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RCI Hospitality Holdings (RICK)
NASDAQ:RICK
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RCI Hospitality Holdings (RICK) AI Stock Analysis

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RICK

RCI Hospitality Holdings

(NASDAQ:RICK)

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Neutral 62 (OpenAI - Gpt-5.6Sol)
Rating:62Neutral
Price Target:
$33.00
▲(11.19% Upside)
Action:Reiterated
Date:08/21/26
The score is driven primarily by mixed financial performance: strong cash generation and materially improved leverage are positives, but the income statement deterioration (TTM net loss and weaker operating profitability versus 2022–2023) is a major drag. Technically, the uptrend is supportive but appears overextended (high RSI/Stoch). Valuation is pressured by negative earnings and a modest dividend. Earnings call commentary adds support via improving margins and disciplined debt paydown, while corporate events are mixed due to recent filing-related compliance issues.
Positive Factors
Material Debt Reduction
The sharp reduction in debt materially strengthens financial flexibility, lowers interest burden and improves resilience. Continued paydowns could support future acquisitions and capital returns once leverage targets are reached.
Negative Factors
TTM Profitability Deterioration
The move from strong 2022–2023 profitability to a TTM net loss signals weaker earnings quality and higher volatility. Sustained operating improvement is needed before cash generation translates into dependable shareholder profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Material Debt Reduction
The sharp reduction in debt materially strengthens financial flexibility, lowers interest burden and improves resilience. Continued paydowns could support future acquisitions and capital returns once leverage targets are reached.
Read all positive factors

RCI Hospitality Holdings (RICK) vs. SPDR S&P 500 ETF (SPY)

RCI Hospitality Holdings Business Overview & Revenue Model

Company Description
RCI Hospitality Holdings, Inc., operating through its subsidiaries, manages a diverse portfolio of hospitality and related enterprises across the United States. Its activities are organized into three main divisions: Nightclubs, Bombshells, and an...
How the Company Makes Money
RCI Hospitality Holdings makes money primarily by selling on-premise experiences across two operating segments: adult entertainment nightclubs and casual dining restaurants. In its Nightclubs segment, revenue is generated from multiple in-venue sp...

RCI Hospitality Holdings Earnings Call Summary

Earnings Call Date:Aug 06, 2026
(Q3-2026)
|
% Change Since: |
Next Earnings Date:Feb 11, 2027
Earnings Call Sentiment Positive
The call conveyed a generally positive operating and financial trajectory: revenue growth, large improvement in net income and EPS, a meaningful Bombshells turnaround, expanding adjusted EBITDA and improving margins, and active debt reduction. Offsetting items include year-over-year declines in cash flow, some softness in beverage/food revenues within Nightclubs, elevated but improving leverage, ongoing contractual cash outflows, unresolved legal matters, and operational disruptions (technical issues on the call and property rebuild delays). Management is prioritizing debt paydown and asset sales while preparing to resume buybacks and pursue accretive acquisitions, indicating confidence in future performance.
Positive Updates
Consolidated Revenue Growth
Total revenues of $73.9M vs $71.1M in prior-year quarter, a 4% increase, driven by Nightclubs and Bombshells contributions.
Negative Updates
Year-over-Year Cash Flow Decline
Net cash provided by operating activities and free cash flow were lower year-over-year by $2.5M and $2.7M respectively, primarily due to payments of more outstanding payables vs prior-year quarter.
Read all updates
Q3-2026 Updates
Negative
Consolidated Revenue Growth
Total revenues of $73.9M vs $71.1M in prior-year quarter, a 4% increase, driven by Nightclubs and Bombshells contributions.
Read all positive updates
Company Guidance
Management's guidance emphasized prioritizing leverage reduction and selective M&A while pausing buybacks until roughly Oct. 1, with an explicit push to reduce debt by about $24–25M in the near term (they reported ~$16M paid in the last six months, $8.6M paid this quarter, plan another ~$8M this quarter and expect a ~ $1M property-sale inflow in September), aiming to bring debt-to-trailing‑12‑month adjusted EBITDA down from 4.3x (3.7x excluding a Q4 legal accrual); other metrics called out include cash of $26.4M, weighted‑average interest rate of 7.05%, total occupancy cost of 8.3%, line of credit to be reduced to ~$100k, monthly $1M payments to Adam with ~$14–15M remaining (~14–15 months), free cash flow margin of 14%, adjusted EBITDA margin of 22% (adjusted EBITDA $16.9M), and a plan to pursue accretive acquisitions over the next 3–6 months while resuming opportunistic buybacks once leverage targets are met.

RCI Hospitality Holdings Financial Statement Overview

Summary
Mixed fundamentals. Income statement is weak (net income turned negative and margins compressed versus prior years), but the balance sheet improved meaningfully with sharply lower debt and solid equity. Cash flow remains a key support with strong operating cash flow and free cash flow, though coverage is not highly cushioned.
Income Statement
44
Neutral
Balance Sheet
78
Positive
Cash Flow
74
Positive
BreakdownTTMDec 2025Sep 2024Sep 2023Sep 2022Sep 2021
Income Statement
Total Revenue284.42M279.43M295.60M293.79M267.62M195.26M
Gross Profit160.84M159.13M170.44M175.29M163.16M114.58M
EBITDA33.91M46.88M34.68M67.02M84.47M52.37M
Net Income-4.21M10.81M3.01M29.25M46.04M30.34M
Balance Sheet
Total Assets569.66M596.93M584.36M610.88M530.74M364.62M
Cash, Cash Equivalents and Short-Term Investments26.40M33.71M32.35M21.02M35.98M35.69M
Total Debt268.26M266.42M272.25M277.90M241.26M151.10M
Total Liabilities332.30M336.06M321.25M329.56M288.98M185.40M
Stockholders Equity234.75M261.10M263.36M281.58M241.27M179.82M
Cash Flow
Free Cash Flow34.75M34.89M31.28M18.75M40.51M28.48M
Operating Cash Flow42.71M49.42M55.88M59.13M64.51M41.99M
Investing Cash Flow-5.54M-24.04M-21.02M-64.82M-67.80M-6.81M
Financing Cash Flow-40.36M-24.02M-23.54M-9.26M3.58M-15.10M

RCI Hospitality Holdings Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price29.68
Price Trends
50DMA
27.84
Positive
100DMA
26.69
Positive
200DMA
25.22
Positive
Market Momentum
MACD
0.31
Positive
RSI
47.06
Neutral
STOCH
27.07
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RICK, the sentiment is Neutral. The current price of 29.68 is below the 20-day moving average (MA) of 29.89, above the 50-day MA of 27.84, and above the 200-day MA of 25.22, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 47.06 is Neutral, neither overbought nor oversold. The STOCH value of 27.07 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RICK.

RCI Hospitality Holdings Risk Analysis

RCI Hospitality Holdings disclosed 1 risk factors in its most recent earnings report. RCI Hospitality Holdings reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

RCI Hospitality Holdings Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
$82.21M12.899.84%1.30%6.14%53.60%
62
Neutral
$222.00M-69.59-1.76%1.05%0.95%-122.21%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
$1.30B31.1510.97%1.95%3.54%56.84%
53
Neutral
$1.18B43.445.89%1.96%-4.92%-54.90%
48
Neutral
$51.34M-0.42-69.17%-4.06%-154.36%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
RICK
RCI Hospitality Holdings
28.53
-4.96
-14.81%
BJRI
BJ's Restaurants
60.78
29.53
94.48%
CBRL
Cracker Barrel
51.15
3.26
6.80%
BDL
Flanigan's Enterprises
46.00
18.95
70.06%
STKS
The ONE Group Hospitality
1.62
-1.04
-39.10%

RCI Hospitality Holdings Corporate Events

Executive/Board ChangesShareholder Meetings
RCI Hospitality Shareholders Approve Directors and Governance Matters
Positive
Aug 20, 2026
On August 20, 2026, RCI Hospitality Holdings held its Annual Meeting of Stockholders at its Houston corporate offices, where shareholders voted on board composition, auditor ratification, and executive pay. Six directors, including CEO Eric S. Lan...
Financial DisclosuresRegulatory Filings and Compliance
RCI Hospitality Regains Nasdaq Compliance After Filings Update
Positive
Jun 1, 2026
RCI Hospitality Holdings operates in the hospitality and entertainment sector, but the specific details of its primary businesses were not described in the announcement.On May 29, 2026, RCI Hospitality Holdings reported that Nasdaq determined the ...
Delistings and Listing ChangesRegulatory Filings and Compliance
RCI Hospitality Faces Nasdaq Noncompliance Over Delayed 10-Q
Negative
May 22, 2026
On May 20, 2026, RCI Hospitality Holdings, Inc. received an anticipated notice from Nasdaq that it was not in compliance with Listing Rule 5250(c)(1) because it had not filed its Form 10-Q for the quarter ended March 31, 2026, though the letter ha...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 21, 2026