Good morning, and thank you for joining the Regis First Quarter 2025 Earnings Conference Call. I am your host, Kersten Zupfer, Executive Vice President and Chief Financial Officer. I am joined today by our President and Chief Executive Officer, Matthew Doctor. All participants are in a listen-only mode and this conference is being recorded. I would like to remind everyone that the language on forward-looking statements included in our earnings release and 8-K filing also apply to our comments made on the call today. These documents can be found on our website, www.regiscorp.com/investor-relations, along with a reconciliation of any non-GAAP financial measures mentioned on today's call with their corresponding GAAP measures. With that, I will now turn the call over to Matt Doctor.

Thank you, and good morning, everyone. On today's call, I will go over the financial highlights for the quarter and provide updates on our key initiatives. Regarding our first quarter results, I'd say the headline here is our results reflect the stabilization of our business as we continue to put in the time, effort and investment required to position Regis for growth. Our adjusted results are largely in line with the prior year. And our GAAP financials came in slightly lower, driven by largely onetime expenses related to a severance accrual from the recent reorganization done in August as well as an outsized increase in stock-based compensation expense due to the movement in our stock price over the quarter. Same-store sales in Q1 was down 1.1% versus the prior year's quarter. As I mentioned on prior calls, over the last few years, price has largely driven the sales comp gains. And it is the decade-plus traffic trends we are most focused on addressing, not through just marketing but operations as well. We will not be satisfied until we reverse these trends and drive profitable traffic back to our franchisee salons. We want to be extra cognizant of not relying on price much further, as we continue to work on solidifying our value proposition. Our adjusted EBITDA for the quarter was $7.6 million versus $8.1 million a year ago. The 40% adjusted EBITDA margins during the quarter represents a two percentage point margin expansion versus the prior year. The slight decline in EBITDA, adjusted EBITDA dollars is driven by lower store counts and some favorable timing of expenses and accrual reversals that occurred in the prior year. Our adjusted earnings per share for the quarter was $0.93 versus $0.71 in the prior year. Reported GAAP earnings per share was a loss…

Thanks, Matt. Total first quarter revenues were $46.1 million, a decline of $7.3 million from the prior year. This revenue decline was expected and relates primarily to a reduction in franchise rental income and advertising fund revenue, which are a gross up of revenue and expense and have no impact on profitability. Royalty and fee revenue of $18 million, which represents our core business revenue was down $1.2 million versus the prior year's first quarter due to the number of salon closures over the course of the last 12 months. Another reflection of our revenue performance is system-wide same-store sales, which declined 1.1% in the quarter. We closed a net 41 franchise locations and eight company-owned locations in the first quarter of fiscal year 2025. The 41 net franchise closures in the quarter had an average trailing 12-month sales volume of $140,000, this compares to a top quartile salon average sales volume over the same period of $460,000, with top quartile sales 3.3x those of the closure salons, this demonstrates the performance we are seeing possible in our system as well as how large the gap of underperformance is for these closure salons. We have been clear on our calls that this is a trend that we've seen, and we'll continue to see. However, I wanted to provide some additional color and context as to what has been occurring and why this will slow in the coming years. The large scale closures, which we have experienced over the past fiscal years have largely been related to the timing of salon shifts from corporate to franchise. Beginning in 2017 and with leases generally in five year increments, we're seeing the waves of closures line up with those franchising efforts, with those transitioned in 2017 driving 2022 closures; 2018, driving 2023; 2019,…