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RCI Hospitality (Nasdaq: RICK) 3Q26 EPS jumps to $0.83 on revenue growth

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

RCI Hospitality Holdings, Inc. reported fiscal 3Q26 results with total revenues of $73.9 million versus $71.1 million a year earlier. GAAP EPS was $0.83 compared with $0.46, while non-GAAP EPS was $0.90 versus $0.77, and adjusted EBITDA rose to $16.9 million from $15.3 million.

Nightclubs revenue grew to $63.0 million and Bombshells revenue to $10.8 million, with Bombshells operating income improving to $759,000 from $67,000. Net cash provided by operating activities was $11.3 million and free cash flow $10.6 million. Debt was $240.1 million at June 30, 2026, and weighted average shares declined to 7.65 million due to share buybacks.

For the first nine months of fiscal 2026, revenues were $213.5 million versus $208.5 million, GAAP EPS was $0.16 versus $1.84, and non-GAAP EPS was $2.41 versus $2.23, reflecting higher impairments and a premium on stock repurchases in the current year.

Positive

  • 3Q26 profitability improved, with EPS $0.83 vs $0.46, non-GAAP EPS $0.90 vs $0.77, and adjusted EBITDA $16.9M vs $15.3M, supported by stronger segment margins and lower corporate expenses.
  • Bombshells segment accelerated, with revenue up 25.4% to $10.8M and operating income rising to $759,000 from $67,000, helped by new locations and 4.7% same-store sales growth.

Negative

  • Year-to-date GAAP earnings weakened, with 9M26 EPS $0.16 vs $1.84 and net income $1.3M vs $16.3M, driven by $8.4M of impairments and a $9.9M premium on stock repurchases.
  • Cash generation softened, as 3Q26 operating cash flow $11.3M vs $13.8M and free cash flow $10.6M vs $13.3M, while 9M free cash flow declined to $25.7M from $32.3M.

Filing Explained

At June 30, 2026, RCI reported cash and $240.1 million of debt alongside its filed quarterly results.

This Form 8-K reports a specified material event: RCI Hospitality Holdings disclosed fiscal third-quarter results and filed the related Form 10-Q, making its current operating and financial condition available to existing common holders.

Item 2.02 identifies the disclosure as results of operations and financial condition; the press release is furnished as Exhibit 99.1 rather than treated as filed for purposes of Section 18 or incorporated by reference.

At June 30, 2026, the balance sheet reported cash and the release reported $240.1 million of debt, providing balance-sheet context alongside the quarter's results.

The company also said it would hold an X Spaces conference call at 4:30 p.m. ET on August 6, 2026 to discuss the results and related matters.

Item 2.02 Results of Operations and Financial Condition Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01 Financial Statements and Exhibits Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
3Q26 Total Revenues $73.9 million Quarter ended June 30, 2026, versus $71.1 million in 3Q25
3Q26 GAAP EPS $0.83 Quarter ended June 30, 2026, versus $0.46 in 3Q25
3Q26 Non-GAAP EPS $0.90 Quarter ended June 30, 2026, versus $0.77 in 3Q25
3Q26 Adjusted EBITDA $16.9 million Quarter ended June 30, 2026, versus $15.3 million in 3Q25
3Q26 Net cash from operating activities $11.3 million Quarter ended June 30, 2026, versus $13.8 million in 3Q25
3Q26 Free cash flow $10.6 million Quarter ended June 30, 2026, versus $13.3 million in 3Q25
Debt at June 30, 2026 $240.1 million Total debt declined $8.6 million from $248.7 million at March 31, 2026
Weighted average shares 3Q26 7.65 million Basic and diluted shares used in EPS, down 13.0% from 8.79 million
Adjusted EBITDA financial
"Adjusted EBITDA 1 | $16.9 | $15.3 | $48.2 | $45.2"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
free cash flow financial
"Free cash flow 1 | $10.6 | $13.3 | $25.7 | $32.3"
Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.
Non-GAAP net income per diluted share financial
"We calculate non-GAAP net income and non-GAAP net income per diluted share"
Non‑GAAP net income per diluted share is a company’s profit per share calculated after removing certain items the company considers unusual or nonrecurring, and spreading that profit across all shares that might exist if convertible securities were exercised. Investors use it to see an adjusted view of ongoing profitability—like measuring a car’s cruising speed after smoothing out speed bumps—but it can omit costs that matter, so compare it with standard GAAP figures.
Accounting Standards Update (ASU) 2023-07 regulatory
"The Company has adopted Accounting Standards Update (ASU) 2023-07"
Accounting Standards Update (ASU) 2023-07 is a formal change issued by the U.S. accounting standard setter that requires companies to provide clearer, more detailed information about their operating segments and the revenue and performance measures used to evaluate them. For investors it matters because the rule makes it easier to see which parts of a business drive results—think of it as breaking a company’s financial “black box” into labeled compartments so you can better compare performance, spot risks, and make more informed investment decisions.
operating lease right-of-use assets financial
"Operating lease right-of-use assets | 23,560"
An operating lease right-of-use (ROU) asset is an accounting entry that shows the value of a leased item you have the legal right to use—like a building, vehicle, or equipment—recorded on a company’s balance sheet along with the corresponding lease obligation. Investors care because it adds to reported assets and liabilities, changing measures like leverage and return on assets much like bringing a long-term rental onto the company’s financial snapshot, which can affect credit terms and valuation.
Revenue $73.9 million 3Q25: $71.1 million
GAAP EPS $0.83 3Q25: $0.46
Non-GAAP EPS $0.90 3Q25: $0.77
Adjusted EBITDA $16.9 million 3Q25: $15.3 million
Net income attributable to common stockholders $6.4 million 3Q25: $4.1 million

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FAQ

What were RCI Hospitality (RICK) revenues and EPS for fiscal 3Q26?
RCI Hospitality reported 3Q26 revenue of $73.9 million versus $71.1 million in 3Q25 and GAAP EPS of $0.83 compared with $0.46. Non-GAAP EPS was $0.90 versus $0.77, reflecting higher operating income and lower impairments.

How did RCI Hospitality (RICK) segments perform in 3Q26?
In 3Q26, Nightclubs delivered $63.0 million in revenue, up 1.0%, with operating income of $19.6 million. Bombshells generated $10.8 million in revenue, up 25.4%, and operating income of $759,000 versus $67,000 a year earlier.

What were RCI Hospitality (RICK) 3Q26 cash flow and free cash flow figures?
For 3Q26, RCI generated net cash from operating activities of $11.3 million compared with $13.8 million in 3Q25. Free cash flow was $10.6 million, down from $13.3 million, after $0.6 million of maintenance capital expenditures.

How did RCI Hospitality’s (RICK) debt and share count change by June 30, 2026?
Total debt was $240.1 million at June 30, 2026, down $8.6 million from March 31, 2026. Weighted average shares outstanding declined to 7.65 million, a 13.0% decrease from 8.79 million, primarily due to share repurchases.

What were RCI Hospitality’s (RICK) 9M26 results versus 9M25?
For the first nine months of fiscal 2026, RCI reported revenue of $213.5 million versus $208.5 million in 9M25. GAAP EPS was $0.16 vs $1.84, while non-GAAP EPS improved to $2.41 vs $2.23, reflecting impairments and stock repurchase premiums.

What is RCI Hospitality’s (RICK) Adjusted EBITDA and margin for 3Q26?
RCI reported 3Q26 Adjusted EBITDA of $16.9 million, up from $15.3 million in 3Q25. Adjusted EBITDA margin was 22.9%, compared with 21.6% a year earlier, indicating stronger underlying operating performance after normalizing for non-recurring items.
FALSE000093541900009354192026-08-062026-08-06

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): August 6, 2026
RCI HOSPITALITY HOLDINGS, INC.
(Exact Name of Registrant as Specified in Its Charter)
Texas001-1399276-0458229
(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:
oWritten communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a -12)
oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d -2(b))
oPre-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 classTrading Symbol(s)Name of each exchange on which registered
Common stock, $0.01 par valueRICKThe 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 August 6, 2026, we issued a press release announcing results for the fiscal quarter ended June 30, 2026, and the filing of our quarterly report on Form 10-Q for that quarter. Also on August 6, 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 9.01 FINANCIAL STATEMENTS AND EXHIBITS
 
(d) Exhibits
 
Exhibit NumberDescription
99.1
Press release of RCI Hospitality Holdings, Inc. dated August 6, 2026
104Cover 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: August 6, 2026By:/s/ Travis Reese
Travis Reese
Interim President and Chief Executive Officer
3

image_0a.jpg
RCI Files 10-Q, Reports Results for 3Q26, Hosts X Spaces Call at 4:30 PM ET Today
HOUSTON—August 6, 2026—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
1

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%.
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
2

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.
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
Nine Months Ended
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
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
Cost of goods sold
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)
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 
%
Earnings per share
Basic and diluted
$
0.83 
$
0.46 
$
0.16 
$
1.84 
Weighted average shares used in computing earnings per share
Basic and diluted
7,653,000 
8,793,809 
7,898,831 
8,859,028 

4

RCI HOSPITALITY HOLDINGS, INC.
SEGMENT INFORMATION
(in thousands)
Three Months Ended
Nine Months Ended
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
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 
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 

5

RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended
Nine Months Ended
June 30, 2026
June 30, 2025
June 30, 2026
June 30, 2025
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 
6

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 


7

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 
8

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 
%
9

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 
%
10

Source: View Original Filing on SEC EDGAR

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