REGIS CORPRGS
REGIS CORP Segments Disclosure
SEGMENT INFORMATION
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Segment information is presented on the same basis that the Company internally organizes the business for assessing performance and making decisions regarding allocation of resources. The Company's Chief Operating Decision Maker's (CODM) primary measures of segment performance are revenue and segment adjusted EBITDA. The Company’s Chief Executive Officer is the CODM. Revenue and segment adjusted EBITDA are regularly reviewed by the CODM to make decisions about resources to be allocated to the segments, assess current performance, and forecast future performance. The Company's CODM does not evaluate reportable segments using assets and capital expenditure information. Segment adjusted EBITDA is defined as income (loss) from continuing operations before interest, income taxes, depreciation, amortization, and impairment. Beginning in fiscal year 2025, management determined that stock-based compensation expenses will be excluded from adjusted EBITDA. This change has been retrospectively applied to all prior periods presented in this report. Consistent with our internal management reporting, unallocated expenses include certain items impacting comparability. These unallocated items are not defined terms within U.S. GAAP. They are based on how management views the business, makes financial, operating and planning decisions and evaluates the Company's ongoing performance and are not attributable to either segment. Unallocated fees include distribution center wind down fees, inventory reserve, one-time professional fees and settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired ROU assets, lease termination fees, asset retirement obligation costs, goodwill and long-lived asset impairment charges, and the benefit from the Company's debt refinancing. Figures for prior reporting periods have been restated to conform with the accounting requirements of the current period.
Financial information concerning the Company's reportable operating segments is shown in the tables below.
| For the Year Ended June 30, 2025 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Franchise | Company-owned | Consolidated | ||||||||||||||||||
| Total revenue | $ | 166,403 | $ | 43,731 | $ | 210,134 | ||||||||||||||
| Expenses | ||||||||||||||||||||
| General and administrative | $ | 42,769 | $ | 3,995 | $ | 46,764 | ||||||||||||||
| Rent | 3,413 | 7,074 | 10,487 | |||||||||||||||||
| Non-margin expenses (1) | 98,523 | — | 98,523 | |||||||||||||||||
| Company-owned salon expense | — | 31,103 | 31,103 | |||||||||||||||||
| Depreciation and amortization | 1,194 | 1,772 | 2,966 | |||||||||||||||||
| Long-lived asset impairment | 352 | — | 352 | |||||||||||||||||
| Operating income (loss) | $ | 20,152 | $ | (213) | $ | 19,939 | ||||||||||||||
| Unallocated income, net (2) | 103,597 | |||||||||||||||||||
| Total net income | $ | 123,536 | ||||||||||||||||||
| Segment adjusted EBITDA | $ | 28,362 | $ | 3,213 | $ | 31,575 | ||||||||||||||
(1)Non-margin expenses include advertising fund and franchise rent expenses which are offset in total revenue and, as such, not used as a primary measure of performance by our CODM.
(2)Unallocated income, net includes release of valuation allowance.
Financial information reconciling the Company's reportable operating segments Operating income (loss) to Adjusted EBITDA is shown in the tables below.
| For the Year Ended June 30, 2025 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Franchise | Company-owned | Consolidated | ||||||||||||||||||
| Operating income (loss) | $ | 20,152 | $ | (213) | $ | 19,939 | ||||||||||||||
| Depreciation and amortization | 1,194 | 1,772 | 2,966 | |||||||||||||||||
| Other, net | 1,624 | — | 1,624 | |||||||||||||||||
| Discrete items (1) | 5,392 | 1,654 | 7,046 | |||||||||||||||||
| Segment adjusted EBITDA | $ | 28,362 | $ | 3,213 | $ | 31,575 | ||||||||||||||
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(1)Discrete items include one-time professional fees and legal settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired right of use asset, lease termination fees and asset retirement obligation costs.
For the Year Ended June 30, 2024 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Franchise | Company-owned | Consolidated | ||||||||||||||||||
| Total revenue | $ | 195,659 | $ | 7,323 | $ | 202,982 | ||||||||||||||
| Expenses | ||||||||||||||||||||
| Cost of product sales to franchisees | $ | 436 | $ | — | $ | 436 | ||||||||||||||
| General and administrative | 44,778 | 609 | 45,387 | |||||||||||||||||
| Rent | 3,450 | 2,075 | 5,525 | |||||||||||||||||
| Non-margin expenses (1) | 120,921 | — | 120,921 | |||||||||||||||||
| Company-owned salon expense | — | 5,080 | 5,080 | |||||||||||||||||
| Depreciation and amortization | 3,095 | 850 | 3,945 | |||||||||||||||||
| Long-lived asset impairment | 798 | — | 798 | |||||||||||||||||
| Operating income (loss) | $ | 22,181 | $ | (1,291) | $ | 20,890 | ||||||||||||||
| Unallocated income, net (2) | 70,170 | |||||||||||||||||||
| Total net income | $ | 91,060 | ||||||||||||||||||
| Segment adjusted EBITDA | $ | 27,815 | $ | (323) | $ | 27,492 | ||||||||||||||
(1)Non-margin expenses include advertising fund and franchise rent expenses which are offset in total revenue and, as such, not used as a primary measure of performance by our CODM.
(2)Unallocated income, net includes extinguishment of long-term debt.
Financial information reconciling the Company's reportable operating segments Operating income (loss) to Adjusted EBITDA is shown in the tables below.
| For the Year Ended June 30, 2024 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Franchise | Company-owned | Consolidated | ||||||||||||||||||
| Operating income (loss) | $ | 22,181 | $ | (1,291) | $ | 20,890 | ||||||||||||||
| Depreciation and amortization | 3,095 | 850 | 3,945 | |||||||||||||||||
| Other, net | (172) | — | (172) | |||||||||||||||||
| Discrete items (1) | 2,711 | 118 | 2,829 | |||||||||||||||||
| Segment adjusted EBITDA | $ | 27,815 | $ | (323) | $ | 27,492 | ||||||||||||||
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(1)Discrete items include one-time professional fees and legal settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired right of use asset, lease termination fees and asset retirement obligation costs.
| For the Year Ended June 30, 2023 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Franchise | Company-owned | Consolidated | ||||||||||||||||||
| Total revenue | $ | 223,237 | $ | 10,089 | $ | 233,326 | ||||||||||||||
| Expenses | ||||||||||||||||||||
| Cost of product sales to franchisees | $ | 3,540 | $ | — | $ | 3,540 | ||||||||||||||
| Inventory reserve | — | 1,228 | 1,228 | |||||||||||||||||
| General and administrative | 50,074 | 677 | 50,751 | |||||||||||||||||
| Rent | 4,664 | 4,532 | 9,196 | |||||||||||||||||
| Non-margin expenses (1) | 143,188 | — | 143,188 | |||||||||||||||||
| Company-owned salon expense | — | 8,827 | 8,827 | |||||||||||||||||
| Depreciation and amortization | 6,919 | 797 | 7,716 | |||||||||||||||||
| Long-lived asset impairment | 101 | — | 101 | |||||||||||||||||
| Operating income (loss) | $ | 14,751 | $ | (5,972) | $ | 8,779 | ||||||||||||||
| Unallocated income, net | (16,164) | |||||||||||||||||||
| Total net loss | $ | (7,385) | ||||||||||||||||||
| Segment adjusted EBITDA | $ | 25,107 | $ | (1,788) | $ | 23,319 | ||||||||||||||
(1)Non-margin expenses include advertising fund and franchise rent expenses which are offset in total revenue and, as such, not used as a primary measure of performance by our CODM.
Financial information reconciling the Company's reportable operating segments Operating income (loss) to Adjusted EBITDA is shown in the tables below.
| For the Year Ended June 30, 2023 | ||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||
| Franchise | Company-owned | Consolidated | ||||||||||||||||||
| Operating income (loss) | $ | 14,751 | $ | (5,972) | $ | 8,779 | ||||||||||||||
| Depreciation and amortization | 6,919 | 797 | 7,716 | |||||||||||||||||
| Other, net | (86) | 1,450 | 1,364 | |||||||||||||||||
| Discrete items (1) | 3,523 | 1,937 | 5,460 | |||||||||||||||||
| Segment adjusted EBITDA | $ | 25,107 | $ | (1,788) | $ | 23,319 | ||||||||||||||
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(1)Discrete items include one-time professional fees and legal settlements, inventory reserve, severance expense, the benefit from lease liability decreases in excess of previously impaired right of use asset, lease termination fees and asset retirement obligation costs.
The Franchise reportable operating segment is comprised of franchise salons located mainly in strip center locations and Walmart stores. Franchise salons offer high quality, convenient and value-priced hair care and beauty services and retail products. This segment operates primarily in the U.S., Puerto Rico, and Canada and primarily includes the Supercuts, SmartStyle, Cost Cutters, First Choice Haircutters, Roosters, and Magicuts concepts.
The company-owned salons reportable operating segment is comprised of company-owned salons located mainly in strip center locations and Walmart stores. Company-owned salons offer high quality, convenient and value priced hair care and beauty services and retail products. SmartStyle, Supercuts, Cost Cutters and other regional trade names operating in the U.S. and Canada are generally within the company-owned salons segment.
Segment information is prepared on the same basis that the CODM reviews financial information for operational decision-making purposes. The Company's reportable operating segments consisted of the following salons:
| June 30, | ||||||||||||||
| 2025 | 2024 | |||||||||||||
FRANCHISE SALONS: | ||||||||||||||
Supercuts | 1,711 | 1,946 | ||||||||||||
SmartStyle/Cost Cutters in Walmart stores | 1,049 | 1,232 | ||||||||||||
Portfolio Brands | 816 | 1,117 | ||||||||||||
Total North American salons | 3,576 | 4,295 | ||||||||||||
Total International salons (1) | 71 | 96 | ||||||||||||
Total franchise salons | 3,647 | 4,391 | ||||||||||||
as a percent of total franchise and company-owned salons | 92.5 | % | 99.6 | % | ||||||||||
COMPANY-OWNED SALONS (2): | ||||||||||||||
Supercuts | 100 | 3 | ||||||||||||
SmartStyle/Cost Cutters in Walmart stores | — | 8 | ||||||||||||
Portfolio Brands | 194 | 6 | ||||||||||||
Total company-owned salons | 294 | 17 | ||||||||||||
as a percent of total franchise and company-owned salons | 7.5 | % | 0.4 | % | ||||||||||
Total franchise and company-owned salons | 3,941 | 4,408 | ||||||||||||
(1)Canadian and Puerto Rican salons are included in the North American salon totals.
(2)Salon counts as of June 30, 2025, include salons acquired as part of the Alline Acquisition. See Note 16 to the Consolidated Financial Statements.
Total revenues and property and equipment, net associated with business operations in the U.S. and all other countries in aggregate were as follows:
| June 30, | ||||||||||||||||||||||||||||||||||||||
| 2025 | 2024 | 2023 | ||||||||||||||||||||||||||||||||||||
| Total Revenues | Property and Equipment, Net | Total Revenues | Property and Equipment, Net | Total Revenues | Property and Equipment, Net | |||||||||||||||||||||||||||||||||
| (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||
| U.S. | $ | 194,211 | $ | 10,085 | $ | 183,465 | $ | 3,663 | $ | 211,429 | $ | 6,410 | ||||||||||||||||||||||||||
| Other countries | 15,923 | — | 19,517 | 1 | 21,897 | 12 | ||||||||||||||||||||||||||||||||
| Total | $ | 210,134 | $ | 10,085 | $ | 202,982 | $ | 3,664 | $ | 233,326 | $ | 6,422 | ||||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Sep 3, 2025 | Showing above |
| 2024 | Aug 28, 2024 | |
| 2023 | Aug 23, 2023 | |
| 2022 | Aug 23, 2022 | |
| 2021 | Aug 26, 2021 | |
| 2020 | Aug 31, 2020 | |
| 2019 | Aug 27, 2019 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.