RCI Announces Strategic Partnership with Adult Club Entrepreneur Jonathan Joseph

HOUSTON – November 17, 2025 – RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today announced a strategic partnership with adult club entrepreneur Jonathan Joseph, majority owner of the Yellow Rose Cabaret and the Red Rose Adult Nightclub, two of Austin's most well-known venues.

The partnership is taking the form through a Joseph entity acquiring a 49% interest in Rick's Cabaret Austin, TX for $1.8 million in cash. Joseph is known for changing the gentleman's club industry in Austin into more of a nightclub scene, attracting men, women and couples.

The transaction, which closed Friday, November 14, 2025, adds Joseph to three other leaders of the adult club industry as part of the RCI family: Major RCI shareholders Duncan Burch of Dallas, Troy Lowrie of Denver, and RCI Chairman, President and CEO Eric Langan.

Langan commented: "Jonathan is a rising star in the industry. We've known each other for more than 20 years and have been wanting to work together again. We're pleased to have found a way to do that in line with RCI's Back to Basics 5-Year Capital Allocation Plan."

Joseph commented: "We're thrilled at solidifying a relationship with the RCI team. This partnership will strengthen Rick's in the Austin market with more local management and marketing expertise, working in coordination with the Yellow and Red Rose, so that all three clubs reach all key demographic segments."

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. 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, 2024, 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.

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

Media & Investor Contacts

Gary Fishman and Michael Wichman at 212-883-0655 or gary.fishman@anreder.com and michael.wichman@anreder.com