Sally Beauty Holdings Inc.

08/03/2026 | Press release | Distributed by Public on 08/03/2026 04:50

Sally Beauty Holdings Reports Third Quarter Fiscal 2026 Results

Sally Beauty Holdings Reports Third Quarter Fiscal 2026 Results

Aug 03, 2026

Sally Beauty Holdings Reports Third Quarter Fiscal 2026 Results
  • Q3 Consolidated Net Sales Increased 0.2%; Consolidated Comparable Sales Flat
  • Q3 GAAP Diluted EPS Increased 25%; Adjusted Diluted EPS Increased 8%
  • Q3 Cash Flow from Operations of $81 Million Deployed to Invest for Growth, Strengthen Balance Sheet and Return Value to Shareholders
  • Narrows Full Year Fiscal 2026 Outlook Within Prior Guidance Ranges

PLANO, Texas--(BUSINESS WIRE)-- Sally Beauty Holdings, Inc. (NYSE: SBH) (the "Company"), the leader in professional hair color, today announced financial results for its third quarter ended June 30, 2026. The Company will hold a conference call today at 7:30 a.m. Central Time to discuss these results and its business.

"Our third quarter results reflect the progress we are making against our long-term strategy and the underlying strength of our operating model," said Denise Paulonis, president and chief executive officer. "We delivered solid EPS growth and strong cash flow while continuing to invest in the initiatives that are reshaping our customer experience, expanding our reach and strengthening our competitive position. Sally U.S. and Canada delivered another strong quarter with 3.5% comparable sales growth, supported by the strength of hair color, digital growth and new customer acquisition. Importantly, the traction we are seeing across our strategic initiatives has helped drive 9% adjusted EPS growth year-to-date, underscoring our ability to deliver profitable growth while investing in the future. As we enter the final quarter of fiscal 2026, we remain focused on investing behind the growth initiatives that position Sally Beauty Holdings to deliver sustainable, profitable growth and long-term shareholder value."

Fiscal 2026 Third Quarter Summary

  • Consolidated net sales of $935 million, an increase of 0.2% compared to the prior year;
  • Consolidated comparable sales were flat;
  • Global e-commerce sales increased 11% to $110 million, representing 12% of net sales;
  • GAAP gross margin expansion of 90 basis points to 52.4%;
  • Adjusted Gross Margin expansion of 40 basis points to 52.4%;
  • GAAP selling, general and administrative expenses of $404 million, an increase of $1 million compared to the prior year;
  • Adjusted Selling, General and Administrative Expenses of $404 million, an increase of $5 million compared to the prior year;
  • GAAP operating earnings of $86 million and GAAP operating margin of 9.2%;
  • Adjusted Operating Earnings of $87 million and Adjusted Operating Margin of 9.3%;
  • GAAP diluted net earnings per share of $0.55, an increase of 25% compared to the prior year;
  • Adjusted Diluted Net Earnings Per Share of $0.55, an increase of 8% compared to the prior year;
  • Cash flow from operations of $81 million and Free Cash Flow of $62 million; and
  • Completed $20 million in term loan repayment and $25 million in share repurchases.

Balance Sheet and Cash Flow

As of June 30, 2026, the Company had cash and cash equivalents of $173 million and no outstanding borrowings under its asset-based revolving line of credit. At the end of the quarter, inventory was $996 million, down 1% versus a year ago.

Third quarter cash flow from operations was $81million and Free Cash Flow totaled $62million. During the quarter, the Company utilized its cash flow to repay $20 million of term loan B debt and repurchase 1.9 million shares under its share repurchase program at an aggregate cost of $25 million. The Company ended the third quarter with a net debt leverage ratio of 1.4x.

Fiscal 2026 Third Quarter Segment Results

Sally Beauty Beauty Systems Group
(In thousands, except percentages) Q3 FY26 Q3 FY25 Growth/(Decline) Q3 FY26 Q3 FY25 Growth/(Decline)
Net Sales

$

538,570

$

526,782

2.2

%

$

396,920

$

406,525

(2.4

)%

Comparable Sales Growth/(Decline)

1.6

%

(1.1

)%

270 bps

(2.1

)%

0.5

%

(260) bps
Gross Margin

61.5

%

60.9

%

60 bps

40.1

%

39.4

%

70 bps
Operating Earnings

$

89,356

$

83,305

7.3

%

$

48,973

$

50,672

(3.4

)%

Operating Margin

16.6

%

15.8

%

80 bps

12.3

%

12.5

%

(20) bps

Fiscal Year 2026 Guidance*

Full Year Prior FY26 Guidance Updated FY26 Guidance
Consolidated Net Sales $3.725 billion to $3.750 billion $3.725 billion to $3.733 billion(1)
Comparable Sales Flat to up 1% Approximately 0.5%
Adjusted Operating Earnings $328 million to $342 million $329 million to $335 million
Adjusted Diluted EPS $2.02 to $2.10 $2.04 to $2.08(2)
Capital Expenditures Approximately $100 million No change
Free Cash Flow Approximately $200 million No change
(1) Assumes approximately 30 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, August 3, 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 Q3 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 Q3 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 August 3, 2026, through August 3, 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 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

2-3

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 June 30, Nine Months Ended June 30,

2026

2025

Percentage
Change

2026

2025

Percentage
Change
Net sales

$

935,490

$

933,307

0.2

%

$

2,782,040

$

2,754,348

1.0

%

Cost of products sold

445,241

452,322

(1.6

)%

1,332,760

1,337,706

(0.4

)%

Gross profit

490,249

480,985

1.9

%

1,449,280

1,416,642

2.3

%

Selling, general and administrative expenses

403,853

402,812

0.3

%

1,215,019

1,168,776

4.0

%

Operating earnings

86,396

78,173

10.5

%

234,261

247,866

(5.5

)%

Interest expense

13,693

15,709

(12.8

)%

42,478

49,440

(14.1

)%

Earnings before provision for income taxes

72,703

62,464

16.4

%

191,783

198,426

(3.3

)%

Provision for income taxes

18,621

16,740

11.2

%

49,449

52,479

(5.8

)%

Net earnings

$

54,082

$

45,724

18.3

%

$

142,334

$

145,947

(2.5

)%

Earnings per share:
Basic

$

0.57

$

0.46

23.9

%

$

1.47

$

1.44

2.1

%

Diluted

$

0.55

$

0.44

25.0

%

$

1.43

$

1.40

2.1

%

Weighted average shares:
Basic

95,058

100,463

96,537

101,367

Diluted

97,912

103,239

99,402

104,187

Basis Point
Change 		Basis Point
Change
Comparison as a percentage of net sales
Consolidated gross margin

52.4

%

51.5

%

90

52.1

%

51.4

%

70

Selling, general and administrative expenses

43.2

%

43.2

%

-

43.7

%

42.4

%

130

Consolidated operating margin

9.2

%

8.4

%

80

8.4

%

9.0

%

(60

)

Effective tax rate

25.6

%

26.8

%

(120

)

25.8

%

26.4

%

(60

)

SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
June 30, September 30,

2026

2025

Cash and cash equivalents

$

173,100

$

149,162

Trade and other accounts receivable

95,942

116,562

Inventory

996,001

987,575

Other current assets

46,159

48,154

Total current assets

1,311,202

1,301,453

Property and equipment, net

279,220

284,284

Operating lease assets

652,279

646,698

Goodwill and other intangible assets

589,189

593,692

Other assets

51,254

44,969

Total assets

$

2,883,144

$

2,871,096

Current maturities of long-term debt

$

4,000

$

4,000

Accounts payable

223,860

224,507

Accrued liabilities

163,992

184,641

Current operating lease liabilities

161,743

158,566

Income taxes payable

293

4,260

Total current liabilities

553,888

575,974

Long-term debt, including capital leases

803,567

861,974

Long-term operating lease liabilities

546,098

538,426

Other liabilities

20,904

21,026

Deferred income tax liabilities, net

87,213

79,489

Total liabilities

2,011,670

2,076,889

Total stockholders' equity

871,474

794,207

Total liabilities and stockholders' equity

$

2,883,144

$

2,871,096

Supplemental Schedule 1

SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES
Segment Information
(In thousands)
(Unaudited)

Three Months Ended June 30,

Nine Months Ended June 30,

2026

2025

Percentage
Change

2026

2025

Percentage
Change

Net sales:
Sally Beauty Supply ("Sally")

$

538,570

$

526,782

2.2

%

$

1,591,407

$

1,552,803

2.5

%

Beauty Systems Group ("BSG")

396,920

406,525

(2.4

)%

1,190,633

1,201,545

(0.9

)%

Total net sales

$

935,490

$

933,307

0.2

%

$

2,782,040

$

2,754,348

1.0

%

Operating earnings:
Sally

$

89,356

$

83,305

7.3

%

$

245,402

$

240,484

2.0

%

BSG

48,973

50,672

(3.4

)%

150,248

145,075

3.6

%

Segment operating earnings

138,329

133,977

3.2

%

395,650

385,559

2.6

%

Unallocated expenses (1)

51,933

55,804

(6.9

)%

161,389

137,693

17.2

%

Interest expense

13,693

15,709

(12.8

)%

42,478

49,440

(14.1

)%

Earnings before provision for income taxes

$

72,703

$

62,464

16.4

%

$

191,783

$

198,426

(3.3

)%

Segment gross margin:

2026

2025

Basis Point
Change

2026

2025

Basis Point
Change
Sally

61.5

%

60.9

%

60

60.8

%

60.6

%

20

BSG

40.1

%

39.4

%

70

40.4

%

39.6

%

80

Segment operating margin:
Sally

16.6

%

15.8

%

80

15.4

%

15.5

%

(10

)

BSG

12.3

%

12.5

%

(20

)

12.6

%

12.1

%

50

Consolidated operating margin

9.2

%

8.4

%

80

8.4

%

9.0

%

(60

)

(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 nine months ended June 30, 2025.
Supplemental Schedule 2
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures Reconciliations
(In thousands, except per share data)

(Unaudited)

Three Months Ended June 30, 2026
As Reported
(GAAP) 		Fuel for Growth
and Other (1) 		As Adjusted
(Non-GAAP)
Cost of products sold

$

445,241

$

(283

)

$

444,958

Consolidated gross margin

52.4

%

52.4

%

Selling, general and administrative expenses

403,853

89

403,942

SG&A expenses, as a percentage of sales

43.2

%

43.2

%

Operating earnings

86,396

194

86,590

Operating margin

9.2

%

9.3

%

Earnings before provision for income taxes

72,703

194

72,897

Provision for income taxes (3)

18,621

47

18,668

Net earnings

$

54,082

$

147

$

54,229

Earnings per share: (4)
Basic

$

0.57

$

-

$

0.57

Diluted

$

0.55

$

-

$

0.55

Three Months Ended June 30, 2025
As Reported
(GAAP) 		Fuel for Growth
and Other (1) 		Corporate HQ
Relocation (2) 		As Adjusted
(Non-GAAP)
Cost of products sold

$

452,322

$

(4,068

)

$

-

$

448,254

Consolidated gross margin

51.5

%

52.0

%

Selling, general and administrative expenses

402,812

(3,737

)

(137

)

398,938

SG&A expenses, as a percentage of sales

43.2

%

42.7

%

Operating earnings

78,173

7,805

137

86,115

Operating margin

8.4

%

9.2

%

Earnings before provision for income taxes

62,464

7,805

137

70,406

Provision for income taxes (3)

16,740

1,263

10

18,013

Net earnings

$

45,724

$

6,542

$

127

$

52,393

Earnings per share: (4)
Basic

$

0.46

$

0.07

$

-

$

0.52

Diluted

$

0.44

$

0.06

$

-

$

0.51

(1) Primarily represents expenses associated with our Fuel for Growth initiative and other non-recurring items.
(2) Primarily represents expenses in connection with the relocation of our headquarters.
(3) 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) Calculated using rounded amounts as presented.
Supplemental Schedule 3
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures Reconciliations, Continued
(In thousands, except per share data)
(Unaudited)
Nine Months Ended June 30, 2026
As Reported
(GAAP) 		Fuel for
Growth and
Other (1) 		Corporate HQ
Relocation (2) 		As Adjusted
(Non-GAAP)
Cost of products sold

$

1,332,760

$

(2,001

)

$

-

$

1,330,759

Consolidated gross margin

52.1

%

52.2

%

Selling, general and administrative expenses

1,215,019

(1,373

)

(1,852

)

1,211,794

SG&A expenses, as a percentage of sales

43.7

%

43.6

%

Operating earnings

234,261

3,374

1,852

239,487

Operating margin

8.4

%

8.6

%

Earnings before provision for income taxes

191,783

3,374

1,852

197,009

Provision for income taxes (4)

49,449

852

476

50,777

Net earnings

$

142,334

$

2,522

$

1,376

$

146,232

Earnings per share: (5)
Basic

$

1.47

$

0.03

$

0.01

$

1.51

Diluted

$

1.43

$

0.03

$

0.01

$

1.47

Nine Months Ended June 30, 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

$

1,337,706

$

(4,068

)

$

-

$

-

$

1,333,638

Consolidated gross margin

51.4

%

51.6

%

Selling, general and administrative expenses

1,168,776

(12,412

)

26,296

(1,779

)

1,180,881

SG&A expenses, as a percentage of sales

42.4

%

42.9

%

Operating earnings

247,866

16,480

(26,296

)

1,779

239,829

Operating margin

9.0

%

8.7

%

Earnings before provision for income taxes

198,426

16,480

(26,296

)

1,779

190,389

Provision for income taxes (4)

52,479

3,485

(6,788

)

444

49,620

Net earnings

$

145,947

$

12,995

$

(19,508

)

$

1,335

$

140,769

Earnings per share: (5)
Basic

$

1.44

$

0.13

$

(0.19

)

$

0.01

$

1.39

Diluted

$

1.40

$

0.12

$

(0.19

)

$

0.01

$

1.35

(1) Primarily represents expenses associated with our Fuel for Growth initiative and other non-recurring items.
(2) For the nine months ended June 30, 2026, corporate HQ relocation primarily represents duplicate rent expense on the new office prior to our relocation from our Denton corporate headquarters. For the nine months ended June 30, 2025, corporate HQ relocation primarily represents a $26.6 million gain from the sale of our Denton headquarters facility, net of expenses associated with the relocation.
(3) Write-off of certain tradenames used in Europe.
(4) 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) Calculated using rounded amounts as presented.
Supplemental Schedule 4
SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES
Non-GAAP Financial Measures Reconciliations, Continued
(In thousands)
(Unaudited)
Three Months Ended June 30, Nine Months Ended June 30,
Adjusted EBITDA:

2026

2025

Percentage
Change

2026

2025

Percentage
Change
Net earnings

$

54,082

$

45,724

18.3

%

$

142,334

$

145,947

(2.5

)%

Add:
Depreciation and amortization

26,223

24,669

6.3

%

75,135

75,593

(0.6

)%

Interest expense

13,693

15,709

(12.8

)%

42,478

49,440

(14.1

)%

Provision for income taxes

18,621

16,740

11.2

%

49,449

52,479

(5.8

)%

EBITDA (non-GAAP)

112,619

102,842

9.5

%

309,396

323,459

(4.3

)%

Share-based compensation

4,572

4,509

1.4

%

18,096

14,800

22.3

%

Fuel for Growth and Other

194

7,805

(97.5

)%

3,374

16,480

(79.5

)%

Corporate HQ Relocation

-

137

(100.0

)%

1,852

(26,296

)

107.0

%

Asset Impairment

-

-

-

%

-

1,779

(100.0

)%

Adjusted EBITDA (non-GAAP)

$

117,385

$

115,293

1.8

%

$

332,718

$

330,222

0.8

%

Adjusted EBITDA as a percentage of net sales Basis Point
Change 		Basis Point
Change
Adjusted EBITDA margin

12.5

%

12.4

%

10

12.0

%

12.0

%

-

Free Cash Flow:

2026

2025

Percentage
Change

2026

2025

Percentage
Change
Cash flows from operating activities

$

80,942

$

69,432

16.6

%

$

247,461

$

153,952

60.7

%

Less: Payments for capital expenditures

19,311

20,300

(4.9

)%

84,257

59,271

42.2

%

Plus: Proceeds from sale of property and equipment (1)

-

-

-

%

-

43,574

(100.0

)%

Free cash flow (non-GAAP)

$

61,631

$

49,132

25.4

%

$

163,204

$

138,255

18.0

%

(1) 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 June 30,

2026

2025

Change
Number of stores:
Sally

3,066

3,096

(30)

BSG:
Company-operated stores

1,189

1,198

(9)

Franchise stores

131

131

-

Total BSG

1,320

1,329

(9)

Total consolidated

4,386

4,425

(39)

Number of BSG salon business consultants (1)

558

611

(53)

(1) Includes 193 and 191 sales consultants employed by our franchisees at June 30, 2026 and 2025, respectively.

Three Months Ended June 30, Nine Months Ended June 30,

2026

2025

Basis Point
Change

2026

2025

Basis Point
Change
Comparable sales growth (decline):
Sally

1.6 %

(1.1)%

270

1.4 %

0.1 %

130

BSG

(2.1)%

0.5 %

(260)

(0.9)%

(0.2)%

(70)

Consolidated

- %

(0.4)%

40

0.4 %

- %

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 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260803430399/en/

Jeff Harkins

Investor Relations

940-297-4131

[email protected]

Source: Sally Beauty Holdings, Inc.

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