RCI Hospitality (RICK) details FY25 results, share buybacks and interim CFO deal

Rhea-AI Filing Summary

RCI Hospitality Holdings reported fiscal 2025 results and detailed leadership changes. For the year ended September 30, 2025, total revenues were $279.4M versus $295.6M a year earlier, while EPS improved to $1.23 from $0.33. Adjusted EBITDA was $52.6M compared with $72.6M. Free cash flow totaled $45.4M versus $48.4M. In 4Q25, revenue was $70.9M versus $73.2M, with EPS of $(0.63) and non-GAAP EPS of $(0.12), affected by higher legal accruals and tax expense.

The Nightclubs segment generated $242.5M in FY25 revenue, nearly flat year over year, while Bombshells declined to $35.8M. As of September 30, 2025, debt was $235.8M and cash was $33.7M. Management highlighted ongoing execution of its Back to Basics 5-Year Capital Allocation Plan, including asset sales, new club openings and significant share repurchases that reduced the share count by about 14% since fiscal 2024.

The company plans in FY26 to improve club and restaurant operations, sell roughly $32M of excess real estate and underperforming locations, and use proceeds plus operating cash flow for acquisitions, debt reduction or additional buybacks. Separately, RCI entered a one-year employment agreement with Interim CFO Albert Molina at an annual salary of $320,000, including bonus eligibility and standard executive benefits.

Insights

Equity analyst – leisure & restaurants

RCI shows softer 2025 operating trends but maintains solid cash generation and aggressive capital returns.

RCI Hospitality’s FY25 revenue of $279.4M declined modestly from $295.6M, while EPS rose to $1.23 helped by lower impairments versus 2024. However, non-GAAP EPS fell to $2.12 from $4.72 and adjusted EBITDA decreased to $52.6M from $72.6M, signaling weaker underlying profitability.

Nightclubs remained relatively resilient with $242.5M of FY25 revenue compared with $243.9M, but Bombshells dropped to $35.8M from $50.6M as underperforming units were closed or sold. Free cash flow of $45.4M and debt of $235.8M show the business still generates meaningful cash while managing leverage.

Management emphasized its Back to Basics 5-Year Capital Allocation Plan, reducing the share count by about 14% since fiscal 2024 to 7,710,000 shares as of March 13, 2026, and monetizing non-core assets. FY26 priorities include operational improvements, selling roughly $32M of real estate and weaker locations, and directing proceeds toward acquisitions, debt paydown or further repurchases, with execution progress to be reflected in future filings.

FALSE000093541900009354192026-03-162026-03-16

United States

Securities and Exchange Commission

Washington, D.C. 20549

FORM 8-K

Current Report

Pursuant to Section 13 or 15(d) of

The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 16, 2026

RCI HOSPITALITY HOLDINGS, INC.

(Exact Name of Registrant as Specified in Its Charter)

Texas			001-13992			76-0458229
(State or Other Jurisdiction of Incorporation)			(Commission File Number)			(IRS Employer Identification No.)

10737 Cutten Road

Houston, Texas 77066

(Address of Principal Executive Offices, Including Zip Code)

(281) 397-6730

(Issuer’s Telephone Number, Including Area Code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)
o			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))
o			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e -4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common stock, $0.01 par value

RICK

The Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On March 19, 2026, we issued a press release announcing results for the fiscal quarter and year ended September 30, 2025, and the filing of our annual report on Form 10-K for the fiscal year ended September 30, 2025. Also on March 19, 2026, we will hold a conference call to discuss these results and related matters. A copy of the press release is furnished as Exhibit 99.1 to this current report on Form 8-K.

This information shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

ITEM 5.02 DEPARTURE OF DIRECTORS OR CERTAIN OFFICERS; ELECTION OF DIRECTORS; APPOINTMENT OF CERTAIN OFFICERS; COMPENSATION ARRANGEMENTS OF CERTAIN OFFICERS.

(e)    On March 16, 2026, we entered into a one-year employment agreement with Albert Molina, our Interim Chief Financial Officer, effective as of March 16, 2026. Under the agreement, Mr. Molina will receive an annual salary of $320,000. The agreement also provides for bonus eligibility, expense reimbursement, health benefits, participation in our benefit plans, use of a company-owned automobile, access to company owned aircraft (subject to terms and conditions of our corporate aircraft policy), and two weeks paid vacation annually. Under the terms of the agreement, Mr. Molina is bound to a confidentiality provision and cannot compete with us for a period upon termination of the agreement. A copy of the employment agreement is included as Exhibit 10.1 to this current report.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS

(d) Exhibits

Exhibit Number						Description
10.1						Employment Agreement of Albert Molina
99.1						Press release of RCI Hospitality Holdings, Inc. dated March 19, 2026
104						Cover Page Interactive Data File (embedded within the Inline XBRL document)

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			RCI HOSPITALITY HOLDINGS, INC.
Date: March 19, 2026			By:			/s/ Travis Reese
						Travis Reese
						Interim President and Chief Executive Officer

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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, 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

1

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.

2

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.

Media & Investor Contacts

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

3

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

4

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

5

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

6

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

7

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

8

			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

9

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		%

10

FAQ

How did RCI Hospitality (RICK) perform financially in fiscal 2025?

RCI Hospitality generated $279.4 million in revenue for fiscal 2025, down from $295.6 million in 2024. GAAP EPS improved to $1.23 from $0.33, while adjusted EBITDA declined to $52.6 million compared with $72.6 million a year earlier.

What were RCI Hospitality’s 4Q25 results for revenue and earnings?

In 4Q25 RCI Hospitality reported $70.9 million in revenue versus $73.2 million in 4Q24. GAAP EPS was $(0.63) compared with $0.03 a year earlier, and non-GAAP EPS was $(0.12) versus $1.63, reflecting higher legal accruals and tax expense.

How did RCI Hospitality’s Nightclubs and Bombshells segments perform in FY25?

In fiscal 2025, the Nightclubs segment produced $242.5 million in revenue, nearly flat versus $243.9 million in 2024. Bombshells revenue declined to $35.8 million from $50.6 million, influenced by prior divestitures and closures of underperforming locations and softer same-store sales.

What is RCI Hospitality’s cash flow and debt position for fiscal 2025?

For fiscal 2025, RCI Hospitality generated $49.4 million in net cash from operating activities and $45.4 million in free cash flow. Debt totaled $235.8 million as of September 30, 2025, down slightly year over year, with cash and equivalents of $33.7 million.

What capital allocation actions did RCI Hospitality take around FY25?

RCI Hospitality continued its Back to Basics 5-Year Capital Allocation Plan, selling certain clubs and interests for several million dollars and repurchasing shares. As of March 13, 2026, the share count had fallen about 14% since fiscal 2024, to 7,710,000 shares outstanding.

What are RCI Hospitality’s strategic priorities for FY26?

For FY26, RCI plans to improve club and restaurant operations, sell around $32 million of excess real estate and underperforming locations, and use proceeds plus operating cash flow to acquire additional clubs, reduce debt, or repurchase shares as part of its capital allocation plan.

What are the key terms of RCI Hospitality’s agreement with Interim CFO Albert Molina?

Effective March 16, 2026, RCI entered a one-year employment agreement with Interim CFO Albert Molina providing a $320,000 annual salary, bonus eligibility, standard benefits, use of a company car and aircraft access, along with confidentiality and non-compete provisions following termination.

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