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SEGMENT INFORMATION (Tables) | 12 Months Ended
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Jun. 30, 2025
Segment Reporting [Abstract] |
Schedule of Financial Information of Reportable Operating Segments | 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's (CODM) primary measures of segment performance are revenue and segment adjusted EBITDA. The Company’s Chief Executive Officer is the CODM. Revenue and segment adjusted EBITDA are regularly reviewed by the CODM to make decisions about resources to be allocated to the segments, assess current performance, and forecast future performance. The Company's CODM does not evaluate reportable segments using assets and capital expenditure information. Segment adjusted EBITDA is defined as income (loss) from continuing operations before interest, income taxes, depreciation, amortization, and impairment. Beginning in fiscal year 2025, management determined that stock-based compensation expenses will be excluded from adjusted EBITDA. This change has been retrospectively applied to all prior periods presented in this report. Consistent with our internal management reporting, unallocated expenses include certain items impacting comparability. These unallocated items are not defined terms within U.S. 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 distribution center wind down fees, inventory reserve, 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. Figures for prior reporting periods have been restated to conform with the accounting requirements of the current period. Financial information concerning the Company's reportable operating segments is shown in the tables below.
|  | For the Year Ended June 30, 2025
|  | (Dollars in thousands)
|  | Franchise |  | Company-owned |  | Consolidated
Total revenue |  | $ | 166,403 |  |  | $ | 43,731 |  |  | $ | 210,134 |
Expenses |  |  |  |  |  |
General and administrative |  | $ | 42,769 |  |  | $ | 3,995 |  |  | $ | 46,764 |
Rent |  | 3,413 |  |  | 7,074 |  |  | 10,487 |
Non-margin expenses (1) |  | 98,523 |  |  | — |  |  | 98,523 |
Company-owned salon expense |  | — |  |  | 31,103 |  |  | 31,103 |
Depreciation and amortization |  | 1,194 |  |  | 1,772 |  |  | 2,966 |
Long-lived asset impairment |  | 352 |  |  | — |  |  | 352 |
Operating income (loss) |  | $ | 20,152 |  |  | $ | (213) |  |  | $ | 19,939 |
Unallocated income, net (2) |  |  |  |  |  | 103,597 |
Total net income |  |  |  |  |  | $ | 123,536 |
Segment adjusted EBITDA |  | $ | 28,362 |  |  | $ | 3,213 |  |  | $ | 31,575 |
_______________________________________________________________________________ (1)Non-margin 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. (2)Unallocated income, net includes release of valuation allowance. Financial information reconciling the Company's reportable operating segments Operating income (loss) to Adjusted EBITDA is shown in the tables below.
|  | For the Year Ended June 30, 2025
|  | (Dollars in thousands)
|  | Franchise |  | Company-owned |  | Consolidated
Operating income (loss) |  | $ | 20,152 |  |  | $ | (213) |  |  | $ | 19,939 |
Depreciation and amortization |  | 1,194 |  |  | 1,772 |  |  | 2,966 |
Other, net |  | 1,624 |  |  | — |  |  | 1,624 |
Discrete items (1) |  | 5,392 |  |  | 1,654 |  |  | 7,046 |
Segment adjusted EBITDA |  | $ | 28,362 |  |  | $ | 3,213 |  |  | $ | 31,575 |
_______________________________________________________________________________ (1)Discrete items include one-time professional fees and legal settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired right of use asset, lease termination fees and asset retirement obligation costs.
|  | For the Year Ended June 30, 2024
|  | (Dollars in thousands)
|  | Franchise |  | Company-owned |  | Consolidated
Total revenue |  | $ | 195,659 |  |  | $ | 7,323 |  |  | $ | 202,982 |
Expenses |  |  |  |  |  |
Cost of product sales to franchisees |  | $ | 436 |  |  | $ | — |  |  | $ | 436 |
General and administrative |  | 44,778 |  |  | 609 |  |  | 45,387 |
Rent |  | 3,450 |  |  | 2,075 |  |  | 5,525 |
Non-margin expenses (1) |  | 120,921 |  |  | — |  |  | 120,921 |
Company-owned salon expense |  | — |  |  | 5,080 |  |  | 5,080 |
Depreciation and amortization |  | 3,095 |  |  | 850 |  |  | 3,945 |
Long-lived asset impairment |  | 798 |  |  | — |  |  | 798 |
Operating income (loss) |  | $ | 22,181 |  |  | $ | (1,291) |  |  | $ | 20,890 |
Unallocated income, net (2) |  |  |  |  |  | 70,170 |
Total net income |  |  |  |  |  | $ | 91,060 |
Segment adjusted EBITDA |  | $ | 27,815 |  |  | $ | (323) |  |  | $ | 27,492 |
_______________________________________________________________________________ (1)Non-margin 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. (2)Unallocated income, net includes extinguishment of long-term debt. Financial information reconciling the Company's reportable operating segments Operating income (loss) to Adjusted EBITDA is shown in the tables below.
|  | For the Year Ended June 30, 2024
|  | (Dollars in thousands)
|  | Franchise |  | Company-owned |  | Consolidated
Operating income (loss) |  | $ | 22,181 |  |  | $ | (1,291) |  |  | $ | 20,890 |
Depreciation and amortization |  | 3,095 |  |  | 850 |  |  | 3,945 |
Other, net |  | (172) |  |  | — |  |  | (172) |
Discrete items (1) |  | 2,711 |  |  | 118 |  |  | 2,829 |
Segment adjusted EBITDA |  | $ | 27,815 |  |  | $ | (323) |  |  | $ | 27,492 |
_______________________________________________________________________________ (1)Discrete items include one-time professional fees and legal settlements, severance expense, the benefit from lease liability decreases in excess of previously impaired right of use asset, lease termination fees and asset retirement obligation costs.
|  | For the Year Ended June 30, 2023
|  | (Dollars in thousands)
|  | Franchise |  | Company-owned |  | Consolidated
Total revenue |  | $ | 223,237 |  |  | $ | 10,089 |  |  | $ | 233,326 |
Expenses |  |  |  |  |  |
Cost of product sales to franchisees |  | $ | 3,540 |  |  | $ | — |  |  | $ | 3,540 |
Inventory reserve |  | — |  |  | 1,228 |  |  | 1,228 |
General and administrative |  | 50,074 |  |  | 677 |  |  | 50,751 |
Rent |  | 4,664 |  |  | 4,532 |  |  | 9,196 |
Non-margin expenses (1) |  | 143,188 |  |  | — |  |  | 143,188 |
Company-owned salon expense |  | — |  |  | 8,827 |  |  | 8,827 |
Depreciation and amortization |  | 6,919 |  |  | 797 |  |  | 7,716 |
Long-lived asset impairment |  | 101 |  |  | — |  |  | 101 |
Operating income (loss) |  | $ | 14,751 |  |  | $ | (5,972) |  |  | $ | 8,779 |
Unallocated income, net |  |  |  |  |  | (16,164) |
Total net loss |  |  |  |  |  | $ | (7,385) |
Segment adjusted EBITDA |  | $ | 25,107 |  |  | $ | (1,788) |  |  | $ | 23,319 |
_______________________________________________________________________________ (1)Non-margin 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. Financial information reconciling the Company's reportable operating segments Operating income (loss) to Adjusted EBITDA is shown in the tables below.
|  | For the Year Ended June 30, 2023
|  | (Dollars in thousands)
|  | Franchise |  | Company-owned |  | Consolidated
Operating income (loss) |  | $ | 14,751 |  |  | $ | (5,972) |  |  | $ | 8,779 |
Depreciation and amortization |  | 6,919 |  |  | 797 |  |  | 7,716 |
Other, net |  | (86) |  |  | 1,450 |  |  | 1,364 |
Discrete items (1) |  | 3,523 |  |  | 1,937 |  |  | 5,460 |
Segment adjusted EBITDA |  | $ | 25,107 |  |  | $ | (1,788) |  |  | $ | 23,319 |
_______________________________________________________________________________ (1)Discrete items include one-time professional fees and legal settlements, inventory reserve, severance expense, the benefit from lease liability decreases in excess of previously impaired right of use asset, lease termination fees and asset retirement obligation costs.
Schedule of Franchisor Disclosure | The Company's reportable operating segments consisted of the following salons:
|  | June 30,
|  | 2025 |  | 2024
FRANCHISE SALONS: |  |  |  |
Supercuts |  | 1,711 |  |  | 1,946 |
SmartStyle/Cost Cutters in Walmart stores |  | 1,049 |  |  | 1,232 |
Portfolio Brands |  | 816 |  |  | 1,117 |
Total North American salons |  | 3,576 |  |  | 4,295 |
Total International salons (1) |  | 71 |  |  | 96 |
Total franchise salons |  | 3,647 |  |  | 4,391 |
as a percent of total franchise and company-owned salons |  | 92.5 | % |  | 99.6 | %
COMPANY-OWNED SALONS (2): |  |  |  |
Supercuts |  | 100 |  |  | 3 |
SmartStyle/Cost Cutters in Walmart stores |  | — |  |  | 8 |
Portfolio Brands |  | 194 |  |  | 6 |
Total company-owned salons |  | 294 |  |  | 17 |
as a percent of total franchise and company-owned salons |  | 7.5 | % |  | 0.4 | %
Total franchise and company-owned salons |  | 3,941 |  |  | 4,408 |
_______________________________________________________________________________ (1)Canadian and Puerto Rican salons are included in the North American salon totals. (2)Salon counts as of June 30, 2025, include salons acquired as part of the Alline Acquisition. See Note 16 to the Consolidated Financial Statements.
Schedule of Total Revenues and Property and Equipment, Net | Total revenues and property and equipment, net associated with business operations in the U.S. and all other countries in aggregate were as follows:
|  | June 30,
|  | 2025 |  | 2024 |  | 2023
|  | Total Revenues |  | Property and Equipment, Net |  | Total Revenues |  | Property and Equipment, Net |  | Total Revenues |  | Property and Equipment, Net
|  | (Dollars in thousands)
U.S. |  | $ | 194,211 |  |  | $ | 10,085 |  |  | $ | 183,465 |  |  | $ | 3,663 |  |  | $ | 211,429 |  |  | $ | 6,410 |
Other countries |  | 15,923 |  |  | — |  |  | 19,517 |  |  | 1 |  |  | 21,897 |  |  | 12 |
Total |  | $ | 210,134 |  |  | $ | 10,085 |  |  | $ | 202,982 |  |  | $ | 3,664 |  |  | $ | 233,326 |  |  | $ | 6,422 |

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- Definition Tabular disclosure of the profit or loss and total assets for each reportable segment. An entity discloses certain information on each reportable segment if the amounts (a) are included in the measure of segment profit or loss reviewed by the chief operating decision maker or (b) are otherwise regularly provided to the chief operating decision maker, even if not included in that measure of segment profit or loss. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 25 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-25 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-30 + Details
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