effect for the years in which the differences are expected to reverse. We recognize deferred tax assets to the extent that we believe these assets are more likely than not to be realized. The Company evaluates all evidence, including recent financial performance, the existence of cumulative year losses and our forecast of future taxable income, to assess the need for a valuation allowance against our deferred tax assets. While the determination of whether to record a valuation allowance is not fully governed by a specific objective test, accounting guidance places significant weight on recent financial performance. The Company has a valuation allowance on its deferred tax assets amounting to $57.7 million and $60.5 million at June 30, 2026, and2025, respectively. The significant change to the valuation allowance that occurred during fiscal year 2026 is as follows: • As of June 30, 2026, we determined that an additional $3.2 million of our U.S. tax credit carryforwards will be realizable.Therefore, we released the associated valuation allowance and recorded a corresponding tax benefit. Significant changes to the valuation allowance that occurred during fiscal year 2025 are as follows: • As of June 30, 2025, we determined that it is more likely than not that the majority of our U.S. federal and state deferred taxassets will be realizable. As such, we released $110.2 million of our valuation allowance associated with the U.S. federal and statedeferred tax assets. A valuation allowance will remain on certain U.S. tax credit carryforwards and state deferred tax assets inwhich we have concluded that it is more likely than not that they will expire unused. • We have determined that it is more likely than not that a portion of our Canadian deferred tax assets will be realizable as of June30, 2025, and released $6.1 million of our Canadian valuation allowance. The Company reserves for unrecognized tax benefits, interest, and penalties related to anticipated tax audit positions in the U.S. and other tax jurisdictions based on an estimate of whether additional taxes will be due. If payment of these amounts ultimately proves to be unnecessary, the reversal of these liabilities would result in tax benefits being recognized in the period in which it is determined that the liabilities are no longer necessary. If the estimate of unrecognized tax benefits, interest, and penalties proves to be less than the ultimate assessment, additional expenses would result. Inherent in the measurement of deferred balances are certain judgments and interpretations of tax laws and published guidance with respect to the Company's operations. Income tax expense is primarily the current tax payable for the period and the change during the period in certain deferred tax assets and liabilities. See Note 10 to the Consolidated Financial Statements in Part II, Item 8, of this Form 10-K. 42
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Table of Contents Item 7A. Quantitative and Qualitative Disclosures about Market Risk The primary market risk exposure of the Company relates to changes in interest rates in connection with its credit agreement, which bears interest at variable rates based on SOFR plus an applicable borrowing margin. Additionally, the Company is exposed to foreign currency translation risk related to changes in the Canadian dollar, and to a lesser extent, the British pound. The Company has established policies and procedures that govern the management of these exposures through the use of derivative financial instrument contracts. By policy, the Company does not enter into such contracts for the purpose of speculation. The following details the Company's policies and use of financial instruments. Interest Rate Risk: The Company's interest payments are based on the SOFR, such that a hypothetical 100 basis point increase or decrease in the SOFR will have an impact on our annual cash flows of approximately $1.3 million annually. As of June 30, 2026, the Company had outstanding variable rate debt of $128.3 million, and the Company did not have any outstanding interest rate swaps. SOFR variability does not impact our letters of credit, which are charged at a fixed rate of 5.25%. Foreign Currency Exchange Risk: Over 90% of the Company's operations are transacted in U.S. dollars. However, because a portion of the Company's operations consist of activities outside of the U.S., the Company has transactions in other currencies, primarily the Canadian dollar, and to a lesser extent, the British pound. In preparing the Consolidated Financial Statements, the Company is required to translate the financial statements of its foreign subsidiaries from the currency in which they keep their accounting records, generally the local currency, into U.S. dollars. Different exchange rates from period to period impact the amounts of reported income and the amount of foreign currency translation recorded in accumulated other comprehensive income (AOCI). As part of its risk management strategy, the Company frequently evaluates its foreign currency exchange risk by monitoring market data and external factors that may influence exchange rate fluctuations. As a result, the Company may engage in transactions involving various derivative instruments to hedge assets, liabilities and purchases denominated in foreign currencies. As of June 30, 2026, the Company did not have any derivative instruments to manage its foreign currency risk. During fiscal years 2026, 2025, and 2024, the Company recorded foreign currency losses of $0.6 million, $0.1 million, and $0.5 million in income from continuing operations, respectively, in the Consolidated Financial Statements. 43
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Table of Contents Item 8. Financial Statements and Supplementary Data Index to Consolidated Financial Statements: Report of Independent Registered Public Accounting Firm (PCAOB ID: 248) 45 Consolidated Balance Sheets as of June 30, 2026, and 2025 46 Consolidated Statements of Operations for each of the three years in the period ended June 30, 2026 47 Consolidated Statements of Comprehensive Income for each of the three years in the period ended June 30, 2026 48 Consolidated Statements of Shareholders' Equity (Deficit) for each of the three years in the period ended June 30, 2026 49 Consolidated Statements of Cash Flows for each of the three years in the period ended June 30, 2026 50 Notes to Consolidated Financial Statements 51 44
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Table of Contents Report of Independent Registered Public Accounting Firm Board of Directors and Shareholders Regis Corporation Opinion on the financial statements We have audited the accompanying consolidated balance sheets of Regis Corporation (a Minnesota corporation) and subsidiaries (the “Company”) as of June 30, 2026 and 2025, the related consolidated statements of operations, comprehensive income, shareholders’ equity(deficit), and cash flows for each of the three years in the period ended June 30, 2026, and the related notes (collectively referred to as the“consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, thefinancial position of the Company as of June 30, 2026 and 2025, and the results of its operations and its cash flows for each of the three years in the period ended June 30, 2026, in conformity with accounting principles generally accepted in the United States of America. Basis for opinion These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinionon the Company’s consolidated financial statements based on our audits. We are a public accounting firm registered with the PublicCompany Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company inaccordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit toobtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. TheCompany is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing anopinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error orfraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significantestimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our auditsprovide a reasonable basis for our opinion. Critical audit matters Critical audit matters are matters arising from the current period audit of the financial statements that were communicated or required to becommunicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective, or complex judgments. We determined there are no critical audit matters. /s/ GRANT THORNTON LLP We have served as the Company’s auditor since 2020. Minneapolis, Minnesota September 1, 2026 45
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Table of Contents REGIS CORPORATION CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share data) June 30, 2026 2025 ASSETS Current assets: Cash and cash equivalents $ 26,025 $ 16,959 Receivables, net 9,267 9,473 Inventory 2,482 2,798 Other current assets 19,621 21,254 Total current assets 57,395 50,484 Property and equipment, net 9,285 10,085 Goodwill (Note 5) 182,710 183,436 Other intangibles, net 4,727 5,830 Right of use asset (Note 6) 175,684 229,861 Deferred tax asset (Note 10) 103,402 102,504 Other assets 14,019 16,757 Total assets $ 547,222 $ 598,957 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 19,556 $ 20,837 Accrued expenses 15,536 19,066 Long-term debt, current portion (Note 8) 3,000 1,100 Short-term lease liability (Note 6) 53,824 60,685 Total current liabilities 91,916 101,688 Long-term debt, net (Note 8) 114,138 109,693 Long-term lease liability (Note 6) 130,465 179,280 Other non-current liabilities 16,891 22,680 Total liabilities 353,410 413,341 Commitments and contingencies (Note 9) Shareholders' equity: Common stock, $0.05 par value; issued and outstanding, 2,498,778 and 2,435,981 commonshares as of June 30, 2026, and 2025, respectively 125 122 Additional paid-in capital 77,162 75,243 Accumulated other comprehensive income 7,617 8,286 Retained earnings 108,908 101,965 Total shareholders' equity 193,812 185,616 Total liabilities and shareholders' equity $ 547,222 $ 598,957 ______________________________________________________________________________ The accompanying notes are an integral part of the Consolidated Financial Statements. 46
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Table of Contents REGIS CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars and shares in thousands, except per share data) Fiscal Years 2026 2025 2024 Revenues: Royalties $ 54,581 $ 58,163 $ 64,098 Fees 7,247 9,717 10,189 Product sales to franchisees — — 451 Advertising fund contributions 21,392 21,924 25,663 Franchise rental income (Note 6) 62,943 76,599 95,258 Company-owned salon revenue 78,322 43,731 7,323 Total revenue 224,485 210,134 202,982 Operating expenses: Cost of product sales to franchisees — — 436 General and administrative 42,045 46,764 45,387 Rent (Note 6) 13,452 10,487 5,525 Advertising fund expense 21,392 21,924 25,663 Franchise rent expense (Note 6) 62,943 76,599 95,258 Company-owned salon expense (Note 1) 56,041 31,103 5,080 Depreciation and amortization 4,112 2,966 3,945 Long-lived asset impairment (Note 1) 52 352 798 Total operating expenses 200,037 190,195 182,092 Operating income 24,448 19,939 20,890 Other (expense) income: Interest expense (20,673) (20,252) (25,393) Gain on extinguishment of long-term debt, net — — 94,611 Gain on earn-out liability 1,000 — — Other, net 1,096 1,849 (172) Income from operations before income taxes 5,871 1,536 89,936 Income tax benefit (expense) 1,072 115,496 (869) Income from continuing operations 6,943 117,032 89,067 Income from discontinued operations, net of income taxes (Note 3) — 6,504 1,993 Net income $ 6,943 $ 123,536 $ 91,060 Net income per share: Basic: Income from continuing operations $ 2.76 $ 49.51 $ 38.08 Income from discontinued operations — 2.75 0.85 Net income per share, basic $ 2.76 $ 52.26 $ 38.93 Diluted: Income from continuing operations $ 2.41 $ 43.67 $ 37.50 Income from discontinued operations — 2.43 0.84 Net income per share, diluted $ 2.41 $ 46.10 $ 38.34 Weighted average common and common equivalent shares outstanding: Basic 2,520 2,364 2,339 Diluted 2,879 2,680 2,375
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_____________________________________________________________________________ The accompanying notes are an integral part of the Consolidated Financial Statements. 47
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Table of Contents REGIS CORPORATION CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Dollars in thousands) Fiscal Years 2026 2025 2024 Net income $ 6,943 $ 123,536 $ 91,060 Other comprehensive loss, net of tax: Net current period foreign currency translation adjustments (556) (177) (321) Recognition of deferred compensation (113) (121) (118) Other comprehensive loss (669) (298) (439) Comprehensive income $ 6,274 $ 123,238 $ 90,621 _______________________________________________________________________________ The accompanying notes are an integral part of the Consolidated Financial Statements. 48
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Table of Contents REGIS CORPORATION CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) (Dollars in thousands, except share data) Common Stock AdditionalPaid-InCapital AccumulatedOtherComprehensiveIncome (Loss) RetainedEarnings(Deficit) TotalShares Amount Balance, June 30, 2023 2,277,828 $ 114 $ 66,764 $ 9,023 $ (112,631) $ (36,730) Net income — — — — 91,060 91,060 Foreign currency translation (Note 1) — — — (321) — (321) Stock-based compensation — — 1,622 — — 1,622 Recognition of deferred compensation(Note 11) — — — (118) — (118) Net restricted stock activity 2,120 — (18) — — (18) Stock warrants issued in connection withdebt (2) — — 1,292 — — 1,292 Balance, June 30, 2024 2,279,948 $ 114 $ 69,660 $ 8,584 $ (21,571) $ 56,787 Net income — — — — 123,536 123,536 Foreign currency translation (Note 1) — — — (177) — (177) Stock-based compensation — — 1,413 — — 1,413 Recognition of deferred compensation(Note 11) — — — (121) — (121) Net restricted stock activity 15,481 1 (75) — — (74) Common stock issued in connection withAlline Acquisition (1) 140,552 7 2,993 — — 3,000 Stock warrants issued in connection withdebt (2) — — 1,252 — — 1,252 Balance, June 30, 2025 2,435,981 $ 122 $ 75,243 $ 8,286 $ 101,965 $ 185,616 Net income — — — — 6,943 6,943 Foreign currency translation (Note 1) — — — (556) — (556) Exercise of stock options 24,564 1 606 — — 607 Stock-based compensation — — 1,175 — — 1,175 Recognition of deferred compensation(Note 11) — — — (113) — (113) Net restricted stock activity 25,666 1 (160) — — (159) Common stock issued in connection withwarrant exercise 12,567 1 298 — — 299 Balance, June 30, 2026 2,498,778 $ 125 $ 77,162 $ 7,617 $ 108,908 $ 193,812 _______________________________________________________________________________ (1) This activity represents the common stock issued in connection with the Alline Acquisition on December 19, 2024. See Note 16 for additional details. (2) This activity represents the stock warrants issued in connection with the new credit facility agreement and amendment. Stock warrant value shown net of allocated financing costs. See Note 8 and Note 14 for additional details. The accompanying notes are an integral part of the Consolidated Financial Statements. 49
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Table of Contents REGIS CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) Fiscal Years 2026 2025 2024 Cash flows from operating activities: Net income $ 6,943 $ 123,536 $ 91,060 Adjustments to reconcile net income to net cash provided by (used in) operatingactivities: Gain from sale of OSP (Note 3) — (8,396) (2,000) Depreciation and amortization (Note 1) 3,861 2,876 3,403 Long-lived asset impairment 52 352 798 Deferred income taxes (1,051) (113,891) 519 Non-cash interest 5,726 5,299 3,418 Gain on extinguishment of long-term debt, net — — (94,611) Gain on earn-out liability (1,000) — — Stock-based compensation 849 1,940 1,558 Amortization of debt discount and financing costs 3,622 3,418 2,987 Other non-cash items affecting earnings 309 (202) 432 Changes in operating assets and liabilities (1): Receivables 181 (37) 848 Inventories 316 871 851 Income tax receivable 36 (137) 1,230 Other current assets 1,322 402 (466) Other assets 2,706 4,402 5,829 Ad fund (434) 8,363 (2,435) Accounts payable (850) (504) 831 Accrued expenses (3,073) (5,289) (4,812) Net lease liabilities (1,534) (2,073) (1,942) Other non-current liabilities (4,878) (7,186) (9,538) Net cash provided by (used in) operating activities: 13,103 13,744 (2,040) Cash flows from investing activities: Capital expenditures (1,973) (1,295) (376) Asset acquisitions, net of cash acquired and certain obligations assumed — (18,621) — Proceeds from sale of OSP, net of fees — 8,463 2,000 Net cash (used in) provided by investing activities: (1,973) (11,453) 1,624 Cash flows from financing activities: Borrowings on revolving credit facility — 4,326 14,238 Repayments of revolving credit facility — (13,534) — Repayments of long-term debt (2,740) (1,125) (96,499) Debt refinancing fees (262) (1,003) (14,360) Proceeds from issuance of common stock in connection with warrant exercise299 — — Proceeds from issuance of common stock for options exercised 607 — — Proceeds from issuance of long-term debt — 15,000 105,000 Taxes paid for shares withheld (161) (75) (16) Net cash (used in) provided by financing activities: (2,257) 3,589 8,363 Effect of exchange rate changes on cash and cash equivalents (83) 13 (31) Increase in cash, cash equivalents, and restricted cash 8,790 5,893 7,916 Cash, cash equivalents, and restricted cash: Beginning of year 35,205 29,312 21,396 End of year $ 43,995 $ 35,205 $ 29,312 _______________________________________________________________________________ (1) Changes in operating assets and liabilities exclude assets and liabilities sold or acquired. The accompanying notes are an integral part of the Consolidated Financial Statements. 50
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 1. BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Description: Regis Corporation franchises and owns hair care salons, primarily in North America. The business is evaluated in two segments, franchise salons and company-owned salons. Franchise salons in operation decreased from 3,647 at June 30, 2025, to 3,448 at June 30, 2026. Company-owned salons in operation decreased from 294 at June 30, 2025, to 264 at June 30, 2026. See Note 15 to the Consolidated Financial Statements for information regarding our Segments. Salons are located in leased space in strip center locations, malls, or Walmart stores. Alline Salon Group Acquisition: On December 19, 2024, the Company completed the transaction to acquire 100 percent ownership of Super C Group, LLC, doing business as Alline Salon Group (Alline). Under the terms of the agreement, the Company paid cash consideration of approximately $19 million, stock consideration valued at $3.0 million, and additional amounts for working capital adjustments and transaction-related fees. Refer to Note 16 to the Consolidated Financial Statements for additional information regarding the acquisition. The Company’s financial results for the fiscal years ended June 30, 2026, and 2025, include the results of Alline subsequent to the December 19, 2024, acquisition date. Acquisition-Related Costs: Acquisition-related costs of $1.4 million were incurred during the fiscal year ended June 30, 2025, and primarily represent third-party consulting and legal expenses associated with the acquisition of Alline completed on December 19, 2024. These costs were recorded within general and administrative expenses in the Consolidated Statements of Operations for the year ended June 30, 2025. Consolidation: The Consolidated Financial Statements include the accounts of the Company and its subsidiaries after the elimination of intercompany accounts and transactions. All material subsidiaries are wholly owned. The Company consolidates variable interest entities where it has determined it is the primary beneficiary of those entities' operations. Variable Interest Entities: The Company has interests in certain privately held entities through arrangements that do not involve voting interests. Such entities, known as variable interest entities (VIE), are required to be consolidated by its primary beneficiary. The Company evaluates whether it is the primary beneficiary for each VIE using a qualitative assessment that considers the VIE's purpose and design, the involvement of each of the interest holders and the risks and benefits of the VIE. As of June 30, 2026, the Company has no VIE's where the Company is the primary beneficiary. Guarantees: The Company, as a guarantor, is required to recognize, at inception of the guarantee, a liability for the fair value of the obligation undertaken in issuing the guarantee. See Note 6 to the Consolidated Financial Statements for further discussion of such obligations guaranteed. 51
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Use of Estimates: The preparation of the Consolidated Financial Statements in conformity with accounting principles generally accepted in the United States of America (GAAP) requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results and outcomes may differ from management's estimates and assumptions. Cash, Cash Equivalents, and Restricted Cash: Cash equivalents consist of investments in short-term, highly liquid securities having original maturities of three months or less, which are made as a part of the Company's cash management activity. The carrying values of these assets approximate their fair market values. The Company primarily utilizes a cash management system with a series of separate accounts consisting of lockbox accounts for receiving cash, concentration accounts that funds are moved to, and several "zero balance" disbursement accounts for funding of payroll and accounts payable. As a result of the Company's cash management system, checks issued, but not presented to the banks for payment, may create negative book cash balances. There were no checks outstanding in excess of related book cash balances at June 30, 2026, and 2025. Restricted cash within other current assets primarily relates to consolidated advertising cooperatives funds, which can only be used to settle obligations of the respective cooperatives and contractual obligations to collateralize the Company's self-insurance programs. The self-insurance restricted cash arrangement can be canceled by the Company at any time if substituted with letters of credit. The table below reconciles the cash and cash equivalents balances and restricted cash balances, recorded within other current assets on the Consolidated Balance Sheets to the amount of cash, cash equivalents, and restricted cash reported on the Consolidated Statements of Cash Flows: June 30, 2026 2025 (Dollars in thousands) Cash and cash equivalents $ 26,025 $ 16,959 Restricted cash, included in other current assets 17,970 18,246 Total cash, cash equivalents, and restricted cash $ 43,995 $ 35,205 52
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Receivables and Allowance for Credit Losses: The receivable balance on the Company's Consolidated Balance Sheets primarily includes accounts and notes receivable from franchisees and credit card receivables. The balance is presented net of an allowance for credit losses (i.e., doubtful accounts), related to receivables from the Company's franchisees. The Company monitors the financial condition of its franchisees and records provisions for estimated losses on receivables when it believes franchisees are unable to make their required payments based on factors such as delinquencies and aging trends. The allowance for credit losses is the Company's best estimate of the amount of probable credit losses related to existing accounts and notes receivables. As of June 30, 2026, and 2025, the allowance for credit losses was $3.8 million and $5.0 million, respectively. See Note 2 to the Consolidated Financial Statements. Inventories: Inventories of finished goods consist principally of hair care products for retail product sales. A portion of inventories are also used for salon services consisting of hair color, hair care products including shampoo and conditioner and hair care treatments including permanents, neutralizers, and relaxers. Inventories are stated at the lower of cost or net realizable value, with cost determined on a weighted average cost basis. Property and Equipment: Property and equipment are carried at cost, less accumulated depreciation and amortization. Depreciation of property and equipment is computed using the straight-line method over their estimated useful asset lives (i.e., 10 years or lease life for improvements and three to 10 years or lease life for equipment, furniture, and software). Depreciation expense was $3.1 million, $2.6 million, and $3.7 million in fiscal years 2026, 2025, and 2024, respectively. Depreciation expense for fiscal years 2026, 2025, and 2024 includes $0.3 million, $0.1 million, and $0.5 million of asset retirement obligations, respectively, which are cash expenses. The Company capitalizes both internal and external costs of developing or obtaining computer software for internal use. Costs incurred to develop internal-use software during the application development stage are capitalized, while data conversion, training and maintenance costs associated with internal-use software are expensed as incurred. Estimated useful lives range from three to seven years. Expenditures for maintenance and repairs and minor renewals and betterments, which do not improve or extend the life of the respective assets, are expensed. All other expenditures for renewals and betterments are capitalized. The assets and related depreciation and amortization accounts are adjusted for property retirements and disposals with the resulting gain or loss included in operating income. Fully depreciated or amortized assets remain in the accounts until retired from service. 53
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Right of Use Asset, Lease Liabilities, and Rent Expense: At contract inception, the Company determines whether a contract is, or contains, a lease by determining whether it conveys the right to control the use of the identified asset for a period of time. If the contract provides the Company the right to substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset, the Company considers it to be, or contain, a lease. The Company leases its company-owned salons and corporate facilities under operating leases. The original terms of the salon leases range from one to ten years with many leases renewable for an additional five to ten-year term or terms at the option of the Company. In addition to the obligation to make fixed rental payments for the use of the salons, the Company also has variable lease payments that are based on sales levels. For most leases, the Company is required to pay real estate taxes and other occupancy expenses. The Company leases salon premises in which the majority of its franchisees operate and has entered into corresponding sublease arrangements with franchisees. All lease-related costs are passed through to franchisees. The Company records the rental payments due from franchisees as franchise rental income and the corresponding amounts owed to landlords as franchise rent expense on the Consolidated Statements of Operations. All the Company's leases are operating leases. The lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date, including one lease term option when the lease is expected to be renewed. The right of use (ROU) asset is initially and subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, less accrued lease payments and unamortized lease incentives received, if any. Expense for lease payments is recognized on a straight-line basis over the lease term, including the lease renewal option when the lease is expected to be renewed. Generally, the non- lease components, such as real estate taxes and other occupancy expenses, are separate from rent expense within the lease and are not included in the measurement of the lease liability because these charges are variable. The discount rate used to determine the present value of the lease payments is the Company's estimated collateralized incremental borrowing rate, based on the yield curve for the respective lease terms, as the interest rate implicit in the lease cannot generally be determined. The Company uses the portfolio approach in applying the discount rate based on the original lease term. Certain company-owned salon leases provide for contingent rents that are determined as a percentage of revenues in excess of specified levels. The Company records a contingent rent liability in accrued expenses on the Consolidated Balance Sheets, along with the corresponding rent expense in the Consolidated Statements of Operations, when specified levels have been achieved or when management determines that achieving the specified levels during the fiscal year is probable. 54
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Salon Long-Lived Asset and Right of Use Asset Impairment Assessments: A lessee's ROU asset is subject to the same asset impairment guidance in ASC 360, Property, Plant, and Equipment, applied to other elements of property, plant, and equipment. The Company has identified its asset groups at the individual salon level as this represents the lowest level that identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. Management assesses underperforming salon asset groups, which include the related ROU assets, for impairment in accordance with ASC 360. The Company assesses impairment of long-lived salon assets and ROU assets at the individual salon level, as this is the lowest level for which identifiable cash flows are largely independent of other groups of assets and liabilities, when events or changes in circumstances indicate the carrying value of the assets or the asset grouping may not be recoverable. Factors considered in deciding when to perform an impairment review include significant under-performance of an individual salon in relation to expectations, significant economic or geographic trends, and significant changes or planned changes in our use of the assets. The first step in the impairment test under ASC 360 is to determine whether the long-lived assets are recoverable, which is determined by comparing the net carrying value of the salon asset group to the undiscounted net cash flows to be generated from the use and eventual disposition of that asset group. Estimating cash flows for purposes of the recoverability test is subjective and requires significant judgment. Estimated future cash flows used for the purposes of the recoverability test were based upon historical cash flows for the salons, adjusted for expected changes in future market conditions and other factors. The period of time used to determine the estimates of the future cash flows for the recoverability test was based on the remaining useful life of the primary asset of the group, which was the ROU asset in all cases. The second step of the long-lived asset impairment test requires that the fair value of the asset group be estimated when determining the amount of any impairment loss. For the salon asset groups that failed the recoverability test, an impairment loss was measured as the amount by which the carrying amount of the asset group exceeds its fair value. The Company applied the fair value guidance within ASC 820-10 to determine the fair value of the asset group from the perspective of a market-participant considering, among other things, appropriate discount rates, multiple valuation techniques, the most advantageous market, and assumptions about the highest and best use of the asset group. To determine the fair value of the salon asset groups, the Company utilized market-participant assumptions rather than the Company's own assumptions about how it intends to use the asset group. The significant judgments and assumptions utilized to determine the fair value of the salon asset groups include the market rent of comparable properties and a discount rate. The fair value of the salon long-lived asset group is estimated using market participant methods based on the best information available. The fair value of the ROU asset is estimated by determining what a market participant would pay over the life of the primary asset in the group, discounted back to June 30, 2026. During fiscal years 2026, 2025, and 2024, the Company recognized long-lived asset impairment charges of $0.1 million, $0.4 million, and $0.8 million, respectively, on the Consolidated Statements of Operations. The impairment loss for each salon asset group that was recognized was allocated among the long-lived assets of the group on a pro-rata basis using their relative carrying amounts. Additionally, the impairment losses did not reduce the carrying amount of an individual asset below its fair value, including the assets included in the salon asset groups. Assessing the long-lived assets for impairment requires management to make assumptions and to apply judgment which can be affected by economic conditions and other factors that can be difficult to predict. The Company does not believe there is a reasonable likelihood that there will be a material change in the estimates or assumptions it uses to calculate impairment losses for its long-lived assets, including its ROU assets. If actual results are not consistent with the estimates and assumptions used in the calculations, the Company may be exposed to future impairment losses that could be material. See Note 6 to the Consolidated Financial Statements. 55
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Goodwill: As of June 30, 2026, and 2025, the franchise reporting unit had goodwill of $172.4 million and $173.1 million, respectively, and the company-owned reporting unit had $10.3 million of goodwill as of June 30, 2026, and 2025. See Note 5 to the Consolidated Financial Statements for changes to the goodwill balance. The Company assesses goodwill impairment on an annual basis as of April 30, and between annual assessments if an event occurs, or circumstances change, that would more likely than not reduce the fair value of a reporting unit below its carrying amount. Goodwill impairment assessments are performed at the reporting unit level, which is the same as the Company's operating segments. The goodwill assessment involves a one-step comparison of the reporting unit's fair value to its carrying value, including goodwill (Step 1). If the reporting unit's fair value exceeds its carrying value, no further procedures are required. However, if the reporting unit's fair value is less than the carrying value, an impairment charge is recorded for the difference between the fair value and carrying value of the reporting unit. In applying the goodwill impairment assessment, the Company may assess qualitative factors to determine whether it is more likely than not that the fair value of the reporting unit was less than its carrying value (Step 0). Qualitative factors could include, but are not limited to, economic, market and industry conditions, cost factors, and overall financial performance of the reporting unit. If after assessing these qualitative factors, the Company determined it is more likely than not that the carrying value is less than the fair value, then performing Step 1 of the goodwill impairment assessment is unnecessary. The carrying value of each reporting unit is based on the assets and liabilities associated with the operations of the reporting unit, including allocation of shared or corporate balances among reporting units. Allocations are generally based on the number of salons in each reporting unit as a percent of total salons or expenses of the reporting unit as a percent of total company expenses. The Company calculates estimated fair values of the reporting units based on discounted cash flows utilizing estimates in annual revenue, fixed expense rates, allocated corporate overhead, franchise and company-owned salon counts, and long-term growth rates for determining terminal value. Where available and as appropriate, comparative market multiples are used in conjunction with the results of the discounted cash flows. The Company engages third-party valuation consultants to assist in evaluating the Company's estimated fair value calculations. The following is a description of the goodwill impairment assessments for each of the fiscal years: Fiscal 2026 and Fiscal 2025 The Company engaged a third-party valuation specialist to perform its annual impairment assessment as of April 30 of each respective fiscal year. For the goodwill impairment analysis, management utilized a combination of both a discounted cash flows approach and market approach to evaluate the reporting units. The discounted cash flows model reflects management's assumptions regarding revenue growth rates, economic and market trends, cost structure, and other expectations about the anticipated short-term and long-term operating results. The Company compared the carrying value of the reporting units, including goodwill, to their estimated fair values. The results of this assessment indicated that the estimated fair values of the Company's franchise and company-owned reporting units exceeded the carrying values, resulting in no goodwill impairment charge in either year. Fiscal 2024 The Company determined a triggering event occurred related to a decrease in the Company's stock price, resulting in a quantitative impairment test performed over goodwill. Accordingly, the Company engaged a third-party valuation specialist to perform an impairment analysis on the franchise reporting unit of the business as of November 30, 2023. For the goodwill impairment analysis, management utilized a combination of both a discounted cash flows approach and a market approach to evaluate the franchise reporting unit. The discounted cash flows model reflects management's assumptions regarding discount rates, revenue growth rates, economic and market trends, cost structure, and other expectations about the anticipated short-term and long-term operating results. These assumptions are inherently uncertain. An increase in the discount rate or a decrease in revenue growth rate or market trends would have a negative impact on the fair value of the reporting unit which could be material. As a result of the impairment testing, the franchise reporting unit was determined to have a fair value in excess of its carrying value, resulting in no goodwill impairment charge. 56
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The Company performed its annual impairment assessment as of April 30. For the goodwill impairment analysis, management utilized a combination of both a discounted cash flows approach and market approach to evaluate the franchise reporting unit. The discounted cash flows model reflects management's assumptions regarding revenue growth rates, economic and market trends, cost structure, and other expectations about the anticipated short-term and long-term operating results. The results of this assessment indicated that the estimated fair value of the Company's franchise reporting unit exceeded the carrying value. 57
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Self-Insurance Accruals: The Company uses a combination of third-party insurance and self-insurance for a number of risks including workers' compensation, health insurance, employment practice liability, and general liability claims. The liability represents the Company's estimate of the undiscounted ultimate cost of uninsured claims incurred as of the Consolidated Balance Sheets date. The Company estimates self-insurance liabilities using a number of factors, primarily based on independent third-party actuarially determined amounts, historical claims experience, estimates of incurred but not reported claims, demographic factors, and severity factors. Although the Company does not expect the amounts ultimately paid to differ significantly from the estimates, self-insurance accruals could be affected if future claims experience differs significantly from historical trends and actuarial assumptions. For fiscal years 2026, 2025, and 2024, the Company recorded decreases in expense for changes in estimates related to prior year open policy periods of $0.8 million, $0.8 million, and $0.9 million, respectively. The Company updates loss projections bi-annually and adjusts its liability to reflect updated projections. The updated loss projections consider new claims and developments associated with existing claims for each open policy period. As certain claims can take years to settle, the Company has multiple policy periods open at any point in time. As of June 30, 2026, the Company had $1.0 million and $2.8 million recorded in current liabilities and non-current liabilities, respectively, related to the Company's workers' compensation and general liability self-insurance accruals. As of June 30, 2025, the Company had $1.2 million and $3.5 million recorded in current liabilities and non-current liabilities, respectively, related to the Company's workers' compensation and general liability self-insurance accruals. Revenue Recognition and Deferred Revenue: Franchise revenues primarily include royalties, fees, and advertising fund fees. Royalties and advertising fund revenues represent sales- based royalties that are recognized as revenue in the period in which the sales occur. The Company defers franchise fees until the salon is open and then recognizes the revenue over the term of the franchise agreement. See Note 2 to the Consolidated Financial Statements. Company-owned salon revenues are recognized at the time when the services are provided, or the guest receives and pays for merchandise. Classification of Revenue and Expenses: Below is a summary of the primary financial statement captions. Royalties - Sales-based royalty received from franchisees. Fees - Fees received from franchisees and third parties, including franchise fees and fees received from the third-party distributor. Product sales to franchisees - Wholesale product sales to franchisees. The Company changed its franchise product sales business in fiscal year 2022 from a wholesale distribution model to a third-party distribution model. Advertising fund contributions - Sales-based advertising fund contributions received from franchisees. Franchise rental income - Rental income earned as a result of the Company signing leases on behalf of franchisees and entering into sublease arrangements with the franchisees. Company-owned salon revenue - Service revenue and revenue derived from sales of product in company-owned salons. Cost of product sales to franchisees - Direct cost of inventory and freight and other costs of sales. Advertising fund expense - Expenses related to sales-based advertising fund contributions received from franchisees. Franchise rental expense - Expense incurred as a result of the Company signing leases on behalf of franchisees and entering into sublease arrangements with the franchisees. Company-owned salon expense - Cost of service and product sold to guests in our company-owned salons and other salon-related costs. Excluded from this caption are general and administrative expense, rent and depreciation and amortization related to company-owned salons. 58
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Consideration Received from Vendors: The Company receives consideration for a variety of vendor-sponsored programs. These programs primarily include volume rebates and promotion and advertising reimbursements. With respect to volume rebates, the Company estimates the amount of rebate it will receive and accrues it as a reduction to the cost of inventory over the period in which the rebate is earned based upon historical purchasing patterns and the terms of the volume rebate program. A quarterly analysis is performed in order to ensure the estimated rebate accrued is reasonable and any necessary adjustments are recorded. Advertising and Advertising Funds: Advertising costs consist of the Company's corporate funded advertising costs, the Company's advertising fund contributions, and franchisee's advertising fund contributions. Corporate funded advertising costs are expensed as incurred. The Company has various franchising programs supporting specific franchise salon concepts. Most maintain advertising funds that provide comprehensive advertising and sales promotion support. All salons are required to participate in the advertising funds for the same salon concept. The Company administers the advertising funds in accordance with franchise operating and other agreements. Advertising fund contributions are expensed when the contribution is made. The Company's advertising costs included in the Consolidated Statements of Operations consist of the following: Fiscal Years 2026 2025 2024 (Dollars in thousands) Advertising fund contributions from franchisees $ 21,392 $ 21,924 $ 25,663 Advertising fund contributions from company-owned salons (1) 987 545 70 Corporate funded advertising costs (1) (2) 295 209 (28) Total advertising costs $ 22,674 $ 22,678 $ 25,705 _____________________________________________________________________________ (1) Included in company-owned salon expense in the Consolidated Statements of Operations. (2) Corporate funded advertising costs for fiscal year 2024 relates to a credit received. The Company records all advertising funds as assets and liabilities within the Company's Consolidated Balance Sheets. Approximately $16.5 million and $17.4 million representing the advertising funds' assets and liabilities, were recorded within total assets and total liabilities in the Company's Consolidated Balance Sheets as of June 30, 2026, and 2025, respectively. 59
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Stock-Based Employee Compensation Plans: The Company recognizes stock-based compensation expense based on the fair value of the awards at the grant date. Compensation expense is recognized on a straight-line basis over the requisite service period of the award (or to the date a participant becomes eligible for retirement, if earlier). The Company uses fair value methods that require the input of subjective assumptions, including the expected term, expected volatility, dividend yield, and risk-free interest rate. The Company estimates the likelihood and the rate of achievement for performance sensitive stock-based awards at the end of each reporting period. Changes in the estimated rate of achievement can have a significant effect on the recorded stock-based compensation expense as the effect of a change in the estimated achievement level is recognized in the period the change occurs. Interest Expense: During fiscal year 2024, the Company’s credit agreement had variable interest rates over the term of the debt. Accordingly, interest expense was recorded using a weighted average effective interest rate by estimating total future cash flows related to the debt to determine interest expense. The estimated cash flows included the margin rate, PIK interest, SOFR interest, and tenor fee applied to the forecasted outstanding debt balance in each future period. The significant assumptions used in the estimate were future SOFR rates and expected debt balance, as well as the length of time the debt would be outstanding. Management applied the weighted average rate to the debt balance to record interest expense for the period. Due to the interest rate increases over the debt term, the Company recorded more interest expense than interest paid in cash in fiscal year 2024. On June 24, 2024, Regis entered into a new credit agreement with a variable interest rate based on SOFR plus margin which was amendedon December 19, 2024. The margin applicable to the new term loan and revolving credit facility is 9.00%. If the Company's leverage ratio is less than 3.75 to 1.00, the margin rate is 8.50%. In either scenario, the Company has elected the option to pay 4.5% of the margin as paid-in-kind (PIK) interest (added to the principal balance and thereafter accruing interest), and the remainder is paid currently in cash.The interest rate applicable to any letter of credit is 5.25% and paid currently in cash. The SOFR base rate applicable to the debt has a floor of 2.50% per annum. See additional discussion in Note 8 to the Consolidated Financial Statements. Gain on Extinguishment of Long-Term Debt, Net In June 2024, the Company recorded a gain of $94.6 million related to the extinguishment of long-term debt. Additionally, the net gain includes the write off of paid-in-kind interest accruals and the write off of unamortized debt financing fees. 60
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Sales Taxes: Sales taxes are recorded on a net basis (rather than as both revenue and an expense) within the Company's Consolidated Statements of Operations. Income Taxes: Deferred income tax assets and liabilities are recognized for the expected future tax consequences of events that have been included in the Consolidated Financial Statements or income tax returns. Deferred income tax assets and liabilities are determined based on the differences between the financial statement and tax basis of assets and liabilities using currently enacted tax rates in effect for the years in which the differences are expected to reverse. We recognize deferred tax assets to the extent we believe these assets are more likely than not to be realized. The Company evaluates all evidence, including recent financial performance, the existence of cumulative year losses and our forecast of future taxable income, to assess the need for a valuation allowance against our deferred tax assets. While the determination of whether to record a valuation allowance is not fully governed by a specific objective test, accounting guidance places significant weight on recent financial performance. The Company has a valuation allowance on its deferred tax assets of $57.7 million and $60.5 million at June 30, 2026, and 2025, respectively. The significant change to the valuation allowance which occurred during fiscal year 2026 is as follows: • As of June 30, 2026, we determined that an additional $3.2 million of our U.S. tax credit carryforwards will be realizable.Therefore, we released the associated valuation allowance and recorded a corresponding tax benefit. Significant changes to the valuation allowance which occurred during fiscal year 2025 are as follows: • As of June 30, 2025, we determined that it is more likely than not that the majority of our U.S. federal and state deferred taxassets will be realizable. As such, we released $110.2 million of our valuation allowance associated with the U.S. federal and statedeferred tax assets. A valuation allowance remains on certain US tax credit carryforwards and state deferred tax assets in whichwe have concluded that it is more likely than not that they will expire unused. • As of June 30, 2025, we determined that it is more likely than not that a portion of our Canadian deferred tax assets will berealizable, and released $6.1 million of our Canadian valuation allowance. The Company reserves for unrecognized tax benefits, interest and penalties related to anticipated tax audit positions in the U.S. and other tax jurisdictions based on an estimate of whether additional taxes will be due. If payment of these amounts ultimately proves to be unnecessary, the reversal of these liabilities would result in tax benefits being recognized in the period in which it is determined that the liabilities are no longer necessary. If the estimate of unrecognized tax benefits, interest and penalties proves to be less than the ultimate assessment, additional expenses would result. Inherent in the measurement of deferred balances are certain judgments and interpretations of tax laws and published guidance with respect to the Company's operations. Income tax expense is primarily the current tax payable for the period and the change during the period in certain deferred tax assets and liabilities. See Note 10 to the Consolidated Financial Statements. 61
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Net Income Per Share: The Company's basic earnings per share is calculated as net income divided by weighted average common shares outstanding, excluding unvested outstanding stock awards. The Company's dilutive earnings per share is calculated as net income divided by weighted average common shares and common share equivalents outstanding, which includes shares issuable under the Company's stock option plan and long-term incentive plan and dilutive securities, including warrants issued in connection with the Company's credit agreement. Stock- based awards with exercise prices greater than the average market value of the Company's common stock are excluded from the computation of diluted earnings per share. Comprehensive Income: Components of comprehensive income include net income, foreign currency translation adjustments and recognition of deferred compensation, net of tax within shareholders' equity. Foreign Currency Translation: The Consolidated Balance Sheets, Consolidated Statements of Operations and Consolidated Statements of Cash Flows of the Company's international operations are measured using local currency as the functional currency. Assets and liabilities of these subsidiaries are translated at the exchange rates in effect at each Consolidated Balance Sheet date. Translation adjustments arising from the use of differing exchange rates from period to period are included in accumulated other comprehensive income within shareholders' equity. Consolidated Statements of Operations accounts are translated at the average rates of exchange prevailing during the year. During fiscal years 2026, 2025, and 2024, the Company recorded foreign currency losses of $0.6 million, $0.1 million, and $0.5 million in income from continuing operations, respectively, in the Consolidated Financial Statements. Accounting Standards Recently Adopted by the Company: On June 30, 2026, the Company adopted Accounting Standards Update (ASU) 2023-09, “Income Taxes (Topic 740): Improvements toIncome Tax Disclosures.” which includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The adoption of ASU 2023-09 did not have a material impact on the Company’s consolidated financial statements. See Note 10 to the Consolidated Financial Statements for required disclosures. On June 30, 2026, the Company also adopted ASU 2025-05, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets." The ASU includes amendments which provide entities with a practical expedient to assume that current conditions as of the balance sheet date will remain unchanged for the remaining life of the assets, effectively simplifying credit loss estimations for certain situations. The adoption of ASU 2025-05 did not have a material impact on its financial statements and disclosures. Recently Issued Accounting Standards Not Yet Adopted: In November 2024, the FASB issued ASU 2024-03, "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-04) Disaggregation of Income Statement of Expenses," which requires additional disclosure of the nature of expenses included in the income statement in response to requests from investors for more information about an entity’s expenses. The new standard requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The guidance is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. The requirements will be applied prospectively with the option for retrospective application. Early adoption is permitted. The Company is currently evaluating the impact this new guidance will have on its financial statements and disclosures. 62
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 2. REVENUE RECOGNITION: Revenue Recognition and Deferred Revenue: Revenue recognized over time Royalty and advertising fund revenues represent sales-based royalties that are recognized in the period in which the sales occur. Generally, royalty and advertising fund revenues are billed and collected monthly in arrears. Advertising fund revenues and expenditures, which must be spent on marketing and related activities per the franchise agreements, are recorded on a gross basis within the Consolidated Statements of Operations. The treatment increases both the gross amount of reported revenue and expense and generally has no impact on operating income and net income. Franchise fees are billed and received upon the signing of the franchise agreement. Recognition of these fees is deferred until the salon opens and typically recognized over 10 years, but is evaluated for immediate revenue recognition when a salon is acquired by Regis or closed. Franchise rental income is a result of the Company signing leases on behalf of franchisees and entering into sublease arrangements with the franchisees. The Company recognizes franchise rental income and expense when it is due to the landlord. Revenue recognized at point of sale Company-owned salon revenues are recognized at the time when the services are provided, or the guest receives and pays for the merchandise. Revenues from purchases made with gift cards are also recorded when the guest takes possession of the merchandise or services are provided. Gift cards issued by the Company are recorded as a liability (deferred revenue) upon sale and recognized as revenue upon redemption by the guest. Gift card breakage, the amount of gift cards which will not be redeemed, is recognized based on gift card balances with no activity over a 24-month basis. Product sales to franchisees are recorded at the time product is delivered to the franchisee. Information about receivables, broker fees, and deferred revenue subject to the revenue recognition guidance is as follows: June 30,2026 June 30,2025 June 30,2024 Balance Sheet Classification (Dollars in thousands) Receivables from contracts with customers, net $ 7,622 $ 7,378 $ 6,887 Receivable, net Broker fees 4,115 5,997 9,369 Other assets Deferred revenue: Current Gift card liability $ 324 $ 476 $ 366 Accrued expenses Deferred franchise fees open salons 3,285 3,832 4,738 Accrued expenses Total current deferred revenue $ 3,609 $ 4,308 $ 5,104 Non-current Deferred franchise fees unopened salons $ 688 $ 1,475 $ 1,783 Other non-current liabilities Deferred franchise fees open salons 6,213 9,394 14,972 Other non-current liabilities Total non-current deferred revenue $ 6,901 $ 10,869 $ 16,755 63
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Receivables relate primarily to payments due for royalties, advertising fees, rent, and sales of salon services and product paid by credit card. The receivables balance is presented net of an allowance for expected credit losses (i.e., doubtful accounts), related to receivables from franchisees. Management estimates the allowance based on the age of the receivable and creditworthiness of the franchisee. The following table is a rollforward of the allowance for credit losses for the periods indicated: Fiscal Years 2026 2025 (Dollars in thousands) Balance at beginning of period $ 5,015 $ 6,227 Provision for doubtful accounts (1) 892 3,040 Provision for franchisee rent (2) 713 790 Recoveries (1,361) (2,266) Other (61) 78 Write-offs (1,438) (2,854) Balance at end of period $ 3,760 $ 5,015 _____________________________________________________________________________ (1) The provision for doubtful accounts is recognized as general and administrative expense in the Consolidated Statements of Operations. (2) The provision for franchisee rent is recognized as rent in the Consolidated Statements of Operations. Broker fees are the costs associated with using external brokers to identify new franchisees. These fees are paid upon the signing of the franchise agreement, capitalized, and expensed over the term of the franchise agreement as general and administrative expense in the Consolidated Statements of Operations. The following table is a rollforward of the broker fee balance for the periods indicated: 64
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Fiscal Years 2026 2025 (Dollars in thousands) Balance at beginning of period $ 5,997 $ 9,369 Amortization (1,882) (2,313) Write-offs — (1,059) Balance at end of period $ 4,115 $ 5,997 Deferred revenue includes the gift card liability and deferred franchise fees for unopened salons and open salons. During the fiscal year ended June 30, 2026, the Company issued gift cards totaling $0.2 million that remained unredeemed as of period end, and recognized $0.2 million of revenue from the gift card liability outstanding at the beginning of the fiscal year. Deferred franchise fees related to open salons are generally recognized on a straight-line basis over the term of the franchise agreement but are evaluated for immediate revenue recognition when a salon is acquired by Regis or closed. Franchise fee revenue for fiscal years 2026, 2025, and 2024 was $4.0 million, $6.8 million, and $6.5 million, respectively. Estimated revenue expected to be recognized in the future related to deferred franchise fees for open salons as of June 30, 2026, is as follows (Dollars in thousands): 2027 $ 3,192 2028 2,529 2029 1,814 2030 822 2031 262 Thereafter 879 Total $ 9,498 65
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 3. DISCONTINUED OPERATIONS On June 30, 2022, the Company sold its OSP software-as-a-service solution to Soham Inc. As a result of the sale, the Company classified the OSP business as discontinued operations in the financial statements for all periods presented. In fiscal year 2024, the Company received $2.0 million of proceeds that had been previously held back for general indemnity provisions. In fiscal year 2025, the Company received additional proceeds of $8.5 million related to the number of salons that migrated to Soham's Zenoti product. Cash (used in) provided by investing activities for the years ended June 30, 2025, and 2024, includes $8.5 million, and $2.0 million respectively, of cash from discontinued operations. The Zenoti migration was successfully completed in fiscal year 2025, and therefore no income from discontinued operations was recorded in fiscal year 2026. The following summarizes the results of discontinued operations for the periods presented: Fiscal Years 2025 2024 (Dollars in thousands) Discontinued operations: Gain from sale of OSP $ 8,396 $ 1,993 Income from discontinued operations, before taxes 8,396 1,993 Income tax expense from discontinued operations (1) (1,892) — Income from discontinued operations, net of tax $ 6,504 $ 1,993 _______________________________________________________________________________ (1) Income taxes have been allocated to continuing and discontinued operations based on the methodology required by accounting for income taxes guidance. The tax expense in fiscal year 2025 is due to a GAAP and tax difference in timing of the gain recognition and does not reflect a current or cash tax liability. There was no tax impact in fiscal year 2024, due to a valuation allowance. The following summarizes the gain from the sale of OSP for the periods presented: Fiscal Years 2025 2024 (Dollars in thousands) Cash proceeds $ 8,463 $ 2,000 Other, net, including professional fees (67) (7) Gain from sale of OSP $ 8,396 $ 1,993 66
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 4. OTHER FINANCIAL STATEMENT DATA The following provides additional information concerning selected balance sheet accounts: June 30, 2026 2025 (Dollars in thousands) Other current assets: Prepaid assets $ 1,311 $ 1,362 Restricted cash 17,970 18,246 Other 340 1,646 Total other current assets $ 19,621 $ 21,254 Property and equipment: Buildings and improvements $ 2,374 $ 2,374 Equipment, furniture, and leasehold improvements 12,797 11,825 Internal use software 9,545 9,395 Total property and equipment 24,716 23,594 Less accumulated depreciation and amortization (15,431) (13,509) Total property and equipment, net $ 9,285 $ 10,085 Accrued expenses: Payroll and payroll related costs $ 4,017 $ 4,661 Insurance 1,219 1,313 Interest expense 29 36 Rent and related real estate costs 1,536 2,105 Gift card liability 324 476 Deferred revenue 3,285 3,832 Other 5,126 6,643 Total accrued expenses $ 15,536 $ 19,066 Other non-current liabilities: Insurance $ 2,842 $ 3,450 Deferred benefits 5,676 5,620 Deferred franchise fees 6,901 10,869 Other 1,472 2,741 Total other non-current liabilities $ 16,891 $ 22,680 67
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The following provides additional information concerning other intangibles, net: June 30, 2026 2025 WeightedAverageAmortizationPeriods (1) Cost (2) AccumulatedAmortization(2) Net WeightedAverageAmortizationPeriods (1) Cost (2) AccumulatedAmortization(2) Net (In years) (Dollars in thousands) (In years) (Dollars in thousands) Brand assets and tradenames 36 $ 4,970 $ (3,553) $ 1,417 36 $ 5,151 $ (3,529) $ 1,622 Franchise agreements 20 7,187 (6,826) 361 20 7,402 (6,910) 492 Lease intangibles (3) 8 1,380 (251) 1,129 8 1,380 (93) 1,287 Reacquired rights (3) 4 2,400 (600) 1,800 4 2,400 — 2,400 Other 20 276 (256) 20 20 280 (251) 29 Total 21 $ 16,213 $ (11,486) $ 4,727 21 $ 16,613 $ (10,783) $ 5,830 _______________________________________________________________________________ (1) All intangible assets have been assigned an estimated finite useful life and are amortized on a straight-line basis over the number of years that approximate their expected period of benefit (ranging from three to 40 years). (2) The change in the gross carrying value and accumulated amortization of other intangible assets is impacted by foreign currency. (3) Lease intangibles and reacquired rights consist of intangible assets acquired in the Alline Acquisition. See Note 16. Total amortization expense related to intangible assets during fiscal years 2026, 2025, and 2024 was approximately $1.0 million, $0.4 million, and $0.3 million, respectively. As of June 30, 2026, future estimated amortization expense related to intangible assets is estimated as follows (in thousands): 2027 $ 934 2028 942 2029 882 2030 292 2031 251 Thereafter 1,426 Total $ 4,727 The following provides supplemental disclosures of cash flow activity: Fiscal Years 2026 2025 2024 (Dollars in thousands) Cash paid (received) for: Interest $ 11,327 $ 11,539 $ 18,978 Taxes and penalties, net 251 463 (893) Non-cash investing activities: Stock issued in connection with Alline Acquisition — 3,000 — 68
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 5. GOODWILL The table below contains details related to the Company's goodwill: June 30, 2026 2025 GrossCarryingValue (1) AccumulatedImpairment Net GrossCarryingValue (1) AccumulatedImpairment Net (Dollars in thousands) Goodwill $ 312,974 $ (130,264) $ 182,710 $ 313,700 $ (130,264) $ 183,436 _______________________________________________________________________________ (1) The change in the gross carrying value of goodwill relates to foreign currency translation adjustments. The table below contains details related to the Company's goodwill: Fiscal Years 2026 2025 (Dollars in thousands) Balance at beginning of period $ 183,436 $ 173,146 Additions — 10,252 Translation rate adjustments (726) 38 Balance at end of period $ 182,710 $ 183,436 69
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 6. LEASES At contract inception, the Company determines whether a contract is, or contains, a lease by determining whether it conveys the right to control the use of the identified asset for a period of time. If the contract provides the Company the right to substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset, the Company considers it to be, or contain, a lease. The Company leases its company-owned salons and its corporate facilities under operating leases. The original terms range from one to ten years with many leases renewable for an additional five to ten-year term at the option of the Company. In addition to the obligation to make fixed rental payments for the use of the salons, the Company has variable lease payments that are based on sales levels. For most leases, the Company is required to pay real estate taxes and other occupancy expenses. Total rent includes the following: Fiscal Years 2026 2025 2024 (Dollars in thousands) Office and warehouse rent (1) $ 2,765 $ 2,855 $ 3,075 Lease termination expense (2) 557 386 101 Lease liability benefit (3) (219) (289) (326) Franchise salon rent 222 856 596 Company-owned salon rent (4) 10,127 6,679 2,079 Total $ 13,452 $ 10,487 $ 5,525 _______________________________________________________________________________ (1) Rental income associated with the sublease of the corporate office space is recorded in other income and was $1.3 million and $1.2 million for the years ended June 30, 2026, and 2025, respectively. (2) Costs incurred to exit salons before the lease end date in order to relieve the Company of future lease obligations. (3) Upon termination of previously impaired leases, the Company derecognizes the corresponding ROU assets and lease liabilities which results in a net gain. In addition, the Company recognizes a benefit from lease liabilities decreasing in excess of previously impaired ROU assets for ongoing leases that were previously impaired. (4) Includes rent related to the salons acquired in the December 2024 Alline Acquisition. See Note 16 to the Consolidated Financial Statements. The Company leases salon premises in which the majority of its franchisees operate and has entered into corresponding sublease arrangements with franchisees. All lease-related costs are passed through to the franchisees. The Company records the rental payments due from franchisees as franchise rental income and the corresponding amounts owed to landlords as franchise rent expense on the Consolidated Statements of Operations. In fiscal years 2026, 2025, and 2024, franchise rental income and franchise rent expense were $62.9 million, $76.6 million, and $95.3 million, respectively. These leases generally have lease terms of approximately five years. The Company expects to renew the SmartStyle master lease and certain leases for locations subleased to our franchisees upon expiration of those leases. Other leases are expected to be renewed by the franchisee upon expiration. All the Company's leases are operating leases. The lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date, including one lease term option when the lease is expected to be renewed. The ROU asset is initially and subsequently measured throughout the expected lease term at the carrying amount of the lease liability, plus initial direct costs, less accrued lease payments and unamortized lease incentives received, if any. Expense for lease payments is recognized on a straight-line basis over the lease term, including the lease renewal option when the lease is expected to be renewed. Generally, the non- lease components, such as real estate taxes and other occupancy expenses, are separate from rent expense within the lease and are not included in the measurement of the lease liability because these charges are variable. The discount rate used to determine the present value of the lease payments is the Company's estimated collateralized incremental borrowing rate, based on the yield curve for the respective lease terms, as the interest rate implicit in the lease cannot generally be determined. The Company uses the portfolio approach in applying the discount rate based on the original expected lease term. The weighted average remaining lease term was 4.35 years and 4.68 years, and the weighted average discount rate was 6.82% and 6.45% for all salon operating leases as of June 30, 2026, and 2025, respectively. 70
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) As of June 30, 2026, future operating lease commitments, including one renewal option for leases expected to be renewed, to be paid and received by the Company were as follows (Dollars in thousands): Fiscal Year Leases forFranchiseSalons Leases forCompany-Owned Salons CorporateLeases Total OperatingLeaseCommitments Sublease Incometo be Receivedfrom Franchisees Net RentCommitments 2027 $ 54,950 $ 6,990 $ 1,401 $ 63,341 $ (54,950) $ 8,391 2028 46,053 5,405 1,436 52,894 (46,053) 6,841 2029 35,608 3,622 1,472 40,702 (35,608) 5,094 2030 23,670 2,181 1,509 27,360 (23,670) 3,690 2031 11,392 960 — 12,352 (11,392) 960 Thereafter 15,816 231 — 16,047 (15,816) 231 Total future obligations $ 187,489 $ 19,389 $ 5,818 $ 212,696 $ (187,489) $ 25,207 Less amounts representing interest 25,901 2,051 455 28,407 Present value of lease liabilities $ 161,588 $ 17,338 $ 5,363 $ 184,289 Less current lease liabilities 46,600 6,018 1,206 53,824 Long-term lease liabilities $ 114,988 $ 11,320 $ 4,157 $ 130,465 Supplemental operating cash flow information and non-cash activity related to our operating leases are as follows: Fiscal Years 2026 2025 2024 (Dollars in thousands) Cash paid for amounts included in the measurement of lease liabilities (1) $ 44,946 $ 46,084 $ 48,747 Right of use assets obtained in exchange for new lease liabilities — — 235 _______________________________________________________________________________ (1) Cash paid for amounts included in the measurement of lease liabilities includes rent, common area maintenance, termination fees, settlements and legal fees, and commission payments. Other than leases with Walmart, franchisees pay landlords directly. As a result of having assigned our interest in obligations under certain real estate leases directly to our franchisees, the Company is secondarily liable on such lease agreements as guarantor. These leases have varying terms, the latest of which expires in 2035. As of June 30, 2026, the maximum potential amount of future payments the Company could be required to make under these guarantees is approximately $4.6 million, and no liability has been recognized in the Consolidated Balance Sheets for these guarantees, as the probability of default is considered remote. 71
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 7. FAIR VALUE MEASUREMENTS Fair value measurements are categorized into one of three levels based on the lowest level of significant input used: Level 1 (unadjusted quoted prices in active markets); Level 2 (observable market inputs available at the measurement date, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). Assets and Liabilities Measured at Fair Value on a Recurring Basis As of June 30, 2026, and 2025, the estimated fair value of the Company's cash, cash equivalents, restricted cash, receivables, inventory, deferred compensation assets, debt, and accounts payable approximated their carrying values. The Company recorded the estimated fair value of the contingent consideration liability assumed with the acquisition of Alline. The estimated fair value of the contingent consideration liability is included in the Consolidated Balance Sheets within other noncurrent liabilities, totaling zero dollars and $1.0 million at June 30, 2026, and 2025, respectively. The earn-out liability is adjusted at fair value quarterly until settled utilizing the Monte Carlo simulation, which is a Level 3 input, and changes in fair value are reported in our Consolidated Statements of Operations. Changes in the earn-out liability measured at fair value using Level 3 inputs were as follows: (Dollars in thousands) Earn-out liability at June 30, 2025 $ 1,000 Less: gain on earn-out liability (1,000) Earn-out liability at June 30, 2026 $ — Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We measure certain assets, including the Company's tangible fixed and other assets, and goodwill, at fair value on a nonrecurring basis when they are deemed to be other than temporarily impaired. The fair values of these assets are determined, when applicable, based on valuation techniques using the best information available, and may include quoted market prices, market comparables, and discounted cash flow projections. The following impairment charges were based on fair values using Level 3 inputs (1): Fiscal Years 2026 2025 2024 (Dollars in thousands) Long-lived asset impairment $ 52 $ 352 $ 798 _______________________________________________________________________________ (1) See Notes 1 and 5 to the Consolidated Financial Statements. 72
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 8. FINANCING ARRANGEMENTS The Company's debt consists of the following: Twelve months ended June 30, 2026 2025 2026 2025 (Cash interest rate %) (Dollars in thousands) Term loan (1) 8.42% 9.14% $ 116,135 $ 118,875 Paid-in-kind interest 11,101 5,376 Deferred financing fees (2) (9,392) (12,174) Term loan, net 117,844 112,077 Revolving credit facility (1) 8.42% 9.14% 1,030 1,030 Fair value of warrants issued to lenders (1,736) (2,314) Total debt, net $ 117,138 $ 110,793 Less: Long-term debt, current portion (3,000) (1,100) Long-term debt, net $ 114,138 $ 109,693 _______________________________________________________________________________ (1) The term loan and revolving credit facility mature on June 24, 2029. The interest rate applicable to any letter of credit is 5.25% and paid currently in cash. (2) Deferred financing fees, inclusive of $4.3 million of original issue discount fees, are amortized on a straight-line basis over the term of the related agreement. The Company's credit agreement, as amended (the 2024 Credit Agreement), includes a $120.0 million term loan and a $25.0 million revolving credit facility, with a $10.0 million minimum liquidity covenant, is secured by the Company's assets, and is set to expire on June 24, 2029. The debt refinancing in June of 2024, was considered a troubled debt restructuring, which resulted in a $94.6 million ($39.83 per weighted average diluted share) gain on the extinguishment of the prior agreement. Any unamortized financing fees that existed at the date of the new agreement were written off. In connection with the 2024 Credit Agreement, the Company issued detachable stock warrants to the debt lenders. See Note 14 for additional details. As of June 30, 2026, the Company had outstanding standby letters of credit under the revolving credit facility of $6.0 million, primarily related to the Company's self-insurance program. As of June 30, 2026, total available liquidity, net of the $10.0 million minimum liquidity covenant, and available credit under the $25.0 million revolving credit facility, as defined by the amended agreement, were $35.0 million and $19.0 million, respectively. The Company was in compliance with its covenants and other requirements of the financing arrangements as of June 30, 2026. The interest rate on the 2024 Credit Agreement is based on the secured overnight financing rate (SOFR) plus margin. The margin is subject to change based on the Company's total leverage ratio, remeasured annually on a predetermined date set by the lender. When the Company's total leverage ratio is greater than or equal to 3.75 to 1.00, the margin applicable to the term loan and revolving credit facility is 9.00%. If the Company's leverage ratio is less than 3.75 to 1.00, the margin rate is 8.50%. In either scenario, the Company has elected the option to pay 4.5% of the margin as paid-in-kind (PIK) interest (added to the principal balance and thereafter accruing interest), and the remainder is paid currently in cash. The SOFR base rate applicable to the debt has a floor of 2.50% per annum. The interest rate applicable to any letter of credit is 5.25% and paid currently in cash. The 2024 Credit Agreement includes scheduled payments totaling $3.0 million in each of fiscal years 2027, 2028, and 2029, plus a balloon payment at maturity. Additionally, excess cash is swept annually per the terms of the agreement. In the fiscal year ended June 30, 2026, the Company paid $1.5 million to satisfy the annual mandatory prepayment of 75% of excess cash flow as defined in the 2024 Credit Agreement. This amount was applied as a prepayment of the term loan and reduced the Company's unrestricted cash balance accordingly. 73
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 9. COMMITMENTS AND CONTINGENCIES Contingencies: As of June 30, 2026, the Company was self-insured for most workers' compensation, employment practice liability, and general liability. Workers' compensation and general liability losses are subject to per occurrence and aggregate annual liability limitations. The Company is insured for losses in excess of these limitations. The Company is also self-insured for health care claims for eligible participating employees subject to certain deductibles and limitations. The Company determines its liability for claims incurred but not reported on an actuarial basis. Beginning in fiscal year 2024, the Company transitioned to a third-party guaranteed cost insurance plan for workers' compensation and general liability claims. Litigation and Settlements: The Company is a plaintiff or defendant in various lawsuits and claims arising out of the normal course of business. Like certain other franchisors, the Company has faced allegations of franchise regulation and agreement violations. Additionally, because the Company may be the tenant under a master lease for a location subleased to a franchisee, the Company has faced allegations of nonpayment of rent and associated charges. Further, similar to other large retail employers, the Company has faced, and may continue to face, allegations of purported patent, consumer, and wage and hour violations, some of which involve class actions. Legal costs are expensed as incurred. Litigation is inherently unpredictable, and the outcome of these matters cannot presently be determined. Although the actions are being vigorously defended, the Company could incur judgments in the future or enter into settlements of claims that could have a material adverse effect on its results of operations in any particular period. 74
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 10. INCOME TAXES The components of income from continuing operations before income taxes are as follows: Fiscal Years 2026 2025 2024 (Dollars in thousands) Income (loss) before income taxes U.S. $ 6,801 $ 2,709 $ 91,279 International (930) (1,173) (1,343) $ 5,871 $ 1,536 $ 89,936 In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), which expands income tax disclosure requirements, primarily related to the effective tax rate reconciliation and income taxes paid. We adopted the standard prospectively in fiscal year 2026. The (benefit) provision for income taxes for the fiscal year ended 2026 differs from the amount of income tax determined by applying the applicable U.S. statutory rate to income from continuing operations before income taxes, as a result of the following: Tax Rate Reconciliation Amount Percentage (Dollars in thousands) U.S. federal statutory rate $ 1,233 21.0 % State income taxes, net of federal income tax benefit (1) (79) (1.4) Foreign tax effects Canada Changes in valuation allowance 1,288 21.9 Return to provision true-up (178) (3.0) Other (26) (0.4) United Kingdom 6 0.1 Tax Credits FICA tip credit (911) (15.5) Other tax credits (26) (0.5) Changes in valuation allowances (3,136) (53.4) Nontaxable or nondeductible items Stock-based compensation 529 9.0 FICA tip credit 191 3.2 Gain on earn-out liability (210) (3.6) Other 38 0.7 Changes in unrecognized tax benefits (175) (3.0) Other reconciling items Federal return to provision true-up 333 5.7 Other items 51 0.9 Effective tax rate $ (1,072) (18.3)% _______________________________________________________________________________ (1) State taxes in Illinois, Florida, Michigan, Pennsylvania, and Minnesota contributed to the majority of the tax effect in this category. 75
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The (benefit) provision for income taxes for the years prior to the adoption of ASU 2023-09 differs from the amount of income tax determined by applying the applicable U.S. statutory rate to income from continuing operations before income taxes, as a result of the following: 2025 2024 U.S. statutory rate 21.0 % 21.0 % State income taxes, net of federal income tax benefit (16.5) 2.3 Valuation allowance (1) (7,897.3) (21.9) Foreign income taxes at other than U.S. rates (18.5) (0.2) Uncertain tax positions 0.7 (0.1) Stock-based compensation 24.9 0.2 Deferred tax rate remeasurement (78.4) — Executive compensation limitation 10.0 — Acquired deferred taxes (2.3) — Tax attribute expiration (2) 428.4 — Other, net (3) 8.7 (0.3) Effective tax rate (7,519.3)% 1.0 % _______________________________________________________________________________ (1) The change in valuation allowance for fiscal year 2025 primarily relates to a release of a majority of the U.S. prior year valuation allowance and a release of a portion of the Canadian prior year valuation allowance. (2) The tax attribute expiration primarily relates to the expiration of a capital loss generated in fiscal year 2020, which was not offset by subsequent capital gains and is subject to a five-year carryforward period. (3) The 8.7% of other, net in fiscal year 2025 includes the rate impact of the federal provision to return true-up and permanent adjustments of 6.2% and 2.5%, respectively. The (0.3)% of other, net in fiscal year 2024 does not include the rate impact of any items in excess of 5% of computed tax. come tax (benefit) expense was comprised of the following: Fiscal Years 2026 2025 2024 (Dollars in thousands) urrent: U.S. Federal $ 37 $ — $ — U.S. State (82) 252 427 International — — (77) eferred (1): U.S. Federal (1,877) (102,079) 294 U.S. State (45) (7,807) 237 International 895 (5,862) (12) come tax (benefit) expense $ (1,072) $ (115,496) $ 869 _____________________________________________________________________________ (1) The deferred income tax benefit in fiscal year 2025 is primarily due to the release of a prior year valuation allowance in the U.S. of $110.2 million and Canada of $6.1 million. 76
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) come taxes paid, net of refunds, for fiscal year 2026 were as follows (Dollars in thousands): deral $ — ate and local taxes Louisiana 17 Pennsylvania 96 Texas 18 Other 61 reign 37 tal income taxes paid $ 229 e components of the net deferred tax assets and liabilities are as follows: June 30, 2026 2025 (Dollars in thousands) Deferred tax assets: Payroll and payroll related costs $ 4,163 $ 4,929 Net operating loss carryforwards 133,601 136,471 Tax credit carryforwards 38,357 37,443 Capital loss carryforwards 1,005 1,027 Deferred franchise fees 2,334 3,395 Operating lease liabilities 44,800 57,492 Interest expense carryforward 15,572 13,289 Other 2,551 2,580 Subtotal 242,383 256,626 Valuation allowance (57,710) (60,460) Total deferred tax assets $ 184,673 $ 196,166 Deferred tax liabilities: Goodwill and intangibles $ (34,507) $ (34,087) Operating lease assets (44,493) (57,149) Other (2,271) (2,426) Total deferred tax liabilities (81,271) (93,662) Net deferred tax asset $ 103,402 $ 102,504 At June 30, 2026, the Company has tax-effected federal, state, Canada, and U.K. net operating loss carryforwards of approximately $97.8 million, $26.2 million, $9.3 million, and $0.3 million, respectively. The Company's federal loss carryforward consists of $7.2 million that will expire in fiscal year 2038 and $90.6 million that has no expiration. The state loss carryforwards consist of $22.7 million that will expire from fiscal years 2027 to 2046 and $3.5 million that has no expiration. The federal and state loss carryforwards reported in the financial statements are reduced for uncertain tax positions by $17.6 million and $2.0 million, respectively. The Canada loss carryforward will expire from fiscal years 2036 to 2046. The U.K. loss carryforward has no expiration. The Company's tax credit carryforward of $38.4 million primarily consists of Work Opportunity Tax Credits that will expire from fiscal years 2031 to 2044. In addition, the Company generated FICA Tip Tax Credits totaling $0.9 million in fiscal year 2026, which is included in this total. The Company's capital loss carryforward will expire in fiscal year 2030. On July 4, 2025, legislation known as the One Big Beautiful Bill Act (OBBBA) was signed into law. The OBBBA makes 77
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) changes to the United States corporate income tax system, including, among other provisions, the modification of the limitation on business interest deductions under Section 163(j) of the Code, 100 percent bonus depreciation on qualified property and expansion of the 45B FICA Tip Tax Credit provisions applicable to the beauty salon industry. The impacts of the OBBBA are reflected in our results for the year ended June 30, 2026. The Company considers the earnings of certain non-U.S. subsidiaries to be indefinitely invested outside the U.S. Accordingly, we have not recorded deferred taxes related to the U.S. federal and state income taxes and foreign withholding taxes on undistributed earnings of foreign subsidiaries, which have been reinvested outside the U.S. As a result of the Tax Cuts and Jobs Act of 2017, taxes payable on the remittance of such earnings are expected to be minimal. The Company files tax returns and pays tax primarily in the U.S., Canada, and the U.K., as well as states, cities, and provinces within these jurisdictions. With limited exceptions, due to net operating loss carryforwards, the Company's federal, state, and foreign tax returns are open to examination for all years since 2014, 2013, and 2016, respectively. A rollforward of the unrecognized tax benefits is as follows: Fiscal Years 2026 2025 (Dollars in thousands) Balance at beginning of period $ 21,194 $ 21,232 Additions based on tax positions related to the current year 3 3 Additions based on tax positions of prior years 1 8 Reductions on tax positions related to the expiration of the statute of limitations (179) (49) Balance at end of period $ 21,019 $ 21,194 If the Company were to prevail on all unrecognized tax benefits recorded, a net benefit of approximately $0.6 million would be recorded in the effective tax rate. Interest and penalties associated with unrecognized tax benefits are recorded within income tax expense. The Company recorded interest and penalties of approximately $0.1 million as reductions to the accrual, net of the respective reversal of previously accrued interest and penalties, during each of the fiscal years ended June 30, 2026, 2025, and 2024. As of June 30, 2026, the Company had accrued interest and penalties related to unrecognized tax benefits of $0.6 million. This amount is not included in the gross unrecognized tax benefits noted above. It is reasonably possible the amount of the unrecognized tax benefit with respect to certain of our unrecognized tax positions will increase or decrease during the next fiscal year. However, an estimate of the amount or range of the change cannot be made at this time. 78
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 11. BENEFIT PLANS Regis Retirement Savings Plan: The Company maintains a defined contribution 401(k) plan, the Regis Retirement Savings Plan (RRSP). The RRSP is a defined contribution profit-sharing plan with a 401(k) feature that is intended to qualify under Section 401(a) of the Internal Revenue Code (the Code) and is subject to the Employee Retirement Income Security Act of 1974 (ERISA). The 401(k) portion of the RRSP is a cash or deferred arrangement intended to qualify under section 401(k) of the Code and under which eligible employees may elect to contribute a percentage of their eligible compensation. Employees who are 18 years of age or older and who were not highly compensated employees as defined by the Code during the preceding RRSP year are eligible to participate in the RRSP commencing with the first day of the month following their completion of one month of service. The discretionary employer contribution profit-sharing portion of the RRSP is a noncontributory defined contribution component covering full-time and part-time employees of the Company who have at least one year of eligible service, defined as 1,000 hours of service during the RRSP year, are employed by the Company on the last day of the RRSP year and are Salon Support employees, field leaders, artistic directors or consultants, and that are not highly compensated employees as defined by the Code. Participants' interest in the noncontributory defined contribution component becomes 20.0% vested after completing two years of service with vesting increasing 20.0% for each additional year of service with participants becoming fully vested after six full years of service. Nonqualified Deferred Salary Plan: The Company maintains a Nonqualified Deferred Salary Plan (Executive Plan), which covers Company officers and all other employees who are highly compensated as defined by the Code. The discretionary employer contribution portion of the Executive Plan is a profit- sharing component in which a participant's interest becomes 20.0% vested after completing two years of service with vesting increasing 20.0% for each additional year of service with participants becoming fully vested after six full years of service. Certain participants within the Executive Plan also receive a matching contribution from the Company. Regis Individual Secured Retirement Plan (RiSRP): The Company maintains a Regis Individual Secured Retirement Plan (RiSRP), pursuant to which eligible employees may use post-tax dollars to purchase life insurance benefits. Salon Support employees at the director level and above qualify. The Company may make discretionary contributions on behalf of participants within the RiSRP, which may be calculated as a matching contribution. The participant is the owner of the life insurance policy under the RiSRP. Stock Purchase Plan: The Company has an employee stock purchase plan (ESPP) available to qualifying employees. Under the terms of the ESPP, eligible employees may contribute up to $20,000 through payroll deductions per calendar year to purchase the Company's common stock. TheCompany contributes an amount equal to 15.0% of the purchase price of the stock to be purchased on the open market until all shares reserved for issuance under the ESPP have been purchased and pays all administrative expenses of the ESPP, including, without limitation, brokerage commissions, transfer fees, and similar costs. 79
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Deferred Compensation Contracts: The Company has unfunded deferred compensation contracts covering certain current and former key executives. Effective June 30, 2012, these contracts were amended, and the benefits were frozen. The table below presents the projected benefit obligation of these deferred compensation contracts in the Consolidated Balance Sheets: June 30, 2026 2025 (Dollars in thousands) Current portion (included in accrued expenses) $ 274 $ 306 Long-term portion (included in other non-current liabilities) 1,432 1,628 Total $ 1,706 $ 1,934 The accumulated other comprehensive income for the deferred compensation contracts, consisting of primarily unrecognized actuarial income, was $0.4 million and $0.5 million at June 30, 2026, and 2025, respectively. Additionally, the Company had previously agreed to pay the former Vice Chairman and his spouse an annual benefit for life. Costs associated with this benefit included in general and administrative expense on the Consolidated Statements of Operations totaled $0.6 million, for each of the fiscal years ended June 30, 2026, 2025, and 2024. The fair value of the related obligations totaled $2.2 million as of June 30, 2026, and 2025, with $0.6 million within accrued expenses at June 30, 2026, and 2025, and the remainder included in other non-current liabilities on the Consolidated Balance Sheets. 80
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 12. EARNINGS PER SHARE The Company's basic earnings per share is calculated as net income divided by weighted average common shares outstanding, excluding unvested outstanding stock options (SOs), outstanding stock appreciation rights (SARs), restricted stock units (RSUs), and stock-settled performance units (PSUs). The Company's diluted earnings per share is calculated as net income divided by weighted average common shares and common share equivalents outstanding, which includes shares issued under the Company's stock-based compensation plans and warrants issued in connection with the Company's credit agreement. Stock-based awards with exercise prices greater than the average market price of the Company's common stock are excluded from the computation of diluted earnings per share. The computation of weighted average shares outstanding, assuming dilution, excluded stock-based awards as detailed below, as they were not dilutive under the treasury stock method. The following table sets forth the presentation of shares outstanding used in the calculation of basic and diluted earnings per share (EPS): Fiscal Years 2026 2025 2024 (Shares in thousands) Denominator for basic EPS - weighted average common shares 2,520 2,364 2,339 Dilutive shares associated with option plans 359 316 36 Denominator for diluted EPS - weighted average common shares anddilutive potential common shares 2,879 2,680 2,375 Stock-based awards excluded from EPS calculation - anti-dilutive 122 189 217 81
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 13. STOCK-BASED COMPENSATION The Company grants long-term equity-based awards under the Amended and Restated 2018 Long Term Incentive Plan (the Amended and Restated 2018 Plan). The Amended and Restated 2018 Plan, which was approved by the Company's shareholders at its 2025 Annual Meeting of Shareholders, provides for the granting of non-qualified SOs, equity-based SARs and cash-settled SARs, RSUs and PSUs, to employees and non-employee directors of the Company. Under the Amended and Restated 2018 Plan, a maximum of 415,945 shares are approved for issuance. As of June 30, 2026, a maximum of 214,253 shares were available for grant under the Amended and Restated 2018 Plan. All unvested awards are subject to forfeiture in the event of termination of employment, unless accelerated. SAR and RSU awards granted under the Amended and Restated 2018 Plan generally include various acceleration terms, including upon retirement for participants aged 62 years or older or who are aged 55 years or older and have 15 years of continuous service. The Company also has outstanding awards under the 2016 Long Term Incentive Plan (the 2016 Plan), although the 2016 Plan terminated in October 2018 and no additional awards have since been or will be made under the 2016 Plan. The 2016 Plan provided for the granting of SARs, restricted stock awards (RSAs), RSUs and PSUs, as well as cash-based performance grants, to employees and non-employee directors of the Company. The Company also has outstanding awards under the Amended and Restated 2004 Long Term Incentive Plan (the 2004 Plan), although the 2004 Plan terminated in October 2016 and no additional awards have since been or will be made under the 2004 Plan. The 2004 Plan provided for the granting of non-qualified SOs, SARs, RSAs, RSUs and PSUs, as well as cash-based performance grants, to employees and non-employee directors of the Company. Under the Amended and Restated 2018 Plan, 2016 Plan, and the 2004 Plan, stock-based awards are granted at an exercise price or initial value equal to the fair market value on the date of grant for employees. Beginning with grants in fiscal year 2025, the number of shares subject to stock-based awards in the form of RSUs for non-employee directors was determined by dividing the dollar value of such awards by the twenty-day average share price preceding the grant date. Using the fair value of each grant on the date of grant, the weighted average fair values per stock-based compensation award granted during fiscal years 2026, 2025, and 2024 were as follows: Fiscal Years 2026 2025 2024 RSUs $ 25.11 $ 22.20 $ 21.20 The significant assumptions used in determining the estimated fair value of the market-based awards held during fiscal years 2026, 2025, and 2024 were as follows: Fiscal Years 2026 2025 2024 Risk-free interest rate 3.88 - 4.19% 3.98 - 4.48% 3.88 - 4.32% Expected volatility 66.8 - 88.6% 84.6 - 319.3% 89.2 - 104.8% Expected dividend yield — % — % — % Expected term of stock-based awards 5.4 - 6.2 years 4.7 - 7.2 years 5.8 - 6.7 years The risk-free interest rate is determined based on the U.S. Treasury rates approximating the expected life of the market-based SARs, SOs, and RSUs granted. Expected volatility is established based on historical volatility of the Company's stock price. The Company uses historical data to estimate pre-vesting forfeiture rates. The expected term is based on a review of historical exercise experience. 82
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Stock-based compensation expense was as follows: Fiscal Years 2026 2025 2024 (Dollars in thousands) SARs (1) $ (326) $ 528 $ (63) SOs 40 611 1,070 RSUs 960 801 551 Total stock-based compensation expense (recorded in general and administrative) 674 1,940 1,558 Less: Income tax expense (2) (142) (407) — Total stock-based compensation expense, net of tax $ 532 $ 1,533 $ 1,558 _______________________________________________________________________________ (1) The credit balance in fiscal years 2026 and 2024 is due to adjustments made for quarterly revaluations, as well as the expiration of a portion of the SARs in fiscal year 2026. (2) Federal statutory income tax rate of 21% utilized in fiscal years 2026 and 2025. Federal statutory income tax rate of 0% utilized due to a valuation allowance in fiscal year 2024. Starting in fiscal year 2026, Stock-based compensation on our Consolidated Statements of Cash Flows includes stock-based compensation paid to a third-party vendor which is not included in the above table. Stock Appreciation Rights: SARs granted under the 2018 Plan, 2016 Plan, and the 2004 Plan generally vested at 20%, 20%, and 60% over a three-year period subsequent to the grant date or vested ratably over a three to five-year period on each of the annual grant date anniversaries and expire ten years from the grant date. SARs awarded to the Company's executives are liability-classified awards that vest ratably over a three-year period and are revalued each reporting period. SARs granted prior to fiscal year 2023 vested 20%, 20%, and 60% over a three-year period or vest ratably over a three-year period. Activity for all the Company's outstanding SARs is as follows: Shares/Units(in thousands) WeightedAverageExercise Price WeightedAverageRemainingContractual Life AggregateIntrinsic Value(in thousands)SARs Outstanding balance at June 30, 2023 105 $ 129.00 Outstanding balance at June 30, 2024 105 129.00 Forfeited/Expired (9) 40.32 Outstanding balance at June 30, 2025 96 137.69 Forfeited/Expired (19) 49.34 Outstanding balance at June 30, 2026 77 159.18 2.54 $ — Exercisable at June 30, 2026 77 159.18 2.54 — Unvested awards, net of estimated forfeitures — — — As of June 30, 2026, all outstanding SARs are fully vested and there is no remaining unrecognized expense related to SARs to be recognized. 83
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Stock Options: SOs granted under the Amended and Restated 2018 Plan, 2016 Plan, and the 2004 Plan generally vested 20%, 20%, and 60% over a three- year period subsequent to the grant date or vested ratably over a three to five-year period on each of the annual grant date anniversaries and expire ten years from the grant date as long as the participant remains active. The SOs granted during fiscal year 2023 were awarded to the Company's executives which vested ratably over a three-year period and to non-employee directors which vested in equal amounts over a one-year period from the Company's previous annual shareholder meeting date. Activity for all the Company's outstanding SOs is as follows: Shares/Units(in thousands) WeightedAverageExercise Price WeightedAverageRemainingContractual Life AggregateIntrinsic Value(in thousands)SOs Outstanding balance at June 30, 2023 150 $ 32.27 Forfeited/Expired (1) 30.40 Outstanding balance at June 30, 2024 149 32.29 Forfeited/Expired (24) 32.91 Outstanding balance at June 30, 2025 125 32.17 Forfeited/Expired (24) 40.64 Exercised (49) 25.38 Outstanding balance at June 30, 2026 52 34.77 6.01 $ — Exercisable at June 30, 2026 52 34.77 6.01 — As of June 30, 2026, all outstanding SOs are fully vested and there is no remaining unrecognized expense to be recognized. Restricted Stock Units: RSUs granted to employees under the Amended and Restated 2018 Plan, 2016 Plan, and 2004 Plan generally vest 20%, 20%, and 60% over a three-year period subsequent to the grant date, vest ratably over a one to five-year period on each of the annual grant date anniversaries or vest entirely after a one, three, or five-year period subsequent to the grant date. RSUs granted to non-employee directors under the Amended and Restated 2018 Plan, 2016 Plan, and 2004 Plan generally vest in equal monthly amounts over a one-year period from the Company's previous annual shareholder meeting date and distributions are deferred until the director's board service ends. 84
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) Activity for all the Company's RSUs is as follows: Shares/Units(in thousands) WeightedAverageGrant DateFair Value Aggregate IntrinsicValue(in thousands)RSUs Outstanding balance at June 30, 2023 39 $ 126.83 Granted 13 21.20 Forfeited (1) 22.65 Vested (3) 110.97 Outstanding balance at June 30, 2024 48 101.48 Granted 82 22.20 Forfeited (8) 22.18 Vested (19) 79.06 Outstanding balance at June 30, 2025 103 48.79 Granted 73 25.11 Forfeited (34) 22.97 Vested (32) 72.33 Outstanding balance at June 30, 2026 110 34.28 $ 3,080 Vested at June 30, 2026 25 39.22 700 Unvested awards, net of estimated forfeitures 76 33.67 2,128 As of June 30, 2026, there was $1.1 million of unrecognized expense related to RSUs that is expected to be recognized over a weighted average period of 1.8 years. The fair value of the shares vested was $2.3 million, $1.5 million, and $0.3 million in fiscal years 2026, 2025, and 2024, respectively. 85
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 14. SHAREHOLDERS' EQUITY Authorized Shares and Designation of Preferred Class: The Company has 5.0 million shares of capital stock authorized, par value $0.05, of which all outstanding shares, and shares available under the Stock Option Plans, have been designated as common stock. Alline Acquisition: In connection with the Alline Acquisition, the Company issued 140,552 shares of common stock to affiliates of Alline, which were subject to a one-year lock-up following the closing. Stock Warrants Issued in Connection with Long-Term Debt: In connection with the 2024 Credit Agreement (as defined in Note 8 to the Consolidated Financial Statements), the Company issued detachable warrants to affiliates of TCW Asset Management Company, LLC, and Asilia Investments. Pursuant to the warrants, the holders can purchase up to an aggregate 407,542 shares of common stock of the Company, par value $0.05 per share (Common Stock), at an exercise price equal to $7.00 per share. In December 2024, the Company amended the 2024 Credit Agreement. The Company issued additional warrants to affiliates of TCW Asset Management Company, LLC, and Asilia Investments. In connection with this amendment, the warrant holders can purchase up to anaggregate 64,372 shares of Common Stock, at an exercise price equal to $23.86 per share. The warrants issued in connection with the 2024 Credit Agreement and the amendment thereto are exercisable for a seven-year period beginning June 24, 2024, and December 19, 2024, respectively. The warrants may also be exercised on a cashless basis if, at the time of exercise, there is no effective registration statement registering, or the prospectus therein is not available for, the issuance of the shares of Common Stock underlying the warrants. In addition, in connection with the issuance of the warrants, the Company granted an exemption in favor of each holder pursuant to Section 36 of the Tax Benefits Preservation Plan, dated January 29, 2024, as the same may be amended from time to time, among the Company and Equiniti Trust Company, LLC (the Plan), such that neither holder was deemed to be an “Acquiring Person” (as defined in the Plan) solely in connection with (i) the issuance of the warrants nor (ii) the acquisition of beneficial ownership of securities of the Company pursuant to the exercise of the warrants. The warrants and the shares of Common Stock issuable upon the exercise of such warrants have not been registered under the Securities Act of 1933, as amended (Securities Act), and may not be sold absent registration or an applicable exemption from the registration requirements of the Securities Act. Based in part upon the representations of each holder in each warrant, the offering and sale of each warrant is exempt from registration under Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation D promulgated under the Securities Act. The combined value of these warrants was $2.8 million using a relative fair value method and accounted for through additional paid-in capital upon issuance. Further, the related financing fees incurred as a result of warrant issuance are recorded through a contra-equity account and amounted to $0.2 million. For the warrants originally issued in June 2024, prior to the second anniversary of the issue date, the Company may call for cancellation up to an aggregate 203,771 shares of Common Stock underlying the warrants for consideration equal to $15.00 per share; provided, that the volume weighted average price on the trading day immediately preceding the date the Company delivers a written call notice to a holder exceeds $20.00. The Company did not exercise this call provision prior to the second anniversary of the issue date, and the call provision expired in June 2026. For the warrants issued in December 2024, prior to the second anniversary of the issue date, the Company may call for cancellation up to an aggregate 32,186 shares of Common Stock underlying the warrants for consideration equal to $51.13 per share; provided, that the volume weighted average price on the trading day immediately preceding the date the Company delivers a written call notice to a holder exceeds $68.17. As of June 30, 2026, the Company has no intention of exercising the remaining call provision. The Company will reassess this intention on a quarterly basis. Stock Warrants Issued in Connection with Consulting Services Agreement: On August 1, 2025, as part of a consulting services agreement, the Company issued two warrants to purchase Common Stock of theCompany to Forum3 Inc., consisting of: (i) a warrant, exercisable through October 31, 2025, to purchase up to $490,000 in aggregate value of shares of Common Stock at an exercise price of the greater of $22 per share and the 10-day average closing price immediatelyprior to any exercise (the Initial Warrant); and (ii) a warrant to purchase up to an additional 35,000 shares of Common Stock, at an exerciseprice of $24.20 per share (the Coverage Warrant). The Coverage Warrant is eligible to vest proportionally to the extent the Initial Warrantis exercised, and, to the extent vested, will remain exercisable until August 1, 2028. At issuance, the fair value of these warrants was determined to be $0.5 million using the Black-Scholes model as described below. The warrants are not remeasured in future periodsbecause they meet the conditions for equity classification. 86
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As a result of the partial exercise of the Initial Warrant, the Coverage Warrant vested with respect to 21,429 shares of Common Stock andthe remaining 13,571 shares of Common Stock subject to the Coverage Warrant did not vest. The Company valued the warrants, based on a Black-Scholes model, using the life of the warrants as the expected term, expected volatility of 177%, a risk-free interest rate of 4.03%,and a forfeiture rate of 38.8% under the assumption that only $0.3 million of the Initial Warrant would be exercised. On September 11, 2025, Forum3 Inc. exercised $300,000 of the Initial Warrant at the 10-day average closing price of $23.87 per share fora total of 12,567 shares of Common Stock. The remaining $190,000 of the Initial Warrant expired on October 31, 2025. Tax Benefits Preservation Plan: The Company adopted a Tax Benefits Preservation Plan intended to help protect the availability of certain tax attributes (including netoperating loss carryforwards) by deterring acquisitions of Common Stock above a specified ownership threshold. In connection with theadoption of the Plan, the Company declared a dividend distribution of one preferred stock purchase right (a Right) for each outstanding share of common stock to shareholders of record as of February 9, 2024. The dividend had a de minimis value. The Rights are set forth inthe Plan. On January 27, 2025, the Company entered into Amendment No. 1 to the Plan, extending the expiration date of the Plan fromJanuary 29, 2025, to January 29, 2028 (the Extension). Pursuant to the terms of the Plan, the Company submitted the Extension to itsshareholders for ratification at the October 28, 2025 annual shareholders meeting, and the shareholders ratified the Plan. The material terms of the Rights include, among others: (i) the ownership threshold that generally triggers the Rights becomingexercisable (an Acquiring Person) is 4.95% beneficial ownership, subject to customary exemptions, grandfathering, and Board discretionas set forth in the Plan; (ii) prior to the Distribution Date (as defined in the Plan), the Rights trade together with the Company’s common stock and are not exercisable; (iii) upon the Distribution Date, the Rights detach and become exercisable to purchase from the Companyone one-thousandth of a share of the Company’s Series A Junior Participating Preferred Stock at an initial purchase price of $73.00,subject to adjustment; (iv) if a person becomes an Acquiring Person, each Right (other than Rights held by the Acquiring Person, whichbecome void) generally entitles its holder to purchase, for the exercise price, a number of shares of the Company’s common stock having a market value of two times the exercise price (a “flip-in” feature), subject to the terms and limitations in the Plan; (v) upon certain businesscombination transactions following the occurrence of an Acquiring Person, Rights holders may have the right to purchase common stockof the acquiring company at a discount (a “flip-over” feature), subject to the terms of the Plan; (vi) the Rights are redeemable by the Boardat $0.0001 per Right prior to the time a person becomes an Acquiring Person, and the Board may exchange the Rights for shares of common stock (or other consideration) under specified circumstances; and (vii) the Rights expire on January 29, 2028, unless earlierredeemed or exchanged in accordance with the Plan. The Company evaluated the Rights under applicable U.S. GAAP, including the guidance for freestanding financial instruments indexed to,and potentially settled in, an entity’s own equity. The Company concluded that the declaration and distribution of the Rights did not result in recognition of an asset or liability and did not have an impact on the Company’s Consolidated Balance Sheets as of June 30, 2026 orConsolidated Statements of Operations or Consolidated Statements of Cash Flows for the three years ended June 30, 2026 because (i) theRights were issued to existing shareholders as a dividend with no proceeds received, (ii) the Rights were not exercised during the fiscal year ended June 30, 2026, and (iii) the Rights are contingently exercisable only upon the occurrence of specified events and, based on theirterms, are intended to be classified in shareholders’ equity rather than as liabilities. Costs directly attributable to the adoption of the Plan(e.g., external legal, advisory, and filing fees) were recorded in general and administrative expense as incurred, consistent with the natureof the costs. Share Repurchase Program In May 2000, the Company's Board approved a stock repurchase program with no stated expiration date. Originally, the program authorized up to $50.0 million to be expended for the repurchase of the Company's stock. The Board elected to increase this maximum to $100.0 million in August 2003, to $200.0 million in May 2005, to $300.0 million in April 2007, to $350.0 million in April 2015, to $400.0 million in September 2015, to $450.0 million in January 2016, and to $650.0 million in August 2018. All repurchased shares become authorized but unissued shares of the Company. As of June 30, 2026, 1.5 million shares have been cumulatively repurchased for $595.4 million, and $54.6 million remained authorized for repurchase. The Company does not anticipate repurchasing shares of common stock for the foreseeable future. 87
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Accumulated Other Comprehensive Income: The components of accumulated other comprehensive income are as follows: June 30, 2026 2025 (Dollars in thousands) Foreign currency translation $ 7,230 $ 7,786 Unrealized gain on deferred compensation contracts 387 500 Accumulated other comprehensive income $ 7,617 $ 8,286 88
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 15. SEGMENT INFORMATION Segment information is presented on the same basis that the Company internally organizes the business for assessing performance and making decisions regarding allocation of resources. The Company's Chief Operating Decision Maker (CODM) is our President and Chief Executive Officer. Revenue, expenses, and operating income (loss) by segment are regularly reviewed by the CODM to make decisions about resources to be allocated to the segments, assess current performance, and forecast future performance. Our CODM manages our business primarily by reviewing consolidated results by segment on a quarterly basis and using those results along with forecasts and other non-financial information in our annual budgeting process. The Company's CODM does not evaluate reportable segments using assets and capital expenditure information. Consistent with our internal management reporting, unallocated expenses include certain items impacting comparability. These unallocated items are not defined terms within GAAP. They are based on how management views the business, makes financial, operating and planning decisions and evaluates the Company's ongoing performance and are not attributable to either segment. Unallocated fees include one-time professional fees and settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired ROU assets, lease termination fees, asset retirement obligation costs, goodwill and long-lived asset impairment charges, and the benefit from the Company's debt refinancing. Financial information concerning the Company's reportable operating segments is shown in the tables below. For the Year Ended June 30, 2026 (Dollars in thousands) Franchise Company-owned Consolidated Total revenue $ 146,163 $ 78,322 $ 224,485 Expenses (1) General and administrative $ 37,275 $ 4,770 Rent 2,708 10,744 Other expenses (2) 84,335 — Company-owned salon expense — 56,041 Depreciation and amortization 795 3,317 Long-lived asset impairment — 52 Segment profit $ 21,050 $ 3,398 $ 24,448 Unallocated expenses, net (18,577) Income from operations before income taxes $ 5,871 _______________________________________________________________________________ (1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown. (2) Other expenses include advertising fund and franchise rent expenses which are offset in total revenue and, as such, not used as a primary measure of performance by our CODM. 89
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) For the Year Ended June 30, 2025 (Dollars in thousands) Franchise Company-owned Consolidated Total revenue $ 166,403 $ 43,731 $ 210,134 Expenses (1) General and administrative 42,769 3,995 Rent 3,413 7,074 Other expenses (2) 98,523 — Company-owned salon expense — 31,103 Depreciation and amortization 1,194 1,772 Long-lived asset impairment 352 — Segment profit (loss) $ 20,152 $ (213) $ 19,939 Unallocated expenses, net (18,403) Income from operations before income taxes $ 1,536 _______________________________________________________________________________ (1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown. (2) Other expenses include advertising fund and franchise rent expenses which are offset in total revenue and, as such, not used as a primary measure of performance by our CODM. For the Year Ended June 30, 2024 (Dollars in thousands) Franchise Company-owned Consolidated tal revenue $ 195,659 $ 7,323 $ 202,982 penses (1) Cost of product sales to franchisees $ 436 $ — General and administrative 44,778 609 Rent 3,450 2,075 Other expenses (2) 120,921 — Company-owned salon expense — 5,080 Depreciation and amortization 3,095 850 Long-lived asset impairment 798 — Segment profit (loss) $ 22,181 $ (1,291) $ 20,890 Unallocated income, net (3) 69,046 Income from operations before income taxes $ 89,936 _______________________________________________________________________________ (1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker. Intersegment expenses are included within the amounts shown. (2) Other expenses include advertising fund and franchise rent expenses which are offset in total revenue and, as such, not used as a primary measure of performance by our CODM. (3) Unallocated income, net includes extinguishment of long-term debt. 90
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The Franchise reportable operating segment is comprised of franchise salons located mainly in strip center locations and Walmart stores. Franchise salons offer high quality, convenient and value-priced hair care and beauty services and retail products. This segment operates primarily in the U.S., Puerto Rico, and Canada and primarily includes the Supercuts, SmartStyle, Cost Cutters, First Choice Haircutters, Roosters, and Magicuts concepts. The company-owned salons reportable operating segment is comprised of company-owned salons located mainly in strip center locations. Company-owned salons offer high quality, convenient and value priced hair care and beauty services and retail products. Supercuts, Cost Cutters, and Holiday Hair operating in the U.S. are generally within the company-owned salons segment. Segment information is prepared on the same basis that the CODM reviews financial information for operational decision-making purposes. The Company's reportable operating segments consisted of the following salons: June 30, 2026 2025 FRANCHISE SALONS: Supercuts 1,634 1,711 SmartStyle/Cost Cutters in Walmart stores 984 1,049 Portfolio Brands 763 816 Total North American salons 3,381 3,576 Total International salons (1) 67 71 Total franchise salons 3,448 3,647 as a percent of total franchise and company-owned salons 92.9 % 92.5 % COMPANY-OWNED SALONS: Supercuts 95 100 Portfolio Brands 169 194 Total company-owned salons 264 294 as a percent of total franchise and company-owned salons 7.1 % 7.5 % Total franchise and company-owned salons 3,712 3,941 _______________________________________________________________________________ (1) Canadian and Puerto Rican salons are included in the North American salon totals. Total revenues and property and equipment, net associated with business operations in the U.S. and all other countries in aggregate were as follows: June 30, 2026 2025 2024 TotalRevenues Property andEquipment, Net TotalRevenues Property andEquipment, Net TotalRevenues Property andEquipment, Net (Dollars in thousands) U.S. $ 209,299 $ 9,285 $ 194,211 $ 10,085 $ 183,465 $ 3,663 Other countries 15,186 — 15,923 — 19,517 1 Total $ 224,485 $ 9,285 $ 210,134 $ 10,085 $ 202,982 $ 3,664 91
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 16. ACQUISITIONS On December 19, 2024, the Company transferred consideration to acquire 100 percent of the equity interests of Alline (the AllineAcquisition), its largest franchisee, consisting of 314 salons. The transaction provides Regis with a turn-key operating infrastructure andgets the Company closer to salon operations alongside franchisees, and the salon portfolio provides a testing ground for brand andoperational initiatives. The transaction terminated the existing franchise arrangements between Regis and Alline, which resulted in the Company recognizing a loss of $0.2 million upon settlement, which is included in the Consolidated Statements of Operations as acomponent of operating income for the year ended June 30, 2025. The acquisition was accounted for as a business combination with the purchase price allocated using information available as of December 19, 2024. Assets acquired and liabilities assumed were recorded at estimated fair values based on management’s estimates, availableinformation, and supportable assumptions that management considered reasonable. As of June 30, 2025, the purchase price and related allocation were revised as a result of additional information obtained and revisions tothe provisional estimates of fair value, including, but not limited to, the completion of independent appraisals and valuations related to property and equipment, intangible assets, right of use assets and corresponding lease obligations. There were no adjustments made tothese allocations in the year ended June 30, 2026. The fair value of total consideration transferred by the Company upon acquisition is $22.6 million, as detailed below. Consideration (Dollars in thousands) Cash, net of cash acquired (1) $ 18,621 Equity instruments (140,552 of Common Stock) (2) 3,000 Contingent consideration arrangement (3) 1,000 Fair value of total consideration $ 22,621 _______________________________________________________________________________ (1) Includes cash transferred of $20.0 million, net of cash acquired of $1.4 million. (2) The number of Common Stock (140,552) issued as part of the consideration paid for Alline was determined by dividing the $3.0 million by the 30-trading day volume weighted average price of the common stock as reported on the Nasdaq Global Market as of and including December 17, 2024. (3) The contingent consideration arrangement requires Regis to pay the former owners of Alline additional cash consideration if certain 4-Wall EBITDA or Adjusted EBITDA thresholds are met for each of the three subsequent annual earn-out periods as well as a cumulative 4-Wall EBITDA or Adjusted EBITDA threshold for the cumulative three subsequent annual earn-out periods. The potential undiscounted amount of all future payments that Regis could be required to make under the contingent consideration arrangement is between $0 and $3.0 million. Regis recognized a fair value of $1.0 million as of June 30, 2025, which is included in other noncurrent liabilities in the Consolidated Balance Sheets. As of June 30, 2026, the Company determined the value of the contingent arrangement is $0. The Company recognized a gain on earn-out liability of $1.0 million in the year ended June 30, 2026, which is included in our Consolidated Statements of Operations. 4-Wall EBITDA is defined as earnings before interest, tax, depreciation and amortization and excluding corporate general and administrative expenses for acquired salons. The earn-out liability is adjusted at fair value quarterly, as needed, until settled utilizing the Monte Carlo simulation, and changes in fair value will be reported in our Consolidated Statements of Operations. Refer to Note 7 to the Consolidated Financial Statements for additional information regarding the valuation. 92
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Table of Contents NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) The following table summarizes the estimated fair value of the assets acquired and liabilities assumed as of the acquisition date: (Dollars in thousands) Current assets $ 3,630 Property and equipment 7,976 Goodwill (1) 10,252 Intangible assets (2) 3,780 Right of use assets 7,292 Other assets 56 Assumed current liabilities (2,352) Assumed lease liabilities (8,013) Fair value of total consideration $ 22,621 _______________________________________________________________________________ (1) Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Specifically, the goodwill that will be recorded as part of the acquisition of Alline includes the following: a. the expected synergies and other benefits that we believe will result from combining the operations of Alline with the operations of Regis; and b. any intangible assets that do not qualify for separate recognition. Goodwill is not amortized and is deductible for tax purposes. All the goodwill related to the acquisition of Alline is related to our company-owned operating segment. (2) Intangible assets include $2.4 million related to the fair value of reacquired rights and $1.4 million related to the fair value of favorable leasehold interests, net. a. The reacquired rights were valued using a form of the income approach where the asset's value is determined by its ability to generate future cash flows by isolating and discounting the cash flows attributable to the asset. The Company assumed a four-year life based on the weighted average remaining contract term, assuming no renewals. b. Upon acquisition, the Company assumed lease agreements with lease payments fixed at a rate below the current market rate. As a result, a favorable lease asset of $1.4 million was recorded on the balance sheet. This asset represents the benefit the Company receives from having lease payments below market and will be amortized to rent expense on a straight-line basis over the remaining terms of the respective leases. The Company incurred $1.4 million of acquisition related costs which are included in general and administrative expense in Regis’sConsolidated Statements of Operations for the year ended June 30, 2025. The following table provides revenues and operating income from Alline that are included in our Consolidated Financial Statements sincethe date of acquisition: Fiscal Year Ended June 30, 2026 December 19, 2024 Through June 30, 2025 (Dollars in thousands) Total revenues $ 75,872 $ 40,813 Operating income 3,840 2,424 The following table presents information for the Company as if the Alline Acquisition had occurred on July 1, 2023: Actuals Pro forma For the Year Ended June 30, 2026 For the Year Ended June 30, 2025 For the Year Ended June 30, 2024 (Dollars in thousands) Total revenues $ 224,485 $ 239,350 $ 277,210 Operating income 24,448 24,066 22,575 93
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Table of Contents Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None. Item 9A. Controls and Procedures Evaluation of Disclosure Controls and Procedures The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed by the Company in the reports filed or submitted under the Exchange Act, is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to management, including the Chief Executive Officer (CEO) and Chief Financial Officer (CFO), as appropriate to allow timely decisions regarding required disclosure. Management, with the participation of the CEO and CFO, evaluated the effectiveness of the design and operation of the Company's disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Exchange Act), at the end of the period. Based on their evaluation, our CEO and CFO concluded that our disclosure controls and procedures were effective as of June 30, 2026. Management's Report on Internal Control over Financial Reporting Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rule 13a-15(f) of the Exchange Act. Under the supervision and with the participation of our management, including the CEO and the CFO, we carried out an evaluation of the effectiveness of our internal control over financial reporting as of June 30, 2026 using the criteria established in "Internal Control-Integrated Framework" (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based upon this evaluation, management concluded the Company's internal control over financial reporting was effective as of June 30, 2026, based on those criteria. Changes in Internal Control over Financial Reporting There were no changes in our internal control over financial reporting during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. Item 9B. Other Information During the three months ended June 30, 2026, no director or officer of the Company adopted, modified, or terminated a "Rule 10b5-1 trading arrangement" or "non-Rule 10b5-1 trading arrangement," as each term is defined in Item 408(a) of Regulation S-K. Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections Not applicable. 94
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Table of Contents PART III Item 10. Directors, Executive Officers, and Corporate Governance Information regarding the directors of the Company will be set forth in the section titled "Election of Directors" of the Company's 2026 Proxy Statement and is incorporated herein by reference. The information required by Item 401 of Regulation S-K regarding the Company's executive officers is included under "Information about our Executive Officers" in Item 1 of this Annual Report on this Form 10-K. Information regarding the Company's audit committee and audit committee financial expert, as well as nominating committee functions, will be set forth in the section titled "Our Board's Committees" and shareholder communications with directors will be set forth in the section titled "How We Govern the Company" of the Company's 2026 Proxy Statement and are incorporated herein by reference. Additionally, information regarding the Company’s Statement of Policy on Insider Trading will be set forth in the section titled "Other Governance and Compliance Policies and Practices" of the Company’s 2026 Proxy Statement and is incorporated herein by reference. The Company’s Statement of Policy on Insider Trading is incorporated by reference hereto as Exhibit 19. The Company has adopted a code of ethics, known as the Code of Business Conduct & Ethics, that applies to all employees, including the Company's chief executive officer, chief financial officer, directors, and executive officers. The Code of Business Conduct & Ethics is available on the Company's website at www.regiscorp.com, under the heading "Corporate Governance - Policies & Disclosures" (within the "Investor Relations" section). The Company intends to disclose any substantive amendments to, or waivers from, its Code of Business Conduct & Ethics on its website or in a report on Form 8-K. Copies are available upon request to any shareholder of the Company by writing to the Company's Chief Financial Officer at Regis Corporation, 3701 Wayzata Boulevard, Suite 600, Minneapolis, Minnesota 55416. Item 11. Executive Compensation Information about executive and director compensation will be set forth in the sections titled "Executive Compensation," "Executive Compensation Tables," "How Our Directors Are Paid," and "Fiscal 2026 Director Compensation Table" of the Company's 2026 Proxy Statement and is incorporated herein by reference. Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters Information regarding the Company's equity compensation plans will be set forth in the section titled "Equity Compensation Plan Information" and information regarding the beneficial ownership of the Company will be set forth in the section titled "Security Ownership of Certain Beneficial Holders and Management" of the Company's 2026 Proxy Statement, and are incorporated herein by reference. Item 13. Certain Relationships and Related Transactions, and Director Independence Information regarding certain relationships and related transactions will be set forth in the section titled "Certain Relationships and Related Transactions" of the Company's 2026 Proxy Statement and is incorporated herein by reference. Information regarding director independence will be set forth in the section titled "How We Govern the Company" of the Company's 2026 Proxy Statement and is incorporated herein by reference. Item 14. Principal Accountant Fees and Services A description of the fees paid to the independent registered public accounting firm will be set forth in the section titled "Ratification of Appointment of Independent Registered Public Accounting Firm" of the Company's 2026 Proxy Statement and is incorporated herein by reference. 95
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Table of Contents PART IV Item 15. Exhibits and Financial Statement Schedules (a) The following documents are filed as part of this report: (1) All financial statements: Consolidated Financial Statements filed as part of this report are listed under Part II, Item 8 of this Form 10-K. (2) Financial statement schedules: All financial statement schedules are omitted as the required information is inapplicable, not required, or the information is presented in the Consolidated Financial Statements or related notes. (3) Exhibits: The exhibits listed in the accompanying index are filed as part of this report. Except where otherwise indicated below, the SEC file number for each report and registration statement from which the exhibits are incorporated by reference is 1-12725. ExhibitNumber Description 2.1 Membership Interest Purchase Agreement, dated December 19, 2024, by and among Regis Corporation, Super CGroup, LLC d/b/a Alline Salon Group, ASG Holdings, LLC, Vision Cuts, LLC, SAAW Project, LLC, and VGP IILLC. (Incorporated by reference to Exhibit 2.1 of the Company’s Current Report on Form 8-K filed on December 19,2024.) 3.1 Restated Articles of Incorporation of Regis Corporation. (Incorporated by reference to Exhibit 3.2 of the Company'sCurrent Report on Form 8-K filed on December 1, 2023.) 3.2 Bylaws of Regis Corporation. (Incorporated by reference to Exhibit 3.2 of the Company's Current Report on Form 8-Kfiled on May 8, 2020.) 3.3 Certificate of Designation of Series A Junior Participating Preferred Stock. (Incorporated by reference to Exhibit 3.1 ofthe Company's Current Report on Form 8-K filed on January 30, 2024.) 4.1 Description of the Company's Securities. (Incorporated by reference to Exhibit 4.1 of the company’s Annual Report onForm 10-K filed on September 3, 2025.) 4.2 Tax Benefits Preservation Plan, dated as of January 29, 2024, between the Company and Equiniti Trust Company,LLC. (Incorporated by reference to Exhibit 4.1 of the Company's Current Report on Form 8-K filed on January 30,2024.) 4.3 Amendment No. 1 to Tax Benefits Preservation Plan, dated as of January 27, 2025, by and between Regis Corporationand Equiniti Trust Company, LLC. (Incorporated by reference to Exhibit 4.1 of the Company’s Current Report onForm 8-K filed on January 28, 2025.) 10.1* Regis Corporation Executive Retirement Savings Plan Adoption Agreement and Trust Agreement, dated November 15,2008, between the Company and Fidelity Management Trust Company. (Incorporated by reference to Exhibit 10(a) ofthe Company's Quarterly Report on Form 10-Q filed February 9, 2009.) 10.2* The CORPORATE Plan for Retirement EXECUTIVE PLAN basic plan document. (Incorporated by reference toExhibit 10(c) to the Company's Annual Report on Form 10-K filed on August 29, 2007.) 10.3* Amendment to the adoption agreement for the Regis Corporation Executive Retirement Savings Plan, effectiveJanuary 1, 2016. (Incorporated by reference to Exhibit 10.3 to the Company's Annual Report on Form 10-K filed onAugust 23, 2022). 10.4* Employment Agreement dated December 1, 2014, between the Company and Kersten D. Zupfer. (Incorporated byreference to Exhibit 10(g) of the Company's Annual Report on Form 10-K filed on August 31, 2020.) 10.5* Regis Corporation Amended and Restated 2004 Long Term Incentive Plan, as amended and restated effectiveOctober 22, 2013. (Incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K filed onOctober 11, 2013.) 10.6* Amendment to the Amended and Restated 2004 Long Term Incentive Plan, effective August 29, 2014. (Incorporatedby reference to Exhibit 10(b) of the Company's Quarterly Report on Form 10-Q filed on November 4, 2014.) 10.7* Regis Corporation 2016 Long Term Incentive Plan, effective October 18, 2016. (Incorporated by reference toAppendix A of the Company’s Proxy Statement on Definitive Form 14A filed on September 7, 2016.) 96
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Table of Contents 10.8* Regis Corporation Amended and Restated 1991 Contributory Stock Purchase Plan, as amended and restated October28, 2025. (Incorporated by reference to Appendix B of the Company’s Proxy Statement on Definitive Form 14A filedon September 17, 2025.) 10.9* Amended and Restated Senior Executive Severance Policy, dated September 1, 2022. (Incorporated by reference toExhibit 10.1 of the Company's Quarterly Report on Form 10-Q filed on November 1, 2022.) 10.10* Form of Restricted Stock Unit Agreement (Annual Fiscal 2017 Non-Employee Director Grants). (Incorporated byreference to Exhibit 10.22 of the Company's Annual Report on Form 10-K filed on August 23, 2022.) 10.11* Form of Restricted Stock Unit Agreement (Annual Fiscal 2018 Non-Employee Director Grants). (Incorporated byreference to Exhibit 10.23 of the Company's Annual Report on Form 10-K filed on August 23, 2022.) 10.12* Form of Restricted Stock Unit Agreement (Non-Employee Director Grants). (Incorporated by reference to Exhibit 10.7of the Company's Quarterly Report on Form 10-Q filed on October 30, 2018.) 10.13* Form of Restricted Stock Unit Agreement (Non-Employee Director Grants for fiscal 2025 and later.) 10.14* Regis Corporation Amended and Restated Short Term Incentive Compensation Plan, effective February 27, 2019.(Incorporated by reference to Exhibit 10.1 of the Company's Quarterly Report on Form 10-Q filed on April 30, 2019.) 10.15* Regis Corporation 2018 Long Term Incentive Plan, effective October 23, 2018. (Incorporated by reference toAppendix A of the Company’s Proxy Statement on Definitive Form 14A filed on September 6, 2018.) 10.16* Regis Corporation Amended and Restated 2018 Long Term Incentive Plan. (Incorporated by reference to Appendix Aof the Company's Proxy Statement on Definitive Form 14A filed on September 26, 2024.) 10.17* Form of Stock Option Award Agreement (Annual Executive Grants). (Incorporated by reference to Exhibit 10.1 of theCompany's Quarterly Report on 10-Q filed on November 4, 2021.) 10.19* Form of Cash-Settled SAR Agreement (Annual Executive Grants). (Incorporated by reference to Exhibit 10.2 of theCompany's Quarterly Report on 10-Q filed on November 4, 2021.) 10.20* Form of Cash Settled SAR Agreement (Annual Executive Grants). (Incorporated by reference to Exhibit 10.2 of theCompany's Quarterly Report on Form 10-Q filed on November 1, 2022.) 10.21* Form of Employee Stock Option Agreement (Annual Executive Grants). Incorporated by reference to Exhibit 10.3 ofthe Company's Quarterly Report on Form 10-Q filed on November 1, 2022.) 10.22* Form of Non-Employee Director Stock Option Agreement (Annual Non-Employee Director Grants). (Incorporated byreference to Exhibit 10.4 of the Company's Quarterly Report on Form 10-Q filed on November 1, 2022.) 10.23* Form of Restricted Stock Unit Agreement (Annual Executive Grants.) 10.24* Regis Corporation Executive Long-Term Cash Incentive Plan. (Incorporated by reference to Exhibit 10.1 of theCompany's Current Report on Form 8-K filed on January 29, 2025.) 10.25* President and CEO Offer Letter Agreement, dated February 18, 2026, between the Company and Susan Lintonsmith.(Incorporated by reference to Exhibit 10.1 of the Company’s Current Report on Form 8-K filed on March 16, 2026). 10.26* Letter Agreement for Chief Operating Officer, dated March 13, 2026, between the Company and Jim Lain.(Incorporated by reference to Exhibit 10.2 of the Company’s Current Report on Form 8-K filed March 16, 2026.) 10.27* Financing Agreement, dated as of June 24, 2024, among the Company, the Lenders party thereto, TCW AssetManagement Company LLC as administrative and collateral agent, and MidCap Financial Trust as Revolving Agent.(Incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K filed on June 25, 2024.) 10.28* First Amendment to Financing Agreement, among the Company, the Lenders party thereto, TCW Asset ManagementCompany LLC as administrative and collateral agent, and MidCap Financial Trust as Revolving Agent. (Incorporatedby reference to Exhibit 10.1 of the Company's Current Report on Form 8-K filed on December 19, 2024.) 10.29* Form of Warrant. (Incorporated by reference to Exhibit 10.1 of the Company's Current Report on Form 8-K filed onJuly 10, 2024.) 10.30* Form of First Amendment to Financing Agreement Warrant. (Incorporated by reference to Exhibit 10.2 of theCompany's Current Report on Form 8-K filed on December 19, 2024.) 19 Regis Corporation Statement of Policy on Insider Trading. (Incorporated by reference to Exhibit 19 of the Company’sAnnual Report on Form 10-K filed on September 3, 2025.) 21 List of Subsidiaries of the Company. 97
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Table of Contents 23 Consent of Grant Thornton LLP. 31.1 Chief Executive Officer of the Company: Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. 31.2 Executive Vice President and Chief Financial Officer of the Company: Certification pursuant to Section 302 of theSarbanes-Oxley Act of 2002. 32 Chief Executive Officer and Chief Financial Officer of the Company: Certification pursuant to Section 906 of theSarbanes-Oxley Act of 2002. 97 Regis Corporation Mandatory Compensation Recovery Policy. (Incorporated by reference to Exhibit 97 of theCompany’s Annual Report on Form 10-K filed on August 28, 2024.) 101 The following financial information from Regis Corporation's Annual Report on Form 10-K for the year endedJune 30, 2026, formatted in Inline Xtensible Business Reporting Language (iXBRL) and filed electronically herewith:(i) the Consolidated Balance Sheets; (ii) the Consolidated Statements of Operations; (iii) the Consolidated Statementsof Comprehensive Income; (iv) the Consolidated Statements of Shareholders' Equity (Deficit); (v) the ConsolidatedStatements of Cash Flows; and (vi) the Notes to the Consolidated Financial Statements. 101.INS XBRL Instance Document 101.SCH XBRL Taxonomy Extension Schema 101.CAL XBRL Taxonomy Extension Calculation Linkbase 101.LAB XBRL Taxonomy Extension Label Linkbase 101.PRE XBRL Taxonomy Extension Presentation Linkbase 101.DEF XBRL Taxonomy Extension Definition Linkbase 104 The cover page from Regis Corporation's Annual Report on Form 10-K for the year ended June 30, 2026, formatted iniXBRL (included as Exhibit 101). _______________________________________________________________________________ (*) Management contract, compensatory plan or arrangement required to be filed as an exhibit to the Company's Report on Form 10-K. Item 16. Form 10-K Summary Not applicable. 98
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Table of Contents SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. REGIS CORPORATION By /s/ SUSAN LINTONSMITH Susan Lintonsmith,President and Chief Executive Officer(Principal Executive Officer) By /s/ KERSTEN D. ZUPFER Kersten D. Zupfer,Executive Vice President and Chief Financial Officer(Principal Financial and Accounting Officer) Date: September 1, 2026 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated. /s/ NANCY BENACCI Nancy Benacci, Chairman of the Board of Directors Date: September 1, 2026 /s/ ANDREW ALFANO Andrew Alfano,Director Date: September 1, 2026 /s/ LOCKIE ANDREWS Lockie Andrews,Director Date: September 1, 2026 /s/ WILLIAM CHARTERS William Charters,Director Date: September 1, 2026 /s/ SUSAN LINTONSMITH Susan Lintonsmith,Director Date: September 1, 2026 /s/ MICHAEL MANSBACH Michael Mansbach,Director Date: September 1, 2026 /s/ MICHAEL J. MERRIMAN Michael J. Merriman,Director Date: September 1, 2026 99
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REGIS CORPORATION RESTRICTED STOCK UNIT AGREEMENT (Nonemployee Director) THIS RESTRICTED STOCK UNIT AGREEMENT (the “Agreement”), dated as of ___________ __, 20__ (the “Grant Date”), is between Regis Corporation, a Minnesota corporation (the “Company”), and ___________, a nonemployee director of the Company (the “Director”). WHEREAS, the Company desires to compensate the Director for service on the Board by granting the Director an award of Restricted Stock Units which afford the Director an opportunity to receive shares of the Company's Common Stock under the Regis Corporation Amended and Restated 2018 Long Term Incentive Plan (as may be amended from time to time, the “Plan”); and WHEREAS, the Committee has duly made all determinations necessary or appropriate for the grant of the Restricted Stock Units hereunder (the “Award”). NOW, THEREFORE, in consideration of the premises and mutual covenants set forth and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto have agreed, and do hereby agree, as follows: 1. Definitions. Any capitalized term that is used but not defined in this Agreement shall have the meaning assigned to it in the Plan as it currently exists or as it is amended in the future. 2. Grant of Restricted Stock Units, Term and Vesting. (a) Subject to the terms and conditions of the Plan and this Agreement, the Company hereby grants to the Director _____________ (______) Restricted Stock Units (the “RSUs”). The RSUs will be credited to an account in the Director’s name maintained by the Company. This account shall be unfunded and maintained for book-keeping purposes only, with each RSU representing an unfunded and unsecured promise by the Company to issue to the Director one share of Common Stock in settlement of a vested RSU. (b) Subject to Section 3, the RSUs shall vest 100% on the earlier of (i) the first anniversary of the Grant Date and (ii) the next annual shareholder meeting following the Grant Date, provided the Director has not had a Separation from Service prior to such vesting date (the “Vesting Date”). 3. Separation From Service Prior to Vesting. (a) Unless vesting is otherwise accelerated in accordance with the terms of this Agreement or the Plan, if the Director incurs a Separation from Service (i) by the Company for DMS_US.367830824.5 DMS_US.367830824.7
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any reason or no reason (other than due to death or Disability) or (ii) by the Director for any reason or no reason, in each case, on or before the Vesting Date, a prorated portion of the RSUs shall become vested determined by multiplying the number of RSUs set forth in Section 2(a) by (A) the number of full months as of the date of the Director’s Separation from Service that have elapsed since the date of the annual shareholder meeting immediately preceding the Grant Date, divided by (B) 12. (b) Notwithstanding Section 3(a) or anything in this Agreement or the Plan to the contrary, (i) upon a Change in Control or (ii) upon the Director’s Separation from Service due to death or Disability, any unvested RSUs will automatically become fully vested. The terms “Disability” and “Change in Control” shall have the meanings set out in the Plan. Notwithstanding Section 4, for purposes of settlement of any RSUs that vest as a result of the application of this Section 3(b), the Company shall settle each vested RSU, as soon as practicable, but in no event later than sixty (60) days after the first to occur of (A) the Director’s “disability” under Section 409A of the Code, (B) a Change in Control that constitutes a “change in the ownership or effective control of the corporation, or a change in the ownership of a substantial portion of the assets of the corporation” under Section 409A of the Code, as applicable, (C) the Director’s Separation from Service, and (D) the Director’s death. 4. Settlement of RSUs. (a) Upon the Director’s Separation from Service (or earlier as provided in Section 3(b)), the Company shall, as soon as practicable, but in no event later than sixty (60) days following the date of the Separation from Service (the “Settlement Date”), cause to be issued and delivered to the Director one share of Common Stock in payment and settlement of each vested RSU or an amount in cash equal to the product obtained by multiplying the Fair Market Value of a share of Common Stock on the Settlement Date by the number of vested RSUs. Delivery of the shares of Common Stock, if applicable, shall be effected by the delivery of a stock certificate evidencing the shares, by an appropriate entry in the stock register maintained by the Company’s transfer agent with a notice of issuance provided to the Director, or by the electronic delivery of the shares to a brokerage account designated by the Director, and shall be subject to compliance with all applicable legal requirements, including compliance with the requirements of applicable federal and state securities laws, and shall be in complete satisfaction and settlement of such vested RSUs. Upon settlement of the RSUs, the Director will obtain, with respect to the shares of Common Stock received in such settlement, if applicable, full voting and other rights as a shareholder of the Company. (b) If the Director is a “specified employee” of the Company, as defined in Treas. Reg. §1.409A-1(i), at the Director’s Separation from Service, the Settlement Date shall be delayed until the first day of the seventh month following the Director’s Separation from Service, to the extent such delay is required under Section 409A of the Code or the regulations thereunder. 5. Shareholder Rights. DMS_US.367830824.5 DMS_US.367830824.7
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The RSUs subject to this Award do not entitle the Director to any rights of a holder of the Company’s Common Stock. The Director will not have any of the rights of a shareholder of the Company in connection with the grant of the RSUs unless and until shares of Common Stock, if applicable, are issued to the Director in settlement of the RSUs as provided in Section 3(b) and Section 4(a). 6. Dividend Equivalents. If a dividend is declared and paid by the Company with respect to its Common Stock prior to the Settlement Date, the Director will be credited as of the applicable dividend payment date with an additional number of RSUs (the “Dividend RSUs”) equal to (i) the total dividend the Director would have received if the number of RSUs credited to the Director under this Agreement as of the related dividend payment record date (including any previously credited Dividend RSUs) had been actual shares of Common Stock, divided by (ii) the Fair Market Value of a share of Common Stock as of the applicable dividend payment date (with the quotient rounded down to the nearest whole number)). Once credited to the Director’s account, Dividend RSUs will be considered RSUs for all purposes of this Agreement. For purposes of clarity, if any of the RSUs are forfeited by the Director pursuant to the terms of this Agreement, then the Director shall also forfeit the Dividend RSUs, if any, accrued with respect to such forfeited RSUs. 7. Restrictions on Transferability. Until the Settlement Date, the RSUs may not be sold, transferred, pledged, assigned, or otherwise alienated at any time. Any attempt to do so contrary to the provisions hereof shall be null and void. 8. Administration. The Plan and this Award of RSUs are administered by the Committee, in accordance with the terms and conditions of the Plan. Actions and decisions made by the Committee in accordance with this authority shall be effectuated by the Company. 9. Plan and Agreement. The Director hereby acknowledges receipt of a copy of the Plan. The grant of RSUs is made pursuant to the Plan, as in effect on the date hereof, and is subject to all the terms and conditions of the Plan, as the same may be amended or restated from time to time, and of this Agreement. The interpretation and construction by the Committee of the Plan, this Agreement, and such rules and regulations as may be adopted by the Committee for the purpose of administering the Plan, shall be final and binding upon the Director. The Company shall, upon written request therefore, send a copy of the Plan, in its then current form, to the Director or any other person or entity then entitled to receive the shares of Common Stock to be issued in settlement of the RSUs. DMS_US.367830824.5 DMS_US.367830824.7
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10. No Employment Rights. No provision of this Agreement nor the Award evidenced hereby shall give the Director any right to, or to continue in, service on the Board. In addition, no provision of this Agreement shall give the Director any right to, or to the extent the Director becomes an employee of the Company following the Grant Date, to continue in, the employ of the Company, any Affiliate or any other entity, or create any inference as to the length of employment of the Director, or affect the right of the Company (or any Affiliate or any other entity) to terminate the employment of the Director (with or without Cause), or give the Director any right to participate in any employee welfare or benefit plan or other program of the Company, any Affiliate or any other entity. 11. Requirements of Law and No Disclosure Rights. The Company shall not be required to issue any shares of Common Stock in settlement of RSUs granted under this Agreement if the issuance of such shares shall constitute a violation of any provision of any applicable law or regulation of any governmental authority. The Company shall have no duty or obligation beyond those imposed by applicable securities laws generally to affirmatively disclose to the Director or a Representative, and the Director or Representative shall have no right to be advised of, any material non-public information regarding the Company or an Affiliate at any time prior to, upon or in connection with the issuance of the shares of Common Stock in settlement of the RSUs granted under this Agreement. 12. Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Minnesota, without giving effect to the choice of law principles thereof, unless applicable law prohibits this choice of law provision. 13. Entire Agreement. This Agreement and the Plan constitute the entire obligation of the parties hereto with respect to the subject matter hereof and shall supersede any prior expressions of intent or understanding with respect to this transaction. 14. Amendment. Any amendment to this Agreement shall be in writing and signed on behalf of the Company, and shall comply with the terms and conditions of the Plan. 15. Waiver; Cumulative Rights. The failure or delay of either party to require performance by the other party of any provision hereof shall not affect its right to require performance of such provision unless and DMS_US.367830824.5 DMS_US.367830824.7
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until such performance has been waived in writing. Each and every right hereunder is cumulative and may be exercised in part or in whole from time to time. 16. Counterparts. This Agreement may be signed in two (2) counterparts, each of which shall be an original, but both of which shall constitute but one and the same instrument. 17. Headings. The headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement. 18. Severability. If for any reason any provision of this Agreement shall be determined to be invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision hereof, and this Agreement shall be construed as if such invalid or unenforceable provision were omitted, and all other provisions shall remain in full force and effect. 19. Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon each successor and assign of the Company, and upon the heirs, legal representatives and successors of the Director. 20. Code Section 409A. The Plan, this Agreement and Awards are intended to comply with the applicable requirements of Code Section 409A and shall be limited, construed, and interpreted in accordance with such intent. The Director shall not have the right to designate the timing of settlement of the RSUs. If the settlement period spans two different calendar years, settlement shall occur during the later calendar year. DMS_US.367830824.5 DMS_US.367830824.7
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IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an officer thereunto duly authorized, and the Director has executed this Agreement, effective for all purposes provided above, all as of the day and year first above written. REGIS CORPORATION By:__________________________________ Name:________________________________ Title:_________________________________ DIRECTOR [Name] DMS_US.367830824.5 DMS_US.367830824.7
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REGIS CORPORATION RESTRICTED STOCK UNIT AGREEMENT THIS RESTRICTED STOCK UNIT AGREEMENT (the “Agreement”), dated as of ___________ __, 20__ (the “Grant Date”), is between Regis Corporation, a Minnesota corporation (the “Company”), and ___________ (the “Participant”). WHEREAS, the Participant is a valued and trusted employee of the Company and the Company desires to grant the Participant an award of Restricted Stock Units which afford the Participant an opportunity to receive shares of the Company's Common Stock under the Regis Corporation Amended and Restated 2018 Long Term Incentive Plan (as may be amended from time to time, the “Plan”); and WHEREAS, the Committee has duly made all determinations necessary or appropriate for the grant of the Restricted Stock Units hereunder (the “Award”). NOW, THEREFORE, in consideration of the premises and mutual covenants set forth and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto have agreed, and do hereby agree, as follows: 1. Definitions. Any capitalized term that is used but not defined in this Agreement shall have the meaning assigned to it in the Plan as it currently exists or as it is amended in the future. 2. Grant of Restricted Stock Units, Term and Vesting. (a) Subject to the terms and conditions of the Plan and this Agreement, the Company hereby grants to the Participant _____________ (______) Restricted Stock Units (the “RSUs”). The RSUs will be credited to an account in the Participant’s name maintained by the Company. This account shall be unfunded and maintained for book-keeping purposes only, with each RSU representing an unfunded and unsecured promise by the Company to issue to the Participant one share of Common Stock in settlement of a vested RSU. (b) One-third of the RSUs will vest on each of the first, second and third anniversaries of the Grant Date. To the extent that one-third of the RSUs is not a whole number, any fractional RSU that would otherwise be scheduled to vest on the first two scheduled vesting dates will be disregarded, and the number of RSUs scheduled to vest on the third scheduled vesting date will be adjusted accordingly. (c) Notwithstanding Section 2(b), if the Participant experiences a (i) Qualifying Separation from Service; or (ii) Separation from Service due to death or Disability, then 100% of the unvested RSUs immediately shall vest. (d) Notwithstanding Section 2(b), if a Participant experiences a Separation from Service due to Retirement on or after the first anniversary of the Grant Date, then the Applicable
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Number of RSUs immediately shall vest. For purposes of the immediately preceding sentence, “Applicable Number of RSUs” means the number of RSUs equal to an amount determined by multiplying the number of RSUs that are scheduled to vest on the first scheduled vesting date following the date of such Retirement (the “Next Vesting Date”) by a fraction whose numerator is the number of days between the last scheduled vesting date prior to the Retirement and the date of the Retirement, and whose denominator is the number of days between the last scheduled vesting date prior to the Retirement and the Next Vesting Date. For purposes of this Agreement, “Retirement” means any Separation of Service (other than by the Company for Cause or due to death or Disability) at or after age sixty-two (62) or at or after age fifty-five (55) with fifteen (15) or more years of continuous service to the Company and its Affiliates. 3. Forfeiture of Unvested RSUs. Subject to any accelerated vesting under Sections 2(c) or 2(d) or Article XI of the Plan, and any exercise of the Committee’s discretion under Section 8.3(2) of the Plan, if the Participant experiences a Separation from Service, any unvested RSUs shall be forfeited and the Participant shall have no further interest in, or right to receive shares of Common Stock in settlement of, such RSUs. 4. Settlement of RSUs. Subject to Section 21, the Company shall, as soon as practicable (but in no event later than sixty (60) days following the date on which the RSUs vest), cause to be issued and delivered to the Participant one share of Common Stock in payment and settlement of each vested RSU. Delivery of the shares of Common Stock shall be effected by the delivery of a stock certificate evidencing the shares, by an appropriate entry in the stock register maintained by the Company’s transfer agent with a notice of issuance provided to the Participant, or by the electronic delivery of the shares to a brokerage account designated by the Participant, and shall be subject to the tax withholding provisions of Section 8 and compliance with all applicable legal requirements, including compliance with the requirements of applicable federal and state securities laws, and shall be in complete satisfaction and settlement of such vested RSUs. Upon settlement of the RSUs, the Participant will obtain, with respect to the shares of Common Stock received in such settlement, full voting and other rights as a shareholder of the Company. 5. Shareholder Rights. The RSUs subject to this Award do not entitle the Participant to any rights of a holder of the Company’s Common Stock. The Participant will not have any of the rights of a shareholder of the Company in connection with the grant of the RSUs unless and until shares of Common Stock are issued to the Participant in settlement of the RSUs as provided in Section 4. 6. Dividend Equivalents. If a cash dividend is declared and paid by the Company with respect to its Common Stock, the Participant will be credited as of the applicable dividend payment date with an additional number of RSUs (the “Dividend RSUs”) equal to (i) the total cash dividend the
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Participant would have received if the number of RSUs credited to the Participant under this Agreement as of the related dividend payment record date (including any previously credited Dividend RSUs) had been actual shares of Common Stock, divided by (ii) the Fair Market Value of a share of Common Stock as of the applicable dividend payment date (with the quotient rounded down to the nearest whole number). Once credited to the Participant’s account, Dividend RSUs will be considered RSUs for all purposes of this Agreement. For purposes of clarity, if any of the RSUs are forfeited by the Participant pursuant to the terms of this Agreement, then the Participant shall also forfeit the Dividend RSUs, if any, accrued with respect to such forfeited RSUs. 7. Restrictions on Transferability. Neither the Award evidenced by this Agreement nor the RSUs may be sold, transferred, pledged, assigned, or otherwise alienated at any time, other than by will or the laws of descent and distribution. Any attempt to do so contrary to the provisions hereof shall be null and void. 8. Tax Consequences and Payment of Withholding Taxes. Neither the Company nor any of its Affiliates shall be liable or responsible in any way for the tax consequences relating to the award of RSUs, their vesting and the settlement of vested RSUs in shares of Common Stock. The Participant agrees to determine and be responsible for any and all tax consequences to the Participant relating to the Award, vesting and settlement of RSUs hereunder. If the Company is obligated to withhold an amount on account of any tax imposed as a result of the grant, vesting or settlement of the RSUs, the provisions of Section 13.4 of the Plan regarding the satisfaction of tax withholding obligations shall apply (including any required payments by the Participant). 9. Administration. The Plan and this Award of RSUs are administered by the Committee, in accordance with the terms and conditions of the Plan. Actions and decisions made by the Committee in accordance with this authority shall be effectuated by the Company. 10. Plan and Agreement. The Participant hereby acknowledges receipt of a copy of the Plan. The grant of RSUs is made pursuant to the Plan, as in effect on the date hereof, and is subject to all the terms and conditions of the Plan, as the same may be amended or restated from time to time, and of this Agreement. If there is any conflict between the provisions of this Agreement and the Plan, the provisions of the Plan will govern. The interpretation and construction by the Committee of the Plan, this Agreement, and such rules and regulations as may be adopted by the Committee for the purpose of administering the Plan, shall be final and binding upon the Participant. The Company shall, upon written request therefore, send a copy of the Plan, in its then current form, to the Participant or any other person or entity then entitled to receive the shares of Common Stock to be issued in settlement of the RSUs.
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11. No Employment Rights. Neither this Agreement nor the Award evidenced hereby shall give the Participant any right to continue in the employ of the Company, any Affiliate or any other entity, or create any inference as to the length of employment of the Participant, or affect the right of the Company (or any Affiliate or any other entity) to terminate the employment of the Participant (with or without Cause), or give the Participant any right to participate in any employee welfare or benefit plan or other program of the Company, any Affiliate or any other entity. 12. Requirements of Law and No Disclosure Rights. The Company shall not be required to issue any shares of Common Stock in settlement of RSUs granted under this Agreement if the issuance of such shares shall constitute a violation of any provision of any applicable law or regulation of any governmental authority. The Company shall have no duty or obligation beyond those imposed by applicable securities laws generally to affirmatively disclose to the Participant or a Representative, and the Participant or Representative shall have no right to be advised of, any material non-public information regarding the Company or an Affiliate at any time prior to, upon or in connection with the issuance of the shares of Common Stock in settlement of the RSUs granted under this Agreement. 13. Governing Law. This Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Minnesota, without giving effect to the choice of law principles thereof, unless applicable law prohibits this choice of law provision. 14. Entire Agreement. This Agreement and the Plan constitute the entire obligation of the parties hereto with respect to the subject matter hereof and shall supersede any prior expressions of intent or understanding with respect to this transaction. 15. Amendment. Any amendment to this Agreement shall be in writing and signed on behalf of the Company, and shall comply with the terms and conditions of the Plan. 16. Waiver; Cumulative Rights. The failure or delay of either party to require performance by the other party of any provision hereof shall not affect its right to require performance of such provision unless and until such performance has been waived in writing. Each and every right hereunder is cumulative and may be exercised in part or in whole from time to time. 17. Counterparts. While Participant is employed in Colorado or Washington, this Section 13 does not apply. 1 1
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This Agreement may be signed in two (2) counterparts, each of which shall be an original, but both of which shall constitute but one and the same instrument. 18. Headings. The headings contained in this Agreement are for reference purposes only and shall not affect the meaning or interpretation of this Agreement. 19. Severability. If for any reason any provision of this Agreement shall be determined to be invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision hereof, and this Agreement shall be construed as if such invalid or unenforceable provision were omitted, and all other provisions shall remain in full force and effect. 20. Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon each successor and assign of the Company, and upon the heirs, legal representatives and successors of the Participant. 21. Code Section 409A. The Plan, this Agreement and Awards are intended to comply with or be exempt from the applicable requirements of Code Section 409A and shall be limited, construed, and interpreted in accordance with such intent. Notwithstanding anything to the contrary in this Agreement, including Section 4, if any amount shall be payable with respect to this Award as a result of the Participant’s Separation from Service at such time as the Participant is a “specified employee” (as such term is defined in regulations promulgated under Code Section 409A) and such amount is subject to the provisions of Code Section 409A, then no payment shall be made, except as permitted under Code Section 409A, prior to the first day of the seventh calendar month beginning after the Participant’s separation from service (or the date of Participant’s earlier death), or as soon as administratively practicable thereafter. Participant shall not have the right to designate the timing of settlement of the RSUs. If the settlement period spans two different calendar years, settlement shall occur during the later calendar year. 22. Forfeiture of Award. (a) Forfeiture Conditions. Notwithstanding anything to the contrary in this Agreement, if the Participant ceases to be employee or service provider of the Company or its Affiliates because their employment or service is terminated for Cause, or if, during the term of the Participant’s employment or service with the Company and its Affiliates and for Executive Vice President and Senior Vice President: one year / Others: six months after such employment ends (the “Restricted Period”), the Participant breaches any of the restrictive covenants contained in Section 22(b) (provided that the restrictions contained in Section 22(b)(2) will only apply during the term of the Participant’s employment or service with the Company and its Affiliates),
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then (i) the Participant shall immediately forfeit this Award and any right to receive shares of Common Stock that have not yet been issued pursuant to Section 4, and (ii) with respect to shares of Common Stock that have been issued pursuant to this Award, either (A) the Participant shall return such shares of Common Stock to the Company, or (B) the Participant shall pay to the Company in cash an amount equal to the Fair Market Value of such shares of Common Stock as of the applicable vesting date. (b) Restrictive Covenants. (1) Non-Disclosure and Return of Confidential Information. A. Definition of Confidential Information. “Confidential Information” means any confidential, proprietary, nonpublic or secret knowledge or information of the Company or any of its Affiliates (as defined below) that the Participant has acquired or shall acquire during the Participant’s employment with the Company or any of its Affiliates, whether developed by the Participant or by others, concerning (i) any trade secrets, (ii) any confidential, proprietary, nonpublic or secret design, process, trade practice, formula, plan, model, specifications, device or material (whether or not patented or patentable) directly or indirectly useful in any aspect of the business of the Company or any of its Affiliates, (iii) any customer or supplier list of the Company or any of its Affiliates, (iv) any confidential, proprietary, nonpublic or secret development or research work of the Company or any of its Affiliates, (v) any strategic or other business, marketing or sales plan of the Company or any of its Affiliates, (vi) any financial data or plan respecting the Company or any of its Affiliates, including any marketing plans, accounting methods, profit margins, and costs, (vii) any other confidential, nonpublic or proprietary information or secret aspects of the business of the Company or any of its Affiliates, or (viii) any other nonpublic, confidential or proprietary information of third parties that the Participant or the Company or any of its Affiliates receives from such third parties with the expectation that such information will be kept confidential. B. Acknowledgement. The Participant acknowledges that, in the performance of the Participant’s duties to the Company, the Participant has received and will receive Confidential Information. The Participant acknowledges that the above described Confidential Information constitutes a unique and valuable asset of the Company and its Affiliates and represents a substantial investment of time and expense by the Company and its Affiliates, and that any disclosure or other use of such knowledge or information other than for the sole benefit of the Company would be wrongful and would cause irreparable harm to the Company and its Affiliates C. Duty Not to Disclose. The Participant agrees that, at any time during or after the term of the Participant’s employment or service with the Company and its Affiliates, the Participant will not divulge, disclose, reveal or communicate to any business entity or other person such Confidential Information the Participant may obtain during the Participant’s employment or service concerning any
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matters affecting or relating to the Company’s business as long as such Confidential Information is not publicly available. D. Return of Property. The Participant also agrees that upon termination of employment or service with the Company or sooner (if it is required by the Company), the Participant will promptly return to the Company all original and copies of any document or materials of any kind (including those in electronic formats) acquired or coming to the Participant’s knowledge and custody in connection with the Participant’s employment or service with the Company, whether prepared by the Participant, the Company or others. This obligation will continue indefinitely. E. Exceptions. Notwithstanding anything in this Agreement to the contrary, nothing in this Agreement shall prohibit or restrict the Participant from lawfully (i) initiating communications directly with, cooperating with, providing information to, causing information to be provided to, or otherwise assisting in an investigation by any governmental or regulatory agency, entity, or official(s) (collectively, “Governmental Authorities”) regarding a possible violation of any law; (ii) responding to any inquiry or legal process directed to the Participant individually from any such Governmental Authorities; (iii) testifying, participating or otherwise assisting in an action or proceeding by any such Governmental Authorities relating to a possible violation of law; or (iv) making any other disclosures that are protected under the whistleblower provisions of any applicable law. In addition, the foregoing obligations of confidentiality shall not apply to any Confidential Information to the extent that it is now or subsequently becomes generally publicly known or generally known in the industry in which the Company operates in the form in which it was obtained from the Company. F. Defend Trade Secrets Act. Additionally, pursuant to the federal Defend Trade Secrets Act of 2016, the Participant shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that: (i) is made (A) in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made to the Participant’s attorney in relation to a lawsuit for retaliation against the Participant for reporting a suspected violation of law; or (iii) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal. Nor does this Agreement require the Participant to obtain prior authorization from the Company before engaging in any conduct described in this Section 22(b), or to notify the Company that the Participant has engaged in any such conduct. (2) Non-Competition. During the Participant’s term of employment or service with the Company and its Affiliates the Participant agrees it will not engage in any business activity which is competitive with the Company nor work for any company which competes with the Company in the beauty salon industry. Nothing in this Agreement prohibits the Participant from working for a current Company franchisee or becoming a Company franchisee as the Company does not consider its franchisees as competitors. In addition, during the Participant’s
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term of employment or service with the Company and its Affiliates, the Participant agrees that the Participant will not, directly or indirectly, for itself or on behalf of any other, as an individual on the Participant’s account, or as an employee, agent or representative of any person, partnership, firm, corporation, or other entity or as a member of any partnership, or as an officer, employee or shareholder of any corporation, or otherwise: (A) enter into endeavors that are competitive with the business or operations of the Company in the beauty industry; or (B) own an interest in, manage, operate, join, control, lend money or render financial or other assistance to or participate in or be connected with, as an officer, employee, director, partner, member, stockholder (except for passive investments of not more than a one percent (1%) interest in the securities of a publicly held corporation regularly traded on a national securities exchange or in an over-the-counter securities market) consultant, independent contractor, or otherwise, any individual, partnership, firm, corporation or other business organization or entity that engages in a business which competes with the business or operations of the Company in the beauty industry. (3) Non-Solicitation. A. Agreement Not to Solicit Persons. During the Restricted Period, the Participant shall not, directly or indirectly, in any manner or capacity, including without limitation as a proprietor, principal, agent, partner, officer, director, stockholder, employee, member of any association, consultant or otherwise: (i) hire, engage or solicit for employment or other engagement any person who is then an employee or contractor of the Company or any of its Affiliates or who was an employee or service provider of the Company or any of its Affiliates at any time during the six (6) month period immediately preceding the Participant’s termination of employment or service, or (ii) encourage, induce or attempt to induce any person who is then an employee or contractor of the Company or any Affiliate to terminate or alter their employment or other relationship with the Company or otherwise interfere with or disrupt the relationship between the Company or any Affiliate and any employee or contractor of the Company or any Affiliate. General advertising, by newspaper or other medium, of an open employment or consulting position will not constitute solicitation for purposes of this Section 22(b)(3)(A) as long as any person who the Participant is otherwise precluded from hiring, engaging or soliciting under this Section 22(b)(3)(A) is not hired to fill such open position. B. Agreement Not to Solicit Customers. During the Restricted Period, the Participant shall not (except on behalf of the Company), directly or indirectly, in any manner or capacity, including without limitation as a proprietor, principal, agent, partner, officer, director, stockholder, employee, member of any If Participant was employed in North Carolina, Texas, or Wisconsin when Participant’s employment ends for any reason, the restrictions in Section 22(b)(3)(A) shall only apply after Participant’s employment ends for any reason to persons with whom Participant had Material Contact during the then prior twelve (12) months of Participant’s employment with the Company. For the purposes of this Section 22(b)(3)(A), “Material Contact” means direct personal contact between Participant and such other person of Company in the course of the performance of Participant’s job duties on behalf of the Company. 2 2
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association, consultant or otherwise: (i) call on or solicit any customers of the Company, including but not limited to any customers of the Company with which the Participant had contact during the then-prior twenty-four (24) month period or about which the Participant had Confidential Information, for the purpose of marketing or selling any products or services competitive with or otherwise substantially similar to the then-current businesses of the Company, or for the purpose of diverting any business away from the Company; (ii) persuade or attempt to persuade, or induce or attempt to induce, any actual or prospective customer, client, vendor, service provider, supplier, contractor or any other person having business dealings with the Company to cease doing business or otherwise transacting business with the Company or to reduce the amount of business it conducts or will conduct with the Company; (iii) call on or solicit any suppliers or vendors of the Company in any manner adverse to the Company’s business interests; (iv) accept business from any actual or prospective customer, client, vendor, service provider, supplier, contractor or any other person having business dealings with the Company; or (v) otherwise disrupt, damage or interfere in any manner with the relationship between the Company and any of their actual or prospective customers, clients, vendors, service providers, or suppliers. (c) Remedies. The parties expressly agree that the forfeiture and repayment obligations contained in this Section 22 do not constitute the Company’s exclusive remedy for the Participant’s violation of this Section 22. The Participant hereby agrees and acknowledges: (1) that the Company will suffer irreparable harm if the Participant breaches their obligations under this Section 22; and (2) that monetary damages will be inadequate to compensate the Company for such a breach. Therefore, if the Participant breaches any such provisions, then the Company shall be entitled to injunctive relief, in addition to any other remedies at law or equity, to enforce such provisions. The Participant further agrees to waive any requirement for the securing or posting of any bond or other security in connection with the obtaining of any such injunctive or equitable relief. In the event of the Participant’s breach or alleged breach of any of the provisions contained in this section, the Participant and the Company intend that the Company will have the full benefits of the post-termination restrictions contained in Section 22(b) and agree that in any action for specific performance of other equitable relief, the Company shall be entitled to an extension of time of the post-termination restrictions contained in Section 22(b)(3) if necessary to achieve that result. If Participant was employed in North Carolina or Texas when Participant’s employment ends for any reasons, the restrictions in Section 22(b)(3)(B) shall only apply after Participant’s employment ends for any reason to: • Customers or prospective customers Participant serviced, solicited, or contacted in any way during the then prior twelve (12) months of Participant’s employment. • Customers about whom Participant has trade secret information or Confidential Information. • Customers about whom Participant has information that is not available publicly. If Participant was employed in Wisconsin when Participant’s employment ends for any reason, the restrictions in Section 22(b)(3)(B) shall only apply after Participant’s employment ends for any reason to: • Customers or prospective customers Participant serviced, solicited, or contacted in any way during the then prior twelve (12) months of Participant’s employment. • Customers about whom Participant has trade secret information or Confidential Information. • Customers who became customers during Employee's employment with Company. • Customers about whom Participant has information that is not available publicly. 3,4 3 4
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(d) Modification. The parties hereby authorize any court or other tribunal of competent jurisdiction to modify any provision(s) contained in this Section 22 held to be invalid or unenforceable to the extent necessary to permit such provision(s) to be legally enforced to the maximum extent permissible and to then enforce the provision(s) as modified. 23. Compensation Recovery Policy. In addition to the forfeiture provisions set forth in this Agreement, this Award and any compensation associated therewith is subject to forfeiture, recovery by the Company or other action pursuant to any compensation recovery policy adopted by the Board or the Committee at any time, which includes but is not limited to any compensation recovery policy adopted by the Board or the Committee in response to the requirements of Section 10D of the Exchange Act, the U.S. Securities and Exchange Commission’s final rules thereunder, any applicable listing rules or other rules and regulations implementing the foregoing, or as otherwise required by law or stock exchange. This Agreement will be automatically amended to comply with any such compensation recovery policy.
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IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by an officer thereunto duly authorized, and the Participant has executed this Agreement, effective for all purposes provided above, all as of the day and year first above written. REGIS CORPORATION By:__________________________________ Name:________________________________ Title:_________________________________ PARTICIPANT [Name]
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Exhibit No. 21 Regis Corporation List of Subsidiaries Company Name Country or State of Incorporation/Formation The Barbers, Hairstyling for Men & Women, Inc. Minnesota Roosters MGC International LLC Michigan Supercuts, Inc. Delaware Supercuts Corporate Shops, Inc. Delaware RPC Acquisition Corp. Minnesota RPC Corporate Shops, Inc. Minnesota Regis Corp. Minnesota Regis, LLC Minnesota Regis Insurance Group, Inc. Vermont First Choice Haircutters International, LLC Delaware Cutco Acquisition Corp. Minnesota Super C Group, LLC Michigan Roger Merger Subco LLC Delaware Regis Holdings (Canada), Ltd Nova Scotia First Choice Haircutters, Ltd Nova Scotia Magicuts, Ltd Nova Scotia Supercuts UK (Franchise) Ltd United Kingdom Fremont Software, LLC Delaware
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Exhibit No. 23.1 CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM We have issued our report dated September 1, 2026, with respect to the consolidated financial statements included in the Annual Report of Regis Corporation on Form 10-K for the year ended June 30, 2026. We consent to the incorporation by reference of said report in the Registration Statements of Regis Corporation on Forms S-3 (File Nos. 333-125631, 333-116170, 333-102858, 333-100327, 333-87482, 333-72200, 333-57092,333-51094, 333-31874, 333-90809, 333-89279 and 333-78793) and on Forms S-8 (File Nos. 333-293232, 333- 283044, 333-228055, 333-214270, 333-214269, 333-170517, 333-163350, 333-123737 and 333-88938). /s/ GRANT THORNTON LLP Minneapolis, Minnesota September 1, 2026
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Exhibit No. 31.1 CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Susan Lintonsmith, certify that: 1. I have reviewed this annual report on Form 10-K of Regis Corporation; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; 4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c. Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d. Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and 5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s Board of Directors (or persons performing the equivalent functions): a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. September 1, 2026 /s/ Susan Lintonsmith Susan Lintonsmith, President and Chief Executive Officer
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Exhibit No. 31.2 CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 I, Kersten D. Zupfer, certify that: 1. I have reviewed this annual report on Form 10-K of Regis Corporation; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report; 4. The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c. Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d. Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and 5. The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of the Registrant’s Board of Directors (or persons performing the equivalent functions): a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting. September 1, 2026 /s/ Kersten D. Zupfer Kersten D. Zupfer, Executive Vice President and Chief Financial Officer
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Exhibit No. 32 CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Annual Report of Regis Corporation (the Registrant) on Form 10-K for the fiscal year ended June 30, 2026 filed with the Securities and Exchange Commission on the date hereof, Susan Lintonsmith, President and Chief Executive Officer of the Registrant, and Kersten D. Zupfer, Executive Vice President and Chief Financial Officer of the Registrant, each hereby certifies, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that: (1) The Annual Report on Form 10-K fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Annual Report on Form 10-K fairly presents, in all material respects, the financial condition and results of operations of the Registrant. September 1, 2026 /s/ Susan Lintonsmith Susan Lintonsmith, President and Chief Executive Officer September 1, 2026 /s/ Kersten D. Zupfer Kersten D. Zupfer, Executive Vice President and Chief Financial Officer