Sally Beauty Holdings, Inc. (name To Be Changed From Sally Holdings, Inc.) · NYSE:SBH
Sally Beauty Holdings, Inc. (name To Be Changed From Sally Holdings, Inc.) — Sally Beauty Holdings — Q4 2025 Earnings Presentation
46 slides from Sally Beauty Holdings, Inc. (name To Be Changed From Sally Holdings, Inc.)'s earnings presentation, Nov 13, 2025
Slide 1: Sally Beauty Holdings, Inc. Investor Relations Presentation
a Sally Beauty Holdings, Inc. | INVESTOR RELATIONS PRESENTATION as of November 13, 2025 \SATLYBEAUTY < SALLY, — Beanty Systems Grou eid HOLDINGS, ING.
Slide 2: Safe Harbor Statement
Safe Harbor Statement Forward-Looking Statements and Non-GAAP Financial Measures Statements in this presentation that are not purely historical facts or that depend upon future events may be forward-looking statements within the meaning of section 27A of the Securities Act of 1933, as amended, and S
Slide 3: Company overview
Company overview
Slide 4: Sally Beauty Holdings: A Differentiated Beauty Company
Sally Beauty Holdings: A Differentiated Beauty Company Aunique Beauty company that spans the consumer and professional markets Over 4,400 stores globally; supported by omni-channel capabilities that meet the customer where they want Highly resilient businesses against macro headwinds Largest source
Slide 5: Sally Beauty Holdings FY2025 Financials at a Glance
Sally Beauty Holdings FY2025 Financials at a Glance $3.7B 51.7% $448M 8.9% Sales Adjusted Gross Margin Adjusted EBITDA” Adjusted Operating Margin $2ABSally $1.6BBSG $916M $1.90 48% 1.6x Free Cash Flow” Adj. EPS” FOF conversion Net Debt Leverage 1. See Appendix for a reconciliation of this Non-GAAP f
Slide 6: A Unique Portfolio
A Unique Portfolio The Sally Beauty Holdings portfolio spans across the consumer and professional (pro) Beauty markets, providing access to the entire Beauty landscape | a Wakerao ~ 3,100 Stores Globally* ~ 1,300 Stores US/Canada 8% Ecommerce Penetration 14% Ecommerce Penetration ~600 Full-Service S
Slide 7: Two Distinct but Interconnected Markets
Services Two Distinct but Interconnected Markets Sally services the traditional Beauty market while Beauty Systems Group services the supply needs that support the large Beauty Services Market 61% of women color their hair at least once a year At Home Salon $85B $78B Consumer Beauty 25% 25% 1% Beaut
Slide 8: Sally Is a Consumer Beauty Retailer
Sally Is a Consumer Beauty Retailer Market leader for pro-quality color for home use - providing over 30 color brands with over 1200 shades of color Highly consultative experience in store Licensed Colorist on Demand (LCOD) provides customers with virtual hair color guidance 2/8 of transactions are
Slide 9: Beauty Systems Group (BSG) Is the Largest Beauty Distributor in North America
Beauty Systems Group (BSG) Is the Largest Beauty Distributor in North America Beauty That BSG is Services is a uniquely positioned $78B industry to service Industry growth focused on Expertise and education higher end, full-service models delivered in store, in app, online, Highly fragmented industr
Slide 10: Shared Integrated Capabilities
Shared Integrated Brand & Deep Talent Manufacturer Beauty Technology & Supply Development Relationships Expertise Analytics Chain SBH’s enduring relationships Each category is grounded in The SBH technology platform The SBH supply chain is Shared recruitment, career with brands and manufacturers dee
Slide 11: Built to win
Built to win
Slide 12: Slide 12
Slide 13: Sally Differentiators
Sally Differentiators Sally is the number one provider of professional-quality, athome hair color amid a competitive Beauty category Convenient Ways Loyal, Diverse Multi-Category Extensive Own to Shop Customer Base Exploration Brand Portfolio Customers can explore in store, ~ 80% of sales from 15M a
Slide 14: Sally Pro-Quality Portfolio
Sally Pro-Quality Portfolio @ The Sally portfolio of categories drives resilience and exploration with two-thirds of transactions being multi-category e Pro-quality hair color is the core of the Sally Beauty business - empowering customers with everything they need to color their hair at home @ Nail
Slide 15: Sally Own Brands
Sally Own Brands The Sally portfolio of Own Brands provides exceptional quality at affordable prices across the hair color, hair care, styling tools, salon supplies, and beauty accessories categories. The Own Brands portfolio features award-winning products recognized by Good Housekeeping, Glamour,
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Slide 17: Slide 17
Slide 18: Beauty Systems Group Differentiators
ti Beauty Systems Group Differentiators BSG is the largest pro Beauty distributor to salons and stylists across US and Canada with a strong moat built around the business Convenience for the Busy Stylist 2-hour delivery and a wide store footprint provide fast, omni-channel options for busy stylists
Slide 19: BSG Portfolio - Color and Care at the Core
NNN | BSG Portfolio - Color and Care at the Core © Over 80% of BSG’s business is providing licensed stylists with professional hair color, hair care, and salon supplies at wholesale prices $1.6B 39.7% 12.2% ry FY25 = FY25 Sales GM EBIT% ArmsirongMeCal.— CosmoProf @ Expanded categories like nails and
Slide 20: BSG's Extensive Assortment
—- —— ee. BSG’s Extensive Assortment With a massive assortment of the best brands in pro Beauty, stylists seek BSG out for their tried-and-true favorites and innovation PAULMMCHELL JOICO SEBIOLAGE COLORWOW \ Schudckopt Ss MOROCCANOIL. BaBylissP20 \ KENRA QmIKa: matrix K18 HAIRSCIENCE GOLDWELL. OLAPL
Slide 21: Experts at Servicing a Complex Customer Base
Experts at Servicing a Complex Customer Base 0 0 Independent Stylists 100% ~10% manage their of BSG’s Customer Base has a of Stylists Work businesses Professional License Independently end-to-end The operating model and extensive experience enables BSG to service highly fragmented markets of license
Slide 22: Growth strategy
Growth strategy
Slide 23: An Insight-Driven Growth Strategy
An Insight-Driven Growth Strategy On id 4 re Understand & Differentiate Unlock & Harvest Accelerate New ActivateCustomers — with Assortment Digital Value Growth Pathways Efficiency & Optimization
Slide 24: Understand & Activate Customers
Understand & Activate Customers re) CR ¢ Expand personalization and customer journeys * Elevate marketing partnerships with brands * Accelerate customer acquisition through LCOD, paid search, social, PR, and influencers * Drive marketing effectiveness through media mix model and enhanced brand messa
Slide 25: Differentiate with Assortment
Differentiate with Assortment * Innovate with new brands and products er * Drive new territory and channel expansions * Differentiate with Own Brands , Schwarzkopf PROFESSIO ionf) Cz WELLA amika: bondbar PAUL MITCHELL
Slide 26: Unlock & Harvest Digital Value
Unlock & Harvest Digital Value 20% OFF are ¢ Leverage speed to market to accelerate web 2 ', * Win through the app * Grow marketplaces and leverage omni capabilities * Deepen pro customer engagement SA Light Brown ASD S085
Slide 27: Accelerate New Growth Pathways
Accelerate New Growth Pathways * Roll out Sally Ignited to an additional 50 stores in 2026; building a path to broader expansion “? * Expand presence in pro Skin & Spa distribution * Continue innovating Happy Beauty Co. concept
Slide 28: A New Venture: Happy Beauty
A New Venture: Happy Beauty Leverage SBH’s extensive capabilities across product, operations, sourcing and supply chain to bring something truly unique to the market An accessible, fun and expressive environment offering shoppers a premium Beauty shopping experience and high-quality products at valu
Slide 29: Underpinned by an increasingly efficient operating model
Underpinned by an hs " |s increasingly efficient Mey =| 38: operating model * Continue Fuel for Growth activities * Improve inventory efficiencies and turn * Optimize and modernize supply chain SBH's North Texas Distribution Center ¥/3
Slide 30: Financials
Financials
Slide 31: Historical Operating Performance
$3,800 $3,700 $3,600 $3,500 $3,400 10.0% 9.0% 8.0% 7.0% 1.Store base decreased over 350 stores (>7%) from the start of FY23; 2. See Addendum for reconciliation of these non-GAAP financial measures Historical Operating Performance Following a period of optimization and investment, fiscal 2025 was a m
Slide 32: 7.9% 7.6% 8.9% 9.4% 8.4% 8.5% 9.2% 9.4%
7.9% 7.6% 8.9% 9.4% 8.4% 8.5% 9.2% 9.4%
Slide 33: Consistent Cash Flow Generator
$300 $250 $200 $150 $100 Consistent Cash Flow Generator Efficient operating model delivers healthy EBITDA to cash flow conversion creating ample financial flexibility Strong and consistent generator of cash flow from operations Operating Cash Flow ($M) $275 $249 $246 $157 2022 2023 2024 2025 Improvi
Slide 34: Through the Bottom Line Reinvestment
Gross Margin SG&A Through the Bottom Line Reinvestment $42M $32M ● ●
Slide 35: Healthy Balance Sheet
Healthy Balance Sheet Leverage ratio squarely in target range with strong liquidity position Total Debt ($M) Long-Term Debt Maturities ($M) $1,250 $1,156 $600 $1,078 $994 $1,000 — $400 750 2.2x 2.1x 2.0x } Target nat Sr. Notes leverage range: $500 aos 15x-2.0x $200 Term Loan B e280 $0 & so rr coe ee
Slide 36: Long-Term Financial Algorithm
Long-Term Financial Algorithm Three-year financial algorithm positioned to drive consistent double digit EPS growth supported by robust capital allocation strategy 1-3% 50%+ 3-5% 10%+ Low Single-digit Strong Gross Margin Adjusted Operating EPS Growth with at Sales Growth Profile Earnings Growth Leas
Slide 37: Balanced Capital Allocation Strategy
Re 0 6B #¥ Balanced Capital Allocation Strategy Targeted capital allocation strategy provides ample room to invest for growth while also returning value to stakeholders Maintain strong liquidity with $100M of cash and $500M line of credit Invest for growth historical capex of approx. $100M with room
Slide 38: Management team
Management team
Slide 39: Experienced Management Team
Denise Paulonis President & Chief Executive Officer SPROUTS — (ichaelt 2 pepsico McKinsy ‘Company Ss Olivier Badezet SVP& Managing Director Europe DDUGLAS CR ease Arh GROUPE ROCHER Passion @ Beauté Experienced Management Team Marlo Cormier SvP& Chief Financial Officer FOSSIL ilatva, os Deloitte. Joe
Slide 40: Key takeaways
Key takeaways
Slide 41: Key Takeaways
Key Takeaways Two complimentary business units that are stronger together Resilient business model with high replenishment core Poised for sustainable growth with meaningful new growth ideas in development Strong cash flow generation and balanced capital allocation strategy Experienced management te
Slide 42: Appendix
Appendix
Slide 43: Adjusted Gross and Operating Margin Reconciliation
Adjusted Gross Margin Reconcilliation Adjusted Operating Margin Reconcilliation FY23 FY24 FY25 FY23 FY24 FY25 Sales $ 3,728.1 $ 3,717.0 $ 3,701.4 Operating Earnings $ 325.0 $ 282.7 $ 327.8 Operating Margin 8.7% 7.6% 8.9% Cost of Products Sold $ 1,829.9 $ 1,827.0 $ 1,790.7 Resturcturing $ 12.0 $ (0.1
Slide 44: Adjusted Net Earnings and Adjusted Net Earnings Per Share
Adjusted Net Earnings and Adjusted Net Earnings Per Share Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY23 Q1 FY24 Q2 FY24 Q3 FY24 Q4 FY24 Q1 FY25 Q2 FY25 Q3 FY25 Q4 FY25 Net Earnings (GAAP) $ 50.3 $ 40.9 $ 50.8 $ 42.6 $ 38.4 $ 29.2 $ 37.7 $ 48.1 $ 61.0 $ 39.2 $ 45.7 $ 49.9 COVID-19 expenses 0.78 1.87 Loss on exting
Slide 45: Cash Flow and Adjusted EBITDA Reconciliation
Cash Flow Reconciliation FY22 FY23 FY24 FY25 Cash Flow from Operations $ 156.5 $ 249.3 $ 246.5 $ 274.8 Less: Capital Expenditures $ 99.3 $ 90.7 $ 101.1 $ 102.1 Plus: Sales of Property & Equipment $ - $ - $ - $ 43.6 Free Cash Flow $ 57.2 $ 158.6 $ 145.4 $ 216.3 Adjusted EBITDA Reconcilliation FY22 FY
Slide 46: Thank you
Thank you
Sally Beauty Holdings — Q4 2025 Earnings Presentation on 6ix