Regis profitability climbs as salon demand counteracts revenue softness

Regis Corporation (NASDAQ:RGS) demonstrated improved operational efficiency in its third fiscal quarter, reporting a significant rise in net income and earnings per share despite a contraction in its top-line revenue.

For the period ended March 31, 2026, the haircare leader posted consolidated revenue of $52.4 million, a decrease from the $57 million reported in the prior-year period.

Management attributed the $4.6 million decline primarily to lower royalties and fees, as well as a reduction in non-margin franchise rental income.

The dip in total revenue was countered by robust performance at the salon level.

Same-store sales grew by 2.6% on a consolidated basis, powered by a 5% increase at Supercuts and a notable 9.6% jump at company-owned locations.

Profitability metrics saw a marked improvement across the board.

Operating income rose to $5.7 million, up from $5 million in the third quarter of 2025.

Net income more than doubled to $0.7 million, resulting in diluted earnings per share of $0.26, a sharp increase from the $0.08 recorded a year ago.

On an adjusted basis, which excludes certain non-recurring items, diluted EPS reached $0.57 compared to $0.43 in the previous year.

The company also highlighted its continued financial stabilization, marking its sixth consecutive quarter of positive cash flow from operations.

This sustained liquidity was reflected in a higher adjusted EBITDA, which climbed to $7.7 million from $7.1 million.