RCI Hospitality Holdings, Inc., operating through its subsidiaries, manages a diverse portfolio of hospitality and related enterprises across the United States. Its ...
RCI Hospitality Holdings, Inc. (NASDAQ: RICK) is a diversified hospitality company headquartered in Houston, Texas. Founded in 1983 by Robert Watters as Rick's Cabaret International, it changed its name to RCI Hospitality Holdings in 2014. The company operates through three segments: Nightclubs, Bombshells, and Other. The Nightclubs segment includes upscale ...RCI Hospitality Holdings, Inc. (NASDAQ: RICK) is a diversified hospitality company headquartered in Houston, Texas. Founded in 1983 by Robert Watters as Rick's Cabaret International, it changed its name to RCI Hospitality Holdings in 2014. The company operates through three segments: Nightclubs, Bombshells, and Other. The Nightclubs segment includes upscale adult entertainment venues such as Rick's Cabaret, Jaguars Club, Tootsie's Cabaret, and many others, catering primarily to business professionals. Bombshells is a chain of military-themed sports bars and restaurants, offering food and drinks in a casual setting. The 'Other' segment comprises media and trade assets, including national trade publications, a convention and tradeshow, award shows, and websites, as well as the U.S. license for Robust Energy Drink. With over 3,400 employees, RCI generates significant revenue, with a gross profit margin of about 45% and positive operating cash flow. The company has a market cap of around $210 million and trades on NASDAQ. Under the leadership of CEO and Chairman Travis Reese, who took over in late 2025, RCI focuses on capital allocation, acquiring and building successful nightclub and restaurant brands. Despite a recent net loss in TTM, the company maintains a strong EBITDA margin of 11.9% and has a history of paying dividends. RCI continues to expand its footprint and innovate within the hospitality industry.
YoYYoY means Year-over-Year. It compares the latest annual value with the previous annual value to show long-term trend strength.
QoQQoQ means Quarter-over-Quarter. It compares the latest quarter with the immediately previous quarter to show short-term momentum changes.
RevenueThe total money that came through the front door from selling things, before paying a single bill. Think of it as the grand total of every credit card swipe from customers. (YoY compares this year to last year's performance, while QoQ compares the current three months to the previous three).
$279.4M
-5.5%
+7.6%
Net IncomeThe absolute bottom line. If the company paid every single supplier, employee, banker, and tax collector, this is the actual money left in their pocket at the end of the day.
$10.8M
+259.1%
+2048.2%
Gross MarginThe basic markup. If they sell a $100 pair of sneakers, this percentage tells you how much of that price tag is profit right after paying for the rubber and shoelaces, but before paying for things like store rent or TV commercials.
+56.9%
-1.2%
+1.9%
Operating MarginThe 'day job' efficiency score. Out of every dollar a customer spends, this shows how many cents the company keeps after making the product AND paying for all the everyday corporate overhead (like salaries, marketing, and keeping the lights on).
+13.0%
+103.7%
+5.4%
Net MarginThe final take-home percentage. When you strip away every conceivable cost, tax, and interest payment, this is the exact number of cents the company truly gets to keep from every dollar in sales.
+3.9%
+279.8%
+1910.7%
Free Cash FlowThe holy grail of corporate cash. It's the spendable, physical money left over after the business pays for its daily operations AND buys the big, expensive upgrades (like new factories or servers) it needs to survive. This is the 'free' money they can use to pay dividends or buy back stock.
$34.9M
+11.5%
+21.7%
FCF MarginThe ultimate cash conversion rate. It shows how good the company is at turning regular sales directly into cold, hard, spendable cash. A high percentage means the business is an absolute cash-printing machine.
+12.5%
+18.0%
+13.1%
Debt / EquityThe financial risk gauge. It compares how much of the company's empire was built using borrowed money (loans) versus the owners' own money (shareholders). A high number means they are heavily leveraged and playing a riskier game; a low number means they are playing it safe.
102.0%
-1.3%
-5.3%
Current RatioThe 12-month survival check. It simply compares the cash they have right now (plus things they can quickly turn into cash) against the immediate bills they absolutely must pay this year. A score above 1 means they have enough in the wallet to cover the upcoming bills without panicking.
0.81x
-17.8%
+1.0%
Total AssetsThe absolute size of the company's empire. It bundles together absolutely everything of value they own—from the cash in the register and the inventory in the warehouse, to the software patents in the vault and the factories on the ground.
Bradley Chhay: Good afternoon, greetings, and welcome to RCI Hospitality Holdings Third Quarter Conference Call. My name is Bradley Chhay. You can find the company's presentation on RCI's website. Go to Investor Relations section. All the links are at the top of the page. Please turn to Slide 2 of our presentation. RCI is making this call exclusively on X Spaces. [Operator Instructions] This conference is also being recorded. Please turn to Page 3. I want to remind everybody of our safe harbor statement. You may hear or see forward-looking statements that involve risks and uncertainties. Actual results may differ materially from those currently anticipated. We disclaim any obligation to update information disclosed in this call as a result of developments that occur afterwards. Please turn to Page 4. I also direct you to the explanation of RICK's non-GAAP financial measures. Please turn to Slide 5. Our speakers today are Travis Reese, Interim President and CEO; and Albert Molina, Interim CFO. Now I'm pleased to introduce Travis. [Audio gap]
Albert Molina: Thank you, Travis. Turning to Slide 7. I'll start with a review of our consolidated results. All comparisons are year-over-year for the quarter, unless otherwise noted. Total revenues were $73.9 million compared to $71.1 million, a 4% increase. Impairments and other charges net were insignificant compared to $2.3 million. Net income attributable to RCIHH shareholders was $6.4 million compared to $4.1 million, a 57% increase. GAAP EPS was $0.83, an 80% increase and non-GAAP was $0.90 per share, a 17% increase. Net cash provided by operating activities and free cash flow were $2.5 million and $2.7 million lower, respectively. This primarily reflected payments of more outstanding payables compared to prior year quarter. On a sequential quarter basis, both net cash provided by operating activities and free cash flow were 14% and 26% higher, respectively. Adjusted EBITDA was $16.9 million, an increase of 10% year-over-year and 9% sequentially. Moving to Slide 8. I will now cover our results by segment, Nightclubs first. Revenues increased by 1% to a record $63 million. Four newly acquired opened and reformatted clubs generated $4 million and the 52 clubs in same-store sales produced $58.5 million. These more than offset $1.2 million in sales from 4 clubs closed subsequent to the year-ago quarter. By revenue type, service increased by 7.6%, food, merchandise and other declined by 1.4% and alcoholic beverages declined by 4.2%. Operating income was $19.6 million compared to $17.9 million with margin at 31.2% of segment revenues compared to 28.6%. Non-GAAP operating income, which excludes impairment and other net charges, was $20.2 million compared to $20.8 million with margin at 32.1% of segment revenues compared to 33.3%. On Slide 9 are the results for the Bombshells segment. Revenues increased by 25.4% to $10.8 million. Three new locations generated $2.6 million and the 9 location same-store sales …
