SEGMENT INFORMATION (Tables)

6 Months Ended

Dec. 31, 2024

Schedule of Reportable Operating Segment Salons

The Company's reportable operating segments consisted of the following salons:


	December 31, 2024		June 30, 2024

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

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(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. Consistent 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

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(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.