RCI Files 10-Q and Reports Results for 2Q26
HOUSTON – May 28, 2026 – 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)
| Metric |
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 EPS |
$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 flow |
$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 EBITDA |
$15.6 |
$14.2 |
$31.3 |
$29.9 |
| Weighted average shares (millions) |
7.74 |
8.86 |
8.02 |
8.89 |
Summary
Travis Reese, Interim President and CEO, stated: “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.”
Freezing weather in late January-early February caused multiple clubs to close for one to two days, primarily on weekends.
Nightclubs total sales increased with same-store sales nearly level. Bombshells total sales also increased, though same-store sales declined. The implementation of a “pre-game and party all in one” strategy to boost higher-margin alcoholic beverage sales resulted in a 3.6% same-store sales increase at Bombshells 59 in Houston.
Per the 5-Year Capital Allocation Plan, the company continued share buybacks. As of May 22, 2026, approximately 7,644,500 shares were outstanding.
There will be no conference call as RCI just held one on May 7, 2026, when it reported its delayed 1Q26 results.
2Q26 Results
Nightclubs segment: Revenues of $60.3 million increased 4.8%. Five newly acquired, opened and reformatted clubs generated $4.8 million in sales; 51 clubs in same-store sales produced $54.5 million; one club was closed during the quarter. By revenue type: service increased 11.3%; food, merchandise and other increased 3.8%; alcoholic beverages declined 0.9%. Impairments and other charges totaled $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 versus 25.3%. Non-GAAP operating income excluding impairments was $19.0 million compared to $17.1 million, or 31.5% of segment revenues versus 29.7%.
Bombshells segment: Revenues of $8.4 million increased 1.6%. Sales included $1.6 million from two newly opened locations and $6.8 million from nine same-store locations. By revenue type: alcoholic beverages increased 4.0%; food was level with 2Q25. Other charges totaled $67,000 compared to $159,000. Operating loss was $267,000 compared to $245,000, or -3.2% of segment revenues versus -3.0%. Non-GAAP operating loss excluding charges was $200,000 compared to $85,000, or -2.4% versus -1.0%.
Corporate segment: Expenses totaled $6.6 million compared to $5.9 million, or 9.6% of total revenues versus 9.0%. The year-over-year change primarily reflected increased insurance costs. Non-GAAP expenses totaled $6.4 million compared to $5.8 million, or 9.3% versus 8.8%.
Impairments and other charges, net: Consolidated operations totaled $7.6 million compared to $2.1 million.
Income tax: A benefit of $0.4 million compared to an expense of $1.1 million.
Weighted average shares outstanding: 7.74 million declined 12.6% due to share buybacks.
Debt: $248.7 million at March 31, 2026 declined 3.0% from $256.4 million at December 31, 2025, primarily from debt paydowns. Compared to a year ago, debt increased 3.0%.
Non-GAAP Financial Measures
Management uses certain non-GAAP financial measures to clarify and enhance understanding of past performance and future prospects. These measures exclude or include amounts that management believes are not representative of ongoing business operations.
Non-GAAP Operating Income and Operating Margin: Calculated by excluding from income from operations: (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. This assists investors in evaluating period-over-period changes without items not resulting from day-to-day operations.
Non-GAAP Net Income and Net Income per Diluted Share: Calculated by excluding or including certain items to net income attributable to RCIHH common stockholders and diluted earnings per share, including: (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) income tax effect of adjustments. Non-GAAP provision for income taxes was calculated at approximately 22.3% effective tax rate for the six months ended March 31, 2026, and 18.1% for 2025. This helps management and investors better understand operating activities.
Adjusted EBITDA: Calculated by excluding from net income 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. This provides core operational performance measurement and comparison without tax considerations. Adjusted EBITDA is the target benchmark for nightclub acquisitions.
Free Cash Flow: Derived from net cash provided by operating activities less maintenance capital expenditures. Used as the baseline for capital allocation strategy implementation.
Accounting Standards Update (ASU) 2023-07
The Company has adopted ASU 2023-07, requiring enhanced reportable segment disclosures. Certain prior-year segment information has been recast accordingly.
Forward-Looking Statements
This press release may contain forward-looking statements involving risks and uncertainties that could cause actual results to differ materially, including: (i) operating and managing adult entertainment or restaurant businesses, (ii) business climates in operating cities, (iii) success in launching and building businesses, (iv) cyber security, (v) real estate transaction conditions, (vi) ability to regain and maintain SEC and Nasdaq compliance, and (vii) numerous other factors such as laws governing adult entertainment or restaurant operations, competition, and key personnel dependence. For detailed discussion of such factors, see RCI’s Form 10-K for the year ended September 30, 2025, and other SEC filings. The Company has no obligation to update or revise forward-looking statements.
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