UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)

☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			For the quarterly period ended December 31, 2025
			For the quarterly period ended March 31, 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)

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading symbol

Name of exchange on which registered

Common Stock, $0.05 par value

RGS

The Nasdaq Global Market

Rights to Purchase Series A Junior Participating Preferred Stock, $0.05 par value

RGS

The Nasdaq Global Market

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 be 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 definitions 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 is a shell company (as defined by Rule 12b-2 of the Act): Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock as of ~~January~~May 296, 2026: 2,498,778

REGIS CORPORATION

INDEX

Part I.	Financial Information
	Item 1.	Financial Statements (Unaudited):
		Condensed Consolidated Balance Sheets as of December 31, 2025, and June 30, 2025	3
		Condensed Consolidated Balance Sheets as of March 31, 2026, and June 30, 2025	3
		Condensed Consolidated Statements of Operations for the Three and Six Months Ended December 31, 2025, and 2024	4
		Condensed Consolidated Statements of Operations for the Three and Nine Months Ended March 31, 2026, and 2025	4
		Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended December 31, 2025, and 2024	5
		Condensed Consolidated Statements of Comprehensive Income for the Three and Nine Months Ended March 31, 2026, and 2025	5
		Condensed Consolidated Statements of Shareholders' Equity for the Three and Six Months Ended December 31, 2025, and 2024	6
		Condensed Consolidated Statements of Shareholders' Equity for the Three and Nine Months Ended March 31, 2026, and 2025	6
		Condensed Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2025, and 2024	7
		Condensed Consolidated Statements of Cash Flows for the Nine Months Ended March 31, 2026, and 2025	7
		Notes to Condensed Consolidated Financial Statements	8
	Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	2625
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	3736
	Item 4.	Controls and Procedures	3736
Part II.	Other Information		3837
	Item 1.	Legal Proceedings	3837
	Item 1A.	Risk Factors	3837
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3938
	Item 5.	Other Information	3938
	Item 6.	Exhibits	4039
	Signatures		4140

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited)

REGIS CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

As of ~~December~~March 31, ~~2025~~2026, and June 30, 2025

(Dollars in thousands, except per share data)

December 31,2025

June 30,2025

March 31,2026

June 30,2025

ASSETS

Current assets:

Cash and cash equivalents (Note 7)

1822,~~385~~930

16,959

Receivables, net

9,~~337~~005

9,473

Inventory

2,~~567~~482

2,798

Other current assets

2119,~~825~~926

21,254

Total current assets

5254,~~114~~343

50,484

Property and equipment, net

9,~~829~~542

10,085

Goodwill (Note 1)

183,~~420~~101

183,436

Other intangibles, net

5,~~612~~471

5,830

Right of use asset (Note 8)

~~221~~188,~~508~~206

229,861

Deferred tax asset (Note 5)

~~101~~100,~~124~~978

102,504

Other assets

14,~~707~~957

16,757

Total assets

~~588~~556,~~314~~598

598,957

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Accounts payable

1920,~~949~~570

20,837

Accrued expenses

1615,~~057~~986

19,066

Long-term debt, current portion (Note 9)

2,~~100~~550

1,100

Short-term lease liability (Note 8)

5952,~~958~~558

60,685

Total current liabilities

9891,~~064~~664

101,688

Long-term debt, net (Note 9)

~~111~~112,~~219~~774

109,693

Long-term lease liability (Note 8)

~~170~~144,~~782~~564

179,280

Other non-current liabilities

1918,~~541~~146

22,680

Total liabilities

~~399~~367,~~606~~148

413,341

Shareholders' equity:

Common stock, $0.05 par value; issued and outstanding, 2,498,778 and 2,435,981 common shares at December 31, 2025, and June 30, 2025, respectively

125

122

Common stock, $0.05 par value; issued and outstanding, 2,498,778 and 2,435,981 common shares at March 31, 2026, and June 30, 2025, respectively

125

122

Additional paid-in capital

76,~~591~~831

75,243

Accumulated other comprehensive income

87,~~215~~982

8,286

Retained earnings

~~103~~104,~~777~~512

101,965

Total shareholders' equity

~~188~~189,~~708~~450

185,616

Total liabilities and shareholders' equity

~~588~~556,~~314~~598

598,957

_______________________________________________________________________________

The accompanying notes are an integral part of the unaudited Condensed Consolidated Financial Statements.

REGIS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

For the Three and ~~Six~~Nine Months Ended ~~December~~March 31, ~~2025~~2026, and ~~2024~~2025

(Dollars and shares in thousands, except per share amounts)

Three Months Ended December 31,

Six Months Ended December 31,

Three Months Ended March 31,

Nine Months Ended March 31,

2025

2024

2025

2024

2026

2025

2026

2025

Revenues:

Royalties

13,~~641~~224

1413,~~840~~533

2740,~~677~~901

3044,~~486~~019

Fees

1,~~753~~861

2,~~917~~402

35,~~537~~398

57,~~269~~671

Advertising fund contributions

5,~~298~~215

5,~~490~~203

1016,~~871~~086

1116,~~131~~334

Franchise rental income (Note 8)

1713,~~237~~006

2016,~~022~~866

3447,~~591~~597

4158,~~658~~524

Company-owned salon revenue

19,~~188~~101

318,~~450~~953

3958,~~399~~500

423,~~235~~188

Total revenue

5752,~~117~~407

4656,~~719~~957

~~116~~168,~~075~~482

92149,~~779~~736

Operating expenses:

General and administrative

109,~~264~~975

11,~~155~~235

2131,~~615~~590

2536,~~189~~424

Rent (Note 8)

3,~~598~~622

24,~~149~~058

610,~~821~~443

37,~~213~~271

Advertising fund expense

5,~~298~~215

5,~~490~~203

1016,~~871~~086

1116,~~131~~334

Franchise rent expense

1713,~~237~~006

2016,~~022~~866

3447,~~591~~597

4158,~~658~~524

Company-owned salon expense (1)

13,~~727~~958

113,~~946~~835

2842,~~495~~453

216,~~699~~534

Depreciation and amortization

~~796~~914

~~460~~739

12,~~564~~478

~~906~~1,645

Long-lived asset impairment

—

352

Total operating expenses

5046,~~920~~690

4151,~~222~~936

~~103~~150,~~957~~647

85137,~~148~~084

Operating income

65,~~197~~717

5,~~497~~021

1217,~~118~~835

712,~~631~~652

Other (expense) income:

Interest expense

(5,~~255~~026)

(45,~~848~~087)

(1015,~~526~~552)

(914,~~694~~781)

Gain on earn-out liability

—

1,000

—

Other, net

~~517~~202

~~(307)~~315

~~759~~961

~~370~~685

Income (loss) from operations before income taxes

~~1,459~~893

~~342~~249

34,~~351~~244

(1,~~693~~444)

Income tax (expense) benefit

(~~1,003~~158)

~~(136)~~1

(1,~~539~~697)

8990

Income (loss) from continuing operations

~~456~~735

~~206~~250

12,~~812~~547

(1,~~604~~354)

Income from discontinued operations (Note 3)

—

~~7,439~~—

—

8,396

Net income

~~456~~735

~~7,645~~250

12,~~812~~547

67,~~792~~042

Net income per share:

Basic:

Income (loss) from continuing operations

0.1829

0.0910

01.7401

(0.6858)

Income from discontinued operations

—

~~3.20~~—

—

3.5857

Net income per share (2)

0.1829

30.2910

01.7401

23.9000

Diluted:

Income (loss) from continuing operations

0.1626

0.0708

0.6489

(0.6858)

Income from discontinued operations

—

~~2.63~~—

—

3.5857

Net income per share, diluted (2)

0.1626

20.7108

0.6489

23.9000

Weighted average common and common equivalent shares outstanding:

Basic

2,~~482~~539

2,~~324~~499

2,~~461~~513

2,~~346~~350

Diluted

2,~~862~~864

23,~~825~~002

2,~~822~~867

2,~~346~~350

_______________________________________________________________________________

(1)Includes cost of services and products sold to guests in our company-owned salons. Excludes general and administrative expense, rent, and depreciation and amortization related to company-owned salons.

(2)Total is a recalculation; line items calculated individually may not sum to total due to rounding.

The accompanying notes are an integral part of the unaudited Condensed Consolidated Financial Statements.

REGIS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

For the Three and ~~Six~~Nine Months Ended ~~December~~March 31, ~~2025~~2026, and ~~2024~~2025

(Dollars in thousands)

	Three Months Ended December 31,				Six Months Ended December 31,
	Three Months Ended March 31,				Nine Months Ended March 31,
	2025		2024		2025		2024
	2026		2025		2026		2025
Net income	$	~~456~~735	$	~~7,645~~250	$	12,~~812~~547	$	67,~~792~~042
Foreign currency translation adjustments	~~218~~(233)		~~(604)~~41		(71304)		(~~452~~411)
Comprehensive income	$	~~674~~502	$	~~7,041~~291	$	12,~~741~~243	$	6,~~340~~631

_______________________________________________________________________________

The accompanying notes are an integral part of the unaudited Condensed Consolidated Financial Statements.

REGIS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited)

For the Three and ~~Six~~Nine Months Ended ~~December~~March 31, ~~2025~~2026, and ~~2024~~2025

(Dollars in thousands)

	Three Months Ended December 31, 2025
	Three Months Ended March 31, 2026
	Common Stock			AdditionalPaid-InCapital		AccumulatedOtherComprehensiveIncome (Loss)		Retained Earnings		Total
	Shares	Amount
Balance, September 30, 2025	2,461,270	$	123	$	76,110	$	7,997	$	103,321	$	187,551
Net income	—	—		—		—		456		456
Foreign currency translation	—	—		—		218		—		218
Exercise of stock options	13,564	1		315		—		—		316
Stock-based compensation	—	—		307		—		—		307
Net restricted stock activity	23,944	1		(141)		—		—		(140)
Balance, December 31, 2025	2,498,778	$	125	$	76,591	$	8,215	$	103,777	$	188,708
	Three Months Ended December 31, 2024
Net income	—	—		—		—		735		735
	Common Stock			AdditionalPaid-InCapital		AccumulatedOtherComprehensiveIncome (Loss)		Accumulated Deficit		Total
Foreign currency translation	—	—		—		(233)		—		(233)
Stock-based compensation	—	—		240		—		—		240
Balance, March 31, 2026	2,498,778	$	125	$	76,831	$	7,982	$	104,512	$	189,450
	Three Months Ended March 31, 2025
	Common Stock			AdditionalPaid-InCapital		AccumulatedOtherComprehensiveIncome		Accumulated Deficit		Total
	Shares	Amount
Balance, September 30, 2024	2,282,395	$	114	$	69,972	$	8,736	$	(22,424)	$	56,398
Balance, December 31, 2024	2,435,981	$	122	$	73,243	$	8,132	$	(14,779)	$	66,718
Net income	—	—		—		—		~~7,645~~250		~~7,645~~250
Foreign currency translation	—	—		—		~~(604)~~41		—		~~(604)~~41
Stock-based compensation	—	—		~~330~~383		—		—		~~330~~383
Net restricted stock activity	13,034	1		(52)		—		—		(51)
Stock warrants issued in connection with debt	—	—		1,252		—		—		1,252
Common stock issued in connection with Alline acquisition (Note 13)	140,550	7		2,993		—		—		3,000
Balance, March 31, 2025	2,435,981	$	122	$	74,878	$	8,173	$	(14,529)	$	68,644
Balance, December 31, 2024	2,435,979	$	122	$	73,243	$	8,132	$	(14,779)	$	66,718
	Nine Months Ended March 31, 2026
	Six Months Ended December 31, 2025
	Common Stock			AdditionalPaid-InCapital		AccumulatedOtherComprehensiveIncome (Loss)		Retained Earnings		Total
	Shares	Amount
Balance, June 30, 2025	2,435,981	$	122	$	75,243	$	8,286	$	101,965	$	185,616
Net income	—	—		—		—		12,~~812~~547		12,~~812~~547
Foreign currency translation	—	—		—		(71304)		—		(71304)
Exercise of stock options	24,564	1		606		—		—		607
Stock-based compensation	—	—		~~604~~844		—		—		~~604~~844
Net restricted stock activity	25,666	1		(160)		—		—		(159)
Common stock issued in connection with warrant exercise	12,567	1		298		—		—		299
Balance, December 31, 2025	2,498,778	$	125	$	76,591	$	8,215	$	103,777	$	188,708
Balance, March 31, 2026	2,498,778	$	125	$	76,831	$	7,982	$	104,512	$	189,450
	Six Months Ended December 31, 2024
	Nine Months Ended March 31, 2025
	Common Stock			AdditionalPaid-InCapital		AccumulatedOtherComprehensiveIncome (Loss)		Accumulated Deficit		Total
	Shares	Amount
Balance, June 30, 2024	2,279,948	$	114	$	69,660	$	8,584	$	(21,571)	$	56,787
Net income	—	—		—		—		67,~~792~~042		67,~~792~~042
Foreign currency translation	—	—		—		(~~452~~411)		—		(~~452~~411)
Stock-based compensation	—	—		~~665~~1,048		—		—		~~665~~1,048
Net restricted stock activity	15,481	1		(75)		—		—		(74)
Common stock issued in connection with Alline acquisition (Note 13)	140,~~550~~552	7		2,993		—		—		3,000
Balance, December 31, 2024	2,435,979	$	122	$	73,243	$	8,132	$	(14,779)	$	66,718
Stock warrants issued in connection with debt	—	—		1,252		—		—		1,252
Balance, March 31, 2025	2,435,981	$	122	$	74,878	$	8,173	$	(14,529)	$	68,644

_______________________________________________________________________________

The accompanying notes are an integral part of the unaudited Condensed Consolidated Financial Statements.

REGIS CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

For the ~~Six~~Nine Months Ended ~~December~~March 31, ~~2025~~2026, and ~~2024~~2025

(Dollars in thousands)

Six Months Ended December 31,

Nine Months Ended March 31,

2025

2024

2026

2025

Cash flows provided by (used in) operating activities:

Net income

12,~~812~~547

67,~~792~~042

Adjustments to reconcile net income to cash provided by operating activities:

Gain from sale of OSP (Note 3)

—

(8,396)

Depreciation and amortization

12,~~548~~444

~~853~~1,596

Deferred income taxes

1,~~361~~442

(197)

Non-cash interest

24,~~897~~296

23,~~513~~846

Gain on earn-out liability

(1,000)

—

Long-lived asset impairment

—

352

Stock-based compensation

~~910~~706

12,~~604~~043

Amortization of debt discount and financing costs

12,~~811~~717

12,~~605~~437

Other non-cash items affecting earnings

~~(127)~~43

~~569~~579

Ad fund

(~~250~~365)

35,~~474~~844

Changes in operating assets and liabilities (1)

(53,~~016~~912)

(8,~~382~~160)

Net cash provided by operating activities

38,~~946~~918

~~787~~6,986

Cash flows (used in) provided by investing activities:

Capital expenditures

(1,~~167~~383)

(~~444~~769)

Asset acquisitions, net of cash acquired and certain obligations assumed

—

(18,631)

Proceeds from sale of OSP, net of fees

—

8,463

Net cash used in investing activities

(1,~~167~~383)

(10,~~612~~937)

Cash flows (used in) provided by financing activities:

Borrowings on revolving credit facility

—

4,326

Repayments of revolving credit facility

—

(10,238)

Repayments of long-term debt

(2,~~140~~440)

(~~526~~825)

Debt refinancing fees

(41)

(~~814~~949)

Proceeds from issuance of common stock in connection with warrant exercise

298

—

Proceeds from issuance of common stock for options exercised

606

—

Proceeds from issuance of long-term debt

—

15,000

Taxes paid for shares withheld

(161)

(75)

Net cash (used in) provided by financing activities

(1,~~438~~738)

7,~~673~~239

Effect of exchange rate changes on cash and cash equivalents

(246)

(~~106~~92)

Increase (decrease) in cash, cash equivalents, and restricted cash

1,339

(2,258)

Increase in cash, cash equivalents, and restricted cash

5,751

3,196

Cash, cash equivalents, and restricted cash:

Beginning of period

35,205

29,312

End of period

3640,~~544~~956

2732,~~054~~508

Supplemental non-cash disclosure

Stock issued in connection with Alline Acquisition

—

3,000

_______________________________________________________________________________

(1)Changes in operating assets and liabilities exclude ad fund and assets and liabilities sold or acquired.

The accompanying notes are an integral part of the unaudited Condensed Consolidated Financial Statements.

REGIS CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. BASIS OF PRESENTATION OF UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

The unaudited Condensed Consolidated Financial Statements of Regis Corporation (the Company) as of ~~December~~March 31, ~~2025~~2026, and for the three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, and ~~2024~~2025, reflect, in the opinion of management, all adjustments necessary to fairly state the consolidated financial position of the Company as of ~~December~~March 31, ~~2025~~2026, and its consolidated results of operations, comprehensive income, shareholders' equity and cash flows for the interim periods. Adjustments consist only of normal recurring items, except for any discussed in the notes below. The results of operations and cash flows for any interim period are not necessarily indicative of results of operations and cash flows for the full year.

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, they do not include all disclosures required by accounting principles generally accepted in the United States of America (GAAP). The unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended June 30, 2025, and other documents filed or furnished to the SEC during the current fiscal year.

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). Refer to Note 13 to the unaudited Condensed Consolidated Financial Statements for additional information regarding the acquisition. The Company’s financial results for the three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, and ~~2024~~2025, include the results of Alline subsequent to the acquisition date, December 19, 2024.

Acquisition-related costs of $10.2 million and $1.4 million were incurred during the three and ~~six~~nine months ended ~~December~~March 31, ~~2024~~2025, respectively, 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 on the ~~December~~March 31, ~~2024~~2025, unaudited Condensed Consolidated Statement of Operations.

Goodwill:

As further described in Note 13 of these unaudited Condensed Consolidated Financial Statements, the acquisition of Alline resulted in recognition of approximately $10.3 million in goodwill, which was assigned to the company-owned operating segment.

As of ~~December~~March 31, ~~2025~~2026, and June 30, 2025, the franchise reporting unit had goodwill of $172.8 million and $173.1 million, respectively, and the company-owned reporting unit had goodwill of $10.3 million.

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 8 for further discussion of such obligations guaranteed.

Tax Benefits Preservation Plan:

On January 28, 2024, the Board authorized and declared a dividend of one preferred stock purchase right (a Right) for each outstanding share of common stock. The dividend was payable on February 9, 2024, (the Record Date) to the holders of record of shares of common stock as of the close of business on the Record Date. The description and terms of the Rights are set forth in a 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 at the October 28, 2025 annual shareholders meeting, and the shareholders ratified the Plan. The Rights and the Plan will now expire on the earliest of (i) the close of business on January 29, 2028 (or such later date as may be established by the Board of Directors prior to the expiration date as long as the Extension is submitted to the shareholders of the Company for ratification at the next annual or special meeting of shareholders succeeding such extension), (ii) the time at which the Rights are redeemed or exchanged pursuant to the Plan, (iii) the time at which the Rights (other than Rights owned by an Acquiring Person, as defined by the Plan) are exchanged pursuant to the Plan, (iv) the repeal of Section 382 of the U.S. Internal Revenue Code of 1982, as amended (the Code), or any successor statute if the Board determines that the Plan is no longer necessary or desirable for the preservation of certain unrecognized tax benefits, or (v) the beginning of a taxable year to which the Board determines that no tax benefits may be carried forward.

Recently Issued Accounting Standards Not Yet Adopted:

In December 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” The ASU includes amendments requiring enhanced income tax disclosures, primarily related to standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. The ASU is effective for annual reporting periods beginning after December 15, 2024, and shall be applied prospectively. The Company is currently evaluating the impact this new guidance will have on its annual disclosures for the current fiscal year.

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.

In July 2025, the FASB issued 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 guidance is effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within fiscal years beginning after that date. The Company does not believe the guidance will have a material impact on its financial statements and disclosures.

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 Condensed 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 ~~recognized~~evaluated ~~immediately~~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 36-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:

December 31,2025

June 30,2025

Balance Sheet Classification

March 31,2026

June 30,2025

Balance Sheet Classification

(Dollars in thousands)

Receivables from contracts with customers, net

7,~~829~~493

7,378

Receivables, net

Broker fees

54,~~040~~572

5,997

Other assets

Deferred revenue:

Current

Gift card liability

~~631~~419

476

Accrued expenses

Deferred franchise fees open salons

3,~~563~~454

3,832

Accrued expenses

Total current deferred revenue

43,~~194~~873

4,308

Non-current

Deferred franchise fees unopened salons

~~1,368~~984

1,475

Other non-current liabilities

Deferred franchise fees open salons

76,~~613~~975

9,394

Other non-current liabilities

Total non-current deferred revenue

87,~~981~~959

10,869

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:

Six Months Ended December 31,

Nine Months Ended March 31,

2025

2024

2026

2025

(Dollars in thousands)

Balance at beginning of period

5,015

6,227

Provision for doubtful accounts (1)

~~984~~1,109

12,~~485~~234

Provision for franchisee rent (2)

~~484~~515

~~588~~784

Recoveries

(~~999~~1,209)

(~~694~~1,495)

Other

6333

73(68)

Write-offs

(~~468~~1,058)

(~~132~~2,755)

Balance at end of period

54,~~079~~405

74,~~547~~927

________________________________________________________________________________________

(1)The provision for doubtful accounts is recognized as general and administrative expense in the Condensed Consolidated Statements of Operations.

(2)The provision for franchisee rent is recognized as rent in the Condensed 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, ~~and~~capitalized, ~~recognized as general~~ and ~~administrative~~expensed ~~expense~~ over the term of the franchise agreement as general and administrative expense in the Condensed Consolidated Statements of Operations. The following table is a rollforward of the broker fee balance for the periods indicated:

	Six Months Ended December 31,
	Nine Months Ended March 31,
	2025		2024
	2026		2025
	(Dollars in thousands)
Balance at beginning of period	$	5,997	$	9,369
Amortization	(~~957~~1,425)		(1,~~246~~820)
Write-offs (1)	—		(1,~~131~~150)
Balance at end of period	$	54,~~040~~572	$	6,~~992~~399

________________________________________________________________________________________

(1)Broker fees of $0.9 million were written off in connection with the Alline acquisition for the ~~six~~nine months ended ~~December~~March 31, ~~2024~~2025.

Deferred revenue includes the gift card liability and deferred franchise fees for unopened salons and open salons. Deferred franchise fees related to open salons are generally recognized on a straight-line basis over the term of the franchise agreement, but is ~~recognized~~evaluated ~~immediately~~for immediate revenue recognition when a salon is acquired by Regis or closed. Franchise fee revenue for the three months ended ~~December~~March 31, ~~2025~~2026, and ~~2024~~2025, was $1.0 million and $2.1.8 million, respectively, and for the ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, and ~~2024~~2025, was $23.0 million and $35.75 million, respectively. Estimated revenue expected to be recognized in the future related to deferred franchise fees for open salons as of ~~December~~March 31, ~~2025~~2026, is as follows (dollars in thousands):

Remainder of 2026	$	~~1,780~~863
2027	3,~~282~~255
2028	2,~~562~~464
2029	1,~~433~~157
2030	~~538~~419
Thereafter	12,~~581~~271
Total	$	1110,~~176~~429

3. DISCONTINUED OPERATIONS:

On June 30, 2022, the Company sold its Opensalon® Pro (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. The Company received no proceeds from the sale in the three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026. During the three and ~~six~~nine months ended ~~December~~March 31, ~~2024~~2025, the Company received ~~$7.5~~zero ~~million~~dollars and $8.5 million, respectively, of proceeds related to the number of salons migrating to Soham's Zenoti product. Income taxes have been allocated to continuing and discontinued operations based on the methodology required by accounting for income taxes guidance. There was no tax impact inrecorded for the ~~prior~~three ~~year~~and ~~periods~~nine months ended March 31, 2025, due to a valuation allowance. Cash provided by (used in) investing activities for the ~~six~~nine months ended ~~December~~March 31, ~~2024~~2025, includes $8.5 million of cash from discontinued operations.

4. 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.

Stock-Based Employee Compensation:

During the three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, and ~~2024~~2025, the Company granted restricted stock units as follows:

	Three Months Ended December 31,		Six Months Ended December 31,
	Three Months Ended March 31,		Nine Months Ended March 31,
	2025	2024	2025	2024
	2026	2025	2026	2025
Restricted stock units (RSUs)	1517,~~605~~239	783,~~800~~002	3956,~~705~~944	7881,~~800~~802

The RSUs granted during the three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, and ~~2024~~2025, vest after one year or in equal amounts over a three-year period subsequent to the grant date.

Total compensation cost for stock-based payment arrangements totaling $(0.32) million and $0.24 million, and $0.97 million and $12.60 million for the three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, and ~~2024~~2025, respectively, was recorded within general and administrative on the Condensed Consolidated Statements of Operations.

Stock Warrants Issued in Connection with Long-Term Debt:

In connection with the 2024 Credit Agreement (as defined in Note 9 to the unaudited Condensed 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 an aggregate 64,372 shares of Common Stock, at an exercise price equal to $23.86 per share. The warrants 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 ~~under~~if, ~~certain~~at ~~circumstances~~the ~~under~~time of exercise, there is no effective registration statement registering, or the ~~agreement~~prospectus therein is not available for, the issuance of the shares of Common Stock underlying the warrants.

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 an aggregate 64,372 shares of Common Stock, at an exercise price equal to $23.86 per share. The warrants are exercisable for a seven-year period beginning December 19, 2024. 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 valued at $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. 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 ~~December~~March 31, ~~2025~~2026, the Company has no intention of exercising either 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 the Company 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 immediately prior to any exercise (the Initial Warrant); and (ii) a warrant to purchase up to an additional 35,000 shares of Common Stock, at an exercise price of $24.20 per share (the Coverage Warrant). The Coverage Warrant is eligible to vest proportionally to the extent the Initial Warrant is 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 warrant is not remeasured in future periods as it meets the conditions for equity classification.

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 for a total of 12,567 shares. 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 (the Plan) intended to help protect the availability of certain tax attributes (including net operating loss carryforwards) by deterring acquisitions of the Company’s common stock above a specified ownership threshold. In connection with the adoption 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 in 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 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 becoming exercisable (an Acquiring Person) is 4.95% beneficial ownership, subject to customary exemptions, grandfathering, and Board discretion as set forth in the Rights Agreement; (ii) prior to the Distribution Date (as defined in the Rights Agreement), 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 Company one 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, which become 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 Rights Agreement; (v) upon certain business combination transactions following the occurrence of an Acquiring Person, Rights holders may have the right to purchase common stock of the acquiring company at a discount (a “flip-over” feature), subject to the terms of the Rights Agreement; (vi) the Rights are redeemable by the Board at $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 earlier redeemed or exchanged in accordance with the Rights Agreement.

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, 2025 or consolidated statements of operations or cash flows for the three years ended June 30, 2025 because (i) the Rights were issued to existing shareholders as a dividend with no proceeds received, (ii) the Rights were not exercised during the nine months ended March 31, 2026, and (iii) the Rights are contingently exercisable only upon the occurrence of specified events and, based on their terms, 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 nature of the costs.

5. INCOME TAXES:

A summary of the income tax (expense) benefit and corresponding effective tax rate is as follows:

	Three Months Ended December 31,						Six Months Ended December 31,
	Three Months Ended March 31,						Nine Months Ended March 31,
	2025			2024			2025			2024
	2026			2025			2026			2025
	(Dollars in thousands)
Income tax (expense) benefit	$	(~~1,003~~158)		$	~~(136)~~1		$	(1,~~539~~697)		$	8990
Effective tax rate	6817.7		%	39(0.84)		%	4540.90		%	56.32		%

The increase in the Company’s effective tax rate for the three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, primarily relates to the change in the Company's valuation allowance position during the year ended June 30, 2025, current period discrete tax expense related to share-based compensation, and the impact of tax credits. The income tax provision for the three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, is primarily a non-cash deferred tax expense, which is no longer offset by a valuation allowance as a result of the valuation allowance release that occurred for the year ended June 30, 2025.

On July 4, 2025, legislation known as the One Big Beautiful Bill Act (OBBBA) was signed into law. The OBBBA makes 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 three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026.

With limited exceptions, due to net operating loss carryforwards, our federal, state, and foreign tax returns are open to examination for all years since 2014, 2013, and 2016, respectively.

6. COMMITMENTS AND CONTINGENCIES:

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 retail employers, the Company has faced, and may continue to face, allegations of purported class-wide consumer and wage and hour violations.

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.

7. CASH, CASH EQUIVALENTS, AND RESTRICTED CASH:

The table below reconciles the cash and cash equivalents balances and restricted cash balances recorded within other current assets on the Condensed Consolidated Balance Sheets to the amount of cash, cash equivalents, and restricted cash reported on the Condensed Consolidated Statements of Cash Flows:

December 31,2025

June 30,2025

March 31,2026

June 30,2025

(Dollars in thousands)

Cash and cash equivalents

1822,~~385~~930

16,959

Restricted cash, included in other current assets (1)

18,~~159~~026

18,246

Total cash, cash equivalents, and restricted cash

3640,~~544~~956

35,205

_______________________________________________________________________________

(1)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.

8. 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 11 years with many leases renewable for an additional five to 10-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:

	Three Months Ended December 31,				Six Months Ended December 31,
	Three Months Ended March 31,				Nine Months Ended March 31,
	2025		2024		2025		2024
	2026		2025		2026		2025
	(Dollars in thousands)
Office rent (1)	$	~~679~~672	$	~~700~~737	$	12,~~433~~105	$	12,~~426~~164
Lease termination expense (2)	82227		2770		~~206~~432		79149
Lease liability benefit (3)	(5654)		(6581)		(~~111~~165)		(~~128~~209)
Franchise salon rent	~~292~~298		~~881~~313		48346		~~952~~1,264
Company-owned salon rent (4)	2,~~601~~479		~~606~~3,019		57,~~245~~725		~~884~~3,903
Total	$	3,~~598~~622	$	24,~~149~~058	$	610,~~821~~443	$	37,~~213~~271

_______________________________________________________________________________

(1)Rental income associated with the sublease of the corporate office space is recorded in other income and was $0.3 million for both three month periods ended ~~December~~March 31, ~~2025~~2026, and ~~2024~~2025, and $0.69 million for both ~~six~~nine month periods ended ~~December~~March 31, ~~2025~~2026, and ~~2024~~2025.

(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 13.

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 Condensed Consolidated Statements of Operations. For the three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, and ~~2024~~2025, franchise rental income and franchise rent expense were $1713.20 million and $2016.09 million, and $3447.6 million and $4158.75 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 4.7172 and 4.68 years, and the weighted average discount rate was 6.7388% and 6.45% for all salon operating leases as of ~~December~~March 31, ~~2025~~2026, and June 30, 2025, respectively.

As of ~~December~~March 31, ~~2025~~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 for Franchise Salons

Leases for Company-owned Salons

Corporate Leases

Total Operating Lease Payments

Sublease Income to be Received from Franchisees

Net Rent Commitments

Remainder of 2026

3314,~~178~~469

31,~~752~~886

~~689~~347

3716,~~619~~702

(3314,~~178~~469)

42,~~441~~233

2027

6053,~~317~~895

6,~~143~~513

1,401

6761,~~861~~809

(6053,~~317~~895)

7,~~544~~914

2028

5045,~~787~~598

4,~~372~~806

1,436

5651,~~595~~840

(5045,~~787~~598)

56,~~808~~242

2029

3936,~~914~~097

23,~~633~~055

1,472

4440,~~019~~624

(3936,~~914~~097)

4,~~105~~527

2030

2624,~~998~~836

1,~~402~~817

1,509

2928,~~909~~162

(2624,~~998~~836)

23,~~911~~326

Thereafter

3229,~~574~~162

~~362~~756

—

3229,~~936~~918

(3229,~~574~~162)

~~362~~756

Total future obligations

~~243~~204,~~768~~057

18,~~664~~833

6,~~507~~165

~~268~~229,~~939~~055

(~~243~~204,~~768~~057)

2524,~~171~~998

Less amounts representing interest

3529,~~752~~448

1,~~876~~974

~~571~~511

3831,~~199~~933

Present value of lease liability

~~208~~174,~~016~~609

16,~~788~~859

5,~~936~~654

~~230~~197,~~740~~122

Less short-term lease liability

5245,~~639~~365

6,~~155~~008

1,~~164~~185

5952,~~958~~558

Long-term lease liability

~~155~~129,~~377~~244

10,~~633~~851

4,~~772~~469

~~170~~144,~~782~~564

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 March 31, 2026, the maximum potential amount of future payments the Company could be required to make under these guarantees is approximately $4.8 million, and no liability has been recognized in the Consolidated Balance Sheets for these guarantees, as the probability of default is considered remote.

9. FINANCING ARRANGEMENTS:

The Company's debt consists of the following:

	Six Months Ended December 31, 2025	Fiscal Year 2025	Balance at December 31, 2025		Balance at June 30, 2025
	Nine Months Ended March 31, 2026	Fiscal Year 2026	Balance at March 31, 2026		Balance at June 30, 2025
	(Average cash interest rate %)		(Dollars in thousands)
Term loan (1)	8.6549%	9.14%	$	116,~~735~~435	$	118,875
Paid-in-kind interest			89,~~273~~671		5,376
Deferred financing fees (2)			(109,~~694~~932)		(12,174)
Term loan, net			~~114~~116,~~314~~174		112,077
Revolving credit facility (1)	8.6549%	9.14%	1,030		1,030
Fair value of warrants issued to lenders			(21,~~025~~880)		(2,314)
Total debt, net			~~113~~115,~~319~~324		110,793
Less: long-term debt, current portion			(2,~~100~~550)		(1,100)
Total long-term debt, net			$	~~111~~112,~~219~~774	$	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 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 expires June 24, 2029. The debt refinancing in June of 2024, ~~refinancing~~ 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 4 for additional details.

As of ~~December~~March 31, ~~2025~~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 ~~December~~March 31, ~~2025~~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 $2731.49 million and $19.0 million, respectively. The Company was in compliance with its covenants and other requirements of the financing arrangements as of ~~December~~March 31, ~~2025~~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 4.50% of the margin isas 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 quarterly payments totaling $1.1 million in fiscal year 2026 and $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 ~~six~~nine months ended ~~December~~March 31, ~~2025~~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.

10. 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 ~~December~~March 31, ~~2025~~2026, and June 30, 2025, the estimated fair value of the Company's cash, cash equivalents, restricted cash, receivables, inventory, deferred compensation assets, accounts payable and debt approximated their carrying values.

~~The~~Upon ~~Company recorded~~ the ~~estimated~~acquisition ~~fair value~~ of Alline, the ~~contingent~~Company ~~consideration~~recorded ~~liability assumed with~~ the ~~acquisition of Alline. The~~ estimated fair value of the contingent consideration liability isassumed ~~included~~ in the Condensed Consolidated Balance Sheets within other noncurrent liabilities. The earn-out liability is adjusted at fair value quarterly until settled utilizing the Monte Carlo simulation, and changes in fair value are reported in our Condensed Consolidated Statements of Operations. As of ~~December~~March 31, ~~2025~~2026, management's revised estimates indicated a fair value of zero dollars.

The change in the earn-out liability measured at fair value using significant unobservable inputs (Level 3) is 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 December 31, 2025	$	—
Earn-out liability at March 31, 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.

11. 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), 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 and consulting services agreements. 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):

Three Months Ended December 31,

Six Months Ended December 31,

Three Months Ended March 31,

Nine Months Ended March 31,

2025

2024

2025

2024

2026

2025

2026

2025

(Shares in thousands)

Denominator for basic EPS - weighted average common shares

2,~~482~~539

2,~~324~~499

2,~~461~~513

2,~~346~~350

Dilutive shares associated with option plans

~~380~~325

~~501~~503

~~361~~354

—

Denominator for diluted EPS - weighted average common shares and dilutive potential common shares

2,~~862~~864

23,~~825~~002

2,~~822~~867

2,~~346~~350

Options excluded from EPS calculation - anti-dilutive

~~104~~116

~~193~~188

~~137~~127

~~192~~191

12. 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's (CODM) ~~primary~~is ~~measures~~our ofPresident ~~segment performance are revenue~~ and ~~segment adjusted EBITDA. The Company’s~~ Chief Executive Officer ~~is the CODM~~. Revenue, expenses, and ~~segment~~operating ~~adjusted~~income ~~EBITDA~~(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. ~~The~~Our ~~Company's~~ CODM ~~does~~manages ~~not~~our ~~evaluate~~business ~~reportable~~primarily ~~segments~~by reviewing consolidated results by segment on a quarterly basis and using ~~assets~~those results along with forecasts and ~~capital~~other ~~expenditure~~non-financial information. ~~Segment~~in ~~adjusted~~our ~~EBITDA~~annual isbudgeting ~~defined~~process. asThe ~~income~~Company's ~~(loss)~~CODM ~~from~~does ~~continuing~~not ~~operations~~evaluate ~~before~~reportable ~~interest,~~segments ~~income~~using ~~taxes,~~assets ~~depreciation,~~and ~~amortization,~~capital ~~and~~expenditure ~~impairment~~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.

	Three Months Ended December 31, 2025						Six Months Ended December 31, 2025
	Three Months Ended March 31, 2026						Nine Months Ended March 31, 2026
	(Dollars in thousands)						(Dollars in thousands)
	Franchise		Company-owned		~~Consolidated~~Total		Franchise		Company-owned		~~Consolidated~~Total
Total revenue	$	3733,~~929~~306	$	19,~~188~~101	$	5752,~~117~~407	$	76109,~~676~~982	$	3958,~~399~~500	$	~~116~~168,~~075~~482
Expenses
Expenses (1)
General and administrative	$	98,~~182~~626	$	1,~~082~~349	$	~~10,264~~	$	1928,~~391~~017	$	23,~~224~~573	$	~~21,615~~
Rent	~~910~~894		2,~~688~~728		~~3,598~~		12,~~340~~234		58,~~481~~209		~~6,821~~
Non-margin expenses (1)	22,535		—		22,535		45,462		—		45,462
Other expenses (2)	18,221		—				63,683		—
Company-owned salon expense	—		13,~~727~~958		~~13,727~~		—		2842,~~495~~453		~~28,495~~
Depreciation and amortization	~~204~~196		~~592~~718		~~796~~		~~414~~610		1,~~150~~868		~~1,564~~
Operating income	$	5,~~098~~369	$	~~1,099~~348	$	65,~~197~~717	$	1015,~~069~~438	$	2,~~049~~397	$	1217,~~118~~835
Unallocated expense, net					(54,~~741~~982)						(1015,~~306~~288)
Total net income					$	~~456~~735					$	12,~~812~~547
Segment adjusted EBITDA	$	6,241	$	1,750	$	7,991	$	12,625	$	3,331	$	15,956

_______________________________________________________________________________

(1)~~Non-margin~~The ~~expenses~~significant ~~include~~expense ~~advertising~~categories ~~fund~~ and ~~franchise~~amounts ~~rent~~align ~~expenses~~with ~~which~~the ~~are~~segment-level ~~offset~~information inthat ~~total~~is ~~revenue~~regularly ~~and,~~provided asto ~~such,~~the ~~not~~chief ~~used~~operating asdecision amaker. ~~primary~~Intersegment ~~measure~~expenses ofare ~~performance~~included bywithin ~~our~~the ~~CODM~~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.

Financial information reconciling the Company's reportable operating segments Operating income to Adjusted EBITDA is shown in the table below.


	Three Months Ended March 31, 2025						Nine Months Ended March 31, 2025

	(Dollars in thousands)						(Dollars in thousands)

	Franchise		Company-owned		Total		Franchise		Company-owned		Total

Total revenue	$	38,004	$	18,953	$	56,957	$	126,548	$	23,188	$	149,736

Expenses (1)
General and administrative	$	9,863	$	1,372			$	33,644	$	2,780
Rent	962		3,096				3,198		4,073
Other expenses (2)	22,069		—				74,858		—
Company-owned salon expense	—		13,835				—		16,534
Depreciation and amortization	270		469				938		707
Long-lived asset impairment	—		—				352		—


Operating income (loss)	$	4,840	$	181	$	5,021	$	13,558	$	(906)	$	12,652
Unallocated expenses, net					(4,771)						(5,610)
Total net income					$	250					$	7,042

_______________________________________________________________________________

	Three Months Ended December 31, 2025						Six Months Ended December 31, 2025
	(Dollars in thousands)						(Dollars in thousands)
	Franchise		Company-owned		Consolidated		Franchise		Company-owned		Consolidated
Operating income	$	5,098	$	1,099	$	6,197	$	10,069	$	2,049	$	12,118
Depreciation and amortization	204		592		796		414		1,150		1,564
Other, net	517		—		517		759		—		759
Stock-based compensation expense	280		—		280		910		—		910
Discrete items (1)	142		59		201		473		132		605
Segment adjusted EBITDA	$	6,241	$	1,750	$	7,991	$	12,625	$	3,331	$	15,956

(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.

(1)Discrete items include one-time professional fees and legal settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired right of use asset and lease termination fees.

	Three Months Ended December 31, 2024						Six Months Ended December 31, 2024
	(Dollars in thousands)						(Dollars in thousands)
	Franchise		Company-owned		Consolidated		Franchise		Company-owned		Consolidated
Total revenue	$	43,269	$	3,450	$	46,719	$	88,544	$	4,235	$	92,779
Expenses
General and administrative	$	9,799	$	1,356	$	11,155	$	23,781	$	1,408	$	25,189
Rent	1,513		636		2,149		2,236		977		3,213
Non-margin expenses (1)	25,512		—		25,512		52,789		—		52,789
Company-owned salon expense	—		1,946		1,946		—		2,699		2,699
Depreciation and amortization	307		153		460		668		238		906
Long-lived asset impairment	—		—		—		352		—		352
Operating income (loss)	$	6,138	$	(641)	$	5,497	$	8,718	$	(1,087)	$	7,631
Unallocated expenses, net					2,148						(839)
Total net income					$	7,645					$	6,792
Segment adjusted EBITDA	$	6,414	$	725	$	7,139	$	14,400	$	376	$	14,776

(1)Non-margin 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.

Financial information reconciling the Company's reportable operating segments Operating income (loss) to Adjusted EBITDA is shown in the table below.

	Three Months Ended December 31, 2024						Six Months Ended December 31, 2024
	(Dollars in thousands)						(Dollars in thousands)
	Franchise		Company-owned		Consolidated		Franchise		Company-owned		Consolidated
Operating income (loss)	$	6,138	$	(641)	$	5,497	$	8,718	$	(1,087)	$	7,631
Depreciation and amortization	307		153		460		668		238		906
Long-lived asset impairment	—		—		—		352		—		352
Other, net	(307)		—		(307)		370		—		370
Stock-based compensation expense	174		—		174		1,604		—		1,604
Discrete items (1)	102		1,213		1,315		2,688		1,225		3,913
Segment adjusted EBITDA	$	6,414	$	725	$	7,139	$	14,400	$	376	$	14,776

_______________________________________________________________________________

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.

2221

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:

	December 31,2025		June 30,2025
	March 31,2026		June 30,2025
FRANCHISE SALONS:
Supercuts	1,~~667~~648		1,711
SmartStyle/Cost Cutters in Walmart stores	~~1,021~~998		1,049
Portfolio Brands	~~791~~779		816
Total North American salons	3,~~479~~425		3,576
Total International salons (1)	72		71
Total franchise salons	3,~~551~~497		3,647
as a percent of total franchise and company-owned salons	92.78	%	92.5	%
COMPANY-OWNED SALONS:
Supercuts	9796		100
Portfolio Brands	~~181~~177		194
Total company-owned salons	~~278~~273		294
as a percent of total franchise and company-owned salons	7.32	%	7.5	%
Total franchise and company-owned salons	3,~~829~~770		3,941

_______________________________________________________________________________

(1)Canadian and Puerto Rican salons are included in the North American salon totals.

13. ACQUISITIONS:

On December 19, 2024, the Company transferred consideration to acquire 100 percent of the equity interests of Alline (the Alline acquisition), its largest franchisee, consisting of 314 salons. The transaction provides Regis with a turn-key operating infrastructure and gets the Company closer to salon operations alongside franchisees and the salon portfolio provides a testing ground for brand and operational 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 unaudited Condensed Consolidated Statements of Operations as a component of operating income for the ~~three~~nine ~~and six~~ months ended ~~December~~March 31, ~~2024~~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, available information, 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 to the 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 to these allocations in the three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026.

The fair value of total consideration transferred by the Company upon acquisition is $22.6 million, as detailed below.

2322


Consideration	(Dollars in thousands)

Cash, net of cash acquired (1)	$	18,621
Equity instruments (140,552 of Regis common shares) (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 shares (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 in the Company's Annual Report on Form 10-K for the year ended June 30, 2025. As of ~~December~~March 31, ~~2025~~2026, the Company determined the value of the contingent consideration arrangement is $0. ~~and~~The Company recognized a gain on earn-out liability of $1.0 million in a prior quarter which is included in our Condensed Consolidated Statements of Operations for the ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026. 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 Condensed Consolidated Statements of Operations. Refer to Note 10 to the Condensed Consolidated Financial Statements for additional information regarding the valuation.

2423

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 includes $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 following table provides revenues and operating income from Alline that are included in our Condensed Consolidated Financial Statements:

	Three Months Ended December 31,				Six Months Ended December 31,
	Three Months Ended March 31,				Nine Months Ended March 31,
	2025		2024		2025		2024
	2026		2025		2026		2025
	(Dollars in thousands)
Total revenues	$	18,~~557~~552	$	218,~~703~~290	$	3856,~~086~~638	$	220,~~703~~993
Operating income	~~910~~601		~~480~~786		2,~~095~~696		~~480~~1,266

The following table presents pro forma information as if the Alline acquisition had occurred on July 1, 2024:

Three Months Ended December 31, 2024

Six Months Ended December 31, 2024

Three Months Ended March 31, 2025

Nine Months Ended March 31, 2025

Total revenues

6256,~~161~~957

~~125~~182,~~719~~676

Operating income

85,~~024~~021

1015,~~861~~703

2524

Item 2. 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) provides management's perspective on our financial condition, results of operations, liquidity and certain other factors that may affect our future results. This MD&A should be read in conjunction with the MD&A included in our June 30, 2025, Annual Report on Form 10-K and other documents filed or furnished with the SEC during the current fiscal year.

MD&A includes certain non-GAAP measures. The following items have been excluded from our non-GAAP adjusted EBITDA results: stock-based compensation expense, discontinued operations, one-time professional fees and legal settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired right of use asset, lease termination fees, and asset retirement obligation costs.

MANAGEMENT'S OVERVIEW

Regis Corporation (NasdaqGM:RGS) is a leader in the beauty salon industry. As of ~~December~~March 31, ~~2025~~2026, the Company franchised or owned 3,~~829~~770 locations, primarily in North America. Our locations consisted of 3,~~551~~497 franchised salons and ~~278~~273 company-owned salons. Regis’ franchised and corporate locations operate under concepts such as Supercuts®, SmartStyle®, Cost Cutters®, Roosters® and First Choice Haircutters®. As of ~~December~~March 31, ~~2025~~2026, the Company had 1,~~732~~655 employees of which 1,~~565~~497 were acquired as part of the Alline acquisition.

CRITICAL ACCOUNTING ESTIMATES

There have been no material changes to our critical accounting estimates from those described under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025.

Goodwill

The Company assesses goodwill impairment on an annual basis, during the Company's fourth fiscal quarter, 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 value. An interim impairment analysis was not required in the three months ended ~~December~~March 31, ~~2025~~2026. As of ~~December~~March 31, ~~2025~~2026, and June 30, 2025, the franchise reporting unit had goodwill of $~~173~~172.18 million and $173.21 million, respectively, and the company-owned reporting unit had goodwill of $10.3 million as of both ~~December~~March 31, ~~2025~~2026, and June 30, 2025.

Our significant accounting policies can be found in Note 1 to the Consolidated Financial Statements contained in Part II, Item 8 of the June 30, 2025, Annual Report on Form 10-K. There have been no changes to our critical accounting policies from those disclosed on our Form 10-K for the year ended June 30, 2025.

2625

RESULTS OF OPERATIONS

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 unaudited Condensed 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 the ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, a net 96150 franchise salons and 1621 company-owned salons have closed.

The following table summarizes system-wide revenue and system-wide same-store sales by concept:

	Three Months Ended December 31,						Six Months Ended December 31,
	Three Months Ended March 31,						Nine Months Ended March 31,
	2025			2024			2025			2024
	2026			2025			2026			2025
	(Dollars in millions)
System-wide revenue	$	~~260~~261.81		$	~~274~~266.19		$	~~534~~796.56		$	~~559~~826.74
Supercuts	25.0		%	01.51		%	23.2		%	0.78		%
SmartStyle	(63.3)			(67.4)			(54.26)			(6.58)
Portfolio Brands	~~(0.~~1).4			(20.49)			0.58			(1.75)
Total system-wide same-store sales (1)	(02.1)6		%	(1.61)		%	01.41		%	(1.43)		%

_______________________________________________________________________________

(1)System-wide same-store sales are calculated as the total change in sales for system-wide franchise and company-owned locations that were open on a specific day of the week during the current period and the corresponding prior period. Quarterly system-wide same-store sales are the sum of the system-wide same-store sales computed on a daily basis. Franchise salons that do not report daily sales are excluded from same-store sales. System-wide same-store sales are calculated in local currencies to remove foreign currency fluctuations from the calculation.

2726

Condensed Consolidated Results of Operations (Unaudited)

The following table sets forth, for the periods indicated, certain information derived from our unaudited Condensed 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.

	Three Months Ended December 31,									Six Months Ended December 31,
	Three Months Ended March 31,									Nine Months Ended March 31,
	2025		2024		2025		2024			2025		2024		2025		2024
	2026		2025		2026		2025			2026		2025		2026		2025
	(dollars in millions)				% of TotalRevenue				Increase (Decrease)	(dollars in millions)				% of TotalRevenue				Increase (Decrease)
Royalties	$	13.62	$	1413.85	2325.82	%	3123.7	%	~~(790)~~150	$	2740.79	$	3044.50	2324.93	%	3229.94	%	(~~900~~510)
Fees	1.89		2.94		3.26		64.2		(~~300~~60)	3.5.4		57.37		3.02		5.71		(~~270~~190)
Advertising fund contributions	5.32		5.52		9.39		119.81		~~(250)~~80	1016.91		1116.13		9.46		1210.09		(~~260~~130)
Franchise rental income	1713.20		2016.09		3024.18		4229.86		(~~1,270~~480)	3447.6		4158.75		2928.82		4439.91		(1,~~510~~090)
Company-owned salon revenue	19.21		319.50		3336.65		733.53		~~2,610~~320	3958.45		423.2		3334.97		415.5		21,~~940~~920
General and administrative	10.30		11.2		1819.01		2419.06		(~~600~~50)	2131.6		2536.24		18.68		2724.23		(~~860~~550)
Rent	3.6		24.1		6.39		47.52		~~180~~(30)	610.84		37.23		56.92		3.4.9		~~250~~130
Advertising fund expense	5.32		5.52		9.39		119.81		~~(250)~~80	1016.91		1116.13		9.46		1210.09		(~~260~~130)
Franchise rent expense	1713.20		2016.09		3024.18		4229.86		(~~1,270~~480)	3447.6		4158.75		2928.82		4439.91		(1,~~510~~090)
Company-owned salon expense (1)	1314.70		113.98		2426.07		424.12		~~1,990~~250	2842.5		216.75		2425.52		211.90		21,~~160~~420
Depreciation and amortization	0.89		0.57		1.47		1.12		3050	12.65		01.96		1.45		1.01		40
Long-lived asset impairment	—		—		—		—		—	—		0.4		—		0.43		(4030)
Operating income (2)	65.27		5.50		10.9		118.8		~~(90)~~210	1217.18		712.67		10.46		8.25		~~220~~210
Interest expense	(5.30)		(45.81)		(9.35)		(108.39)		~~(100)~~60	(1015.56)		(914.78)		(9.03)		(109.59)		(~~150~~60)
Gain on earn-out liability	—		—		—		—		—	1.0		—		0.96		—		9060
Other, net	0.52		(0.3)		0.94		(0.6)5		~~150~~(10)	01.80		0.47		0.76		0.45		3010
Income tax (expense) benefit (3)	(1.0.2)		~~(0.1)~~—		6817.7		39(0.84)		N/A	(1.57)		0.1		4540.90		56.32		N/A
Income (loss) from continuing operations (2)	0.57		0.23		01.93		0.45		5080	12.85		(1.64)		1.65		(10.79)		~~330~~240
Income from discontinued operations	—		~~7.4~~—		—		~~15.8~~—		~~(1,580)~~—	—		8.4		—		95.16		(~~910~~560)
Net income (2)	0.57		70.63		01.93		160.35		~~(1,540)~~80	12.85		67.80		1.65		74.37		(~~570~~320)

_______________________________________________________________________________

(1)Includes cost of services and products sold to guests in our company-owned salons. Excludes general and administrative expense, rent and depreciation and amortization related to company-owned salons.

(2)Total is a recalculation; line items calculated individually may not sum to total due to rounding.

2827

(3)Computed as a percent of income (loss) from continuing operations before income taxes. The income tax basis point change is noted as not applicable (N/A) because the discussion within the MD&A is related to the effective income tax rate.

2928

Three and ~~Six~~Nine Months Ended ~~December~~March 31, ~~2025~~2026, Compared with Three and ~~Six~~Nine Months Ended ~~December~~March 31, ~~2024~~2025

Royalties

During the three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, royalties decreased $10.23 million and $23.81 million, or 82.12% and 97.20%, respectively, primarily due to a decrease in franchise salon count caused by franchise salon closures. ~~and~~The decrease for the nine months ended March 31, 2026, includes a greater impact from the Alline acquisition conversion of franchise salons to company-owned as these salons converted in December 2024.

Fees

During the three ~~and six~~ months ended ~~December~~March 31, ~~2025~~2026, fees decreased $10.15 million, ~~and~~or $120.8%, primarily due to salon closures. During the nine months ended March 31, 2026, fees decreased $2.3 million, or 3729.9%, ~~and~~as ~~34.0%,~~a ~~respectively~~result of salon closures in the current year, ~~primarily~~as ~~due~~well toas terminated franchise fees related to the Alline acquisition in the prior year ~~periods and salon closures~~period.

Advertising Fund Contributions

During the three ~~and six~~ months ended ~~December~~March 31, ~~2025~~2026, advertising fund contributions ~~decreased~~remained $0flat compared to the prior year period.2 ~~million~~During ~~and~~the nine months ended March 31, 2026, advertising fund contributions decreased $0.2 million, or ~~3.6% and~~ 1.82%, ~~respectively,~~ primarily due to lower salon count.

Franchise Rental Income

During the three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, franchise rental income decreased $23.89 million and $710.19 million, or 1423.01% and 1718.06%, respectively, primarily due to ~~the~~franchisees ~~decrease~~signing intheir ~~franchise~~own ~~salon~~leases ~~count~~and ~~caused~~the bydecrease in franchise salon ~~closures and the Alline acquisition~~count.

Company-Owned Salon Revenue

During the three ~~and six~~ months ended ~~December~~March 31, ~~2025~~2026, company-owned salon revenue increased $150.71 million, ~~and~~or ~~$35~~0.25%, ~~million~~primarily due to the closure of underperforming salons. During the nine months ended March 31, ~~respectively~~2026, ~~from~~company-owned ~~$3.5~~salon ~~million~~revenue toincreased $1935.23 million, ~~and~~from $423.2 million to $3958.45 million, ~~respectively,~~ due to the increase in company-owned salon count ~~because~~related ofto the Alline acquisition.

General and Administrative

General and administrative expense for the three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, decreased $01.92 million and $34.68 million, or 810.07% and 1413.32%, respectively, primarily due to lower ~~broker~~corporate ~~fees, severance, and stock-based~~ compensation ~~expense~~expenses in the current year period and lapping of education events, offset partially by increased company-owned general and administrative expense.

Rent

~~Rent~~During ~~expense~~the ~~increased~~three ~~$1.5~~months ~~million~~ended ~~and~~March 31, 2026, rent expense decreased $30.65 million, or 7112.42% ~~and 112.5%~~, ~~respectively,~~primarily ~~during~~due to the ~~three~~closure ~~and~~of ~~six~~underperforming company-owned salons. During the nine months ended ~~December~~March 31, ~~2025~~2026, rent expense increased $3.1 million, or 42.5%, primarily as a result of rent expense associated with the salons from the Alline acquisition.

Advertising Fund Expense

During the three ~~and six~~ months ended ~~December~~March 31, ~~2025~~2026, advertising fund expense ~~decreased~~remained $0flat compared to the prior year period.2 ~~million~~During ~~and~~the nine months ended March 31, 2026, advertising fund expense decreased $0.2 million, or ~~3.6% and~~ 1.82%, ~~respectively,~~ primarily due to lower salon count.

3029

Franchise Rent Expense

During the three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, franchise rent expense decreased $23.89 million and $710.19 million, or 1423.01% and 1718.06%, respectively, primarily due to ~~the~~franchisees ~~decrease~~signing intheir ~~franchise~~own ~~salon~~leases ~~count~~and ~~caused~~the bydecrease in franchise salon ~~closures and the Alline acquisition~~count.

Company-Owned Salon Expense

Company-owned salon expense, for the three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, increased $110.82 million and $2526.80 million from $113.98 million to $1314.70 million and from $216.75 million to $2842.5 million, respectively, primarily due to the Alline acquisition in the prior year period.

Depreciation and Amortization

Depreciation and amortization for the three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, increased $0.32 million and $0.79 million, or 6028.06% and 7756.83%, respectively, primarily due to depreciation expense associated with the assets acquired in the Alline acquisition.

Long-Lived Asset Impairment

In the three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, the Company did not record any long-lived asset impairments. In the ~~three~~nine ~~and six~~ months ended ~~December~~March 31, ~~2024~~2025, the Company recorded long-lived asset impairment charges of $0 ~~and $0~~.4 million, ~~respectively,~~ related to the right-of-use asset associated with the corporate office lease.

Interest Expense

~~The~~For the three months ended March 31, 2026, interest expense decreased $0.51 million ~~and~~or 2.0%, primarily due to declining interest rates. The $0.8 million increase in interest expense for the ~~three~~nine ~~and six~~ months ended ~~December~~March 31, ~~2025~~2026, ~~respectively,~~ was primarily due to higher debt outstanding, ~~compared~~offset topartially ~~the~~by ~~three~~declining ~~and six months ended December 31, 2024~~rates. Cash interest ~~increased~~decreased $0.2 million for the three months ended March 31, 2026, and ~~six~~remained flat for the nine months ended ~~December~~March 31, ~~2025~~2026, compared to the prior year periods.

Gain on Earn-Out Liability

The $1.0 million gain on earn-out liability in the ~~six~~nine months ended ~~December~~March 31, ~~2025~~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 primarily relates to corporate sublease income and foreign currency gains and losses. Other, net ~~increased~~decreased $0.81 million and increased $0.43 million, respectively, in the three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, primarily due to aforeign ~~higher unfavorable~~ currency ~~adjustment~~gains inand ~~the~~losses ~~prior year periods~~adjustments.

Income Tax (Expense) Benefit

During the three months ended ~~December~~March 31, ~~2025~~2026, the Company recognized a tax expense of $1.0.2 million, with a corresponding effective tax rate of 6817.7%, as compared to recognizing a small tax ~~expense~~benefit ~~of $0.1 million,~~ with a corresponding effective tax rate of 39(0.84)% during the three months ended ~~December~~March 31, ~~2024~~2025. During the ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, the Company recognized a tax expense of $1.57 million, with a corresponding effective tax rate of 4540.90%, as compared to recognizing a tax benefit of $0.1 million, with a corresponding effective tax rate of 56.32% during the ~~six~~nine months ended ~~December~~March 31, ~~2024~~2025. See Note 5 to the unaudited Condensed Consolidated Financial Statements.

Income from Discontinued Operations

Income from discontinued operations in the ~~three~~nine ~~and six~~ months ended ~~December~~March 31, ~~2024~~2025, relates to proceeds received from the sale of OSP related to the number of salons migrating to the Zenoti platform. See Note 3 to the unaudited Condensed Consolidated Financial Statements.

3130

Results of Operations by Segment

Based on our internal management structure, we report two segments: franchise and company-owned salons. See Note 12 to the unaudited Condensed Consolidated Financial Statements. Significant results of continuing operations are discussed below for each of these segments.

Franchise Salons

	Three Months Ended December 31,								Six Months Ended December 31,
	Three Months Ended March 31,								Nine Months Ended March 31,
	2025			2024			Decrease (1)		2025			2024			Decrease (1)
	2026			2025			Decrease (1)		2026			2025			Decrease (1)
	(Dollars in millions)								(Dollars in millions)
Royalties	$	13.62		$	1413.85		$	(10.23)	$	2740.79		$	3044.50		$	(23.81)
Fees	1.89			2.94			(10.15)		3.5.4			57.37			(12.83)
Advertising fund contributions	5.32			5.52			~~(0.2)~~—		1016.91			1116.13			(0.2)
Franchise rental income	1713.20			2016.09			(23.89)		3447.6			4158.75			(710.19)
Total franchise revenue (1)	$	3733.93		$	4338.30		$	(5.4.7)	$	76110.70		$	88126.5		$	(1116.85)
Franchise same-store sales (2)	(02.4)0		%	(10.57)		%			0.28		%	(1.31)		%
Franchise adjusted EBITDA	$	6.2		$	6.43		$	(0.21)	$	1218.69		$	1420.47		$	(1.8)
Total franchise salons	3,~~551~~497			3,~~925~~776			(~~374~~279)

_______________________________________________________________________________

(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. Quarterly 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.

Three and ~~Six~~Nine Months Ended ~~December~~March 31, ~~2025~~2026, Compared with Three and ~~Six~~Nine Months Ended ~~December~~March 31, ~~2024~~2025

Franchise Revenue

Franchise revenue decreased $5.4.7 million and $1116.85 million during the three and ~~six~~nine months ended ~~December~~March 31, ~~2025.~~2026, ~~The~~primarily due to the decrease in franchise ~~revenue~~rental ~~during~~income ~~the~~due ~~three~~to ~~and~~franchisees ~~six~~signing ~~months~~their ~~ended~~own ~~December 31~~leases, ~~2025,~~and ~~was primarily due to~~ the decrease in franchise salon count ~~caused by salon closures and the Alline acquisition~~..

Franchise Adjusted EBITDA

During the three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, franchise adjusted EBITDA totaled $6.2 million and $1218.69 million, a decrease of $0.21 million and $1.8 million, respectively, compared to the three and ~~six~~nine months ended ~~December~~March 31, ~~2024~~2025. The decline in the three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, was primarily due to adecreases ~~decrease~~ in royalties and fees, offset partially by decreased general and administrative expenses.

3231

Company-Owned Salons

	Three Months Ended December 31,								Six Months Ended December 31,
	Three Months Ended March 31,								Nine Months Ended March 31,
	2025			2024			Increase (Decrease) (1)		2025			2024			Increase (1)
	2026			2025			Increase (Decrease) (1)		2026			2025			Increase (1)
	(Dollars in millions)								(Dollars in millions)
Company-owned salon revenue	$	19.21		$	319.50		$	150.71	$	3958.45		$	423.2		$	35.23
Company-owned salon adjusted EBITDA	$	1.8		$	0.7		$	1.1	$	3.3		$	0.4		$	2.9
Company-owned same-store sales comps	9.6		%	(6.8)		%			5.1		%	(6.7)		%
Total company-owned salons	278			323			(45)
Company-owned salon adjusted EBITDA	$	1.4		$	0.8		$	0.6	$	4.8		$	1.2		$	3.6
Total company-owned salons	273			311			(38)

_______________________________________________________________________________

(1)Total is a recalculation; line items calculated individually may not sum to total due to rounding.

Three and ~~Six~~Nine Months Ended ~~December~~March 31, ~~2025~~2026, Compared with Three and ~~Six~~Nine Months Ended ~~December~~March 31, ~~2024~~2025

Company-Owned Salon Revenue

~~Company~~During the three months ended March 31, 2026, company-owned salon revenue increased $150.71 million, ~~and~~primarily due to the closure of underperforming salons. Company-owned salon revenue increased $35.23 million during the ~~three~~nine ~~and six~~ months ended ~~December~~March 31, ~~2025~~2026, ~~respectively,~~ primarily due to the impact of the Alline acquisition.

Company-Owned Salon Adjusted EBITDA

In the three and ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, company-owned salon adjusted EBITDA improved $10.16 million and $23.96 million, respectively, primarily due to income generated by the salons acquired in the Alline acquisition ~~generating~~in ~~income for~~ the current year periods.

3332

LIQUIDITY AND CAPITAL RESOURCES

InThe ~~June 2024, the~~ Company ~~entered~~has ~~into~~ a credit agreement with TCW Asset Management Company, LLC, and MidCap Financial Trust, which matures in June 2029. 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.

Sources of Liquidity

Funds generated by operating activities, available cash and cash equivalents and our credit agreement 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 ~~December~~March 31, ~~2025~~2026, cash and cash equivalents were $1822.49 million, with $1721.69 million and $01.80 million within the United States and Canada, respectively.

As of ~~December~~March 31, ~~2025~~2026, the Company's borrowing arrangements include a $116.74 million term loan, $89.37 million of paid-in-kind interest and a $25.0 million revolving credit facility that matures in June 2029. As of ~~December~~March 31, ~~2025~~2026, the unused available credit under the revolving credit facility was $19.0 million, and total available liquidity, net of the $10.0 million minimum liquidity covenant, was $2731.49 million. See Note 9 to the unaudited Condensed Consolidated Financial Statements.

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.

Cash Requirements

The Company's most significant contractual cash requirements as of ~~December~~March 31, ~~2025~~2026, were lease commitments and interest payments. See Notes 8 and 9 to the unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.

3433

Cash Flows

Cash Flows from Operating Activities

During the ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, cash provided by operating activities was $38.9 million compared to $07.80 million in the ~~six~~nine months ended ~~December~~March 31, ~~2024~~2025, primarily due to higher operating income in the current year period, offset partially by cash accumulated in the ad fund in the prior year.

Cash Flows from Investing Activities

During the ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, cash used in investing activities of $1.24 million was primarily due to capital expenditures. During the ~~six~~nine months ended ~~December~~March 31, ~~2024~~2025, cash used in investing activities of $10.69 million was primarily related to the $18.6 million used in the Alline acquisition, partially offset by proceeds from the sale of OSP of $8.5 million.

Cash Flows from Financing Activities

During the ~~six~~nine months ended ~~December~~March 31, ~~2025~~2026, cash used in financing activities was $1.47 million, primarily as a result of the repayment of long-term debt of $2.14 million, partially offset by proceeds from the issuance of common stock. During the ~~six~~nine months ended ~~December~~March 31, ~~2024~~2025, cash provided by financing activities was $7.72 million, primarily as a result of $15.0 million of proceeds from the issuance of long-term debt and $4.3 million of borrowings under the revolving credit facility partially offset by repayments of the revolving credit facility of $10.2 million.

Financing Arrangements

See Note 9 of the Notes to the unaudited Condensed Consolidated Financial Statements included in this Quarterly Report on Form 10-Q for the quarter ended ~~December~~March 31, ~~2025~~2026, and Note 8 of the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025, for additional information regarding our financing arrangements.

Debt to Capitalization Ratio

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 quarter end, was as follows:

	Debt toCapitalization (1)
December 31, 2025	40.0	%
March 31, 2026	40.2	%
June 30, 2025	40.3	%

_______________________________________________________________________________

(1)Excludes the long-term lease liability as that liability is offset by the ROU asset.

Share Repurchase Program

In May 2000, the Board approved a stock repurchase program with no stated expiration date. Since that time and through ~~December~~March 31, ~~2025~~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 Company last purchased shares through this program in fiscal year 2020. As of ~~December~~March 31, ~~2025~~2026, a total accumulated 1.5 million shares have been cumulatively repurchased for $595.4 million. At ~~December~~March 31, ~~2025~~2026, $54.6 million remain outstanding under the approved stock repurchase program. The Company does not expect to repurchase shares in fiscal year 2026.

3534

SAFE HARBOR PROVISIONS UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This Quarterly Report on Form 10-Q, as well as information included in, or incorporated by reference from, future filings by the Company with the Securities and Exchange Commission 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." 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; 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 ability to realize the anticipated benefits of the Alline acquisition; reliance on franchise royalties and overall success of our franchisees’ salons; our salons' dependence on a third-party supplier agreement for merchandise; our and our franchisees' ability to attract, train and retain talented stylists and salon leaders; the success of our franchisees, which operate independently; data security and privacy compliance and our ability to manage cyber threats and protect the security of potentially sensitive information about our guests, franchisees, employees, vendors or Company information; the ability of the Company to maintain a satisfactory relationship with Walmart; marketing efforts to drive traffic to our franchisees' 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 planning or implementation of our new enterprise resource planning system; our ability to minimize risks associated with owning and operating additional salons; ability to generate sufficient cash flow to satisfy our debt service obligations; compliance with covenants in our financing arrangement; premature termination of agreements with our franchisees; the continued ability of the Company to implement cost reduction initiatives and achieve expected cost savings; continued ability to compete in our business markets; potential liabilities related to the employee retention credit received by Alline; reliance on our management team and other key personnel~~, including a successful search for a new CEO~~; the ability to attract and retain key personnel; the continued ability to maintain an effective system of internal control over financial reporting; changes in tax exposure; the ability of our Tax Preservation Plan to protect the future availability of the Company's tax assets; potential litigation and other legal or regulatory proceedings; or other factors not listed above. Additional information concerning potential factors that could affect future financial results is set forth under Item 1A on Form 10-K. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. However, your attention is directed to any further disclosures made in our subsequent annual and periodic reports filed or furnished with the SEC on Forms 10-K, 10-Q, and 8-K and Proxy Statements on Schedule 14A.

3635

Item 3. Quantitative and Qualitative Disclosures About Market Risk

We are exposed to market risk from changes in interest rates and changes in foreign currency exchange rates. There has been no material change to the factors discussed within Part II, Item 7A in the Company's June 30, 2025, Annual Report on Form 10-K.

Item 4. 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 Securities Exchange Act of 1934, as amended (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 ~~December~~March 31, ~~2025~~2026.

Changes in Internal Control Over Financial Reporting

There were no material 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.

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PART II — OTHER INFORMATION

Item 1. 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. 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.

Item 1A. Risk Factors

There have been no material changes in our risk factors from those disclosed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended June 30, 2025, except as follows: The risk factor related to the search for a new Chief Executive Officer has been removed as the Company has appointed a new CEO, Susan Lintonsmith, as previously disclosed in our Current Report on Form 8-K filed on March 16, 2026.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Share Repurchase Program

In May 2000, the Board approved a stock repurchase program with no stated expiration date. Since that time and through ~~December~~March 31, ~~2025~~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 Company last purchased shares through this program in fiscal year 2020. As of ~~December~~March 31, ~~2025~~2026, a total accumulated 1.5 million shares have been repurchased for $595.4 million. At ~~December~~March 31, ~~2025~~2026, $54.6 million remain outstanding under the approved stock repurchase program. The Company does not expect to repurchase shares in fiscal year 2026.

Item 5. Other Information

During the three months ended ~~December~~March 31, ~~2025~~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.

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Item 6. Exhibits

Exhibit 10.1						~~Amended~~President and ~~Restated~~CEO ~~1991~~Offer ~~Contributory~~Letter ~~Stock~~Agreement, ~~Purchase~~dated ~~Plan~~February 18, as2026, ~~amended~~between ~~and~~the ~~restated~~Company ~~October~~and ~~28,~~Susan ~~2025~~Lintonsmith. (Incorporated by reference to ~~Appendix~~Exhibit B10.1 ofto the Company’s ~~Proxy~~Current ~~Statement~~Report on ~~Definitive~~ Form ~~14A~~8-K filed onMarch ~~September 17~~16, ~~2025~~2026.)
Exhibit 10.2						Letter Agreement for Chief Operating Officer, dated March 13, 2026, between the Company and Jim Lain. (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K filed March 16, 2026.)
Exhibit 31.1						President and Chief Executive Officer of Regis Corporation: Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 31.2						Executive Vice President and Chief Financial Officer of Regis Corporation: Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 32						Chief Executive Officer and Chief Financial Officer of Regis Corporation: Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 101						The following financial information from Regis Corporation's Quarterly Report on Form 10-Q for the quarterly period ended ~~December~~March 31, ~~2025~~2026, formatted in Inline Xtensible Business Reporting Language (iXBRL) and filed electronically herewith: (i) the Condensed Consolidated Balance Sheets; (ii) the Condensed Consolidated Statements of Operations; (iii) the Condensed Consolidated Statements of Comprehensive Income; (iv) the Condensed Consolidated Statements of Shareholders' Equity; (v) the Condensed Consolidated Statements of Cash Flows; and (vi) the Notes to Condensed Consolidated Financial Statements.
Exhibit 104						The cover page from Regis Corporation's Quarterly Report on Form 10-Q for the quarterly period ended ~~December~~March 31, ~~2025~~2026, formatted in iXBRL (included as Exhibit 101).

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SIGNATURES

Pursuant to the requirements 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.

Date: February 5, 2026	By:	/s/ KERSTEN D. ZUPFER
Date: May 13, 2026	By:	/s/ KERSTEN D. ZUPFER
		Kersten D. Zupfer,
		Executive Vice President and Chief Financial Officer
		(Principal Accounting Officer)

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