Regis Corp (RGS)
NASDAQ:RGS
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Regis
(NASDAQ:RGS)
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Rating:52Neutral
Price Target:
$22.50
▼(-16.76% Downside)
Action:ReiteratedDate:03/16/26
The score is primarily held back by financial quality concerns (weak cash conversion vs. profits and still-elevated leverage) and a relatively high P/E valuation. Earnings-call commentary is moderately supportive due to improving EBITDA and expected FY2026 cash generation, but technicals remain mixed with the stock below key longer-term moving averages.
Positive Factors
Profitability recovery & margins
Regis has meaningfully re‑entered profitability with healthy gross and EBIT margins, showing the business can generate operating earnings from core salon services. Durable margin improvement supports reinvestment in brands, funds strategic initiatives, and reduces reliance on one‑time items for multi‑quarter stability.
Negative Factors
Elevated leverage
Despite material debt reduction versus earlier years, the capital structure remains meaningfully levered, limiting financial flexibility. Elevated leverage increases refinancing sensitivity and interest burden, constrains strategic investments, and raises execution risk if cash generation slips or credit markets tighten.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability recovery & margins
Regis has meaningfully re‑entered profitability with healthy gross and EBIT margins, showing the business can generate operating earnings from core salon services. Durable margin improvement supports reinvestment in brands, funds strategic initiatives, and reduces reliance on one‑time items for multi‑quarter stability.
Read all positive factors
Regis (RGS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$59.60M
Dividend YieldN/A
Average Volume (3M)8.88K
Price to Earnings (P/E)37.8
Beta (1Y)0.76
Revenue Growth13.98%
EPS Growth34.14%
CountryUS
Employees1,945
SectorConsumer Cyclical
Sector Strength84
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)0.16
Shares Outstanding2,498,778
10 Day Avg. Volume6,324
30 Day Avg. Volume8,881
Financial Highlights & Ratios
PEG Ratio0.02
Price to Book (P/B)0.28
Price to Sales (P/S)0.25
P/FCF Ratio4.23
Enterprise Value/Market Cap9.34
Enterprise Value/Revenue2.39
Enterprise Value/Gross Profit5.02
Enterprise Value/Ebitda17.53
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Regis Business Overview & Revenue Model
Company Description
Regis Corporation owns, operates, and franchises hairstyling and hair care salons in the United States, Canada, Puerto Rico, and the United Kingdom. The company operates in two segments, Franchise Salons and Company-Owned Salons. Its salons provid...
How the Company Makes Money
Regis makes money primarily through (1) salon-related revenue and (2) franchising-related revenue. Salon-related revenue is generated when the company operates salons directly and earns fees from providing haircare services (e.g., haircuts, colori...
Regis Key Performance Indicators (KPIs)
Regis Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: meaningful operational and financial progress driven by the Alline acquisition, improved adjusted EBITDA, positive cash generation and focused investments in digital, loyalty and AI. However, persistent traffic weakness, a modest quarterly same-store sales decline, continued franchise closures (374 net), SmartStyle performance issues and near-term margin effects from pay plan and pricing changes are notable headwinds. Management emphasized execution discipline, pilot tests and refinancing efforts to address these issues.Positive Updates
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.
Negative Updates
Traffic Headwinds and Same-Store Sales Pressure
Traffic remains the primary drag on top-line performance. Consolidated same-store sales for the quarter declined modestly by 0.10%, and management emphasized that sustainable traffic improvement is still an unresolved challenge.
Read all updates
Q2-2026 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
Management guided to a meaningful increase in unrestricted cash generation in FY2026 versus FY2025 and reiterated priorities to stabilize traffic, maintain disciplined cost and cash management, and strengthen the operational and digital foundation across brands; they cited Q2 adjusted EBITDA of $8.0M (up $0.9M YoY) and YTD adjusted EBITDA of $16.0M (up $1.2M), Q2 revenue of $57.1M (+22.3% YoY), GAAP operating income of $6.2M (+13%), consolidated same‑store sales down 0.10% in Q2 but Supercuts SSS +2.0% YTD and consolidated SSS +0.4% YTD, company‑owned salon sales +4.3% in Q2, $1.5M of unrestricted cash from operations in Q2 and $3.9M YTD (the YTD cash figure includes $200K of restricted ad‑fund cash and roughly $4.2M from core operations), $27.4M of available liquidity including $18.4M of unrestricted cash, $126M of outstanding debt, a net decline of 374 franchise locations (96 closures in the past six months) with H2 closures expected to be in line with H1, a ~$350K trailing‑12‑month sales gap between low and top performers, and the view that refinancing could be economically viable after the two‑year anniversary in June 2026.Regis Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
52
Neutral
Cash Flow
45
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 233.43M | 210.13M | 202.98M | 233.33M | 275.97M | 411.65M |
| Gross Profit | 111.01M | 80.51M | 76.55M | 76.54M | 65.62M | 77.28M |
| EBITDA | 31.76M | 24.75M | 119.27M | 17.86M | -25.02M | -73.72M |
| Net Income | 112.05M | 123.54M | 91.06M | -7.38M | -85.86M | -113.33M |
Balance Sheet | ||||||
| Total Assets | 588.31M | 692.62M | 530.50M | 607.38M | 769.30M | 996.38M |
| Cash, Cash Equivalents and Short-Term Investments | 18.39M | 35.20M | 10.07M | 9.51M | 17.04M | 19.19M |
| Total Debt | 514.84M | 350.76M | 399.28M | 550.65M | 691.63M | 820.88M |
| Total Liabilities | 399.61M | 507.00M | 473.71M | 644.11M | 800.25M | 979.34M |
| Stockholders Equity | 188.71M | 185.62M | 56.79M | -36.73M | -30.95M | 17.05M |
Cash Flow | ||||||
| Free Cash Flow | 14.89M | 12.45M | -2.42M | -8.37M | -43.95M | -111.36M |
| Operating Cash Flow | 16.90M | 13.74M | -2.04M | -7.89M | -38.64M | -99.88M |
| Investing Cash Flow | -2.01M | -11.45M | 1.62M | 4.02M | 7.68M | -2.10M |
| Financing Cash Flow | -5.52M | 3.59M | 8.36M | -2.15M | 29.42M | 7.78M |
Regis Technical Analysis
Neutral
27.03
Price Trends
22.98
Positive
25.20
Negative
24.83
Negative
Market Momentum
0.36
Negative
54.42
Neutral
62.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGS, the sentiment is Neutral. The current price of 27.03 is above the 20-day moving average (MA) of 22.77, above the 50-day MA of 22.98, and above the 200-day MA of 24.83, indicating a neutral trend. The MACD of 0.36 indicates Negative momentum. The RSI at 54.42 is Neutral, neither overbought nor oversold. The STOCH value of 62.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RGS.
Regis Risk Analysis
Regis disclosed 31 risk factors in its most recent earnings report. Regis reported the most risks in the "Ability to Sell" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Regis Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $3.79B | 16.54 | 101.49% | ― | 11.88% | 18.08% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $8.69M | -0.60 | 48.22% | ― | 13.71% | ― | |
57 Neutral | $702.82M | 12.67 | 21.53% | 1.06% | 0.99% | 37.55% | |
52 Neutral | $59.60M | 37.76 | 71.09% | ― | 13.98% | 34.14% | |
49 Neutral | $142.20M | 0.28 | -2625.35% | ― | -9.32% | ― | |
45 Neutral | $107.16M | -1.62 | -8.89% | ― | -36.29% | -96.65% |
* Consumer Cyclical Sector Average
RGS
Regis
23.85
5.70
31.40%
CSV
Carriage Services
44.62
6.27
16.36%
MED
Medifast
9.75
-3.73
-27.67%
FTDR
frontdoor
53.64
15.22
39.61%
MRM
MEDIROM Healthcare Technologies
1.10
0.73
197.30%
WW
WW International, Inc.
14.23
-15.98
-52.90%
Regis Corporate Events
Business Operations and StrategyExecutive/Board Changes
Regis Names New CEO and Restructures Board Leadership
Positive
Mar 16, 2026
On March 16, 2026, Regis Corporation announced a leadership shake-up, naming board member and former chair Susan Lintonsmith as president and chief executive officer and moving interim CEO Jim Lain into the chief operating officer role. The shift ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.