Regis (RGS) AI Stock Analysis

• Market Cap: $61.17M
• Dividend Yield: N/A
• Average Volume (3M): 8.88K
• Price to Earnings (P/E): 37.8
• Beta (1Y): 0.77
• Revenue Growth: 13.98%
• EPS Growth: 34.14%
• Country: US
• Employees: 1,945
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Personal Products & Services
• EPS (TTM): 0.16
• Shares Outstanding: 2,498,778
• 10 Day Avg. Volume: 6,324
• 30 Day Avg. Volume: 8,881
• PEG Ratio: 0.02
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.25
• P/FCF Ratio: 4.23
• Enterprise Value/Market Cap: 9.12
• Enterprise Value/Revenue: 2.39
• Enterprise Value/Gross Profit: 5.02
• Enterprise Value/Ebitda: 17.56
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $22.50 ▼(-16.76% Downside)
• Action: Reiterated Date: 03/16/26
• Date: Action: Reiterated 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.

Franchise margin improvement

Higher franchise margins indicate the franchising arm is becoming more profitable on a rate basis, strengthening recurring royalty economics. A healthier franchise margin mix boosts cash predictability, scales with system sales, and raises the structural quality of revenue versus company‑operated volatility.

Leadership change & governance depth

Appointment of an experienced franchise and consumer executive as CEO, paired with board restructuring, bolsters operational and governance capability. This leadership depth improves chances of consistent execution on turnaround priorities, franchise stabilization, and longer‑term initiatives like digital and loyalty rollouts.

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.

Weak cash conversion

Cash flow conversion from reported earnings is low, indicating earnings include non‑cash or timing items. Modest and uneven free cash flow limits the company’s ability to pay down debt, invest in network upgrades, or absorb shocks, making earnings less reliable as a source of durable value creation.

System contraction & traffic weakness

Ongoing franchise closures and modest same‑store sales declines signal structural demand and execution issues in portions of the system. Shrinking unit count reduces recurring royalty scale, undermines brand presence and limits operating leverage, complicating recovery and franchisee economics over multiple quarters.

Regis Business Overview & Revenue Model

Company Description

Regis Corporation (RGS) is a leading provider of hair care services and products in North America, operating a diverse portfolio of salon brands. The company operates through multiple segments, including company-owned salons and franchised locations, offering a variety of services such as haircuts, color treatments, and styling, alongside the sale of hair care products. Regis is committed to delivering exceptional customer experiences in the beauty industry through its widespread network of salons and professional stylists.

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, coloring, styling) and selling haircare products and other retail items in-salon; these revenues are recorded at the point services are performed and products are sold. Franchising-related revenue is generated by licensing its salon brands and systems to franchisees and collecting ongoing royalties (typically tied to franchisee sales) and other franchise-related fees (e.g., initial franchise fees or similar charges where applicable), and may also include revenue from supplying or facilitating the purchase of salon products and equipment for franchise locations when such programs exist. Significant drivers of earnings include the number of franchised and company-operated locations, same-salon/service transaction volumes, pricing, product attachment rates, and the mix shift between company-operated versus franchised salons. Specific material partnerships contributing to earnings: null.

Regis Financial Statement Overview

Summary

Reported profitability has improved sharply and debt is down materially, but leverage is still meaningful and cash flow conversion is weak versus net income, raising questions about earnings quality and durability.

Income Statement

Profitability has inflected meaningfully versus earlier years: the company moved from sizable losses in FY2021–FY2023 to strong reported profits in FY2024, FY2025 annual, and TTM (Trailing-Twelve-Months). TTM revenue grew ~4.7% and margins are high (gross margin ~41%; EBIT margin ~9%). That said, results are volatile across the history provided (including negative net margins in FY2022–FY2023 and unusually large profitability in FY2024–FY2025), which reduces confidence in the durability/quality of earnings.

Balance Sheet

Leverage remains a key constraint. While debt has come down (from ~821M in FY2021 to ~233M in TTM (Trailing-Twelve-Months)) and equity has recovered from negative in FY2022–FY2023 to positive in FY2024–TTM, the capital structure is still meaningfully levered (TTM debt-to-equity ~1.23x; FY2025 annual ~1.89x). The earlier period of negative equity highlights balance-sheet fragility, even though the recent improvement is a clear positive.

Cash Flow

Cash generation has improved from negative operating and free cash flow in FY2021–FY2024 to positive in FY2025 annual and TTM (Trailing-Twelve-Months) (TTM operating cash flow ~16.9M; free cash flow ~14.9M). However, cash flow remains modest relative to reported profitability (TTM operating cash flow is only ~17% of net income), suggesting weaker cash conversion and/or working-capital/non-cash items driving earnings. Free cash flow also declined ~5.2% in TTM, indicating momentum is not yet firmly established.

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

• Technical Analysis Sentiment: Positive
• Last Price: 27.03
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: 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 above the 20-day moving average (MA) of 22.33, above the 50-day MA of 23.16, and above the 200-day MA of 24.77, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 61.28 is Neutral, neither overbought nor oversold. The STOCH value of 86.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RGS.

Regis Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTDR	73 Outperform	$4.54B	16.54	101.49%	―	11.88%	18.08%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CSV	61 Neutral	$670.53M	12.67	21.53%	1.06%	0.99%	37.55%
MRM	58 Neutral	$9.80M	-0.60	48.22%	―	13.71%	―
RGS	52 Neutral	$61.17M	37.76	71.09%	―	13.98%	34.14%
MED	43 Neutral	$110.46M	-6.28	-8.89%	―	-36.29%	-96.65%
WW	43 Neutral	$186.13M	―	-2622.23%	―	-9.32%	―

Regis Corporate Events

Regis Names New CEO and Restructures Board Leadership

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 formalizes Lain’s operational leadership while positioning Lintonsmith, a veteran of franchise-heavy consumer and beauty brands, to steer the next phase of the salon operator’s strategic transformation.

Lintonsmith’s compensation package includes a $650,000 base salary, performance-based annual bonus opportunities and multi-year equity awards designed to align her incentives with long-term value creation and provide retirement and severance protections. Lain’s new COO agreement sets his base salary at $470,000 and adds a significant retention bonus tied to his continued service through March 16, 2027, underscoring the board’s desire for stability in day-to-day operations during the transition.

Regis also reshaped its board, appointing director Nancy Benacci as chair and adding Retro Fitness CEO and former Starbucks executive Andrew Alfano as an independent director, effective March 16, 2026. The board changes deepen operational expertise in franchising, brand growth and multi-unit systems, which directors say are critical to sustaining the company’s turnaround momentum and enhancing long-term shareholder value.

The most recent analyst rating on (RGS) stock is a Hold with a $19.50 price target. To see the full list of analyst forecasts on Regis stock, see the RGS Stock Forecast page.