Regis (NASDAQ:RGS) Posts Earnings Results, Beats Expectations By $0.87 EPS

Regis (NASDAQ:RGS) released its quarterly earnings data on Tuesday. The company reported $1.04 earnings per share for the quarter, beating analysts’ consensus estimates of $0.17 by $0.87, FiscalAI reports. Regis had a return on equity of 3.60% and a net margin of 52.01%.The firm had revenue of $56.00 million during the quarter, compared to analyst estimates of $53.00 million.

Here are the key takeaways from Regis’ conference call:

• Fiscal 2026 profitability and cash generation improved. Adjusted EBITDA rose to $32.8 million, while unrestricted cash from operations more than doubled to $13.5 million, supporting debt repayment and refinancing efforts.
• Supercuts delivered its fifth consecutive year of same-store sales growth, reaching 3% for fiscal 2026. Management said its brand, digital, loyalty, and operational initiatives have moved from planning into execution, although growth was driven primarily by higher average ticket rather than traffic.
• The franchise network continued to contract, with 207 closures and only eight openings for a net decline of 199 salons in fiscal 2026. Management expects fiscal 2027 closures to be broadly similar for franchises, though it anticipates fewer closures among company-owned salons.
• Regis is prioritizing traffic growth and operational improvements across its portfolio, including a new Supercuts marketing campaign, online scheduling and loyalty initiatives, company-owned salon productivity efforts, and targeted SmartStyle pilots.
• Refinancing remains a key priority because the company carries approximately $128 million of funded debt, or about 3.1 times adjusted EBITDA net of cash. Management is evaluating all options but provided no specific transaction or terms, while lease costs continue to rise through inflationary renewals.

Regis Trading Up 5.5%

RGS opened at $28.79 on Wednesday. Regis has a one year low of $19.31 and a one year high of $31.50. The company has a debt-to-equity ratio of 1.36, a current ratio of 0.59 and a quick ratio of 0.57. The business has a 50 day simple moving average of $27.69 and a two-hundred day simple moving average of $26.28. The firm has a market capitalization of $71.97 million, a price-to-earnings ratio of 0.66 and a beta of 1.42.

Analyst Upgrades and Downgrades

RGS has been the subject of a number of recent analyst reports. Lake Street Capital began coverage on shares of Regis in a report on Tuesday, May 26th. They set a “buy” rating and a $42.00 price target for the company. Weiss Ratings reissued a “hold (c)” rating on shares of Regis in a report on Wednesday, August 26th. One research analyst has rated the stock with a Buy rating and one has assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average target price of $42.00.

Hedge Funds Weigh In On Regis

Several hedge funds have recently made changes to their positions in RGS. Mink Brook Asset Management LLC raised its holdings in shares of Regis by 653.0% during the fourth quarter. Mink Brook Asset Management LLC now owns 69,011 shares of the company’s stock valued at $1,915,000 after acquiring an additional 59,846 shares in the last quarter. DRW Securities LLC bought a new stake in Regis in the fourth quarter valued at $247,000. Renaissance Technologies LLC increased its position in Regis by 12.7% during the 4th quarter. Renaissance Technologies LLC now owns 13,344 shares of the company’s stock valued at $370,000 after purchasing an additional 1,500 shares during the period. Geode Capital Management LLC increased its position in Regis by 1.8% during the 4th quarter. Geode Capital Management LLC now owns 26,695 shares of the company’s stock valued at $741,000 after purchasing an additional 478 shares during the period. Finally, Kent Lake PR LLC bought a new position in Regis in the 2nd quarter worth $412,000. 31.50% of the stock is owned by hedge funds and other institutional investors.

About Regis

Regis (NASDAQ: RGS) is a company that owns, operates and franchises a portfolio of hair salon and beauty service brands. Its business centers on providing haircutting, styling, coloring and other salon services through both company-owned and franchised locations. The company’s brand portfolio includes well-known names in the haircut and salon market that serve a range of customer segments from value-focused walk-in haircuts to full-service salon experiences.

Regis generates revenue through salon operations, franchise fees and the sale of professional hair-care products and retail items.