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Regis
(NASDAQ:RGS)
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Rating:65Neutral
Price Target:
$30.00
▲(10.99% Upside)
Action:Reiterated
Date:05/14/26
The score is driven primarily by improved financial performance (strong TTM profitability and a shift to positive cash flow) and supportive technical momentum (price above key moving averages with positive MACD). It is held back by weaker revenue trends and earnings-quality/cash-conversion risk, plus moderate valuation support (P/E ~21.3 and no dividend) and earnings-call risks tied to ongoing franchise attrition and brand underperformance.
Positive Factors
Positive cash generation
Regis has converted a multi-year cash drain into sustained positive operating and free cash flow, providing durable internal funding for marketing, salon investments and debt paydown. Consistent FCF reduces refinancing reliance and supports execution of the Supercuts turnaround over the next 2–6 months.
Negative Factors
Top-line decline and unit attrition
Persistent revenue declines and sizeable franchise net closures erode royalty streams and scale economics. Continued closures reduce recurring fee income and could pressure long-term growth unless unit-level sales and recruitment meaningfully accelerate, constraining durable topline recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive cash generation
Regis has converted a multi-year cash drain into sustained positive operating and free cash flow, providing durable internal funding for marketing, salon investments and debt paydown. Consistent FCF reduces refinancing reliance and supports execution of the Supercuts turnaround over the next 2–6 months.
Read all positive factors
Regis Key Performance Indicators (KPIs)
Any
Revenue by Segment
Breaks down sales across the company’s different business lines or brands to show which areas drive top-line growth. A healthier mix toward higher-margin or recurring services points to more sustainable earnings, while heavy reliance on one segment increases vulnerability to demand shifts.
Breaks down sales across the company’s different business lines or brands to show which areas drive top-line growth. A healthier mix toward higher-margin or recurring services points to more sustainable earnings, while heavy reliance on one segment increases vulnerability to demand shifts.
Data provided by:
The Fly
The FlyRegis (RGS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$75.51M
Dividend YieldN/A
Average Volume (3M)8.88K
Price to Earnings (P/E)0.6
Beta (1Y)0.75
Revenue Growth14.95%
EPS Growth29.24%
CountryUS
Employees1,777
SectorConsumer Cyclical
Sector Strength84
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)47.51
Shares Outstanding2,498,778
10 Day Avg. Volume6,324
30 Day Avg. Volume8,881
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.28
Price to Sales (P/S)0.25
P/FCF Ratio4.23
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$42.00Price Target Upside55.38% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Regis Business Overview & Revenue Model
Company Description
Regis Corporation is a leading beauty services enterprise primarily involved in the ownership, operation, and franchising of hair styling and treatment salons. Its operations span across the United States, Canada, Puerto Rico, and the United Kingd...
How the Company Makes Money
Regis makes money through a combination of company-operated salon revenues and franchising-related income. For company-operated locations, revenue is primarily generated from salon service fees (e.g., haircuts, coloring, styling) and, where applic...
Regis Earnings Call Summary
Earnings Call Date:May 13, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
The call emphasized notable progress in profitability, margin expansion and cash generation alongside a clear strategic plan and new leadership focus on growing Supercuts, investing in company salons and turning around SmartStyle. However, the business faces meaningful near-term headwinds: an 8.1% revenue decline driven by lower noncash franchise fees and franchise attrition, SmartStyle underperformance, and margin pressures from acquired company salons due to higher labor. On balance, management presented multiple concrete improvements and a clear plan to drive growth, which outweighs the challenges discussed.Positive Updates
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.
Negative Updates
Revenue Decline
Total Q3 revenue decreased 8.1% year-over-year to $52.4 million, primarily driven by lower noncash franchise fee recognition and fewer franchise locations.
Read all updates
Q3-2026 Updates
Positive
Negative
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.
Read all positive updates
Company Guidance
Management guided that fourth-quarter net franchise location declines should be generally consistent with the recent run rate of roughly 50 net closures per quarter (150 net down in the first 9 months and franchise locations down 279 YoY as of March 31, 2026) and reiterated an expectation for a meaningful increase in unrestricted cash generated from core operations in fiscal 2026 versus fiscal 2025 — citing Q3 unrestricted cash from operations of $5.3 million and year-to-date unrestricted cash of $9.3 million (total cash from operations for the nine months was $8.9 million, which included $0.4 million of restricted ad‑fund cash). They also said the company will deploy accumulated ad‑fund dollars (the ad fund is approximately $20 million annually) in Q1 FY2027 to drive marketing and traffic, continue to pursue refinancing to lower cost of capital, and highlighted liquidity of $31.9 million (including $22.9 million unrestricted cash) and outstanding debt of $127.1 million. Near‑term performance metrics cited to support the outlook included Q3 adjusted EBITDA of $7.7 million (YTD $23.6 million, up $1.7 million), consolidated same‑store sales +2.6% (Supercuts +5%, company‑owned salons +9.6%), GAAP operating income $5.7 million (+14% YoY), franchise EBITDA $6.2 million (franchise EBITDA margin 18.7% vs 16.5% prior) and company‑owned salon EBITDA $1.4 million (up $0.6 million).Regis Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
55
Neutral
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 228.88M | 210.13M | 202.98M | 233.33M | 275.97M | 411.65M |
| Gross Profit | 105.65M | 80.51M | 76.55M | 76.54M | 65.62M | 77.28M |
| EBITDA | 32.51M | 24.75M | 119.27M | 17.86M | -25.02M | -73.72M |
| Net Income | 112.54M | 123.54M | 91.06M | -7.38M | -85.86M | -113.33M |
Balance Sheet | ||||||
| Total Assets | 556.60M | 692.62M | 530.50M | 607.38M | 769.30M | 996.38M |
| Cash, Cash Equivalents and Short-Term Investments | 40.96M | 35.20M | 10.07M | 9.51M | 17.04M | 19.19M |
| Total Debt | 312.45M | 350.76M | 399.28M | 550.65M | 691.63M | 820.88M |
| Total Liabilities | 367.15M | 507.00M | 473.71M | 644.11M | 800.25M | 979.34M |
| Stockholders Equity | 189.45M | 185.62M | 56.79M | -36.73M | -30.95M | 17.05M |
Cash Flow | ||||||
| Free Cash Flow | 13.77M | 12.45M | -2.42M | -8.37M | -43.95M | -111.36M |
| Operating Cash Flow | 15.68M | 13.74M | -2.04M | -7.89M | -38.64M | -99.88M |
| Investing Cash Flow | -1.90M | -11.45M | 1.62M | 4.02M | 7.68M | -2.10M |
| Financing Cash Flow | -5.39M | 3.59M | 8.36M | -2.15M | 29.42M | 7.78M |
Regis Technical Analysis
Positive
27.03
Price Trends
27.75
Positive
26.14
Positive
26.54
Positive
Market Momentum
0.50
Negative
62.79
Neutral
82.47
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RGS, the sentiment is Positive. The current price of 27.03 is below the 20-day moving average (MA) of 27.75, below the 50-day MA of 27.75, and above the 200-day MA of 26.54, indicating a bullish trend. The MACD of 0.50 indicates Negative momentum. The RSI at 62.79 is Neutral, neither overbought nor oversold. The STOCH value of 82.47 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
72 Outperform | $5.33B | 21.33 | 99.90% | ― | 12.12% | 14.91% | |
65 Neutral | $75.51M | 0.62 | 59.91% | ― | 14.95% | 29.24% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $7.51M | -1.96 | 48.22% | ― | ― | ― | |
57 Neutral | $617.27M | 13.36 | 17.60% | 1.06% | 1.16% | -8.25% | |
55 Neutral | $148.68M | 4.29 | 334.45% | ― | -9.61% | ― | |
48 Neutral | $116.75M | -5.64 | -9.68% | ― | -36.31% | -184.77% |
* Consumer Cyclical Sector Average
RGS
Regis
29.61
7.17
31.95%
CSV
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37.67
-8.48
-18.37%
MED
Medifast
10.26
-2.98
-22.51%
FTDR
frontdoor
75.69
17.91
31.00%
MRM
MEDIROM Healthcare Technologies
0.93
-0.46
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WW
WW International, Inc.
14.57
-20.43
-58.37%
Regis Corporate Events
Business Operations and StrategyExecutive/Board Changes
Regis Appoints William Charters to Board Amid Transformation
Positive
Apr 15, 2026
Regis Corporation, a major franchisor in the haircare industry traded on Nasdaq as RGS, operates 3,829 franchised or company-owned salons under brands such as Supercuts, SmartStyle, Cost Cutters, Roosters and First Choice Haircutters as of Dec. 31...
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.