Regis Corporation (RGS) reported a 7.9% year-over-year decline in revenue for Q3 fiscal 2026, totaling $52.4 million, while net income increased to $0.7 million, or 26 cents per diluted share, up from $0.3 million, or 8 cents per share, in the same quarter last year. The stock gained 10.9% following the earnings report, outperforming the S&P 500’s 0.3% increase.
Same-store sales rose by 2.6%, driven by a 5% increase at Supercuts and a 9.6% gain in company-owned salons. Transitioning trends showed franchise revenue fell 12.4% to $33.3 million. The company generated $5.3 million in unrestricted cash from operations this quarter, marking six consecutive quarters of positive cash flow, with total cash and cash equivalents at $22.9 million.
CEO Susan Lintonsmith outlined strategic priorities to enhance Supercuts, improve company-owned salon operations, and revive SmartStyle, amidst rising labor costs and pricing adjustments to cope with margin pressures. Franchise closures moderated with a net decline of 150 salons in the first nine months of fiscal 2026, compared to larger declines in previous years.
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