Regis Corporation (NASDAQ:RGS) reported a sharp double-digit increase in revenue for its fiscal second quarter on Thursday, as the haircare giant reaped the rewards of its strategic pivot back to company-owned salons.
The Minneapolis-based company, which operates brands including Supercuts® and SmartStyle®, posted consolidated revenue of $57.1 million for the quarter ended December 31, 2025.
This 22% increase over the prior year was primarily driven by the integration of the Alline Salon Group—its largest former franchisee—which added 314 locations back to the corporate portfolio.
While the shift toward company-owned stores boosted the top line, it was partially offset by a decline in royalty fees and franchise rental income as the total franchise store count decreased.
Profitability remained a key focus under Interim CEO Jim Lain, who took the helm in mid-2025.
Regis reported its fifth consecutive quarter of positive cash from operations, a significant milestone in its multi-year turnaround.
Operating income rose to $6.2 million, and adjusted EBITDA grew to $8 million.
While reported net income fell to $0.5 million—down from $7.6 million last year due to the absence of one-time gains from discontinued operations—adjusted diluted EPS held steady at $0.60, meeting internal targets.
Looking ahead to the remainder of 2026, Regis is betting on "modernization" to drive foot traffic.
Same-store sales at Supercuts grew 2% in the quarter, outperforming the consolidated average.
The company plans to deploy accumulated advertising funds into aggressive marketing campaigns and AI-driven guest engagement tools throughout the second half of the year.