v3.25.3
LEASES (Tables)
 3 Months Ended
Sep. 30, 2025
Leases [Abstract]  
Schedule of Total Rent from Continuing Operations Total rent includes the following:
Three Months Ended September 30,
20252024
(Dollars in thousands)
Office rent (1)$754 $726 
Lease termination expense (2)123 52 
Lease liability benefit (3)(56)(62)
Franchise salon rent (242)71 
Company-owned salon rent (4)2,644 277 
Total$3,223 $1,064 
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(1)Rental income associated with the sublease of the corporate office space is recorded in other income and was $0.3 million and $0.2 million for the three months ended September 30, 2025, and 2024, respectively.
(2)Costs incurred to exit salons before the lease end date in order to relieve the company of future lease obligations.
(3)Upon termination of previously impaired leases, the Company derecognizes the corresponding ROU assets and lease liabilities which results in a net gain. In addition, the Company recognizes a benefit from lease liabilities decreasing in excess of previously impaired ROU assets for ongoing leases that were previously impaired.
(4)Includes rent related to the Alline salons acquired in December 2024. See Note 13.
Schedule of Lessor, Future Operating Lease Commitments
As of September 30, 2025, future operating lease commitments, including one renewal option for leases expected to be renewed, to be paid and received by the Company were as follows (dollars in thousands):
Fiscal YearLeases for Franchise SalonsLeases for Company-Owned SalonsCorporate LeasesTotal Operating Lease PaymentsSublease Income to be Received from FranchiseesNet Rent Commitments
Remainder of 2026$48,879 $5,560 $1,028 $55,467 $(48,879)$6,588 
202757,725 5,679 1,401 64,805 (57,725)7,080 
202848,508 3,886 1,436 53,830 (48,508)5,322 
202938,279 2,237 1,472 41,988 (38,279)3,709 
203025,301 1,099 1,509 27,909 (25,301)2,608 
Thereafter27,897 218 — 28,115 (27,897)218 
Total future obligations$246,589 $18,679 $6,846 $272,114 $(246,589)$25,525 
Less amounts representing interest35,737 1,860 633 38,230 
Present value of lease liability$210,852 $16,819 $6,213 $233,884 
Less short-term lease liability52,152 6,279 1,144 59,575 
Long-term lease liability$158,700 $10,540 $5,069 $174,309 
Schedule of Lessee, Future Operating Lease Commitments
As of September 30, 2025, future operating lease commitments, including one renewal option for leases expected to be renewed, to be paid and received by the Company were as follows (dollars in thousands):
Fiscal YearLeases for Franchise SalonsLeases for Company-Owned SalonsCorporate LeasesTotal Operating Lease PaymentsSublease Income to be Received from FranchiseesNet Rent Commitments
Remainder of 2026$48,879 $5,560 $1,028 $55,467 $(48,879)$6,588 
202757,725 5,679 1,401 64,805 (57,725)7,080 
202848,508 3,886 1,436 53,830 (48,508)5,322 
202938,279 2,237 1,472 41,988 (38,279)3,709 
203025,301 1,099 1,509 27,909 (25,301)2,608 
Thereafter27,897 218 — 28,115 (27,897)218 
Total future obligations$246,589 $18,679 $6,846 $272,114 $(246,589)$25,525 
Less amounts representing interest35,737 1,860 633 38,230 
Present value of lease liability$210,852 $16,819 $6,213 $233,884 
Less short-term lease liability52,152 6,279 1,144 59,575 
Long-term lease liability$158,700 $10,540 $5,069 $174,309