Regis Corporation (RGS) AI Stock Analysis
RGS AI stock analysis summary
AI ResearchRegis Corporation (RGS) operates, owns, and franchises hair salons under brands such as Supercuts and SmartStyle. In FY2026, the company generated $224.5M in revenue and $6.9M in net income, while delivering free cash flow of $11.1M. However, it carries significant leverage, with total debt of $301.4M against $26.0M in cash and short-term investments.
- Market cap
- $72.5M
- Revenue (TTM)
- $224.5M
- P/E
- 11.7x fwd 31.2x
- 1Y return
- -4.8% S&P 500 16.8%
- Avg. target
- $42.00 44.8% vs last close
Bull case
- The company delivered positive free cash flow of $11.1M in FY2026, building on $12.4M generated in FY2025.
- Regis beat analyst earnings per share expectations in all 4 of its last 4 reported quarters.
- The sole analyst covering the stock has a mean price target of $42.00, implying 44.8% upside over the October 16, 2026 share price.
Bear case
- Total debt stood at $301.4M as of June 30, 2026, resulting in net debt of $275.4M that substantially exceeds its cash balance of $26.0M.
- In the latest quarter ended June 30, 2026, quarterly revenue fell 7.3% and quarterly earnings dropped 96.5% year-over-year.
- Over the past five years, the stock has declined 50.3%, trailing the S&P 500 return of 83.0% over the same period.
What Regis does
Founded in 1922 and headquartered in Minneapolis, Minnesota, Regis Corporation operates in the hairstyling and hair care industry across the United States, Canada, Puerto Rico, and the United Kingdom. The company operates through two segments: Franchise Salons and Company-Owned Salons. Services include haircutting, styling, coloring, shampooing, conditioning, and beauty product sales. Its brand portfolio features Supercuts, SmartStyle, Cost Cutters, Roosters, First Choice Haircutters, and Magicuts. As of June 30, 2022, its network included 5,576 salons, comprising 5,395 franchised locations, 105 company-owned salons, and 76 non-controlling ownership locations. It also runs accredited cosmetology schools and customer mobile applications.
Growth and profitability
Regis Corporation increased revenue by 6.8% in FY2026 to $224.5M, following a 3.5% gain in FY2025 to $210.1M, though its 5-year revenue CAGR from FY2021 to FY2026 was -11.4%. Gross margin reached 37.5% in FY2026, compared to 38.3% in FY2025 and 23.8% in FY2022. Operating margin was 10.9% in FY2026, up from 9.5% in FY2025. Net income decreased to $6.9M in FY2026 from $123.5M in FY2025, yielding diluted EPS of $1.95. For the latest quarter ended June 30, 2026, quarterly revenue fell 7.3% year-over-year, and quarterly earnings fell 96.5% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, Regis Corporation held $26.0M in cash and short-term investments alongside total debt of $301.4M, resulting in net debt of $275.4M. Shareholders' equity stood at $193.8M, representing a debt-to-equity ratio of 1.56. The company reported a current ratio of 0.62. In FY2026, operating cash flow was $13.1M, capital expenditures were $2.0M, and free cash flow reached $11.1M. Over the past five years, the company's share count increased by 25.9%.
Valuation and performance
At $29.00 on October 16, 2026, Regis Corporation held a market capitalization of $72.5M and an enterprise value of $345.4M. The stock traded at a trailing P/E of 11.7x, below the 18.0x median of its US-listed Consumer Cyclical peers, but its forward P/E of 31.2x was higher than the peer median of 14.1x. Its price-to-sales ratio was 0.3x versus the peer median of 0.7x, and EV/EBITDA was 11.2x compared to 11.1x for peers. Over the trailing 12 months, the stock fell 4.8%, lagging the 16.8% return for the S&P 500.
What analysts expect
Wall Street coverage is limited to 1 analyst, who gives Regis Corporation a StrongBuy rating with a mean price target of $42.00, representing 44.8% upside from the closing price of $29.00 on October 16, 2026. For the current fiscal year ending June 30, 2027, consensus estimates forecast revenue of $221.5M and EPS of $3.14, representing 16.3% EPS growth. Regis has beaten EPS estimates in each of the last 4 quarters. The company's next scheduled earnings date is November 11, 2026.
Key risks and what to watch
- A current ratio of 0.62 indicates potential liquidity strain in meeting short-term obligations.
- A debt-to-equity ratio of 1.56 leaves the company sensitive to changes in financing costs and operating performance.
- The 5-year revenue CAGR of -11.4% highlights long-term top-line contraction across historical periods.
- The stock's 5-year share count change of 25.9% reflects past equity dilution for shareholders.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this RGS AI stock analysis
This page is an AI-written research summary of Regis Corporation (RGS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: RGS income statement, RGS balance sheet, RGS key metrics, RGS analyst forecast, RGS chart. See the RGS stock overview for the latest quote and news.
RGS AI stock analysis FAQ
What brands does Regis Corporation operate?
Regis Corporation's portfolio includes salon concepts such as Supercuts, SmartStyle, Cost Cutters, Roosters, First Choice Haircutters, and Magicuts. As of June 30, 2022, the company operated across 5,576 locations, including 5,395 franchised salons.
What is Regis Corporation's debt level?
As of June 30, 2026, Regis Corporation held total debt of $301.4M and cash and short-term investments of $26.0M, resulting in net debt of $275.4M. Its debt-to-equity ratio was 1.56.
How does Regis Corporation's valuation compare to industry peers?
Regis traded at a trailing P/E of 11.7x and a price-to-sales ratio of 0.3x, both below the US-listed Consumer Cyclical peer medians of 18.0x and 0.7x, respectively. However, its forward P/E of 31.2x stands above the peer median of 14.1x.
Does Regis Corporation pay a dividend?
Regis Corporation does not currently pay a dividend based on reported company figures.
What are analyst expectations for Regis Corporation's next fiscal year?
For the fiscal year ending June 30, 2027, the single analyst covering the stock expects revenue of $221.5M and EPS of $3.14, representing projected EPS growth of 16.3%.