Exhibit 99.1

 

				Contact: Jeff Harkins Investor Relations 940-297-4131 jharkins@sallybeauty.com

Sally Beauty Holdings Reports First Quarter Fiscal 2026 Results

 

•

Q1 Consolidated Net Sales Increased 0.6%; Consolidated Comparable Sales Flat

 

•

Q1 GAAP Diluted EPS Decreased 22%; Adjusted Diluted EPS Increased 12%

 

•

Q1 Cash Flow from Operations of $93 Million Deployed to Invest for Growth, Strengthen Balance Sheet and Return Value to Shareholders

 

•

Company Raises Low End of Fiscal 2026 EPS Guidance

PLANO, Texas, February 9, 2026 – Sally Beauty Holdings, Inc. (NYSE: SBH) (the “Company”), the leader in professional hair color, today announced financial results for its first quarter ended December 31, 2025. The Company will hold a conference call today at 7:30 a.m. Central Time to discuss these results and its business.

“Our first quarter performance marks a strong start to fiscal 2026,” said Denise Paulonis, president and chief executive officer. “We achieved top line results that met our expectations, maintained healthy gross margins and delivered adjusted EPS growth of 12% - consistent with our long-term financial algorithm. Our robust cash flow from operations enabled us to invest for growth, reduce debt and return value to shareholders. We also made continued progress on our strategic initiatives designed to accelerate growth and increase profitability.”

Fiscal 2026 First Quarter Summary

 

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Consolidated net sales of $943 million, an increase of 0.6% compared to the prior year;

 

•

Consolidated comparable sales were flat;

 

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Global e-commerce sales of $111 million, representing 11.7% of net sales;

 

•

GAAP gross margin expansion of 40 basis points to 51.2%;

 

•

Adjusted Gross Margin expansion of 50 basis points to 51.3%;

 

•

GAAP selling, general and administrative expenses of $407 million, an increase of $31 million compared to the prior year;

 

•

Adjusted Selling, General and Administrative Expenses of $404 million, an increase of $6 million compared to the prior year;

 

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GAAP operating earnings of $76 million and GAAP operating margin of 8.1%;

 

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Adjusted Operating Earnings of $80 million and Adjusted Operating Margin of 8.5%;

 

•

GAAP diluted net earnings per share of $0.45, a decrease of 22% compared to the prior year;

 

•

Adjusted Diluted Net Earnings Per Share of $0.48, an increase of 12% compared to the prior year;

•

Cash flow from operations of $93 million and Free Cash Flow of $57 million; and

 

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Completed $20 million in term loan repayment and $21 million in share repurchases.

Balance Sheet and Cash Flow

As of December 31, 2025, the Company had cash and cash equivalents of $157 million and no outstanding borrowings under its asset-based revolving line of credit. At fiscal year-end, inventory was $979 million, down 2.7% versus a year ago.

First quarter cash flow from operations was $93 million and Free Cash Flow totaled $57 million. During the first quarter, the Company utilized its cash flow to repay $20 million of term loan B debt and repurchase 1.4 million shares under its share repurchase program at an aggregate cost of $21 million. The Company ended the first quarter with a net debt leverage ratio of 1.5x.

Fiscal 2026 First Quarter Segment Results

 

		Sally Beauty												Beauty Systems Group
(In thousands, except percentages)		Q1 FY26				Q1 FY25				Growth/(Decline)				Q1 FY26				Q1 FY25				Growth/(Decline)
Net Sales		$	531,601			$	525,446				1.2	%		$	411,567			$	412,449				(0.2	)%
Comparable Sales Growth/(Decline)			0.1	%			1.7	%			(160	) bps			(0.2	)%			1.4	%			(160	) bps
Gross Margin			59.8	%			59.6	%			20	bps			40.2	%			39.7	%			50	bps
Operating Earnings		$	77,897			$	79,874				(2.5	)%		$	53,907			$	50,469				6.8	%
Operating Margin			14.7	%			15.2	%			(50	) bps			13.1	%			12.2	%			90	bps

Fiscal Year 2026 Guidance*

 

Second Quarter
Consolidated Net Sales			$895 million to $905 million (1)
Comparable Sales			Up 0.5% to 1.5%
Adjusted Operating Earnings			$68 million to $71 million
Adjusted Diluted EPS			$0.39 to $0.42

 

(1)	Assumes approximately 100 basis points of favorable impact from expected foreign currency rates

 

Full Year		Prior FY26 Guidance		Updated FY26 Guidance
Consolidated Net Sales		$3.71 billion to $3.77 billion (1)		No change
Comparable Sales		Flat to up 1%		No change
Adjusted Operating Earnings		$328 million to $342 million		No change
Adjusted Diluted EPS		$2.00 to $2.10 (2)		$2.02 to $2.10 (2)
Capital Expenditures		Approximately $100 million		No change
Free Cash Flow		Approximately $200 million		No change

 

(1)	Assumes approximately 50 basis points of favorable impact from expected foreign currency rates

(2)	Assumes 50% of Free Cash Flow goes towards share repurchases (Free Cash Flow defined as GAAP cash flows from operating activities less payments for capital expenditures)

*

The Company does not provide a reconciliation for forward-looking non-GAAP financial measures where it is unable to provide a meaningful or accurate calculation or estimation of its reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the occurrence and the financial impact of various items that have not yet occurred, are out of the Company’s control or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures.

Conference Call and Where You Can Find Additional Information

The Company will hold a conference call and live webcast at approximately 7:30 a.m. Central Time today, February 9, 2026, to discuss its financial results and its business. During the conference call, the Company may discuss and answer one or more questions concerning business and financial matters and trends affecting the Company. The Company’s responses to these questions, as well as other matters discussed during the conference call, may contain or constitute material information that has not been previously disclosed.

Participants can listen to the live webcast of the conference call by accessing the investor relations section of the Company’s website at sallybeautyholdings.com/investor-relations/events-and-presentations/events-calendar, or through our third-party host at SBH Q1 Earnings Webcast. To join the conference call, participants can pre-register to receive a dial-in number and unique PIN using the following link: Pre-register SBH Q1 Earnings Call. Pre-registration can be completed at any time up to and following the call start time.

A replay will be available on the Company’s investor relations website after 10:00 a.m. Central Time on February 9, 2026, through February 9, 2027.

About Sally Beauty Holdings, Inc.

Sally Beauty Holdings, Inc. (NYSE: SBH), as the leader in professional hair color, sells and distributes professional beauty supplies globally through its Sally Beauty and Beauty Systems Group segments. Sally Beauty stores offer up to 7,000 products for hair color, hair care, nails, and skin care through proprietary brands such as Ion^®, Bondbar^®, Strawberry Leopard^®, Generic Value Products^®, Inspired by Nature^® and Silk Elements^® as well as professional lines such as Wella^®, Clairol^®, OPI^®, L’Oreal^®, Wahl^® and Babyliss Pro^®. Beauty Systems Group stores, branded as Cosmo Prof^® or Armstrong McCall^® stores, along with its outside sales consultants, sell up to 8,000 professionally branded products including Paul Mitchell^®, Wella^®, Matrix^®, Schwarzkopf^®, Kenra^®, Goldwell^®, Joico^®, Amika^® and Moroccanoil^®, intended for use in salons and for resale by salons to retail consumers. For more information about Sally Beauty Holdings, Inc., please visit sallybeautyholdings.com/investor-relations.

Cautionary Notice Regarding Forward-Looking Statements

Statements in this news release and the schedules hereto that are not purely historical facts or that depend upon future events may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of words such as “believes,” “projects,” “expects,” “can,” “may,” “estimates,” “should,” “plans,” “targets,” “intends,” “could,” “will,” “would,” “anticipates,” “potential,” “confident,” “optimistic,” or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations and future plans. Forward-looking statements can also be identified by the fact that these statements do not relate strictly to historical or current matters.

Readers are cautioned not to place undue reliance on forward-looking statements as such statements speak only as of the date they were made. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including the “Risk Factors” described under Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, and other filings with the U.S. Securities and Exchange Commission. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein. We assume no obligation to publicly update or revise any forward-looking statements.

Use of Non-GAAP Financial Measures

This news release and the schedules hereto include the following financial measures that have not been calculated in accordance with accounting principles generally accepted in the United States, (“GAAP”), and are therefore referred to as non-GAAP financial measures: (1) Adjusted Gross Margin; (2) Adjusted Selling, General and Administrative Expenses; (3) Adjusted EBITDA and EBITDA Margin; (4) Adjusted Operating Earnings and Operating Margin; (5) Adjusted Net Earnings; (6) Adjusted Diluted Net Earnings Per Share; and (7) Free Cash Flow. We have provided definitions below for these non-GAAP financial measures and have provided tables in the schedules hereto to reconcile these non-GAAP financial measures to the comparable GAAP financial measures.

Adjusted Gross Margin – We define the measure Adjusted Gross Margin as GAAP gross margin excluding the inventory write-off from the Company’s European operations in connection with the fuel for growth initiative for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures.

Adjusted Selling, General and Administrative Expenses – We define the measure Adjusted Selling, General and Administrative Expenses as GAAP selling, general and administrative expenses excluding the costs related to the Company’s fuel for growth initiative and expenses related to the Company’s corporate headquarters relocation for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures.

Adjusted EBITDA and EBITDA Margin – We define the measure Adjusted EBITDA as GAAP net earnings before depreciation and amortization, interest expense, income taxes, share-based compensation, costs related to the Company’s fuel for growth initiative and expenses related to the Company’s corporate headquarters relocation for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures. Adjusted EBITDA Margin is Adjusted EBITDA as a percentage of net sales.

Adjusted Operating Earnings and Operating Margin – Adjusted operating earnings are GAAP operating earnings that exclude the costs related to the Company’s fuel for growth initiative and expenses related to the Company’s corporate headquarters relocation for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures. Adjusted Operating Margin is Adjusted Operating Earnings as a percentage of net sales.

Adjusted Net Earnings – Adjusted net earnings is GAAP net earnings that exclude the tax-effected costs related to the Company’s fuel for growth initiative and tax-effected expenses related to the Company’s corporate headquarters relocation for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures.

Adjusted Diluted Net Earnings Per Share – Adjusted diluted net earnings per share is GAAP diluted earnings per share that exclude the tax-effected costs related to the Company’s fuel for growth initiative and tax-effected expenses related to the Company’s corporate headquarters relocation for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures.

Free Cash Flow – We define the measure Free Cash Flow as GAAP net cash provided by operating activities less payments for capital expenditures (net). We believe Free Cash Flow is an important liquidity measure that provides useful information to investors about the amount of cash generated from operations after taking into account payments for capital expenditures (net).

We believe that these non-GAAP financial measures provide valuable information regarding our earnings and business trends by excluding specific items that we believe are not indicative of the ongoing operating results of our businesses, providing a useful way for investors to make a comparison of our performance over time and against other companies in our industry.

We have provided these non-GAAP financial measures as supplemental information to our GAAP financial measures and believe these non-GAAP measures provide investors with additional meaningful financial information regarding our operating performance and cash flows. Our management and Board of Directors also use these non-GAAP measures as supplemental measures to evaluate our businesses and the performance of management, including the determination of performance-based compensation, to make operating and strategic decisions, and to allocate financial resources. We believe that these non-GAAP measures also provide meaningful information for investors and securities analysts to evaluate our historical and prospective financial performance. These non-GAAP measures should not be considered a substitute for or superior to GAAP results. Furthermore, the non-GAAP measures presented by us may not be comparable to similarly titled measures of other companies.

Supplemental Schedules

Segment Information		1
Non-GAAP Financial Measures Reconciliations		2
Non-GAAP Financial Measures Reconciliations; Adjusted EBITDA and Free Cash Flow		3
Store Count and Comparable Sales		4

SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(In thousands, except per share data)

(Unaudited)

 

		Three Months Ended December 31,
		2025				2024				Percentage Change
Net sales		$	943,168			$	937,895				0.6	%
Cost of products sold			459,909				461,055				(0.2	)%
Gross profit			483,259				476,840				1.3	%
Selling, general and administrative expenses			407,324				376,520				8.2	%
Operating earnings			75,935				100,320				(24.3	)%
Interest expense			14,620				17,442				(16.2	)%
Earnings before provision for income taxes			61,315				82,878				(26.0	)%
Provision for income taxes			15,758				21,865				(27.9	)%
Net earnings		$	45,557			$	61,013				(25.3	)%
Earnings per share:
Basic		$	0.47			$	0.60				(21.7	)%
Diluted		$	0.45			$	0.58				(22.4	)%
Weighted average shares:
Basic			97,804				102,021
Diluted			100,765				104,974

 

										Basis Point Change
Comparison as a percentage of net sales
Consolidated gross margin			51.2	%			50.8	%			40
Selling, general and administrative expenses			43.2	%			40.1	%			310
Consolidated operating margin			8.1	%			10.7	%			(260	)
Effective tax rate			25.7	%			26.4	%			(70	)

SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

		December 31				September 30
		2025				2025
Cash and cash equivalents		$	157,185			$	149,162
Trade and other accounts receivable			104,267				116,562
Inventory			978,789				987,575
Other current assets			45,444				48,154
Total current assets			1,285,685				1,301,453
Property and equipment, net			280,350				284,284
Operating lease assets			642,276				646,698
Goodwill and other intangible assets			593,929				593,692
Other assets			48,538				44,969
Total assets		$	2,850,778			$	2,871,096
Current maturities of long-term debt		$	4,000			$	4,000
Accounts payable			208,481				224,507
Accrued liabilities			158,576				184,641
Current operating lease liabilities			157,102				158,566
Income taxes payable			14,011				4,260
Total current liabilities			542,170				575,974
Long-term debt, including capital leases			842,531				861,974
Long-term operating lease liabilities			537,594				538,426
Other liabilities			21,985				21,026
Deferred income tax liabilities, net			82,933				79,489
Total liabilities			2,027,213				2,076,889
Total stockholders’ equity			823,565				794,207
Total liabilities and stockholders’ equity		$	2,850,778			$	2,871,096

Supplemental Schedule 1

 

SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Segment Information

(In thousands)

(Unaudited)

 

		Three Months Ended December 31,
		2025				2024				Percentage Change
Net sales:
Sally Beauty Supply (“Sally”)		$	531,601			$	525,446				1.2	%
Beauty Systems Group (“BSG”)			411,567				412,449				(0.2	)%
Total net sales		$	943,168			$	937,895				0.6	%
Operating earnings:
Sally		$	77,897			$	79,874				(2.5	)%
BSG			53,907				50,469				6.8	%
Segment operating earnings			131,804				130,343				1.1	%
Unallocated expenses (1)			55,869				30,023				86.1	%
Interest expense			14,620				17,442				(16.2	)%
Earnings before provision for income taxes		$	61,315			$	82,878				(26.0	)%

 

		2025				2024				Basis Point Change
Segment gross margin:
Sally			59.8	%			59.6	%			20
BSG			40.2	%			39.7	%			50
Segment operating margin:
Sally			14.7	%			15.2	%			(50	)
BSG			13.1	%			12.2	%			90
Consolidated operating margin			8.1	%			10.7	%			(260	)

 

(1)

Unallocated expenses, including share-based compensation expense, consist of corporate and shared costs and are included in selling, general and administrative expenses. Additionally, unallocated expenses include costs associated with our Fuel for Growth initiative and a gain from the sale of our corporate headquarters during the three months ended December 31, 2024.

Supplemental Schedule 2

 

SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Non-GAAP Financial Measures Reconciliations

(In thousands, except per share data)

(Unaudited)

 

		Three Months Ended December 31, 2025
		As Reported (GAAP)				Fuel for Growth and Other (1)				Corporate HQ Relocation (2)				As Adjusted (Non-GAAP)
Cost of products sold		$	459,909			$	(907	)		$	—			$	459,002
Consolidated gross margin			51.2	%											51.3	%
Selling, general and administrative expenses			407,324				(1,180	)			(1,833	)			404,311
SG&A expenses, as a percentage of sales			43.2	%											42.9	%
Operating earnings			75,935				2,087				1,833				79,855
Operating margin			8.1	%											8.5	%
Interest expense			14,620				—				—				14,620
Earnings before provision for income taxes			61,315				2,087				1,833				65,235
Provision for income taxes (3)			15,758				529				471				16,758
Net earnings		$	45,557			$	1,558			$	1,362			$	48,477
Earnings per share: (4)
Basic		$	0.47			$	0.02			$	0.01			$	0.50
Diluted		$	0.45			$	0.02			$	0.01			$	0.48
		Three Months Ended December 31, 2024
		As Reported (GAAP)				Fuel for Growth and Other (1)				Corporate HQ Relocation (2)				As Adjusted (Non-GAAP)
Cost of products sold		$	461,055			$	—			$	—			$	461,055
Consolidated gross margin			50.8	%											50.8	%
Selling, general and administrative expenses			376,520				(4,869	)			26,640				398,291
SG&A expenses, as a percentage of sales			40.1	%											42.5	%
Operating earnings			100,320				4,869				(26,640	)			78,549
Operating margin			10.7	%											8.4	%
Interest expense			17,442				—				—				17,442
Earnings before provision for income taxes			82,878				4,869				(26,640	)			61,107
Provision for income taxes (3)			21,865				1,247				(6,851	)			16,261
Net earnings		$	61,013			$	3,622			$	(19,789	)		$	44,846
Earnings per share: (4)
Basic		$	0.60			$	0.04			$	(0.19	)		$	0.44
Diluted		$	0.58			$	0.03			$	(0.19	)		$	0.43

 

(1)	Fuel for Growth and other represents expenses primarily related expenses associated with our Fuel for Growth program and other non-recurring items.

(2)

For the three months ended December 31, 2025, corporate HQ relocation primarily represents duplicate rent expense on the new office prior to our relocation from our Denton corporate headquarters and expenses in connection with the relocation of our headquarters. For the three months ended December 31, 2024, corporate HQ relocation primarily represents the gain on the sale of our Denton corporate headquarters and certain assets within.

(3)	The provision for income taxes was calculated using the applicable tax rates for each country, while excluding the tax benefits for countries where the tax benefit is not currently deemed probable of being realized.

(4)	The sum of the earnings per share may not equal the full amount due to rounding of the calculated amounts.

Supplemental Schedule 3

SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Non-GAAP Financial Measures Reconciliations, Continued

(In thousands)

(Unaudited)

 

		Three Months Ended December 31,
Adjusted EBITDA:		2025				2024				Percentage Change
Net earnings		$	45,557			$	61,013				(25.3	)%
Add:
Depreciation and amortization			23,632				25,565				(7.6	)%
Interest expense			14,620				17,442				(16.2	)%
Provision for income taxes			15,758				21,865				(27.9	)%
EBITDA (non-GAAP)			99,567				125,885				(20.9	)%
Share-based compensation			7,555				6,053				24.8	%
Fuel for Growth and Other			2,087				4,869				(57.1	)%
Corporate HQ Relocation			1,833				(26,640	)			106.9	%
Adjusted EBITDA (non-GAAP)		$	111,042			$	110,167				0.8	%
										Basis Point Change
Adjusted EBITDA as a percentage of net sales
Adjusted EBITDA margin			11.8	%			11.7	%			10
Free Cash Flow:		2025				2024				Percentage Change
Cash flows from operating activities		$	93,239			$	33,459				178.7	%
Less: Payments for capital expenditures			35,784				20,078				78.2	%
Plus: Proceeds from sales of property and equipment (1)			—				43,574				—
Free cash flow (non-GAAP)		$	57,455			$	56,955				0.9	%

 

(1)	Represents the proceeds from the sale of our corporate headquarters.

Supplemental Schedule 4

 

SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Store Count and Comparable Sales

(Unaudited)

 

		As of December 31,
		2025				2024				Change
Number of stores:
Sally			3,090				3,123				(33	)
BSG:
Company-operated stores			1,194				1,199				(5	)
Franchise stores			131				131				—
Total BSG			1,325				1,330				(5	)
Total consolidated			4,415				4,453				(38	)
Number of BSG salon business consultants (1)			590				639				(49	)

 

(1)	BSG salon business consultants (SBC) include 182 and 191 sales consultants employed by our franchisees at December 31, 2025 and 2024, respectively.

 

		Three Months Ended December 31,
		2025				2024				Basis Point Change
Comparable sales growth (decline):
Sally			0.1	%			1.7	%			(160	)
BSG			(0.2	)%			1.4	%			(160	)
Consolidated			0.0	%			1.6	%			(160	)

Our comparable sales include sales from stores that have been operating for 14 months or longer as of the last day of a month and e-commerce revenue. Additionally, our comparable sales include sales to franchisees and full-service sales. Our comparable sales amounts exclude the effect of changes in foreign exchange rates and sales from stores relocated until 14 months after the relocation. Revenue from acquired stores is excluded from our comparable sales calculation until 14 months after the acquisition.