RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today filed its Form 10-Q and reported results for the fiscal 2026 third quarter ended June 30, 2026.
|
Summary Financials (in millions, except EPS) |
3Q26 |
3Q25 |
9M26 |
9M25 |
|
Total revenues |
$73.9 |
$71.1 |
$213.5 |
$208.5 |
|
EPS |
$0.83 |
$0.46 |
$0.16 |
$1.84 |
|
Non-GAAP EPS1 |
$0.90 |
$0.77 |
$2.41 |
$2.23 |
|
Impairments and other charges, net |
$0.0 |
$2.3 |
$7.9 |
$2.2 |
|
Net cash provided by operating activities |
$11.3 |
$13.8 |
$29.0 |
$35.7 |
|
Free cash flow1 |
$10.6 |
$13.3 |
$25.7 |
$32.3 |
|
Net income attributable to RCIHH common stockholders |
$6.4 |
$4.1 |
$1.3 |
$16.3 |
|
Adjusted EBITDA1 |
$16.9 |
$15.3 |
$48.2 |
$45.2 |
|
Weighted average shares used in computing EPS – basic and diluted |
7.65 |
8.79 |
7.90 |
8.86 |
|
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 another quarter of improved performance in many key metrics. Sales, EPS, non-GAAP EPS, net income attributable to RCIHH common stockholders, and adjusted EBITDA all increased, while we used our strong cash position to continue to buy back shares and reduce debt.”
“Bombshells’ performance was driven by new locations and same-store sales growth of 4.7%, while increased activity related to high-profile professional basketball and soccer events benefited Nightclubs as well as Bombshells. These factors helped offset cautious discretionary spending earlier in 3Q26 due to geopolitical uncertainty and its impact on inflation. Results also reflected lower impairment and insurance costs.”
X Spaces Conference Call at 4:30 PM ET Today
- Call link: https://x.com/i/spaces/1RJjppmBLPVKw/ (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.
3Q26 Results (Comparisons are to year-ago periods unless indicated otherwise)
Nightclubs segment: Revenues of $63.0 million increased by 1.0%. Four newly acquired, opened and reformatted clubs generated $4.0 million sales and the 52 clubs in same-store sales produced $58.5 million, more than offsetting $1.2 million in sales from four clubs closed subsequent to the year-ago quarter.2 By revenue type, service increased 7.6%; food, merchandise and other declined 1.4%; and alcoholic beverages declined 4.2%.
Impairments and other charges, net were immaterial compared to $2.3 million. Operating income was $19.6 million compared to $17.9 million or 31.2% of segment revenues compared to 28.6%. Non-GAAP operating income, which excludes impairments and other net charges, was $20.2 million compared to $20.8 million or 32.1% of segment revenues compared to 33.3%.
Bombshells segment: Revenues of $10.8 million increased 25.4%. Three new locations generated $2.6 million in sales and the nine locations in same-store sales produced $8.2 million. The new locations are Denver, CO (opened January 2025), Lubbock, TX (July 2025), and Rowlett, TX (June 2026).2 By revenue type, alcoholic beverages increased 33.6% and food and other increased 16.6%.
Operating income was $759,000 compared to $67,000 or 7.0% of segment revenues compared to 0.8%. Non-GAAP operating income, which excludes other net charges, was $801,000 compared to $80,000 or 7.4% of segment revenues compared to 0.9%.
Corporate segment: Expenses totaled $7.3 million compared to $9.1 million or 9.9% of total revenues compared to 12.9%. Non-GAAP expenses totaled $7.3 million compared to $8.7 million or 9.9% of total revenues compared to 12.3%. GAAP and non-GAAP expenses reflected lower insurance expense compared to the prior-year period.
Impairments and other charges, net within consolidated operations were insignificant compared to $2.3 million.
Income tax was an expense of $2.1 million compared to $0.7 million or an effective rate of 24.7% compared to 15.3%.
Weighted average shares outstanding of 7.65 million declined 13.0% due to share buybacks.
Debt of $240.1 million at June 30, 2026 declined $8.6 million or 3.5% from $248.7 million at March 31, 2026, primarily reflecting debt paydowns. Compared to a year ago, debt declined $1.2 million or 0.5%.
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2 See our July 9, 2026 news release on 3Q26 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 23.2% and 17.4% effective tax rate of the pre-tax non-GAAP income before taxes for the nine months ended June 30, 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, sports bar 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 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, sports bar 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.
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RCI HOSPITALITY HOLDINGS, INC. |
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CONSOLIDATED STATEMENTS OF INCOME |
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(in thousands, except per share, number of shares, and percentage data) |
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||||||||||||
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Three Months Ended |
|
Nine Months Ended |
||||||||||||||||||||||||
|
|
June 30, 2026 |
|
June 30, 2025 |
|
June 30, 2026 |
|
June 30, 2025 |
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|
Amount |
|
% of Revenue |
|
Amount |
|
% of Revenue |
|
Amount |
|
% of Revenue |
|
Amount |
|
% of Revenue |
||||||||||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
|
Sales of alcoholic beverages |
$ |
31,159 |
|
|
42.1 |
% |
|
$ |
30,780 |
|
|
43.3 |
% |
|
$ |
90,115 |
|
|
42.2 |
% |
|
$ |
91,834 |
|
|
44.0 |
% |
|
Sales of food and merchandise |
|
10,690 |
|
|
14.5 |
% |
|
|
10,037 |
|
|
14.1 |
% |
|
|
30,195 |
|
|
14.1 |
% |
|
|
29,554 |
|
|
14.2 |
% |
|
Service revenues |
|
27,079 |
|
|
36.6 |
% |
|
|
25,169 |
|
|
35.4 |
% |
|
|
78,338 |
|
|
36.7 |
% |
|
|
72,262 |
|
|
34.7 |
% |
|
Other |
|
5,011 |
|
|
6.8 |
% |
|
|
5,159 |
|
|
7.3 |
% |
|
|
14,841 |
|
|
7.0 |
% |
|
|
14,854 |
|
|
7.1 |
% |
|
Total revenues |
|
73,939 |
|
|
100.0 |
% |
|
|
71,145 |
|
|
100.0 |
% |
|
|
213,489 |
|
|
100.0 |
% |
|
|
208,504 |
|
|
100.0 |
% |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
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Cost of goods sold |
|
|
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|
|
|
|
|
|
|
|
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Alcoholic beverages sold |
|
5,655 |
|
|
18.1 |
% |
|
|
5,580 |
|
|
18.1 |
% |
|
|
16,397 |
|
|
18.2 |
% |
|
|
16,630 |
|
|
18.1 |
% |
|
Food and merchandise sold |
|
3,984 |
|
|
37.3 |
% |
|
|
3,519 |
|
|
35.1 |
% |
|
|
11,171 |
|
|
37.0 |
% |
|
|
10,264 |
|
|
34.7 |
% |
|
Service and other |
|
44 |
|
|
0.1 |
% |
|
|
36 |
|
|
0.1 |
% |
|
|
161 |
|
|
0.2 |
% |
|
|
133 |
|
|
0.2 |
% |
|
Total cost of goods sold (exclusive of items shown below) |
|
9,683 |
|
|
13.1 |
% |
|
|
9,135 |
|
|
12.8 |
% |
|
|
27,729 |
|
|
13.0 |
% |
|
|
27,027 |
|
|
13.0 |
% |
|
Salaries and wages |
|
21,860 |
|
|
29.6 |
% |
|
|
20,916 |
|
|
29.4 |
% |
|
|
64,545 |
|
|
30.2 |
% |
|
|
61,971 |
|
|
29.7 |
% |
|
Selling, general and administrative |
|
25,372 |
|
|
34.3 |
% |
|
|
26,140 |
|
|
36.7 |
% |
|
|
73,273 |
|
|
34.3 |
% |
|
|
75,247 |
|
|
36.1 |
% |
|
Depreciation and amortization |
|
4,030 |
|
|
5.5 |
% |
|
|
3,892 |
|
|
5.5 |
% |
|
|
12,234 |
|
|
5.7 |
% |
|
|
11,237 |
|
|
5.4 |
% |
|
Impairments and other charges, net |
|
26 |
|
|
0.0 |
% |
|
|
2,349 |
|
|
3.3 |
% |
|
|
7,892 |
|
|
3.7 |
% |
|
|
2,232 |
|
|
1.1 |
% |
|
Total operating expenses |
|
60,971 |
|
|
82.5 |
% |
|
|
62,432 |
|
|
87.8 |
% |
|
|
185,673 |
|
|
87.0 |
% |
|
|
177,714 |
|
|
85.2 |
% |
|
Income from operations |
|
12,968 |
|
|
17.5 |
% |
|
|
8,713 |
|
|
12.2 |
% |
|
|
27,816 |
|
|
13.0 |
% |
|
|
30,790 |
|
|
14.8 |
% |
|
Other income (expenses) |
|
|
|
|
|
|
|
|
|
|
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|
|
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Interest expense |
|
(4,454 |
) |
|
(6.0 |
)% |
|
|
(4,032 |
) |
|
(5.7 |
)% |
|
|
(13,319 |
) |
|
(6.2 |
)% |
|
|
(12,232 |
) |
|
(5.9 |
)% |
|
Interest income |
|
86 |
|
|
0.1 |
% |
|
|
117 |
|
|
0.2 |
% |
|
|
267 |
|
|
0.1 |
% |
|
|
435 |
|
|
0.2 |
% |
|
Non-operating gains (losses), net |
|
31 |
|
|
0.0 |
% |
|
|
(5 |
) |
|
0.0 |
% |
|
|
(9,850 |
) |
|
(4.6 |
)% |
|
|
974 |
|
|
0.5 |
% |
|
Income before income taxes |
|
8,631 |
|
|
11.7 |
% |
|
|
4,793 |
|
|
6.7 |
% |
|
|
4,914 |
|
|
2.3 |
% |
|
|
19,967 |
|
|
9.6 |
% |
|
Income tax expense |
|
2,130 |
|
|
2.9 |
% |
|
|
733 |
|
|
1.0 |
% |
|
|
3,281 |
|
|
1.5 |
% |
|
|
3,648 |
|
|
1.7 |
% |
|
Net income |
|
6,501 |
|
|
8.8 |
% |
|
|
4,060 |
|
|
5.7 |
% |
|
|
1,633 |
|
|
0.8 |
% |
|
|
16,319 |
|
|
7.8 |
% |
|
Net income attributable to noncontrolling interests |
|
(150 |
) |
|
(0.2 |
)% |
|
|
(2 |
) |
|
0.0 |
% |
|
|
(342 |
) |
|
(0.2 |
)% |
|
|
(6 |
) |
|
0.0 |
% |
|
Net income attributable to RCIHH common shareholders |
$ |
6,351 |
|
|
8.6 |
% |
|
$ |
4,058 |
|
|
5.7 |
% |
|
$ |
1,291 |
|
|
0.6 |
% |
|
$ |
16,313 |
|
|
7.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Earnings per share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Basic and diluted |
$ |
0.83 |
|
|
|
|
$ |
0.46 |
|
|
|
|
$ |
0.16 |
|
|
|
|
$ |
1.84 |
|
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|
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Weighted average shares used in computing earnings per share |
|
|
|
|
|
|
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|
|
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Basic and diluted |
|
7,653,000 |
|
|
|
|
|
8,793,809 |
|
|
|
|
|
7,898,831 |
|
|
|
|
|
8,859,028 |
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RCI HOSPITALITY HOLDINGS, INC. |
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SEGMENT INFORMATION |
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(in thousands) |
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Three Months Ended |
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Nine Months Ended |
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|
June 30, |
|
June 30, |
|
June 30, |
|
June 30, |
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Revenues |
|
|
|
|
|
|
|
||||||||
|
Nightclubs |
$ |
62,981 |
|
|
$ |
62,336 |
|
|
$ |
185,565 |
|
|
$ |
181,601 |
|
|
Bombshells |
|
10,793 |
|
|
|
8,609 |
|
|
|
27,533 |
|
|
|
26,425 |
|
|
Other |
|
165 |
|
|
|
200 |
|
|
|
391 |
|
|
|
478 |
|
|
|
$ |
73,939 |
|
|
$ |
71,145 |
|
|
$ |
213,489 |
|
|
$ |
208,504 |
|
|
|
|
|
|
|
|
|
|
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|
Income (loss) from operations |
|
|
|
|
|
|
|
||||||||
|
Nightclubs |
$ |
19,635 |
|
|
$ |
17,859 |
|
|
$ |
49,115 |
|
|
$ |
53,244 |
|
|
Bombshells |
|
759 |
|
|
|
67 |
|
|
|
353 |
|
|
|
1,767 |
|
|
Other |
|
(83 |
) |
|
|
(70 |
) |
|
|
(345 |
) |
|
|
(344 |
) |
|
Corporate |
|
(7,343 |
) |
|
|
(9,143 |
) |
|
|
(21,307 |
) |
|
|
(23,877 |
) |
|
|
$ |
12,968 |
|
|
$ |
8,713 |
|
|
$ |
27,816 |
|
|
$ |
30,790 |
|
|
RCI HOSPITALITY HOLDINGS, INC. |
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CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(in thousands) |
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|
Three Months Ended |
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Nine Months Ended |
||||||||||||
|
|
June 30, 2026 |
|
June 30, 2025 |
|
June 30, 2026 |
|
June 30, 2025 |
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CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
||||||||
|
Net income |
$ |
6,501 |
|
|
$ |
4,060 |
|
|
$ |
1,633 |
|
|
$ |
16,319 |
|
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
||||||||
|
Depreciation and amortization |
|
4,030 |
|
|
|
3,892 |
|
|
|
12,234 |
|
|
|
11,237 |
|
|
Impairment of assets |
|
— |
|
|
|
— |
|
|
|
8,433 |
|
|
|
1,780 |
|
|
Deferred income tax benefit |
|
— |
|
|
|
(958 |
) |
|
|
(2,223 |
) |
|
|
(2,200 |
) |
|
Stock-based compensation |
|
— |
|
|
|
392 |
|
|
|
589 |
|
|
|
980 |
|
|
Loss (gain) on sale of businesses and assets |
|
108 |
|
|
|
22 |
|
|
|
292 |
|
|
|
(1,226 |
) |
|
Amortization of debt discount and issuance costs |
|
112 |
|
|
|
130 |
|
|
|
377 |
|
|
|
420 |
|
|
Noncash lease expense |
|
754 |
|
|
|
676 |
|
|
|
2,233 |
|
|
|
2,002 |
|
|
Gain on insurance |
|
(107 |
) |
|
|
(729 |
) |
|
|
(294 |
) |
|
|
(1,879 |
) |
|
Credit loss expense (reversal) on notes receivable |
|
— |
|
|
|
27 |
|
|
|
(11 |
) |
|
|
27 |
|
|
Premium on stock repurchase |
|
— |
|
|
|
— |
|
|
|
9,885 |
|
|
|
— |
|
|
Changes in operating assets and liabilities, net of business acquisitions: |
|
|
|
|
|
|
|
||||||||
|
Receivables |
|
(280 |
) |
|
|
(443 |
) |
|
|
465 |
|
|
|
1,271 |
|
|
Inventories |
|
(437 |
) |
|
|
26 |
|
|
|
(325 |
) |
|
|
90 |
|
|
Prepaid expenses, other current, and other assets |
|
2,300 |
|
|
|
930 |
|
|
|
1,091 |
|
|
|
400 |
|
|
Accounts payable, accrued, and other liabilities |
|
(1,703 |
) |
|
|
5,768 |
|
|
|
(5,404 |
) |
|
|
6,463 |
|
|
Net cash provided by operating activities |
|
11,278 |
|
|
|
13,793 |
|
|
|
28,975 |
|
|
|
35,684 |
|
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
||||||||
|
Proceeds from sale of businesses and assets |
|
1 |
|
|
|
1 |
|
|
|
1,676 |
|
|
|
1,086 |
|
|
Proceeds from insurance |
|
107 |
|
|
|
743 |
|
|
|
291 |
|
|
|
1,893 |
|
|
Proceeds from notes receivable |
|
63 |
|
|
|
76 |
|
|
|
170 |
|
|
|
223 |
|
|
Payments for property and equipment and intangible assets |
|
(1,525 |
) |
|
|
(3,681 |
) |
|
|
(5,724 |
) |
|
|
(12,289 |
) |
|
Acquisition of businesses, net of cash acquired |
|
— |
|
|
|
(7,000 |
) |
|
|
— |
|
|
|
(13,000 |
) |
|
Net cash used in investing activities |
|
(1,354 |
) |
|
|
(9,861 |
) |
|
|
(3,587 |
) |
|
|
(22,087 |
) |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
||||||||
|
Proceeds from debt obligations |
|
200 |
|
|
|
779 |
|
|
|
2,453 |
|
|
|
9,175 |
|
|
Payments on debt obligations |
|
(8,960 |
) |
|
|
(4,110 |
) |
|
|
(21,745 |
) |
|
|
(14,431 |
) |
|
Payment of loan origination costs |
|
13 |
|
|
|
(9 |
) |
|
|
(27 |
) |
|
|
(80 |
) |
|
Purchase of treasury stock |
|
(1,026 |
) |
|
|
(3,044 |
) |
|
|
(13,295 |
) |
|
|
(9,158 |
) |
|
Payment of dividends |
|
(611 |
) |
|
|
(614 |
) |
|
|
(1,773 |
) |
|
|
(1,856 |
) |
|
Investment from noncontrolling partner |
|
— |
|
|
|
— |
|
|
|
1,800 |
|
|
|
— |
|
|
Payments to noncontrolling interests |
|
(26 |
) |
|
|
— |
|
|
|
(106 |
) |
|
|
— |
|
|
Net cash used in financing activities |
|
(10,410 |
) |
|
|
(6,998 |
) |
|
|
(32,693 |
) |
|
|
(16,350 |
) |
|
NET DECREASE IN CASH AND CASH EQUIVALENTS |
|
(486 |
) |
|
|
(3,066 |
) |
|
|
(7,305 |
) |
|
|
(2,753 |
) |
|
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD |
|
26,890 |
|
|
|
32,663 |
|
|
|
33,709 |
|
|
|
32,350 |
|
|
CASH AND CASH EQUIVALENTS AT END OF PERIOD |
$ |
26,404 |
|
|
$ |
29,597 |
|
|
$ |
26,404 |
|
|
$ |
29,597 |
|
|
RCI HOSPITALITY HOLDINGS, INC. |
||||||||||
|
CONSOLIDATED BALANCE SHEETS |
||||||||||
|
(in thousands) |
||||||||||
|
|
|
|
|
|
|
|||||
|
|
June 30, 2026 |
|
September 30, 2025 |
|
June 30, 2025 |
|||||
|
ASSETS |
|
|
|
|
|
|||||
|
Current assets |
|
|
|
|
|
|||||
|
Cash and cash equivalents |
$ |
26,404 |
|
$ |
33,709 |
|
|
$ |
29,347 |
|
|
Receivables, net |
|
2,871 |
|
|
3,940 |
|
|
|
4,606 |
|
|
Inventories |
|
5,182 |
|
|
4,857 |
|
|
|
4,746 |
|
|
Prepaid expenses and other current assets |
|
4,060 |
|
|
4,968 |
|
|
|
3,214 |
|
|
Assets held for sale |
|
— |
|
|
3,394 |
|
|
|
3,394 |
|
|
Total current assets |
|
38,517 |
|
|
50,868 |
|
|
|
45,307 |
|
|
Property and equipment, net |
|
276,856 |
|
|
279,027 |
|
|
|
282,246 |
|
|
Operating lease right-of-use assets |
|
23,560 |
|
|
25,781 |
|
|
|
26,641 |
|
|
Notes receivable, net of current portion |
|
4,285 |
|
|
3,849 |
|
|
|
3,939 |
|
|
Goodwill |
|
62,242 |
|
|
62,725 |
|
|
|
70,236 |
|
|
Intangibles, net |
|
161,650 |
|
|
171,948 |
|
|
|
166,942 |
|
|
Other assets |
|
2,550 |
|
|
2,737 |
|
|
|
2,101 |
|
|
Total assets |
$ |
569,660 |
|
$ |
596,935 |
|
|
$ |
597,412 |
|
|
|
|
|
|
|
|
|||||
|
LIABILITIES AND EQUITY |
|
|
|
|
|
|||||
|
Current liabilities |
|
|
|
|
|
|||||
|
Accounts payable |
$ |
6,457 |
|
$ |
5,836 |
|
|
$ |
5,406 |
|
|
Accrued liabilities |
|
30,004 |
|
|
32,607 |
|
|
|
21,764 |
|
|
Current portion of debt obligations, net |
|
29,088 |
|
|
21,198 |
|
|
|
18,623 |
|
|
Current portion of operating lease liabilities |
|
3,370 |
|
|
3,314 |
|
|
|
3,249 |
|
|
Total current liabilities |
|
68,919 |
|
|
62,955 |
|
|
|
49,042 |
|
|
Deferred tax liability, net |
|
19,466 |
|
|
21,689 |
|
|
|
20,493 |
|
|
Debt, net of current portion and debt discount and issuance costs |
|
210,997 |
|
|
214,583 |
|
|
|
222,638 |
|
|
Operating lease liabilities, net of current portion |
|
24,801 |
|
|
27,320 |
|
|
|
28,171 |
|
|
Other long-term liabilities |
|
8,119 |
|
|
9,509 |
|
|
|
7,765 |
|
|
Total liabilities |
|
332,302 |
|
|
336,056 |
|
|
|
328,109 |
|
|
|
|
|
|
|
|
|||||
|
Commitments and contingencies |
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|||||
|
Equity |
|
|
|
|
|
|||||
|
Preferred stock |
|
— |
|
|
— |
|
|
|
— |
|
|
Common stock |
|
76 |
|
|
87 |
|
|
|
87 |
|
|
Additional paid-in capital |
|
25,844 |
|
|
50,908 |
|
|
|
53,244 |
|
|
Retained earnings |
|
208,834 |
|
|
210,106 |
|
|
|
216,216 |
|
|
Total RCIHH stockholders’ equity |
|
234,754 |
|
|
261,101 |
|
|
|
269,547 |
|
|
Noncontrolling interests |
|
2,604 |
|
|
(222 |
) |
|
|
(244 |
) |
|
Total equity |
|
237,358 |
|
|
260,879 |
|
|
|
269,303 |
|
|
Total liabilities and equity |
$ |
569,660 |
|
$ |
596,935 |
|
|
$ |
597,412 |
|
|
RCI HOSPITALITY HOLDINGS, INC. |
|||||||||||||||
|
NON-GAAP FINANCIAL MEASURES |
|||||||||||||||
|
(in thousands, except per share, number of shares, and percentage data) |
|||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three Months Ended June 30, |
|
Nine Months Ended June 30, |
||||||||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
Reconciliation of GAAP net income to Adjusted EBITDA |
|
|
|
|
|
|
|
||||||||
|
Net income attributable to RCIHH common stockholders |
$ |
6,351 |
|
|
$ |
4,058 |
|
|
$ |
1,291 |
|
|
$ |
16,313 |
|
|
Income tax expense |
|
2,130 |
|
|
|
733 |
|
|
|
3,281 |
|
|
|
3,648 |
|
|
Interest expense, net |
|
4,368 |
|
|
|
3,915 |
|
|
|
13,052 |
|
|
|
11,797 |
|
|
Depreciation and amortization |
|
4,030 |
|
|
|
3,892 |
|
|
|
12,234 |
|
|
|
11,237 |
|
|
Impairment of assets |
|
— |
|
|
|
— |
|
|
|
8,433 |
|
|
|
1,780 |
|
|
Settlement of lawsuits, net of recoveries |
|
92 |
|
|
|
3,281 |
|
|
|
(503 |
) |
|
|
3,587 |
|
|
Stock-based compensation |
|
— |
|
|
|
392 |
|
|
|
589 |
|
|
|
980 |
|
|
Loss (gain) on sale of businesses and assets |
|
41 |
|
|
|
202 |
|
|
|
292 |
|
|
|
(984 |
) |
|
Gain on insurance |
|
(107 |
) |
|
|
(1,134 |
) |
|
|
(330 |
) |
|
|
(2,151 |
) |
|
Premium on stock repurchase |
|
— |
|
|
|
— |
|
|
|
9,885 |
|
|
|
— |
|
|
Gain on lease termination |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(979 |
) |
|
Adjusted EBITDA |
$ |
16,905 |
|
|
$ |
15,339 |
|
|
$ |
48,224 |
|
|
$ |
45,228 |
|
|
Adjusted EBITDA as a percentage of revenues |
|
22.9 |
% |
|
|
21.6 |
% |
|
|
22.6 |
% |
|
|
21.7 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Reconciliation of GAAP net income to non-GAAP net income |
|
|
|
|
|
|
|
||||||||
|
Net income attributable to RCIHH common stockholders |
$ |
6,351 |
|
|
$ |
4,058 |
|
|
$ |
1,291 |
|
|
$ |
16,313 |
|
|
Amortization of intangibles |
|
618 |
|
|
|
576 |
|
|
|
1,853 |
|
|
|
1,733 |
|
|
Impairment of assets |
|
— |
|
|
|
— |
|
|
|
8,433 |
|
|
|
1,780 |
|
|
Settlement of lawsuits, net of recoveries |
|
92 |
|
|
|
3,281 |
|
|
|
(503 |
) |
|
|
3,587 |
|
|
Stock-based compensation |
|
— |
|
|
|
392 |
|
|
|
589 |
|
|
|
980 |
|
|
Loss (gain) on sale of businesses and assets |
|
41 |
|
|
|
202 |
|
|
|
292 |
|
|
|
(984 |
) |
|
Gain on insurance |
|
(107 |
) |
|
|
(1,134 |
) |
|
|
(330 |
) |
|
|
(2,151 |
) |
|
Premium on stock repurchase |
|
— |
|
|
|
— |
|
|
|
9,885 |
|
|
|
— |
|
|
Gain on lease termination |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(979 |
) |
|
Net income tax effect |
|
(130 |
) |
|
|
(562 |
) |
|
|
(2,466 |
) |
|
|
(515 |
) |
|
Non-GAAP net income |
$ |
6,865 |
|
|
$ |
6,813 |
|
|
$ |
19,044 |
|
|
$ |
19,764 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Reconciliation of GAAP diluted earnings per share to non-GAAP diluted earnings per share |
|||||||||||||||
|
Diluted shares |
|
7,653,000 |
|
|
|
8,793,809 |
|
|
|
7,898,831 |
|
|
|
8,859,028 |
|
|
GAAP diluted earnings per share |
$ |
0.83 |
|
|
$ |
0.46 |
|
|
$ |
0.16 |
|
|
$ |
1.84 |
|
|
Amortization of intangibles |
|
0.08 |
|
|
|
0.07 |
|
|
|
0.23 |
|
|
|
0.20 |
|
|
Impairment of assets |
|
— |
|
|
|
— |
|
|
|
1.07 |
|
|
|
0.20 |
|
|
Settlement of lawsuits, net of recoveries |
|
0.01 |
|
|
|
0.37 |
|
|
|
(0.06 |
) |
|
|
0.40 |
|
|
Stock-based compensation |
|
— |
|
|
|
0.04 |
|
|
|
0.07 |
|
|
|
0.11 |
|
|
Loss (gain) on sale of businesses and assets |
|
0.01 |
|
|
|
0.02 |
|
|
|
0.04 |
|
|
|
(0.11 |
) |
|
Gain on insurance |
|
(0.01 |
) |
|
|
(0.13 |
) |
|
|
(0.04 |
) |
|
|
(0.24 |
) |
|
Premium on stock repurchase |
|
— |
|
|
|
— |
|
|
|
1.25 |
|
|
|
— |
|
|
Gain on lease termination |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.11 |
) |
|
Net income tax effect |
|
(0.02 |
) |
|
|
(0.06 |
) |
|
|
(0.31 |
) |
|
|
(0.06 |
) |
|
Non-GAAP diluted earnings per share |
$ |
0.90 |
|
|
$ |
0.77 |
|
|
$ |
2.41 |
|
|
$ |
2.23 |
|
|
|
Three Months Ended June 30, |
|
Nine Months Ended June 30, |
||||||||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
|
2026 |
|
|
|
2025 |
|
|
Reconciliation of GAAP operating income to non-GAAP operating income |
|
|
|
|
|
|
|
||||||||
|
Income from operations |
$ |
12,968 |
|
|
$ |
8,713 |
|
|
$ |
27,816 |
|
|
$ |
30,790 |
|
|
Amortization of intangibles |
|
618 |
|
|
|
576 |
|
|
|
1,853 |
|
|
|
1,733 |
|
|
Impairment of assets |
|
— |
|
|
|
— |
|
|
|
8,433 |
|
|
|
1,780 |
|
|
Settlement of lawsuits, net of recoveries |
|
92 |
|
|
|
3,281 |
|
|
|
(503 |
) |
|
|
3,587 |
|
|
Stock-based compensation |
|
— |
|
|
|
392 |
|
|
|
589 |
|
|
|
980 |
|
|
Loss (gain) on sale of businesses and assets |
|
41 |
|
|
|
202 |
|
|
|
292 |
|
|
|
(984 |
) |
|
Gain on insurance |
|
(107 |
) |
|
|
(1,134 |
) |
|
|
(330 |
) |
|
|
(2,151 |
) |
|
Non-GAAP operating income |
$ |
13,612 |
|
|
$ |
12,030 |
|
|
$ |
38,150 |
|
|
$ |
35,735 |
|
|
|
|
|
|
|
|
|
|
||||||||
|
Reconciliation of GAAP operating margin to non-GAAP operating margin |
|
|
|
|
|
|
|
||||||||
|
GAAP operating margin |
|
17.5 |
% |
|
|
12.2 |
% |
|
|
13.0 |
% |
|
|
14.8 |
% |
|
Amortization of intangibles |
|
0.8 |
% |
|
|
0.8 |
% |
|
|
0.9 |
% |
|
|
0.8 |
% |
|
Impairment of assets |
|
— |
% |
|
|
0.0 |
% |
|
|
4.0 |
% |
|
|
0.9 |
% |
|
Settlement of lawsuits, net of recoveries |
|
0.1 |
% |
|
|
4.6 |
% |
|
|
(0.2 |
)% |
|
|
1.7 |
% |
|
Stock-based compensation |
|
0.0 |
% |
|
|
0.6 |
% |
|
|
0.3 |
% |
|
|
0.5 |
% |
|
Loss (gain) on sale of businesses and assets |
|
0.1 |
% |
|
|
0.3 |
% |
|
|
0.1 |
% |
|
|
(0.5 |
)% |
|
Gain on insurance |
|
(0.1 |
)% |
|
|
(1.6 |
)% |
|
|
(0.2 |
)% |
|
|
(1.0 |
)% |
|
Non-GAAP operating margin |
|
18.4 |
% |
|
|
16.9 |
% |
|
|
17.9 |
% |
|
|
17.1 |
% |
|
|
|
|
|
|
|
|
|
||||||||
|
Reconciliation of net cash provided by operating activities to free cash flow |
|
|
|
|
|
|
|
||||||||
|
Net cash provided by operating activities |
$ |
11,278 |
|
|
$ |
13,793 |
|
|
$ |
28,975 |
|
|
$ |
35,684 |
|
|
Less: Maintenance capital expenditures |
|
640 |
|
|
|
454 |
|
|
|
3,238 |
|
|
|
3,341 |
|
|
Free cash flow |
$ |
10,638 |
|
|
$ |
13,339 |
|
|
$ |
25,737 |
|
|
$ |
32,343 |
|
|
Free cash flow as a percentage of revenues |
|
14.4 |
% |
|
|
18.7 |
% |
|
|
12.1 |
% |
|
|
15.5 |
% |
|
RCI HOSPITALITY HOLDINGS, INC. |
|||||||||||||||||||||||||||||||||||||||
|
NON-GAAP SEGMENT INFORMATION |
|||||||||||||||||||||||||||||||||||||||
|
($ in thousands) |
|||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
Three Months Ended June 30, 2026 |
|
Three Months Ended June 30, 2025 |
||||||||||||||||||||||||||||||||||||
|
|
Nightclubs |
|
Bombshells |
|
Other |
|
Corporate |
|
Total |
|
Nightclubs |
|
Bombshells |
|
Other |
|
Corporate |
|
Total |
||||||||||||||||||||
|
Income (loss) from operations |
$ |
19,635 |
|
|
$ |
759 |
|
|
$ |
(83 |
) |
|
$ |
(7,343 |
) |
|
$ |
12,968 |
|
|
$ |
17,859 |
|
|
$ |
67 |
|
|
$ |
(70 |
) |
|
$ |
(9,143 |
) |
|
$ |
8,713 |
|
|
Amortization of intangibles |
|
617 |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
618 |
|
|
|
572 |
|
|
|
1 |
|
|
|
— |
|
|
|
3 |
|
|
|
576 |
|
|
Settlement of lawsuits, net of recoveries |
|
67 |
|
|
|
25 |
|
|
|
— |
|
|
|
— |
|
|
|
92 |
|
|
|
3,281 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,281 |
|
|
Stock-based compensation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
392 |
|
|
|
392 |
|
|
Loss (gain) on sale of businesses and assets |
|
7 |
|
|
|
17 |
|
|
|
— |
|
|
|
17 |
|
|
|
41 |
|
|
|
191 |
|
|
|
12 |
|
|
|
— |
|
|
|
(1 |
) |
|
|
202 |
|
|
Gain on insurance |
|
(105 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
(107 |
) |
|
|
(1,134 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,134 |
) |
|
Non-GAAP operating income (loss) |
$ |
20,221 |
|
|
$ |
801 |
|
|
$ |
(83 |
) |
|
$ |
(7,327 |
) |
|
$ |
13,612 |
|
|
$ |
20,769 |
|
|
$ |
80 |
|
|
$ |
(70 |
) |
|
$ |
(8,749 |
) |
|
$ |
12,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
GAAP operating margin |
|
31.2 |
% |
|
|
7.0 |
% |
|
|
(50.3 |
)% |
|
|
(9.9 |
)% |
|
|
17.5 |
% |
|
|
28.6 |
% |
|
|
0.8 |
% |
|
|
(35.0 |
)% |
|
|
(12.9 |
)% |
|
|
12.2 |
% |
|
Non-GAAP operating margin |
|
32.1 |
% |
|
|
7.4 |
% |
|
|
(50.3 |
)% |
|
|
(9.9 |
)% |
|
|
18.4 |
% |
|
|
33.3 |
% |
|
|
0.9 |
% |
|
|
(35.0 |
)% |
|
|
(12.3 |
)% |
|
|
16.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
Nine Months Ended June 30, 2026 |
|
Nine Months Ended June 30, 2025 |
||||||||||||||||||||||||||||||||||||
|
|
Nightclubs |
|
Bombshells |
|
Other |
|
Corporate |
|
Total |
|
Nightclubs |
|
Bombshells |
|
Other |
|
Corporate |
|
Total |
||||||||||||||||||||
|
Income (loss) from operations |
$ |
49,115 |
|
|
$ |
353 |
|
|
$ |
(345 |
) |
|
$ |
(21,307 |
) |
|
$ |
27,816 |
|
|
$ |
53,244 |
|
|
$ |
1,767 |
|
|
$ |
(344 |
) |
|
$ |
(23,877 |
) |
|
$ |
30,790 |
|
|
Amortization of intangibles |
|
1,848 |
|
|
|
— |
|
|
|
— |
|
|
|
5 |
|
|
|
1,853 |
|
|
|
1,718 |
|
|
|
3 |
|
|
|
— |
|
|
|
12 |
|
|
|
1,733 |
|
|
Impairment of assets |
|
8,433 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
8,433 |
|
|
|
1,780 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,780 |
|
|
Settlement of lawsuits, net of recoveries |
|
(618 |
) |
|
|
115 |
|
|
|
— |
|
|
|
— |
|
|
|
(503 |
) |
|
|
3,557 |
|
|
|
30 |
|
|
|
— |
|
|
|
— |
|
|
|
3,587 |
|
|
Stock-based compensation |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
589 |
|
|
|
589 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
980 |
|
|
|
980 |
|
|
Loss (gain) on sale of businesses and assets |
|
247 |
|
|
|
23 |
|
|
|
— |
|
|
|
22 |
|
|
|
292 |
|
|
|
300 |
|
|
|
(1,189 |
) |
|
|
— |
|
|
|
(95 |
) |
|
|
(984 |
) |
|
Gain on insurance |
|
(328 |
) |
|
|
— |
|
|
|
— |
|
|
|
(2 |
) |
|
|
(330 |
) |
|
|
(2,151 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(2,151 |
) |
|
Non-GAAP operating income (loss) |
$ |
58,697 |
|
|
$ |
491 |
|
|
$ |
(345 |
) |
|
$ |
(20,693 |
) |
|
$ |
38,150 |
|
|
$ |
58,448 |
|
|
$ |
611 |
|
|
$ |
(344 |
) |
|
$ |
(22,980 |
) |
|
$ |
35,735 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
|
GAAP operating margin |
|
26.5 |
% |
|
|
1.3 |
% |
|
|
(88.2 |
)% |
|
|
(10.0 |
)% |
|
|
13.0 |
% |
|
|
29.3 |
% |
|
|
6.7 |
% |
|
|
(72.0 |
)% |
|
|
(11.5 |
)% |
|
|
14.8 |
% |
|
Non-GAAP operating margin |
|
31.6 |
% |
|
|
1.8 |
% |
|
|
(88.2 |
)% |
|
|
(9.7 |
)% |
|
|
17.9 |
% |
|
|
32.2 |
% |
|
|
2.3 |
% |
|
|
(72.0 |
)% |
|
|
(11.0 |
)% |
|
|
17.1 |
% |
View source version on businesswire.com: https://www.businesswire.com/news/home/20260805529903/en/
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