RCI Hospitality Holdings Inc (RICK)

RCI Files 10-Q and Reports Results for 2Q26May 28, 2026 4:05 PM
Business Wire RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today filed its Form 10-Q and reported results for the fiscal 2026 second quarter ended March 31, 2026. Summary Financials (in millions, except EPS) 2Q26 2Q25 6M26 6M25 Total revenues $68.7 $65.9 $139.6 $137.4 EPS $(0.04) $0.36 $(0.63) $1.38 Non-GAAP EPS1 $0.78 $0.65 $1.52 $1.46 Impairments and other charges, net $7.6 $2.1 $7.9 $(0.1) Net cash provided by operating activities $9.9 $8.5 $17.7 $21.9 Free cash flow1 $8.4 $6.9 $15.1 $19.0 Net income (loss) attributable to RCIHH common stockholders $(0.3) $3.2 $(5.1) $12.3 Adjusted EBITDA1 $15.6 $14.2 $31.3 $29.9 Weighted average shares used in computing EPS – basic and diluted 7.74 8.86 8.02 8.89 1 See “Non-GAAP Financial Measures” below. Summary (Comparisons are to year-ago periods unless indicated otherwise) Travis Reese, Interim President and CEO, said: "We're pleased to report improved performance in many key metrics. While net income attributable to RCIHH common stockholders and EPS declined due to non-cash impairments, non-GAAP EPS, net cash provided by operating activities, free cash flow, and adjusted EBITDA all increased." "This performance was despite freezing weather in late January-early February that caused a number of clubs to close for one to two days each, mostly on weekends." "As previously reported, Nightclubs total sales increased and same-store sales were nearly level. Bombshells total sales also increased. While same-store sales declined, the initial implementation of our ‘pre-game and party all in one’ strategy to increase the mix of higher-margin alcoholic beverage sales resulted in a 3.6% same-store sales increase at Bombshells 59 in Houston, making it the best-performing same-store location." "In line with our 5-Year Capital Allocation Plan, we have continued to buy back shares. As of May 22, 2026, we had approximately 7,644,500 shares outstanding." Note: There will be no conference call as RCI just held one on May 7, 2026, when it reported its delayed 1Q26 results. 2Q26 Results (Comparisons are to year-ago periods unless indicated otherwise) Nightclubs segment: Revenues of $60.3 million increased by 4.8%. Five newly acquired, opened and reformatted clubs generated $4.8 million in sales, the 51 clubs in same-store sales produced $54.5 million, and one club was closed during the quarter.2 By revenue type, service increased 11.3%; food, merchandise and other increased 3.8%; and alcoholic beverages declined 0.9%. Impairments and other charges, net of $7.6 million compared to $2.0 million. Operating income was $10.8 million compared to $14.5 million or 17.8% of segment revenues compared to 25.3%. Non-GAAP operating income, which excludes impairment and other net charges, was $19.0 million compared to $17.1 million or 31.5% of segment revenues compared to 29.7%. Bombshells segment: Revenues of $8.4 million increased 1.6%. Sales reflected $1.6 million from two newly opened locations and $6.8 million from the nine same-store locations.2 By revenue type, alcoholic beverages increased 4.0% and food was level with 2Q25. Other charges, net of $67,000 compared to $159,000. Operating loss was $267,000 compared to $245,000 or -3.2% of segment revenues compared to -3.0%. Non-GAAP operating loss, which excludes other net charges, was $200,000 compared to $85,000 or -2.4% of segment revenues compared to -1.0%. Corporate segment: Expenses totaled $6.6 million compared to $5.9 million or 9.6% of total revenues compared to 9.0%. Most of the year over year change reflected increased insurance costs. Non-GAAP expenses totaled $6.4 million compared to $5.8 million or 9.3% of total revenues compared to 8.8%. Impairments and other charges, net within consolidated operations totaled $7.6 million compared to $2.1 million. Income tax was a benefit of $0.4 million compared to an expense of $1.1 million. Weighted average shares outstanding of 7.74 million declined 12.6% due to share buybacks. Debt of $248.7 million at March 31, 2026 declined 3.0% from $256.4 million at December 31, 2025, primarily reflecting debt paydowns. Compared to a year ago, debt increased 3.0%. 2 See our April 9, 2026 news release on 2Q26 sales for more details. Non-GAAP Financial Measures In addition to our financial information presented in accordance with GAAP, management uses certain non-GAAP financial measures, within the meaning of the SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Generally, a non-GAAP financial measure is a numerical measure of a company’s operating performance, financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and presented in accordance with GAAP. We monitor non-GAAP financial measures because they describe the operating performance of the Company and help management and investors gauge our ability to generate cash flow, excluding (or including) some items that management believes are not representative of the ongoing business operations of the Company, but are included in (or excluded from) the most directly comparable measures calculated and presented in accordance with GAAP. Relative to each of the non-GAAP financial measures, we further set forth our rationale as follows: Non-GAAP Operating Income and Non-GAAP Operating Margin. We calculate non-GAAP operating income and non-GAAP operating margin by excluding the following items from income from operations and operating margin: (a) amortization of intangibles, (b) impairment of assets, (c) settlement of lawsuits, net of recoveries, (d) gains or losses on sale of businesses and assets, (e) gains or losses on insurance, and (f) stock-based compensation. We believe that excluding these items assists investors in evaluating period-over-period changes in our operating income and operating margin without the impact of items that are not a result of our day-to-day business and operations. Non-GAAP Net Income and Non-GAAP Net Income per Diluted Share. We calculate non-GAAP net income and non-GAAP net income per diluted share by excluding or including certain items to net income or loss attributable to RCIHH common stockholders and diluted earnings per share. Adjustment items are: (a) amortization of intangibles, (b) impairment of assets, (c) settlement of lawsuits, net of recoveries, (d) gains or losses on sale of businesses and assets, (e) gains or losses on insurance, (f) stock-based compensation, (g) premium on stock repurchase, (h) gains or losses on lease termination, and (i) the income tax effect of the above-described adjustments. Included in the income tax effect of the above adjustments is the net effect of the non-GAAP provision for income taxes, calculated at approximately 22.3% and 18.1% effective tax rate of the pre-tax non-GAAP income before taxes for the six months ended March 31, 2026, and 2025, respectively, and the GAAP income tax expense (benefit). We believe that excluding and including such items help management and investors better understand our operating activities. Adjusted EBITDA. We calculate adjusted EBITDA by excluding the following items from net income or loss attributable to RCIHH common stockholders: (a) depreciation and amortization, (b) income tax expense, (c) net interest expense, (d) impairment of assets, (e) settlement of lawsuits, net of recoveries, (f) gains or losses on sale of businesses and assets, (g) gains or losses on insurance, (h) stock-based compensation, (i) premium on stock repurchase, and (j) gains or losses on lease termination. We believe that adjusting for such items helps management and investors better understand our operating activities. Adjusted EBITDA provides a core operational performance measurement that compares results without the need to adjust for federal, state and local taxes which have considerable variation between domestic jurisdictions. The results are, therefore, without consideration of financing alternatives of capital employed. We use adjusted EBITDA as one guideline to assess our unleveraged performance return on our investments. Adjusted EBITDA is also the target benchmark for our acquisitions of nightclubs. We also use certain non-GAAP cash flow measures such as free cash flow. Free cash flow is derived from net cash provided by operating activities less maintenance capital expenditures. We use free cash flow as the baseline for the implementation of our capital allocation strategy. Accounting Standards Update (ASU) 2023-07 The Company has adopted Accounting Standards Update (ASU) 2023-07, which requires enhanced reportable segment disclosures. As a result, certain prior-year segment information has been recast. About RCI Hospitality Holdings, Inc. (Nasdaq: RICK) (X: @RCIHHinc) With more than 60 locations, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country’s leading company in adult nightclubs and sports bars-restaurants. See all our brands at www.rcihospitality.com. Forward-Looking Statements This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the Company's actual results to differ materially from those indicated, including, but not limited to, the risks and uncertainties associated with (i) operating and managing an adult entertainment or restaurant business, (ii) the business climates in cities where it operates, (iii) the success or lack thereof in launching and building the Company's businesses, (iv) cyber security, (v) conditions relevant to real estate transactions, (vi) our ability to regain and maintain compliance with the filing requirements of the U.S. Securities and Exchange Commission (“SEC”) and the Nasdaq Stock Market, and (vii) numerous other factors such as laws governing the operation of adult entertainment or restaurant businesses, competition and dependence on key personnel. For more detailed discussion of such factors and certain risks and uncertainties, see RCI's annual report on Form 10-K for the year ended September 30, 2025, as well as its other filings with the SEC. The Company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances. RCI HOSPITALITY HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share, number of shares, and percentage data)                                   Three Months Ended   Six Months Ended   March 31, 2026   March 31, 2025   March 31, 2026   March 31, 2025   Amount   % of Revenue   Amount   % of Revenue   Amount   % of Revenue   Amount   % of Revenue Revenues                               Sales of alcoholic beverages $ 28,817     41.9 %   $ 28,866     43.8 %   $ 58,956     42.2 %   $ 61,054     44.4 % Sales of food and merchandise   9,539     13.9 %     9,411     14.3 %     19,505     14.0 %     19,517     14.2 % Service revenues   25,448     37.0 %     22,912     34.8 %     51,259     36.7 %     47,093     34.3 % Other   4,918     7.2 %     4,687     7.1 %     9,830     7.0 %     9,695     7.1 % Total revenues   68,722     100.0 %     65,876     100.0 %     139,550     100.0 %     137,359     100.0 % Operating expenses                               Cost of goods sold                               Alcoholic beverages sold   5,231     18.2 %     5,204     18.0 %     10,742     18.2 %     11,050     18.1 % Food and merchandise sold   3,558     37.3 %     3,182     33.8 %     7,187     36.8 %     6,745     34.6 % Service and other   16     0.1 %     25     0.1 %     117     0.2 %     97     0.2 % Total cost of goods sold (exclusive of items shown below)   8,805     12.8 %     8,411     12.8 %     18,046     12.9 %     17,892     13.0 % Salaries and wages   21,242     30.9 %     20,491     31.1 %     42,685     30.6 %     41,055     29.9 % Selling, general and administrative   23,197     33.8 %     22,900     34.8 %     47,901     34.3 %     49,107     35.8 % Depreciation and amortization   4,017     5.8 %     3,776     5.7 %     8,204     5.9 %     7,345     5.3 % Impairments and other charges (gains), net   7,649     11.1 %     2,127     3.2 %     7,866     5.6 %     (117 )   (0.1 )% Total operating expenses   64,910     94.5 %     57,705     87.6 %     124,702     89.4 %     115,282     83.9 % Income from operations   3,812     5.5 %     8,171     12.4 %     14,848     10.6 %     22,077     16.1 % Other income (expenses)                               Interest expense   (4,515 )   (6.6 )%     (4,048 )   (6.1 )%     (8,865 )   (6.4 )%     (8,200 )   (6.0 )% Interest income   82     0.1 %     139     0.2 %     181     0.1 %     318     0.2 % Non-operating gains (losses), net   4     0.0 %     —     0.0 %     (9,881 )   (7.1 )%     979     0.7 % Income (loss) before income taxes   (617 )   (0.9 )%     4,262     6.5 %     (3,717 )   (2.7 )%     15,174     11.0 % Income tax expense (benefit)   (398 )   (0.6 )%     1,068     1.6 %     1,151     0.8 %     2,915     2.1 % Net income (loss)   (219 )   (0.3 )%     3,194     4.8 %     (4,868 )   (3.5 )%     12,259     8.9 % Net loss (income) attributable to noncontrolling interests   (107 )   (0.2 )%     37     0.1 %     (192 )   (0.1 )%     (4 )   0.0 % Net income (loss) attributable to RCIHH common shareholders $ (326 )   (0.5 )%   $ 3,231     4.9 %   $ (5,060 )   (3.6 )%   $ 12,255     8.9 %                                 Earnings (loss) per share                               Basic and diluted $ (0.04 )       $ 0.36         $ (0.63 )       $ 1.38                                       Weighted average shares used in computing earnings (loss) per share                               Basic and diluted   7,741,522           8,861,854           8,021,747           8,891,638       RCI HOSPITALITY HOLDINGS, INC. SEGMENT INFORMATION (in thousands)                   Three Months Ended   Six Months Ended   March 31, 2026   March 31, 2025   March 31, 2026   March 31, 2025 Revenues               Nightclubs $ 60,275     $ 57,541     $ 122,584     $ 119,265   Bombshells   8,359       8,229       16,740       17,816   Other   88       106       226       278     $ 68,722     $ 65,876     $ 139,550     $ 137,359                   Income (loss) from operations               Nightclubs $ 10,758     $ 14,532     $ 29,480     $ 35,385   Bombshells   (267 )     (245 )     (406 )     1,700   Other   (112 )     (171 )     (262 )     (274 ) Corporate   (6,567 )     (5,945 )     (13,964 )     (14,734 )   $ 3,812     $ 8,171     $ 14,848     $ 22,077   RCI HOSPITALITY HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)                   Three Months Ended   Six Months Ended   March 31, 2026   March 31, 2025   March 31, 2026   March 31, 2025 CASH FLOWS FROM OPERATING ACTIVITIES               Net income (loss) $ (219 )   $ 3,194     $ (4,868 )   $ 12,259   Adjustments to reconcile net income (loss) to net cash provided by operating activities:               Depreciation and amortization   4,017       3,776       8,204       7,345   Impairment of assets   7,270       1,780       8,433       1,780   Deferred income tax benefit   (2,223 )     (853 )     (2,223 )     (1,242 ) Stock-based compensation   197       118       589       588   Loss (gain) on sale of businesses and assets   154       215       184       (1,248 ) Amortization of debt discount and issuance costs   128       227       265       290   Noncash lease expense   745       668       1,479       1,326   Gain on insurance   (46 )     —       (187 )     (1,150 ) Credit loss reversal on notes receivable   (86 )     —       (11 )     —   Premium on stock repurchase   —       —       9,885       —   Changes in operating assets and liabilities, net of business acquisitions:               Receivables   1,099       (659 )     745       1,714   Inventories   87       68       112       64   Prepaid expenses, other current, and other assets   1,613       68       (1,209 )     (530 ) Accounts payable, accrued, and other liabilities   (2,855 )     (55 )     (3,701 )     695   Net cash provided by operating activities   9,881       8,547       17,697       21,891   CASH FLOWS FROM INVESTING ACTIVITIES               Proceeds from sale of businesses and assets   1,075       956       1,675       1,085   Proceeds from insurance   46       —       184       1,150   Proceeds from notes receivable   57       76       107       147   Payments for property and equipment and intangible assets   (1,868 )     (2,854 )     (4,199 )     (8,608 ) Acquisition of businesses, net of cash acquired   —       (6,000 )     —       (6,000 ) Net cash used in investing activities   (690 )     (7,822 )     (2,233 )     (12,226 ) CASH FLOWS FROM FINANCING ACTIVITIES               Proceeds from debt obligations   —       5,433       2,253       8,396   Payments on debt obligations   (7,833 )     (4,627 )     (12,785 )     (10,321 ) Payment of loan origination costs   —       (71 )     (40 )     (71 ) Purchase of treasury stock   (2,438 )     (2,896 )     (12,269 )     (6,114 ) Payment of dividends   (617 )     (619 )     (1,162 )     (1,242 ) Investment from noncontrolling partner   —       —       1,800       —   Payments to noncontrolling interests   (44 )     —       (80 )     —   Net cash used in financing activities   (10,932 )     (2,780 )     (22,283 )     (9,352 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS   (1,741 )     (2,055 )     (6,819 )     313   CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD   28,631       34,718       33,709       32,350   CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 26,890     $ 32,663     $ 26,890     $ 32,663   RCI HOSPITALITY HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (in thousands)               March 31, 2026   September 30, 2025   March 31, 2025 ASSETS           Current assets           Cash and cash equivalents $ 26,890   $ 33,709     $ 32,663   Receivables, net   2,627     3,940       4,174   Inventories   4,745     4,857       4,645   Prepaid expenses and other current assets   6,284     4,968       4,071   Assets held for sale   —     3,394       —   Total current assets   40,546     50,868       45,553   Property and equipment, net   278,069     279,027       283,442   Operating lease right-of-use assets   24,311     25,781       24,905   Notes receivable, net of current portion   4,326     3,849       4,031   Goodwill   62,242     62,725       62,524   Intangibles, net   162,271     171,948       167,383   Other assets   2,627     2,737       1,918   Total assets $ 574,392   $ 596,935     $ 589,756               LIABILITIES AND EQUITY           Current liabilities           Accounts payable $ 6,258   $ 5,836     $ 5,652   Accrued liabilities   30,242     32,607       18,161   Current portion of debt obligations, net   33,396     21,198       19,737   Current portion of operating lease liabilities   3,379     3,314       3,073   Total current liabilities   73,275     62,955       46,623   Deferred tax liability, net   19,466     21,689       21,451   Debt, net of current portion and debt discount and issuance costs   215,325     214,583       221,725   Operating lease liabilities, net of current portion   25,628     27,320       26,677   Other long-term liabilities   8,167     9,509       4,741   Total liabilities   341,861     336,056       321,217               Commitments and contingencies                       Equity           Preferred stock   —     —       —   Common stock   77     87       88   Additional paid-in capital   26,880     50,908       55,925   Retained earnings   203,094     210,106       212,772   Total RCIHH stockholders' equity   230,051     261,101       268,785   Noncontrolling interests   2,480     (222 )     (246 ) Total equity   232,531     260,879       268,539   Total liabilities and equity $ 574,392   $ 596,935     $ 589,756   RCI HOSPITALITY HOLDINGS, INC. NON-GAAP FINANCIAL MEASURES (in thousands, except per share, number of shares, and percentage data)                   Three Months Ended
March 31,   Six Months Ended
March 31,   2026   2025   2026   2025 Reconciliation of GAAP net income (loss) to Adjusted EBITDA               Net income (loss) attributable to RCIHH common stockholders $ (326 )   $ 3,231     $ (5,060 )   $ 12,255   Income tax expense (benefit)   (398 )     1,068       1,151       2,915   Interest expense, net   4,433       3,909       8,684       7,882   Depreciation and amortization   4,017       3,776       8,204       7,345   Impairment of assets   7,270       1,780       8,433       1,780   Settlement of lawsuits, net of recoveries   207       127       (595 )     306   Stock-based compensation   197       118       589       588   Loss (gain) on sale of businesses and assets   218       220       251       (1,186 ) Gain on insurance   (46 )     —       (223 )     (1,017 ) Premium on stock repurchase   —       —       9,885       —   Gain on lease termination   —       —       —       (979 ) Adjusted EBITDA $ 15,572     $ 14,229     $ 31,319     $ 29,889   Adjusted EBITDA as a percentage of revenues   22.7 %     21.6 %     22.4 %     21.8 %                 Reconciliation of GAAP net income (loss) to non-GAAP net income               Net income (loss) attributable to RCIHH common stockholders $ (326 )   $ 3,231     $ (5,060 )   $ 12,255   Amortization of intangibles   620       577       1,235       1,157   Impairment of assets   7,270       1,780       8,433       1,780   Settlement of lawsuits, net of recoveries   207       127       (595 )     306   Stock-based compensation   197       118       589       588   Loss (gain) on sale of businesses and assets   218       220       251       (1,186 ) Gain on insurance   (46 )     —       (223 )     (1,017 ) Premium on stock repurchase   —       —       9,885       —   Gain on lease termination   —       —       —       (979 ) Net income tax effect   (2,075 )     (263 )     (2,336 )     47   Non-GAAP net income $ 6,065     $ 5,790     $ 12,179     $ 12,951                   Reconciliation of GAAP diluted earnings (loss) per share to non-GAAP diluted earnings per share               Diluted shares   7,741,522       8,861,854       8,021,747       8,891,638   GAAP diluted earnings (loss) per share $ (0.04 )   $ 0.36     $ (0.63 )   $ 1.38   Amortization of intangibles   0.08       0.07       0.15       0.13   Impairment of assets   0.94       0.20       1.05       0.20   Settlement of lawsuits, net of recoveries   0.03       0.01       (0.07 )     0.03   Stock-based compensation   0.03       0.01       0.07       0.07   Loss (gain) on sale of businesses and assets   0.03       0.02       0.03       (0.13 ) Gain on insurance   (0.01 )     —       (0.03 )     (0.11 ) Premium on stock repurchase   —       —       1.23       —   Gain on lease termination   —       —       —       (0.11 ) Net income tax effect   (0.27 )     (0.03 )     (0.29 )     0.01   Non-GAAP diluted earnings per share $ 0.78   $ 0.65     $ 1.52     $ 1.46   Three Months Ended
March 31,   Six Months Ended
March 31,   2026   2025   2026   2025 Reconciliation of GAAP operating income to non-GAAP operating income               Income from operations $ 3,812     $ 8,171     $ 14,848     $ 22,077   Amortization of intangibles   620       577       1,235       1,157   Impairment of assets   7,270       1,780       8,433       1,780   Settlement of lawsuits, net of recoveries   207       127       (595 )     306   Stock-based compensation   197       118       589       588   Loss (gain) on sale of businesses and assets   218       220       251       (1,186 ) Gain on insurance   (46 )     —       (223 )     (1,017 ) Non-GAAP operating income $ 12,278     $ 10,993     $ 24,538     $ 23,705                   Reconciliation of GAAP operating margin to non-GAAP operating margin               GAAP operating margin   5.5 %     12.4 %     10.6 %     16.1 % Amortization of intangibles   0.9 %     0.9 %     0.9 %     0.8 % Impairment of assets   10.6 %     2.7 %     6.0 %     1.3 % Settlement of lawsuits, net of recoveries   0.3 %     0.2 %     (0.4 )%     0.2 % Stock-based compensation   0.3 %     0.2 %     0.4 %     0.4 % Loss (gain) on sale of businesses and assets   0.3 %     0.3 %     0.2 %     (0.9 )% Gain on insurance   (0.1 )%     — %     (0.2 )%     (0.7 )% Non-GAAP operating margin   17.9 %     16.7 %     17.6 %     17.3 %                 Reconciliation of net cash provided by operating activities to free cash flow               Net cash provided by operating activities $ 9,881     $ 8,547     $ 17,697     $ 21,891   Less: Maintenance capital expenditures   1,462       1,611       2,598       2,887   Free cash flow $ 8,419     $ 6,936     $ 15,099     $ 19,004   Free cash flow as a percentage of revenues   12.3 %     10.5 %     10.8 %     13.8 % RCI HOSPITALITY HOLDINGS, INC. NON-GAAP SEGMENT INFORMATION ($ in thousands)                                           Three Months Ended March 31, 2026   Three Months Ended March 31, 2025   Nightclubs   Bombshells   Other   Corporate   Total   Nightclubs   Bombshells   Other   Corporate   Total Income (loss) from operations $ 10,758     $ (267 )   $ (112 )   $ (6,567 )   $ 3,812     $ 14,532     $ (245 )   $ (171 )   $ (5,945 )   $ 8,171   Amortization of intangibles   618       —       —       2       620       572       1       —       4       577   Impairment of assets   7,270       —       —       —       7,270       1,780       —       —       —       1,780   Settlement of lawsuits, net of recoveries   142       65       —       —       207       97       30       —       —       127   Stock-based compensation   —       —       —       197       197       —       —       —       118       118   Loss (gain) on sale of businesses and assets   218       2       —       (2 )     218       93       129       —       (2 )     220   Gain on insurance   (46 )     —       —       —       (46 )     —       —       —       —       —   Non-GAAP operating income (loss) $ 18,960     $ (200 )   $ (112 )   $ (6,370 )   $ 12,278     $ 17,074     $ (85 )   $ (171 )   $ (5,825 )   $ 10,993                                           GAAP operating margin   17.8 %     (3.2 )%     (127.3 )%     (9.6 )%     5.5 %     25.3 %     (3.0 )%     (161.3 )%     (9.0 )%     12.4 % Non-GAAP operating margin   31.5 %     (2.4 )%     (127.3 )%     (9.3 )%     17.9 %     29.7 %     (1.0 )%     (161.3 )%     (8.8 )%     16.7 %                                           Six Months Ended March 31, 2026   Six Months Ended March 31, 2025   Nightclubs   Bombshells   Other   Corporate   Total   Nightclubs   Bombshells   Other   Corporate   Total Income (loss) from operations $ 29,480     $ (406 )   $ (262 )   $ (13,964 )   $ 14,848     $ 35,385     $ 1,700     $ (274 )   $ (14,734 )   $ 22,077   Amortization of intangibles   1,231       —       —       4       1,235       1,146       2       —       9       1,157   Impairment of assets   8,433       —       —       —       8,433       1,780       —       —       —       1,780   Settlement of lawsuits, net of recoveries   (685 )     90       —       —       (595 )     276       30       —       —       306   Stock-based compensation   —       —       —       589       589       —       —       —       588       588   Loss (gain) on sale of businesses and assets   240       6       —       5       251       109       (1,201 )     —       (94 )     (1,186 ) Gain on insurance   (223 )     —       —       —       (223 )     (1,017 )     —       —       —       (1,017 ) Non-GAAP operating income (loss) $ 38,476     $ (310 )   $ (262 )   $ (13,366 )   $ 24,538     $ 37,679     $ 531     $ (274 )   $ (14,231 )   $ 23,705                                           GAAP operating margin   24.0 %     (2.4 )%     (115.9 )%     (10.0 )%     10.6 %     29.7 %     9.5 %     (98.6 )%     (10.7 )%     16.1 % Non-GAAP operating margin   31.4 %     (1.9 )%     (115.9 )%     (9.6 )%     17.6 %     31.6 %     3.0 %     (98.6 )%     (10.4 )%     17.3 %   View source version on businesswire.com: https://www.businesswire.com/news/home/20260527992474/en/ Media & Investor Contacts
Gary Fishman and Michael Wichman at 212-883-0655 or gfishman@pondel.com and mwichman@pondel.com. Original: RCI Files 10-Q and Reports Results for 2Q26

RCI Receives Anticipated Nasdaq Letter Related to 2Q26 10-QMay 22, 2026 4:05 PM
Business Wire On May 20, 2026, RCI Hospitality Holdings, Inc. (Nasdaq: RICK) received an anticipated letter from the Nasdaq Stock Market notifying the Company of its noncompliance with Listing Rule 5250(c)(1) requiring the timely filing of reports with the SEC. RCI has not yet filed its Form 10-Q for the second quarter ended March 31, 2026. Nasdaq’s letter has no immediate effect on the Company’s common stock listing. Under Nasdaq’s rules, RCI has until July 20, 2026, to file its 10-Q or submit a plan to regain compliance. RCI intends to file its 10-Q as soon as practicable. If the Company is unable to do so, it will submit a compliance plan on or prior to July 20, 2026. If Nasdaq accepts it, the exchange may grant an exception of up to 180 calendar days from the 10-Q’s due date, or until November 16, 2026. The Company may regain compliance at any time prior to that date by filing its 10-Q and all subsequent required periodic filings that are due within that period. If Nasdaq does not accept RCI's plan, the Company can appeal that decision to a Nasdaq panel. Forward-Looking Statements This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the Company's actual results to differ materially from those indicated, including, but not limited to, the risks and uncertainties associated with (i) operating and managing an adult entertainment or restaurant business, (ii) the business climates in cities where it operates, (iii) the success or lack thereof in launching and building the Company's businesses, (iv) cyber security, (v) conditions relevant to real estate transactions, (vi) numerous other factors such as laws governing the operation of adult entertainment or restaurant businesses, competition and dependence on key personnel, and (vii) our ability to regain and maintain compliance with the filing requirements of the U.S. Securities and Exchange Commission (“SEC”) and the Nasdaq Stock Market. For more detailed discussion of such factors and certain risks and uncertainties, see RCI's annual report on Form 10-K for the year ended September 30, 2025, as well as its other filings with the SEC. The Company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances. View source version on businesswire.com: https://www.businesswire.com/news/home/20260522087618/en/ Media & Investor Contacts Gary Fishman and Michael Wichman at 212-883-0655 or gfishman@pondel.com and mwichman@pondel.com Original: RCI Receives Anticipated Nasdaq Letter Related to 2Q26 10-Q

RCI in Compliance with Nasdaq Periodic Filing Requirement; Files Form 12b-25 for Form 10-Q for Quarter Ended March 31, 2026May 11, 2026 4:05 PM
Business Wire RCI Hospitality Holdings, Inc. (Nasdaq: RICK) received a letter from the Listing Qualifications Department of The Nasdaq Stock Market on Friday, May 8, 2026, notifying the Company that it is in compliance with Listing Rule 5250(c)(1) based on the May 7, 2026, filing of its Form 10-Q for the fiscal 2026 first quarter ended December 31, 2025. Accordingly, this matter is now closed with Nasdaq. RCI also said it has filed a Form 12b-25 reporting that the Company has not had sufficient time to complete its Form 10-Q for the fiscal 2026 second quarter ended March 31, 2026, and will be unable to timely file the report without unreasonable effort and expense. RCI is diligently working to complete and file the 10-Q as soon as possible, but does not anticipate filing it within the Rule 12b-25 extension period. About RCI Hospitality Holdings, Inc. (Nasdaq: RICK) (X: @RCIHHinc) With more than 60 locations, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country’s leading Company in adult nightclubs and sports bars-restaurants. See all our brands at www.rcihospitality.com. Forward-Looking Statements This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the Company's actual results to differ materially from those indicated, including, but not limited to, the risks and uncertainties associated with (i) operating and managing an adult entertainment or restaurant business, (ii) the business climates in cities where it operates, (iii) the success or lack thereof in launching and building the Company's businesses, (iv) cyber security, (v) conditions relevant to real estate transactions, (vi) numerous other factors such as laws governing the operation of adult entertainment or restaurant businesses, competition and dependence on key personnel, and (vii) our ability to maintain compliance with the filing requirements of the U.S. Securities and Exchange Commission (“SEC”) and the Nasdaq Stock Market. For more detailed discussion of such factors and certain risks and uncertainties, see RCI's annual report on Form 10-K for the year ended September 30, 2025, as well as its other filings with the SEC. The Company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances. View source version on businesswire.com: https://www.businesswire.com/news/home/20260511462296/en/ Media & Investor Contacts
Gary Fishman and Michael Wichman at 212-883-0655 or gfishman@pondel.com and mwichman@pondel.com Original: RCI in Compliance with Nasdaq Periodic Filing Requirement; Files Form 12b-25 for Form 10-Q for Quarter Ended March 31, 2026

RCI Receives Nasdaq Extension to File 10-QMarch 30, 2026 4:05 PM
Business Wire
On March 27, 2026, RCI Hospitality Holdings, Inc. (Nasdaq: RICK) received a letter from the Nasdaq Stock Market granting a filing exception for its Form 10-Q for the first quarter ended December 31, 2025. On March 26, 2026, RCI had submitted to Nasdaq its plan to regain compliance.


In the letter, Nasdaq said the Company now has until June 29, 2026 to file and comply with Listing Rule 5250(c)(1). RCI said the extension facilitates its plan for an anticipated April 2026 filing of the 10-Q.


Forward-Looking Statements


This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the Company's actual results to differ materially from those indicated, including, but not limited to, the risks and uncertainties associated with (i) operating and managing an adult entertainment or restaurant business, (ii) the business climates in cities where it operates, (iii) the success or lack thereof in launching and building the Company's businesses, (iv) cyber security, (v) conditions relevant to real estate transactions, (vi) numerous other factors such as laws governing the operation of adult entertainment or restaurant businesses, competition and dependence on key personnel, and (vii) our ability to regain and maintain compliance with the filing requirements of the SEC and the Nasdaq Stock Market. For more detailed discussion of such factors and certain risks and uncertainties, see RCI's annual report on Form 10-K for the year ended September 30, 2025, as well as its other filings with the U.S. Securities and Exchange Commission. The Company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260330415304/en/
Gary Fishman and Michael Wichman at 212-883-0655 or gfishman@pondel.com and mwichman@pondel.com.


Original: RCI Receives Nasdaq Extension to File 10-Q

RCI Files 10-K, Reports 4Q25 & FY25 Results, Hosts X Spaces Call at 4:30 PM ET TodayMarch 19, 2026 4:05 PM
Business Wire
RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today filed its Form 10-K and reported results for the fiscal 2025 fourth quarter and year ended September 30, 2025.




Summary Financials (in millions, except EPS)






4Q25





 

4Q24





 

FY25





 

FY24





 



Total revenues






$70.9





 

$73.2





 

$279.4





 

$295.6





 



EPS






$(0.63)





 

$0.03





 

$1.23





 

$0.33





 



Non-GAAP EPS1






$(0.12)





 

$1.63





 

$2.12





 

$4.72





 



Impairments and other charges, net






$3.7





 

$10.1





 

$5.9





 

$36.6





 



Net cash provided by operating activities






$13.7





 

$15.7





 

$49.4





 

$55.9





 



Free cash flow1






$13.1





 

$13.2





 

$45.4





 

$48.4





 



Net income (loss) attributable to RCIHH common stockholders






$(5.5)





 

$0.2





 

$10.8





 

$3.0





 



Adjusted EBITDA1






$7.4





 

$17.9





 

$52.6





 

$72.6





 



Weighted average shares used in computing EPS – basic and diluted






8.72





 

9.01





 

8.82





 

9.25





 



1 See “Non-GAAP Financial Measures” below.







Summary (Comparisons are to year-ago periods unless indicated otherwise)


Travis Reese, Interim President and CEO, said: "Fourth quarter results primarily reflect higher non-cash legal accrual, increased taxes, and lower non-cash impairment. While net cash provided by operating activities was below last year, free cash flow remained approximately level. As previously reported, Nightclubs revenues were also nearly level despite continued economic uncertainty. Bombshells revenues mainly reflected the year-ago divestiture/closure of underperforming locations."


"During and after the fourth quarter, we continued to execute our Back to Basics 5-Year Capital Allocation Plan. As of March 13, 2026, we had reduced our share count by approximately 14% since the end of fiscal 2024, to 7,710,000. We sold two small underperforming clubs for $1.7 million and a 49% interest in Rick's Cabaret Austin for $1.8 million. We also opened Bombshells Lubbock and reopened a reformatted club in Dallas, which together generated $2.9 million in 1Q26 sales."


"In FY26, we are focused on improving club and restaurant operations, selling excess real estate and underperforming locations (which we estimate have a combined value of approximately $32 million), and deploying the proceeds — along with cash from operations — to acquire additional clubs, reduce debt, or repurchase shares."


X Spaces Conference Call at 4:30 PM ET Today



Call link: https://x.com/i/spaces/1NGaraDpQRqJj (X log in required).



Presentation link: https://www.rcihospitality.com/investor-relations/.



To ask questions: Participants must join the X Space using a mobile device.



To listen only: Participants can access the X Space from a computer.



There will be no other types of telephone or webcast access.



4Q25 Results (Comparisons are to year-ago periods unless indicated otherwise)


Nightclubs segment: Revenues of $60.9 million increased by 0.4%. Sales reflected $3.2 million from four new clubs acquired or opened in 2Q25 and 3Q25, sales from two smaller rebranded/reformatted Texas clubs not in SSS, a 4.4% decline in same-store sales, and reduced sales from the closing of Dallas Showclub in 4Q25 for reformatting and the Baby Dolls Fort Worth due to fire in 4Q24.2


By revenue type, food, merchandise and other increased 4.3%, service increased 1.5%, and alcoholic beverages declined 2.0%. Other net charges totaled $2.1 million compared to $6.9 million, primarily reflecting impairments in both periods.


Operating income was $16.3 million (26.8% of segment revenues) compared to income of $13.0 million (21.5%). Non-GAAP operating income, which excludes other net charges (mainly impairments), was $19.1 million (31.3% of segment revenues) compared to $20.5 million (33.8%).


Bombshells segment: Revenues of $9.4 million declined 21.4%. Sales reflected the divestiture/closure of five underperforming locations in 4Q24 and 1Q25, a 19.5% SSS decline, and the opening of new locations in Denver, CO, in January 2025 and Lubbock, TX, in early July 2025.2


Other net charges totaled $1.6 million compared to $3.2 million, primarily reflecting impairments in both periods.


Operating loss was $1.6 million (-16.9% of segment revenues) compared to a loss of $2.6 million (-21.5%). Non-GAAP operating income, which excludes other net charges (mainly impairments), was $29,000 (0.3% of segment revenues) compared to income of $0.6 million (5.4%).


Corporate segment: Expenses totaled $15.4 million (21.8% of total revenues) compared to $7.1 million (9.7%). Non-GAAP expenses totaled $15.0 million (21.2% of total revenues) compared to $6.6 million (9.0%). Most of the year over year change reflected the establishment of a legal accrual.


Impairments and other charges, net within consolidated operations totaled $3.7 million compared to $10.1 million.


Income tax was a $1.0 million expense compared to a $0.8 million benefit.


Weighted average shares outstanding of 8.72 million declined 3.2% due to share buybacks.


Debt of $235.8 million at September 30, 2025 declined 2.3% from June 30, 2025, primarily reflecting scheduled pay downs. Compared to a year ago, debt declined 1.0%.




2 See our October 9, 2025 news release on 4Q25 sales for more details.







Non-GAAP Financial Measures


In addition to our financial information presented in accordance with GAAP, management uses certain non-GAAP financial measures, within the meaning of the SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Generally, a non-GAAP financial measure is a numerical measure of a company’s operating performance, financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and presented in accordance with GAAP. We monitor non-GAAP financial measures because it describes the operating performance of the Company and helps management and investors gauge our ability to generate cash flow, excluding (or including) some items that management believes are not representative of the ongoing business operations of the Company, but are included in (or excluded from) the most directly comparable measures calculated and presented in accordance with GAAP. Relative to each of the non-GAAP financial measures, we further set forth our rationale as follows:


Non-GAAP Operating Income and Non-GAAP Operating Margin. We calculate non-GAAP operating income and non-GAAP operating margin by excluding the following items from income (loss) from operations and operating margin: (a) amortization of intangibles, (b) impairment of assets, (c) gains or losses on sale of businesses and assets, (d) gains or losses on insurance, (e) settlement of lawsuits, and (f) stock-based compensation. We believe that excluding these items assists investors in evaluating period-over-period changes in our operating income (loss) and operating margin without the impact of items that are not a result of our day-to-day business and operations.


Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) per Diluted Share. We calculate non-GAAP net income (loss) and non-GAAP net income (loss) per diluted share by excluding or including certain items to net income (loss) attributable to RCIHH common stockholders and diluted earnings (loss) per share. Adjustment items are: (a) amortization of intangibles, (b) impairment of assets, (c) gains or losses on sale of businesses and assets, (d) gains or losses on insurance, (e) settlement of lawsuits, (f) gain on lease termination, (g) stock-based compensation, (h) the income tax effect of the above-described adjustments, and (i) change in deferred tax asset valuation allowance. Included in the income tax effect of the above adjustments is the net effect of the non-GAAP provision for income taxes, calculated at 22.7%, 0.0%, and 20.6% effective tax rate of the non-GAAP income (loss) before taxes for 2025, 2024, and 2023, respectively, and the GAAP income tax expense (benefit). We believe that excluding and including such items help management and investors better understand our operating activities.


Adjusted EBITDA. We calculate adjusted EBITDA by excluding the following items from net income (loss) attributable to RCIHH common stockholders: (a) depreciation and amortization, (b) income tax expense (benefit), (c) net interest expense, (d) gains or losses on sale of businesses and assets, (e) gains or losses on insurance, (f) impairment of assets, (g) settlement of lawsuits, (h) gain on lease termination, and (i) stock-based compensation. We believe that adjusting for such items helps management and investors better understand our operating activities. Adjusted EBITDA provides a core operational performance measurement that compares results without the need to adjust for federal, state and local taxes which have considerable variation between domestic jurisdictions. The results are, therefore, without consideration of financing alternatives of capital employed. We use adjusted EBITDA as one guideline to assess the unleveraged performance return on our investments. Adjusted EBITDA multiple is also used as a target benchmark for our acquisitions of nightclubs.


We also use certain non-GAAP cash flow measures such as free cash flow. Free cash flow is derived from net cash provided by operating activities less maintenance capital expenditures. We use free cash flow as the baseline for the implementation of our capital allocation strategy.


Accounting Standards Update (ASU) 2023-07


The Company has adopted Accounting Standards Update (ASU) 2023-07, which requires enhanced reportable segment disclosures. As a result, certain prior-year segment information has been recast.


About RCI Hospitality Holdings, Inc. (Nasdaq: RICK) (X: @RCIHHinc)


With more than 60 locations, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country’s leading company in adult nightclubs and sports bars-restaurants. See all our brands at www.rcihospitality.com.


Forward-Looking Statements


This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the Company's actual results to differ materially from those indicated, including, but not limited to, the risks and uncertainties associated with (i) operating and managing an adult entertainment or restaurant business, (ii) the business climates in cities where it operates, (iii) the success or lack thereof in launching and building the Company's businesses, (iv) cyber security, (v) conditions relevant to real estate transactions, and (vi) numerous other factors such as laws governing the operation of adult entertainment or restaurant businesses, competition and dependence on key personnel, and (vii) our ability to regain and maintain compliance with the filing requirements of the SEC and the Nasdaq Stock Market. For more detailed discussion of such factors and certain risks and uncertainties, see RCI's annual report on Form 10-K for the year ended September 30, 2025, as well as its other filings with the U.S. Securities and Exchange Commission. The Company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.




RCI HOSPITALITY HOLDINGS, INC.








CONSOLIDATED STATEMENTS OF INCOME








(in thousands, except per share, number of shares, and percentage data)








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






Three Months Ended






 






Twelve Months Ended








 






September 30, 2025






 






September 30, 2024






 






September 30, 2025






 






September 30, 2024








 






Amount






 






% of Revenue






 






Amount






 






% of Revenue






 






Amount






 






% of Revenue






 






Amount






 






% of Revenue








Revenues






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Sales of alcoholic beverages






$






30,290






 






 






42.7






%






 






$






32,459






 






 






44.3






%






 






$






122,124






 






 






43.7






%






 






$






133,124






 






 






45.0






%








Sales of food and merchandise






 






10,417






 






 






14.7






%






 






 






11,000






 






 






15.0






%






 






 






39,971






 






 






14.3






%






 






 






44,606






 






 






15.1






%








Service revenues






 






24,817






 






 






35.0






%






 






 






24,504






 






 






33.5






%






 






 






97,079






 






 






34.7






%






 






 






98,455






 






 






33.3






%








Other






 






5,406






 






 






7.6






%






 






 






5,271






 






 






7.2






%






 






 






20,260






 






 






7.3






%






 






 






19,419






 






 






6.6






%








Total revenues






 






70,930






 






 






100.0






%






 






 






73,234






 






 






100.0






%






 






 






279,434






 






 






100.0






%






 






 






295,604






 






 






100.0






%








Operating expenses






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Cost of goods sold






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Alcoholic beverages sold






 






5,513






 






 






18.2






%






 






 






5,783






 






 






17.8






%






 






 






22,143






 






 






18.1






%






 






 






24,228






 






 






18.2






%








Food and merchandise sold






 






3,854






 






 






37.0






%






 






 






4,132






 






 






37.6






%






 






 






14,118






 






 






35.3






%






 






 






16,360






 






 






36.7






%








Service and other






 






243






 






 






0.8






%






 






 






286






 






 






1.0






%






 






 






376






 






 






0.3






%






 






 






397






 






 






0.3






%








Total cost of goods sold (exclusive of items shown below)






 






9,610






 






 






13.5






%






 






 






10,201






 






 






13.9






%






 






 






36,637






 






 






13.1






%






 






 






40,985






 






 






13.9






%








Salaries and wages






 






21,694






 






 






30.6






%






 






 






20,878






 






 






28.5






%






 






 






83,665






 






 






29.9






%






 






 






84,177






 






 






28.5






%








Selling, general and administrative






 






32,592






 






 






45.9






%






 






 






24,761






 






 






33.8






%






 






 






107,839






 






 






38.6






%






 






 






99,672






 






 






33.7






%








Depreciation and amortization






 






3,841






 






 






5.4






%






 






 






3,757






 






 






5.1






%






 






 






15,078






 






 






5.4






%






 






 






15,395






 






 






5.2






%








Impairments and other charges, net






 






3,716






 






 






5.2






%






 






 






10,118






 






 






13.8






%






 






 






5,948






 






 






2.1






%






 






 






36,570






 






 






12.4






%








Total operating expenses






 






71,453






 






 






100.7






%






 






 






69,715






 






 






95.2






%






 






 






249,167






 






 






89.2






%






 






 






276,799






 






 






93.6






%








Income (loss) from operations






 






(523






)






 






(0.7






)%






 






 






3,519






 






 






4.8






%






 






 






30,267






 






 






10.8






%






 






 






18,805






 






 






6.4






%








Other income (expenses)






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Interest expense






 






(4,120






)






 






(5.8






)%






 






 






(4,224






)






 






(5.8






)%






 






 






(16,352






)






 






(5.9






)%






 






 






(16,679






)






 






(5.6






)%








Interest income






 






130






 






 






0.2






%






 






 






162






 






 






0.2






%






 






 






565






 






 






0.2






%






 






 






482






 






 






0.2






%








Gain on lease termination and other, net






 






(6






)






 






0.0






%






 






 






—






 






 






0.0






%






 






 






968






 






 






0.3






%






 






 






—






 






 






—






%








Income (loss) before income taxes






 






(4,519






)






 






(6.4






)%






 






 






(543






)






 






(0.7






)%






 






 






15,448






 






 






5.5






%






 






 






2,608






 






 






0.9






%








Income tax expense (benefit)






 






961






 






 






1.4






%






 






 






(788






)






 






(1.1






)%






 






 






4,609






 






 






1.6






%






 






 






(410






)






 






(0.1






)%








Net income (loss)






 






(5,480






)






 






(7.7






)%






 






 






245






 






 






0.3






%






 






 






10,839






 






 






3.9






%






 






 






3,018






 






 






1.0






%








Net income attributable to noncontrolling interests






 






(22






)






 






0.0






%






 






 






(1






)






 






0.0






%






 






 






(28






)






 






0.0






%






 






 






(7






)






 






0.0






%








Net income (loss) attributable to RCIHH common shareholders






$






(5,502






)






 






(7.8






)%






 






$






244






 






 






0.3






%






 






$






10,811






 






 






3.9






%






 






$






3,011






 






 






1.0






%








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Earnings (loss) per share






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Basic and diluted






$






(0.63






)






 






 






 






$






0.03






 






 






 






 






$






1.23






 






 






 






 






$






0.33






 






 






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Weighted average shares used in computing earnings (loss) per share






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








Basic and diluted






 






8,715,129






 






 






 






 






 






9,006,014






 






 






 






 






 






8,822,758






 






 






 






 






 






9,250,245






 






 






 









RCI HOSPITALITY HOLDINGS, INC.








SEGMENT INFORMATION








(in thousands)








 






 






 






 






 






 






 






 








 






Three Months Ended






 






Twelve Months Ended








 






September 30,




2025






 






September 30,




2024






 






September 30,




2025






 






September 30,




2024








Revenues






 






 






 






 






 






 






 








Nightclubs






$






60,900






 






 






$






60,636






 






 






$






242,501






 






 






$






243,864






 








Bombshells






 






9,385






 






 






 






11,937






 






 






 






35,810






 






 






 






50,578






 








Other






 






645






 






 






 






661






 






 






 






1,123






 






 






 






1,162






 








 






$






70,930






 






 






$






73,234






 






 






$






279,434






 






 






$






295,604






 








 






 






 






 






 






 






 






 








Income (loss) from operations






 






 






 






 






 






 






 








Nightclubs






$






16,325






 






 






$






13,028






 






 






$






69,569






 






 






$






57,912






 








Bombshells






 






(1,590






)






 






 






(2,569






)






 






 






177






 






 






 






(10,783






)








Other






 






175






 






 






 






160






 






 






 






(169






)






 






 






(137






)








Corporate






 






(15,433






)






 






 






(7,100






)






 






 






(39,310






)






 






 






(28,187






)








 






$






(523






)






 






$






3,519






 






 






$






30,267






 






 






$






18,805






 









RCI HOSPITALITY HOLDINGS, INC.








CONSOLIDATED STATEMENTS OF CASH FLOWS








(in thousands)








 






 






 






 






 






 






 






 








 






Three Months Ended






 






Twelve Months Ended








 






September 30,




2025






 






September 30,




2024






 






September 30,




2025






 






September 30,




2024








CASH FLOWS FROM OPERATING ACTIVITIES






 






 






 






 






 






 






 








Net income (loss)






$






(5,480






)






 






$






245






 






 






$






10,839






 






 






$






3,018






 








Adjustments to reconcile net income (loss) to net cash provided by operating activities:






 






 






 






 






 






 






 








Depreciation and amortization






 






3,841






 






 






 






3,757






 






 






 






15,078






 






 






 






15,395






 








Impairment of assets






 






3,560






 






 






 






12,553






 






 






 






5,340






 






 






 






38,517






 








Deferred income tax expense (benefit)






 






1,196






 






 






 






(31






)






 






 






(1,004






)






 






 






(6,450






)








Loss (gain) on sale of businesses and assets






 






194






 






 






 






(2,331






)






 






 






(1,032






)






 






 






(2,215






)








Amortization and writeoff of debt discount and issuance costs






 






129






 






 






 






146






 






 






 






549






 






 






 






608






 








Credit loss expense (reversal) on notes receivable






 






15






 






 






 






(22






)






 






 






42






 






 






 






—






 








Gain on insurance






 






(208






)






 






 






(522






)






 






 






(2,087






)






 






 






(522






)








Noncash lease expense






 






724






 






 






 






662






 






 






 






2,726






 






 






 






2,980






 








Stock-based compensation






 






393






 






 






 






470






 






 






 






1,373






 






 






 






1,882






 








Changes in operating assets and liabilities, net of business acquisitions:






 






 






 






 






 






 






 








Receivables






 






672






 






 






 






1,231






 






 






 






1,943






 






 






 






4,283






 








Inventories






 






(110






)






 






 






(97






)






 






 






(20






)






 






 






(309






)








Prepaid expenses, other current, and other assets






 






(1,641






)






 






 






1,063






 






 






 






(1,241






)






 






 






(2,421






)








Accounts payable, accrued, and other liabilities






 






10,449






 






 






 






(1,473






)






 






 






16,912






 






 






 






1,118






 








Net cash provided by operating activities






 






13,734






 






 






 






15,651






 






 






 






49,418






 






 






 






55,884






 








CASH FLOWS FROM INVESTING ACTIVITIES






 






 






 






 






 






 






 








Proceeds from sale of businesses and assets






 






7






 






 






 






19






 






 






 






1,093






 






 






 






1,969






 








Proceeds from insurance






 






208






 






 






 






1,367






 






 






 






2,101






 






 






 






1,367






 








Proceeds from notes receivable






 






69






 






 






 






70






 






 






 






292






 






 






 






249






 








Payments for property and equipment and intangible assets






 






(2,238






)






 






 






(5,381






)






 






 






(14,527






)






 






 






(24,600






)








Acquisition of businesses, net of cash acquired






 






—






 






 






 






—






 






 






 






(13,000






)






 






 






—






 








Net cash used in investing activities






 






(1,954






)






 






 






(3,925






)






 






 






(24,041






)






 






 






(21,015






)








CASH FLOWS FROM FINANCING ACTIVITIES






 






 






 






 






 






 






 








Proceeds from debt obligations






 






1,713






 






 






 






—






 






 






 






10,888






 






 






 






22,657






 








Payments on debt obligations






 






(6,071






)






 






 






(5,864






)






 






 






(20,502






)






 






 






(23,001






)








Purchase of treasury stock






 






(2,702






)






 






 






(7,831






)






 






 






(11,860






)






 






 






(20,606






)








Payment of dividends






 






(608






)






 






 






(628






)






 






 






(2,464






)






 






 






(2,302






)








Payment of loan origination costs






 






—






 






 






 






—






 






 






 






(80






)






 






 






(290






)








Net cash used in financing activities






 






(7,668






)






 






 






(14,323






)






 






 






(24,018






)






 






 






(23,542






)








NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH






 






4,112






 






 






 






(2,597






)






 






 






1,359






 






 






 






11,327






 








CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD






 






29,597






 






 






 






34,947






 






 






 






32,350






 






 






 






21,023






 








CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD






$






33,709






 






 






$






32,350






 






 






$






33,709






 






 






$






32,350






 









RCI HOSPITALITY HOLDINGS, INC.








CONSOLIDATED BALANCE SHEETS








(in thousands)








 






 






 






 








 






September 30,




2025






 






September 30,




2024








ASSETS






 






 






 








Current assets






 






 






 








Cash and cash equivalents






$






33,709






 






 






$






32,350






 








Receivables, net






 






3,940






 






 






 






5,832






 








Inventories






 






4,857






 






 






 






4,676






 








Prepaid expenses and other current assets






 






4,968






 






 






 






4,427






 








Assets held for sale






 






3,394






 






 






 






—






 








Total current assets






 






50,868






 






 






 






47,285






 








Property and equipment, net






 






279,027






 






 






 






280,075






 








Operating lease right-of-use assets, net






 






25,781






 






 






 






26,231






 








Notes receivable, net of current portion






 






3,849






 






 






 






4,174






 








Goodwill






 






62,725






 






 






 






61,911






 








Intangibles, net






 






171,948






 






 






 






163,461






 








Other assets






 






2,737






 






 






 






1,227






 








Total assets






$






596,935






 






 






$






584,364






 








 






 






 






 








LIABILITIES AND EQUITY






 






 






 








Current liabilities






 






 






 








Accounts payable






$






5,836






 






 






$






5,637






 








Accrued liabilities






 






32,607






 






 






 






20,280






 








Current portion of debt obligations, net






 






21,198






 






 






 






18,871






 








Current portion of operating lease liabilities






 






3,314






 






 






 






3,290






 








Total current liabilities






 






62,955






 






 






 






48,078






 








Deferred tax liability, net






 






21,689






 






 






 






22,693






 








Debt, net of current portion and debt discount and issuance costs






 






214,583






 






 






 






219,326






 








Operating lease liabilities, net of current portion






 






27,320






 






 






 






30,759






 








Other long-term liabilities






 






9,509






 






 






 






398






 








Total liabilities






 






336,056






 






 






 






321,254






 








 






 






 






 








Commitments and contingencies






 






 






 








 






 






 






 








Equity






 






 






 








Preferred stock






 






—






 






 






 






—






 








Common stock






 






87






 






 






 






90






 








Additional paid-in capital






 






50,908






 






 






 






61,511






 








Retained earnings






 






210,106






 






 






 






201,759






 








Total RCIHH stockholders' equity






 






261,101






 






 






 






263,360






 








Noncontrolling interests






 






(222






)






 






 






(250






)








Total equity






 






260,879






 






 






 






263,110






 








Total liabilities and equity






$






596,935






 






 






$






584,364






 









RCI HOSPITALITY HOLDINGS, INC.








NON-GAAP FINANCIAL MEASURES








(in thousands, except per share, number of shares, and percentage data)








 






 






 






 






 






 






 






 








 






Three Months Ended






 






Twelve Months Ended








 






September 30,




2025






 






September 30,




2024






 






September 30,




2025






 






September 30,




2024








Reconciliation of GAAP net income (loss) to Adjusted EBITDA






 






 






 






 






 






 






 








Net income (loss) attributable to RCIHH common stockholders






$






(5,502






)






 






$






244






 






 






$






10,811






 






 






$






3,011






 








Income tax expense (benefit)






 






961






 






 






 






(788






)






 






 






4,609






 






 






 






(410






)








Interest expense, net






 






3,990






 






 






 






4,062






 






 






 






15,787






 






 






 






16,197






 








Depreciation and amortization






 






3,841






 






 






 






3,757






 






 






 






15,078






 






 






 






15,395






 








Impairment of assets






 






3,560






 






 






 






12,553






 






 






 






5,340






 






 






 






38,517






 








Settlement of lawsuits






 






361






 






 






 






212






 






 






 






3,948






 






 






 






520






 








Loss (gain) on sale of businesses and assets






 






2






 






 






 






(2,320






)






 






 






(982






)






 






 






(2,140






)








Gain on insurance






 






(207






)






 






 






(327






)






 






 






(2,358






)






 






 






(327






)








Stock-based compensation






 






393






 






 






 






470






 






 






 






1,373






 






 






 






1,882






 








Gain on lease termination






 






—






 






 






 






—






 






 






 






(979






)






 






 






—






 








Adjusted EBITDA






$






7,399






 






 






$






17,863






 






 






$






52,627






 






 






$






72,645






 








 






 






 






 






 






 






 






 








Reconciliation of GAAP net income (loss) to non-GAAP net income (loss)






 






 






 






 






 






 






 








Net income (loss) attributable to RCIHH common stockholders






$






(5,502






)






 






$






244






 






 






$






10,811






 






 






$






3,011






 








Amortization of intangibles






 






629






 






 






 






597






 






 






 






2,362






 






 






 






2,494






 








Impairment of assets






 






3,560






 






 






 






12,553






 






 






 






5,340






 






 






 






38,517






 








Settlement of lawsuits






 






361






 






 






 






212






 






 






 






3,948






 






 






 






520






 








Stock-based compensation






 






393






 






 






 






470






 






 






 






1,373






 






 






 






1,882






 








Loss (gain) on sale of businesses and assets






 






2






 






 






 






(2,320






)






 






 






(982






)






 






 






(2,140






)








Gain on insurance






 






(207






)






 






 






(327






)






 






 






(2,358






)






 






 






(327






)








Gain on lease termination






 






—






 






 






 






—






 






 






 






(979






)






 






 






—






 








Change in deferred tax asset valuation allowance






 






64






 






 






 






143






 






 






 






64






 






 






 






143






 








Net income tax effect






 






(352






)






 






 






3,065






 






 






 






(867






)






 






 






(410






)








Non-GAAP net income (loss)






$






(1,052






)






 






$






14,637






 






 






$






18,712






 






 






$






43,690






 








 






 






 






 






 






 






 






 








Reconciliation of GAAP diluted earnings (loss) per share to non-GAAP diluted earnings (loss) per share






 






 






 






 






 






 






 








Diluted shares






 






8,715,129






 






 






 






9,006,014






 






 






 






8,822,758






 






 






 






9,250,245






 








GAAP diluted earnings (loss) per share






$






(0.63






)






 






$






0.03






 






 






$






1.23






 






 






$






0.33






 








Amortization of intangibles






 






0.07






 






 






 






0.07






 






 






 






0.27






 






 






 






0.27






 








Impairment of assets






 






0.41






 






 






 






1.39






 






 






 






0.61






 






 






 






4.16






 








Settlement of lawsuits






 






0.04






 






 






 






0.02






 






 






 






0.45






 






 






 






0.06






 








Stock-based compensation






 






0.05






 






 






 






0.05






 






 






 






0.16






 






 






 






0.20






 








Loss (gain) on sale of businesses and assets






 






—






 






 






 






(0.26






)






 






 






(0.11






)






 






 






(0.23






)








Gain on insurance






 






(0.02






)






 






 






(0.04






)






 






 






(0.27






)






 






 






(0.04






)








Gain on lease termination






 






—






 






 






 






—






 






 






 






(0.11






)






 






 






—






 








Change in deferred tax asset valuation allowance






 






0.01






 






 






 






0.02






 






 






 






0.01






 






 






 






0.02






 








Net income tax effect






 






(0.04






)






 






 






0.34






 






 






 






(0.10






)






 






 






(0.04






)








Non-GAAP diluted earnings (loss) per share






$






(0.12






)






 






$






1.63






 






 






$






2.12






 






 






$






4.72






 









 






Three Months Ended






 






Twelve Months Ended








 






September 30,




2025






 






September 30,




2024






 






September 30,




2025






 






September 30,




2024








Reconciliation of GAAP operating income (loss) to non-GAAP operating income






 






 






 






 






 






 






 








Income (loss) from operations






$






(523






)






 






$






3,519






 






 






$






30,267






 






 






$






18,805






 








Amortization of intangibles






 






629






 






 






 






597






 






 






 






2,362






 






 






 






2,494






 








Impairment of assets






 






3,560






 






 






 






12,553






 






 






 






5,340






 






 






 






38,517






 








Settlement of lawsuits






 






361






 






 






 






212






 






 






 






3,948






 






 






 






520






 








Stock-based compensation






 






393






 






 






 






470






 






 






 






1,373






 






 






 






1,882






 








Loss (gain) on sale of businesses and assets






 






2






 






 






 






(2,320






)






 






 






(982






)






 






 






(2,140






)








Gain on insurance






 






(207






)






 






 






(327






)






 






 






(2,358






)






 






 






(327






)








Non-GAAP operating income






$






4,215






 






 






$






14,704






 






 






$






39,950






 






 






$






59,751






 








 






 






 






 






 






 






 






 








Reconciliation of GAAP operating margin to non-GAAP operating margin






 






 






 






 






 






 






 








GAAP operating margin






 






(0.7






)%






 






 






4.8






%






 






 






10.8






%






 






 






6.4






%








Amortization of intangibles






 






0.9






%






 






 






0.8






%






 






 






0.8






%






 






 






0.8






%








Impairment of assets






 






5.0






%






 






 






17.1






%






 






 






1.9






%






 






 






13.0






%








Settlement of lawsuits






 






0.5






%






 






 






0.3






%






 






 






1.4






%






 






 






0.2






%








Stock-based compensation






 






0.6






%






 






 






0.6






%






 






 






0.5






%






 






 






0.6






%








Loss (gain) on sale of businesses and assets






 






0.0






%






 






 






(3.2






)%






 






 






(0.4






)%






 






 






(0.7






)%








Gain on insurance






 






(0.3






)%






 






 






(0.4






)%






 






 






(0.8






)%






 






 






(0.1






)%








Non-GAAP operating margin






 






5.9






%






 






 






20.1






%






 






 






14.3






%






 






 






20.2






%








 






 






 






 






 






 






 






 








Reconciliation of net cash provided by operating activities to free cash flow






 






 






 






 






 






 






 








Net cash provided by operating activities






$






13,734






 






 






$






15,651






 






 






$






49,418






 






 






$






55,884






 








Less: Maintenance capital expenditures






 






679






 






 






 






2,483






 






 






 






4,020






 






 






 






7,463






 








Free cash flow






$






13,055






 






 






$






13,168






 






 






$






45,398






 






 






$






48,421






 









RCI HOSPITALITY HOLDINGS, INC.








NON-GAAP SEGMENT INFORMATION








($ in thousands)








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






Three Months Ended September 30, 2025






 






Three Months Ended September 30, 2024








 






Nightclubs






 






Bombshells






 






Other






 






Corporate






 






Total






 






Nightclubs






 






Bombshells






 






Other






 






Corporate






 






Total








Income (loss) from operations






$






16,325






 






 






$






(1,590






)






 






$






175






 






 






$






(15,433






)






 






$






(523






)






 






$






13,028






 






 






$






(2,569






)






 






$






160






 






 






$






(7,100






)






 






$






3,519






 








Amortization of intangibles






 






627






 






 






 






—






 






 






 






—






 






 






 






2






 






 






 






629






 






 






 






576






 






 






 






11






 






 






 






—






 






 






 






10






 






 






 






597






 








Impairment of assets






 






2,010






 






 






 






1,550






 






 






 






—






 






 






 






—






 






 






 






3,560






 






 






 






7,039






 






 






 






5,514






 






 






 






—






 






 






 






—






 






 






 






12,553






 








Settlement of lawsuits






 






293






 






 






 






68






 






 






 






—






 






 






 






—






 






 






 






361






 






 






 






157






 






 






 






25






 






 






 






—






 






 






 






30






 






 






 






212






 








Stock-based compensation






 






—






 






 






 






—






 






 






 






—






 






 






 






393






 






 






 






393






 






 






 






—






 






 






 






—






 






 






 






—






 






 






 






470






 






 






 






470






 








Loss (gain) on sale of businesses and assets






 






3






 






 






 






1






 






 






 






—






 






 






 






(2






)






 






 






2






 






 






 






14






 






 






 






(2,332






)






 






 






—






 






 






 






(2






)






 






 






(2,320






)








Gain on insurance






 






(207






)






 






 






—






 






 






 






—






 






 






 






—






 






 






 






(207






)






 






 






(327






)






 






 






—






 






 






 






—






 






 






 






—






 






 






 






(327






)








Non-GAAP operating income (loss)






$






19,051






 






 






$






29






 






 






$






175






 






 






$






(15,040






)






 






$






4,215






 






 






$






20,487






 






 






$






649






 






 






$






160






 






 






$






(6,592






)






 






$






14,704






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








GAAP operating margin






 






26.8






%






 






 






(16.9






)%






 






 






27.1






%






 






 






(21.8






)%






 






 






(0.7






)%






 






 






21.5






%






 






 






(21.5






)%






 






 






24.2






%






 






 






(9.7






)%






 






 






4.8






%








Non-GAAP operating margin






 






31.3






%






 






 






0.3






%






 






 






27.1






%






 






 






(21.2






)%






 






 






5.9






%






 






 






33.8






%






 






 






5.4






%






 






 






24.2






%






 






 






(9.0






)%






 






 






20.1






%








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








 






Twelve Months Ended September 30, 2025






 






Twelve Months Ended September 30, 2024








 






Nightclubs






 






Bombshells






 






Other






 






Corporate






 






Total






 






Nightclubs






 






Bombshells






 






Other






 






Corporate






 






Total








Income (loss) from operations






$






69,569






 






 






$






177






 






 






$






(169






)






 






$






(39,310






)






 






$






30,267






 






 






$






57,912






 






 






$






(10,783






)






 






$






(137






)






 






$






(28,187






)






 






$






18,805






 








Amortization of intangibles






 






2,345






 






 






 






3






 






 






 






—






 






 






 






14






 






 






 






2,362






 






 






 






2,334






 






 






 






137






 






 






 






—






 






 






 






23






 






 






 






2,494






 








Impairment of assets






 






3,790






 






 






 






1,550






 






 






 






—






 






 






 






—






 






 






 






5,340






 






 






 






22,691






 






 






 






15,826






 






 






 






—






 






 






 






—






 






 






 






38,517






 








Settlement of lawsuits






 






3,850






 






 






 






98






 






 






 






—






 






 






 






—






 






 






 






3,948






 






 






 






465






 






 






 






25






 






 






 






—






 






 






 






30






 






 






 






520






 








Stock-based compensation






 






—






 






 






 






—






 






 






 






—






 






 






 






1,373






 






 






 






1,373






 






 






 






—






 






 






 






—






 






 






 






—






 






 






 






1,882






 






 






 






1,882






 








Loss (gain) on sale of businesses and assets






 






303






 






 






 






(1,188






)






 






 






—






 






 






 






(97






)






 






 






(982






)






 






 






(56






)






 






 






(2,322






)






 






 






—






 






 






 






238






 






 






 






(2,140






)








Gain on insurance






 






(2,358






)






 






 






—






 






 






 






—






 






 






 






—






 






 






 






(2,358






)






 






 






(327






)






 






 






—






 






 






 






—






 






 






 






—






 






 






 






(327






)








Non-GAAP operating income (loss)






$






77,499






 






 






$






640






 






 






$






(169






)






 






$






(38,020






)






 






$






39,950






 






 






$






83,019






 






 






$






2,883






 






 






$






(137






)






 






$






(26,014






)






 






$






59,751






 








 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 






 








GAAP operating margin






 






28.7






%






 






 






0.5






%






 






 






(15.0






)%






 






 






(14.1






)%






 






 






10.8






%






 






 






23.7






%






 






 






(21.3






)%






 






 






(11.8






)%






 






 






(9.5






)%






 






 






6.4






%








Non-GAAP operating margin






 






32.0






%






 






 






1.8






%






 






 






(15.0






)%






 






 






(13.6






)%






 






 






14.3






%






 






 






34.0






%






 






 






5.7






%






 






 






(11.8






)%






 






 






(8.8






)%






 






 






20.2






%







 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260318911429/en/
Media & Investor Contacts

Gary Fishman and Michael Wichman at 212-883-0655 or gfishman@pondel.com and mwichman@pondel.com


Original: RCI Files 10-K, Reports 4Q25 & FY25 Results, Hosts X Spaces Call at 4:30 PM ET Today