LEASES (Tables)

12 Months Ended

Jun. 30, 2025

Schedule of Total Rent from Continuing Operations

Total rent includes the following:


	Fiscal Years
	2025		2024		2023

	(Dollars in thousands)
Office and warehouse rent (1)	$	2,855	$	3,075	$	3,594
Lease termination expense (2)	386		101		1,627
Lease liability benefit (3)	(289)		(326)		(1,773)
Franchise salon rent	856		596		2,109
Company-owned salon rent (4)	6,679		2,079		3,639
Total	$	10,487	$	5,525	$	9,196

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(1)Rental income associated with the sublease of corporate office space is recorded in other income and was $1.2 million and $0.2 million for the years ended June 30, 2025, and 2024, respectively.

(2)Costs incurred to exit salons before the lease end date in order to relieve the company of future lease obligations.

(3)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.

(4)Includes rent related to the Alline salons acquired in December 2024. See Note 16 to the Consolidated Financial Statements.

Schedule of Future Operating Lease Commitments, Lessor

As of June 30, 2025, 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 (in thousands):


Fiscal Year	Leases for Franchise Salons		Leases for Company-Owned Salons		Corporate Leases		Total Operating Lease Commitments		Sublease Income to be Received from Franchisees		Net Rent Commitments

2026	$	65,190	$	7,295	$	1,367	$	73,852	$	(65,190)	$	8,662
2027	56,300		5,182		1,401		62,883		(56,300)		6,583
2028	47,210		3,418		1,436		52,064		(47,210)		4,854
2029	37,106		1,893		1,472		40,471		(37,106)		3,365
2030	23,794		819		1,509		26,122		(23,794)		2,328
Thereafter	22,127		103		—		22,230		(22,127)		103
Total future obligations	$	251,727	$	18,710	$	7,185	$	277,622	$	(251,727)	$	25,895
Less amounts representing interest	35,110		1,849		698		37,657
Present value of lease liabilities	$	216,617	$	16,861	$	6,487	$	239,965
Less current lease liabilities	53,166		6,396		1,123		60,685
Long-term lease liabilities	$	163,451	$	10,465	$	5,364	$	179,280

Schedule of Future Operating Lease Commitments, Lessee

As of June 30, 2025, 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 (in thousands):


Fiscal Year	Leases for Franchise Salons		Leases for Company-Owned Salons		Corporate Leases		Total Operating Lease Commitments		Sublease Income to be Received from Franchisees		Net Rent Commitments

2026	$	65,190	$	7,295	$	1,367	$	73,852	$	(65,190)	$	8,662
2027	56,300		5,182		1,401		62,883		(56,300)		6,583
2028	47,210		3,418		1,436		52,064		(47,210)		4,854
2029	37,106		1,893		1,472		40,471		(37,106)		3,365
2030	23,794		819		1,509		26,122		(23,794)		2,328
Thereafter	22,127		103		—		22,230		(22,127)		103
Total future obligations	$	251,727	$	18,710	$	7,185	$	277,622	$	(251,727)	$	25,895
Less amounts representing interest	35,110		1,849		698		37,657
Present value of lease liabilities	$	216,617	$	16,861	$	6,487	$	239,965
Less current lease liabilities	53,166		6,396		1,123		60,685
Long-term lease liabilities	$	163,451	$	10,465	$	5,364	$	179,280

Schedule of Supplemental Operating Cash Flow Information and Non-Cash Activity Related to Operating Leases

Supplemental operating cash flow information and non-cash activity related to our operating leases are as follows:


	Fiscal Years
	2025		2024		2023

	(Dollars in thousands)
Cash paid for amounts included in the measurement of lease liabilities (1)	$	46,084	$	48,747	$	57,598
Right of use assets obtained in exchange for new lease liabilities	—		235		458

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(1)Cash paid for amounts included in the measurement of lease liabilities includes rent, common area maintenance, termination fees, settlements and legal fees, and commission payments. Other than leases with Walmart, franchisees pay landlords directly.