Adjusted EBITDA Growth
Consolidated adjusted EBITDA of $8.0 million for Q2, up $0.9 million year-over-year (an 11.9% increase from $7.1 million), and year-to-date adjusted EBITDA of $16 million, up $1.2 million versus prior year.
GAAP Operating Income Improvement
GAAP operating income increased to $6.2 million in the quarter, a $0.7 million improvement versus the prior-year quarter (approximately a 13% increase cited).
Revenue Increase Driven by Acquisition
Total Q2 revenue of $57.1 million, an increase of 22.3% ($10.4 million) year-over-year, primarily reflecting a full-period contribution from ~300 salons acquired from Alline (closed Dec 19, 2024), which materially affected comparability to prior year.
Positive and Improving Cash Generation
Generated $1.5 million of unrestricted cash from operations in Q2 and $3.9 million year-to-date. For the six months ended Dec 31, 2025, cash from operations improved by $3.1 million versus prior year and the company reported positive operating cash flows for the fifth consecutive quarter.
Company-Owned Salon Momentum
Company-owned salon sales growth of 4.3% in Q2 and company-owned salon adjusted EBITDA improved by $1.1 million year-over-year to $1.8 million, aided by the Alline acquisition and early execution of a new stylist pay plan and labor optimization tools.
Supercuts Same-Store Sales Strength
Supercuts delivered same-store sales growth of 2% year-to-date, contributing to a consolidated year-to-date same-store sales increase of 0.4%.
Franchise Margin Improvement (Rate Basis)
Franchise adjusted EBITDA declined modestly in dollars, but franchise adjusted EBITDA as a percentage of franchise revenue increased to 16.5% from 14.8% year-over-year, indicating improved margin profile within the franchise segment.
Liquidity and Balance Sheet Actions
Available liquidity of $27.4 million as of Dec 31, 2025 (including $18.4 million in unrestricted cash and capacity under the revolver). Company is actively exploring refinancing options approaching the 2-year anniversary of its credit agreement in June 2026 to reduce debt service.
Investments in Digital, Loyalty and AI
Progress on loyalty participation, CRM refinement, digital engagement and pilots (launched December) to improve customer digital interaction; established an AI task force to responsibly leverage AI for process efficiency, data analysis and decision support.