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Regis
(NASDAQ:RGS)
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Rating:58Neutral
Price Target:
$30.00
▲(12.15% Upside)
Action:Reiterated
Date:09/06/26
Overall score reflects a recovering financial profile with improved profitability and cash generation, but still constrained by leverage and inconsistent revenue/earnings durability. Technicals are mildly supportive with the stock trading above major moving averages and neutral-positive momentum. Valuation appears relatively low on P/E, while the earnings call reinforces operational progress but flags continued closures, traffic challenges, and refinancing/debt risks.
Positive Factors
Improved profitability
Higher revenue, operating income, and adjusted EBITDA indicate that Regis has made tangible progress in its operating turnaround. If sustained, this improvement can support reinvestment, strengthen financial flexibility, and provide a more durable earnings base than the company had during its earlier loss-making years.
Negative Factors
Ongoing salon closures
A continuing reduction in salon locations shrinks the company’s operating footprint and can pressure royalties, fees, and rental income. The expected continuation into fiscal 2027 indicates that network stabilization remains unresolved, limiting near-term growth and raising questions about unit economics.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved profitability
Higher revenue, operating income, and adjusted EBITDA indicate that Regis has made tangible progress in its operating turnaround. If sustained, this improvement can support reinvestment, strengthen financial flexibility, and provide a more durable earnings base than the company had during its earlier loss-making years.
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
$71.22M
Dividend Yield1.67%
Average Volume (3M)7.50K
Price to Earnings (P/E)10.3
Beta (1Y)0.82
Revenue Growth6.83%
EPS Growth-94.25%
CountryUS
Employees1,655
SectorConsumer Cyclical
Sector Strength84
IndustryPersonal Products & Services
Share Statistics
EPS (TTM)2.76
Shares Outstanding2,498,778
10 Day Avg. Volume10,315
30 Day Avg. Volume7,504
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)0.36
Price to Sales (P/S)0.31
P/FCF Ratio6.34
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 TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)3.04
Revenue Forecast (FY)$221.50M
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
null...
Regis Earnings Call Summary
Earnings Call Date:Sep 01, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
Management described fiscal 2026 as a year of meaningful progress, with higher operating income and adjusted EBITDA, substantially improved unrestricted cash generation, positive same-store sales and execution of the Supercuts transformation. The call also highlighted ongoing challenges, including a 7.3% fourth-quarter revenue decline, a net reduction of 199 salons, continued traffic weakness, lower franchise EBITDA, lease cost inflation and the need to refinance significant debt. Overall, the positive operating and cash-generation trends, together with the number of initiatives underway, outweighed the stated challenges.Positive Updates
Full-Year Revenue and Profitability Growth
Fiscal 2026 consolidated revenue was $224.5 million, up $14.4 million from fiscal 2025. Operating income increased to $24.4 million from $19.9 million, and adjusted EBITDA rose to $32.8 million from $31.6 million, primarily driven by increased company-owned salon revenue and lower G&A expenses.
Negative Updates
Fourth-Quarter Revenue Decline
Fourth-quarter total revenue was $56 million, a decrease of $4.4 million or 7.3% from the prior year. The decline was primarily driven by lower non-margin franchise rental income, reflecting a reduction in franchise salon count and the transition of certain franchisees to their own leases.
Read all updates
Q4-2026 Updates
Positive
Negative
Full-Year Revenue and Profitability Growth
Fiscal 2026 consolidated revenue was $224.5 million, up $14.4 million from fiscal 2025. Operating income increased to $24.4 million from $19.9 million, and adjusted EBITDA rose to $32.8 million from $31.6 million, primarily driven by increased company-owned salon revenue and lower G&A expenses.
Read all positive updates
Company Guidance
For fiscal 2027, Regis said it does not expect fiscal year 2027 closures to be materially different from fiscal year 2026, while expecting fewer closures in its company locations in fiscal 2027; it expects to maintain expense discipline in 2027 and is on track to achieve its labor margin targets for fiscal '27. The company plans to test its new remodel and refresh design in 3 company locations this fall and share the results with franchisees by November, and expects its annual excess cash flow sweep payment in September to reduce cash and outstanding debt by approximately $7 million to $8 million. Its objectives are to reduce closures and ultimately return the system to net unit growth while pursuing sustainable, profitable growth.Regis Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
48
Neutral
Cash Flow
52
Neutral
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 224.49M | 210.13M | 202.98M | 233.33M | 275.97M |
| Gross Profit | 84.11M | 80.51M | 76.55M | 76.54M | 65.62M |
| EBITDA | 30.66M | 24.75M | 119.27M | 17.86M | -25.02M |
| Net Income | 6.94M | 123.54M | 91.06M | -7.38M | -85.86M |
Balance Sheet | |||||
| Total Assets | 547.22M | 692.62M | 530.50M | 607.38M | 769.30M |
| Cash, Cash Equivalents and Short-Term Investments | 26.02M | 35.20M | 10.07M | 9.51M | 17.04M |
| Total Debt | 301.43M | 350.76M | 399.28M | 550.65M | 691.63M |
| Total Liabilities | 353.41M | 507.00M | 473.71M | 644.11M | 800.25M |
| Stockholders Equity | 193.81M | 185.62M | 56.79M | -36.73M | -30.95M |
Cash Flow | |||||
| Free Cash Flow | 11.13M | 12.45M | -2.42M | -8.37M | -43.95M |
| Operating Cash Flow | 13.10M | 13.74M | -2.04M | -7.89M | -38.64M |
| Investing Cash Flow | -1.97M | -11.45M | 1.62M | 4.02M | 7.68M |
| Financing Cash Flow | -2.26M | 3.59M | 8.36M | -2.15M | 29.42M |
Regis Technical Analysis
Positive
26.75
Price Trends
27.80
Positive
27.65
Positive
26.24
Positive
Market Momentum
0.17
Negative
57.91
Neutral
60.61
Neutral
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 26.75 is below the 20-day moving average (MA) of 27.52, below the 50-day MA of 27.80, and above the 200-day MA of 26.24, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 57.91 is Neutral, neither overbought nor oversold. The STOCH value of 60.61 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | $5.69B | 21.52 | 102.24% | ― | 9.26% | 12.10% | |
66 Neutral | $538.73M | 11.90 | 17.07% | 1.33% | 1.33% | -16.56% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $71.22M | 10.33 | 3.66% | 1.67% | 6.83% | -94.25% | |
51 Neutral | $180.18M | -1.80 | -33.75% | 1.88% | -11.63% | -108.59% | |
47 Neutral | $141.21M | -5.42 | -12.68% | 8.20% | -34.03% | -801.27% | |
44 Neutral | $7.27M | -1.87 | -68.38% | ― | ― | ― |
* Consumer Cyclical Sector Average
RGS
Regis
28.50
2.36
9.05%
CSV
Carriage Services
33.92
-9.04
-21.04%
MED
Medifast
12.63
-1.19
-8.61%
FTDR
frontdoor
82.60
17.33
26.55%
MRM
MEDIROM Healthcare Technologies
0.92
-1.02
-52.58%
WW
WW International, Inc.
18.02
-13.98
-43.69%
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.