Regis (RGS) 10-Q 12 Feb 25 2025 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Dec. 31, 2024	Feb. 05, 2025
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2024
Document Transition Report	false
Entity File Number	1-12725
Entity Registrant Name	Regis Corp
Entity Incorporation, State or Country Code	MN
Entity Tax Identification Number	41-0749934
Entity Address, Address Line One	3701 Wayzata Boulevard,
Entity Address, City or Town	Minneapolis
Entity Address, State or Province	MN
Entity Address, Postal Zip Code	55416
City Area Code	952
Local Phone Number	947-7777
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		2,435,979
Entity Central Index Key	0000716643
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q2
Common Stock
Document Information [Line Items]
Title of 12(b) Security	Common Stock, $0.05 par value
Trading Symbol	RGS
Security Exchange Name	NASDAQ
Preferred Stock
Document Information [Line Items]
Title of 12(b) Security	Rights to Purchase Series A Junior Participating Preferred Stock, $0.05 par value
Trading Symbol	RGS
Security Exchange Name	NASDAQ

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2024	Jun. 30, 2024
Current assets:
Cash and cash equivalents (Note 7)	$ 10,198	$ 10,066
Receivables, net	8,313	9,434
Other current assets	24,921	22,550
Total current assets	43,432	42,050
Property and equipment, net	10,699	3,664
Goodwill (Note 1)	188,975	173,146
Other intangibles, net	2,301	2,427
Right of use asset (Note 8)	266,513	287,912
Other assets	18,191	21,297
Total assets	530,111	530,496
Current liabilities:
Accounts payable	16,451	12,747
Accrued expenses	20,097	21,644
Short-term lease liability (Note 8)	70,971	69,127
Total current liabilities	107,519	103,518
Long-term debt, net (Note 9)	111,532	99,545
Long-term lease liability (Note 8)	206,872	230,607
Other non-current liabilities	37,470	40,039
Total liabilities	463,393	473,709
Commitments and contingencies (Note 6)
Shareholders' equity:
Common stock, $0.05 par value; issued and outstanding, 2,435,979 and 2,279,948 common shares at December 31, 2024, and June 30, 2024, respectively	122	114
Additional paid-in capital	73,243	69,660
Accumulated other comprehensive income	8,132	8,584
Accumulated deficit	(14,779)	(21,571)
Total shareholders' equity	66,718	56,787
Total liabilities and shareholders' equity	$ 530,111	$ 530,496

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Dec. 31, 2024	Jun. 30, 2024
Statement of Financial Position [Abstract]
Common stock par value (in dollars per share)	$ 0.05	$ 0.05
Common stock issued (in shares)	2,435,979	2,279,948
Common stock outstanding (in shares)	2,435,979	2,279,948

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Revenues:
Franchise rental income (Note 8)		$ 20,022	$ 24,087	$ 41,658	$ 48,754
Total revenue		46,719	51,053	92,779	104,425
Operating expenses:
General and administrative		11,155	11,772	25,189	22,501
Rent		20,000	24,100	41,700	48,800
Advertising fund expense		5,490	6,808	11,131	14,034
Depreciation and amortization		460	677	906	1,047
Long lived asset impairment		0	170	352	170
Total operating expenses		41,222	46,274	85,148	92,212
Operating income		5,497	4,779	7,631	12,213
Other (expense) income:
Interest expense		(4,848)	(6,188)	(9,694)	(12,376)
Other, net		(307)	299	370	99
Income (loss) from operations before income taxes		342	(1,110)	(1,693)	(64)
Income tax (expense) benefit		(136)	107	89	255
Income (loss) from continuing operations		206	(1,003)	(1,604)	191
Income from discontinued operations (Note 3)		7,439	2,000	8,396	2,000
Net income		$ 7,645	$ 997	$ 6,792	$ 2,191
Basic:
Income (loss) from continuing operations, basic (in dollars per share)		$ 0.09	$ (0.43)	$ (0.68)	$ 0.08
Income from discontinued operations, basic (in dollars per share)		3.20	0.85	3.58	0.86
Net income per share, basic (in dollars per share)	[1]	3.29	0.43	2.90	0.94
Diluted:
Income (loss) from continuing operations, diluted (in dollars per share)		0.07	(0.43)	(0.68)	0.08
Income from discontinued operations, diluted (in dollars per share)		2.63	0.85	3.58	0.84
Net income per share, diluted (in dollars per share)	[1]	$ 2.71	$ 0.43	$ 2.90	$ 0.93
Weighted average common and common equivalent shares outstanding:
Basic (in shares)		2,324	2,341	2,346	2,336
Diluted (in shares)		2,825	2,341	2,346	2,367
Non-Franchise Lease
Operating expenses:
Rent		$ 2,149	$ 1,394	$ 3,213	$ 2,491
Franchisor
Operating expenses:
Rent		20,022	24,087	41,658	48,754
Royalties
Revenues:
Revenues		14,840	15,820	30,486	32,348
Fees
Revenues:
Revenues		2,917	2,492	5,269	5,123
Franchisees products
Revenues:
Revenues		0	67	0	451
Operating expenses:
Cost of product sales to franchisees		0	58	0	417
Advertising fund contributions
Revenues:
Revenues		5,490	6,808	11,131	14,034
Company-owned salon revenue
Revenues:
Revenues		3,450	1,779	4,235	3,715
Operating expenses:
Company-owned salon expense	[2]	$ 1,946	$ 1,308	$ 2,699	$ 2,798
[1] Total is a recalculation; line items calculated individually may not sum to total due to rounding.

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 7,645	$ 997	$ 6,792	$ 2,191
Foreign currency translation adjustments	(604)	292	(452)	3
Comprehensive income	$ 7,041	$ 1,289	$ 6,340	$ 2,194

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (DEFICIT) (Unaudited) - USD ($) $ in Thousands		Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Accumulated Deficit
Balance (in shares) at Jun. 30, 2023			2,277,828
Balance at Jun. 30, 2023		$ (36,730)	$ 114	$ 66,764	$ 9,023	$ (112,631)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		2,191				2,191
Foreign currency translation		3			3
Stock-based compensation		959		959
Net restricted stock activity (in shares)			1,622
Net restricted stock activity		(13)		(13)
Balance (in shares) at Dec. 31, 2023			2,279,450
Balance at Dec. 31, 2023		(33,590)	$ 114	67,710	9,026	(110,440)
Balance (in shares) at Sep. 30, 2023			2,278,479
Balance at Sep. 30, 2023		(35,264)	$ 114	67,325	8,734	(111,437)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		997				997
Foreign currency translation		292			292
Stock-based compensation		392		392
Net restricted stock activity (in shares)			971
Net restricted stock activity		(7)		(7)
Balance (in shares) at Dec. 31, 2023			2,279,450
Balance at Dec. 31, 2023		$ (33,590)	$ 114	67,710	9,026	(110,440)
Balance (in shares) at Jun. 30, 2024		2,279,948	2,279,948
Balance at Jun. 30, 2024		$ 56,787	$ 114	69,660	8,584	(21,571)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		6,792				6,792
Foreign currency translation		(452)			(452)
Stock-based compensation		665		665
Net restricted stock activity (in shares)			15,481
Net restricted stock activity		(74)	$ 1	(75)
Common stock issued in connection with Alline acquisition (Note 13) (in shares)	[1]		140,550
Common stock issued in connection with Alline acquisition (Note 13)	[1]	$ 3,000	$ 7	2,993		0
Balance (in shares) at Dec. 31, 2024		2,435,979	2,435,979
Balance at Dec. 31, 2024		$ 66,718	$ 122	73,243	8,132	(14,779)
Balance (in shares) at Sep. 30, 2024			2,282,395
Balance at Sep. 30, 2024		56,398	$ 114	69,972	8,736	(22,424)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income		7,645				7,645
Foreign currency translation		(604)			(604)
Stock-based compensation		330		330
Net restricted stock activity (in shares)			13,034
Net restricted stock activity		(51)	$ 1	(52)
Common stock issued in connection with Alline acquisition (Note 13) (in shares)	[1]		140,550
Common stock issued in connection with Alline acquisition (Note 13)	[1]	$ 3,000	$ 7	2,993		0
Balance (in shares) at Dec. 31, 2024		2,435,979	2,435,979
Balance at Dec. 31, 2024		$ 66,718	$ 122	$ 73,243	$ 8,132	$ (14,779)
[1] This activity represents the common stock issued in connection with the Alline acquisition on December 19, 2024. See Note 13 for additional details.

CONDENSED CONSOLIDATED STATEM_4

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands		6 Months Ended
		Dec. 31, 2024	Dec. 31, 2023
Cash flows provided by (used in) operating activities:
Net income		$ 6,792	$ 2,191
Adjustments to reconcile net income to cash provided by (used in) operating activities:
Gain from sale of OSP (Note 3)		(8,396)	(2,000)
Depreciation and amortization		853	1,005
Deferred income taxes		(197)	(29)
Non-cash interest		2,513	1,290
Long lived asset impairment		352	170
Stock-based compensation		1,604	890
Amortization of debt discount and financing costs		1,605	1,493
Other non-cash items affecting earnings		569	(29)
Changes in operating assets and liabilities, excluding the effects of asset sales and business acquisitions	[1]	(4,909)	(11,834)
Net cash provided by (used in) operating activities		786	(6,853)
Cash flows provided by (used in) investing activities:
Capital expenditures		(444)	(323)
Business acquisitions, net of cash acquired and certain obligations assumed		(18,631)	0
Proceeds from sale of OSP, net of fees		8,463	0
Net cash used in investing activities		(10,612)	(323)
Cash flows provided by (used in) financing activities:
Proceeds from issuance of long-term debt		15,000	0
Borrowings on revolving credit facility		4,326	4,000
Repayments of long-term debt		(526)	(455)
Repayments of revolving credit facility		(10,238)	0
Debt refinancing fees		(814)	(1,216)
Taxes paid for shares withheld		(75)	(13)
Net cash provided by financing activities		7,673	2,316
Effect of exchange rate changes on cash and cash equivalents		(106)	46
Decrease in cash, cash equivalents, and restricted cash		(2,259)	(4,814)
Cash, cash equivalents and restricted cash:
Beginning of period		29,313	21,396
End of period		$ 27,054	$ 16,582
[1] Changes in operating assets and liabilities exclude assets and liabilities sold and assets and liabilities acquired through business acquisitions.

BASIS OF PRESENTATION OF UNAUDI

BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Dec. 31, 2024
Accounting Policies [Abstract]
BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: The unaudited interim Condensed Consolidated Financial Statements of Regis Corporation (the Company) as of December 31, 2024 and for the three and six months ended December 31, 2024 and 2023, reflect, in the opinion of management, all adjustments necessary to fairly state the consolidated financial position of the Company as of December 31, 2024 and its consolidated results of operations, comprehensive income, shareholders' equity (deficit) and cash flows for the interim periods. Adjustments consist only of normal recurring items, except for any discussed in the notes below. The results of operations and cash flows for any interim period are not necessarily indicative of results of operations and cash flows for the full year. The accompanying unaudited interim Condensed Consolidated Financial Statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (SEC). Accordingly, they do not include all disclosures required by accounting principles generally accepted in the United States of America (GAAP). The unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the Company's Annual Report on Form 10-K for the year ended June 30, 2024, and other documents filed or furnished to the SEC during the current fiscal year. Alline Salon Group Acquisition: On December 19, 2024, the Company completed the previously announced transaction to acquire 100 percent ownership of Super C Group, LLC, doing business as Alline Salon Group (Alline). Under the terms of the agreement, the Company paid cash consideration of approximately $19 million, stock consideration valued at $3.0 million, and additional amounts for working capital adjustments and transaction-related fees. Refer to Note 13 to these unaudited Condensed Consolidated Financial Statements for additional information regarding the acquisition. The Company’s financial results for the three and six months ended December 31, 2024, include the results of Alline subsequent to the December 19, 2024, acquisition date. Goodwill: The Company assesses goodwill impairment on an annual basis, during the Company's fourth fiscal quarter, and between annual assessments if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. An interim impairment analysis was not required in the three months ended December 31, 2024. As further described in Note 13 of these unaudited Condensed Consolidated Financial Statements, the acquisition of Alline resulted in a preliminary recognition of approximately $16.6 million in goodwill, which was assigned to the company-owned operating segment. As of December 31, 2024, and June 30, 2024, the franchise reporting unit had goodwill of $172.4 million and $173.1 million, respectively, and the company-owned reporting unit had $16.6 million of goodwill at December 31, 2024. Acquisition-Related Costs: Acquisition-related costs of $1.2 million were incurred during the three and six months ended December 31, 2024, and primarily represent third-party consulting and legal expenses associated with the acquisition of Alline completed on December 19, 2024. These costs were recorded within general and administrative expenses on the December 31, 2024, unaudited Condensed Consolidated Statement of Operations. Inventory: On December 31, 2024, the inventory balance of $3.3 million primarily consists of beauty products sold and used in serving our customers in our company-owned salons. This amount is included in other current assets on the December 31, 2024, unaudited Condensed Consolidated Balance Sheet. The preliminary inventory balance acquired in connection with the Alline acquisition consists of shampoo, conditioner, hair care tools, and various other hair care and beauty products available for sale to salon customers and used in the servicing of our customers. The inventory is valued at the lower of cost or net realizable value, with cost determined using a weighted average. Reverse stock split: On November 29, 2023, the Company effected a one-for-20 reverse stock split of its outstanding common stock, par value $0.05 per share. As a result of the reverse stock split, every 20 shares of common stock issued and outstanding was converted into one share of common stock. The reverse stock split affected all shareholders uniformly and did not alter any shareholder’s percentage interest in the Company’s equity. No fractional shares were issued in connection with the reverse stock split. Shareholders who would otherwise be entitled to a fractional share of common stock were instead entitled to receive a proportional cash payment. All common share and per share amounts presented in the unaudited Condensed Consolidated Financial Statements and accompanying notes have been retroactively adjusted to reflect the reverse stock split. The reverse stock split affected all issued and outstanding shares of the Company’s common stock, as well as the number of shares of common stock available for issuance under the Company’s outstanding stock options and stock unit awards. The reverse stock split reduced the number of shares of common stock issuable upon the exercise of stock options outstanding and the vesting of stock unit awards outstanding immediately prior to the reverse stock split and correspondingly increased the respective exercise prices or other price dependent terms. Tax Benefits Preservation Plan: On January 28, 2024, the Board authorized and declared a dividend of one preferred stock purchase right (a Right) for each outstanding share of common stock. The dividend was payable on February 9, 2024 (the Record Date) to the holders of record of shares of common stock as of the close of business on the Record Date. The description and terms of the Rights are set forth in a Tax Benefits Preservation Plan (the Plan), dated as of January 29, 2024, as the same may be amended from time to time between the Company and Equiniti Trust Company, LLC, as Rights Agent. On January 27, 2025, the Company entered into Amendment No. 1 to the Plan, extending the expiration date of the Plan from January 29, 2025, to January 29, 2028 (the Extension). Pursuant to the terms of the Plan, the Company will submit the Extension to its shareholders for ratification at the next annual or special meeting of its shareholders. The Rights and the Plan will now expire on the earliest of (i) the close of business on January 29, 2028 (or such later date as may be established by the Board of Directors prior to the expiration date as long as the Extension is submitted to the shareholders of the Company for ratification at the next annual or special meeting of shareholders succeeding such extension), (ii) the time at which the Rights are redeemed or exchanged pursuant to the Plan, (iii) the time at which the Rights (other than Rights owned by an Acquiring Person, as defined by the Plan) are exchanged pursuant to the Plan, (iv) the repeal of Section 382 of the U.S. Internal Revenue Code of 1982, as amended, or any successor statute if the Board determines that the Plan is no longer necessary or desirable for the preservation of certain unrecognized tax benefits, or (v) the beginning of a taxable year to which the Board determines that no tax benefits may be carried forward. Recently Issued Accounting Standards Not Yet Adopted: In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and a description of other segment items (the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss) by reportable segment, as well as disclosure of the title and position of the entity’s CODM and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. The pronouncement is effective for annual reporting periods in fiscal years beginning after December 15, 2023, and for interim periods in fiscal years beginning after December 15, 2024. We do not expect the adoption of this pronouncement to impact our consolidated financial statements beyond the expansion of our reportable segment disclosures.

REVENUE RECOGNITION

REVENUE RECOGNITION	6 Months Ended
	Dec. 31, 2024
Revenue from Contract with Customer [Abstract]
REVENUE RECOGNITION	REVENUE RECOGNITION: Revenue Recognition and Deferred Revenue: Revenue recognized over time Royalty and advertising fund revenues represent sales-based royalties that are recognized in the period in which the sales occur. Generally, royalty and advertising fund revenues are billed and collected monthly in arrears. Advertising fund revenues and expenditures, which must be spent on marketing and related activities per the franchise agreements, are recorded on a gross basis within the unaudited Condensed Consolidated Statements of Operations. The treatment increases both the gross amount of reported revenue and expense and generally has no impact on operating income and net income. Franchise fees are billed and received upon the signing of the franchise agreement. Recognition of these fees is deferred until the salon opens and is then recognized over the term of the franchise agreement, which is typically 10 years. Franchise rental income is a result of the Company signing leases on behalf of franchisees and entering into sublease arrangements with the franchisees. The Company recognizes franchise rental income and expense when it is due to the landlord. Revenue recognized at point of sale Company-owned salon revenues are recognized at the time when the services are provided, or the guest receives and pays for the merchandise. Revenues from purchases made with gift cards are also recorded when the guest takes possession of the merchandise or services are provided. Gift cards issued by the Company are recorded as a liability (deferred revenue) upon sale and recognized as revenue upon redemption by the guest. Gift card breakage, the amount of gift cards which will not be redeemed, is recognized based on gift card balances with no activity over a 36-month basis. Product sales to franchisees are recorded at the time product is delivered to the franchisee. Information about receivables, broker fees and deferred revenue subject to the current revenue recognition guidance is as follows: December 31, June 30, Balance Sheet Classification (Dollars in thousands) Receivables from contracts with customers, net $ 6,923 $ 6,887 Receivables, net Broker fees 6,992 9,369 Other assets Deferred revenue: Current Gift card liability $ 784 $ 366 Accrued expenses Deferred franchise fees open salons 4,220 4,738 Accrued expenses Total current deferred revenue $ 5,004 $ 5,104 Non-current Deferred franchise fees unopened salons $ 1,580 $ 1,783 Other non-current liabilities Deferred franchise fees open salons 11,797 14,972 Other non-current liabilities Total non-current deferred revenue $ 13,377 $ 16,755 Receivables relate primarily to payments due for royalties, advertising fees and rent. The receivables balance is presented net of an allowance for expected credit losses (i.e., doubtful accounts). The Company monitors the financial condition of its franchisees and records provisions for estimated losses on receivables when it believes franchisees are unable to make their required payments based on factors such as delinquencies and aging trends. The allowance for credit losses is the Company's best estimate of the amount of probable credit losses related to existing accounts and notes receivables. The Company offers financing to SmartStyle ® franchisees when they remodel their salons. Included in other assets is a receivable of $0.8 million, partially offset by a credit loss reserve of $0.2 million, related to this financing program. The following table is a rollforward of the allowance for credit losses for the period: Six Months Ended December 31, 2024 2023 (Dollars in thousands) Balance at beginning of period $ 6,227 $ 7,297 Provision for doubtful accounts 1,485 459 Provision for franchisee rent 588 351 Recoveries (694) (333) Write-offs (132) (1,399) Other (1) 73 (67) Balance at end of period $ 7,547 $ 6,308 ______________________________________________________________________________________ (1) Includes currency fluctuation. Broker fees are the costs associated with using external brokers to identify new franchisees. These fees are paid upon the signing of the franchise agreement and recognized as general and administrative expense over the term of the franchise agreement. The following table is a rollforward of the broker fee balance for the periods indicated: Six Months Ended December 31, 2024 2023 (Dollars in thousands) Balance at beginning of period $ 9,369 $ 12,471 Amortization (1,246) (1,415) Write-offs (1) (1,131) (111) Balance at end of period $ 6,992 $ 10,945 ________________________________________________________________________________________ (1) Broker fees of $0.9 million were written off in connection with the Alline acquisition for the three and six months ended December 31, 2024. Deferred franchise fees related to open salons are generally recognized on a straight-line basis over the term of the franchise agreement. Franchise fee revenue for the three months ended December 31, 2024, and 2023 was $2.1 million and $1.6 million, respectively, and for the six months ended December 31, 2024, and 2023 was $3.7 million and $3.3 million, respectively. Estimated revenue expected to be recognized in the future related to deferred franchise fees for open salons as of December 31, 2024, is as follows (dollars in thousands): Remainder of 2025 $ 2,110 2026 3,977 2027 3,518 2028 2,796 2029 1,603 Thereafter 2,013 Total $ 16,017

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS	6 Months Ended
	Dec. 31, 2024
Discontinued Operations and Disposal Groups [Abstract]
DISCONTINUED OPERATIONS	DISCONTINUED OPERATIONS: On June 30, 2022, the Company sold its Opensalon ®

SHAREHOLDERS' EQUITY (DEFICIT)

SHAREHOLDERS' EQUITY (DEFICIT)	6 Months Ended
	Dec. 31, 2024
Stockholders' Equity Note [Abstract]
SHAREHOLDERS' EQUITY (DEFICIT)	SHAREHOLDERS' EQUITY (DEFICIT): Stock-Based Employee Compensation: During the three and six months ended December 31, 2024, the Company granted restricted stock units as follows: Three Months Ended December 31, 2024 Six Months Ended December 31, 2024 Restricted stock units (RSUs) 78,800 78,800 The RSUs granted during the three and six months ended December 31, 2024, vest in equal amounts over a three-year period subsequent to the grant date. Total compensation cost for stock-based payment arrangements totaling $0.2 million and $0.3 million, and $1.6 million and $0.9 million for the three and six months ended December 31, 2024, and 2023, respectively, were recorded within general and administrative expense on the unaudited Condensed Consolidated Statements of Operations. Alline Acquisition: In connection with the Alline acquisition, the Company issued 140,550 shares of common stock to affiliates of Alline, which are subject to a one-year lock-up following the closing. Stock Warrants Issued in Connection with Long-Term Debt: In connection with the 2024 Credit Agreement (as defined in Note 9 to the unaudited Condensed Consolidated Financial Statements), the Company issued detachable warrants to affiliates of TCW Asset Management Company, LLC, and Asilia Investments. Pursuant to the warrants, the holders can purchase up to an aggregate 407,542 shares of the Company’s common stock, par value $0.05 per share, at an exercise price equal to $7.00 per share. The warrants are exercisable for a seven-year period beginning June 24, 2024. The warrants may also be exercised on a cashless basis under certain circumstances under the agreement. In addition, in connection with the issuance of the warrants, the Company granted an exemption in favor of each holder pursuant to Section 36 of the Tax Benefits Plan, dated January 29, 2024, among the Company and Equiniti Trust Company, LLC, such that neither holder was deemed to be an Acquiring Person solely in connection with (i) the issuance of the warrants nor (ii) the acquisition of beneficial ownership of securities of the Company pursuant to the exercise of the warrants. The warrants and the shares of common stock issuable upon the exercise of such warrants have not been registered under the Securities Act of 1933, as amended (the Securities Act), and may not be sold absent registration or an applicable exemption from the registration requirements of the Securities Act. Based in part upon the representations of each holder in each warrant, the offering and sale of each warrant is exempt from registration under Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation D promulgated under the Securities Act. The warrants are valued at $1.5 million using a relative fair value method and were accounted for through additional paid-in capital. Further, the related financing fees incurred as a result of warrant issuance is recorded through a contra-equity account and amounts to $0.2 million. Prior to the second anniversary of the issue date, the Company may call for cancellation up to an aggregate 203,771 shares of common stock underlying the warrants for consideration equal to $15.00 per share; provided, that the volume weighted average price on the trading day immediately preceding the date the Company delivers a written call notice to a holder exceeds $20.00. As of December 31, 2024, the Company has no intentions of exercising this call provision. The Company will reassess this provision on a quarterly basis.

INCOME TAXES

INCOME TAXES	6 Months Ended
	Dec. 31, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES: A summary of the income tax (expense) benefit and corresponding effective tax rate is as follows: Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 (Dollars in thousands) Income tax (expense) benefit $ (136) $ 107 $ 89 $ 255 Effective tax rate 39.8 % 9.6 % 5.3 % 398.4 % The recorded tax provision and effective tax rate for the three and six months ended December 31, 2024, and 2023 were different than what would normally be expected, primarily due to the impact of the deferred tax valuation allowance. With limited exceptions, due to net operating loss carryforwards, our federal, state, and foreign tax returns are open to examination for all years since 2014, 2013, and 2016, respectively.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Dec. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES: The Company is a plaintiff or defendant in various lawsuits and claims arising out of the normal course of business. Like certain other franchisors, the Company has faced allegations of franchise regulation and agreement violations. Additionally, because the Company may be the tenant under a master lease for a location subleased to a franchisee, the Company has faced allegations of nonpayment of rent and associated charges. Further, similar to other retail employers, the Company has faced, and may continue to face, allegations of purported class-wide consumer and wage and hour violations. Litigation is inherently unpredictable, and the outcome of these matters cannot presently be determined. Although the actions are being vigorously defended, the Company could incur judgments in the future or enter into settlements of claims that could have a material adverse effect on its results of operations in any particular period.

CASH, CASH EQUIVALENTS AND REST

CASH, CASH EQUIVALENTS AND RESTRICTED CASH	6 Months Ended
	Dec. 31, 2024
Cash and Cash Equivalents [Abstract]
CASH, CASH EQUIVALENTS AND RESTRICTED CASH	CASH, CASH EQUIVALENTS AND RESTRICTED CASH: The table below reconciles the cash and cash equivalents balances and restricted cash balances recorded within other current assets on the unaudited Condensed Consolidated Balance Sheets to the amount of cash, cash equivalents and restricted cash reported on the unaudited Condensed Consolidated Statements of Cash Flows: December 31, June 30, (Dollars in thousands) Cash and cash equivalents $ 10,198 $ 10,066 Restricted cash, included in other current assets (1) 16,856 19,247 Total cash, cash equivalents and restricted cash $ 27,054 $ 29,313 _______________________________________________________________________________ (1) Restricted cash within other current assets primarily relates to consolidated advertising cooperatives funds, which can only be used to settle obligations of the respective cooperatives, and contractual obligations to collateralize the Company's self-insurance programs.

LEASES

LEASES	6 Months Ended
	Dec. 31, 2024
Leases [Abstract]
LEASES	LEASES: At contract inception, the Company determines whether a contract is, or contains, a lease by determining whether it conveys the right to control the use of the identified asset for a period of time. If the contract provides the Company the right to substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset, the Company considers it to be, or contain, a lease. The Company leases its company-owned salons and its corporate facilities under operating leases. The original terms range from one five Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 (Dollars in thousands) Office rent (1) $ 700 $ 748 $ 1,426 $ 1,574 Lease termination expense 27 174 79 161 Lease liability benefit (2) (65) (95) (128) (223) Franchise salon rent (3) 881 (96) 952 (434) Company-owned salon rent (4) 606 663 884 1,413 Total $ 2,149 $ 1,394 $ 3,213 $ 2,491 _______________________________________________________________________________ (1) Rental income associated with the sublease of corporate office space is recorded in other income and was $0.3 million and $0.6 million for the three and six months ended December 31, 2024, respectively. (2) Upon termination of previously impaired leases, the Company derecognizes the corresponding ROU assets and lease liabilities, which results in a net gain. In addition, the Company recognizes a benefit from lease liabilities decreasing in excess of previously impaired ROU assets for ongoing leases that were previously impaired. (3) Franchise salon rent is a benefit in the three and six months ended December 31, 2023, due to settlements with landlords for less than previously accrued. (4) Note that this amount includes 12 days of rent related to the Alline salons acquired during the quarter. See Note 13. The Company leases salon premises in which the majority of its franchisees operate and has entered into corresponding sublease arrangements with franchisees. All lease-related costs are passed through to the franchisees. The Company records the rental payments due from franchisees as franchise rental income and the corresponding amounts owed to landlords as franchise rent expense on the unaudited Condensed Consolidated Statements of Operations. For the three and six months ended December 31, 2024, and 2023, franchise rental income and franchise rent expense were $20.0 million and $24.1 million, and $41.7 million and $48.8 million, respectively. These leases generally have lease terms of approximately five years. The Company expects to renew the SmartStyle master lease and some leases for locations subleased to our franchisees upon expiration of those leases. Other leases are expected to be renewed by the franchisee upon expiration. All the Company's leases are operating leases. The lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date, including one lease term option when the lease is expected to be renewed. The ROU asset is initially and subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, less accrued lease payments and unamortized lease incentives received, if any. Expense for lease payments is recognized on a straight-line basis over the lease term, including the lease renewal option when the lease is expected to be renewed. Generally, the non-lease components, such as real estate taxes and other occupancy expenses, are separate from rent expense within the lease and are not included in the measurement of the lease liability because these charges are variable. The discount rate used to determine the present value of the lease payments is the Company's estimated collateralized incremental borrowing rate, based on the yield curve for the respective lease terms, as the interest rate implicit in the lease cannot generally be determined. The Company uses the portfolio approach in applying the discount rate based on the original lease term. The weighted average remaining lease term was 4.92 and 5.05 years, and the weighted average discount rate was 5.47% and 5.13% for all salon operating leases as of December 31, 2024, and June 30, 2024, respectively. As of December 31, 2024, future operating lease commitments, including one renewal option for leases expected to be renewed, to be paid and received by the Company were as follows (dollars in thousands): Fiscal Year Leases For Franchise Salons Leases For Company-Owned Salons Corporate Leases Total Operating Lease Payments Sublease Income to be Received from Franchisees Net Rent Commitments Remainder of 2025 $ 36,048 $ 4,270 $ 672 $ 40,990 $ (36,048) $ 4,942 2026 64,630 6,864 1,367 72,861 (64,630) 8,231 2027 56,168 4,941 1,401 62,510 (56,168) 6,342 2028 47,900 3,755 1,436 53,091 (47,900) 5,191 2029 37,938 2,746 1,472 42,156 (37,938) 4,218 Thereafter 40,076 5,323 1,509 46,908 (40,076) 6,832 Total future obligations $ 282,760 $ 27,899 $ 7,857 $ 318,516 $ (282,760) $ 35,756 Less amounts representing interest 34,429 5,407 837 40,673 Present value of lease liability $ 248,331 $ 22,492 $ 7,020 $ 277,843 Less short-term lease liability 57,955 11,932 1,084 70,971 Long-term lease liability $ 190,376 $ 10,560 $ 5,936 $ 206,872
LEASES	LEASES: At contract inception, the Company determines whether a contract is, or contains, a lease by determining whether it conveys the right to control the use of the identified asset for a period of time. If the contract provides the Company the right to substantially all of the economic benefits from the use of the identified asset and the right to direct the use of the identified asset, the Company considers it to be, or contain, a lease. The Company leases its company-owned salons and its corporate facilities under operating leases. The original terms range from one five Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 (Dollars in thousands) Office rent (1) $ 700 $ 748 $ 1,426 $ 1,574 Lease termination expense 27 174 79 161 Lease liability benefit (2) (65) (95) (128) (223) Franchise salon rent (3) 881 (96) 952 (434) Company-owned salon rent (4) 606 663 884 1,413 Total $ 2,149 $ 1,394 $ 3,213 $ 2,491 _______________________________________________________________________________ (1) Rental income associated with the sublease of corporate office space is recorded in other income and was $0.3 million and $0.6 million for the three and six months ended December 31, 2024, respectively. (2) Upon termination of previously impaired leases, the Company derecognizes the corresponding ROU assets and lease liabilities, which results in a net gain. In addition, the Company recognizes a benefit from lease liabilities decreasing in excess of previously impaired ROU assets for ongoing leases that were previously impaired. (3) Franchise salon rent is a benefit in the three and six months ended December 31, 2023, due to settlements with landlords for less than previously accrued. (4) Note that this amount includes 12 days of rent related to the Alline salons acquired during the quarter. See Note 13. The Company leases salon premises in which the majority of its franchisees operate and has entered into corresponding sublease arrangements with franchisees. All lease-related costs are passed through to the franchisees. The Company records the rental payments due from franchisees as franchise rental income and the corresponding amounts owed to landlords as franchise rent expense on the unaudited Condensed Consolidated Statements of Operations. For the three and six months ended December 31, 2024, and 2023, franchise rental income and franchise rent expense were $20.0 million and $24.1 million, and $41.7 million and $48.8 million, respectively. These leases generally have lease terms of approximately five years. The Company expects to renew the SmartStyle master lease and some leases for locations subleased to our franchisees upon expiration of those leases. Other leases are expected to be renewed by the franchisee upon expiration. All the Company's leases are operating leases. The lease liability is initially and subsequently measured at the present value of the unpaid lease payments at the lease commencement date, including one lease term option when the lease is expected to be renewed. The ROU asset is initially and subsequently measured throughout the lease term at the carrying amount of the lease liability, plus initial direct costs, less accrued lease payments and unamortized lease incentives received, if any. Expense for lease payments is recognized on a straight-line basis over the lease term, including the lease renewal option when the lease is expected to be renewed. Generally, the non-lease components, such as real estate taxes and other occupancy expenses, are separate from rent expense within the lease and are not included in the measurement of the lease liability because these charges are variable. The discount rate used to determine the present value of the lease payments is the Company's estimated collateralized incremental borrowing rate, based on the yield curve for the respective lease terms, as the interest rate implicit in the lease cannot generally be determined. The Company uses the portfolio approach in applying the discount rate based on the original lease term. The weighted average remaining lease term was 4.92 and 5.05 years, and the weighted average discount rate was 5.47% and 5.13% for all salon operating leases as of December 31, 2024, and June 30, 2024, respectively. As of December 31, 2024, future operating lease commitments, including one renewal option for leases expected to be renewed, to be paid and received by the Company were as follows (dollars in thousands): Fiscal Year Leases For Franchise Salons Leases For Company-Owned Salons Corporate Leases Total Operating Lease Payments Sublease Income to be Received from Franchisees Net Rent Commitments Remainder of 2025 $ 36,048 $ 4,270 $ 672 $ 40,990 $ (36,048) $ 4,942 2026 64,630 6,864 1,367 72,861 (64,630) 8,231 2027 56,168 4,941 1,401 62,510 (56,168) 6,342 2028 47,900 3,755 1,436 53,091 (47,900) 5,191 2029 37,938 2,746 1,472 42,156 (37,938) 4,218 Thereafter 40,076 5,323 1,509 46,908 (40,076) 6,832 Total future obligations $ 282,760 $ 27,899 $ 7,857 $ 318,516 $ (282,760) $ 35,756 Less amounts representing interest 34,429 5,407 837 40,673 Present value of lease liability $ 248,331 $ 22,492 $ 7,020 $ 277,843 Less short-term lease liability 57,955 11,932 1,084 70,971 Long-term lease liability $ 190,376 $ 10,560 $ 5,936 $ 206,872

FINANCING ARRANGEMENTS

FINANCING ARRANGEMENTS	6 Months Ended
	Dec. 31, 2024
Debt Disclosure [Abstract]
FINANCING ARRANGEMENTS	FINANCING ARRANGEMENTS: The Company's debt consists of the following: Three Months Ended December 31, 2024 Fiscal Year Balance at December 31, 2024 Balance at 2024 (Average cash interest rate %) (Dollars in thousands) Term loan 8.83% 9.68% $ 119,475 $ 105,000 Paid-in-kind interest 2,590 53 Deferred financing fees (13,508) (14,244) Term loan, net 108,557 90,809 Revolving credit facility 8.83% 9.68% 4,326 10,237 Fair value of warrants issued to lenders (1,351) (1,501) Total long-term debt, net $ 111,532 $ 99,545 In June 2024, the Company entered into a new credit agreement (the 2024 Credit Agreement). The 2024 Credit Agreement includes a $105.0 million term loan and a $25.0 million revolving credit facility, with a $10.0 million minimum liquidity covenant and matures June 24, 2029. The Company incurred $14.2 million of refinancing fees (including $3.9 million of Original Issue Discount fee) that will be amortized on a straight-line basis over the term of the agreement. As of December 31, 2024, the Company had outstanding standby letters of credit under the revolving credit facility of $9.3 million, primarily related to the Company's self-insurance program. As of December 31, 2024, total available liquidity and available credit under the $25.0 million revolving credit facility, as defined by the 2024 Credit Agreement Amendment, were $15.9 million and $15.7 million, respectively. The interest rate on the 2024 Credit Agreement is based on the secured overnight financing rate (SOFR) plus margin. The margin applicable to the 2024 Credit Agreement is subject to change based on the Company's total leverage ratio, remeasured annually on a predetermined date set by the lender. When the Company's total leverage ratio is greater than or equal to 3.75 to 1.00, the margin applicable to the new term loan and revolving credit facility is 9.00%. If the Company's leverage ratio is less than 3.75 to 1.00, the margin rate is 8.50%. In either scenario, 4.50% of the margin is paid-in-kind (PIK) interest (added to the principal balance and thereafter accruing interest), and the remainder is paid in cash. The SOFR base rate applicable to the debt has a floor of 2.50% per annum. The margin applicable to any letter of credit is 5.25% and paid in cash. The agreement contains typical provisions and financial covenants regarding maximum leverage and minimum fixed-charge coverage and a minimum liquidity threshold of $10.0 million. In connection with the 2024 Credit Agreement, the Company issued detachable stock warrants to the debt lenders. The Company was in compliance with its covenants and other requirements of the financing arrangements as of December 31, 2024. The Company's assets serve as collateral to the new credit facility. The agreement includes scheduled payments totaling $1.1 million in fiscal years 2025 and 2026, payable quarterly. In fiscal years 2027, 2028, and 2029, scheduled payments total $2.6 million. Additionally, excess cash is swept annually per terms of the agreement.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Dec. 31, 2024
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	FAIR VALUE MEASUREMENTS: Fair value measurements are categorized into one of three levels based on the lowest level of significant input used: Level 1 (unadjusted quoted prices in active markets); Level 2 (observable market inputs available at the measurement date, other than quoted prices included in Level 1); and Level 3 (unobservable inputs that cannot be corroborated by observable market data). Changes in the earn-out liability measured at fair value using Level 3 inputs were as follows: (Dollars in thousands) Earn-out liability at June 30, 2024 $ — Addition for acquisition 3,000 Earn-out liability at December 31, 2024 $ 3,000 Assets and Liabilities Measured at Fair Value on a Recurring Basis As of December 31, 2024, and June 30, 2024, the estimated fair value of the Company's cash, cash equivalents, restricted cash, receivables, inventory, deferred compensation assets, accounts payable and debt approximated their carrying values. The Company recorded the estimated fair value of the contingent consideration liability in the unaudited Condensed Consolidated Balance Sheets within accrued expenses and other non-current liabilities, totaling $3.0 million. The earn-out liability is adjusted at fair value at each reporting date until settled, and changes in fair value will be reported in our unaudited Condensed Consolidated Statements of Operations. The following provides information regarding fair value measurements for our remaining contingent earn-out liability as of December 31, 2024, according to the three-level fair value hierarchy: (Dollars in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Total Recurring Fair Value Measurements: Earn-out liability $ — $ — $ 3,000 $ 3,000 Total $ — $ — $ 3,000 $ 3,000 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We measure certain assets, including the Company's tangible fixed and other assets, and goodwill, at fair value on a nonrecurring basis when they are deemed to be other than temporarily impaired. The fair values of these assets are determined, when applicable, based on valuation techniques using the best information available, and may include quoted market prices, market comparables and discounted cash flow projections.

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Dec. 31, 2024
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE: The Company's basic earnings per share is calculated as net income divided by weighted average common shares outstanding, excluding unvested outstanding stock options (SOs), stock appreciation rights (SARs), restricted stock units (RSUs) and stock-settled performance units (PSUs). The Company's diluted earnings per share is calculated as net income divided by weighted average common shares and common share equivalents outstanding, which includes shares issued under the Company's stock-based compensation plans and warrants issued in connection with the Company's credit agreement. Stock-based awards with exercise prices greater than the average market price of the Company's common stock are excluded from the computation of diluted earnings per share. The computation of weighted average shares outstanding, assuming dilution, excluded 193,186 and 219,945, and 191,964 and 215,656 of stock-based awards during the three and six months ended December 31, 2024, and 2023, respectively, as they were not dilutive under the treasury stock method. The following table sets forth the presentation of shares outstanding used in the calculation of basic and diluted earnings per share (EPS): Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 (Shares in thousands) Denominator for basic EPS - weighted average common shares 2,324 2,341 2,346 2,336 Dilutive shares associated with option plans 501 — — 31 Denominator for diluted EPS - weighted average common shares and dilutive potential common shares 2,825 2,341 2,346 2,367 Options excluded from EPS calculation - anti-dilutive 193 220 192 216

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Dec. 31, 2024
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION: Segment information is prepared on the same basis that the chief operating decision maker (CODM) reviews financial information for operational decision-making purposes. The Company's reportable operating segments consisted of the following salons: December 31, June 30, FRANCHISE SALONS: Supercuts 1,772 1,946 SmartStyle/Cost Cutters in Walmart stores 1,190 1,232 Portfolio Brands 868 1,117 Total North American salons 3,830 4,295 Total International salons (1) 95 96 Total franchise salons 3,925 4,391 as a percent of total franchise and company-owned salons 92.4 % 99.6 % COMPANY-OWNED SALONS (2): Supercuts 111 3 SmartStyle/Cost Cutters in Walmart stores 1 8 Portfolio Brands 211 6 Total company-owned salons 323 17 as a percent of total franchise and company-owned salons 7.6 % 0.4 % Total franchise and company-owned salons 4,248 4,408 _______________________________________________________________________________ (1) Canadian and Puerto Rican salons are included in the North American salon totals. (2) Salon counts as of December 31, 2024, include the 314 salons acquired as part of the Alline acquisition. See Note 13 to these unaudited Condensed Consolidated Financial Statements for further details over the transaction. Financial information concerning the Company's reportable operating segments is shown in the table below. Segment information is presented in the same way that the Company internally organizes the business for assessing performance and making decisions regarding allocation of resources. The CODM’s primary measures of segment performance are revenue and segment adjusted EBITDA. Revenue and segment adjusted EBITDA are regularly reviewed by the CODM to make decisions about resources to be allocated to the segments, assess current performance, and forecast future performance. Asset information by segment is not provided to the CODM. Segment adjusted EBITDA is defined as income from continuing operations before interest, income taxes, depreciation, amortization, and impairment. Beginning in fiscal year 2025, management determined that stock-based compensation expenses will be excluded from adjusted EBITDA. This change has been retrospectively applied to all prior periods presented in this report. C onsistent with our internal management reporting, unallocated expenses include certain items impacting comparability. These unallocated items are not defined terms within U.S. GAAP. They are based on how management views the business, makes financial, operating and planning decisions and evaluates the Company's ongoing performance and are not attributable to either segment. Unallocated fees include one-time professional fees and settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired ROU assets, lease termination fees, asset retirement obligation costs and long-lived asset impairment charges. Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 (Dollars in thousands) Revenues: Franchise $ 43,269 $ 49,274 $ 88,544 $ 100,710 Company-owned 3,450 1,779 4,235 3,715 Total revenue 46,719 51,053 92,779 104,425 Segment adjusted EBITDA (1): Franchise 6,414 6,632 14,400 15,222 Company-owned 725 (337) 376 (835) Total 7,139 6,295 14,776 14,387 Unallocated expenses (2) (1,315) (109) (3,913) 32 Depreciation and amortization (460) (677) (906) (1,047) Long-lived asset impairment — (170) (352) (170) Stock-based compensation (174) (261) (1,604) (890) Interest expense (4,848) (6,188) (9,694) (12,376) Income tax (expense) benefit (136) 107 89 255 Income from discontinued operations 7,439 2,000 8,396 2,000 Total net income (2) $ 7,645 $ 997 $ 6,792 $ 2,191 _______________________________________________________________________________ (1) Amounts from prior periods may not equal those per the prior period financials due to rounding from updating formulas for consistency purposes. (2) Unallocated expenses for the three and six months ended December 31, 2024, include severance expenses of $0 and $2.3 million, respectively. (3) Total is a recalculation; line items calculated individually may not sum to total due to rounding.

ACQUISITIONS

ACQUISITIONS	6 Months Ended
	Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
ACQUISITIONS	ACQUISITIONS: On December 19, 2024, the Company transferred consideration to acquire 100 percent of the equity interests of Alline (the Alline Acquisition), its largest franchisee, consisting of 314 salons. The transaction provides Regis with a turn-key operating infrastructure and gets the Company closer to salon operations alongside franchisees and the salon portfolio provides a testing ground for brand and operational initiatives. The transaction terminated the existing franchise arrangements between Regis and Alline, which resulted in the Company recognizing a loss of $0.2 million upon settlement, which is included in the unaudited Condensed Consolidated Financial Statements as a component of operating income for the three and six months ended December 31, 2024. The acquisition was accounted for as a business combination with the purchase price allocated on a preliminary basis using information available as of December 31, 2024. Assets acquired and liabilities assumed were recorded at estimated fair values based on management’s estimates, available information, and supportable assumptions that management considered reasonable. The purchase price and related allocation are preliminary and will likely be revised as a result of adjustments to the purchase price, additional information obtained and revisions to the provisional estimates of fair value, including, but not limited to, the completion of independent appraisals and valuations related to property and equipment, intangible assets, right of use assets and corresponding lease obligations, and the contingent consideration arrangement. The final valuations of assets acquired and liabilities assumed may be materially different from the estimated values shown below. The fair value of total consideration transferred by the Company is $24.6 million, as detailed below. Consideration (Dollars in thousands) Cash, net of cash acquired (1) $ 18,631 Equity instruments (140,552 of Regis common shares) (2) 3,000 Contingent consideration arrangement (preliminary estimate) (3) 3,000 Fair value of total consideration $ 24,631 _______________________________________________________________________________ (1) Includes cash transferred of $20.0 million, net of cash acquired of $1.4 million (2) The number of common shares (140,552) issued as part of the consideration paid for Alline was determined by dividing the $3.0 million by the 30-trading day volume weighted average price of the common stock as reported on the Nasdaq Global Market as of and including December 17, 2024. (3) The contingent consideration arrangement requires Regis to pay the former owners of Alline additional cash consideration if certain 4-Wall EBITDA or Adjusted EBITDA thresholds are met for each of the three subsequent annual earnout periods as well as a cumulative 4-Wall EBITDA or Adjusted EBITDA threshold for the cumulative three subsequent annual earnout periods. The potential undiscounted amount of all future payments that Regis could be required to make under the contingent consideration arrangement is between $0 and $3 million. Regis recognized a provisional fair value of $3.0 million on the acquisition date and as of December 31, 2024, which is included in accrued expenses ($1.0 million) and other non-current liabilities ($2.0 million) in the unaudited Condensed Consolidated Balance Sheet. The fair value of the contingent consideration arrangement is provisional while the Company completes its fair value assessment. 4-Wall EBITDA is defined as EBITDA excluding general and administrative expenses. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed as of the acquisition date: (Dollars in thousands) Current assets $ 3,640 Property and equipment 7,414 Goodwill (1) 16,594 Right of use assets 7,292 Other assets 56 Assumed current liabilities (2,352) Assumed lease liabilities (8,013) Fair value of total consideration $ 24,631 _______________________________________________________________________________ (1) Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Specifically, the goodwill that will be recorded as part of the acquisition of Alline includes the following: a. the expected synergies and other benefits that we believe will result from combining the operations of Alline with the operations of Regis; b. any intangible assets that do not qualify for separate recognition. Goodwill is not amortized and is deductible for tax purposes. All of the goodwill related to the acquisition of Alline is related to our company-owned operating segment. The Company has not yet obtained all the information required to finalize the valuations of the assets acquired and liabilities assumed, primarily because of the proximity of the acquisition date to the balance sheet date of December 31, 2024. As such, we expect that goodwill could change from the amount noted above. The Company incurred $1.2 million of acquisition related costs which are included in general and administrative expense in Regis’s unaudited Condensed Consolidated Statement of Operations for the periods ended December 31, 2024. The following table provides revenues and operating income from Alline that are included in our unaudited Condensed Consolidated Financial Statements: Three Months Ended December 31, 2024 Six Months Ended December 31, 2024 Total revenues $ 2,703 $ 2,703 Operating income 480 480 The following table presents pro forma information as if the Alline Acquisition had occurred on July 1, 2023: Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 Total revenues $ 62,161 $ 69,638 $ 125,719 $ 142,384 Operating income 8,024 5,413 10,861 12,723

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Pay vs Performance Disclosure
Net income	$ 7,645	$ 997	$ 6,792	$ 2,191

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Dec. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

BASIS OF PRESENTATION OF UNAU_2

BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Dec. 31, 2024
Accounting Policies [Abstract]
Goodwill	Goodwill:
Recently Issued Accounting Standards Not Yet Adopted	Recently Issued Accounting Standards Not Yet Adopted: In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures," which requires disclosure of significant segment expenses that are regularly provided to the chief operating decision maker (CODM) and a description of other segment items (the difference between segment revenue less the segment expenses disclosed under the significant expense principle and each reported measure of segment profit or loss) by reportable segment, as well as disclosure of the title and position of the entity’s CODM and an explanation of how the CODM uses the reported measures of segment profit or loss in assessing segment performance and deciding how to allocate resources. The pronouncement is effective for annual reporting periods in fiscal years beginning after December 15, 2023, and for interim periods in fiscal years beginning after December 15, 2024. We do not expect the adoption of this pronouncement to impact our consolidated financial statements beyond the expansion of our reportable segment disclosures.
Revenue Recognition and Deferred Revenue	Revenue Recognition and Deferred Revenue: Revenue recognized over time Royalty and advertising fund revenues represent sales-based royalties that are recognized in the period in which the sales occur. Generally, royalty and advertising fund revenues are billed and collected monthly in arrears. Advertising fund revenues and expenditures, which must be spent on marketing and related activities per the franchise agreements, are recorded on a gross basis within the unaudited Condensed Consolidated Statements of Operations. The treatment increases both the gross amount of reported revenue and expense and generally has no impact on operating income and net income. Franchise fees are billed and received upon the signing of the franchise agreement. Recognition of these fees is deferred until the salon opens and is then recognized over the term of the franchise agreement, which is typically 10 years. Franchise rental income is a result of the Company signing leases on behalf of franchisees and entering into sublease arrangements with the franchisees. The Company recognizes franchise rental income and expense when it is due to the landlord. Revenue recognized at point of sale
Assets and Liabilities Measured at Fair Value on a Recurring and Nonrecurring Basis	Assets and Liabilities Measured at Fair Value on a Recurring Basis As of December 31, 2024, and June 30, 2024, the estimated fair value of the Company's cash, cash equivalents, restricted cash, receivables, inventory, deferred compensation assets, accounts payable and debt approximated their carrying values. The Company recorded the estimated fair value of the contingent consideration liability in the unaudited Condensed Consolidated Balance Sheets within accrued expenses and other non-current liabilities, totaling $3.0 million. The earn-out liability is adjusted at fair value at each reporting date until settled, and changes in fair value will be reported in our unaudited Condensed Consolidated Statements of Operations.

REVENUE RECOGNITION (Tables)

REVENUE RECOGNITION (Tables)	6 Months Ended
	Dec. 31, 2024
Revenue from Contract with Customer [Abstract]
Schedule of Receivables, Broker Fees and Deferred Revenue	Information about receivables, broker fees and deferred revenue subject to the current revenue recognition guidance is as follows: December 31, June 30, Balance Sheet Classification (Dollars in thousands) Receivables from contracts with customers, net $ 6,923 $ 6,887 Receivables, net Broker fees 6,992 9,369 Other assets Deferred revenue: Current Gift card liability $ 784 $ 366 Accrued expenses Deferred franchise fees open salons 4,220 4,738 Accrued expenses Total current deferred revenue $ 5,004 $ 5,104 Non-current Deferred franchise fees unopened salons $ 1,580 $ 1,783 Other non-current liabilities Deferred franchise fees open salons 11,797 14,972 Other non-current liabilities Total non-current deferred revenue $ 13,377 $ 16,755
Schedule of Allowance for Doubtful Accounts	The following table is a rollforward of the allowance for credit losses for the period: Six Months Ended December 31, 2024 2023 (Dollars in thousands) Balance at beginning of period $ 6,227 $ 7,297 Provision for doubtful accounts 1,485 459 Provision for franchisee rent 588 351 Recoveries (694) (333) Write-offs (132) (1,399) Other (1) 73 (67) Balance at end of period $ 7,547 $ 6,308 ______________________________________________________________________________________ (1) Includes currency fluctuation.
Schedule of Rollforward of Broker Fees	The following table is a rollforward of the broker fee balance for the periods indicated: Six Months Ended December 31, 2024 2023 (Dollars in thousands) Balance at beginning of period $ 9,369 $ 12,471 Amortization (1,246) (1,415) Write-offs (1) (1,131) (111) Balance at end of period $ 6,992 $ 10,945 ________________________________________________________________________________________ (1) Broker fees of $0.9 million were written off in connection with the Alline acquisition for the three and six months ended December 31, 2024.
Schedule of Estimated Revenue Expected to be Recognized	Estimated revenue expected to be recognized in the future related to deferred franchise fees for open salons as of December 31, 2024, is as follows (dollars in thousands): Remainder of 2025 $ 2,110 2026 3,977 2027 3,518 2028 2,796 2029 1,603 Thereafter 2,013 Total $ 16,017

SHAREHOLDERS' EQUITY (DEFICIT)

SHAREHOLDERS' EQUITY (DEFICIT) (Tables)	6 Months Ended
	Dec. 31, 2024
Stockholders' Equity Note [Abstract]
Schedule of Share-based Equity Awards Granted	During the three and six months ended December 31, 2024, the Company granted restricted stock units as follows: Three Months Ended December 31, 2024 Six Months Ended December 31, 2024 Restricted stock units (RSUs) 78,800 78,800

INCOME TAXES (Tables)

INCOME TAXES (Tables)	6 Months Ended
	Dec. 31, 2024
Income Tax Disclosure [Abstract]
Schedule of Income Tax (Expense) Benefits and Corresponding Effective Tax Rates	A summary of the income tax (expense) benefit and corresponding effective tax rate is as follows: Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 (Dollars in thousands) Income tax (expense) benefit $ (136) $ 107 $ 89 $ 255 Effective tax rate 39.8 % 9.6 % 5.3 % 398.4 %

CASH, CASH EQUIVALENTS AND RE_2

CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables)	6 Months Ended
	Dec. 31, 2024
Cash and Cash Equivalents [Abstract]
Schedule of Cash and Cash Equivalents	The table below reconciles the cash and cash equivalents balances and restricted cash balances recorded within other current assets on the unaudited Condensed Consolidated Balance Sheets to the amount of cash, cash equivalents and restricted cash reported on the unaudited Condensed Consolidated Statements of Cash Flows: December 31, June 30, (Dollars in thousands) Cash and cash equivalents $ 10,198 $ 10,066 Restricted cash, included in other current assets (1) 16,856 19,247 Total cash, cash equivalents and restricted cash $ 27,054 $ 29,313 _______________________________________________________________________________ (1) Restricted cash within other current assets primarily relates to consolidated advertising cooperatives funds, which can only be used to settle obligations of the respective cooperatives, and contractual obligations to collateralize the Company's self-insurance programs.
Schedule of Restricted Cash and Cash Equivalents	The table below reconciles the cash and cash equivalents balances and restricted cash balances recorded within other current assets on the unaudited Condensed Consolidated Balance Sheets to the amount of cash, cash equivalents and restricted cash reported on the unaudited Condensed Consolidated Statements of Cash Flows: December 31, June 30, (Dollars in thousands) Cash and cash equivalents $ 10,198 $ 10,066 Restricted cash, included in other current assets (1) 16,856 19,247 Total cash, cash equivalents and restricted cash $ 27,054 $ 29,313 _______________________________________________________________________________ (1) Restricted cash within other current assets primarily relates to consolidated advertising cooperatives funds, which can only be used to settle obligations of the respective cooperatives, and contractual obligations to collateralize the Company's self-insurance programs.

LEASES (Tables)

LEASES (Tables)	6 Months Ended
	Dec. 31, 2024
Leases [Abstract]
Schedule of Real Estate Taxes and Other Occupancy Expenses	Total rent includes the following: Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 (Dollars in thousands) Office rent (1) $ 700 $ 748 $ 1,426 $ 1,574 Lease termination expense 27 174 79 161 Lease liability benefit (2) (65) (95) (128) (223) Franchise salon rent (3) 881 (96) 952 (434) Company-owned salon rent (4) 606 663 884 1,413 Total $ 2,149 $ 1,394 $ 3,213 $ 2,491 _______________________________________________________________________________ (1) Rental income associated with the sublease of corporate office space is recorded in other income and was $0.3 million and $0.6 million for the three and six months ended December 31, 2024, respectively. (2) Upon termination of previously impaired leases, the Company derecognizes the corresponding ROU assets and lease liabilities, which results in a net gain. In addition, the Company recognizes a benefit from lease liabilities decreasing in excess of previously impaired ROU assets for ongoing leases that were previously impaired. (3) Franchise salon rent is a benefit in the three and six months ended December 31, 2023, due to settlements with landlords for less than previously accrued. (4) Note that this amount includes 12 days of rent related to the Alline salons acquired during the quarter. See Note 13.
Schedule of Lessor, Future Operating Lease Commitments	As of December 31, 2024, future operating lease commitments, including one renewal option for leases expected to be renewed, to be paid and received by the Company were as follows (dollars in thousands): Fiscal Year Leases For Franchise Salons Leases For Company-Owned Salons Corporate Leases Total Operating Lease Payments Sublease Income to be Received from Franchisees Net Rent Commitments Remainder of 2025 $ 36,048 $ 4,270 $ 672 $ 40,990 $ (36,048) $ 4,942 2026 64,630 6,864 1,367 72,861 (64,630) 8,231 2027 56,168 4,941 1,401 62,510 (56,168) 6,342 2028 47,900 3,755 1,436 53,091 (47,900) 5,191 2029 37,938 2,746 1,472 42,156 (37,938) 4,218 Thereafter 40,076 5,323 1,509 46,908 (40,076) 6,832 Total future obligations $ 282,760 $ 27,899 $ 7,857 $ 318,516 $ (282,760) $ 35,756 Less amounts representing interest 34,429 5,407 837 40,673 Present value of lease liability $ 248,331 $ 22,492 $ 7,020 $ 277,843 Less short-term lease liability 57,955 11,932 1,084 70,971 Long-term lease liability $ 190,376 $ 10,560 $ 5,936 $ 206,872
Schedule of Lessee, Future Operating Lease Commitments	As of December 31, 2024, future operating lease commitments, including one renewal option for leases expected to be renewed, to be paid and received by the Company were as follows (dollars in thousands): Fiscal Year Leases For Franchise Salons Leases For Company-Owned Salons Corporate Leases Total Operating Lease Payments Sublease Income to be Received from Franchisees Net Rent Commitments Remainder of 2025 $ 36,048 $ 4,270 $ 672 $ 40,990 $ (36,048) $ 4,942 2026 64,630 6,864 1,367 72,861 (64,630) 8,231 2027 56,168 4,941 1,401 62,510 (56,168) 6,342 2028 47,900 3,755 1,436 53,091 (47,900) 5,191 2029 37,938 2,746 1,472 42,156 (37,938) 4,218 Thereafter 40,076 5,323 1,509 46,908 (40,076) 6,832 Total future obligations $ 282,760 $ 27,899 $ 7,857 $ 318,516 $ (282,760) $ 35,756 Less amounts representing interest 34,429 5,407 837 40,673 Present value of lease liability $ 248,331 $ 22,492 $ 7,020 $ 277,843 Less short-term lease liability 57,955 11,932 1,084 70,971 Long-term lease liability $ 190,376 $ 10,560 $ 5,936 $ 206,872

FINANCING ARRANGEMENTS (Tables)

FINANCING ARRANGEMENTS (Tables)	6 Months Ended
	Dec. 31, 2024
Debt Disclosure [Abstract]
Schedule of Long-Term Debt	The Company's debt consists of the following: Three Months Ended December 31, 2024 Fiscal Year Balance at December 31, 2024 Balance at 2024 (Average cash interest rate %) (Dollars in thousands) Term loan 8.83% 9.68% $ 119,475 $ 105,000 Paid-in-kind interest 2,590 53 Deferred financing fees (13,508) (14,244) Term loan, net 108,557 90,809 Revolving credit facility 8.83% 9.68% 4,326 10,237 Fair value of warrants issued to lenders (1,351) (1,501) Total long-term debt, net $ 111,532 $ 99,545

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Dec. 31, 2024
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	Changes in the earn-out liability measured at fair value using Level 3 inputs were as follows: (Dollars in thousands) Earn-out liability at June 30, 2024 $ — Addition for acquisition 3,000 Earn-out liability at December 31, 2024 $ 3,000 The following provides information regarding fair value measurements for our remaining contingent earn-out liability as of December 31, 2024, according to the three-level fair value hierarchy: (Dollars in thousands) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs Total Recurring Fair Value Measurements: Earn-out liability $ — $ — $ 3,000 $ 3,000 Total $ — $ — $ 3,000 $ 3,000

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Dec. 31, 2024
Earnings Per Share [Abstract]
Schedule of Shares Outstanding Used in the Calculation of Basic and Diluted Earnings Per Share ("EPS")	The following table sets forth the presentation of shares outstanding used in the calculation of basic and diluted earnings per share (EPS): Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 (Shares in thousands) Denominator for basic EPS - weighted average common shares 2,324 2,341 2,346 2,336 Dilutive shares associated with option plans 501 — — 31 Denominator for diluted EPS - weighted average common shares and dilutive potential common shares 2,825 2,341 2,346 2,367 Options excluded from EPS calculation - anti-dilutive 193 220 192 216

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Dec. 31, 2024
Segment Reporting [Abstract]
Schedule of Reportable Operating Segment Salons	The Company's reportable operating segments consisted of the following salons: December 31, June 30, FRANCHISE SALONS: Supercuts 1,772 1,946 SmartStyle/Cost Cutters in Walmart stores 1,190 1,232 Portfolio Brands 868 1,117 Total North American salons 3,830 4,295 Total International salons (1) 95 96 Total franchise salons 3,925 4,391 as a percent of total franchise and company-owned salons 92.4 % 99.6 % COMPANY-OWNED SALONS (2): Supercuts 111 3 SmartStyle/Cost Cutters in Walmart stores 1 8 Portfolio Brands 211 6 Total company-owned salons 323 17 as a percent of total franchise and company-owned salons 7.6 % 0.4 % Total franchise and company-owned salons 4,248 4,408 _______________________________________________________________________________ (1) Canadian and Puerto Rican salons are included in the North American salon totals. (2) Salon counts as of December 31, 2024, include the 314 salons acquired as part of the Alline acquisition. See Note 13 to these unaudited Condensed Consolidated Financial Statements for further details over the transaction.
Schedule of Summarized Financial Information of Reportable Operating Segments	Financial information concerning the Company's reportable operating segments is shown in the table below. Segment information is presented in the same way that the Company internally organizes the business for assessing performance and making decisions regarding allocation of resources. The CODM’s primary measures of segment performance are revenue and segment adjusted EBITDA. Revenue and segment adjusted EBITDA are regularly reviewed by the CODM to make decisions about resources to be allocated to the segments, assess current performance, and forecast future performance. Asset information by segment is not provided to the CODM. Segment adjusted EBITDA is defined as income from continuing operations before interest, income taxes, depreciation, amortization, and impairment. Beginning in fiscal year 2025, management determined that stock-based compensation expenses will be excluded from adjusted EBITDA. This change has been retrospectively applied to all prior periods presented in this report. C onsistent with our internal management reporting, unallocated expenses include certain items impacting comparability. These unallocated items are not defined terms within U.S. GAAP. They are based on how management views the business, makes financial, operating and planning decisions and evaluates the Company's ongoing performance and are not attributable to either segment. Unallocated fees include one-time professional fees and settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired ROU assets, lease termination fees, asset retirement obligation costs and long-lived asset impairment charges. Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 (Dollars in thousands) Revenues: Franchise $ 43,269 $ 49,274 $ 88,544 $ 100,710 Company-owned 3,450 1,779 4,235 3,715 Total revenue 46,719 51,053 92,779 104,425 Segment adjusted EBITDA (1): Franchise 6,414 6,632 14,400 15,222 Company-owned 725 (337) 376 (835) Total 7,139 6,295 14,776 14,387 Unallocated expenses (2) (1,315) (109) (3,913) 32 Depreciation and amortization (460) (677) (906) (1,047) Long-lived asset impairment — (170) (352) (170) Stock-based compensation (174) (261) (1,604) (890) Interest expense (4,848) (6,188) (9,694) (12,376) Income tax (expense) benefit (136) 107 89 255 Income from discontinued operations 7,439 2,000 8,396 2,000 Total net income (2) $ 7,645 $ 997 $ 6,792 $ 2,191 _______________________________________________________________________________ (1) Amounts from prior periods may not equal those per the prior period financials due to rounding from updating formulas for consistency purposes. (2) Unallocated expenses for the three and six months ended December 31, 2024, include severance expenses of $0 and $2.3 million, respectively. (3) Total is a recalculation; line items calculated individually may not sum to total due to rounding.

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	6 Months Ended
	Dec. 31, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]
Schedule of Business Acquisitions, by Acquisition	The fair value of total consideration transferred by the Company is $24.6 million, as detailed below. Consideration (Dollars in thousands) Cash, net of cash acquired (1) $ 18,631 Equity instruments (140,552 of Regis common shares) (2) 3,000 Contingent consideration arrangement (preliminary estimate) (3) 3,000 Fair value of total consideration $ 24,631 _______________________________________________________________________________ (1) Includes cash transferred of $20.0 million, net of cash acquired of $1.4 million (2) The number of common shares (140,552) issued as part of the consideration paid for Alline was determined by dividing the $3.0 million by the 30-trading day volume weighted average price of the common stock as reported on the Nasdaq Global Market as of and including December 17, 2024. (3) The contingent consideration arrangement requires Regis to pay the former owners of Alline additional cash consideration if certain 4-Wall EBITDA or Adjusted EBITDA thresholds are met for each of the three subsequent annual earnout periods as well as a cumulative 4-Wall EBITDA or Adjusted EBITDA threshold for the cumulative three subsequent annual earnout periods. The potential undiscounted amount of all future payments that Regis could be required to make under the contingent consideration arrangement is between $0 and $3 million. Regis recognized a provisional fair value of $3.0 million on the acquisition date and as of December 31, 2024, which is included in accrued expenses ($1.0 million) and other non-current liabilities ($2.0 million) in the unaudited Condensed Consolidated Balance Sheet. The fair value of the contingent consideration arrangement is provisional while the Company completes its fair value assessment. 4-Wall EBITDA is defined as EBITDA excluding general and administrative expenses. The following table provides revenues and operating income from Alline that are included in our unaudited Condensed Consolidated Financial Statements: Three Months Ended December 31, 2024 Six Months Ended December 31, 2024 Total revenues $ 2,703 $ 2,703 Operating income 480 480
Schedule of Estimated Fair Values of the Assets Acquired and Liabilities Assumed	The following table summarizes the estimated fair value of the assets acquired and liabilities assumed as of the acquisition date: (Dollars in thousands) Current assets $ 3,640 Property and equipment 7,414 Goodwill (1) 16,594 Right of use assets 7,292 Other assets 56 Assumed current liabilities (2,352) Assumed lease liabilities (8,013) Fair value of total consideration $ 24,631 _______________________________________________________________________________ (1) Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Specifically, the goodwill that will be recorded as part of the acquisition of Alline includes the following: a. the expected synergies and other benefits that we believe will result from combining the operations of Alline with the operations of Regis; b. any intangible assets that do not qualify for separate recognition.
Schedule of Business Acquisition, Pro Forma Information	The following table presents pro forma information as if the Alline Acquisition had occurred on July 1, 2023: Three Months Ended December 31, Six Months Ended December 31, 2024 2023 2024 2023 Total revenues $ 62,161 $ 69,638 $ 125,719 $ 142,384 Operating income 8,024 5,413 10,861 12,723

BASIS OF PRESENTATION OF UNAU_3

BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Alline Salon Group Acquisition (Details) - USD ($) $ in Thousands		6 Months Ended
	Dec. 19, 2024	Dec. 31, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Cash consideration	$ 19,000	$ 18,631	$ 0
Alline Salon Group
Business Acquisition [Line Items]
Percentage of voting interests acquired	100%
Cash consideration	$ 18,631
Equity instruments	$ 3,000

BASIS OF PRESENTATION OF UNAU_4

BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Goodwill (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 19, 2024	Jun. 30, 2024
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Goodwill	$ 188,975		$ 173,146
Franchise Reporting Unit
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Goodwill	172,400		$ 173,100
Company-owned
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Goodwill	16,600
Alline Salon Group
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Goodwill	$ 16,600	$ 16,594

BASIS OF PRESENTATION OF UNAU_5

BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Acquisition-Related Costs (Details) $ in Millions	Dec. 31, 2024 USD ($)
Alline Salon Group
Business Acquisition [Line Items]
Acquisition-related costs	$ 1.2

BASIS OF PRESENTATION OF UNAU_6

BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Inventory (Details) $ in Millions	Dec. 31, 2024 USD ($)
Accounting Changes and Error Corrections [Abstract]
Inventory, net	$ 3.3

BASIS OF PRESENTATION OF UNAU_7

BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Reverse Stock Split (Details)	Nov. 29, 2023 $ / shares	Dec. 31, 2024 $ / shares	Jun. 30, 2024 $ / shares	Jun. 24, 2024 $ / shares
Accounting Policies [Abstract]
Common stock par value (in dollars per share)	$ 0.05	$ 0.05	$ 0.05	$ 0.05
Conversion ratio	0.05

BASIS OF PRESENTATION OF UNAU_8

BASIS OF PRESENTATION OF UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Tax Benefits Preservation Plan (Details)	Jan. 28, 2024 shares
Accounting Changes and Error Corrections [Abstract]
Preferred stock purchase right	1

REVENUE RECOGNITION - Narrative

REVENUE RECOGNITION - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue recognized, gift card breakage period	36 months		36 months
Financing receivable	$ 0.8		$ 0.8
Financing receivable, allowance for credit loss	0.2		0.2
Franchise Fees
Disaggregation of Revenue [Line Items]
Revenues	$ 2.1	$ 1.6	$ 3.7	$ 3.3
Revenue recognized over time
Disaggregation of Revenue [Line Items]
Performance obligations expected to be satisfied, expected timing (in years)			10 years

REVENUE RECOGNITION - Schedule

REVENUE RECOGNITION - Schedule of Receivables, Broker Fees and Deferred Revenue (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Revenue from Contract with Customer [Abstract]
Receivables from contracts with customers, net	$ 6,923	$ 6,887
Broker fees	6,992	9,369	$ 10,945	$ 12,471
Deferred revenue
Current deferred revenue	5,004	5,104
Non-current deferred revenue	13,377	16,755
Gift card liability
Deferred revenue
Current deferred revenue	784	366
Deferred franchise fees open salons
Deferred revenue
Current deferred revenue	4,220	4,738
Non-current deferred revenue	11,797	14,972
Deferred franchise fees unopened salons
Deferred revenue
Non-current deferred revenue	$ 1,580	$ 1,783

REVENUE RECOGNITION - Schedul_2

REVENUE RECOGNITION - Schedule of Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023
Accounts Receivable, Allowance for Credit Loss [Roll Forward]
Balance at beginning of period	$ 6,227	$ 7,297
Provision for doubtful accounts	1,485	459
Provision for franchisee rent	588	351
Recoveries	(694)	(333)
Write-offs	(132)	(1,399)
Other	73	(67)
Balance at end of period	$ 7,547	$ 6,308

REVENUE RECOGNITION - Schedul_3

REVENUE RECOGNITION - Schedule of Rollforward of Broker Fees (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 31, 2024	Dec. 31, 2024	Dec. 31, 2023
Capitalized Contract Cost [Line Items]
Balance at beginning of period		$ 9,369	$ 12,471
Amortization		(1,246)	(1,415)
Write-offs		(1,131)	(111)
Balance at end of period	$ 6,992	6,992	$ 10,945
Alline Salon Group
Capitalized Contract Cost [Line Items]
Write-offs	$ (900)	$ (900)

REVENUE RECOGNITION - Schedul_4

REVENUE RECOGNITION - Schedule of Estimated Revenue Expected to be Recognized (Details) $ in Thousands	Dec. 31, 2024 USD ($)
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied	$ 16,017
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	16,017
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied	2,110
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 2,110
Performance obligations expected to be satisfied, expected timing	6 months
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied	$ 3,977
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 3,977
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied	$ 3,518
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 3,518
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied	$ 2,796
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 2,796
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied	$ 1,603
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 1,603
Performance obligations expected to be satisfied, expected timing	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2029-07-01
Revenue from Contract with Customer [Abstract]
Performance obligations expected to be satisfied	$ 2,013
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligations expected to be satisfied	$ 2,013
Performance obligations expected to be satisfied, expected timing

DISCONTINUED OPERATIONS (Detail

DISCONTINUED OPERATIONS (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash used in investing activities, discontinued operations			$ 8.5
Opensalon Pro
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Proceeds from divestiture of businesses	$ 7.5	$ 2	$ 8.5	$ 2

SHAREHOLDERS' EQUITY (DEFICIT_2

SHAREHOLDERS' EQUITY (DEFICIT) - Equity Awards Granted (Details) - shares	3 Months Ended	6 Months Ended
	Dec. 31, 2024	Dec. 31, 2024
Restricted stock units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock granted (in shares)	78,800	78,800

SHAREHOLDERS' EQUITY (DEFICIT_3

SHAREHOLDERS' EQUITY (DEFICIT) - Narrative (Details) - USD ($) $ in Millions		3 Months Ended		6 Months Ended
	Dec. 19, 2024	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense		$ 0.2	$ 0.3	$ 1.6	$ 0.9
Alline Salon Group
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Equity interest issued or issuable (in shares)	140,552			140,550
Business Combination, Shares Issued, Lock-Out Period				1 year
Restricted stock units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period				3 years

SHAREHOLDERS' EQUITY (DEFICIT_4

SHAREHOLDERS' EQUITY (DEFICIT) - Stock Warrants Issued in Connection with Long-Term Debt (Details) - USD ($) $ / shares in Units, $ in Millions	Jun. 24, 2024	Dec. 31, 2024	Jun. 30, 2024	Nov. 29, 2023
Stockholders' Equity Note [Abstract]
Aggregate purchase of warrants (in shares)	407,542
Common stock par value (in dollars per share)	$ 0.05	$ 0.05	$ 0.05	$ 0.05
Exercise price of warrants (in dollars per share)	$ 7
Warrants exercisable term	7 years
Stock warrants issued in connection with debt	$ 1.5
Warrants, financing fees	$ 0.2
Aggregate cancelled warrants (in shares)	203,771
Exercise price of cancelled warrants (in dollars per share)	$ 15
Warrants exercise price (in dollars per share)	$ 20

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Income Tax Disclosure [Abstract]
Income tax (expense) benefit	$ (136)	$ 107	$ 89	$ 255
Effective tax rate	39.80%	9.60%	5.30%	398.40%

CASH, CASH EQUIVALENTS AND RE_3

CASH, CASH EQUIVALENTS AND RESTRICTED CASH - Schedule of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Jun. 30, 2024	Dec. 31, 2023	Jun. 30, 2023
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents	$ 10,198	$ 10,066
Restricted cash, included in other current assets	16,856	19,247
Total cash, cash equivalents and restricted cash	$ 27,054	$ 29,313	$ 16,582	$ 21,396

LEASES - Narrative (Details)

LEASES - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Dec. 31, 2024 USD ($) renewalOption lease	Dec. 31, 2023 USD ($)	Jun. 30, 2024
Lessee, Lease, Description [Line Items]
Franchise rental income	$ 20,022	$ 24,087	$ 41,658	$ 48,754
Franchise rent expense	$ 20,000	$ 24,100	$ 41,700	$ 48,800
Lessor, term of contract	5 years		5 years
Number of leases expected to be renewed | lease			1
Weighted average remaining lease term	4 years 11 months 1 day		4 years 11 months 1 day		5 years 18 days
Weighted average discount rate	5.47%		5.47%		5.13%
Number of renewal options | renewalOption			1
Minimum
Lessee, Lease, Description [Line Items]
Lessee, term of contract	1 year		1 year
Lessee, renewal term	5 years		5 years
Maximum
Lessee, Lease, Description [Line Items]
Lessee, term of contract	11 years		11 years
Lessee, renewal term	10 years		10 years

LEASES - Schedule of Real Estat

LEASES - Schedule of Real Estate Taxes and Other Occupancy Expenses (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Lessee, Lease, Description [Line Items]
Total	$ 20,000,000	$ 24,100,000	$ 41,700,000	$ 48,800,000
Non-Franchise Lease
Lessee, Lease, Description [Line Items]
Office rent	700,000	748,000	1,426,000	1,574,000
Lease termination expense	27,000	174,000	79,000	161,000
Lease liability benefit	(65,000)	(95,000)	(128,000)	(223,000)
Franchise salon rent	881,000	(96,000)	952,000	(434,000)
Company-owned salon rent	606,000	663,000	884,000	1,413,000
Total	2,149,000	$ 1,394,000	3,213,000	$ 2,491,000
Rental income	$ 300,000		$ 600,000

LEASES Future - Operating Lease

LEASES Future - Operating Lease Commitments (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Jun. 30, 2024
Leases, Operating [Abstract]
Remainder of 2025	$ 40,990
2026	72,861
2027	62,510
2028	53,091
2029	42,156
Thereafter	46,908
Total future obligations	318,516
Less amounts representing interest	40,673
Present value of lease liability	277,843
Less short-term lease liability	70,971	$ 69,127
Long-term lease liability	206,872	$ 230,607
Sublease Income to be Received from Franchisees
Remainder of 2025	(36,048)
2026	(64,630)
2027	(56,168)
2028	(47,900)
2029	(37,938)
Thereafter	(40,076)
Total future obligations	(282,760)
Net Rent Commitments
Remainder of 2025	4,942
2026	8,231
2027	6,342
2028	5,191
2029	4,218
Thereafter	6,832
Total future obligations	35,756
Leases | Franchise
Leases, Operating [Abstract]
Remainder of 2025	36,048
2026	64,630
2027	56,168
2028	47,900
2029	37,938
Thereafter	40,076
Total future obligations	282,760
Less amounts representing interest	34,429
Present value of lease liability	248,331
Less short-term lease liability	57,955
Long-term lease liability	190,376
Leases | Company-Owned
Leases, Operating [Abstract]
Remainder of 2025	4,270
2026	6,864
2027	4,941
2028	3,755
2029	2,746
Thereafter	5,323
Total future obligations	27,899
Less amounts representing interest	5,407
Present value of lease liability	22,492
Less short-term lease liability	11,932
Long-term lease liability	10,560
Corporate Leases
Leases, Operating [Abstract]
Remainder of 2025	672
2026	1,367
2027	1,401
2028	1,436
2029	1,472
Thereafter	1,509
Total future obligations	7,857
Less amounts representing interest	837
Present value of lease liability	7,020
Less short-term lease liability	1,084
Long-term lease liability	$ 5,936

FINANCING ARRANGEMENTS - Schedu

FINANCING ARRANGEMENTS - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 19, 2024	Jun. 30, 2024	Jun. 24, 2024
Debt Instrument [Line Items]
Paid-in-kind interest	$ 2,590		$ 53
Fair value of warrants issued to lenders	(1,351)		(1,501)
Total long-term debt, net	$ 111,532		99,545
Line of Credit
Debt Instrument [Line Items]
Deferred financing fees		$ (400)	$ (14,200)
Line of Credit | Term Loan
Debt Instrument [Line Items]
Interest rate	8.83%		9.68%	2.50%
Term loan	$ 119,475		$ 105,000
Deferred financing fees	(13,508)		(14,244)
Total long-term debt, net	$ 108,557		$ 90,809
Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Interest rate	8.83%		9.68%
Total long-term debt, net	$ 4,326		$ 10,237

FINANCING ARRANGEMENTS - Narrat

FINANCING ARRANGEMENTS - Narrative (Details) $ in Thousands		1 Months Ended
	Dec. 19, 2024 USD ($)	Jun. 30, 2024 USD ($)	Dec. 31, 2024 USD ($)	Jun. 24, 2024
Debt Instrument [Line Items]
Minimum liquidity		$ 10,000	$ 10,000
Liquidity amount			15,900
Remainder of 2025			1,100
2026			1,100
2027			2,600
2028			2,600
2029			2,600
Cash, cash equivalents, and short-term investments			10,200
Current liabilities		103,518	107,519
Line of Credit
Debt Instrument [Line Items]
Deferred financing fees	$ 400	14,200
Original issue discount fee		$ 3,900
Total leverage ratio		3.75
Variable rate		8.50%
Paid-in-kind		4.50%
Term Loan | Line of Credit
Debt Instrument [Line Items]
Term loan		$ 105,000
Deferred financing fees		$ 14,244	$ 13,508
Variable rate		9%
Interest rate		9.68%	8.83%	2.50%
Additional long-term debt	$ 15,000
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Maximum borrowing capacity		$ 25,000	$ 25,000
Unused borrowing amount capacity			9,300
Unused borrowing amount capacity			$ 15,700
Variable rate		9%
Interest rate		9.68%	8.83%
Letter of Credit | Line of Credit
Debt Instrument [Line Items]
Cash payment		5.25%

FAIR VALUE MEASUREMENTS - Sched

FAIR VALUE MEASUREMENTS - Schedule of Changes in the Earn-Out Liability (Details) $ in Millions	6 Months Ended
	Dec. 31, 2024 USD ($)
Contingent Consideration [Roll Forward]
Earn-out liability at June 30, 2024	$ 0
Addition for acquisition	3
Earn-out liability at December 31, 2024	$ 3

FAIR VALUE MEASUREMENTS - Narra

FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2024	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Earn-out liability	$ 3	$ 0

FAIR VALUE MEASUREMENTS - Sch_2

FAIR VALUE MEASUREMENTS - Schedule of Fair Value Measurements (Details) - USD ($) $ in Millions	Dec. 31, 2024	Jun. 30, 2024
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Earn-out liability	$ 3	$ 0
Total	3
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Earn-out liability	0
Total	0
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Earn-out liability	0
Total	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Earn-out liability	3
Total	$ 3

EARNINGS PER SHARE - Narrative

EARNINGS PER SHARE - Narrative (Details) - shares	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Awards excluded from diluted earnings per share computation (in shares)	193,000	220,000	192,000	216,000
Equity Based Compensation Awards
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Awards excluded from diluted earnings per share computation (in shares)	193,186	219,945	191,964	215,656

EARNINGS PER SHARE - Schedule o

EARNINGS PER SHARE - Schedule of Shares Outstanding Used in the Calculation of Basic and Diluted Earnings Per Share ("EPS") (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Earnings Per Share [Abstract]
Denominator for basic EPS - weighted average common shares (in shares)	2,324	2,341	2,346	2,336
Dilutive shares associated with option plans (in shares)	501	0	0	31
Denominator for diluted EPS - weighted average common shares and dilutive potential common shares (in shares)	2,825	2,341	2,346	2,367
Options excluded from EPS calculation - anti-dilutive (in shares)	193	220	192	216

SEGMENT INFORMATION - Schedule

SEGMENT INFORMATION - Schedule of Reportable Operating Segment Salons (Details)	Dec. 31, 2024 salon franchisee	Jun. 30, 2024 salon franchisee
Franchisor Disclosure [Line Items]
Number of salons | franchisee	4,248	4,408
Franchise
Franchisor Disclosure [Line Items]
Number of salons	3,925	4,391
Salons as a percent of total Company-owned and Franchise salons	92.40%	99.60%
Franchise | North American
Franchisor Disclosure [Line Items]
Number of salons	3,830	4,295
Franchise | International
Franchisor Disclosure [Line Items]
Number of salons	95	96
Franchise | Supercuts
Franchisor Disclosure [Line Items]
Number of salons	1,772	1,946
Franchise | SmartStyle/Cost Cutters in Walmart stores
Franchisor Disclosure [Line Items]
Number of salons	1,190	1,232
Franchise | Portfolio Brands
Franchisor Disclosure [Line Items]
Number of salons	868	1,117
Company-Owned
Franchisor Disclosure [Line Items]
Number of salons	323	17
Salons as a percent of total Company-owned and Franchise salons	7.60%	0.40%
Company-Owned | Supercuts
Franchisor Disclosure [Line Items]
Number of salons	111	3
Company-Owned | SmartStyle/Cost Cutters in Walmart stores
Franchisor Disclosure [Line Items]
Number of salons	1	8
Company-Owned | Portfolio Brands
Franchisor Disclosure [Line Items]
Number of salons	211	6

SEGMENT INFORMATION - Schedul_2

SEGMENT INFORMATION - Schedule of Summarized Financial Information of Reportable Operating Segments (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Revenues:
Revenues	$ 46,719,000	$ 51,053,000	$ 92,779,000	$ 104,425,000
Segment adjusted EBITDA
Unallocated expenses	(1,315,000)	(109,000)	(3,913,000)	32,000
Depreciation and amortization	(460,000)	(677,000)	(906,000)	(1,047,000)
Long-lived asset impairment	0	(170,000)	(352,000)	(170,000)
Stock-based compensation	(174,000)	(261,000)	(1,604,000)	(890,000)
Interest expense	(4,848,000)	(6,188,000)	(9,694,000)	(12,376,000)
Income tax (expense) benefit	(136,000)	107,000	89,000	255,000
Income from discontinued operations	7,439,000	2,000,000	8,396,000	2,000,000
Net income	7,645,000	997,000	6,792,000	2,191,000
Severance expenses	0		2,300,000
Leases | Reportable Segments
Segment adjusted EBITDA
Adjusted EBITDA	7,139,000	6,295,000	14,776,000	14,387,000
Leases | Franchise
Revenues:
Revenues	43,269,000	49,274,000	88,544,000	100,710,000
Segment adjusted EBITDA
Adjusted EBITDA	6,414,000	6,632,000	14,400,000	15,222,000
Leases | Company-owned
Revenues:
Revenues	3,450,000	1,779,000	4,235,000	3,715,000
Segment adjusted EBITDA
Adjusted EBITDA	$ 725,000	$ (337,000)	$ 376,000	$ (835,000)

ACQUISITIONS - Narrative (Detai

ACQUISITIONS - Narrative (Details) $ in Millions	3 Months Ended	6 Months Ended
	Dec. 31, 2024 USD ($)	Dec. 31, 2024 USD ($)	Dec. 19, 2024 salon
Business Acquisition [Line Items]
Number of salons acquired | salon			314
Loss on franchise agreement	$ 0.2	$ 0.2
Alline Salon Group
Business Acquisition [Line Items]
Percentage of voting interests acquired			100%
Acquisition-related costs	$ 1.2	$ 1.2

ACQUISITIONS - Schedule of Busi

ACQUISITIONS - Schedule of Business Acquisitions, by Acquisition (Details) $ in Thousands		6 Months Ended
	Dec. 19, 2024 USD ($) franchisee numberOfTradingDays shares	Dec. 31, 2024 USD ($) shares	Dec. 31, 2023 USD ($)	Jun. 30, 2024 USD ($)
Business Acquisition [Line Items]
Cash, net of cash acquired	$ 19,000	$ 18,631	$ 0
Earn-out liability		$ 3,000		$ 0
Alline Salon Group
Business Acquisition [Line Items]
Cash, net of cash acquired	18,631
Equity instruments	3,000
Contingent consideration arrangement (preliminary estimate)	3,000
Fair value of total consideration	24,631
Cash transferred, gross	20,000
Cash acquired	$ 1,400
Equity interest issued or issuable (in shares) | shares	140,552	140,550
Threshold trading days | numberOfTradingDays	30
Subsequent annual earnout period | franchisee	3
Contingent consideration arrangement, range of outcomes, value, low	$ 0
Contingent consideration arrangement, range of outcomes, value, high	3,000
Earn-out liability	3,000
Contingent consideration, liability, current	1,000
Contingent consideration, liability, noncurrent	$ 2,000

ACQUISITIONS - Schedule of Esti

ACQUISITIONS - Schedule of Estimated Fair Values of the Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands	Dec. 31, 2024	Dec. 19, 2024	Jun. 30, 2024
Business Acquisition [Line Items]
Goodwill	$ 188,975		$ 173,146
Alline Salon Group
Business Acquisition [Line Items]
Current assets		$ 3,640
Property and equipment		7,414
Goodwill	$ 16,600	16,594
Right of use assets		7,292
Other assets		56
Assumed current liabilities		(2,352)
Assumed lease liabilities		(8,013)
Fair value of total consideration		$ 24,631

ACQUISITIONS - Schedule of Net

ACQUISITIONS - Schedule of Net Revenues and Operating Income from Acquisitions (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Business Acquisition [Line Items]
Operating income	$ 5,497	$ 4,779	$ 7,631	$ 12,213
Alline Salon Group
Business Acquisition [Line Items]
Total revenues	2,703		2,703
Operating income	$ 480		$ 480

ACQUISITIONS - Schedule of Bu_2

ACQUISITIONS - Schedule of Business Acquisition, Pro Forma Information (Details) - Alline Salon Group - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2024	Dec. 31, 2023	Dec. 31, 2024	Dec. 31, 2023
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
Total revenues	$ 62,161	$ 69,638	$ 125,719	$ 142,384
Operating income	$ 8,024	$ 5,413	$ 10,861	$ 12,723