MiniLuxe Holding Corp (TSXV: MNLX) reported a 3% year-over-year increase in net revenue to $7.7 million for the quarter ended June 28, 2026. The Boston-based nail care company also saw its operating loss narrow slightly, signaling improved studio-level unit economics across its network.

The results reflect continued growth in the franchise channel and strategic balance sheet strengthening through a recent private placement. System sales, which include gross revenue from franchised and joint-venture studios before royalty, grew 11.7% to $8.60 million in the second quarter.

Financial Performance

For the 13 weeks ended June 28, 2026, MiniLuxe’s total company net revenue rose to $7.7 million from $7.5 million in the same period last year. Year-to-date revenue for the first half of fiscal 2026 (H1 2026) reached $14.1 million, up 3% from $13.6 million in H1 2025.

*Derived from reported growth rate.

While top-line growth was modest, studio-level profitability showed compounding improvements. Studio cash contribution increased over 11% year-over-year to $1.1 million from approximately $0.99 million in Q2 2025. This marks the 14th consecutive quarter of year-over-year improvement in studio unit economics.

Balance Sheet and Capital Structure

MiniLuxe strengthened its liquidity position during the quarter by closing a non-brokered private placement that raised $5.1 million. The transaction was executed at over a 100% premium to the trading price at the time. Combined with proceeds from a Flow Capital term loan facility disclosed in the previous quarter, these inflows returned working capital to positive territory as of June 28, 2026.

Cash and cash equivalents stood at $6.1 million at the end of Q2 2026, a 37% increase from $4.5 million at December 28, 2025. Management noted that deliberate staffing adjustments to prepare for seasonal demand in the second half of the year impacted margins, but overall fleet-level profitability remained robust.

Strategic Expansion

The company continued to expand its footprint through operating partners and franchise agreements. Key developments include:

• Reopening of the Lakewood (Dallas–Fort Worth) studio as a MiniLuxe location on June 5, 2026.
• Opening of a joint-venture studio in Mansfield, Massachusetts, on July 30, 2026.
• Strong performance from franchised studios in Brookline, Massachusetts, and Water Street, with the franchise channel identified as the fastest-growing segment of the studio base.

In late August 2026, MiniLuxe agreed to acquire Belle Vista Nail Studio in Burlington, Massachusetts. The acquisition will be operated through a limited liability company in which MiniLuxe holds a 51% controlling interest, with the existing owner retaining 49% as an operating partner. The studio is scheduled for conversion to the MiniLuxe brand in 2027.

What the Numbers Show

A divergence exists between system sales growth and consolidated revenue growth. While system sales grew 11.7%, consolidated net revenue grew only 3%. This gap highlights the increasing weight of the franchise model, where high-gross-revenue studios contribute less directly to the company’s top line due to royalty-based accounting, yet drive significant cash contribution at the studio level.

Subsequent Events

On August 20, 2026, MiniLuxe commenced a substantial issuer bid (SIB) to purchase for cancellation up to C$6.0 million of its Class A Subordinate Voting Shares via a modified Dutch auction. The bid price ranges from C$0.40 to C$0.48 per share and expires on September 24, 2026. Additionally, on July 21, 2026, the company issued 1,428,571 Class A Subordinate Voting Shares to settle a third-party obligation.

MiniLuxe Holding Corp (TSXV: MNLX) has authorized a substantial issuer bid to repurchase and cancel up to C$6 million of its Class A Subordinate Voting Shares. The company initiated the offer through a modified Dutch auction mechanism, allowing shareholders to tender shares within a specified price range.

The offer commenced on August 20, 2026, and expires on September 24, 2026, unless extended or withdrawn. Computershare Investor Services Inc acts as the depositary for the transaction. Directors, officers, and other insiders have confirmed they will not tender any shares under the offer.

Offer Structure and Pricing

Shareholders may participate via two methods: auction tenders, where they specify a price between C$0.40 and C$0.48 per share (in increments of C$0.02), or purchase price tenders, where shares are bought at the final determined price but counted at the minimum C$0.40 for calculation purposes.

Upon expiry, MiniLuxe will determine the lowest purchase price within the range that allows it to acquire the maximum number of properly tendered shares without exceeding the C$6 million cap. The company is not obligated to purchase any shares if the aggregate value of valid tenders falls below C$1 million or if other conditions in the formal offer documents are not met.

Shareholding Impact

As of the announcement date, 86,669,259 Subordinate Voting Shares were issued and outstanding. Depending on the final purchase price, the offer represents a significant portion of the float:

Non-participating shareholders will realize a proportionate increase in their equity interest if shares are successfully repurchased. The closing price on August 17, 2026, was C$0.385, below the minimum tender price. Over the seven months ended July 31, 2026, prices ranged from a low of C$0.235 to a high of C$0.355.

What the Numbers Show

The offer price range of C$0.40 to C$0.48 per share represents a premium over recent trading levels. The lowest tender price (C$0.40) is approximately 5.2% higher than the August 17 closing price of C$0.385 and significantly above the seven-month low of C$0.235. This pricing structure suggests an immediate incentive for shareholders to participate, particularly those holding shares acquired near the lower end of the recent trading range.

Next Steps

MiniLuxe reserves the right to withdraw or amend the offer subject to applicable laws. Shareholders are advised to review the formal offer to purchase and issuer bid circular, available on SEDAR+ and the company’s website, before making decisions. The company makes no recommendation regarding participation.