Same-Store Sales Growth
Consolidated same-store sales increased 2.6% in Q3; Supercuts same-store sales grew 5% in Q3 (3.2% year-to-date); company-owned salons delivered strong same-store sales growth of 9.6% in Q3, with pricing actions cited as a primary driver.
Improved Profitability
Adjusted EBITDA for Q3 was $7.7 million, up $0.6 million (8.5%) year-over-year; year-to-date adjusted EBITDA was $23.6 million, up $1.7 million versus prior year. GAAP operating income was $5.7 million, a 14% increase versus the prior-year quarter; income from continuing operations improved to $735,000 from $250,000.
Positive Cash Generation and Liquidity
Generated $5.3 million of unrestricted cash from operations in Q3 and roughly $9.3 million year-to-date (management referenced six consecutive quarters of positive cash from operations). Available liquidity totaled $31.9 million as of March 31, 2026, including $22.9 million in unrestricted cash and cash equivalents.
Cost Discipline and Margin Expansion
Adjusted G&A declined to $9.5 million in Q3 from $10.2 million year-over-year, reflecting ongoing cost management. Franchise EBITDA margin improved to 18.7% from 16.5% in the prior-year quarter.
Strategic Leadership and Clear Growth Priorities
New CEO (Susan Lintonsmith) outlined three priorities: grow Supercuts via a three‑pillar transformation (brand strategy, digital modernization, operational excellence), invest in company-owned salons as a best-in-class test-and-learn platform, and turn around SmartStyle. Management is advancing loyalty/CRM, POS/web/mobile modernization and AI-enabled pilots.
Portfolio Quality Improvements
Franchise closures have moderated meaningfully versus prior years; fiscal YTD net franchise location decline was 150 (about 50 per quarter) versus much larger declines in 2024 and 2025. Management states closures disproportionately involved underperforming locations, improving the productivity of the remaining salon base.