v3.26.1
REVENUE RECOGNITION
 12 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
REVENUE RECOGNITION REVENUE RECOGNITION:
Revenue Recognition and Deferred Revenue:
Revenue recognized over time
Royalty and advertising fund revenues represent sales-based royalties that are recognized in the period in which the sales occur. Generally, royalty and advertising fund revenues are billed and collected monthly in arrears. Advertising fund revenues and expenditures, which must be spent on marketing and related activities per the franchise agreements, are recorded on a gross basis within the Consolidated Statements of Operations. The treatment increases both the gross amount of reported revenue and expense and generally has no impact on operating income and net income. Franchise fees are billed and received upon the signing of the franchise agreement. Recognition of these fees is deferred until the salon opens and typically recognized over 10 years, but is evaluated for immediate revenue recognition when a salon is acquired by Regis or closed. Franchise rental income is a result of the Company signing leases on behalf of franchisees and entering into sublease arrangements with the franchisees. The Company recognizes franchise rental income and expense when it is due to the landlord.
Revenue recognized at point of sale
Company-owned salon revenues are recognized at the time when the services are provided, or the guest receives and pays for the merchandise. Revenues from purchases made with gift cards are also recorded when the guest takes possession of the merchandise or services are provided. Gift cards issued by the Company are recorded as a liability (deferred revenue) upon sale and recognized as revenue upon redemption by the guest. Gift card breakage, the amount of gift cards which will not be redeemed, is recognized based on gift card balances with no activity over a 24-month basis. Product sales to franchisees are recorded at the time product is delivered to the franchisee.
Information about receivables, broker fees, and deferred revenue subject to the revenue recognition guidance is as follows:
June 30,
2026		June 30,
2025		June 30,
2024		Balance Sheet Classification
(Dollars in thousands)
Receivables from contracts with customers, net$7,622 $7,378 $6,887 Receivable, net
Broker fees4,115 5,997 9,369 Other assets
Deferred revenue:
     Current
Gift card liability$324 $476 $366 Accrued expenses
Deferred franchise fees open salons3,285 3,832 4,738 Accrued expenses
Total current deferred revenue$3,609 $4,308 $5,104 
     Non-current
Deferred franchise fees unopened salons$688 $1,475 $1,783 Other non-current liabilities
Deferred franchise fees open salons6,213 9,394 14,972 Other non-current liabilities
Total non-current deferred revenue$6,901 $10,869 $16,755 
Receivables relate primarily to payments due for royalties, advertising fees, rent, and sales of salon services and product paid by credit card. The receivables balance is presented net of an allowance for expected credit losses (i.e., doubtful accounts), related to receivables from franchisees. Management estimates the allowance based on the age of the receivable and creditworthiness of the franchisee. The following table is a rollforward of the allowance for credit losses for the periods indicated:
Fiscal Years
20262025
(Dollars in thousands)
Balance at beginning of period$5,015 $6,227 
Provision for doubtful accounts (1)892 3,040 
Provision for franchisee rent (2)713 790 
Recoveries(1,361)(2,266)
Other(61)78 
Write-offs(1,438)(2,854)
Balance at end of period$3,760 $5,015 
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(1)The provision for doubtful accounts is recognized as general and administrative expense in the Consolidated Statements of Operations.
(2)The provision for franchisee rent is recognized as rent in the Consolidated Statements of Operations.

Broker fees are the costs associated with using external brokers to identify new franchisees. These fees are paid upon the signing of the franchise agreement, capitalized, and expensed over the term of the franchise agreement as general and administrative expense in the Consolidated Statements of Operations. The following table is a rollforward of the broker fee balance for the periods indicated:
Fiscal Years
20262025
(Dollars in thousands)
Balance at beginning of period$5,997 $9,369 
Amortization(1,882)(2,313)
Write-offs— (1,059)
Balance at end of period$4,115 $5,997 
Deferred revenue includes the gift card liability and deferred franchise fees for unopened salons and open salons. During the fiscal year ended June 30, 2026, the Company issued gift cards totaling $0.2 million that remained unredeemed as of period end, and recognized $0.2 million of revenue from the gift card liability outstanding at the beginning of the fiscal year. Deferred franchise fees related to open salons are generally recognized on a straight-line basis over the term of the franchise agreement but are evaluated for immediate revenue recognition when a salon is acquired by Regis or closed. Franchise fee revenue for fiscal years 2026, 2025, and 2024 was $4.0 million, $6.8 million, and $6.5 million, respectively. Estimated revenue expected to be recognized in the future related to deferred franchise fees for open salons as of June 30, 2026, is as follows (Dollars in thousands):
2027$3,192 
20282,529 
20291,814 
2030822 
2031262 
Thereafter879 
Total$9,498