XML 28 R18.htm IDEA: XBRL DOCUMENT v3.26.3
SEGMENT INFORMATION
 3 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION:
Segment information is presented on the same basis that the Company internally organizes the business for assessing performance and making decisions regarding allocation of resources. The Company's Chief Operating Decision Maker (CODM) is our President and Chief Executive Officer. Revenue, expenses, and operating income (loss) by segment are regularly reviewed by the CODM to make decisions about resources to be allocated to the segments, assess current performance, and forecast future performance. Our CODM manages our business primarily by reviewing consolidated results by segment on a quarterly basis and using those results along with forecasts and other non-financial information in our annual budgeting process. The Company's CODM does not evaluate reportable segments using assets and capital expenditure information. Consistent with our internal management reporting, unallocated expenses include certain items impacting comparability. These unallocated items are not defined terms within 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, goodwill and long-lived asset impairment charges, and the benefit from the Company's debt refinancing.

Financial information concerning the Company's reportable operating segments is shown in the tables below.


Three Months Ended September 30, 2026
(Dollars in thousands)
FranchiseCompany-ownedTotal
Total revenue$35,391 $18,947 $54,338 
Expenses (1)
General and administrative$6,954 $3,723 
Rent817 2,493 
Other expenses (2)20,274 — 
Company-owned salon expense— 13,638 
Depreciation and amortization179 956 
Segment profit (loss)$7,167 $(1,863)$5,304 
Unallocated expenses, net(4,718)
Income from operations before income taxes$586 
_______________________________________________________________________________

(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown.
(2)Other expenses include advertising fund and franchise rent expenses which are offset in total revenue and, as such, not used as a primary measure of performance by our CODM.
Three Months Ended September 30, 2025
(Dollars in thousands)
FranchiseCompany-ownedTotal
Total revenue$38,747 $20,211 $58,958 
Expenses (1)
General and administrative$10,209 $1,142 
Rent430 2,793 
Other expenses (2)22,927 — 
Company-owned salon expense— 14,768 
Depreciation and amortization210 558 
Segment profit$4,971 $950 $5,921 
Unallocated expenses, net(4,029)
Income from operations before income taxes$1,892 
_______________________________________________________________________________

(1)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown.
(2)Other expenses include advertising fund and franchise rent expenses which are offset in total revenue and, as such, not used as a primary measure of performance by our CODM.
The franchise reportable operating segment is comprised of franchise salons located mainly in strip center locations and Walmart stores. Franchise salons offer high quality, convenient and value-priced hair care and beauty services and retail products. This segment operates primarily in the U.S., Puerto Rico, and Canada and primarily includes the Supercuts, SmartStyle, Cost Cutters, First Choice Haircutters, Roosters, and Magicuts concepts.
The company-owned salons reportable operating segment is comprised of company-owned salons located mainly in strip center locations. Company-owned salons offer high quality, convenient and value priced hair care and beauty services and retail products. Supercuts, Cost Cutters, and Holiday Hair operating in the U.S. are generally within the company-owned salons segment.
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:
September 30,
2026		June 30,
2026
FRANCHISE SALONS:
Supercuts
1,622 1,634 
SmartStyle/Cost Cutters in Walmart stores
978 984 
Portfolio Brands
752 763 
Total North American salons
3,352 3,381 
Total International salons (1)
67 67 
Total franchise salons
3,419 3,448 
as a percent of total franchise and company-owned salons
93.0 %92.9 %
COMPANY-OWNED SALONS:
Supercuts
92 95 
Portfolio Brands
167 169 
Total company-owned salons
259 264 
as a percent of total franchise and company-owned salons
7.0 %7.1 %
Total franchise and company-owned salons
3,678 3,712 
_______________________________________________________________________________
(1)Canadian and Puerto Rican salons are included in the North American salon totals.