Exhibit 99.1

 

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

Sally Beauty Holdings Reports Second Quarter Fiscal 2026 Results

 

•

Q2 Consolidated Net Sales Increased 2.3%; Consolidated Comparable Sales Increased 1.3%

 

•

Q2 GAAP Diluted EPS Increased 13%; Adjusted Diluted EPS Increased 5%

 

•

Q2 Cash Flow from Operations of $73 Million Deployed to Invest for Growth, Strengthen Balance Sheet and Return Value to Shareholders

 

•

Fiscal 2026 Guidance: Company Tightens Net Sales Range and Reiterates All Other Metrics

PLANO, Texas, May 11, 2026 – Sally Beauty Holdings, Inc. (NYSE: SBH) (the “Company”), the leader in professional hair color, today announced financial results for its second quarter ended March 31, 2026. The Company will hold a conference call today at 7:30 a.m. Central Time to discuss these results and its business.

“Our second quarter results reflect solid execution and the resilience of our operating model amid a dynamic macroeconomic environment,” said Denise Paulonis, president and chief executive officer. “We delivered low-single digit sales growth, gross margin expansion, and strong cash flow from operations, driven by the compounding benefits of our growth initiatives. As we enter the second half of fiscal 2026, we remain confident in our full-year outlook and believe the Company is positioned to deliver consistent, profitable growth and shareholder value over the long-term.”

Fiscal 2026 Second Quarter Summary

 

•

Consolidated net sales of $903 million, an increase of 2.3% compared to the prior year;

 

•

Consolidated comparable sales growth of 1.3%;

 

•

Global e-commerce sales increased 13% to $108 million, representing 12% of net sales;

 

•

GAAP gross margin expansion of 70 basis points to 52.7%;

 

•

Adjusted Gross Margin expansion of 80 basis points to 52.8%;

 

•

GAAP selling, general and administrative expenses of $404 million, an increase of $14 million compared to the prior year;

 

•

Adjusted Selling, General and Administrative Expenses of $404 million, an increase of $20 million compared to the prior year;

 

•

GAAP operating earnings of $72 million and GAAP operating margin of 8.0%;

 

•

Adjusted Operating Earnings of $73 million and Adjusted Operating Margin of 8.1%;

 

•

GAAP diluted net earnings per share of $0.43, an increase of 13% compared to the prior year;

•

Adjusted Diluted Net Earnings Per Share of $0.44, an increase of 5% compared to the prior year;

 

•

Cash flow from operations of $73 million and Free Cash Flow of $44 million; and

 

•

Completed $20 million in term loan repayment and $25 million in share repurchases.

Balance Sheet and Cash Flow

As of March 31, 2026, 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 $987 million, down 2% versus a year ago.

Second quarter cash flow from operations was $73 million and Free Cash Flow totaled $44 million. During the quarter, the Company utilized its cash flow to repay $20 million of term loan B debt and repurchase 1.7 million shares under its share repurchase program at an aggregate cost of $25 million. The Company ended the second quarter with a net debt leverage ratio of 1.5x.

Fiscal 2026 Second Quarter Segment Results

 

		Sally Beauty												Beauty Systems Group
(In thousands, except percentages)		Q2 FY26				Q2 FY25				Growth/(Decline)				Q2 FY26				Q2 FY25				Growth/(Decline)
Net Sales		$	521,236			$	500,575				4.1	%		$	382,146			$	382,571				(0.1	)%
Comparable Sales Growth/(Decline)			2.5	%			(0.3	)%			280	bps			(0.3)	%			(2.7	)%			240	bps
Gross Margin			61.3	%			61.2	%			10	bps			40.9	%			39.8	%			110	bps
Operating Earnings		$	78,149			$	77,305				1.1	%		$	47,368			$	43,934				7.8	%
Operating Margin			15.0	%			15.4	%			(40	) bps			12.4	%			11.5	%			90	bps

Fiscal Year 2026 Guidance* 

 

Third Quarter
Consolidated Net Sales		$932 million to $942 million (1)
Comparable Sales		Approximately Flat
Adjusted Operating Earnings		$83 million to $89 million
Adjusted Diluted EPS		$0.52 to $0.56

 

(1)	Assumes approximately 40 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		$3.725 billion to $3.750 billion (1)
Comparable Sales		Flat to up 1%		No change
Adjusted Operating Earnings		$328 million to $342 million		No change
Adjusted Diluted EPS		$2.02 to $2.10 (2)		No change
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, May 11, 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 Q2 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 Q2 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 May 11, 2026, through May 11, 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 costs related to the Company’s 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, expenses related to the Company’s corporate headquarters relocation, and asset impairment charges 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, expenses related to the Company’s corporate headquarters relocation, and asset impairment charges 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, expenses related to the Company’s corporate headquarters relocation, and asset impairment charges 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, tax-effected expenses related to the Company’s corporate headquarters relocation, and tax-effected asset impairment charges 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, tax-effected expenses related to the Company’s corporate headquarters relocation, and tax-effected asset impairment charges 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			2-3
Non-GAAP Financial Measures Reconciliations; Adjusted EBITDA and Free Cash Flow			4
Store Count and Comparable Sales			5

SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Earnings

(In thousands, except per share data)

(Unaudited)

 

		Three Months Ended March 31,												Six Months Ended March 31,
		2026				2025				Percentage Change				2026				2025				Percentage Change
Net sales		$	903,382			$	883,146				2.3	%		$	1,846,550			$	1,821,041				1.4	%
Cost of products sold			427,610				424,329				0.8	%			887,519				885,384				0.2	%
Gross profit			475,772				458,817				3.7	%			959,031				935,657				2.5	%
Selling, general and administrative expenses			403,841				389,444				3.7	%			811,165				765,964				5.9	%
Operating earnings			71,931				69,373				3.7	%			147,866				169,693				(12.9	)%
Interest expense			14,165				16,289				(13.0	)%			28,785				33,731				(14.7	)%
Earnings before provision for income taxes			57,766				53,084				8.8	%			119,081				135,962				(12.4	)%
Provision for income taxes			15,071				13,874				8.6	%			30,829				35,739				(13.7	)%
Net earnings		$	42,695			$	39,210				8.9	%		$	88,252			$	100,223				(11.9	)%
Earnings per share:
Basic		$	0.44			$	0.39				12.8	%		$	0.91			$	0.98				(7.1	)%
Diluted		$	0.43			$	0.38				13.2	%		$	0.88			$	0.96				(8.3	)%
Weighted average shares:
Basic			96,727				101,614								97,271				101,820
Diluted			99,721				104,435								100,265				104,682
										Basis Point Change												Basis Point Change
Comparison as a percentage of net sales
Consolidated gross margin			52.7	%			52.0	%			70				51.9	%			51.4	%			50
Selling, general and administrative expenses			44.7	%			44.1	%			60				43.9	%			42.1	%			180
Consolidated operating margin			8.0	%			7.9	%			10				8.0	%			9.3	%			(130	)
Effective tax rate			26.1	%			26.1	%			—				25.9	%			26.3	%			(40	)

SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

		March 31				September 30
		2026				2025
Cash and cash equivalents		$	157,401			$	149,162
Trade and other accounts receivable			101,632				116,562
Inventory			986,787				987,575
Other current assets			46,940				48,154
Total current assets			1,292,760				1,301,453
Property and equipment, net			285,335				284,284
Operating lease assets			635,406				646,698
Goodwill and other intangible assets			590,436				593,692
Other assets			49,353				44,969
Total assets		$	2,853,290			$	2,871,096
Current maturities of long-term debt		$	4,000			$	4,000
Accounts payable			222,635				224,507
Accrued liabilities			169,800				184,641
Current operating lease liabilities			157,050				158,566
Income taxes payable			—				4,260
Total current liabilities			553,485				575,974
Long-term debt, including capital leases			823,051				861,974
Long-term operating lease liabilities			531,987				538,426
Other liabilities			21,080				21,026
Deferred income tax liabilities, net			85,815				79,489
Total liabilities			2,015,418				2,076,889
Total stockholders’ equity			837,872				794,207
Total liabilities and stockholders’ equity		$	2,853,290			$	2,871,096

Supplemental Schedule 1

SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Segment Information

(In thousands)

(Unaudited)

 

		Three Months Ended March 31,												Six Months Ended March 31,
		2026				2025				Percentage Change				2026				2025				Percentage Change
Net sales:
Sally Beauty Supply (“Sally”)		$	521,236			$	500,575				4.1	%		$	1,052,837			$	1,026,021				2.6	%
Beauty Systems Group (“BSG”)			382,146				382,571				(0.1	)%			793,713				795,020				(0.2	)%
Total net sales		$	903,382			$	883,146				2.3	%		$	1,846,550			$	1,821,041				1.4	%
Operating earnings:
Sally		$	78,149			$	77,305				1.1	%		$	156,046			$	157,179				(0.7	)%
BSG			47,368				43,934				7.8	%			101,275				94,403				7.3	%
Segment operating earnings			125,517				121,239				3.5	%			257,321				251,582				2.3	%
Unallocated expenses (1)			53,586				51,866				3.3	%			109,455				81,889				33.7	%
Interest expense			14,165				16,289				(13.0	)%			28,785				33,731				(14.7	)%
Earnings before provision for income taxes		$	57,766			$	53,084				8.8	%		$	119,081			$	135,962				(12.4	)%
		2026				2025				Basis Point Change				2026				2025				Basis Point Change
Segment gross margin:
Sally			61.3	%			61.2	%			10				60.5	%			60.4	%			10
BSG			40.9	%			39.8	%			110				40.5	%			39.7	%			80
Segment operating margin:
Sally			15.0	%			15.4	%			(40	)			14.8	%			15.3	%			(50	)
BSG			12.4	%			11.5	%			90				12.8	%			11.9	%			90
Consolidated operating margin			8.0	%			7.9	%			10				8.0	%			9.3	%			(130	)

 

(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 six months ended March 31, 2026.

Supplemental Schedule 2

SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Non-GAAP Financial Measures Reconciliations

(In thousands, except per share data)

(Unaudited)

 

		Three Months Ended March 31, 2026
		As Reported (GAAP)				Fuel for Growth (1)				Corporate HQ Relocation (2)				As Adjusted (Non-GAAP)
Cost of products sold		$	427,610			$	(811	)		$	—			$	426,799
Consolidated gross margin			52.7	%											52.8	%
Selling, general and administrative expenses			403,841				(281	)			(19	)			403,541
SG&A expenses, as a percentage of sales			44.7	%											44.7	%
Operating earnings			71,931				1,092				19				73,042
Operating margin			8.0	%											8.1	%
Earnings before provision for income taxes			57,766				1,092				19				58,877
Provision for income taxes (4)			15,071				277				5				15,353
Net earnings		$	42,695			$	815			$	14			$	43,524
Earnings per share: (5)
Basic		$	0.44			$	0.01			$	0.00			$	0.45
Diluted		$	0.43			$	0.01			$	0.00			$	0.44

 

		Three Months Ended March 31, 2025
		As Reported (GAAP)				Fuel for Growth and Other (1)				Corporate HQ Relocation (2)				Asset Impairment (3)				As Adjusted (Non-GAAP)
Cost of products sold		$	424,329			$	—			$	—			$	—			$	424,329
Consolidated gross margin			52.0	%															52.0	%
Selling, general and administrative expenses			389,444				(3,807	)			(207	)			(1,779	)			383,651
SG&A expenses, as a percentage of sales			44.1	%															43.4	%
Operating earnings			69,373				3,807				207				1,779				75,166
Operating margin			7.9	%															8.5	%
Earnings before provision for income taxes			53,084				3,807				207				1,779				58,877
Provision for income taxes (4)			13,874				976				53				445				15,348
Net earnings		$	39,210			$	2,831			$	154			$	1,334			$	43,529
Earnings per share: (5)
Basic		$	0.39			$	0.03			$	0.00			$	0.01			$	0.43
Diluted		$	0.38			$	0.03			$	0.00			$	0.01			$	0.42

 

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

(2)	For the three months ended March 31, 2026 and 2025, corporate HQ relocation primarily represents expenses in connection with the relocation of our headquarters.

(3)	Impairment related to the write-off of certain tradenames used in Europe.

(4)	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.

(5)	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, except per share data)

(Unaudited)

 

		Six Months Ended March 31, 2026
		As Reported (GAAP)				Fuel for Growth (1)				Corporate HQ Relocation (2)				As Adjusted (Non-GAAP)
Cost of products sold		$	887,519			$	(1,718	)		$	—			$	885,801
Consolidated gross margin			51.9	%											52.0	%
Selling, general and administrative expenses			811,165				(1,461	)			(1,852	)			807,852
SG&A expenses, as a percentage of sales			43.9	%											43.7	%
Operating earnings			147,866				3,179				1,852				152,897
Operating margin			8.0	%											8.3	%
Earnings before provision for income taxes			119,081				3,179				1,852				124,112
Provision for income taxes (4)			30,829				806				476				32,111
Net earnings		$	88,252			$	2,373			$	1,376			$	92,001
Earnings per share: (5)
Basic		$	0.91			$	0.02			$	0.01			$	0.95
Diluted		$	0.88			$	0.02			$	0.01			$	0.92

 

		Six Months Ended March 31, 2025
		As Reported (GAAP)				Fuel for Growth and Other (1)				Corporate HQ Relocation (2)				Asset Impairment (3)				As Adjusted (Non-GAAP)
Cost of products sold		$	885,384			$	—			$	—			$	—			$	885,384
Consolidated gross margin			51.4	%															51.4	%
Selling, general and administrative expenses			765,964				(8,676	)			26,433				(1,779	)			781,942
SG&A expenses, as a percentage of sales			42.1	%															42.9	%
Operating earnings			169,693				8,676				(26,433	)			1,779				153,715
Operating margin			9.3	%															8.4	%
Earnings before provision for income taxes			135,962				8,676				(26,433	)			1,779				119,984
Provision for income taxes (4)			35,739				2,222				(6,797	)			444				31,608
Net earnings		$	100,223			$	6,454			$	(19,636	)		$	1,335			$	88,376
Earnings per share: (5)
Basic		$	0.98			$	0.06			$	(0.19)			$	0.01			$	0.87
Diluted		$	0.96			$	0.06			$	(0.19)			$	0.01			$	0.84

 

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

(2)

For the six months ended March 31, 2026, corporate HQ relocation primarily represents duplicate rent expense on the new office prior to our relocation from our Denton corporate headquarters. For the six months ended March 31, 2025, corporate HQ relocation primarily represents a $26.6 million gain from the sale of our Denton headquarters and expenses in connection with the relocation of our headquarters.

(3)	Impairment related to the write-off of a certain tradename used in Europe.

(4)	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.

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

Supplemental Schedule 4

SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Non-GAAP Financial Measures Reconciliations, Continued

(In thousands)

(Unaudited)

 

		Three Months Ended March 31,												Six Months Ended March 31,
		2026				2025				Percentage Change				2026				2025				Percentage Change
Adjusted EBITDA:
Net earnings		$	42,695			$	39,210				8.9	%		$	88,252			$	100,223				(11.9	)%
Add:
Depreciation and amortization			25,280				25,359				(0.3	)%			48,912				50,924				(4.0	)%
Interest expense			14,165				16,289				(13.0	)%			28,785				33,731				(14.7	)%
Provision for income taxes			15,071				13,874				8.6	%			30,829				35,739				(13.7	)%
EBITDA (non-GAAP)			97,211				94,732				2.6	%			196,778				220,617				(10.8	)%
Share-based compensation			5,969				4,238				40.8	%			13,524				10,291				31.4	%
Fuel for Growth and Other			1,092				3,807				(71.3	)%			3,179				8,676				(63.4	)%
Corporate HQ Relocation			19				207				(90.8	)%			1,852				(26,433	)			107.0	%
Asset Impairment			—				1,779				(100.0	)%			—				1,779				(100.0	)%
Adjusted EBITDA (non-GAAP)		$	104,291			$	104,763				(0.5	)%		$	215,333			$	214,930				0.2	%
										Basis Point Change												Basis Point Change
Adjusted EBITDA as a percentage of net sales
Adjusted EBITDA margin			11.5	%			11.9	%			(40	)			11.7	%			11.8	%			(10	)
Free Cash Flow:		2026				2025				Percentage Change				2026				2025				Percentage Change
Cash flows from operating activities		$	73,280			$	51,062				43.5	%		$	166,519			$	84,521				97.0	%
Less: Payments for capital expenditures			29,162				18,893				54.4	%			64,946				38,971				66.7	%
Plus: Proceeds from sales of property and equipment (1)			—				—				—				—				43,574				(100.0	)%
Free cash flow (non-GAAP)		$	44,118			$	32,169				37.1	%		$	101,573			$	89,124				14.0	%

 

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

Supplemental Schedule 5

SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES

Store Count and Comparable Sales

(Unaudited)

 

		As of March 31,
		2026				2025				Change
Number of stores:
Sally			3,079				3,117				(38	)
BSG:
Company-operated stores			1,189				1,198				(9	)
Franchise stores			131				131				—
Total BSG			1,320				1,329				(9	)
Total consolidated			4,399				4,446				(47	)
Number of BSG salon business consultants (1)			560				632				(72	)

 

(1)	BSG salon business consultants (SBC) include 191 sales consultants employed by our franchisees at March 31, 2026 and 2025.

 

		Three Months Ended March 31,												Six Months Ended March 31,
		2026				2025				Basis Point Change				2026				2025				Basis Point Change
Comparable sales growth (decline):
Sally			2.5	%			(0.3	)%			280				1.3	%			0.8	%			50
BSG			(0.3	)%			(2.7	)%			240				(0.2	)%			(0.6	)%			40
Consolidated			1.3	%			(1.3	)%			260				0.6	%			0.2	%			40

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.