RCI Files 10-K, Reports 4Q25 & FY25 Results, Hosts X Spaces Call at 4:30 PM ET Today
HOUSTON – March 19, 2026 – 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, stated: "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.
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 September 30, 2025 |
Three Months Ended September 30, 2024 |
Twelve Months Ended September 30, 2025 |
Twelve Months Ended 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 September 30, 2025 |
Three Months Ended September 30, 2024 |
Twelve Months Ended September 30, 2025 |
Twelve Months Ended 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 September 30, 2025 |
Three Months Ended September 30, 2024 |
Twelve Months Ended September 30, 2025 |
Twelve Months Ended 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)
Reconciliation of GAAP net income (loss) to Adjusted EBITDA
|
Three Months Ended September 30, 2025 |
Three Months Ended September 30, 2024 |
Twelve Months Ended September 30, 2025 |
Twelve Months Ended September 30, 2024 |
| 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)
|
Three Months Ended September 30, 2025 |
Three Months Ended September 30, 2024 |
Twelve Months Ended September 30, 2025 |
Twelve Months Ended September 30, 2024 |
| 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
|
Three Months Ended September 30, 2025 |
Three Months Ended September 30, 2024 |
Twelve Months Ended September 30, 2025 |
Twelve Months Ended September 30, 2024 |
| 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 |
Reconciliation of GAAP operating income (loss) to non-GAAP operating income
|
Three Months Ended September 30, 2025 |
Three Months Ended September 30, 2024 |
Twelve Months Ended September 30, 2025 |
Twelve Months Ended September 30, 2024 |
| 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
|
Three Months Ended September 30, 2025 |
Three Months Ended September 30, 2024 |
Twelve Months Ended September 30, 2025 |
Twelve Months Ended September 30, 2024 |
| 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
|
Three Months Ended September 30, 2025 |
Three Months Ended September 30, 2024 |
Twelve Months Ended September 30, 2025 |
Twelve Months Ended September 30, 2024 |
| 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
|
Nightclubs |
Bombshells |
Other |
Corporate |
Total |
| Income (loss) from operations | $16,325 | $(1,590) | $175 | $(15,433) | $(523) |
| Amortization of intangibles | 627 | — | — | 2 | 629 |
| Impairment of assets | 2,010 | 1,550 | — | — | 3,560 |
| Settlement of lawsuits | 293 | 68 | — | — | 361 |
| Stock-based compensation | — | — | — | 393 | 393 |
| Loss (gain) on sale of businesses and assets | 3 | 1 | — | (2) | 2 |
| Gain on insurance | (207) | — | — | — | (207) |
| Non-GAAP operating income (loss) | $19,051 | $29 | $175 | $(15,040) | $4,215 |
| GAAP operating margin | 26.8% | (16.9)% | 27.1% | (21.8)% | (0.7)% |
| Non-GAAP operating margin | 31.3% | 0.3% | 27.1% | (21.2)% | 5.9% |
Three Months Ended September 30, 2024
|
Nightclubs |
Bombshells |
Other |
Corporate |
Total |
| Income (loss) from operations | $13,028 | $(2,569) | $160 | $(7,100) | $3,519 |
| Amortization of intangibles | 576 | 11 | — | 10 | 597 |
| Impairment of assets | 7,039 | 5,514 | — | — | 12,553 |
| Settlement of lawsuits | 157 | 25 | — | 30 | 212 |
| Stock-based compensation | — | — | — | 470 | 470 |
| Loss (gain) on sale of businesses and assets | 14 | (2,332) | — | (2) | (2,320) |
| Gain on insurance | (327) | — | — | — | (327) |
| Non-GAAP operating income (loss) | $20,487 | $649 | $160 | $(6,592) | $14,704 |
| GAAP operating margin | 21.5% | (21.5)% | 24.2% | (9.7)% | 4.8% |
| Non-GAAP operating margin | 33.8% | 5.4% | 24.2% | (9.0)% | 20.1% |
Twelve Months Ended September 30, 2025
|
Nightclubs |
Bombshells |
Other |
Corporate |
Total |
| Income (loss) from operations | $69,569 | $177 | $(169) | $(39,310) | $30,267 |
| Amortization of intangibles | 2,345 | 3 | — | 14 | 2,362 |
| Impairment of assets | 3,790 | 1,550 | — | — | 5,340 |
| Settlement of lawsuits | 3,850 | 98 | — | — | 3,948 |
| Stock-based compensation | — | — | — | 1,373 | 1,373 |
| Loss (gain) on sale of businesses and assets | 303 | (1,188) | — | (97) | (982) |
| Gain on insurance | (2,358) | — | — | — | (2,358) |
| Non-GAAP operating income (loss) | $77,499 | $640 | $(169) | $(38,020) | $39,950 |
| GAAP operating margin | 28.7% | 0.5% | (15.0)% | (14.1)% | 10.8% |
| Non-GAAP operating margin | 32.0% | 1.8% | (15.0)% | (13.6)% | 14.3% |
Twelve Months Ended September 30, 2024
|
Nightclubs |
Bombshells |
Other |
Corporate |
Total |
| Income (loss) from operations | $57,912 | $(10,783) | $(137) | $(28,187) | $18,805 |
| Amortization of intangibles | 2,334 | 137 | — | 23 | 2,494 |
| Impairment of assets | 22,691 | 15,826 | — | — | 38,517 |
| Settlement of lawsuits | 465 | 25 | — | 30 | 520 |
| Stock-based compensation | — | — | — | 1,882 | 1,882 |
| Loss (gain) on sale of businesses and assets | (56) | (2,322) | — | 238 | (2,140) |
| Gain on insurance | (327) | — | — | — | (327) |
| Non-GAAP operating income (loss) | $83,019 | $2,883 | $(137) | $(26,014) | $59,751 |
| GAAP operating margin | 23.7% | (21.3)% | (11.8)% | (9.5)% | 6.4% |
| Non-GAAP operating margin | 34.0% | 5.7% | (11.8)% | (8.8)% | 20.2% |
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