Regis (RGS) 6 Nov 24 2025 Q1 Earnings call transcript

Regis Corporation, a leading international hair salon franchisor, recently held its first quarter 2025 earnings call, providing insights into the company's strategic initiatives and financial performance. The call, led by Executive Vice President and Chief Financial Officer, Kersten Zupfer, and President and CEO, Matthew Doctor, highlighted several key themes and trends that underscore Regis' ongoing transformation and growth strategies.

Financial Performance: A Stabilizing Trend

The first quarter results for Regis reflected a stabilization of the business, as the company continues to invest in its long-term growth. The adjusted financials were largely in line with the prior year, with a slight decline in GAAP financials attributed to one-time expenses related to a reorganization and increased stock-based compensation expenses. The company reported a decline in same-store sales by 1.1% compared to the previous year, with a focus on addressing long-term traffic trends and strengthening its value proposition.

Regis achieved adjusted EBITDA of $7.6 million in the quarter, representing a 2 percentage point margin expansion versus the prior year. Despite a slight decline in adjusted EBITDA dollars due to lower store counts and favorable timing of expenses in the prior year, the company's adjusted earnings per share rose to $0.93 compared to $0.71 in the previous year.

Strategic Initiatives: Operational Rigor and Digital Platform

Regis is focused on driving growth by enhancing operational rigor and optimizing its digital platform. The company's initiatives aim to provide an exceptional in-salon experience and enable convenience for guests. Notable achievements include the rollout of the Zenoti point-of-sale system across all salons and the launch of the Supercuts Rewards loyalty program across the entire network. These efforts are expected to strengthen relationships with guests and drive incremental frequency.

Operational Rigor: A Focus on Excellence Standards

Regis is making strides in enhancing operational rigor through its brand excellence standards, which define the proper end-to-end guest experience at the salon level. The company has launched these standards in its Supercuts brand and plans to roll them out to other brands by mid-calendar 2025. The standards cover uniformity in image, cleanliness, and service menus, with a focus on strengthening connections between stylists and guests. This initiative is expected to provide valuable insights and data, enabling the company to prioritize addressing top performance issues and share best practices.

Digital Efforts: Zenoti and Supercuts Rewards

Regis' digital efforts are aimed at optimizing the guest experience, from convenience at the salon to post-visit engagement. The rollout of the Zenoti point-of-sale system and Supercuts Rewards loyalty program is a significant step in this direction. These initiatives are expected to improve customer engagement, streamline operations, and drive incremental frequency.

Looking Ahead: Strategic Vision and Liquidity

Regis is taking a long-term view, aligning with its franchisees to create a winning strategy for the future. The company has engaged an external resource to facilitate vision and strategy planning, gathering critical feedback from the system to ensure full collaboration and buy-in. Regis continues to maintain and grow profitability despite the ongoing closures, with a smaller, high-performing footprint expected in the coming years.

Conclusion

Regis Corporation's first quarter 2025 earnings call highlighted the company's strategic focus on operational rigor, digital optimization, and long-term growth. Despite the challenges, Regis is making significant strides in enhancing its guest experience, leveraging digital tools, and positioning its brands and franchisees for success. The company's commitment to operational excellence and strategic initiatives underscores its resilience and forward-looking approach, signaling a promising outlook for its future growth.