# EDGAR Filing Document

**Accession Number:** 0001368458
**File Stem:** 0001193125-26-041889
**Filing Date:** 2026-2
**Character Count:** 35741
**Document Hash:** 0bc823feb8baaa7d171fc9631fedbde5
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001193125-26-041889.hdr.sgml**: 20260209

**ACCESSION NUMBER**: 0001193125-26-041889

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20260209

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260209

**DATE AS OF CHANGE**: 20260209

**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:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-33145
- **FILM NUMBER:** 26609555

**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'? 8-K

### UNITED STATES

### SECURITIES AND EXCHANGE COMMISSION

#### WASHINGTON, D.C. 20549

### FORM 8-K

#### CURRENT REPORT

#### PURSUANT TO SECTION 13 OR 15(d)

#### OF THE SECURITIES EXCHANGE ACT OF 1934

#### Date of Report: February 9, 2026

#### (Date of earliest event reported)

## SALLY BEAUTY HOLDINGS, INC.

#### (Exact Name of Registrant as Specified in its Charter)

---

| | | |
|:---|:---|:---|
| **Delaware** | **1-33145** | **36-2257936** |
| **(State or Other Jurisdiction**<br>**of Incorporation)** | **(Commission**<br>**File Number)** | **(IRS Employer**<br>**Identification No.)** |

---

---

| | |
|:---|:---|
| **7900 Windrose Avenue** |  |
| **Plano, Texas** | **75024** |
| **(Address of Principal Executive Offices)** | **(Zip Code)** |

---

#### Registrant's Telephone Number, Including Area Code: (800) 777-5706

#### Not Applicable

#### (Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

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

---

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

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

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. ☐

------

---

| | |
|:---|:---|
| **Item 2.02.** | **Results of Operations and Financial Condition** |

---

On February 9, 2026, Sally Beauty Holdings, Inc. (the "Company") issued the news release attached hereto as Exhibit 99.1 reporting the financial results of the Company for the first quarter ended December 31, 2025 (the "Earnings Release").

---

| | |
|:---|:---|
| **Item 7.01** | **Regulation FD Disclosure** |

---

The Earnings Release also provides an update on the Company's strategy and business outlook.

---

| | |
|:---|:---|
| **Item 9.01** | **Financial Statement and Exhibits** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) ---

| | |
|:---|:---|
| **Exhibit** | **Description** |
| 99.1 | [News release reporting financial results for the first quarter ended December 31, 2025, issued by Sally Beauty Holdings, Inc. on February 9, 2026.](d104904dex991.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

All of the information furnished in Items 2.02 and 7.01 of this report and the accompanying exhibit shall not be deemed to be "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be incorporated by reference in any filing under the Securities Act of 1933, as amended, unless expressly incorporated by reference therein.

------

#### 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 hereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **SALLY BEAUTY HOLDINGS, INC.** | **SALLY BEAUTY HOLDINGS, INC.** |
| February 9, 2026 | By: | /s/ Denise Paulonis |
|  |  | Name: Denise Paulonis |
|  |  | Title: President and Chief Executive Officer |

---

## Exhibit 99.1

**Exhibit 99.1** 

---

| | |
|:---|:---|
| ![LOGO](g104904dsp1a.jpg) | <br> Contact: Jeff Harkins<br> Investor Relations<br> 940-297-4131<br> <u>jharkins@sallybeauty.com</u> |

---

**Sally Beauty Holdings Reports First Quarter Fiscal 2026 Results** 

• **Q1 Consolidated Net Sales Increased 0.6%; Consolidated Comparable Sales Flat** 

• **Q1 GAAP Diluted EPS Decreased 22%; Adjusted Diluted EPS Increased 12%** 

• **Q1 Cash Flow from Operations of $93 Million Deployed to Invest for Growth, Strengthen Balance Sheet and Return Value to Shareholders** 

• **Company Raises Low End of Fiscal 2026 EPS Guidance** 

PLANO, Texas, February 9, 2026 – Sally Beauty Holdings, Inc. (NYSE: SBH) (the "Company"), the leader in professional hair color, today announced financial results for its first quarter ended December 31, 2025. The Company will hold a conference call today at 7:30 a.m. Central Time to discuss these results and its business.

"Our first quarter performance marks a strong start to fiscal 2026," said Denise Paulonis, president and chief executive officer. "We achieved top line results that met our expectations, maintained healthy gross margins and delivered adjusted EPS growth of 12% - consistent with our long-term financial algorithm. Our robust cash flow from operations enabled us to invest for growth, reduce debt and return value to shareholders. We also made continued progress on our strategic initiatives designed to accelerate growth and increase profitability."

**Fiscal 2026 First Quarter Summary** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Consolidated net sales of $943 million, an increase of 0.6% compared to the prior year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Consolidated comparable sales were flat;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Global e-commerce sales of $111 million, representing 11.7% of net
sales;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• GAAP gross margin expansion of 40 basis points to 51.2%;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Gross Margin expansion of 50 basis points to 51.3%;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• GAAP selling, general and administrative expenses of $407 million, an increase of $31 million compared
to the prior year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Selling, General and Administrative Expenses of $404 million, an increase of $6 million
compared to the prior year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• GAAP operating earnings of $76 million and GAAP operating margin of 8.1%;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Operating Earnings of $80 million and Adjusted Operating Margin of 8.5%;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• GAAP diluted net earnings per share of $0.45, a decrease of 22% compared to the prior year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adjusted Diluted Net Earnings Per Share of $0.48, an increase of 12% compared to the prior year;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash flow from operations of $93 million and Free Cash Flow of $57 million; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Completed $20 million in term loan repayment and $21 million in share repurchases.

**Balance Sheet and Cash Flow** 

As of December 31, 2025, the Company had cash and cash equivalents of $157 million and no outstanding borrowings under its asset-based revolving line of credit. At fiscal year-end, inventory was $979 million, down 2.7% versus a year ago.

First quarter cash flow from operations was $93 million and Free Cash Flow totaled $57 million. During the first quarter, the Company utilized its cash flow to repay $20 million of term loan B debt and repurchase 1.4 million shares under its share repurchase program at an aggregate cost of $21 million. The Company ended the first quarter with a net debt leverage ratio of 1.5x.

**Fiscal 2026 First Quarter Segment Results** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | **Sally Beauty** | **Sally Beauty** | **Sally Beauty** | **Beauty Systems Group** | **Beauty Systems Group** | **Beauty Systems Group** |
| (In thousands, except percentages) | Q1 FY26 | Q1 FY25 | Growth/(Decline) | Q1 FY26 | Q1 FY25 | Growth/(Decline) |
|  Net Sales | $531601 | $525446 | 1.2 | $411567 | $412449 | (0.2) |
|  Comparable Sales Growth/(Decline) | 0.1% | 1.7% | (160) | (0.2)% | 1.4% | (160) |
|  Gross Margin | 59.8% | 59.6% | 20 | 40.2% | 39.7% | 50 |
|  Operating Earnings | $77897 | $79874 | (2.5) | $53907 | $50469 | 6.8 |
|  Operating Margin | 14.7% | 15.2% | (50) | 13.1% | 12.2% | 90 |

---

**Fiscal Year 2026 Guidance\*** 

---

| | |
|:---|:---|
| <u>Second Quarter</u> |  |
|  Consolidated Net Sales | $895 million to $905 million <sup>(1)</sup> |
|  Comparable Sales | Up 0.5% to 1.5% |
|  Adjusted Operating Earnings | $68 million to $71 million |
|  Adjusted Diluted EPS | $0.39 to $0.42 |

---

<sup>(1)</sup> Assumes approximately 100 basis points of favorable impact from expected foreign currency rates

---

| | | |
|:---|:---|:---|
| Full Year | Prior FY26 Guidance | Updated FY26 Guidance |
| Consolidated Net Sales | $3.71 billion to $3.77 billion <sup>(1)</sup> | No change |
| Comparable Sales | Flat to up 1% | No change |
| Adjusted Operating Earnings | $328 million to $342 million | No change |
| Adjusted Diluted EPS | $2.00 to $2.10 <sup>(2)</sup> | $2.02 to $2.10 <sup>(2)</sup> |
| Capital Expenditures | Approximately $100 million | No change |
| Free Cash Flow | Approximately $200 million | No change |

---

<sup>(1)</sup> Assumes approximately 50 basis points of favorable impact from expected foreign currency rates

<sup>(2)</sup> Assumes 50% of Free Cash Flow goes towards share repurchases (Free Cash Flow defined as GAAP cash flows from operating activities less payments for capital expenditures) 

------

\* The Company does not provide a reconciliation for forward-looking non-GAAP financial measures where it is unable to provide a meaningful or accurate calculation or estimation of its reconciling items and the information is not available without unreasonable effort. This is due to the inherent difficulty of forecasting the occurrence and the financial impact of various items that have not yet occurred, are out of the Company's control or cannot be reasonably predicted. For the same reasons, the Company is unable to address the probable significance of the unavailable information. Forward-looking non-GAAP financial measures provided without the most directly comparable GAAP financial measures may vary materially from the corresponding GAAP financial measures. 

**Conference Call and Where You Can Find Additional Information** 

The Company will hold a conference call and live webcast at approximately 7:30 a.m. Central Time today, February 9, 2026, to discuss its financial results and its business. During the conference call, the Company may discuss and answer one or more questions concerning business and financial matters and trends affecting the Company. The Company's responses to these questions, as well as other matters discussed during the conference call, may contain or constitute material information that has not been previously disclosed.

Participants can listen to the live webcast of the conference call by accessing the investor relations section of the Company's website at <u>sallybeautyholdings.com/investor-relations/events-and-presentations/events-calendar</u>, or through our third-party host at <u>SBH Q1 Earnings Webcast</u>. To join the conference call, participants can pre-register to receive a dial-in number and unique PIN using the following link: <u>Pre-register SBH Q1 Earnings Call</u>. Pre-registration can be completed at any time up to and following the call start time.

A replay will be available on the Company's investor relations website after 10:00 a.m. Central Time on February 9, 2026, through February 9, 2027.

**About Sally Beauty Holdings, Inc.** 

Sally Beauty Holdings, Inc. (NYSE: SBH), as the leader in professional hair color, sells and distributes professional beauty supplies globally through its Sally Beauty and Beauty Systems Group segments. Sally Beauty stores offer up to 7,000 products for hair color, hair care, nails, and skin care through proprietary brands such as Ion<sup>®</sup>, Bondbar<sup>®</sup>, Strawberry Leopard<sup>®</sup>, Generic Value Products<sup>®</sup>, Inspired by Nature<sup>®</sup> and Silk Elements<sup>®</sup> as well as professional lines such as Wella<sup>®</sup>, Clairol<sup>®</sup>, OPI<sup>®</sup>, L'Oreal<sup>®</sup>, Wahl<sup>®</sup> and Babyliss Pro<sup>®</sup>. Beauty Systems Group stores, branded as Cosmo Prof<sup>®</sup> or Armstrong McCall<sup>®</sup> stores, along with its outside sales consultants, sell up to 8,000 professionally branded products including Paul Mitchell<sup>®</sup>, Wella<sup>®</sup>, Matrix<sup>®</sup>, Schwarzkopf<sup>®</sup>, Kenra<sup>®</sup>, Goldwell<sup>®</sup>, Joico<sup>®</sup>, Amika<sup>®</sup> and Moroccanoil<sup>®</sup>, intended for use in salons and for resale by salons to retail consumers. For more information about Sally Beauty Holdings, Inc., please visit <u>sallybeautyholdings.com/investor-relations</u>.

------

**Cautionary Notice Regarding Forward-Looking Statements** 

Statements in this news release and the schedules hereto that are not purely historical facts or that depend upon future events may be forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements, as that term is defined in the Private Securities Litigation Reform Act of 1995, can be identified by the use of words such as "believes," "projects," "expects," "can," "may," "estimates," "should," "plans," "targets," "intends," "could," "will," "would," "anticipates," "potential," "confident," "optimistic," or the negative thereof, or other variations thereon, or comparable terminology, or by discussions of strategy, objectives, estimates, guidance, expectations and future plans. Forward-looking statements can also be identified by the fact that these statements do not relate strictly to historical or current matters.

Readers are cautioned not to place undue reliance on forward-looking statements as such statements speak only as of the date they were made. Any forward-looking statements involve risks and uncertainties that could cause actual events or results to differ materially from the events or results described in the forward-looking statements, including the "Risk Factors" described under Item 1A of our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, and other filings with the U.S. Securities and Exchange Commission. Consequently, all forward-looking statements in this release are qualified by the factors, risks and uncertainties contained therein. We assume no obligation to publicly update or revise any forward-looking statements.

**Use of Non-GAAP Financial Measures** 

This news release and the schedules hereto include the following financial measures that have not been calculated in accordance with accounting principles generally accepted in the United States, ("GAAP"), and are therefore referred to as non-GAAP financial measures: (1) Adjusted Gross Margin; (2) Adjusted Selling, General and Administrative Expenses; (3) Adjusted EBITDA and EBITDA Margin; (4) Adjusted Operating Earnings and Operating Margin; (5) Adjusted Net Earnings; (6) Adjusted Diluted Net Earnings Per Share; and (7) Free Cash Flow. We have provided definitions below for these non-GAAP financial measures and have provided tables in the schedules hereto to reconcile these non-GAAP financial measures to the comparable GAAP financial measures.

*Adjusted Gross Margin –* We define the measure Adjusted Gross Margin as GAAP gross margin excluding the inventory write-off from the Company's European operations in connection with the fuel for growth initiative for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures.

*Adjusted Selling, General and Administrative Expenses –* We define the measure Adjusted Selling, General and Administrative Expenses as GAAP selling, general and administrative expenses excluding the costs related to the Company's fuel for growth initiative and expenses related to the Company's corporate headquarters relocation for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures.

*Adjusted EBITDA and EBITDA Margin –* We define the measure Adjusted EBITDA as GAAP net earnings before depreciation and amortization, interest expense, income taxes, share-based compensation, costs related to the Company's fuel for growth initiative and expenses related to the Company's corporate headquarters relocation for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures. Adjusted EBITDA Margin is Adjusted EBITDA as a percentage of net sales.

------

*Adjusted Operating Earnings and Operating Margin –* Adjusted operating earnings are GAAP operating earnings that exclude the costs related to the Company's fuel for growth initiative and expenses related to the Company's corporate headquarters relocation for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures. Adjusted Operating Margin is Adjusted Operating Earnings as a percentage of net sales.

*Adjusted Net Earnings –* Adjusted net earnings is GAAP net earnings that exclude the tax-effected costs related to the Company's fuel for growth initiative and tax-effected expenses related to the Company's corporate headquarters relocation for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures.

*Adjusted Diluted Net Earnings Per Share –* Adjusted diluted net earnings per share is GAAP diluted earnings per share that exclude the tax-effected costs related to the Company's fuel for growth initiative and tax-effected expenses related to the Company's corporate headquarters relocation for the relevant time periods as indicated in the accompanying non-GAAP reconciliations to the comparable GAAP financial measures.

*Free Cash Flow* – We define the measure Free Cash Flow as GAAP net cash provided by operating activities less payments for capital expenditures (net). We believe Free Cash Flow is an important liquidity measure that provides useful information to investors about the amount of cash generated from operations after taking into account payments for capital expenditures (net).

We believe that these non-GAAP financial measures provide valuable information regarding our earnings and business trends by excluding specific items that we believe are not indicative of the ongoing operating results of our businesses, providing a useful way for investors to make a comparison of our performance over time and against other companies in our industry.

We have provided these non-GAAP financial measures as supplemental information to our GAAP financial measures and believe these non-GAAP measures provide investors with additional meaningful financial information regarding our operating performance and cash flows. Our management and Board of Directors also use these non-GAAP measures as supplemental measures to evaluate our businesses and the performance of management, including the determination of performance-based compensation, to make operating and strategic decisions, and to allocate financial resources. We believe that these non-GAAP measures also provide meaningful information for investors and securities analysts to evaluate our historical and prospective financial performance. These non-GAAP measures should not be considered a substitute for or superior to GAAP results. Furthermore, the non-GAAP measures presented by us may not be comparable to similarly titled measures of other companies.

------

**Supplemental Schedules** 

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| | |
|:---|:---|
| Segment Information | 1 |
| Non-GAAP Financial Measures Reconciliations | 2 |
| Non-GAAP Financial Measures Reconciliations; Adjusted EBITDA and Free Cash Flow | 3 |
| Store Count and Comparable Sales | 4 |

---

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

Condensed Consolidated Statements of Earnings

(In thousands, except per share data)

(Unaudited)

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
|  | **2025** | **2024** | **Percentage<br>Change** |
|  Net sales | $943168 | $937895 | 0.6% |
|  Cost of products sold | 459909 | 461055 | (0.2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Gross profit | 483259 | 476840 | 1.3% |
|  Selling, general and administrative expenses | 407324 | 376520 | 8.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating earnings | 75935 | 100320 | (24.3)% |
|  Interest expense | 14620 | 17442 | (16.2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Earnings before provision for income taxes | 61315 | 82878 | (26.0)% |
|  Provision for income taxes | 15758 | 21865 | (27.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Net earnings | $45557 | $61013 | (25.3)% |
|  Earnings per share: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | $0.47 | $0.60 | (21.7)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | $0.45 | $0.58 | (22.4)% |
|  Weighted average shares: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | 97804 | 102021 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | 100765 | 104974 |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  | | | **Basis Point<br>Change** |
|  <u>Comparison as a percentage of net sales</u> |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated gross margin | 51.2% | 50.8% | 40 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Selling, general and administrative expenses | 43.2% | 40.1% | 310 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated operating margin | 8.1% | 10.7% | (260) |
|  <u>Effective tax rate</u> | 25.7% | 26.4% | (70) |

---

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

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **December 31** | **September 30** |
|  | **2025** | **2025** |
|  Cash and cash equivalents | $157185 | $149162 |
|  Trade and other accounts receivable | 104267 | 116562 |
|  Inventory | 978789 | 987575 |
|  Other current assets | 45444 | 48154 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current assets | 1285685 | 1301453 |
|  Property and equipment, net | 280350 | 284284 |
|  Operating lease assets | 642276 | 646698 |
|  Goodwill and other intangible assets | 593929 | 593692 |
|  Other assets | 48538 | 44969 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total assets | $2850778 | $2871096 |
|  Current maturities of long-term debt | $4000 | $4000 |
|  Accounts payable | 208481 | 224507 |
|  Accrued liabilities | 158576 | 184641 |
|  Current operating lease liabilities | 157102 | 158566 |
|  Income taxes payable | 14011 | 4260 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total current liabilities | 542170 | 575974 |
|  Long-term debt, including capital leases | 842531 | 861974 |
|  Long-term operating lease liabilities | 537594 | 538426 |
|  Other liabilities | 21985 | 21026 |
|  Deferred income tax liabilities, net | 82933 | 79489 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities | 2027213 | 2076889 |
|  Total stockholders' equity | 823565 | 794207 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total liabilities and stockholders' equity | $2850778 | $2871096 |

---

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Supplemental Schedule 1

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

Segment Information

(In thousands)

(Unaudited)

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
|  | **2025** | **2024** | **Percentage<br>Change** |
|  Net sales: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sally Beauty Supply ("Sally") | $531601 | $525446 | 1.2% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beauty Systems Group ("BSG") | 411567 | 412449 | (0.2)% |
|  Total net sales | $943168 | $937895 | 0.6% |
|  Operating earnings: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sally | $77897 | $79874 | (2.5)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BSG | 53907 | 50469 | 6.8% |
|  Segment operating earnings | 131804 | 130343 | 1.1% |
|  Unallocated expenses <sup>(1)</sup>  | 55869 | 30023 | 86.1% |
|  Interest expense | 14620 | 17442 | (16.2)% |
|  Earnings before provision for income taxes | $61315 | $82878 | (26.0)% |

---

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| | | | |
|:---|:---|:---|:---|
|  | **2025** | **2024** | **Basis Point<br>Change** |
|  Segment gross margin: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sally | 59.8% | 59.6% | 20 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BSG | 40.2% | 39.7% | 50 |
|  Segment operating margin: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sally | 14.7% | 15.2% | (50) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BSG | 13.1% | 12.2% | 90 |
|  Consolidated operating margin | 8.1% | 10.7% | (260) |

---

(1) Unallocated expenses, including share-based compensation expense, consist of corporate and shared costs and are
included in selling, general and administrative expenses. Additionally, unallocated expenses include costs associated with our Fuel for Growth initiative and a gain from the sale of our corporate headquarters during the three months ended
December 31, 2024.

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Supplemental Schedule 2

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

Non-GAAP Financial Measures Reconciliations

(In thousands, except per share data)

(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three Months Ended December 31, 2025** | **Three Months Ended December 31, 2025** | **Three Months Ended December 31, 2025** | **Three Months Ended December 31, 2025** |
|  | As Reported<br>(GAAP) | Fuel for Growth<br>and Other <sup>(1)</sup> | Corporate HQ<br>Relocation <sup>(2)</sup> | As Adjusted<br>(Non-GAAP) |
|  Cost of products sold | $459909 | $(907) | $— | $459002 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated gross margin | 51.2% |  |  | 51.3% |
|  Selling, general and administrative expenses | 407324 | (1180) | (1833) | 404311 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SG&A expenses, as a percentage of sales | 43.2% |  |  | 42.9% |
|  Operating earnings | 75935 | 2087 | 1833 | 79855 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating margin | 8.1% |  |  | 8.5% |
|  Interest expense | 14620 |  |  | 14620 |
|  Earnings before provision for income taxes | 61315 | 2087 | 1833 | 65235 |
|  Provision for income taxes <sup>(3)</sup> | 15758 | 529 | 471 | 16758 |
|  Net earnings | $45557 | $1558 | $1362 | $48477 |
|  Earnings per share: <sup>(4)</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | $0.47 | $0.02 | $0.01 | $0.50 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | $0.45 | $0.02 | $0.01 | $0.48 |
|  | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** | **Three Months Ended December 31, 2024** |
|  | As Reported<br>(GAAP) | Fuel for Growth<br>and Other <sup>(1)</sup> | Corporate HQ<br>Relocation <sup>(2)</sup> | As Adjusted<br>(Non-GAAP) |
|  Cost of products sold | $461055 | $— | $— | $461055 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated gross margin | 50.8% |  |  | 50.8% |
|  Selling, general and administrative expenses | 376520 | (4869) | 26640 | 398291 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SG&A expenses, as a percentage of sales | 40.1% |  |  | 42.5% |
|  Operating earnings | 100320 | 4869 | (26640) | 78549 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating margin | 10.7% |  |  | 8.4% |
|  Interest expense | 17442 |  |  | 17442 |
|  Earnings before provision for income taxes | 82878 | 4869 | (26640) | 61107 |
|  Provision for income taxes <sup>(3)</sup> | 21865 | 1247 | (6851) | 16261 |
|  Net earnings | $61013 | $3622 | $(19789) | $44846 |
|  Earnings per share: <sup>(4)</sup> |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Basic | $0.60 | $0.04 | $(0.19) | $0.44 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Diluted | $0.58 | $0.03 | $(0.19) | $0.43 |

---

(1) Fuel for Growth and other represents expenses primarily related expenses associated with our Fuel for Growth
program and other non-recurring items.

(2) For the three months ended December 31, 2025, corporate HQ relocation primarily represents duplicate rent
expense on the new office prior to our relocation from our Denton corporate headquarters and expenses in connection with the relocation of our headquarters. For the three months ended December 31, 2024, corporate HQ relocation primarily
represents the gain on the sale of our Denton corporate headquarters and certain assets within.

(3) The provision for income taxes was calculated using the applicable tax rates for each country, while excluding
the tax benefits for countries where the tax benefit is not currently deemed probable of being realized.

(4) The sum of the earnings per share may not equal the full amount due to rounding of the calculated amounts.

------

Supplemental Schedule 3

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

Non-GAAP Financial Measures Reconciliations, Continued

(In thousands)

(Unaudited)

---

| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
| **Adjusted EBITDA:** | **2025** | **2024** | **Percentage<br>Change** |
|  Net earnings | $45557 | $61013 | (25.3)% |
|  Add: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 23632 | 25565 | (7.6)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Interest expense | 14620 | 17442 | (16.2)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Provision for income taxes | 15758 | 21865 | (27.9)% |
|  EBITDA (non-GAAP) | 99567 | 125885 | (20.9)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation | 7555 | 6053 | 24.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Fuel for Growth and Other | 2087 | 4869 | (57.1)% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Corporate HQ Relocation | 1833 | (26640) | 106.9% |
|  Adjusted EBITDA (non-GAAP) | $111042 | $110167 | 0.8% |
|  |  |  | **Basis Point<br>Change** |
|  <u>Adjusted EBITDA as a percentage of net sales</u> |  |  |  |
|  Adjusted EBITDA margin | 11.8% | 11.7% | 10 |
| **Free Cash Flow:** | **2025** | **2024** | **Percentage<br>Change** |
|  Cash flows from operating activities | $93239 | $33459 | 178.7% |
|  Less: Payments for capital expenditures | 35784 | 20078 | 78.2% |
|  Plus: Proceeds from sales of property and equipment <sup>(1)</sup> |  | 43574 |  |
|  Free cash flow (non-GAAP) | $57455 | $56955 | 0.9% |

---

(1) Represents the proceeds from the sale of our corporate headquarters.

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Supplemental Schedule 4

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

Store Count and Comparable Sales

(Unaudited)

---

| | | | |
|:---|:---|:---|:---|
|  | **As of December 31,** | **As of December 31,** | **As of December 31,** |
|  | **2025** | **2024** | **Change** |
|  Number of stores: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sally | 3090 | 3123 | (33) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BSG: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Company-operated stores | 1194 | 1199 | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Franchise stores | 131 | 131 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total BSG | 1325 | 1330 | (5) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Total consolidated | 4415 | 4453 | (38) |
|  Number of BSG salon business consultants <sup>(1)</sup> | 590 | 639 | (49) |

---

(1) BSG salon business consultants (SBC) include 182 and 191 sales consultants employed by our franchisees at
December 31, 2025 and 2024, respectively.

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| | | | |
|:---|:---|:---|:---|
|  | **Three Months Ended December 31,** | **Three Months Ended December 31,** | **Three Months Ended December 31,** |
|  | **2025** | **2024** | **Basis Point<br>Change** |
|  Comparable sales growth (decline): |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Sally | 0.1% | 1.7% | (160) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; BSG | (0.2)% | 1.4% | (160) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Consolidated | 0.0% | 1.6% | (160) |

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Our comparable sales include sales from stores that have been operating for 14 months or longer as of the last day of a month and e-commerce revenue. Additionally, our comparable sales include sales to franchisees and full-service sales. Our comparable sales amounts exclude the effect of changes in foreign exchange rates and sales from stores relocated until 14 months after the relocation. Revenue from acquired stores is excluded from our comparable sales calculation until 14 months after the acquisition.