RCI Hospitality (RICK)
NASDAQ:RICK
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RCI Hospitality Holdings
(NASDAQ:RICK)
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Rating:61Neutral
Price Target:
$27.00
▲(9.62% Upside)
Action:Reiterated
Date:06/02/26
The score is driven primarily by strong free-cash-flow generation and improved leverage, which support financial flexibility, but is held back by a deterioration in profitability (TTM net loss and margin compression) and earnings-call risks tied to the legal reserve/uncertainty and sharply lower adjusted EBITDA. Technicals are neutral-to-slightly constructive, while valuation is constrained by negative earnings and only a modest dividend yield.
Positive Factors
Free Cash Flow Generation
Consistent, sizable free cash flow despite a GAAP loss indicates the business generates cash from operations and working-capital dynamics. This durable cash generation supports reinvestment, acquisitions, buybacks, and dividends over the next several years without reliance on external financing.
Negative Factors
Profitability Deterioration
A swing to a TTM net loss and meaningful margin compression reduces returns on equity and signals operating pressure. If elevated operating costs or mix issues persist, this undermines reinvestment capacity and could erode equity and cash buffers over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Generation
Consistent, sizable free cash flow despite a GAAP loss indicates the business generates cash from operations and working-capital dynamics. This durable cash generation supports reinvestment, acquisitions, buybacks, and dividends over the next several years without reliance on external financing.
Read all positive factors
RCI Hospitality Holdings (RICK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$209.00M
Dividend Yield1.21%
Average Volume (3M)49.77K
Price to Earnings (P/E)―
Beta (1Y)0.96
Revenue Growth-1.80%
EPS Growth-193.24%
CountryUS
Employees3,613
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)-0.78
Shares Outstanding7,644,500
10 Day Avg. Volume52,554
30 Day Avg. Volume49,765
Financial Highlights & Ratios
PEG Ratio0.09
Price to Book (P/B)1.03
Price to Sales (P/S)0.96
P/FCF Ratio7.71
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue0.81
Enterprise Value/Gross Profit1.48
Enterprise Value/Ebitda7.78
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)6.11
Revenue Forecast (FY)$326.89M
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 primarily generates revenue by operating company-owned venues, earning money from a mix of on-premise sales and venue-based fees. In its nightclub operations, key revenue streams typically include (1) beverage sales (alcoh...
RCI Hospitality Holdings Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: operationally there are positive signs (stable consolidated revenue, Nightclub service revenue growth of 6.7%, adjusted EBITDA stabilization at $15.7M, pilot success at Bombshells Houston, active share repurchases and a clear 5‑year plan). However, reported results were materially impacted by nonoperating charges and impairments (including a $9.9M charge), lower operating cash flow and free cash flow (FCF down ~44.6% YoY), Bombshells operating losses, margin compression in Nightclubs, increased debt (+$20.6M) and legal uncertainty. The positives show progress on execution and cash generation, but the one-time and ongoing financial pressures balance the outlook.Positive Updates
Revenue Largely Stable
Total revenues of $70.8M versus $71.5M a year ago (down $0.7M, essentially flat year-over-year).
Negative Updates
Significant Pretax and GAAP Earnings Impact
Pretax income decreased by $14M; GAAP loss per share was $0.57 versus GAAP earnings of $1.01 a year ago, driven by nonoperating charges and impairments.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Largely Stable
Total revenues of $70.8M versus $71.5M a year ago (down $0.7M, essentially flat year-over-year).
Read all positive updates
Company Guidance
RCI’s guidance centers on a 5‑year “Back to Basics” capital allocation plan that directs ~40% of free cash flow to club acquisitions and ~60% to debt reduction/dividends, targets 10–15% annual free cash flow per‑share growth and >$250M of free cash flow over five years, and sets fiscal ’29 targets of $400M revenue, $75M free cash flow and 7.5M shares outstanding (implying roughly $10 free cash flow per share vs fiscal ’24). The company aims to add about $6M of adjusted EBITDA per year through acquisitions priced at 3–5x adjusted EBITDA (real estate at fair market value) with a 100% cash‑on‑cash return in 3–5 years, while continuing buybacks (Q1 buybacks ~$9.8M, YTD >1M shares, repurchases program up $20M, shares outstanding down 14.6% since plan start) and modest dividend raises. Near term they plan to sell ~$31.7M of small clubs/real estate with ~$16.2M associated debt (net proceeds after debt/fees estimated to leave ~$5–6M and eliminate carrying costs), improve margins (Bombshells target 15% operating margin), and strengthen leverage (current debt up $20.6M including $22M ADW seller financing; weighted avg interest 7.16% vs 6.65% LY; debt/TTM adjusted EBITDA 4.86x or 4.16x excluding the Q4 legal accrual) while driving adjusted EBITDA (~$15.7M, 22% of revenues) and free cash flow (Q1 $6.7M, 9% of revenues).RCI Hospitality Holdings Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
72
Positive
Cash Flow
77
Positive
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 281.63M | 279.43M | 295.60M | 293.79M | 267.62M | 195.26M |
| Gross Profit | 155.35M | 159.13M | 170.44M | 175.29M | 163.16M | 114.58M |
| EBITDA | 29.51M | 46.88M | 34.68M | 67.02M | 84.47M | 52.37M |
| Net Income | -6.50M | 10.81M | 3.01M | 29.25M | 46.04M | 30.34M |
Balance Sheet | ||||||
| Total Assets | 574.39M | 596.93M | 584.36M | 610.88M | 530.74M | 364.62M |
| Cash, Cash Equivalents and Short-Term Investments | 26.89M | 33.71M | 32.35M | 21.02M | 35.98M | 35.69M |
| Total Debt | 277.73M | 266.42M | 272.25M | 277.90M | 241.26M | 151.10M |
| Total Liabilities | 341.86M | 336.06M | 321.25M | 329.56M | 288.98M | 185.40M |
| Stockholders Equity | 230.05M | 261.10M | 263.36M | 281.58M | 241.27M | 179.82M |
Cash Flow | ||||||
| Free Cash Flow | 35.11M | 34.89M | 31.28M | 18.75M | 40.51M | 28.48M |
| Operating Cash Flow | 45.22M | 49.42M | 55.88M | 59.13M | 64.51M | 41.99M |
| Investing Cash Flow | -14.05M | -24.04M | -21.02M | -64.82M | -67.80M | -6.81M |
| Financing Cash Flow | -36.95M | -24.02M | -23.54M | -9.26M | 3.58M | -15.10M |
RCI Hospitality Holdings Technical Analysis
Positive
24.63
Price Trends
24.94
Positive
24.03
Positive
25.53
Positive
Market Momentum
0.42
Negative
66.63
Neutral
77.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RICK, the sentiment is Positive. The current price of 24.63 is below the 20-day moving average (MA) of 24.92, below the 50-day MA of 24.94, and below the 200-day MA of 25.53, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 66.63 is Neutral, neither overbought nor oversold. The STOCH value of 77.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.11B | 25.10 | 11.97% | ― | 3.02% | 110.25% | |
62 Neutral | $65.92M | 10.98 | 9.04% | 1.89% | 5.74% | 47.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $209.00M | -32.54 | -2.62% | 1.21% | -1.80% | -193.24% | |
51 Neutral | $1.04B | 39.79 | -0.90% | 3.54% | -4.92% | -54.90% | |
48 Neutral | $58.08M | -0.64 | -65.14% | ― | 0.99% | -217.64% |
* Consumer Cyclical Sector Average
RICK
RCI Hospitality Holdings
27.34
-12.76
-31.82%
BJRI
BJ's Restaurants
52.62
7.41
16.39%
CBRL
Cracker Barrel
46.69
-8.83
-15.90%
BDL
Flanigan's Enterprises
35.47
5.33
17.67%
STKS
The ONE Group Hospitality
1.84
-1.89
-50.67%
RCI Hospitality Holdings Corporate Events
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...
Delistings and Listing ChangesRegulatory Filings and Compliance
RCI Hospitality Regains Nasdaq Compliance After SEC Filings
Positive
May 11, 2026
RCI Hospitality Holdings disclosed that on January 30, 2026, and February 18, 2026, Nasdaq’s Listing Qualifications Department notified the company it was out of compliance with Listing Rule 5250(c)(1) because it had not met periodic filing ...
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.