Regis (NASDAQ:RGS) Posts Quarterly Earnings Results, Misses Expectations By $0.20 EPS

Regis (NASDAQ:RGS) posted its quarterly earnings results on Thursday. The company reported $0.48 earnings per share for the quarter, missing analysts’ consensus estimates of $0.68 by ($0.20), FiscalAI reports. The firm had revenue of $54.34 million for the quarter, compared to analyst estimates of $56.42 million. Regis had a return on equity of 4.10% and a net margin of 3.09%. During the same period last year, the company posted $0.49 earnings per share.

Here are the key takeaways from Regis’ conference call:

• Regis generated $7.7 million in adjusted EBITDA and $2.6 million in operating cash flow, repaid $7.9 million of debt, and recorded its eighth consecutive quarter of positive cash generation. However, revenue fell 7.8% year over year and adjusted EBITDA dipped from $8.0 million.
• Supercuts Choice Booking pilots delivered traffic 3%–6% above control salons and reduced online booking dead ends by 59%; Regis plans a full Supercuts rollout with seven-day advance booking as the standard.
• System traffic declined 3.1%, while company-owned salon traffic fell 9.5% and sales declined 1.1%; management called the results unacceptable and announced a senior leadership change and recovery efforts.
• Regis reported 34 franchise salon closures in Q1 and expects fiscal 2027 closures to remain around fiscal 2026 levels, despite efforts to support at-risk salons and facilitate ownership transfers.
• The company postponed refinancing plans after prospective lenders said they wanted to see additional quarters of progress; Regis expects to return to debt markets in early 2027, ahead of a scheduled decline in its call premium in June.

Regis Stock Performance

Shares of NASDAQ:RGS traded down $0.02 during midday trading on Friday, reaching $23.99. The company had a trading volume of 16,185 shares, compared to its average volume of 3,719. The stock has a market cap of $59.98 million, a P/E ratio of 11.37 and a beta of 1.44. The company’s 50 day moving average price is $28.55 and its 200 day moving average price is $26.59. The company has a current ratio of 0.62, a quick ratio of 0.60 and a debt-to-equity ratio of 0.59. Regis has a 52-week low of $19.31 and a 52-week high of $32.00.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings restated a “hold (c)” rating on shares of Regis in a research note on Wednesday, August 26th. One equities research analyst has rated the stock with a Buy rating and one has issued a Hold rating to the company. According to MarketBeat, Regis currently has an average rating of “Moderate Buy” and an average price target of $42.00.

About Regis

Regis Corporation (NASDAQ: RGS) is a hair care and salon company that operates primarily as a franchisor in the United States and Canada. Its salon network provides haircutting, hairstyling, hair coloring, waxing and related personal-care services, along with professional hair care products.

The company’s portfolio includes well-known salon brands such as Supercuts, SmartStyle, Cost Cutters, First Choice Haircutters and Roosters Men’s Grooming Center. These brands serve a broad customer base through locations operated by franchisees, as well as a limited number of company-operated salons and other affiliated locations.

Founded in Minneapolis in 1922, Regis expanded through the development and acquisition of salon brands and has historically operated one of the largest networks of hair salons in North America.