# EDGAR Filing Document

**Accession Number:** 0001368458
**File Stem:** 0001193125-26-216750
**Filing Date:** 2026-5
**Character Count:** 128853
**Document Hash:** 2da317bf0fb650c3d85ca78926165ecb
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-216750.hdr.sgml**: 20260511

**ACCESSION NUMBER**: 0001193125-26-216750

**CONFORMED SUBMISSION TYPE**: 10-Q

**PUBLIC DOCUMENT COUNT**: 61

**CONFORMED PERIOD OF REPORT**: 20260331

**FILED AS OF DATE**: 20260511

**DATE AS OF CHANGE**: 20260511

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Sally Beauty Holdings, Inc.
- **CENTRAL INDEX KEY:** 0001368458
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-RETAIL STORES, NEC [5990]
- **ORGANIZATION NAME:** 07 Trade & Services
- **EIN:** 362257936
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 10-Q
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-33145
- **FILM NUMBER:** 26963181

**BUSINESS ADDRESS:**
- **STREET 1:** 7900 WINDROSE AVENUE
- **CITY:** PLANO
- **STATE:** TX
- **ZIP:** 75024
- **BUSINESS PHONE:** (940) 898-7500

**MAIL ADDRESS:**
- **STREET 1:** 7900 WINDROSE AVENUE
- **CITY:** PLANO
- **STATE:** TX
- **ZIP:** 75024

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** New Sally Holdings, Inc.
- **DATE OF NAME CHANGE:** 20060707

?xml version='1.0' encoding='ASCII'? 10-Q

------

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

------

**FORM** 10-Q

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☒ **QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934** 

FOR THE QUARTERLY PERIOD ENDED: MARCH 31, 2026

**or** 

☐ **TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934**

Commission File No. 1-33145

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SALLY BEAUTY HOLDINGS, INC.

(Exact name of registrant as specified in its charter)

------

---

| | |
|:---|:---|
| Delaware | 36-2257936 |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| 7900 Windrose Ave |  |
| Plano**,** Texas | 75024 |
| (Address of principal executive offices) | (Zip Code) |

---

**(**800**)** 777-5706

(Registrant's telephone number, including area code)

**Securities registered pursuant to Section 12(b) of the Act:**

---

| | | |
|:---|:---|:---|
| **<u>Title of each class</u>**  | **<u>Trading Symbol</u>** | **<u>Name of each exchange on which registered</u>** |
| Common Stock, $0.01 par value | SBH | The New York Stock Exchange |

---

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒ Accelerated filer ☐ Non-accelerated filer ☐ <br> Smaller reporting company ☐ Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Number of shares of common stock outstanding as of May 6, 2026: 95,408,486

------

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [**<u>PART I — FINANCIAL INFORMATION</u>**](#part_i_financial_information) |  |
| [<u>Item 1. Financial Statements</u>](#item_1_financial_statements) | 4 |
| [<u>Condensed Consolidated Balance Sheets</u>](#balance_sheet) | 4 |
| [<u>Condensed Consolidated Statements of Earnings</u>](#income_statement) | 5 |
| [<u>Condensed Consolidated Statements of Comprehensive Income</u>](#comp_income) | 6 |
| [<u>Condensed Consolidated Statements of Stockholders' Equity</u>](#sosa) | 7 |
| [<u>Condensed Consolidated Statements of Cash Flows</u>](#cash_flow) | 8 |
| [<u>Notes to Condensed Consolidated Financial Statements</u>](#notes) | 9 |
| [<u>Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations</u>](#item_2_managements_discussion_analysis_f) | 16 |
| [<u>Item 3. Quantitative and Qualitative Disclosures About Market Risk</u>](#item_3_quantitative_qualitative_disclosu) | 23 |
| [<u>Item 4. Controls and Procedures</u>](#item_4_controls_procedures) | 23 |
| [**<u>PART II — OTHER INFORMATION</u>**](#part_ii_or_information) |  |
| [<u>Item 1. Legal Proceedings</u>](#item_1_legal_proceedings) | 24 |
| [<u>Item 1A. Risk Factors</u>](#item_1a_risk_factors) | 24 |
| [<u>Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities.</u>](#item_2_securities) | 24 |
| [<u>Item 5. Other Information</u>](#item_5_other_information) | 24 |
| [<u>Item 6. Exhibits</u>](#item_6_exhibits) | 25 |

---

------

In this Quarterly Report, references to the "Company," "our company," "Sally Beauty," "we," "our," "ours" and "us" refer to Sally Beauty Holdings, Inc. and its consolidated subsidiaries unless otherwise indicated or the context otherwise requires.

**cautionary notice regarding forward-looking statements** 

Statements in this Quarterly Report on Form 10-Q and in the documents incorporated by reference herein which are not purely historical facts or which depend upon future events may constitute 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, (the "Exchange Act"). Words such as "anticipate," "believe," "estimate," "expect," "intend," "plan," "project," "target," "can," "could," "may," "should," "will," "would," "might" or similar expressions may also identify such forward-looking statements.

Readers are cautioned not to place undue reliance on forward-looking statements as such statements speak only as of the date they were made and 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. The most important factors which could cause our actual results to differ from our forward-looking statements are set forth in our description of risk factors in Item 1A contained in 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 ("SEC") which should be read in conjunction with the forward-looking statements in this report. Forward-looking statements speak only as of the date they are made, and we do not undertake any obligation to update any forward-looking statement.

The events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than we have described. As a result, our actual results may differ materially from the results contemplated by these forward-looking statements.

------

**PART I — FINANCIAL INFORMATION** 

**Item 1. Financial Statements.** 

**SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES**

Condensed Consolidated Balance Sheets

(In thousands, except par value data)

---

| | | |
|:---|:---|:---|
|  | **March 31,<br>2026** | **September 30,<br>2025** |
|  | **(Unaudited)** |  |
| **Assets** |  |  |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $157401 | $149162 |
| &nbsp;&nbsp;&nbsp;&nbsp;Trade accounts receivable, net | 26231 | 31828 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, other | 75401 | 84734 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventory | 986787 | 987575 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 46940 | 48154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 1292760 | 1301453 |
| Property and equipment, net of accumulated depreciation of $963,117 at<br> March 31, 2026, and $937,596 at September 30, 2025 | 285335 | 284284 |
| Operating lease assets | 635406 | 646698 |
| Goodwill | 539061 | 540674 |
| Intangible assets, excluding goodwill, net of accumulated amortization of<br> $9,052 at March 31, 2026, and $14,686 at September 30, 2025 | 51375 | 53018 |
| Other assets | 49353 | 44969 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $2853290 | $2871096 |
| **Liabilities and Stockholders' Equity** |  |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Current maturities of long-term debt | $4000 | $4000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | 222635 | 224507 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accrued liabilities | 169800 | 184641 |
| &nbsp;&nbsp;&nbsp;&nbsp;Current operating lease liabilities | 157050 | 158566 |
| &nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable |  | 4260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 553485 | 575974 |
| Long-term debt | 823051 | 861974 |
| Long-term operating lease liabilities | 531987 | 538426 |
| Other liabilities | 21080 | 21026 |
| Deferred income tax liabilities, net | 85815 | 79489 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 2015418 | 2076889 |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock, $0.01 par value. Authorized 500,000 shares; 95,898 <br> and 97,875 shares issued and shares outstanding at March 31, 2026,<br> and September 30, 2025, respectively | 959 | 979 |
| &nbsp;&nbsp;&nbsp;&nbsp;Preferred stock, $0.01 par value. Authorized 50,000 shares; none issued |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated earnings | 946455 | 898076 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive loss, net of tax | (109542) | (104848) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 837872 | 794207 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $2853290 | $2871096 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

------

**SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES**

Condensed Consolidated Statements of Earnings

(In thousands, except per share data)

(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **March 31,** | **March 31,** | **March 31,** | **March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| Net sales | $903382 | $883146 | $1846550 | $1821041 |
| Cost of goods sold | 427610 | 424329 | 887519 | 885384 |
| &nbsp;&nbsp;&nbsp;&nbsp;Gross profit | 475772 | 458817 | 959031 | 935657 |
| Selling, general and administrative expenses | 403841 | 389444 | 811165 | 765964 |
| &nbsp;&nbsp;&nbsp;&nbsp;Operating earnings | 71931 | 69373 | 147866 | 169693 |
| Interest expense | 14165 | 16289 | 28785 | 33731 |
| &nbsp;&nbsp;&nbsp;&nbsp;Earnings before provision for income taxes | 57766 | 53084 | 119081 | 135962 |
| Provision for income taxes | 15071 | 13874 | 30829 | 35739 |
| &nbsp;&nbsp;&nbsp;&nbsp;Net earnings | $42695 | $39210 | $88252 | $100223 |
| Earnings per share: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $0.44 | $0.39 | $0.91 | $0.98 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $0.43 | $0.38 | $0.88 | $0.96 |
| Weighted-average shares: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 96727 | 101614 | 97271 | 101820 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 99721 | 104435 | 100265 | 104682 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

------

**SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES**

Condensed Consolidated Statements of Comprehensive Income

(In thousands)

(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended** | **Three Months Ended** | **Six Months Ended** | **Six Months Ended** |
|  | **March 31,** | **March 31,** | **March 31,** | **March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| Net earnings | $42695 | $39210 | $88252 | $100223 |
| Other comprehensive income (loss): |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign currency translation adjustments | (9079) | 10791 | (4692) | (15824) |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest rate swap, net of tax | 90 | (407) | (49) | 744 |
| &nbsp;&nbsp;&nbsp;&nbsp;Foreign exchange contracts, net of tax | 163 | (581) | 47 | 902 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss), net of tax | (8826) | 9803 | (4694) | (14178) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total comprehensive income | $33869 | $49013 | $83558 | $86045 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

------

**SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES**

Condensed Consolidated Statements of Stockholders' Equity

(In thousands)

(Unaudited)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  | **Accumulated** |  |
|  |  |  | **Additional** |  | **Other** | **Total** |
|  | **Common Stock** | **Common Stock** | **Paid-in** | **Accumulated** | **Comprehensive** | **Stockholders'** |
|  | **Shares** | **Amount** | **Capital** | **Earnings** | **Loss** | **Equity** |
| **Balance at September 30, 2025** | **97875** | $**979** | $**—** | $**898076** | $**(104848)** | $**794207** |
| &nbsp;&nbsp;Net earnings |  |  |  | 45557 |  | 45557 |
| &nbsp;&nbsp;Other comprehensive income |  |  |  |  | 4132 | 4132 |
| &nbsp;&nbsp;Share-based compensation |  |  | 7555 |  |  | 7555 |
| &nbsp;&nbsp;Stock issued for equity awards | 1493 | 15 | 192 |  |  | 207 |
| &nbsp;&nbsp;Employee withholding taxes paid<br> related to net share settlement | (517) | (5) | (7331) |  |  | (7336) |
| &nbsp;&nbsp;Repurchases and cancellations of <br> common stock | (1359) | (14) | (416) | (20327) |  | (20757) |
| **Balance at December 31, 2025** | **97492** | $**975** | $**—** | $**923306** | $**(100716)** | $**823565** |
| &nbsp;&nbsp;Net earnings |  |  |  | 42695 |  | 42695 |
| &nbsp;&nbsp;Other comprehensive loss |  |  |  |  | (8826) | (8826) |
| &nbsp;&nbsp;Share-based compensation |  |  | 5969 |  |  | 5969 |
| &nbsp;&nbsp;Stock issued for equity awards | 68 | 1 | 70 |  |  | 71 |
| &nbsp;&nbsp;Employee withholding taxes paid<br> related to net share settlement | (1) |  | (9) |  |  | (9) |
| &nbsp;&nbsp;Repurchases and cancellations of <br> common stock | (1661) | (17) | (6030) | (19546) |  | (25593) |
| **Balance at March 31, 2026** | **95898** | $**959** | $**—** | $**946455** | $**(109542)** | $**837872** |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  |  |  |  | **Accumulated** |  |
|  |  |  | **Additional** |  | **Other** | **Total** |
|  | **Common Stock** | **Common Stock** | **Paid-in** | **Accumulated** | **Comprehensive** | **Stockholders'** |
|  | **Shares** | **Amount** | **Capital** | **Earnings** | **Loss** | **Equity** |
| **Balance at September 30, 2024** | **101854** | $**1019** | $**—** | $**740685** | $**(113169)** | $**628535** |
| &nbsp;&nbsp;Net earnings |  |  |  | 61013 |  | 61013 |
| &nbsp;&nbsp;Other comprehensive loss |  |  |  |  | (23981) | (23981) |
| &nbsp;&nbsp;Share-based compensation |  |  | 6053 |  |  | 6053 |
| &nbsp;&nbsp;Stock issued for equity awards | 1162 | 12 | 69 |  |  | 81 |
| &nbsp;&nbsp;Employee withholding taxes paid<br> related to net share settlement | (392) | (4) | (5260) |  |  | (5264) |
| &nbsp;&nbsp;Repurchases and cancellations of <br> common stock | (753) | (8) | (862) | (9078) |  | (9948) |
| **Balance at December 31, 2024** | **101871** | $**1019** | $**—** | $**792620** | $**(137150)** | $**656489** |
| &nbsp;&nbsp;Net earnings |  |  |  | 39210 |  | 39210 |
| &nbsp;&nbsp;Other comprehensive income |  |  |  |  | 9803 | 9803 |
| &nbsp;&nbsp;Share-based compensation |  |  | 4238 |  |  | 4238 |
| &nbsp;&nbsp;Stock issued for equity awards | 112 | 1 | 321 |  |  | 322 |
| &nbsp;&nbsp;Employee withholding taxes paid<br> related to net share settlement | (1) |  | (7) |  |  | (7) |
| &nbsp;&nbsp;Repurchases and cancellations of <br> common stock | (1088) | (11) | (4552) | (5676) |  | (10239) |
| **Balance at March 31, 2025** | **100894** | $**1009** | $**—** | $**826154** | $**(127347)** | $**699816** |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

------

**SALLY BEAUTY HOLDINGS, INC. AND SUBSIDIARIES**

Condensed Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended March 31,** | **Six Months Ended March 31,** |
|  | **2026** | **2025** |
| **Cash Flows from Operating Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Net earnings | $88252 | $100223 |
| &nbsp;&nbsp;&nbsp;&nbsp;Adjustments to reconcile net earnings to net cash provided<br>&nbsp;&nbsp;&nbsp;&nbsp;by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 48912 | 50924 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Share-based compensation expense | 13524 | 10291 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of deferred financing costs | 965 | 1092 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss on early extinguishment of debt | 296 | 759 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Impairment of long-lived assets |  | 1779 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Loss (gain) on disposal of equipment and other property | 11 | (26641) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | 6208 | (4581) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in (exclusive of effects of acquisitions): |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Trade accounts receivable | 5517 | 5779 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, other | 8910 | (9751) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventory | (1750) | 20759 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 1148 | 6138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | (4548) | 666 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Operating leases, net | 3411 | (509) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and accrued liabilities | 7 | (57761) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable | (4400) | (13583) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | 56 | (1063) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 166519 | 84521 |
| **Cash Flows from Investing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments for property and equipment | (64946) | (38971) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of property and equipment, net |  | 43574 |
| &nbsp;&nbsp;&nbsp;&nbsp;Acquisitions, net of cash acquired |  | (371) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash (used) provided by investing activities | (64946) | 4232 |
| **Cash Flows from Financing Activities:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from issuance of long-term debt and ABL Facility |  | 351000 |
| &nbsp;&nbsp;&nbsp;&nbsp;Repayments of long-term debt and ABL Facility | (40000) | (428079) |
| &nbsp;&nbsp;&nbsp;&nbsp;Debt issuance costs |  | (1525) |
| &nbsp;&nbsp;&nbsp;&nbsp;Proceeds from equity awards | 278 | 403 |
| &nbsp;&nbsp;&nbsp;&nbsp;Payments for common stock repurchased | (46349) | (20187) |
| &nbsp;&nbsp;&nbsp;&nbsp;Employee withholding taxes paid related to net share settlement of equity awards | (7345) | (5271) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used by financing activities | (93416) | (103659) |
| Effect of foreign exchange rate changes on cash and cash equivalents | 82 | (881) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net increase (decrease) in cash and cash equivalents | 8239 | (15787) |
| Cash and cash equivalents, beginning of period | 149162 | 107961 |
| Cash and cash equivalents, end of period | $157401 | $92174 |
| **Supplemental Cash Flow Information:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest paid | $28529 | $33344 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid | $33752 | $55815 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures incurred but not paid | $8129 | $6999 |

---

The accompanying notes are an integral part of these condensed consolidated financial statements.

------

**Sally Beauty Holdings, Inc. and Subsidiaries**

Notes to Condensed Consolidated Financial Statements

(Unaudited)

**1. Significant Accounting Policies**

Basis of Presentation

The unaudited condensed consolidated interim financial statements of Sally Beauty Holdings, Inc. and its subsidiaries included herein have been prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and pursuant to the rules and regulations of the SEC. Accordingly, certain information and note disclosures normally included in annual financial statements prepared in accordance with GAAP have been condensed or omitted, although we believe that the disclosures included herein are adequate for the interim period presented. These condensed consolidated interim financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025. In the opinion of management, these unaudited condensed consolidated interim financial statements reflect all adjustments that are of a normal recurring nature and that are necessary to present fairly our consolidated financial position as of March 31, 2026, and September 30, 2025, our consolidated results of operations, consolidated comprehensive income, consolidated statements of stockholders' equity for the three and six months ended March 31, 2026 and 2025, and consolidated cash flows for the six months ended March 31, 2026 and 2025.

Principles of Consolidation

The unaudited condensed consolidated interim financial statements include all accounts of Sally Beauty Holdings, Inc. and its subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. All amounts are presented in U.S. Dollars.

Accounting Policies

We adhere to the same accounting policies in the preparation of our condensed consolidated interim financial statements as we do in the preparation of our full year consolidated financial statements. As permitted under GAAP, interim accounting for certain expenses, including income taxes, is based on full-year assumptions. For interim financial reporting purposes, income taxes are recorded based upon our estimated annual effective income tax.

Use of Estimates

In order to present our unaudited condensed consolidated interim financial statements in conformity with GAAP, we are required to make certain estimates and assumptions that impact our interim financial statements and supplementary disclosures. These estimates may use forecasted financial information based on reasonable assumptions available at the time of preparation, however, actual results could differ due to changes in facts and circumstances. Significant estimates and assumptions are involved in the accounting for sales allowances, deferred revenue, valuation of inventory, amortization and depreciation, intangible assets and goodwill, and other reserves. We believe these estimates and assumptions are reasonable based on management's knowledge of current events and anticipated further actions, and changes in facts and circumstances may result in revised estimates and impact actual results. Revisions to estimates are recognized in the period in which the facts that give rise to the change become known.

**2. Recent Accounting Pronouncements** 

In December 2023, the FASB issued accounting standards update ("ASU") No. 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures*, to expand disclosures in an entity's income tax rate reconciliation table and the disaggregation of taxes paid in U.S. and foreign jurisdictions. The amendments in this update are effective for annual periods beginning after December 15, 2024. The new standard is not expected to have a material impact on our consolidated financial statements; however, we expect to provide additional detail and disclosures upon adoption.

In November 2024, the FASB issued ASU 2024-03, *Income Statement – Reporting Comprehensive Income: Expense Disaggregation Disclosures (Subtopic 220-40)*, which requires, among other things, more detailed disclosure about types of expenses in commonly presented expense captions such as cost of goods sold and selling, general and administrative expenses. The update is intended to improve disclosures by providing amounts related to inventory purchases, employee compensation, depreciation, and amortization. The amendments in this update are effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027. Early adoption is permitted, but we currently do not expect to early adopt this standard. We are currently evaluating the impact of this update to our consolidated financial statements and disclosures.

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**3. Revenue Recognition** 

Substantially all of our revenue is derived through the sale of merchandise at the point-of-sale in our stores or when products are shipped for e-commerce orders. Revenue is recognized net of estimated sales returns and sales taxes, when control of the merchandise is transferred to the customer. We estimate sales returns based on historical data.

Changes to our contract liabilities, which are included in accrued liabilities in our condensed consolidated balance sheets, were as follows (in thousands):

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended March 31,** | **Six Months Ended March 31,** |
|  | **2026** | **2025** |
| Beginning Balance | $10027 | $11493 |
| &nbsp;&nbsp;Loyalty points and gift cards issued but not redeemed, net of estimated breakage | 5071 | 4545 |
| &nbsp;&nbsp;Revenue recognized from beginning liability | (5594) | (4618) |
| Ending Balance | $9504 | $11420 |

---

See Note 12, *Segment Reporting*, for additional information regarding the disaggregation of our sales revenue.

**4. Fair Value Measurements**

We measure on a recurring basis and disclose the fair value of our financial instruments under the provisions of ASC Topic 820, *Fair Value Measurement*, as amended ("ASC 820"). We define "fair value" as the price that would be received to sell an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date. ASC 820 establishes a three-level hierarchy for measuring fair value and requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. This valuation hierarchy is based upon the transparency of inputs used in the valuation of an asset or liability on the measurement date.

The three levels of that hierarchy are defined as follows:

Level 1 - Quoted prices are available in active markets for identical assets or liabilities;

Level 2 - Pricing inputs are other than quoted prices in active markets, included in Level 1, that are either directly or indirectly observable; and

Level 3 - Unobservable pricing inputs in which little or no market activity exists, therefore requiring an entity to develop its own model with estimates and assumptions.

Financial instruments measured at fair value on recurring basis

Consistent with the fair value hierarchy, we categorized our financial assets and liabilities as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **(in thousands)** | **Classification** | **Fair Value Hierarchy Level** | **March 31,<br>2026** | **September 30,<br>2025** |
| **Financial Assets:** |  |  |  |  |
| &nbsp;&nbsp;Foreign exchange contracts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Designated cash flow hedges | Other current assets | Level 2 | $64 | $87 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-designated cash flow hedges | Other current assets | Level 2 | 735 | 570 |
| &nbsp;&nbsp;Interest rate swap | Other assets | Level 2 |  | 59 |
| Total assets |  |  | $799 | $716 |
| . |  |  |  |  |
| **Financial Liabilities:** |  |  |  |  |
| &nbsp;&nbsp;Foreign exchange contracts |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Designated cash flow hedges | Accrued liabilities | Level 2 | $351 | $57 |
| &nbsp;&nbsp;&nbsp;&nbsp;Non-designated cash flow hedges | Accrued liabilities | Level 2 | 379 | 225 |
| &nbsp;&nbsp;Interest rate swap | Other Liabilities | Level 2 | 6 |  |
| Total liabilities |  |  | $736 | $282 |

---

The fair value of each asset and liability was determined using widely accepted valuation techniques, including discounted cash flow analyses and observable inputs, such as market interest rates and foreign exchange rates.

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Other fair value disclosures

The carrying amounts, if any, of cash equivalents, trade and other accounts receivable, accounts payable, and borrowings under our $500 million asset-based senior secured loan facility (the "ABL Facility") approximate their respective fair values due to the short-term nature of these financial instruments. The carrying amounts and corresponding estimated fair values of our long-term debt, excluding debt issuance costs and original issue discounts, are as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | **Fair Value** | **March 31, 2026** | **March 31, 2026** | **September 30, 2025** | **September 30, 2025** |
| **(in thousands)** | **Hierarchy Level** | **Carrying Value** | **Fair Value** | **Carrying Value** | **Fair Value** |
| Long-term debt |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Senior notes due 2032 | Level 2 | $600000 | $612000 | $600000 | $622500 |
| &nbsp;&nbsp;&nbsp;&nbsp;Term loan B due 2030 | Level 2 | 235000 | 234413 | 275000 | 276375 |
| Total long-term debt |  | $835000 | $846413 | $875000 | $898875 |

---

The fair value of our senior notes was determined using unadjusted quoted market prices. The fair value of our Term Loan B agreement was determined using unadjusted quoted market prices for similar debt securities in active markets.

**5. Stockholders' Equity** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Share Repurchases*

In August 2017, our Board of Directors (the "Board") approved a share repurchase program authorizing us to repurchase up to $1.0 billion of our common stock, subject to certain limitations governed by our debt agreements. In May 2025, our Board approved a term extension of our share repurchase program to September 30, 2029. Under this extension the Company is authorized to purchase its common stock up to the amount remaining under the Board's 2017 authorization. As of March 31, 2026, we had approximately $421.3 million of additional share repurchase authorizations remaining under our share repurchase program. For the three and six months ended March 31, 2026, we repurchased 1.7 million shares and 3.0 million shares of our common stock at a total cost of $25.4 million and $46.0 million, respectively, excluding the impact of excise taxes. For the three and six months ended March 31, 2025, we repurchased 1.1 million shares and 1.8 million shares of our common stock at a total cost of $10.0 million and $20.0 million, respectively, excluding the impact of excise taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Accumulated Other Comprehensive Loss*

The change in accumulated other comprehensive loss ("AOCL") was as follows (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Foreign Currency Translation Adjustments** | **Interest Rate Swap** | **Foreign Exchange Contracts** | **Total** |
| Balance at September 30, 2025 | $(104329) | $84 | $(603) | $(104848) |
| &nbsp;&nbsp;&nbsp;&nbsp;Other comprehensive income (loss) before <br>&nbsp;&nbsp;&nbsp;&nbsp;reclassification, net of tax | (4692) | 55 | (371) | (5008) |
| &nbsp;&nbsp;&nbsp;&nbsp;Reclassification to net earnings, net of tax |  | (104) | 418 | 314 |
| Balance at March 31, 2026 | $(109021) | $35 | $(556) | $(109542) |

---

The tax impacts for the changes in other comprehensive income (loss) and the reclassifications to net earnings were not material.

**6. Weighted-Average Shares**

The following table presents a reconciliation of basic and diluted weighted-average shares (in thousands):

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Six Months Ended<br>March 31,** | **Six Months Ended<br>March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| Weighted-average basic shares | 96727 | 101614 | 97271 | 101820 |
| Dilutive securities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Stock option and stock award programs | 2994 | 2821 | 2994 | 2862 |
| Weighted-average diluted shares | 99721 | 104435 | 100265 | 104682 |
| Anti-dilutive options excluded from our computation of diluted shares | 1251 | 1528 | 1251 | 1528 |

---

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**7. Property and Equipment, Net**

In October 2024, we sold our corporate headquarters located in Denton, Texas to Denton County, Texas for $45.5 million, excluding $1.5 million in closing costs. As a result of the sale, we recognized a gain of approximately $26.6 million within selling, general and administrative expenses in our condensed consolidated statements of earnings for the six months ended March 31, 2025.

**8. Goodwill and Intangible Assets**

As of January 31, 2026, we completed our annual assessments for impairment of goodwill and indefinite-lived intangible assets. For our goodwill testing, we performed a qualitative analysis and determined that there was no indication of impairment. For our indefinite-lived intangible asset assessment, we performed a quantitative analysis and determined that there was no impairment. No impairment losses were recognized in the current or prior periods presented in connection with our goodwill. In the prior year, we recognized a $1.8 million impairment loss in selling, general, and administrative expenses related to a trade name within the Sally reporting segment.

Goodwill allocated to our Sally and BSG reporting units, which are also defined as our Sally and BSG segments, was $89.8 million and $449.2 million, respectively, as of March 31, 2026. For the six months ended March 31, 2026, changes in goodwill reflect the effects of foreign currency exchange rates of $1.6 million.

The following table presents our amortization expense for the period (in thousands):

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended<br>March 31,** | **Three Months Ended<br>March 31,** | **Six Months Ended<br>March 31,** | **Six Months Ended<br>March 31,** |
|  | **2026** | **2025** | **2026** | **2025** |
| Intangible assets amortization expense | $653 | $841 | $1305 | $1699 |

---

**9. Accrued Liabilities**

Accrued liabilities consist of the following (in thousands):

---

| | | |
|:---|:---|:---|
|  | **March 31,<br>2026** | **September 30,<br>2025** |
| Compensation and benefits | $73927 | $85058 |
| Deferred revenue | 14443 | 14195 |
| Rental obligations | 11700 | 10286 |
| Accrued freight | 7733 | 8761 |
| Insurance reserves | 7153 | 7331 |
| Interest payable | 3780 | 3819 |
| Operating accruals and other | 51064 | 55191 |
| Total accrued liabilities | $169800 | $184641 |

---

**10. Short-term and Long-term Debt**

At March 31, 2026, there were no outstanding borrowings under our ABL Facility, and we had $482.3 million available for borrowing, including under our Canadian sub-facility, subject to a borrowing base limitation, as reduced by outstanding letters of credit.

During the three and six months ended March 31, 2026, we voluntarily repaid $19.0 million and $38.0 million, respectively, of outstanding Term Loan B principal in addition to our mandatory quarterly payment. In connection with the voluntary repayments, we recognized a $0.1 million loss and a $0.3 million loss on debt extinguishment within interest expense related to unamortized debt issuance costs for the three and six months ended March 31, 2026, respectively.

**11. Derivative Instruments and Hedging Activities**

During the six months ended March 31, 2026, we did not purchase or hold any derivative instruments for trading or speculative purposes. See Note 4, *Fair Value Measurements*, for the classification and fair value of our derivative instruments.

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**Designated Cash Flow Hedges**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Foreign Currency Forwards*

We regularly enter into foreign currency forwards to mitigate our exposure to exchange rate changes on forecasted inventory purchases in U.S. dollars by our foreign subsidiaries. At March 31, 2026, we held forwards, which expire ratably through September 30, 2026, with a notional amount, based upon exchange rates at March 31, 2026, as follows (in thousands):

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| | |
|:---|:---|
| **Notional Currency** | **Notional Amount** |
| Mexican Peso | $9548 |
| Canadian Dollar | 4469 |
| &nbsp;&nbsp;Total | $14017 |

---

The changes in fair value related to these foreign currency forwards are recorded quarterly into AOCL. As the forwards are exercised, the realized gains or losses are recognized into cost of goods sold ("COGS"), based on inventory turns, in our condensed consolidated statements of earnings. For the three months ended March 31, 2026 and 2025, we recognized a net loss of $0.2 million and a net gain of $0.3 million, respectively. For the six months ended March 31, 2026 and 2025, we recognized a net loss of $0.5 million and a net gain of $0.1 million, respectively. Based on March 31, 2026, valuations and exchange rates, we expect to reclassify a net gain of approximately $0.4 million out of AOCL and into COGS over the next 12 months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Interest Rate Swap*

In April 2023, we entered into a three-year interest rate swap agreement with an initial notional amount of $200 million (the "Interest Rate Swap") to mitigate the exposure to higher interest rates in connection with our Term Loan B due in 2030. The Interest Rate Swap involves fixed monthly payments at the contract rate of 3.705%, and in return, we will receive a floating interest payment based on the 1-month Adjusted Term SOFR Rate. The Interest Rate Swap will mature in April 2026 and is designated as a cash flow hedge. Changes in the fair value of the Interest Rate Swap are recorded quarterly, net of income tax, and included in AOCL.

Each month, we recognize either income or expense, based on the position of the interest rates, into interest expense on our condensed consolidated statements of earnings related to the Interest Rate Swap. For the three months ended March 31, 2026 and 2025, we recognized expense of $0.1 million and income of $0.4 million, respectively. For the six months ended March 31, 2026 and 2025, we recognized income of $0.1 million and $0.9 million, respectively. At March 31, 2026, we expect to reclassify a net loss of approximately $0.1 million out of AOCL and into interest expense over the next 12 months.

**Non-Designated Derivative Instruments**

We also use foreign exchange forward contracts to mitigate our exposure to exchange rate fluctuations related to certain intercompany balances that are not considered permanently invested. At March 31, 2026, we held forward contracts, which mature at various dates during the first month of each of the next two fiscal quarters, with a notional amount, based upon exchange rates at March 31, 2026, as follows (in thousands):

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| | |
|:---|:---|
| **Notional Currency** | **Notional Amount** |
| British Pound | $48308 |
| Euro | 18024 |
| Canadian Dollar | 11643 |
| Mexican Peso | 1715 |
| &nbsp;&nbsp;Total | $79690 |

---

Changes in the fair value of the forward contracts, as well as realized gains or losses upon settlement, are recorded in selling, general and administrative expenses. For the three months ended March 31, 2026 and 2025, the effects of these foreign exchange contracts on our condensed consolidated financial statements were a net gain of $0.4 million and a loss of $0.7 million, respectively. For the six months ended March 31, 2026 and 2025, the effects of these foreign exchange contracts on our condensed consolidated financial statements were net gains of $0.1 million and $1.0 million, respectively.

**12. Segment Reporting**

Our business is organized into two reportable segments: (i) Sally, a domestic and international chain of retail stores and digital platforms that offers professional beauty supplies to both salon professionals and retail customers primarily in North America, including Puerto Rico, and parts of Europe and South America and, (ii) BSG, including its franchise-based business Armstrong McCall, a full service distributor of beauty products and supplies that offers professional beauty products directly to salons and salon professionals through its professional-only stores, its own sales force, and digital platforms in partially exclusive geographical territories in the U.S., including Puerto Rico, and Canada.

Our Chief Operating Decision Maker ("CODM"), whom we have determined to be our Chief Executive Officer, regularly evaluates

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the performance of our reportable segments by comparing current segment operating earnings to comparable prior periods and forecasted amounts. Included within segment operating earnings, the significant expense categories below are regularly provided to the CODM.

***Segment Operating Performance***

The following tables summarize our results for the three and six months ended March 31, 2026 and 2025 (in thousands):

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **`** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2026** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** | **Three Months Ended March 31, 2025** |
|  | **Sally** | **BSG** | **Total** | **Sally** | **BSG** | **Total** |
| Net sales <sup>(a)</sup> | $521236 | $382146 | $903382 | $500575 | $382571 | $883146 |
| Less: <sup>(b)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;Cost of goods sold | 201904 | 225706 | 427610 | 194178 | 230151 | 424329 |
| &nbsp;&nbsp;Selling, general, and administrative expenses | 241183 | 109072 | 350255 | 229092 | 108486 | 337578 |
| Segment operating earnings | 78149 | 47368 | 125517 | 77305 | 43934 | 121239 |
| &nbsp;&nbsp;Unallocated expenses <sup>(c)</sup> |  |  | 53586 |  |  | 51866 |
| &nbsp;&nbsp;Interest expense |  |  | 14165 |  |  | 16289 |
| Earnings before provision for income taxes |  |  | $57766 |  |  | $53084 |

---

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **`** | **Six Months Ended March 31, 2026** | **Six Months Ended March 31, 2026** | **Six Months Ended March 31, 2026** | **Six Months Ended March 31, 2025** | **Six Months Ended March 31, 2025** | **Six Months Ended March 31, 2025** |
|  | **Sally** | **BSG** | **Total** | **Sally** | **BSG** | **Total** |
| Net sales <sup>(a)</sup> | $1052837 | $793713 | $1846550 | $1026021 | $795020 | $1821041 |
| Less: <sup>(b)</sup> |  |  |  |  |  |  |
| &nbsp;&nbsp;Cost of goods sold | 415563 | 471956 | 887519 | 406368 | 479016 | 885384 |
| &nbsp;&nbsp;Selling, general, and administrative expenses | 481228 | 220482 | 701710 | 462474 | 221601 | 684075 |
| Segment operating earnings | 156046 | 101275 | 257321 | 157179 | 94403 | 251582 |
| &nbsp;&nbsp;Unallocated expenses <sup>(c)</sup> |  |  | 109455 |  |  | 81889 |
| &nbsp;&nbsp;Interest expense |  |  | 28785 |  |  | 33731 |
| Earnings before provision for income taxes |  |  | $119081 |  |  | $135962 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)There were no intersegment sales between our segments, nor did any single customer account for 10% or more of revenue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Unallocated expenses consist of corporate and shared costs, including certain costs associated with our Fuel for Growth initiative, and are included in selling, general and administrative expenses in our condensed consolidated statements of earnings. For the six months ended March 31, 2025, unallocated expenses included a $26.6 million gain related to the sale of our corporate headquarters. See Note 7, *Property and Equipment, Net*, for more information.

***Other Segment Disclosures***

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Six Months Ended March 31,** | **Six Months Ended March 31,** |
| ***(in thousands)*** | **2026** | **2025** | **2026** | **2025** |
| Depreciation and amortization: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sally | $14306 | $14074 | $27738 | $28732 |
| &nbsp;&nbsp;&nbsp;&nbsp;BSG | 9006 | 9765 | 17680 | 18252 |
| &nbsp;&nbsp;&nbsp;&nbsp;Unallocated | 1968 | 1520 | 3494 | 3940 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total | $25280 | $25359 | $48912 | $50924 |

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***Disaggregation of net sales by segment***

The following tables disaggregate our segment revenues by merchandise category.

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Six Months Ended March 31,** | **Six Months Ended March 31,** |
| **Sally** | **2026** | **2025** | **2026** | **2025** |
| Hair color | 45.1% | 42.3% | 44.0% | 41.3% |
| Hair care | 21.5% | 23.6% | 21.8% | 23.7% |
| Styling tools and supplies | 16.1% | 16.2% | 16.7% | 16.8% |
| Nail | 9.9% | 10.0% | 9.9% | 10.0% |
| Skin and cosmetics | 7.1% | 7.4% | 7.3% | 7.6% |
| Other beauty items | 0.3% | 0.5% | 0.3% | 0.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 100.0% | 100.0% | 100.0% | 100.0% |

---

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Six Months Ended March 31,** | **Six Months Ended March 31,** |
| **BSG** | **2026** | **2025** | **2026** | **2025** |
| Hair color | 43.8% | 42.8% | 42.7% | 41.4% |
| Hair care | 40.8% | 40.9% | 41.8% | 41.9% |
| Styling tools and supplies | 10.1% | 10.5% | 10.1% | 10.6% |
| Skin and cosmetics | 2.9% | 3.4% | 3.2% | 3.6% |
| Nail | 2.1% | 2.2% | 2.0% | 2.3% |
| Other beauty items | 0.3% | 0.2% | 0.2% | 0.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;Total | 100.0% | 100.0% | 100.0% | 100.0% |

---

The following tables disaggregate our segment revenue by sales channels:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Six Months Ended March 31,** | **Six Months Ended March 31,** |
| **Sally** | **2026** | **2025** | **2026** | **2025** |
| Company-operated stores | 90.3% | 91.8% | 90.4% | 92.0% |
| E-commerce | 9.7% | 8.2% | 9.6% | 8.0% |
| &nbsp;&nbsp;Total | 100.0% | 100.0% | 100.0% | 100.0% |

---

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| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Six Months Ended March 31,** | **Six Months Ended March 31,** |
| **BSG** | **2026** | **2025** | **2026** | **2025** |
| Company-operated stores | 69.3% | 69.3% | 69.3% | 69.4% |
| E-commerce | 14.9% | 13.9% | 14.8% | 14.0% |
| Salon business consultants | 8.4% | 9.3% | 8.5% | 9.5% |
| Franchise stores | 7.4% | 7.5% | 7.4% | 7.1% |
| &nbsp;&nbsp;Total | 100.0% | 100.0% | 100.0% | 100.0% |

---

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**Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations** 

This section discusses management's view of the financial condition, results of operations and cash flows of Sally Beauty for the periods covered by this Quarterly Report. This section should be read in conjunction with the information contained in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, including the Risk Factors sections therein, and information contained elsewhere in this Quarterly Report, including the condensed consolidated interim financial statements and notes to those financial statements.

**Financial Summary for the Three Months Ended March 31, 2026** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Consolidated net sales for the three months ended March 31, 2026, increased $20.2 million, or 2.3%, to $903.4 million, compared to the three months ended March 31, 2025. Consolidated net sales included a positive impact from changes in foreign currency exchange rates of $12.8 million;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Consolidated comparable sales were 1.3% for the three months ended March 31, 2026;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Consolidated gross profit for the three months ended March 31, 2026, increased $17.0 million, or 3.7%, to $475.8 million, compared to the three months ended March 31, 2025. Consolidated gross margin increased 70 bps to 52.7% for the three months ended March 31, 2026, compared to the three months ended March 31, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Consolidated operating earnings for the three months ended March 31, 2026, increased $2.6 million, or 3.7%, to $71.9 million, compared to the three months ended March 31, 2025. Operating margin increased 10 bps to 8.0% for the three months ended March 31, 2026, compared to the three months ended March 31, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•For the three months ended March 31, 2026, our consolidated net earnings increased $3.5 million, or 8.9%, to $42.7 million, compared to the three months ended March 31, 2025;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•For the three months ended March 31, 2026, our diluted earnings per share was $0.43 compared to $0.38 for the three months ended March 31, 2025; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•Cash provided by operations was $73.3 million for the three months ended March 31, 2026, compared to $51.1 million for the three months ended March 31, 2025.

**Comparable Sales**

We believe that comparable sales is an appropriate performance indicator to measure our sales growth compared to the prior period. 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 from e-commerce revenue. Additionally, comparable sales include sales to franchisees and full service sales. Our comparable sales excludes 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. Our calculation of comparable sales might not be the same as other retailers as the calculation varies across the retail industry.

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**Overview**

***Key Operating Metrics***

The following table sets forth, for the periods indicated, information concerning key measures on which we rely to evaluate our operating performance (dollars in thousands):

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Three Months Ended March 31,** | **Six Months Ended March 31,** | **Six Months Ended March 31,** | **Six Months Ended March 31,** | **Six Months Ended March 31,** |
|  | **2026** | **2025** | **Increase (Decrease)** | **Increase (Decrease)** | **2026** | **2025** | **Increase (Decrease)** | **Increase (Decrease)** |
| Net sales: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sally | $521236 | $500575 | $20661 | 4.1% | $1052837 | $1026021 | $26816 | 2.6% |
| &nbsp;&nbsp;&nbsp;&nbsp;BSG | 382146 | 382571 | (425) | (0.1)% | 793713 | 795020 | (1307) | (0.2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated | $903382 | $883146 | $20236 | 2.3% | $1846550 | $1821041 | $25509 | 1.4% |
| Gross profit: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sally | $319332 | $306397 | $12935 | 4.2% | $637274 | $619653 | $17621 | 2.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;BSG | 156440 | 152420 | 4020 | 2.6% | 321757 | 316004 | 5753 | 1.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated | $475772 | $458817 | $16955 | 3.7% | $959031 | $935657 | $23374 | 2.5% |
| Segment gross margin: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sally | 61.3% | 61.2% | 10 | bps | 60.5% | 60.4% | 10 | bps |
| &nbsp;&nbsp;&nbsp;&nbsp;BSG | 40.9% | 39.8% | 110 | bps | 40.5% | 39.7% | 80 | bps |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated | 52.7% | 52.0% | 70 | bps | 51.9% | 51.4% | 50 | bps |
| Net earnings: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;Segment operating earnings: |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sally | $78149 | $77305 | $844 | 1.1% | $156046 | $157179 | $(1133) | (0.7)% |
| &nbsp;&nbsp;&nbsp;&nbsp;BSG | 47368 | 43934 | 3434 | 7.8% | 101275 | 94403 | 6872 | 7.3% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Segment operating earnings | 125517 | 121239 | 4278 | 3.5% | 257321 | 251582 | 5739 | 2.3% |
| Unallocated expenses <sup>(a)</sup> | 53586 | 51866 | 1720 | 3.3% | 109455 | 81889 | 27566 | 33.7% |
| &nbsp;&nbsp;Consolidated operating earnings | 71931 | 69373 | 2558 | 3.7% | 147866 | 169693 | (21827) | (12.9)% |
| Interest expense | 14165 | 16289 | (2124) | (13.0)% | 28785 | 33731 | (4946) | (14.7)% |
| &nbsp;&nbsp;Earnings before provision for income taxes | 57766 | 53084 | 4682 | 8.8% | 119081 | 135962 | (16881) | (12.4)% |
| Provision for income taxes | 15071 | 13874 | 1197 | 8.6% | 30829 | 35739 | (4910) | (13.7)% |
| &nbsp;&nbsp;Net earnings | $42695 | $39210 | $3485 | 8.9% | $88252 | $100223 | $(11971) | (11.9)% |
|  | . |  |  |  |  |  |  |  |
| Comparable sales growth (decline): | Comparable sales growth (decline): |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sally | 2.5% | (0.3)% | 280 | bps | 1.3% | 0.8% | 50 | bps |
| &nbsp;&nbsp;&nbsp;&nbsp;BSG | (0.3)% | (2.7)% | 240 | bps | (0.2)% | (0.6)% | 40 | bps |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated | 1.3% | (1.3)% | 260 | bps | 0.6% | 0.2% | 40 | bps |
| Number of stores at end-of-period (including franchises): | Number of stores at end-of-period (including franchises): | Number of stores at end-of-period (including franchises): |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Sally | 3079 | 3117 | (38) | (1.2)% |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;BSG | 1320 | 1329 | (9) | (0.7)% |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Consolidated | 4399 | 4446 | (47) | (1.1)% |  |  |  |  |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Unallocated expenses consist of corporate and shared costs and are included in selling, general and administrative expenses in our condensed consolidated statements of earnings. Additionally, unallocated expenses include certain costs associated with our Fuel for Growth initiative as well as the $26.6 million gain related to the sale of our corporate headquarters during the six months ended March 31, 2025. See Note 7, *Property and Equipment, Net*, for more information related to the sale of our corporate headquarters.

------

**Results of Operations**

***The Three Months Ended March 31, 2026, compared to the Three Months Ended March 31, 2025***

***Net Sales*** 

*<u>Sally</u>*<u>.</u> The increase in net sales for Sally was primarily driven by the following (in thousands):

---

| | |
|:---|:---|
| Comparable sales | $12498 |
| Sales outside comparable sales <sup>(a)</sup> | (3323) |
| Foreign currency exchange | 11486 |
| Total | $20661 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Includes closed stores, net of stores opened for less than 14 months.

Sally's net sales increase was primarily driven by an increase in comparable sales and positive impacts from foreign exchange rates, partially offset by net stores closed during the past twelve months. The increase in comparable sales was primarily driven by strong growth in hair color and digital marketplaces, partially offset by softness in our hair care category and the strategic exit of the majority of our full service operations across Europe. Sally's comparable sales reflect increases in our number of transactions and average unit retail.

*<u>BSG</u>*<u>.</u> The decrease in net sales for BSG was primarily driven by the following (in thousands):

---

| | |
|:---|:---|
| Comparable sales | $(1118) |
| Sales outside comparable sales <sup>(a)</sup> | (660) |
| Foreign currency exchange | 1353 |
| Total | $(425) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Includes closed stores, net of stores opened for less than 14 months and sales from acquired stores.

BSG's net sales decrease was primarily from a decrease in comparable sales, partially offset by positive impacts from foreign exchange rates. The decrease in comparable sales was driven by external factors that impacted stylist purchasing behavior, partially offset by strong performance in our color category. BSG's comparable sales were slightly down with a decrease in the average number of units per transaction, offset by a higher average unit retail.

***Gross Profit*** 

*<u>Sally</u>*<u>.</u> Sally's gross profit increased for the three months ended March 31, 2026, as a result of an increase in net sales and a higher gross margin on units sold. Sally's gross margin improvement was driven primarily by higher product margins, resulting from benefits from our Fuel for Growth initiative, partially offset by impacts of the write-off of certain inventory related to the strategic exit of the majority of all our low-margin full service operations in Europe in connection with our Fuel for Growth initiative.

*<u>BSG</u>*<u>.</u> BSG's gross profit increased for the three months ended March 31, 2026, as a result of a higher gross margin on units sold, partially offset by a decrease in net sales. BSG's gross margin improvement was driven by higher product margins, resulting from benefits from our Fuel for Growth initiative.

***Selling, General and Administrative Expenses***

*<u>Sally</u>*<u>.</u> Sally's selling, general and administrative expenses increased $12.1 million, or 5.3%, for the three months ended March 31, 2026, and included an unfavorable impact from foreign exchange rates of $5.5 million. As a percentage of Sally net sales, selling, general and administrative expenses for the three months ended March 31, 2026, were 46.3%, compared to 45.8% for the three months ended March 31, 2025. The increase as a percentage of sales was primarily due to increased labor and other compensation-related expenses, higher commission costs from digital marketplaces, and higher rent and advertising expenses, partially offset by leveraging as a result of higher net sales, impacts of an impairment charge related to a trade name (non-cash expense of $1.8 million) in the prior year, and Fuel for Growth benefits.

*<u>BSG</u>*<u>.</u> BSG's selling, general and administrative expenses increased $0.6 million, or 0.5%, for the three months ended March 31, 2026. As a percentage of BSG net sales, selling, general and administrative expenses for the three months ended March 31, 2026, were 28.5% compared to 28.4% for the three months ended March 31, 2025. The increase as a percentage of sales was primarily due to higher labor and other compensation-related expenses and rent expense, partially offset by lower depreciation and amortization expenses.

*<u>Unallocated.</u>* Unallocated selling, general and administrative expenses, which represent certain corporate costs that have not been charged to our reporting segments, increased $1.7 million, or 3.3%, for the three months ended March 31, 2026, primarily due to an increased labor and other compensation-related expenses, higher information technology expense, and higher facility expenses related to our new corporate headquarters, partially offset by lower expenses related to our Fuel for Growth initiative.

------

***Interest Expense***

The decrease in interest expense was primarily a result of a lower average outstanding principal balance on our Term Loan B. See Note 10, *Short-term and Long-term Debt*, in Item 1 of this quarterly report for more information on our debt.

***Provision for Income Taxes***

The effective tax rate was 26.1% for the three months ended March 31, 2026 and 2025. The effective tax rate remained unchanged, primarily due to a decrease related to foreign operations in the current quarter, offset by the unfavorable tax impact of executive compensation.

***The Six Months Ended March 31, 2026, compared to the Six Months Ended March 31, 2025***

***Net Sales*** 

*<u>Sally</u>*<u>.</u> The increase in net sales for Sally was primarily driven by the following (in thousands):

---

| | |
|:---|:---|
| Comparable sales | $13077 |
| Sales outside comparable sales <sup>(a)</sup> | (6118) |
| Foreign currency exchange | 19857 |
| Total | $26816 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Includes closed stores, net of stores opened for less than 14 months.

Sally's net sales increase was primarily driven by positive impacts from foreign exchange rates and an increase in comparable sales, partially offset by net stores closed during the past twelve months. The increase in comparable sales was primarily driven by strong growth in hair color and digital marketplaces, partially offset by external factors that impacted consumer spending, including the U.S. government shutdown during the beginning of our fiscal year, softness in our hair care category, and the strategic exit of the majority of our full service operations across Europe. Sally's comparable sales reflect increases in our average unit retail and number of transactions, partially offset by fewer average number of units per transaction.

*<u>BSG</u>*<u>.</u> The decrease in net sales for BSG was primarily driven by the following (in thousands):

---

| | |
|:---|:---|
| Comparable sales | $(1870) |
| Sales outside comparable sales <sup>(a)</sup> | (932) |
| Foreign currency exchange | 1495 |
| Total | $(1307) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Includes closed stores, net of stores opened for less than 14 months and sales from acquired stores.

BSG's net sales decrease was primarily from a decrease in comparable sales. The decrease in comparable sales was driven by external factors that impacted stylist purchasing behavior, including the U.S. government shutdown during the beginning of our fiscal year, partially offset by strong performance in our color category. BSG's comparable sales decrease was primarily a result of a decrease in the number of transactions and average number of units per transaction, partially offset by an increase in average unit retail.

***Gross Profit*** 

*<u>Sally</u>*<u>.</u> Sally's gross profit increased for the six months ended March 31, 2026, as a result of an increase in net sales and a higher gross margin on units sold. Sally's gross margin improvement was driven primarily by higher product margins, resulting from benefits from our Fuel for Growth initiative, partially offset by impacts of the write-off of certain inventory related to the strategic exit of the majority of our low-margin full service operations in Europe in connection with our Fuel for Growth initiative.

*<u>BSG</u>*<u>.</u> BSG's gross profit increased for the six months ended March 31, 2026, as a result of a higher gross margin on units sold, partially offset by a decrease in net sales. BSG's gross margin improvement was driven by higher product margins, resulting from benefits from our Fuel for Growth initiative.

***Selling, General and Administrative Expenses***

*<u>Sally</u>*<u>.</u> Sally's selling, general and administrative expenses increased $18.8 million, or 4.1%, for the six months ended March 31, 2026, and included an unfavorable impact from foreign exchange rates of $3.5 million. As a percentage of Sally net sales, selling, general and administrative expenses for the six months ended March 31, 2026, were 45.7%, compared to 45.1% for the six months ended March 31, 2025. The increase as a percentage of sales was primarily due to higher labor and other compensation-related expenses, higher commission costs from digital marketplaces, and higher rent and advertising expenses, partially offset by leveraging as a result of higher net sales, impacts of an impairment charge related to a trade name (non-cash expense of $1.8 million) in the prior year, and Fuel for Growth benefits.

------

*<u>BSG</u>*<u>.</u> BSG's selling, general and administrative expenses decreased $1.1 million, or 0.5%, for the six months ended March 31, 2026. As a percentage of BSG net sales, selling, general and administrative expenses for the six months ended March 31, 2026, were 27.8% compared to 27.9% for the six months ended March 31, 2025. The decrease as a percentage of sales was primarily due to lower depreciation and amortization expenses, partially offset by higher labor and other compensation-related expenses and rent expense.

*<u>Unallocated.</u>* Unallocated selling, general and administrative expenses, which represent certain corporate costs that have not been charged to our reporting segments, increased $27.6 million or 33.7%, for the six months ended March 31, 2026, primarily due to a $26.6 million gain on the sale of our corporate headquarters in the prior year, higher facility expenses related to our new corporate headquarters, higher labor and other compensation-related expenses, and an increase in information technology expenses, partially offset by lower costs in connection with our Fuel for Growth initiative.

***Interest Expense***

The decrease in interest expense was primarily a result of a lower average outstanding principal balance on our Term Loan B. See Note 10, *Short-term and Long-term Debt*, in Item 1 of this quarterly report for more information on our debt.

***Provision for Income Taxes***

The effective tax rates were 25.9% and 26.3% for the six months ended March 31, 2026 and 2025, respectively. The decrease in the effective tax rate was primarily attributable to foreign operations and a more favorable tax impact of share-based compensation in the current year, offset by higher federal tax credits in the prior year.

**Liquidity and Capital Resources**

***Overview***

Our principal sources of liquidity are cash from operations, cash and cash equivalents and borrowings under our ABL Facility. A substantial portion of our liquidity needs arise from funding the costs of our operations, working capital, capital expenditures, debt interest and principal payments. Additionally, under our share repurchase program (see below for more details) we will from time to time repurchase shares of our common stock on the open market to return value to our shareholders. At March 31, 2026, we had $639.7 million of available liquidity, which includes $482.3 million available for borrowing under our ABL Facility and cash and cash equivalents of $157.4 million.

Our working capital (current assets less current liabilities) increased $13.8 million, to $739.3 million at March 31, 2026, compared to $725.5 million at September 30, 2025. The increase was primarily driven by the timing of accrued compensation and benefit expenses within accrued expenses and an increase in cash and cash equivalents, partially offset by the timing of landlord receivables related to our new corporate headquarters within accounts receivable, other.

We anticipate that existing cash balances (excluding certain amounts permanently invested in connection with foreign operations), cash expected to be generated by operations, and funds available under our ABL Facility will be sufficient to fund our working capital and capital expenditure requirements over the next twelve months.

***Cash Flows***

---

| | | |
|:---|:---|:---|
|  | **Six Months Ended March 31,** | **Six Months Ended March 31,** |
| **(in thousands)** | **2026** | **2025** |
| Net cash provided by operating activities | $166519 | $84521 |
| Net cash (used) provided by investing activities | (64946) | 4232 |
| Net cash used by financing activities | (93416) | (103659) |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Net Cash Provided by Operating Activities*

The increase in cash provided by operating activities was primarily driven by the timing of accounts payable, an increase in cash receipts from customers, lower income taxes paid, and the receipt of landlord receivables related to our new corporate headquarters, partially offset by strategic reduction in slower moving inventory in the prior year while maintaining consistent inventory levels this year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Net Cash (Used) Provided by Investing Activities*

The change in our investing activities was a result of lapping the cash received of $44 million from the sale of our corporate headquarters in the prior year and higher capital expenditures in the current year, which includes the build out of our new corporate headquarters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Net Cash Used by Financing Activities*

The decrease in cash used by financing activities was primarily driven by lower debt repayments in the current year, partially offset by higher share repurchases under our share repurchase program.

------

***Debt and Guarantor Financial Information***

At March 31, 2026, we had $835.0 million in outstanding debt principal, excluding unamortized debt issuance costs and debt discounts, in the aggregate, of $7.9 million. Our debt consists of $600.0 million in 2032 Senior Notes outstanding, and $235.0 million remaining on our Term Loan B.

We utilize our ABL Facility for the issuance of letters of credit, certain working capital and liquidity needs, and to manage normal fluctuations in our operational cash flow. In that regard, we may from time to time draw funds under the ABL Facility for general corporate purposes including funding of capital expenditures, acquisitions, paying down other debt and share repurchases. Amounts drawn on our ABL Facility are generally paid down with cash provided by our operating activities. During the six months ended March 31, 2026, there were no borrowings under the ABL Facility.

We are currently in compliance with the agreements and instruments governing our debt, including our financial covenants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*Guarantor Financial Information*

Our 2032 Senior Notes were issued by our wholly owned subsidiaries, Sally Holdings LLC and Sally Capital Inc. (together, the "Issuers"). The notes are unsecured debt instruments guaranteed by us and certain of our wholly owned domestic subsidiaries (together, the "Guarantors") and have certain restrictions on the ability of our subsidiaries to make certain restrictive payments to Sally Beauty. The guarantees are joint and several, and full and unconditional. Certain other subsidiaries, including our foreign subsidiaries, do not serve as guarantors.

The following summarized consolidating financial information represents financial information for the Issuers and the Guarantors on a combined basis. All transactions and intercompany balances between these combined entities have been eliminated.

The following table presents the summarized balance sheets information for the Issuers and the Guarantors as of March 31, 2026, and September 30, 2025:

---

| | | |
|:---|:---|:---|
| **(in thousands)** | **March 31, 2026** | **September 30, 2025** |
| Cash and cash equivalents | $94276 | $85360 |
| Inventory | $729427 | $721975 |
| Current assets | $927458 | $927667 |
| Total assets | $2176114 | $2177968 |
| Intercompany payable | $17941 | $15117 |
| Current liabilities | $467406 | $474079 |
| Total liabilities | $1839552 | $1883754 |

---

The following table presents the summarized statement of earnings information for the Issuers and the Guarantors for the six months ended March 31, 2026 (in thousands):

---

| | |
|:---|:---|
| Net sales | $1492172 |
| Gross profit | $789221 |
| Earnings before provision for income taxes | $107642 |
| Net Earnings | $80021 |

---

***Share Repurchase Programs***

Under our current share repurchase program, we may from time to time repurchase our common stock on the open market. During the six months ended March 31, 2026 and 2025, we repurchased 3.0 million shares and 1.8 million shares of our common stock for $46.0 million and $20.0 million, respectively, under our share repurchase program, excluding the impact of excise taxes. See Note 5, *Stockholders' Equity*, for more information about our share repurchase program.

**Contractual Obligations**

Other than our debt, as discussed above, there have been no material changes outside the ordinary course of our business to our contractual obligations since September 30, 2025.

**Off-Balance Sheet Financing Arrangements**

At March 31, 2026, and September 30, 2025, we had no off-balance sheet financing arrangements other than outstanding letters of credit related to inventory purchases and self-insurance programs.

**Critical Accounting Estimates**

There have been no material changes to our critical accounting estimates or assumptions since September 30, 2025.

------

**Recent Accounting Pronouncements** 

See Note 2 of the Notes to Condensed Consolidated Financial Statements in Item 1 – "Financial Statements" in Part I – Financial Information.

------

**Item 3. Quantitative and Qualitative Disclosures About Market Risk** 

As a multinational corporation, we are subject to certain market risks including foreign currency fluctuations, interest rates and government actions. There have been no material changes to our market risks from September 30, 2025. See our disclosures about market risks contained in Item 7A. "Quantitative and Qualitative Disclosures about Market Risk" in Part II of our Annual Report on Form 10-K for the fiscal year ended September 30, 2025.

**Item 4. Controls and Procedures** 

*Controls Evaluation and Related CEO and CFO Certifications.* Our management, with the participation of our principal executive officer ("CEO") and principal financial officer ("CFO"), conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2026. The controls evaluation was conducted by our Disclosure Committee, comprised of senior representatives from our finance, accounting, internal audit, and legal departments under the supervision of our CEO and CFO.

Certifications of our CEO and our CFO, which are required in accordance with Rule 13a-14 of the Exchange Act, are attached as exhibits to this Quarterly Report. This "Controls and Procedures" section includes the information concerning the controls evaluation referred to in the certifications, and it should be read in conjunction with the certifications for a more complete understanding of the topics presented.

*Limitations on the Effectiveness of Controls.* We do not expect that our disclosure controls and procedures will prevent all errors and all fraud. A system of controls and procedures, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the system are met. Because of the limitations in all such systems, no evaluation can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. Furthermore, the design of any system of controls and procedures is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions, regardless of how unlikely. Because of these inherent limitations in a cost-effective system of controls and procedures, misstatements or omissions due to error or fraud may occur and not be detected.

*Scope of the Controls Evaluation.* The evaluation of our disclosure controls and procedures included a review of their objectives and design, our implementation of the controls and procedures and the effect of the controls and procedures on the information generated for use in this Quarterly Report. In the course of the evaluation, we sought to identify whether we had any data errors, control problems or acts of fraud and to confirm that appropriate corrective action, including process improvements, was being undertaken if needed. This type of evaluation is performed on a quarterly basis so that conclusions concerning the effectiveness of our disclosure controls and procedures can be reported in our Quarterly Reports on Form 10-Q and our Annual Reports on Form 10-K. Many of the components of our disclosure controls and procedures are also evaluated by our internal audit department, by our legal department and by personnel in our finance organization. The overall goals of these various evaluation activities are to monitor our disclosure controls and procedures on an ongoing basis and to maintain them as dynamic systems that change as conditions warrant.

*Conclusions regarding Disclosure Controls.* Based on the required evaluation of our disclosure controls and procedures, our CEO and CFO have concluded that, as of March 31, 2026, we maintain disclosure controls and procedures that are effective in providing reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to our management, including our CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

*Changes in Internal Control over Financial Reporting.* During our most recent fiscal quarter, there have been no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

------

**PART II — OTHER INFORMATION** 

**Item 1. Legal Proceedings** 

We are involved, from time to time, in various claims and lawsuits incidental to the conduct of our business in the ordinary course. We carry insurance coverage in such amounts in excess of our self-insured retention as we believe to be reasonable under the circumstances and that may or may not cover any or all of our liabilities in respect of these matters. We do not believe that the ultimate resolution of these matters will have a material adverse impact on our consolidated financial position, cash flows or results of operations.

We are subject to a number of U.S., federal, state and local laws and regulations, as well as the laws and regulations applicable in each foreign country or jurisdiction in which we do business. These laws and regulations govern, among other things, the composition, packaging, labeling and safety of the products we sell, the methods we use to sell these products and the methods we use to import these products. We believe that we are in material compliance with such laws and regulations, although no assurance can be provided that this will remain true going forward.

**Item 1A. Risk Factors** 

In addition to the other information set forth in this Quarterly Report, you should carefully consider the factors contained in Item 1A. "Risk Factors" in Part I of our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, which could materially affect our business, financial condition or future results. There have been no material changes from the risk factors disclosed in such Annual Report. The risks described in such Annual Report and herein are not the only risks facing our company.

**Item 2. Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities**

Information regarding shares of common stock we repurchased during the quarter ended March 31, 2026, excluding the impact of excise taxes, is as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fiscal Period** | **Total Number of Shares Purchased** <sup>(1)</sup> | **Average Price Paid per Share** <sup>(2)</sup> | **Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs** <sup>(1)(3)</sup> | **Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs** |
| Jan 1 - Jan 31, 2026 | 541565 | $15.38 | 541565 | $438301556 |
| Feb 1 - Feb 28, 2026 | 500967 | 15.95 | 500967 | 430310537 |
| Mar 1 - Mar 31, 2026 | 618465 | 14.61 | 618465 | 421276242 |
| &nbsp;&nbsp;&nbsp;&nbsp;Total this quarter | 1660997 | $15.26 | 1660997 | $421276242 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The table above does not include 571 shares of our common stock surrendered by grantees during the quarter to satisfy tax withholding obligations due upon the vesting of equity-based awards under our share-based compensation plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The calculation of the average price paid per share includes the impact of commissions paid in connection with the shares repurchased.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)In May 2025, our Board approved a term extension through September 30, 2029, of our share repurchase program to repurchase up to $1.0 billion of our common stock, which was originally approved in August 2017.

**Item 5. Other Information**

During the quarter ended March 31, 2026, no director or officer of the Company adopted, modified, or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement, as such terms are defined in Item 408(a) of Regulation S-K.

------

**Item 6. Exhibits**

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| 3.1 | [<u>Third Restated Certificate of Incorporation of Sally Beauty Holdings, Inc., dated January 30, 2014, which is incorporated herein by reference from Exhibit 3.3 to the Company's Current Report on Form 8-K filed on January 30, 2014</u>](https://www.sec.gov/Archives/edgar/data/0001368458/000110465914005209/a14-4521_1ex3d3.htm) |
| 3.2 | [<u>Amended and Restated By-Laws of Sally Beauty Holdings, Inc., dated July 2, 2025, which is incorporated herein by reference from Exhibit 3.1 to the Company's Current Report on Form 8-K filed on July 9, 2025</u>](https://www.sec.gov/Archives/edgar/data/1368458/000095017025094706/sbh-ex3_1.htm) |
| 10.1\* | [<u>Separation Agreement between Marlo Cormier and Sally Beauty Supply LLC, dated March 31, 2026</u>](sbh-ex10_1.htm) |
| 22\* | [<u>List of Subsidiary Guarantors</u>](sbh-ex22.htm) |
| 31.1\* | [<u>Rule 13a-14(a)/15d-14(a) Certification of Denise Paulonis</u>](sbh-ex31_1.htm) |
| 31.2\* | [<u>Rule 13a-14(a)/15d-14(a) Certification of Adrianne Lee</u>](sbh-ex31_2.htm) |
| 32.1\* | [<u>Section 1350 Certification of Denise Paulonis</u>](sbh-ex32_1.htm) |
| 32.2\* | [<u>Section 1350 Certification of Adrianne Lee</u>](sbh-ex32_2.htm) |
| 101 | The following financial information from our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2026, formatted in iXBRL (Inline Extensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets; (ii) the Condensed Consolidated Statements of Earnings; (iii) the Condensed Consolidated Statements of Comprehensive Income; (iv) the Condensed Consolidated Statements of Stockholders' Equity; (v) the Condensed Consolidated Statements of Cash Flows; and (vi) the Notes to Condensed Consolidated Financial Statements. |
| 104 | The cover page from our Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2026, formatted in iXBRL (contained in Exhibit 101). |

---

------

\* Included herewith

------

**SIGNATURES** 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  |  | SALLY BEAUTY HOLDINGS, INC. |
|  |  | (Registrant) |
| Date: May 11, 2026 |  |  |
|  | By: | /s/ Adrianne Lee |
|  |  | Adrianne Lee |
|  |  | Senior Vice President, Chief Financial Officer  |
|  |  | For the Registrant and as its Principal Financial Officer |

---

------

## Exhibit 10.1

**Exhibit 10.1**

THIS EXHIBIT HAS BEEN REDACTED AND IS THE SUBJECT OF A CONFIDENTIAL TREATMENT REQUEST. REDACTED MATERIAL IS MARKED WITH [\*\*\*]. AN UNREDACTED COPY OF THE EXHIBIT WILL BE PROMPTLY PROVIDED TO THE COMMISSION ON A SUPPLEMENTAL BASIS IF REQUESTED BY THE COMMISSION OR ITS STAFF.

**SEPARATION AGREEMENT**

This Separation Agreement (**"Agreement"**) is entered into by and between **Marlo Cormier** (**"Employee"**) and **Sally Beauty Supply LLC** (**"Employer"**).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **<u>Separation of Employment</u>**. On March 30, 2026 (the "Notice Date"), Employee and Employer discussed Employee resigning from employment with Employer effective **April 11, 2026** (the **"Separation Date"**), in order to pursue other opportunities. Employee shall perform her job duties as required by Employer between the date of this Agreement and the Separation Date. Employer may change Employee's authority to act within the duties of her role and access at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **<u>Consideration</u>**. In consideration of the release of all claims by Employee as provided for in this Agreement, and for the other agreements by Employee herein, Employer will provide Employee the following as consideration (the **"Release Consideration"**) after this Agreement's Effective Date (as defined below):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Continuation of employment through **April 11, 2026**. This will provide Employee with her normal compensation and benefits through the Separation Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Payment of the gross amount of **$881,250.00** (less any withholdings required by law or deductions authorized by the parties' previous agreement or as otherwise agreed to in this Agreement), representing **15 months'** salary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.**15 months** of continuation of health insurance through a Consolidated Omnibus Budget Reconciliation Act (COBRA) subsidy program, managed by Benefit Connect, ("COBRA Subsidy") provided you elect coverage following the directions provided in the COBRA packet that will be mailed to you following the Separation Date. You will have 60 days from the date of the COBRA packet to make elections. If you elect coverage, the COBRA subsidy will cover benefits beginning the day after the Separation Date and will end 15 month(s) later ("COBRA Subsidy Period"). Additional months of COBRA may be available after the COBRA Subsidy Period at your option and expense.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Employer will provide Employee payment of the annual bonus for Employer's fiscal year 2026, prorated based on Employee's separation date. This bonus payment will be paid at the same time that the fiscal year 2026 annual bonuses are paid under Employer's Annual Incentive Plan to active participants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.Employer will provide Employee **12 months** of outplacement services at the Elite Level through RiseSmart or an equivalent provider approved by Employer.

Employee agrees that this Release Consideration is in addition to anything of value to which Employee already is entitled.

**SEPARATION AGREEMENT PAGE 1**

**EMPLOYEE INITIALS <u>/s/ MC</u>** 

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Employee agrees that any payments under subsections a, b, c, d and e (above) are conditioned upon Employee returning any and all Employer-issued equipment and keys, including, by way of example but not limitation, laptop, iPad, printer, scanner, and/or store or facility keys.

Consideration will be provided within 30 days after the full execution of this Agreement, provided Employee does not revoke during the revocation period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **<u>Release</u>**. In consideration of the Release Consideration, Employee hereby fully, finally, and completely releases Employer and its predecessors, successors, parents, subsidiaries, affiliates, shareholders, partners, current and former officers, directors, employees, agents, attorneys and representatives (collectively, the **"Released Parties"**), from any and all claims, actions, demands, and/or causes of action, of whatever kind or character, whether now known or unknown, arising from, relating to, or in any way connected with, facts or events occurring on or before the date on which Employee executes this Agreement. **<u>Employee agrees that this Agreement includes a release of any and all employment claims, negligence claims, contractual claims, wrongful discharge claims, and claims of discrimination or retaliation of every possible kind</u>,** including but not limited to, claims on the basis of race, color, sex, sexual orientation, gender identity, national origin, religion, disability, age, whistleblower status, and claims under local, state or federal law, including, but not limited to the Americans with Disabilities Act, the Age Discrimination in Employment Act ("***ADEA***"), the National Labor Relations Act ("***NLRA***"), Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1866, the Family Medical Leave Act of 1993, the Worker Adjustment and Retraining Notification Act and similar state laws, and other federal, state or local laws relating to employment or termination of employment, any personal injury or other tort claims, and any related attorneys' fees and costs claims, if any, that Employee may have against Employer or any of the Released Parties. Employee waives and releases Employer and the Released Parties from any claims that this Agreement was procured by fraud or signed under duress or coercion so as to make any of the terms or provisions of this Agreement not binding. Employee also waives the right to become a member of any class in a case in which claims are asserted against any of the Released Parties based on acts or events occurring on or before the date on which Employee executes this Agreement. The general release in this Agreement specifically includes a release of any claims under state and local laws based on acts or events occurring on or before the date on which Employee executes this Agreement, including to the extent applicable claims under Texas Labor Code Chapters 21 and 45, the Minnesota Human Rights Act, the West Virginia Human Rights Act, the Massachusetts Wage Payment Act, the California Fair Employment & Housing Act, the California Labor Code, the California Family Rights Act, the California Constitution, the California Industrial Welfare Commission Wage Orders, and the California Government Code. If Employee resides or works in West Virginia, Employee may contact the West Virginia Bar Association at 866-989-8227 to find an attorney.

By signing this Agreement, Employee waives any claims regarding the separation of their employment with Employer and all issues and actions that preceded or related to that decision.

Employee understands that nothing in this Agreement is intended to interfere with or deter Employee's right to challenge the waiver of an ADEA claim or state law age discrimination claim or the filing of an ADEA charge or ADEA complaint or state law age discrimination complaint or charge with the Equal Employment Opportunity Commission ("***EEOC***") or any state discrimination agency or commission or to participate in any investigation or proceeding conducted by those agencies. Further, Employee understands that nothing in this Agreement would require Employee to tender back the money received under this Agreement if Employee seeks to challenge the validity of the ADEA or state law age discrimination waiver, nor does the Employee agree to ratify any ADEA or state law age discrimination waiver that fails to comply with the Older Workers' Benefit Protection Act by retaining the money received

**SEPARATION AGREEMENT PAGE 2**

**EMPLOYEE INITIALS <u>/s/ MC</u>** 

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under the Agreement. Further, nothing in this Agreement is intended to require the payment of damages, attorneys' fees or costs to Employer should Employee challenge the waiver of an ADEA or state law age discrimination claim or file an ADEA or state law age discrimination suit except as authorized by federal or state law.

Notwithstanding the above paragraph, Employee agrees to waive any right to recover monetary damages in any charge, complaint, or lawsuit against Employer filed by Employee or by anyone else on Employee's behalf, with the exception of complaints or claims made to/with the United States Securities and Exchange Commission ("***SEC***"). Nothing in this Agreement shall prevent Employee from filing a complaint or claim or communicating in any way with the SEC and obtaining any and all SEC monetary benefits/award.

Employee agrees and affirms, to the best of their knowledge, no liens of any governmental entities, including those for Medicare conditional payments, exist. Employee agrees to indemnify, defend, and hold the Released Parties harmless from Medicare claims, liens, damages, conditional payments, and rights to payment, if any, including attorneys' fees, and they further agree to waive any and all future action against the Released Parties, including but not limited to any private cause of action for damages pursuant to 42 U.S.C. § 1395y(b)(3)(A) et seq.

Without waiving any prospective or retrospective rights under the Fair Labor Standards Act ("FLSA"), Employee admits that they have received from Employer all rights and benefits, if any, potentially due to them pursuant to the FLSA. It is the parties' intent to release all claims which can legally be released but no more than that. This Agreement expressly releases claims under the False Claims Act to the fullest extent permitted by law. To the extent that a court of competent jurisdiction were to conclude that pre-filing releases of claims under the False Claims Act are not enforceable absent government knowledge of the alleged claims, the parties agree that Employee will be permitted to participate in any legal proceedings under the False Claims Act. But, Employee specifically waives any rights they may have to receive any monetary award from such proceedings.

Employee also acknowledges (i) receipt of all compensation and benefits due through the date Employee signs this Agreement as a result of services performed for Employer with the receipt of a final paycheck except as provided in this Agreement; (ii) Employee has reported to Employer in writing any and all work-related injuries incurred during employment with Employer; (iii) Employer properly provided any leave of absence because of Employee's or a family member's health condition and Employee has not been subjected to any improper treatment, conduct or actions due to a request for or taking such leave; and (iv) Employee has provided Employer with written notice of any and all concerns regarding suspected ethical and compliance issues or violations on the part of Employer or any released person or entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **<u>Release of Unknown Claims</u>.** For the purpose of implementing a full and complete release, Employee expressly acknowledges and agrees that this Agreement resolves all legal claims they may have against Released Parties as of the date of this Agreement, including but not limited to claims that they did not know or suspect to exist in their favor at the time of the effective date of this Agreement.

For employees who reside and/or work for Employer in the State of California, Employee agrees to this release of unknown claims despite the fact that California Civil Code section 1542 or other applicable law may provide otherwise. Employee expressly waives any and all rights which they may have under the provisions of California Civil Code section 1542 or any similar state or federal statute. Section 1542 provides as follows:

A general release does not extend to claims which the creditor does not know or suspect to exist in his

**SEPARATION AGREEMENT PAGE 3**

**EMPLOYEE INITIALS <u>/s/ MC</u>** 

------

or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with debtor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **<u>Confidentiality and Non-disparagement</u>**. Employee agrees to keep the terms and conditions of this Agreement confidential to the extent allowed by law, except Employee may supply a copy to Employee's accountant or other financial advisor solely in connection with preparing Employee's income tax return, and Employee may disclose this Agreement to members of Employee's immediate family and to Employee's attorney on a confidential basis. Employee also agrees to keep confidential any and all discussions, communications and documents relating to the issues and negotiations that led to this Agreement and the underlying facts, allegations, documents and communications related to any claims of discrimination Employee made during Employee's employment with Employer. Employee further agrees not to talk about or otherwise communicate to any third parties in a malicious, disparaging, or defamatory manner regarding Employer or any of the Released Parties. Employee also agrees that Employee shall not make or authorize to be made any written or oral statement that may disparage or damage the reputation of Employer.

Nothing in this paragraph or Agreement is to be construed to preclude Employee or any individual from communicating with any government agency, including the EEOC, the National Labor Relations Board ("***NLRB***"), and/or the SEC.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **<u>Confidential Information and Trade Secrets</u>.** Employee acknowledges Employee's ongoing legal and fiduciary obligations to maintain, and hereby contractually agrees to maintain, the confidentiality of Employer's confidential business-related information and trade secrets, including, but not limited to, Employer's strategy, future plans, merchandising, marketing and sales initiatives, proprietary business methods and processes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **<u>Agreement Not to Solicit or Hire Employees</u>.** For a period of 12 months after the Effective Date of this Agreement, Employee shall not, nor will Employee assist any third party to, directly or indirectly: (i) recruit, raid, solicit, or attempt to persuade any employee of the Released Parties or any person who is a current employee of Employer to leave the Employer or the Released Party or to work for one of their competitors, provided that this restriction does not apply if Employee primarily resides and works in the State of California; (ii) interfere with the performance by any such persons of their duties for Employer, provided that this restriction does not apply if Employee primarily resides and works in the State of California; or (iii) communicate with any such persons for the purposes described in items (i) and (ii) in this paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **<u>Tax Indemnification</u>.** Employee acknowledges and agrees that Employer has not made any representations to Employee regarding the tax consequences of any amounts received by Employee pursuant to this Agreement. The parties further agree that if any local, state or federal authority determines that the tax treatment for payments made under this Agreement is improper or impermissible, Employee shall be solely responsible for payment of all such taxes due, including interest and penalties, and Employee shall indemnify Employer for all such tax payments, including interest and penalties. To the extent Employer is penalized for any failure to withhold or pay taxes, Employee agrees that Employee will indemnify Employer for its costs, expenses, fees (including reasonable and necessary attorneys' fees) and/or penalties with respect to taxes or the failure to withhold.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** **<u>Cooperation</u>.** Employee agrees that they will assist and cooperate with Employer regarding any legal matters, including litigation matters that arise or continue beyond the separation of Employee's employment. Employee will not receive additional compensation for such assistance and

**SEPARATION AGREEMENT PAGE 4**

**EMPLOYEE INITIALS <u>/s/ MC</u>** 

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cooperation; however, Employer will reimburse Employee for all reasonable expenses incurred in fulfilling this obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.** **<u>Employee's Attorneys' Fees and Costs</u>.** Employee acknowledges and represents that all claims for attorneys' fees, costs, or other recoverable expenses that Employee's attorneys may hold against Employer as Employee's attorneys will be satisfied solely by Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.** **<u>Employment Reference and Verification</u>.** Employee agrees that for any employment verification or reference purposes, Employee will refer prospective employers to the third-party service entitled "The Work Number" 1-800-367-5690 or www.theworknumber.com. This online employment verification service can provide confirmation of employment and dates of employment. The relevant employer code to use is 11140. Should this service change, Employee agrees to use the third-party service then used by Employer. Employee agrees not to contact, or direct others to contact, any active employee or representative of Employer for a reference or information relating to Employee's employment with Employer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.** **<u>Advice of Counsel, Consideration and Revocation Periods, Other Information</u>.** Employer advises Employee to consult with an attorney prior to signing this Agreement. Employee has **21 days** to consider whether to sign this Agreement from the date Employee receives this Agreement (the "***Consideration Period***"). Employee must return this signed Agreement to Employer's representative set forth below within the Consideration Period or at LegalSeparation@sallybeauty.com. If Employee signs and returns this Agreement before the end of the Consideration Period, it is because Employee freely chose to do so after carefully considering its terms. Additionally, Employee shall have seven days (or fifteen days if Employee resides or works for Employer in Minnesota) from the date Employee signs this Agreement to revoke this Agreement by delivering a written notice of revocation within the seven-day (or fifteen-day) revocation period to the same person as Employee returned this Agreement. If the revocation period expires on a weekend or holiday, Employee will have until the end of the next business day to revoke. Employee agrees with Employer that changes, whether material or immaterial, do not restart the running of the Consideration Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.** **<u>Exceptions</u>. Nothing in this Agreement is intended to waive claims (i) for unemployment or workers' compensation benefits, (ii) for vested rights under ERISA-covered employee benefit plans as applicable on the date Employee signs this Agreement, (iii) that may arise after Employee signs this Agreement, or (iv) which cannot be released by private agreement. In addition, nothing in this Agreement including but not limited to the acknowledgements, release, confidentiality, non-disparagement, tax indemnification, employee's attorneys' fees and costs, and employment verification provisions, prevent Employee from filing a charge or complaint with or from participating in an investigation or proceeding conducted by the EEOC, NLRB, SEC, or any other any federal, state or local agency charged with the enforcement of any laws, or from exercising rights under Section 7 of the NLRA to engage in joint activity with other employees, although by signing this release Employee is waiving rights to individual relief based on claims asserted in such a charge or complaint, or asserted by any third-party on Employee's behalf, except where such a waiver of individual relief is prohibited and except for a benefit or remedy pursuant to Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.** **<u>Miscellaneous</u>.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.**<u>Effective Date</u>**. The **"Effective Date"** of this Agreement is the eighth (8th) day after Employee signs this Agreement (or the sixteenth (16th) day after Employee signs this

**SEPARATION AGREEMENT PAGE 5**

**EMPLOYEE INITIALS <u>/s/ MC</u>** 

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Agreement if Employee resides or works for Employer in Minnesota), provided Employee does not revoke the Agreement during the applicable revocation period set forth above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.**<u>Entire Agreement/Waiver</u>***.* This instrument sets forth the entire agreement between the parties and no representation, promise, or condition not contained herein will modify these terms except any prior agreements related to inventions, business ideas, confidentiality of corporate information, and non-competition remain intact. Any waiver of any provision of this Agreement shall not constitute a waiver of any other provision of this Agreement, unless expressly so indicated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.**<u>No Assignment</u>**. The rights under this Agreement may not be assigned by Employee, unless Employer consents in writing to said assignment. Employee represents that Employee has not assigned any of the claims related to the matters set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.**<u>No Admission of Liability</u>**. Nothing in this Agreement constitutes the admission of any liability by Employer, the Released Parties, or Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.**<u>Headings/Counterparts</u>**. All paragraph headings are indicated for convenience of reference and are not intended to have any legal effect. This Agreement may be executed in counterparts and each counterpart, when executed, shall have the efficacy of a second original. Photographic, Portable Document Format (PDF), emailed, or facsimile copies of any such signed counterparts may be used in lieu of the original for any purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.**<u>Covenant Not to Sue</u>**: Employee understands that as of the Effective Date, this Agreement will be final and binding. Employee promises not to pursue any claim that is settled by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.**<u>Read Agreement/Advice of Attorney</u>**. Employee acknowledges that Employee has read and understood this Agreement, has been advised to and has had the opportunity to discuss it with an attorney of Employee's own choice, agrees to its terms, acknowledges receipt of a copy of same and the sufficiency of the payment recited herein, and signs this Agreement voluntarily.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.**<u>Applicable Law and Severability</u>**<u>.</u> The parties agree that the terms of this Agreement are contractual in nature and not merely recitals and will be governed and construed in accordance with the laws of the State of Texas, unless state law where the Employee resides at the time of execution of this Agreement requires the law of Employee's state of residence to govern, in which case the laws of such state shall govern this Agreement. The parties further agree that should any part of this Agreement be declared or determined by a court or Government Agency of competent jurisdiction to be illegal, invalid, or unenforceable, such part shall be modified automatically to the minimum extent necessary to render this Agreement valid and enforceable. If any part of this Agreement conflicts with a mandatory provision of applicable law and cannot be modified for any reason, the conflicting part shall be severed automatically and the remainder construed to incorporate the mandatory provision. In the event of such severance or modification, the remainder shall not be affected. This Agreement shall be construed as a whole, according to its fair meaning, and not for or against any party. It is further understood and agreed that if, at any time, a violation of any term of this Agreement is asserted by any party hereto, that party shall have the right to seek specific performance of that term and/or any other necessary and proper relief, including but not limited to damages, and the prevailing party shall be entitled to recover their reasonable costs and attorneys' fees.

**SEPARATION AGREEMENT PAGE 6**

**EMPLOYEE INITIALS <u>/s/ MC</u>** 

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.**<u>409A Compliance.</u>** Notwithstanding anything in this Agreement to the contrary, the parties intend that this Agreement shall comply with Section 409A of the Internal Revenue Code of 1986 ("Section 409A") to the extent applicable, and this Agreement shall be interpreted in a manner consistent with such intent. The parties hereby recognize that it may be necessary to amend this Agreement in order to comply with the requirements of Section 409A and agree that they shall work together in good faith to amend this Agreement in a timely manner as may be required under Section 409A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j.**<u>Notice</u>**. Any notice to be given to Employer hereunder will be deemed sufficient if addressed to Employer in writing and hand-delivered or mailed by certified mail to General Counsel, Sally Beauty Holdings, Inc., 7900 Windrose Avenue, Plano, Texas 75024. Any notice to be given to Employee hereunder will be deemed sufficient if addressed to Employee in writing and hand-delivered or mailed by certified mail to Employee at Employee's last known address as shown on Employer's records.

Marlo Cormier

[\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*]

[\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*\*]

<u>/s/ MC</u> Initials

Either party may designate a different address or addresses by giving notice according to this Section.

The parties have signed this Agreement on the dates written by the signatures below. Notwithstanding any other provision in this Agreement, if Employee does not sign and deliver this Agreement to Employer at the address shown in **<u>section 14(j)</u>** above prior to the end of the Consideration Period or if Employee revokes this Agreement during the applicable revocation period set forth above, then this Agreement will be **<u>null</u>** and **<u>void</u>** and Employee will **<u>not</u>** be entitled to the Consideration described above.

[Signatures follow below.]

**<u>EMPLOYEE</u>**: **<u>EMPLOYER</u>**:

**SEPARATION AGREEMENT PAGE 7**

**EMPLOYEE INITIALS <u>/s/ MC</u>** 

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<u>/s/ Marlo Cormier</u> <u>/s/ Scott Sherman</u> 

**MARLO CORMIER SCOTT SHERMAN SVP, CHIEF LEGAL & HR OFFICER**

 **SALLY BEAUTY SUPPLY LLC**

**Employee Number: U384470** 

Date: <u>3/31/2026</u> Date: <u>3/31/2026</u> 

**SEPARATION AGREEMENT PAGE 8**

**EMPLOYEE INITIALS <u>/s/ MC</u>** 

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## Ex-22

**Exhibit 22**

**<br>LIST OF SUBSIDIARY GUARANTORS**

As of March 31, 2026, each of the following subsidiaries of Sally Beauty Holdings, Inc. is a guarantor of our unsecured 6.75% Senior Notes due 2032. The guarantees are joint and several, and full and unconditional. Sally Beauty Holdings, Inc. owns, directly or indirectly, 100% of each guarantor subsidiary.

---

| | |
|:---|:---|
| &nbsp;&nbsp;**<u>Exact Name of Registrant as Specified in Its Charter</u>** | &nbsp;&nbsp;**<u>State of Incorporation or Organization</u>** |
| &nbsp;&nbsp;Arcadia Beauty Labs LLC | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;Arcadia Beauty Labs II LLC | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;Armstrong McCall Holdings, Inc. | &nbsp;&nbsp;Texas |
| &nbsp;&nbsp;Armstrong McCall Holdings, L.L.C. | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;Armstrong McCall, L.P. | &nbsp;&nbsp;Texas |
| &nbsp;&nbsp;Armstrong McCall Management, L.C. | &nbsp;&nbsp;Texas |
| &nbsp;&nbsp;Beauty Holding LLC | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;Beauty Systems Group LLC | &nbsp;&nbsp;Virginia |
| &nbsp;&nbsp;Diorama Services Company, LLC | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;Innovations-Successful Salon Services | &nbsp;&nbsp;California |
| &nbsp;&nbsp;Loxa Beauty LLC | &nbsp;&nbsp;Indiana |
| &nbsp;&nbsp;Neka Salon Supply, Inc. | &nbsp;&nbsp;New Hampshire |
| &nbsp;&nbsp;Procare Laboratories, Inc. | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;Sally Beauty Holdings, Inc. | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;Sally Beauty International Finance LLC | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;Sally Beauty Military Supply LLC | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;Sally Beauty Supply LLC | &nbsp;&nbsp;Virginia |
| &nbsp;&nbsp;Sally Investment Holdings LLC | &nbsp;&nbsp;Delaware |
| &nbsp;&nbsp;Salon Success International, LLC | &nbsp;&nbsp;Florida |

---

------

## Exhibit 31.1

**Exhibit 31.1**

**CERTIFICATION<br>PURSUANT TO EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a),<br>AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Denise Paulonis, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026 of Sally Beauty Holdings, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: May 11, 2026 |  |  |
|  | By: | /s/ Denise Paulonis |
|  |  | Denise Paulonis |
|  |  | Chief Executive Officer |

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## Exhibit 31.2

**Exhibit 31.2**

**CERTIFICATION<br>PURSUANT TO EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a),<br>AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002**

I, Adrianne Lee, certify that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)I have reviewed this Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026 of Sally Beauty Holdings, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

---

| | | |
|:---|:---|:---|
| Date: May 11, 2026 |  |  |
|  | By: | /s/ Adrianne Lee |
|  |  | Adrianne Lee |
|  |  | Senior Vice President, Chief Financial Officer  |

---

------

## Exhibit 32.1

**Exhibit 32.1**

**CERTIFICATION PURSUANT TO<br>18 U.S.C. SECTION 1350,<br>AS ADOPTED PURSUANT TO<br>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Sally Beauty Holdings, Inc. (the "Company") on Form 10-Q for the quarterly period ended March 31, 2026 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Denise Paulonis, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
|  | By: | /s/ Denise Paulonis |
|  |  | Denise Paulonis |
|  |  | Chief Executive Officer |
| Date: May 11, 2026 |  |  |

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## Exhibit 32.2

**Exhibit 32.2**

**CERTIFICATION PURSUANT TO<br>18 U.S.C. SECTION 1350,<br>AS ADOPTED PURSUANT TO<br>SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002**

In connection with the Quarterly Report of Sally Beauty Holdings, Inc. (the "Company") on Form 10-Q for the quarterly period ended March 31, 2026 as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Adrianne Lee, Senior Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

---

| | | |
|:---|:---|:---|
|  | By: | /s/ Adrianne Lee |
|  |  | Adrianne Lee |
|  |  | Senior Vice President, Chief Financial Officer |
| Date: May 11, 2026 |  |  |

---

------