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olivLaw · US equity research

Regis Corporation RGS

Services-Personal Services · SIC 7200 · Vertical: Services-Personal Services (SIC 7200)

31.77USD+9.10% · 1 dayClose 04 Nov 2026

Regis Corporation franchises and operates hair salons, mainly under the Supercuts brand, with a predominantly franchised model. Consolidated revenue reached 224.5 million USD in fiscal 2026, and the company's current challenge is shifting toward a more traffic-driven chain with cheaper debt.

At the close of 04 Nov 2026, Regis Corporation (RGS) stock was 31.77 USD (+9.10% on the day), with market capitalisation 79.4 m USD, P/E 13.2 on diluted EPS of 2.41 USD over the last 12 months, dividend yield 0.00%, beta 0.77, 52-week range 19.47–31.77 USD. Latest reported quarter (Q4 2026): revenue of 56.0 m USD (−7.3% YoY), net income of 4.4 m USD (−96.2% YoY), diluted EPS 1.51 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
79.4 m USD
shares as of 25 Aug 2026
P/E (TTM)
13.2
Diluted EPS TTM 2.41 · TTM to 30 Jun 2026
E/P (TTM)
7.59%
TTM to 30 Jun 2026
Dividend yield
0.00%
DPS 12m 0.00
Beta (2y)
0.77
Volatility (1y) 40%
52-week range
19.4731.77

Price history

Loading chart…

Technical reading

RSI (14)
71.5
overbought (≥ 70)
Bollinger (20, 2)
28.24 – 30.64
above the upper band · %B 1.47 · band width 8.2%
SMA 50 / 200
28.65 / 26.62
uptrend (price > SMA50 > SMA200)
MACD (12, 26, 9)
0.41 / 0.32
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+8.5%−2.0%+10.5 pp—
3 months+15.7%−2.2%+17.8 pp—
6 months+18.3%+4.3%+14.1 pp—
Year to date+14.5%+10.6%+3.9 pp—
1 year+8.2%+10.5%−2.2 pp−19.1%
3 years+164.8%+73.7%+91.1 pp−16.0%
5 years−42.4%+61.7%−104.2 pp—
Max drawdown (1y)
−34.8%
10 Dec 2025 → 09 Mar 2026
Max drawdown (5y)
−94.2%
15 Nov 2021 → 06 Jun 2024
Compound annual growth (5y)
−10.5%
S&P 500 +10.1%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q4 2026 · 30 Jun 2026

Revenue
56.0 m USD
−7.3% YoY
Net income
4.4 m USD
−96.2% YoY
Diluted EPS
1.51
−95.2% YoY
net / operating
7.8% / 11.8%

Quarterly margins

Quarterly statements · USD

Fiscal yearQ1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26Q4 '26
Revenue46.1 m46.7 m57.0 m60.4 m59.0 m57.1 m52.4 m56.0 m
Operating income2.1 m5.5 m5.0 m7.3 m5.9 m6.2 m5.7 m6.6 m
Depreciation & amortisation425.0 k428.0 k ≈743.0 k ≈1.3 m758.0 k790.0 k ≈896.0 k ≈1.4 m
Interest expense4.8 m4.8 m5.1 m5.5 m5.3 m5.3 m5.0 m5.1 m
Pre-tax income-2.0 m342.0 k249.0 k3.0 m1.9 m1.5 m893.0 k1.6 m
Income tax-225.0 k136.0 k-1.0 k-115.4 m536.0 k1.0 m158.0 k-2.8 m
Net income-853.0 k7.6 m250.0 k116.5 m1.4 m456.0 k735.0 k4.4 m
Diluted EPS-0.362.710.0831.71 ≈0.490.160.261.51 ≈
Operating cash flow-1.3 m2.1 m ≈6.2 m ≈6.8 m2.3 m1.7 m ≈5.0 m ≈4.2 m
Capex16.0 k428.0 k ≈325.0 k ≈526.0 k395.0 k772.0 k ≈216.0 k ≈590.0 k

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 69 percentile of its own 13-quarter history (min 0.5, median 0.8, max 6,780.0; quarters with earnings only).

Fiscal years

Fiscal year20192020⚠ 202120222023202420252026
Revenue1.1 bn669.7 m411.7 m276.0 m233.3 m203.0 m210.1 m224.5 m
Revenue YoY−13.5%−37.4%—−33.0%−15.5%−13.0%+3.5%+6.8%
Net income-14.2 m-171.4 m-113.3 m-85.9 m-7.4 m91.1 m123.5 m6.9 m
Net income YoY−321.0%unavailable—unavailableunavailableunavailable+35.7%−94.4%
Diluted EPS-0.34-4.77-3.15-39.40-3.1838.3446.102.41
Diluted EPS YoY−342.9%unavailable—unavailableunavailableunavailable+20.2%−94.8%
net %-1.3%-25.6%-27.5%-31.1%-3.2%44.9%58.8%3.1%
Free cash flow-49.1 m-123.9 m-111.4 m-44.0 m-8.4 m-2.4 m12.4 m11.1 m

The series breaks before 2021: earlier years come from the original reports of the issuer of that time, later years from a subsequent filing that restated the perimeter (a separation, discontinued operations). The year-on-year change across the break is not shown.

Reported results vs expectations

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Balance sheet & financial health

Fiscal year 2026 · 30 Jun 2026

Cash
26.0 m USD
Financial debt
117.1 m USD
Net debt
91.1 m USD
Equity
193.8 m USD
Total assets
547.2 m USD
Debt / equity
0.60x
Current ratio
0.62x
ROE
3.7%
ROA
1.2%
FCF margin
5.0%

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2024
203.0 m
2025
210.1 m
2026
224.5 m

SEC (XBRL)· 01 Sept 2026verified

Operating income
2024
20.9 m
2025
19.9 m
2026
24.4 m

SEC (XBRL)· 01 Sept 2026verified

Depreciation & amortisation
2024
3.4 m
2025
2.9 m
2026
3.9 m

SEC (XBRL)· 01 Sept 2026verified

EBITDA
2024
24.3 m ≈
2025
22.8 m ≈
2026
28.3 m ≈

SEC (XBRL)· 01 Sept 2026derived

Interest expense
2024
25.4 m
2025
20.3 m
2026
20.7 m

SEC (XBRL)· 01 Sept 2026verified

Pre-tax income
2024
89.9 m
2025
1.5 m
2026
5.9 m

SEC (XBRL)· 01 Sept 2026verified

Income tax
2024
869.0 k
2025
-115.5 m
2026
-1.1 m

SEC (XBRL)· 01 Sept 2026verified

Net income
2024
91.1 m
2025
123.5 m
2026
6.9 m

SEC (XBRL)· 01 Sept 2026verified

Diluted EPS
2024
38.34
2025
46.10
2026
2.41

SEC (XBRL)· 01 Sept 2026verified

Weighted average diluted shares
2024
2.4 m
2025
2.7 m
2026
2.9 m

SEC (XBRL)· 01 Sept 2026verified

Balance sheet · USD

Cash
2024
10.1 m
2025
17.0 m
2026
26.0 m

SEC (XBRL)· 01 Sept 2026verified

Receivables
2024
9.4 m
2025
9.5 m
2026
9.3 m

SEC (XBRL)· 01 Sept 2026verified

Inventories
2024
818.0 k
2025
2.8 m
2026
2.5 m

SEC (XBRL)· 01 Sept 2026verified

Current assets
2024
42.1 m
2025
50.5 m
2026
57.4 m

SEC (XBRL)· 01 Sept 2026verified

Property, plant & equipment, net
2024
3.7 m
2025
10.1 m
2026
9.3 m

SEC (XBRL)· 01 Sept 2026verified

Goodwill
2024
173.1 m
2025
183.4 m
2026
182.7 m

SEC (XBRL)· 01 Sept 2026verified

Intangibles (excl. goodwill)
2024
2.4 m
2025
5.8 m
2026
4.7 m

SEC (XBRL)· 01 Sept 2026verified

Total assets
2024
530.5 m
2025
599.0 m
2026
547.2 m

SEC (XBRL)· 01 Sept 2026verified

Accounts payable
2024
12.7 m
2025
20.8 m
2026
19.6 m

SEC (XBRL)· 01 Sept 2026verified

Short-term debt
2024
0
2025
1.1 m
2026
3.0 m

SEC (XBRL)· 01 Sept 2026verified

Long-term debt
2024
99.5 m
2025
109.7 m
2026
114.1 m

SEC (XBRL)· 01 Sept 2026verified

Current liabilities
2024
103.5 m
2025
101.7 m
2026
91.9 m

SEC (XBRL)· 01 Sept 2026verified

Total liabilities
2024
473.7 m
2025
413.3 m
2026
353.4 m

SEC (XBRL)· 01 Sept 2026verified

Equity
2024
56.8 m
2025
185.6 m †
2026
193.8 m †

SEC (XBRL)· 01 Sept 2026verified

Cash flow · USD

Operating cash flow
2024
-2.0 m
2025
13.7 m
2026
13.1 m

SEC (XBRL)· 01 Sept 2026verified

Capex
2024
376.0 k
2025
1.3 m
2026
2.0 m

SEC (XBRL)· 01 Sept 2026verified

Free cash flow
2024
-2.4 m ≈
2025
12.4 m ≈
2026
11.1 m ≈

SEC (XBRL)· 01 Sept 2026derived

Investing cash flow
2024
1.6 m
2025
-11.5 m
2026
-2.0 m

SEC (XBRL)· 01 Sept 2026verified

Financing cash flow
2024
8.4 m
2025
3.6 m
2026
-2.3 m

SEC (XBRL)· 01 Sept 2026verified

Share repurchases
2024
—
2025
—
2026
—

SEC (XBRL)· 26 Aug 2021verified

Computed indicators

Growth

Revenue growth (YoY)
6.8%
computed by olivLawFY 2026
Revenue CAGR 3Y
-1.3%
computed by olivLawFY 2023 → FY 2026
Revenue CAGR 5Y
-11.4%
computed by olivLawFY 2021 → FY 2026
EBIT growth (YoY)
22.6%
computed by olivLawFY 2026
Net income growth (YoY)
-94.4%
computed by olivLawFY 2026
Net income CAGR 3Y
unavailable
the base of the ratio is not positive
Net income CAGR 5Y
unavailable
the base of the ratio is not positive
EPS growth (YoY)
-94.8%
computed by olivLawFY 2026
EPS CAGR 3Y
unavailable
the base of the ratio is not positive
EPS CAGR 5Y
unavailable
the base of the ratio is not positive
FCF growth (YoY)
-10.6%
computed by olivLawFY 2026

Profitability

Gross margin
unavailable
input data missing
EBITDA margin
12.6%
computed by olivLawFY 2026
EBIT margin
10.9%
computed by olivLawFY 2026
Net margin
3.1%
computed by olivLawFY 2026
FCF margin
5.0%
computed by olivLawFY 2026

Returns

ROE
3.7%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
ROA
1.2%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
ROIC
7.3%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
ROCE
5.4%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Payout ratio (EPS)
unavailable
input data missing
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
91.1 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Net debt / EBITDA
3.2x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Debt / equity
0.6x
computed by olivLawbalance sheet at 30 Jun 2026
Interest coverage
1.2x
computed by olivLawFY 2026

Liquidity

Current ratio
0.6x
computed by olivLawbalance sheet at 30 Jun 2026
Quick ratio
0.6x
computed by olivLawbalance sheet at 30 Jun 2026
Cash ratio
0.3x
computed by olivLawbalance sheet at 30 Jun 2026

Cash

Operating cash flow
13.1 m USD
computed by olivLawFY 2026
Capital expenditure
2.0 m USD
computed by olivLawFY 2026
Free cash flow
11.1 m USD
computed by olivLawFY 2026
FCF conversion
160.3%
computed by olivLawFY 2026
Cash conversion
46.3%
computed by olivLawFY 2026

Efficiency

Days sales outstanding
15 days
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Days inventory outstanding
unavailable
input data missing
Days payables outstanding
unavailable
input data missing
Cash conversion cycle
unavailable
input data missing

Market and valuation

Market capitalisation
79.4 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Enterprise value
170.5 m USD
computed by olivLawbalance sheet at 30 Jun 2026
Market cap / net income TTM
11.4x
computed by olivLawFY 2026
P/E (TTM)
13.2x
computed by olivLawFY 2026
Earnings yield
7.6%
computed by olivLawFY 2026
P/B
0.4x
computed by olivLawbalance sheet at 30 Jun 2026
P/S
0.4x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
EV/EBITDA
6.0x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
EV/EBIT
7.0x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
EV/Sales
0.8x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
P/FCF
7.1x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
FCF yield
14.0%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Dividend yield
0.0%
computed by olivLawFY 2026
Shareholder yield (distributions)
unavailable
input data missing

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Neutral profile

Score: 48 / 100

A scoring methodology on indicators and valuation, not investment advice.

Closing price

31.77 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 79.4 m USD

Key indicators

Market capitalisation
79.4 m USD
computed by olivLawbalance sheet at 30 Jun 2026
P/E (TTM)
13.2x
computed by olivLawFY 2026
P/B
0.4x
computed by olivLawbalance sheet at 30 Jun 2026
EV/EBITDA
6.0x
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
ROE
3.7%
computed by olivLawFY 2026 · balance sheet at 30 Jun 2026
Net margin
3.1%
computed by olivLawFY 2026
Revenue growth (YoY)
6.8%
computed by olivLawFY 2026
Dividend yield
0.0%
computed by olivLawFY 2026

Coverage and freshness

30/37 reporting lines present
Latest full fiscal year: 2026
Latest reported period: 30 Jun 2026
Latest balance sheet date: 30 Jun 2026
Share count (cover of the latest filing), as of: 25 Aug 2026
Source: SEC (XBRL)published 01 Sept 2026
verified 2481derived 167

Score by group

  • Balance sheet11
  • Growth0
  • Valuation73
  • Quality65

Estimated value range

Low
41.17
USD per share
Mid
63.26
USD per share
High
205.25
USD per share
Price: 31.77 USD
The price is below the range
Potential to the central value: 99.1% (value / price − 1)
Margin of safety: 49.8% (1 − price / value)
Agreement between methods: low · 3 methods used · 2 independent bases

The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 24.55 – 343.11 USD.

Valuation assumptions are editorial choices, not measured; beta is not measured.

Method ranges (USD per share)

— — Mid · ▏ Price

Valuation methods

  • DCF (discounted cash flow)152.43 – 343.11 (Mid 214.32)
    WACC 6.8% · starting FCFF 28.5 m USD · terminal value share of EV 81%
    The WACC × g sensitivity gives the method's bounds; these are not probabilities.
    Reverse DCF: no growth between −30% and +40% justifies the price
  • Peers: EV/EBITDA41.17 – 205.25 (Mid 63.26)
    3 companies used · median multiple 8.8x · quartiles 6.9x – 21.3x
    CSV, DLPN, WW
  • Peers: P/E24.55 – 73.32 (Mid 30.97)
    7 companies used · median multiple 12.8x · quartiles 10.2x – 30.4x
    CSV, EVI, HRB, SCI, UNF, WW, YELP
  • Dividend discount (DDM)unavailable · the base of the ratio is not positive
Multiple comparisons use the SIC vertical: Services-Personal Services (SIC 7200)

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Neutral profile · Score 48/100

FactorValueScoreWeight used
ROIC · Quality7.3%60 (vs peers)13%
Net margin · Quality3.1%40 (vs peers)8%
FCF conversion · Quality160.3%100 (on a fixed band)8%
Revenue CAGR 3Y · Growth-1.3%0 (on a fixed band)10%
EPS CAGR 3Y · Growthunavailableunavailable—
Net debt / EBITDA · Balance sheet3.2x22 (on a fixed band)13%
Interest coverage · Balance sheet1.2x0 (on a fixed band)8%
Current ratio · Balance sheet0.6x0 (on a fixed band)5%
P/E (TTM) · Valuation13.2x43 (vs peers)13%
EV/EBITDA · Valuation6.0x82 (on a fixed band)13%
FCF yield · Valuation14.0%100 (on a fixed band)10%
Shareholder yield (distributions) · Returnsunavailableunavailable—
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet11/100 · 3/3 factors with a value
  • Growth· partial0/100 · 1/2 factors with a value
  • Quality65/100 · 3/3 factors with a value
  • Returns· partialunavailable · 0/2 factors with a value
  • Valuation73/100 · 3/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

Regis Corporation (RGS). Latest full fiscal year: 2026; data up to 2026-06-30.

Figures computed from the financial statements: revenue 224.5 m USD in 2026; YoY growth 6.8%; net margin 3.1%; ROE 3.7%; net debt/EBITDA 3.2x.

The estimated value range is 41.17–205.25 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 63.26 USD, the price of 31.77 USD leaves a potential of 99.1% (value / price − 1) and a margin of safety of 49.8% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.

olivLaw score 48/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: growth, returns. Not investment advice.

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • FCF conversion: 160.3%
  • EV/EBITDA: 6.0x
  • FCF yield: 14.0%
  • The price is below the estimated value range

What contradicts it

  • Revenue CAGR 3Y: -1.3%
  • Net debt / EBITDA: 3.2x
  • Interest coverage: 1.2x
  • Current ratio: 0.6x
  • The valuation methods diverge

Not assessed (insufficient data or a ratio without meaning): EPS CAGR 3Y, Shareholder yield (distributions), Payout ratio (FCF).

Versus the vertical median

Services-Personal Services (SIC 7200) · same industry (4-digit SIC) · compared with 10 companies

Multiples and returns vs the median

P/E
13.2x
vertical median 12.8x
at median
EV/EBITDA
6.0x
vertical median 8.8x
below median (−31.6%)
P/S
0.4x
vertical median 0.7x
below median (−51.0%)
P/B
0.4x
vertical median 2.0x
below median (−79.1%)
ROE
3.7%
vertical median 18.2%
below median (−79.9%)
Net margin
3.1%
vertical median 6.5%
below median (−52.2%)
EBIT margin
10.9%
vertical median 3.5%
above median (+209.5%)
Revenue YoY
6.8%
vertical median 3.7%
above median (+82.6%)
Net debt/EBITDA
3.2x
vertical median 5.5x
below median (−41.5%)
Dividend yield
0.0%
vertical median 1.5%
below median (−100.0%)

Price rebased to 100 (monthly, 5 years)

Companies in the vertical

Market capP/EROENet marginRevenue YoY1A / 3A
SCIService Corporation International10.5 bn19.235.7%12.7%+2.9%−3% / +26%
HRBH&R Block Inc6.8 bn9.8710.9%18.6%+4.9%+32% / +22%
YELPYelp Inc1.2 bn10.618.2%8.6%+3.7%−24% / −50%
CSVCarriage Services, Inc.571.4 m12.817.3%10.7%+3.3%−17% / +59%
EVIEVI Industries, Inc.282.3 m45.35.3%1.7%+14.6%+6% / −16%
WWWw International, Inc.121.3 m0.1332.6%148.1%−11.6%−57% / unavailable
RGSRegis Corporation79.4 m13.23.7%3.1%+6.8%+8% / +165%
DLPNDolphin Entertainment, Inc.12.2 m—-51.6%-6.3%+9.7%−42% / −70%
XWELXWELL, Inc.5.1 m——-82.9%−13.8%−21% / −75%
MRMMedirom Healthcare Technologies Inc.——26.0%1.8%+21.5%−85% / −94%
UNFUnifirst Corporation—41.75.0%4.3%+3.7%+45% / +45%

1- and 3-year price returns: for RGS from daily closes (the same as the performance table), for the other companies from month-end closes.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

The engine has no published run for this company yet.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
20.39
Total return -36% · Per year -36%
36.16
Total return 14% · Per year 14%
54.61
Total return 72% · Per year 72%
3 years
17.56
Total return -45% · Per year -18%
35.24
Total return 11% · Per year 4%
58.75
Total return 85% · Per year 23%
5 years
15.12
Total return -52% · Per year -14%
34.34
Total return 8% · Per year 2%
63.21
Total return 99% · Per year 15%
What moves the 3-year price the most
  • Exit P/E± 8.81
  • Net margin± 6.17
  • Annual revenue growth± 5.36
  • Annual dilution± 0.52

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

In brief

Regis Corporation franchises and operates hair salons, mainly under the Supercuts brand, with a predominantly franchised model. Consolidated revenue reached 224.5 million USD in fiscal 2026, and the company's current challenge is shifting toward a more traffic-driven chain with cheaper debt 12.

SWOT

Strengths

  • The large salon network and recognized Supercuts and SmartStyle brands support a franchise model with recurring revenue 1.
  • Higher consolidated revenue and positive operating cash flow in fiscal 2026 indicate steady cost management 2.
  • Operating experience gained from the Alline salons provides a testing ground for initiatives that could later be extended across the network 1.

Weaknesses

  • Debt remains a significant burden, and its high cost is an explicit concern for management, which is evaluating refinancing 12.
  • A shrinking franchised salon count has cut royalties and fees, and franchise revenue has declined steadily 2.
  • Net profit was low in fiscal 2026, and the prior year result was inflated by an exceptional tax benefit 2.

Opportunities

  • Higher traffic and guest retention through mobile apps and loyalty programs could support a sales recovery 2.
  • Refinancing the debt on better terms could reduce financing costs and free up cash flow 2.
  • Rolling out initiatives tested in company-owned salons across the franchise network could add growth without large capital outlays.

Threats

  • Changing shopping habits and competition from alternative channels may reduce traffic in the shopping centers where salons are located 1.
  • Rising labor costs and new regulation could reduce franchisee profitability and lead to salon closures 1.
  • Dependence on a third-party merchandise supplier and on franchisee success could directly affect revenue if either weakens 1.

Risks

  • High indebtednesshigh

    Term loan debt and capitalized interest put pressure on cash flow, and refinancing is still under discussion 12.

  • Integration of Allinemedium

    Integrating the Alline salons brings risks of unknown liabilities and unforeseen costs that could affect results 1.

  • Employment regulationmedium

    Changes to minimum wage, unionization rules and possible joint-employer treatment could raise costs and legal complexity 1.

  • Franchisee stabilityhigh

    Salon closures and unpaid rent by franchisees reduce royalties and can create financial obligations for the company 1.

  • Supplier dependencelow

    The preferred supplier agreement for merchandise exposes the network to pricing, quality and transport problems 1.

Investment thesis

What would need to be true (bull case)

  • If traffic and comparable sales keep growing, the large network and recognized brands could support a return to profitability.
  • Refinancing the debt on better terms could free up cash flow and meaningfully improve net profit.
  • Testing initiatives in company-owned salons and then extending them to franchisees could drive growth without heavy capital spending.

What would break the thesis

  • Continued decline in franchised salons shrinks the royalty base, and franchise revenue remains under pressure.
  • Significant debt and costly financing limit flexibility and could slow investment.
  • Rising labor costs and regulation could reduce franchisee profitability and lead to more closures.

What to watch

  • Outcome of the debt refinancing negotiationsnext 10-K
  • Trend in same-store sales at Supercuts and company-owned salonsQ1 2027
  • Net number of franchised salons closed or opened2027
  • Adjusted EBITDA margin of the franchise segmentnext 10-K

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

The business

Regis Corporation franchises and owns hair salons, listed on Nasdaq under RGS. As of June 30, 2026 the network counted 3,712 locations, of which 3,448 were franchised and 264 company-owned, mostly in North America 1. Revenue comes from royalties, fees, advertising fund contributions and franchise rental income, plus services at company-owned salons. The model remains largely franchisor-led, with limited day-to-day control over franchisees but strict brand standards 1.

The Alline Salon Group acquisition, completed in December 2024, brought 314 salons, of which 261 were still operating on June 30, 2026. Management presents them as a testing ground for operational and loyalty initiatives that could later be scaled across the franchise network 1. The company says it wants to remain an asset-light model, while acknowledging that directly operating salons adds costs and risks 1.

Financially, fiscal 2026 brought consolidated revenue of 224.5 million USD and operating income of 24.4 million USD, with Adjusted EBITDA of 32.8 million USD 2. Franchise segment revenue fell to 146.2 million USD while the company-owned segment grew on the Alline consolidation 2. System-wide revenue was 1,066.3 million USD 1.

Segments

Franchise

The franchise segment includes royalties, fees, advertising fund contributions and rental income, which declined in fiscal 2026 as the salon count fell. Segment revenue reached 146.2 million USD and Adjusted EBITDA 25.2 million USD 2. The decline mainly reflects 207 franchised salons closed during the year 1.

Company-owned salons

This segment generated 78.3 million USD in fiscal 2026, up on the prior year due to a full year of Alline salons 12. Profitability was modest but positive, and in the fourth quarter the company closed some unprofitable salons, which improved segment profit 2.

Market context

The hair salon market is highly fragmented, with many operators, most of them independent, and low barriers to entry at the individual salon level 1. However, expanding a chain nationally requires good sites, franchisee recruitment, stylist retention and robust systems 1. Regis operates mainly in the value category, where average service transactions range from 27 to 39 USD 1.

Demand depends on customer traffic in shopping centers and retail locations where many salons sit, and that traffic faces pressure from alternative channels such as blow dry bars and online shopping 1. System-wide same-store sales grew only 0.9% in fiscal 2026 1.

Trends

  • Shifting shopping habitsheadwind

    Customers are moving toward online shopping and alternative locations, which reduces traffic in the shopping centers where salons are located 1. If this continues, rental and royalty income could remain under pressure.

  • Supercuts same-store sales growthtailwind

    Supercuts posted 3.0% same-store sales growth in fiscal 2026, suggesting the value model can attract guests when execution is strong 2.

  • Labor costs and wage regulationheadwind

    Minimum wage increases and new rules on leave and shift scheduling raise salon costs, and the ability to pass them on through prices is limited 1. The effect on franchisees could reduce profitability and the number of locations.

  • Piloting initiatives in company-owned salonsmixed

    Company-owned salons serve as a laboratory for loyalty, marketing and technology, and results could be extended to the franchise network if proven effective 1. Success could support traffic recovery, but remains uncertain.

Competitive position

Regis competes with salon chains such as Great Clips, Fantastic Sams, Sport Clips and Ulta Beauty, as well as independent salons, in-home hair services, booth rentals and blow dry bars 1. The company also competes with other franchise organizations for new franchisees 1.

Key competitive factors are the ability to attract and train quality stylists, consistent guest experiences, technology tools, and winning on convenience and price value 1. Regis seeks to differentiate through multiple brands and stylist training programs 1.

  • Great Clips

    Salon chain named as a direct competitor in quick-service haircuts, with no confirmed US ticker in the source.

  • Fantastic Sams

    Franchised salon chain competing for the same guests and franchisees, with no confirmed ticker in the source.

  • Sport Clips

    Salon chain focused on men's grooming, named as a rival in the regulatory filing.

  • Ulta Beauty

    Beauty products and services retailer competing for hair care spending by consumers.

News & filings

In the press

The latest news item in our archive is from 09 Sept 2026; the newest SEC filing is from 03 Nov 2026. The press archive comes from the RSS feeds we follow and does not necessarily cover the latest event — the filings alongside do.

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2026-06-30 · SEC / Regis Corporation · 01 Sept 2026
  2. [2] Form 8-K, results release (exhibit 99.1) · SEC / Regis Corporation · 01 Sept 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.