SEGMENT INFORMATION

9 Months Ended

Mar. 31, 2025

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION:

Segment information is prepared on the same basis that the CODM reviews financial information for operational decision-making purposes. The Company's reportable operating segments consisted of the following salons:

	March 31, 2025		June 30, 2024
FRANCHISE SALONS:
Supercuts	1,746		1,946
SmartStyle/Cost Cutters in Walmart stores	1,099		1,232
Portfolio Brands	836		1,117
Total North American salons	3,681		4,295
Total International salons (1)	95		96
Total franchise salons	3,776		4,391
as a percent of total franchise and company-owned salons	92.4	%	99.6	%
COMPANY-OWNED SALONS (2):
Supercuts	104		3
SmartStyle/Cost Cutters in Walmart stores	—		8
Portfolio Brands	207		6
Total company-owned salons	311		17
as a percent of total franchise and company-owned salons	7.6	%	0.4	%
Total franchise and company-owned salons	4,087		4,408

(1)Canadian and Puerto Rican salons are included in the North American salon totals.

(2)Salon counts as of March 31, 2025, include salons acquired as part of the Alline Acquisition. See Note 13 to these unaudited Condensed Consolidated Financial Statements for further details on 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. 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, and lease termination fees.

	Three Months Ended March 31,				Nine Months Ended March 31,
	2025		2024		2025		2024
	(Dollars in thousands)
Revenues:
Franchise	$	38,004	$	47,857	$	126,548	$	148,567
Company-owned	18,953		1,324		23,188		5,039
Total revenue	56,957		49,181		149,736		153,606
Segment adjusted EBITDA:
Franchise	6,282		6,125		20,683		21,346
Company-owned	843		(773)		1,219		(1,606)
Total	7,125		5,352		21,902		19,740
Unallocated expenses (1)	(611)		(247)		(4,525)		(215)
Depreciation and amortization	(739)		(1,009)		(1,645)		(2,056)
Long-lived asset impairment	—		—		(352)		(170)
Stock-based compensation	(439)		(310)		(2,043)		(1,201)
Interest expense	(5,087)		(6,153)		(14,781)		(18,529)
Income tax benefit (expense)	1		(54)		90		201
Income from discontinued operations	—		89		8,396		2,089
Total net income (loss) (2)	$	250	$	(2,332)	$	7,042	$	(141)

(1)Unallocated expenses for the three and nine months ended March 31, 2025, include severance expenses of $0.4 million and $2.7 million, respectively.

(2)Total is a recalculation; line items calculated individually may not sum to total due to rounding.