Business
Regis Corporation Reports Financial Results for the Third Fiscal Quarter 2025
Delivered Improvement Across All Profitability Metrics Generated $6.2 Million in Cash from Operations in Q3 - Two Consecutive Quarters of Cash from
About this update from Regis Corporation
[{"type":"text","content":"\nDelivered Improvement Across All Profitability Metrics\n\nGenerated $6.2 Million in Cash from Operations in Q3 - Two Consecutive Quarters of Cash from Operations for the First Time Since Q1 2018\n\nAdvances Transformational Strategy to Drive Sustainable, Profitable Growth\n\n MINNEAPOLIS--(BUSINESS WIRE)--\nRegis Corporation (NasdaqGM: RGS), a leader in the haircare industry, today announced financial results for the third fiscal quarter ended March 31, 2025.\n\nMatthew Doctor, Regis Corporation's President and Chief Executive Officer, commented, “Our results for the third fiscal quarter demonstrate meaningful progress towards the transformation of our business. We delivered a 22.0% increase in operating profit, 33.1% increase in Adjusted EBITDA, and importantly, generated positive cash from operations of more than $6 million. The underlying economics of our business are strengthening, and our financial position remains solid as we continue executing a strategic roadmap aimed at reigniting growth that is both profitable and sustainable.\n\n“We implemented targeted pricing and compensation changes at our Alline salons at the end of the third fiscal quarter, which we expect will contribute incrementally to performance in the near term, and the revitalization of the Supercuts brand is underway, with same-store sales trends stabilizing over the past three quarters. A shift in the timing of the Easter holiday, from March 31 last year to April 20 this year, adversely impacted same-store sales comparisons for the third quarter. However, to start the fourth quarter, in April, same-store sales at Supercuts were up 4.5% and consolidated sales were up 2.8%. While we expect the continued transformation to take time, the steps we are taking to elevate our brands, drive company-owned salon results, and enhance operations are foundational to the business, and we are encouraged by the progress we are making and the underlying momentum that is building.”\n\nFinancial Highlights:\n\nThird quarter fiscal 2025 compared to third quarter fiscal 2024:\n\n\nConsolidated revenue of $57.0 million versus $49.2 million; driven by increased company-owned salon revenue, offset by lower royalties, non-margin franchise rental income and lower advertising fund contributions\n\n\nSame-store sales versus third quarter 2024: Supercuts: +1.1%; Consolidated: (1.1)...