Regis 2025 Q3 Earnings Strong Recovery with 110.7% Net Income Surge

Regis (RGS) reported its fiscal 2025 Q3 earnings on May 13th, 2025. The company posted a robust performance with net income surging by 110.7%, marking a significant turnaround from the previous year's loss. Despite a modest decline in same-store sales, Regis's strategic transformation resulted in a 33% growth in adjusted EBITDA. The company has raised its guidance for fiscal 2025, forecasting positive cash flow and improvements in sales and profitability, aligning with its long-term growth strategy.

Revenue
Regis exhibited a notable revenue increase of 15.8% in Q3 2025, reaching $56.96 million compared to $49.18 million in Q3 2024. The revenue breakdown includes $15.94 million from royalties and fees, with royalties contributing $13.53 million and fees $2.40 million. Advertising fund contributions were $5.20 million, while franchise rental income brought in $16.87 million. Company-owned salon revenue totaled $18.95 million.

Earnings/Net Income
Regis returned to profitability in Q3 2025 with an EPS of $0.10, a significant improvement from a loss of $1.00 per share in Q3 2024. The net income of $250,000 reflects a strong recovery, reversing from a net loss of $2.33 million in the previous year. This illustrates a positive EPS performance.

Price Action
The stock price of Regis has edged up 1.74% during the latest trading day, has jumped 13.91% during the most recent full trading week, and has surged 27.96% month-to-date.

Post-Earnings Price Action Review
Investors in Regis shares have seen tangible benefits by employing a strategy of purchasing after revenue increases reported on the earnings release day and holding for 30 days. This approach has consistently delivered strong returns over the past five years, with a compound annual growth rate (CAGR) of approximately 18.11%. Although this slightly underperformed the broader market, it still generated substantial gains, highlighting its effectiveness amidst market volatility. The strategy's ability to yield consistent returns underscores its suitability for investors seeking steady growth, despite some inherent market fluctuations.

CEO Commentary
Matthew Doctor, President and CEO, emphasized Regis's comprehensive transformation to build resilience and efficiency. He expressed confidence in the strategic transition, citing improvements in key metrics like adjusted EBITDA, which grew by 33%, and positive operating cash flow. Doctor noted significant progress and remained optimistic about delivering long-term stakeholder value.

Guidance
Regis projects continued positive cash generation for fiscal year 2025, with anticipated improvements in sales and profitability within its company-owned salon portfolio. Adjusted G&A expenses are expected to rise to approximately $40.5 million, with future projections between $43 million to $45 million. Strategic initiatives aim to drive long-term stakeholder value.

Additional News
Regis Corporation recently announced its participation in the 37th Annual ROTH Conference held in March 2025. This event is a platform for growth companies across various sectors, including business services and technology. Additionally, Regis expanded its leadership team by appointing Susan Lintonsmith to the Board of Directors in January 2025. Lintonsmith brings valuable experience from the food and beverage industry, which is expected to enhance Regis's strategic business perspective. Lastly, the company completed the acquisition of Alline Salon Group in December 2024, adding $83 million in revenue and $5.8 million in EBITDA, which is anticipated to further bolster Regis's operational capabilities and growth trajectory.