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what it is
Regis franchises and owns hair salons, then collects money from haircuts, color services, and product sales across 3,829 locations.
how it gets paid
Last year Regis made $210M in revenue. Franchise royalties was the main engine at $84.0M, or 40% of sales.
why it's growing
Revenue grew 3.5% last year. That is the clean contrast. Full-year revenue grew just 3.5% to $210M.
what just happened
Latest quarter revenue hit $116M, up 103% vs. prior year, while EPS came in at $0.64.
At a glance
C balance sheet — red flag territory — real financial stress
5/100 earnings predictability — expect surprises
0.5x trailing p/e — the market's not buying it — or you found a deal
26.8% return on capital — every dollar works hard here
$43.67 fy2025 eps est
xvary composite: 24/100 — weak
What they do
Regis franchises and owns hair salons, then collects money from haircuts, color services, and product sales across 3,829 locations.
This is not a software moat. It is a convenience moat. You know the brand names, the salons are everywhere, and 3,829 locations give Regis local scale that keeps franchise royalty checks coming. Franchising means other people run the store-level chaos while Regis takes a cut of service and product sales, which helped it reach a 12.9% operating margin.
How they make money
$210M
annual revenue · their business grew +3.5% last year
Franchise royalties
$84.0M
+4.0%
Company-owned salon services
$73.5M
+6.0%
Hair care product sales
$31.5M
+1.0%
Franchise fees and renewals
$12.6M
0.0%
Advertising and other revenue
$8.4M
2.0%
The products that matter
franchises hair salons
Franchise operations
$150M · 71% of listed revenue
This is the main economic engine: $150M in revenue and +28% growth in the data shown here. It matters because franchise fees should be the cleaner profit stream, but that edge weakens if the store count keeps falling.
franchise fees
operates owned salons
Company-owned salons
$57.1M · 27% of listed revenue
This segment produced $57.1M in the latest period referenced here, and company-owned salon sales rose 4.3%. That helps, but it is still the more labor-heavy part of the business.
4.3% growth
sells products and other items
Product & other revenue
$2.9M · 1.4% of listed revenue
At $2.9M, this line is too small to rescue anything. For you as a shareholder, it is filler, not the fix.
minor contributor
Key numbers
0.5x
trailing p/e
P/E → price-to-earnings → how much you pay for each dollar of profit. At 0.5x, the market is saying these earnings are not trusted.
$282M
long-term debt
Debt → money owed → fixed claims ahead of you. That debt load is about 5 times the company's roughly $56M market cap.
26.8%
return on capital
Return on capital → profit from money invested → business efficiency. That is strong on paper and weird next to a balance sheet grade of C.
3,829
locations
Location count → physical footprint → customer reach. You do not need luxury pricing if you are this easy to find.
Financial health
C
strength
- balance sheet grade C — very weak — significant financial distress
- risk rank 5 — safer than 5% of stocks
- price stability 5 / 100
- long-term debt $282M (83% of capital)
C — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for RGS right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Latest quarter revenue hit $116M, up 103% vs. prior year, while EPS came in at $0.64.
That is the clean contrast. Full-year revenue grew just 3.5% to $210M, but the latest quarter doubled. Quiet part out loud: this company is not stable, it is lumpy.
$116M
revenue
$0.64
eps
$5.9M
operating income
the number that mattered
The 103% revenue jump matters most because it shows how different Regis looks quarter to quarter versus its modest 3.5% annual growth.
source: company earnings report, 2026
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What could go wrong
the #1 risk is franchise attrition colliding with $282M of long-term debt.
med
Debt load
Long-term debt is $282M, or 83% of capital, against a market cap of roughly $56M. That gap tells you who has the louder voice if operations slip.
If refinancing gets harder or cash profit stalls, the equity can get squeezed by the capital structure before the salon story gets a second act.
med
Franchise contraction
Management reported a significant decrease in franchise locations in Q1 2026. For a franchisor, fewer doors means less future fee income and less proof that the model is healthy.
This pressures the cleaner, fee-based side of the business that should be carrying the turnaround.
med
Traffic softness
Salon visits are routine for many customers, but the budget end of the market still feels pressure when wallets tighten. Same-store sales were down 1.1% in Q3 2025.
A small traffic dip matters more when margins are thin and the balance sheet has little tolerance for weak quarters.
$282M of long-term debt against a $56M equity value means the balance sheet can overpower the operating story if franchise count and EBITDA do not steady.
source: institutional data · regulatory filings · risk analysis
Pay attention to
trend
Franchise count direction
Management reported a significant decrease in franchise locations in Q1 2026. If that does not stabilize, the higher-margin part of the model keeps shrinking.
metric
Adjusted EBITDA
Q2 2026 adjusted EBITDA reached $8M, up $900,000 from a year ago. You want follow-through, not one cleaner quarter.
calendar
Next earnings date
May 13, 2026 is the next scheduled proof point. For a turnaround with 5 / 100 predictability, every quarter is an audit.
risk
New CEO execution
Susan Lintonsmith took over in March 2026. Watch whether early decisions improve salon traffic and franchise retention before the debt story gets even louder.
Analyst rankings
earnings predictability
5 / 100
This score says the business has delivered very uneven earnings. in human-speak, analysts do not trust the cadence here.
risk rank
5
A risk rank of 5 means this screens as riskier than most stocks. For you, that means patience matters more than any single headline.
source: institutional data
Institutional activity
institutional ownership data for RGS is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$23
current price
n/a
target midpoint · n/a from current
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