Regis Corporation posted a meaningful quarterly step-up in profitability and cash generation as the Alline portfolio contributes to a broader transformation that is designed to optimize the mix between company-owned and franchised salons. Q3 2025 revenue of $57.0 million rose 15.9% year over year, driven by Alline-related topline growth in the company-owned segment, while consolidated SSS declined 1.1% due to Easter timing and softer traffic. Management highlighted early signs of momentum from strategic actions, including a new stylist pay plan, pricing discipline, and a brand-wide initiative to standardize service menus and digital pricing. Adjusted EBITDA expanded 33% YoY to $7.1 million, and GAAP operating income rose 22% to $5.0 million, signaling improving operating leverage as the company transitions toward a more balanced salon mix and higher cash flow generation. Management reiterated that positive cash flow for the remainder of fiscal 2025 is expected, and outlined a disciplined capital allocation plan focused on debt reduction, liquidity preservation, and potential value-enhancing opportunities tied to the Alline and Supercuts transformation. The quarter also underscored Regis’ two-pronged go-forward priorities: (1) optimize and grow profitability in the company-owned portfolio, and (2) complete the holistic Supercuts transformation (brand strategy, omnichannel growth, and operational excellence). While the Alline contribution was modest in the quarter, the management team stressed that the initiative is a multiquarter accelerator for growth, cash flow, and brand impact. Investors should monitor SSS trends by brand, the cadence of Alline-driven synergies, debt trajectory, and the progress of the Supercuts strategy pillars as signals of sustained profitability and long-term value creation.