olivLaw · US equity research
RCI Hospitality Holdings, Inc. RICK
Retail-Eating Places · SIC 5812 · Vertical: Retail-Eating Places (SIC 5812)
RCI Hospitality Holdings operates adult nightclubs and sports bars under brands such as Rick's Cabaret and Bombshells, reporting consolidated revenues of 279.4 million USD in fiscal 2025. Its Back-to-Basics strategy, launched in December 2024, focuses on existing units, and combined club and sports bar sales grew 2.0% in fiscal 2026, making the trajectory of same-store sales worth close monitoring.
At the close of 05 Nov 2026, RCI Hospitality Holdings, Inc. (RICK) stock was 29.21 USD (−3.09% on the day), with market capitalisation 223.3 m USD, dividend yield 1.03%, beta 1.08, 52-week range 20.82–31.34 USD. Latest reported quarter (Q3 2026): revenue of 73.9 m USD (+3.9% YoY), net income of 6.4 m USD (+56.5% YoY), diluted EPS 0.83 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 61.9
- strong (55–70)
- Bollinger (20, 2)
- 24.69 – 29.91
- in the upper half of the band · %B 0.87 · band width 19.1%
- SMA 50 / 200
- 27.77 / 25.87
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.55 / 0.19
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +11.9% | −5.9% | +17.8 pp | — |
| 3 months | +11.3% | −4.6% | +15.9 pp | — |
| 6 months | +10.6% | +0.2% | +10.4 pp | — |
| Year to date | +22.5% | +7.4% | +15.1 pp | — |
| 1 year | +17.7% | +8.2% | +9.5 pp | +8.4% |
| 3 years | −47.3% | +68.4% | −115.7 pp | −0.6% |
| 5 years | −60.6% | +56.5% | −117.1 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q3 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 73.2 m | 71.5 m | 65.9 m | 71.1 m | 70.9 m | 70.8 m | 68.7 m | 73.9 m |
| SG&A | 24.8 m | 26.2 m | 22.9 m | 26.1 m | 32.6 m | 24.7 m | 23.2 m | 25.4 m |
| Operating income | 3.5 m | 13.9 m | 8.2 m | 8.7 m | -523.0 k | 11.0 m | 3.8 m | 13.0 m |
| Depreciation & amortisation | 3.8 m | 3.6 m | 3.8 m | 3.9 m | 3.8 m | 4.2 m | 4.0 m | 4.0 m |
| Interest expense | 4.2 m | 4.2 m | 4.0 m | 4.0 m | 4.1 m | 4.4 m | 4.5 m | 4.5 m |
| Pre-tax income | -543.0 k | 10.9 m | 4.3 m | 4.8 m | -4.5 m | -3.1 m | -617.0 k | 8.6 m |
| Income tax | -788.0 k | 1.8 m | 1.1 m | 733.0 k | 961.0 k | 1.5 m | -398.0 k | 2.1 m |
| Net income | 244.0 k | 9.0 m | 3.2 m | 4.1 m | -5.5 m | -4.7 m | -326.0 k | 6.4 m |
| Diluted EPS | 0.03 | 1.01 | 0.36 | 0.46 | -0.63 | -0.57 | -0.04 | 0.83 |
| Operating cash flow | 15.7 m | 13.3 m | 8.5 m ≈ | 13.8 m ≈ | 13.7 m | 7.8 m | 9.9 m ≈ | 11.3 m ≈ |
| Capex | 5.4 m | 5.8 m | 2.9 m ≈ | 3.7 m ≈ | 2.2 m | 2.3 m | 1.9 m ≈ | 1.5 m ≈ |
| Dividends paid | 628.0 k | 623.0 k | 619.0 k ≈ | 614.0 k ≈ | 608.0 k | 545.0 k | 617.0 k ≈ | 611.0 k ≈ |
| Share repurchases | 7.8 m | 3.2 m | 2.9 m ≈ | 3.0 m ≈ | 2.7 m | 9.8 m | 2.4 m ≈ | 1.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 165.7 m | 181.1 m | 132.3 m | 195.3 m | 267.6 m | 293.8 m | 295.6 m | 279.4 m |
| Revenue YoY | +14.4% | +9.2% | −26.9% | +47.6% | +37.1% | +9.8% | +0.6% | −5.5% |
| Net income | 20.9 m | 20.3 m | -6.1 m | 30.3 m | 46.0 m | 29.2 m | 3.0 m | 10.8 m |
| Net income YoY | +152.8% | −2.8% | −130.0% | unavailable | +51.8% | −36.5% | −89.7% | +259.1% |
| Diluted EPS | 2.15 | 1.99 | -0.66 | 3.37 | 4.91 | 3.13 | 0.33 | 1.23 |
| Diluted EPS YoY | +152.9% | −7.4% | −133.2% | unavailable | +45.7% | −36.3% | −89.5% | +272.7% |
| net % | 12.6% | 11.2% | -4.6% | 15.5% | 17.2% | 10.0% | 1.0% | 3.9% |
| Free cash flow | 506.0 k | 16.5 m | 9.9 m | 28.5 m | 40.5 m | 18.7 m | 31.3 m | 34.9 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 30 Sept 2025
- Cash
- 33.7 m USD
- Financial debt
- 235.8 m USD
- Net debt
- 202.1 m USD
- Equity
- 260.9 m USD
- Total assets
- 596.9 m USD
- Debt / equity
- 0.90x
- Current ratio
- 0.81x
- ROE
- 4.1%
- ROA
- 1.8%
- FCF margin
- 12.5%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 132.3 m | 195.3 m | 267.6 m | 293.8 m | 295.6 m | 279.4 m | SEC (XBRL)· 19 Mar 2026verified |
| Cost of revenue | 19.4 m | — | — | — | — | — | SEC (XBRL)· 14 Dec 2020verified |
| Gross profit | 112.9 m ≈ | — | — | — | — | — | SEC (XBRL)· 14 Dec 2020derived |
| SG&A | 51.7 m | 54.6 m | 78.8 m | 93.0 m | 99.7 m | 107.8 m | SEC (XBRL)· 19 Mar 2026verified |
| Operating income | 2.7 m | 38.5 m | 71.5 m | 51.5 m | 18.8 m | 30.3 m | SEC (XBRL)· 19 Mar 2026verified |
| Depreciation & amortisation | 8.8 m | 8.2 m | 12.4 m | 15.2 m | 15.4 m | 15.1 m | SEC (XBRL)· 19 Mar 2026verified |
| EBITDA | 11.6 m ≈ | 46.8 m ≈ | 83.9 m ≈ | 66.6 m ≈ | 34.2 m ≈ | 45.3 m ≈ | SEC (XBRL)· 19 Mar 2026derived |
| Interest expense | 9.8 m | 10.0 m | 12.0 m | 15.9 m | 16.7 m | 16.4 m | SEC (XBRL)· 19 Mar 2026verified |
| Pre-tax income | -6.8 m | 34.1 m | 60.1 m | 35.9 m | 2.6 m | 15.4 m | SEC (XBRL)· 19 Mar 2026verified |
| Income tax | -493.0 k | 4.0 m | 14.1 m | 6.8 m | -410.0 k | 4.6 m | SEC (XBRL)· 19 Mar 2026verified |
| Net income | -6.1 m | 30.3 m | 46.0 m | 29.2 m | 3.0 m | 10.8 m | SEC (XBRL)· 19 Mar 2026verified |
| Diluted EPS | -0.66 | 3.37 | 4.91 | 3.13 | 0.33 | 1.23 | SEC (XBRL)· 19 Mar 2026verified |
| Weighted average diluted shares | 9.2 m | 9.0 m | 9.4 m | 9.3 m | 9.3 m | 8.8 m | SEC (XBRL)· 19 Mar 2026verified |
| Dividend per share | 0.14 | 0.16 | 0.19 | 0.23 | 0.25 | 0.28 | SEC (XBRL)· 19 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue; Operating income + Depreciation & amortisation.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 15.6 m | 35.7 m | 36.0 m | 21.0 m | 32.4 m | 33.7 m | SEC (XBRL)· 19 Mar 2026verified |
| Receivables | 6.8 m | 7.6 m | 8.5 m | 9.8 m | 5.8 m | — | SEC (XBRL)· 10 Feb 2025verified |
| Inventories | 2.4 m | 2.7 m | 3.9 m | 4.4 m | 4.7 m | 4.9 m | SEC (XBRL)· 19 Mar 2026verified |
| Current assets | 31.4 m | 53.0 m | 51.2 m | 37.5 m | 47.3 m | 50.9 m | SEC (XBRL)· 19 Mar 2026verified |
| Property, plant & equipment, net | 181.4 m | 176.0 m | 224.6 m | 282.7 m | 280.1 m | 279.0 m | SEC (XBRL)· 19 Mar 2026verified |
| Goodwill | 45.7 m | 39.4 m | 67.8 m | 70.8 m | 61.9 m | 62.7 m | SEC (XBRL)· 19 Mar 2026verified |
| Intangibles (excl. goodwill) | 73.1 m | 67.8 m | 144.0 m | 179.1 m | 163.5 m | 171.9 m | SEC (XBRL)· 19 Mar 2026verified |
| Total assets | 360.9 m | 364.6 m | 530.7 m | 610.9 m | 584.4 m | 596.9 m | SEC (XBRL)· 19 Mar 2026verified |
| Accounts payable | 4.8 m | 4.4 m | 5.5 m | 6.1 m | 5.6 m | 5.8 m | SEC (XBRL)· 19 Mar 2026verified |
| Short-term debt | 16.3 m | 6.4 m | 11.9 m | 22.8 m | 18.9 m | 21.2 m | SEC (XBRL)· 19 Mar 2026verified |
| Long-term debt | 125.1 m | 118.7 m | 190.6 m | 216.9 m | 219.3 m | 214.6 m | SEC (XBRL)· 19 Mar 2026verified |
| Current liabilities | 37.3 m | 23.0 m | 31.5 m | 48.0 m | 48.1 m | 63.0 m | SEC (XBRL)· 19 Mar 2026verified |
| Total liabilities | 208.6 m | 185.4 m | 289.0 m | 329.6 m | 321.3 m | 336.1 m | SEC (XBRL)· 19 Mar 2026verified |
| Equity | 152.3 m | 179.2 m | 241.8 m | 281.3 m | 263.1 m | 260.9 m | SEC (XBRL)· 19 Mar 2026verified |
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 15.6 m | 42.0 m | 64.5 m | 59.1 m | 55.9 m | 49.4 m | SEC (XBRL)· 19 Mar 2026verified |
| Capex | 5.7 m | 13.5 m | 24.0 m | 40.4 m | 24.6 m | 14.5 m | SEC (XBRL)· 19 Mar 2026verified |
| Free cash flow | 9.9 m ≈ | 28.5 m ≈ | 40.5 m ≈ | 18.7 m ≈ | 31.3 m ≈ | 34.9 m ≈ | SEC (XBRL)· 19 Mar 2026derived |
| Investing cash flow | -994.0 k | -6.8 m | -67.8 m | -64.8 m | -21.0 m | -24.0 m | SEC (XBRL)· 19 Mar 2026verified |
| Financing cash flow | -13.1 m | -15.1 m | 3.6 m | -9.3 m | -23.5 m | -24.0 m | SEC (XBRL)· 19 Mar 2026verified |
| Dividends paid | 1.3 m | 1.4 m | 1.8 m | 2.1 m | 2.3 m | 2.5 m | SEC (XBRL)· 19 Mar 2026verified |
| Share repurchases | 9.5 m | 1.8 m | 15.1 m | 2.2 m | 20.6 m | 11.9 m | SEC (XBRL)· 19 Mar 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 38 / 100
A scoring methodology on indicators and valuation, not investment advice.
score < 40
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 223.3 m USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet2
- Returns100
- Quality40
- Growth6
- Valuation71
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 3.68 – 177.18 USD.
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)79.96 – 177.18 (Mid 112.75)WACC 7.1% · starting FCFF 49.4 m USD · terminal value share of EV 80%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/EBITDA11.73 – 60.97 (Mid 26.91)22 companies used · median multiple 9.7x · quartiles 7.0x – 15.7xARCO, ARMK, BDL, BJRI, BLMN, CAKE, CBRL, DRI, FWRG, GTIM, LOCO, MCD, NATH, PTLO, PZZA, QSR, RRGB, STKS, TXRH, WING, YUM, YUMC
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)3.68 – 4.95 (Mid 4.22)
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Unattractive profile · Score 38/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | 4.9% | 45 (vs peers) | 13% |
| Net margin · Quality | -1.5% | 31 (vs peers) | 8% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | 1.5% | 12 (on a fixed band) | 10% |
| EPS CAGR 3Y · Growth | -37.0% | 0 (on a fixed band) | 10% |
| Net debt / EBITDA · Balance sheet | 4.9x | 4 (vs peers) | 13% |
| Interest coverage · Balance sheet | 1.6x | 1 (on a fixed band) | 8% |
| Current ratio · Balance sheet | 0.6x | 0 (on a fixed band) | 5% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | 10.1x | 48 (vs peers) | 13% |
| FCF yield · Valuation | 15.6% | 100 (on a fixed band) | 10% |
| Shareholder yield (distributions) · Returns | 8.2% | 100 (on a fixed band) | 8% |
| Payout ratio (FCF) · Returns | 6.9% | 100 (on a fixed band) | 5% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet2/100 · 3/3 factors with a value
- Growth6/100 · 2/2 factors with a value
- Quality40/100 · 2/3 factors with a value
- Returns100/100 · 2/2 factors with a value
- Valuation71/100 · 2/3 factors with a value
Memo
RCI HOSPITALITY HOLDINGS, INC. (RICK). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 279.4 m USD in 2025; YoY growth -5.5%; net margin -1.5%; ROE -1.7%; net debt/EBITDA 4.9x.
The estimated value range is 11.73–60.97 USD per share (median of 3 methods, agreement: low); assumptions are illustrative. Against the central value of 26.91 USD, the price of 29.21 USD leaves a potential of -7.9% (value / price − 1) and a margin of safety of -8.6% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 38/100, methodological classification: unattractive profile (score, margin of safety and method agreement together; not a judgement of the right price). Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF yield: 15.6%
- Shareholder yield (distributions): 8.2%
- Payout ratio (FCF): 6.9%
What contradicts it
- Revenue CAGR 3Y: 1.5%
- EPS CAGR 3Y: -37.0%
- Net debt / EBITDA: 4.9x
- Interest coverage: 1.6x
- Current ratio: 0.6x
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): FCF conversion, P/E (TTM).
Versus the vertical median
Retail-Eating Places (SIC 5812) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| MCDMcDONALD’S CORPORATION | 196.8 bn | 0.0 | — | 31.7% | +3.7% | −11% / −1% |
| YUMYum! Brands, Inc. | 45.3 bn | 20.9 | — | 25.4% | +8.8% | +8% / +32% |
| CMGChipotle Mexican Grill, Inc. | 44.8 bn | 33.1 | 48.5% | 10.8% | +5.4% | +3% / −20% |
| DRIDarden Restaurants, Inc. | 25.9 bn | 22.3 | 55.1% | 8.8% | +9.4% | +27% / +46% |
| QSRRestaurant Brands International Inc. | 24.9 bn | 18.3 | 53.8% | 20.1% | +12.2% | +9% / +11% |
| YUMCYum China Holdings, Inc. | 16.8 bn | 17.4 | 18.2% | 7.9% | +4.4% | +3% / +15% |
| ARMKAramark | 13.3 bn | 35.3 | 11.8% | 1.9% | +6.4% | +35% / +80% |
| TXRHTexas Roadhouse, Inc. | 12.6 bn | 30.6 | 28.1% | 6.8% | +9.4% | +9% / +70% |
| EATBrinker International, Inc. | 8.8 bn | 18.7 | 134.7% | 8.4% | +7.9% | +38% / +491% |
| CAVACAVA Group, Inc. | 7.0 bn | 108.4 | 7.9% | 4.5% | +22.4% | +23% / +76% |
| CAKEThe Cheesecake Factory Incorporated | 5.5 bn | 26.3 | 41.6% | 5.2% | +4.7% | +132% / +253% |
| WINGWingstop Inc. | 4.5 bn | 38.9 | — | 16.0% | +11.4% | −37% / −31% |
| CBRLCracker Barrel Old Country Store, Inc. | 1.5 bn | 48.5 | 6.7% | 1.0% | −4.7% | +135% / +1% |
| ARCOArcos Dorados Holdings Inc. | 1.5 bn | 6.9 | 33.2% | 4.5% | +4.7% | −8% / −40% |
| BJRIBj’s Restaurants, Inc. | 1.2 bn | 31.2 | 10.4% | 2.9% | +3.1% | +52% / +95% |
| SGSweetgreen, Inc. | 1.1 bn | 115.4 | 3.1% | 2.0% | +0.4% | +78% / +23% |
| BLMNBloomin’ Brands, Inc. | 896.5 m | 33.5 | 6.7% | 0.7% | +0.1% | +47% / −55% |
| FWRGFirst Watch Restaurant Group, Inc. | 809.9 m | 40.9 | 3.1% | 1.5% | +20.3% | −29% / −27% |
| PZZAPapa John’s International, Inc. | 655.2 m | 26.3 | — | 1.4% | −0.3% | −53% / −70% |
| LOCOEl Pollo Loco Holdings, Inc. | 500.9 m | 14.1 | 11.8% | 7.0% | +3.6% | +51% / +98% |
| DINDine Brands Global, Inc. | 441.1 m | 105.0 | — | 0.4% | +8.2% | +15% / −17% |
| PTLOPortillo's Inc. | 433.8 m | 31.5 | 3.6% | 2.3% | +3.0% | +34% / −55% |
| NATHNathan's Famous, Inc. | 418.2 m | 21.1 | — | 11.8% | +9.4% | −4% / +56% |
| RICKRci Hospitality Holdings, Inc. | 223.3 m | — | -1.7% | -1.5% | −5.5% | +18% / −47% |
| RRGBRed Robin Gourmet Burgers, Inc. | 168.4 m | — | — | -2.5% | −3.1% | +103% / +1% |
1- and 3-year price returns: for RICK from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
RCI Hospitality Holdings operates adult nightclubs and sports bars under brands such as Rick's Cabaret and Bombshells, reporting consolidated revenues of 279.4 million USD in fiscal 2025 1. Its Back-to-Basics strategy, launched in December 2024, focuses on existing units, and combined club and sports bar sales grew 2.0% in fiscal 2026 3, making the trajectory of same-store sales worth close monitoring.
SWOT
Strengths
- The company has a diverse portfolio of recognized club brands, a presence in several states and a Media Group that holds a leading position in its industry 1.
- Gross margins in the Nightclubs segment are high, and operating cash flow has remained significant in recent years 1.
- The Back-to-Basics strategy focuses on existing unit performance, which can support profitability without relying solely on expansion 1.
Weaknesses
- Same-store sales declined in both segments over fiscal 2026 as a whole, indicating pressure on existing demand 3.
- The Bombshells segment has reported operating losses in the past and has required closures and reformats of locations 1.
- The company has identified material weaknesses in internal control over financial reporting, which may affect investor confidence 1.
Opportunities
- The Bombshells recovery in the second half of fiscal 2026 could show that the turnaround program is working and support growth 3.
- Club acquisitions and expansion of the media business could add revenue if completed at reasonable prices 1.
- Reformats and rebrandings of existing units have already added revenue and could continue to support results 2.
Threats
- The industry is sensitive to local economic conditions and changing customer preferences, which can reduce demand quickly 1.
- Advocacy groups may challenge permits and licenses, and some financial institutions may decline to do business with the company 1.
- Rules on the status of entertainers and on alcohol licences could substantially change the business model 1.
Risks
- Volatility of consumer demandhigh
Demand for adult entertainment is sensitive to the local economy, and the decline in same-store sales in fiscal 2026 shows that this exposure is real 13.
- Regulation of entertainer statushigh
If law required independent entertainers to be classified as employees, personnel and tax costs could rise significantly 1.
- Alcohol permits and licencesmedium
Loss or suspension of permits to sell alcoholic beverages could affect revenue in several states, especially Texas 1.
- Impairment of assetsmedium
The company recorded impairments of property and licences in prior years, and further impairments could follow if unit performance weakens 1.
- Internal controls and compliancemedium
Material weaknesses in internal control and changes in leadership could affect reporting and management attention 13.
Investment thesis
What would need to be true (bull case)
- If the Bombshells recovery seen in the second half of fiscal 2026 holds, stronger same-store sales could change the profile of the segment and support long-term targets 3.
- The high margins of the clubs and the wide footprint of locations could give the company capacity to fund acquisitions and share buybacks 1.
- Revenue growth in early fiscal 2026, supported by new locations, could show that the selective expansion strategy is working 2.
What would break the thesis
- Same-store sales declining in both segments over fiscal 2026 could indicate erosion of core demand that new locations do not offset 3.
- Regulatory risks on entertainer status and alcohol licences could weigh on profitability in ways that are hard to anticipate 1.
- The history of impairments and closures in the Bombshells segment shows that some investments may not deliver expected returns 1.
What to watch
- Same-store sales trends in Nightclubs and BombshellsQ1 2027
- Results of the Bombshells turnaround program2027
- Progress toward the 400 million USD revenue target2029
- Remediation of material weaknesses in internal controlnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
RCI Hospitality Holdings, Inc. is a holding company that, through its subsidiaries, offers live adult entertainment and high-quality dining experiences. Its subsidiaries operated 71 establishments in 15 states as of September 30, 2025 1, and 68 establishments as of June 30, 2026 2. The company also operates a business communications company serving the adult nightclub industry.
The Nightclubs segment includes adult entertainment clubs under many brands, such as Rick's Cabaret, Jaguars Club and Scarlett's Cabaret, earning revenue from services, alcoholic beverages, food and merchandise. The Bombshells segment operates restaurant and bar concepts with military-themed décor, and in fiscal 2025 a number of locations were closed while the concept is reviewed 1. The Other segment includes the Media Group, which publishes trade magazines and runs industry expos, and Drink Robust, licensed to sell Robust Energy Drink in the United States 1.
The company has refined its capital allocation approach, dividing free cash flow among club acquisitions, share buybacks and dividends, and its fiscal 2029 targets include total revenues of 400 million USD and free cash flow of 75 million USD 1. Revenues were 279.4 million USD in fiscal 2025 1 and 213.5 million USD for the first nine months of fiscal 2026 2.
Segments
Other
The Other segment comprises the Media Group and Drink Robust. Its revenues are small relative to the clubs, and they declined in the first nine months of fiscal 2026 compared with the prior year 2.
Market context
The adult nightclub industry is, according to the company, extremely volatile and sensitive to local economic conditions, and the Media Group states that the roughly 2,000 adult nightclubs of North America have collective revenue above 5 billion USD 1. The company cited challenging macroeconomic conditions for weaker same-store sales, but noted that operational adjustments could improve results, as they did in September 2026 3.
Trends
- Bombshells turnaround programtailwind
The mid-year turnaround in fiscal 2026 lifted Bombshells same-store sales by 8.2% in the second half after a 16.7% decline in the first half 3. If this pattern holds, it could support segment margins.
- Pressure on consumer spendingheadwind
Same-store sales at the clubs declined in the third and fourth quarters of fiscal 2026, and the company pointed to difficult macroeconomic conditions 23. Weaker consumer spending could limit growth.
- New locations and reformatsmixed
New and reformatted units contributed to revenue growth in fiscal 2026, but these effects are tied to the success of individual openings and may not persist 23.
- Regulation of entertainers and workforceheadwind
Industry players could be required to reclassify independent entertainers as employees, which would raise personnel costs; the company has prepared plans for that scenario 1.
Competitive position
Adult clubs and restaurant or sports bar concepts are highly competitive on price, service and location. Each club competes with locally owned adult clubs, some of which have brand recognition comparable to the company's 1. The company believes its brands and distinctive environment allow it to compete effectively.
In the restaurant and sports bar business, Bombshells competes with other concepts in the cities where it operates, and the company cannot assure that it will maintain its level of brand recognition 1. Its presence across several states, particularly Texas, offers a scale advantage 1.
- Locally owned independent adult clubs
Local competitors, some with comparable brand recognition, operating in the same cities as the company's units 1.
- Upscale entertainment venues competing for corporate spending
Venues competing for the entertainment budgets of customers, a dynamic the company describes as unpredictable 1.
- Local restaurants and sports bars
Competitors for the Bombshells segment, against which the company competes on price, service and location 1.
- Other consumer entertainment concepts
Businesses competing for consumers' overall entertainment spending, a factor the company considers unpredictable 1.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Current report08 Oct 2026Results of operations · Financial statements and exhibits
- Current report04 Sept 2026Departure or appointment of officers · Financial statements and exhibits
- Current report20 Aug 2026Shareholder vote · Financial statements and exhibits
- Current report06 Aug 2026Results of operations · Financial statements and exhibits
- Quarterly report06 Aug 2026
- Current report09 Jul 2026Results of operations · Financial statements and exhibits
- Proxy statement07 Jul 2026
- Current report01 Jun 2026Other events · Financial statements and exhibits
- Current report28 May 2026Results of operations · Financial statements and exhibits
- Quarterly report28 May 2026
Sources
- [1] Form 10-K, fiscal year ended 2025-09-30 · SEC / RCI Hospitality Holdings, Inc. · 19 Mar 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / RCI Hospitality Holdings, Inc. · 06 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / RCI Hospitality Holdings, Inc. · 08 Oct 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.