RCI Hospitality Holdings (RICK) AI Stock Analysis

• Market Cap: $217.23M
• Dividend Yield: 1.12%
• Average Volume (3M): 133.52K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.97
• Revenue Growth: -5.34%
• EPS Growth: 256.61%
• Country: US
• Employees: 3,613
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.46
• Shares Outstanding: 8,720,461
• 10 Day Avg. Volume: 83,563
• 30 Day Avg. Volume: 133,516
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.66
• Enterprise Value/Revenue: 2.05
• Enterprise Value/Gross Profit: 2.59
• Enterprise Value/Ebitda: 11.37
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 62 Neutral
• Price Target: $28.00 ▲(2.60% Upside)

RCI Hospitality Holdings shows strong operational efficiency and cash flow management, with a reasonable valuation. However, the stock is facing bearish technical indicators and challenges in revenue growth, which weigh on the overall score. The company's strategic initiatives and focus on profitability provide some optimism for future performance.

Positive Factors

Strong Cash Flow Management

Effective cash flow management ensures RCI can fund operations, acquisitions, and shareholder returns, supporting long-term financial health.

Improved Leverage

Reduced leverage decreases financial risk, enhancing RCI's ability to invest in growth opportunities and withstand economic fluctuations.

Strategic Acquisitions

Strategic acquisitions expand RCI's market presence and revenue base, aligning with long-term growth objectives in the nightclub sector.

Negative Factors

Revenue Decline

Declining revenues indicate potential challenges in market demand or operational efficiency, which could impact long-term growth prospects.

Challenges in Bombshells Segment

Persistent challenges in the Bombshells segment highlight operational inefficiencies, potentially affecting overall profitability and growth.

High Insurance Reserves

High insurance reserves increase noncash expenses, potentially straining financial resources and affecting profitability over the long term.

RCI Hospitality Holdings Business Overview & Revenue Model

Company Description

RCI Hospitality Holdings, Inc. (RICK) is a diversified company primarily operating in the hospitality and entertainment sectors. The company owns and operates a chain of adult-themed nightclubs and restaurants, primarily under the brand names 'Rick's Cabaret,' 'Club Onyx,' and 'XTC Cabaret.' RCI also engages in the acquisition and development of hospitality-related properties, expanding its footprint in the adult entertainment industry and providing a unique blend of dining and entertainment experiences for its customers.

How the Company Makes Money

RCI Hospitality Holdings generates revenue primarily through the operation of its nightclubs and restaurants, which include admissions, food and beverage sales, and private events. The company also earns income from the sale of merchandise and through partnerships with various entertainment and hospitality vendors. Significant revenue streams include cover charges at their venues, drink sales, and special event hosting, which contribute to a robust earnings model. Additionally, RCI's investment in the acquisition of new locations and properties enhances its market presence and revenue potential, positioning the company for growth in the competitive adult entertainment sector.

RCI Hospitality Holdings Financial Statement Overview

Summary

RCI Hospitality Holdings demonstrates strong operational efficiency and cash flow management, with significant improvements in leverage. However, challenges in revenue growth and net profitability remain areas for improvement.

Income Statement

RCI Hospitality Holdings shows a strong gross profit margin of 86.8% in TTM, indicating efficient cost management. However, the net profit margin is relatively low at 5.9%, reflecting challenges in converting revenue into profit. Revenue growth has been negative recently, suggesting potential market or operational challenges. The EBIT and EBITDA margins are healthy, indicating good operational efficiency.

Balance Sheet

The company has significantly improved its debt-to-equity ratio to 0.19 in TTM, showcasing reduced leverage and financial risk. However, the return on equity is modest at 6.2%, indicating limited profitability from shareholder investments. The equity ratio of 45.1% suggests a balanced capital structure.

Cash Flow

RCI Hospitality Holdings demonstrates strong cash flow management with a free cash flow growth rate of 24.6% in TTM. The operating cash flow to net income ratio is slightly above 1, indicating good cash generation relative to net income. The free cash flow to net income ratio is also strong, suggesting efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	281.74M	295.60M	293.79M	267.62M	195.26M	132.33M
Gross Profit	223.59M	254.62M	175.29M	163.16M	114.58M	73.82M
EBITDA	50.87M	34.68M	67.02M	84.59M	60.15M	22.13M
Net Income	16.56M	3.01M	29.25M	46.04M	30.34M	-6.31M
Balance Sheet
Total Assets	597.41M	584.36M	610.88M	530.74M	364.62M	360.93M
Cash, Cash Equivalents and Short-Term Investments	29.35M	32.35M	21.02M	35.98M	35.69M	15.61M
Total Debt	272.68M	272.25M	277.90M	241.26M	151.10M	168.50M
Total Liabilities	328.11M	321.25M	329.56M	288.98M	185.40M	208.63M
Stockholders Equity	269.55M	263.36M	281.58M	241.27M	179.82M	152.72M
Cash Flow
Free Cash Flow	42.27M	31.28M	18.75M	40.51M	28.48M	9.90M
Operating Cash Flow	51.34M	55.88M	59.13M	64.51M	41.99M	15.63M
Investing Cash Flow	-26.01M	-21.02M	-64.82M	-67.80M	-6.81M	-994.00K
Financing Cash Flow	-30.67M	-23.54M	-9.26M	3.58M	-15.10M	-13.13M

RCI Hospitality Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 27.29
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RICK, the sentiment is Negative. The current price of 27.29 is above the 20-day moving average (MA) of 27.25, below the 50-day MA of 30.61, and below the 200-day MA of 39.83, indicating a bearish trend. The MACD of -1.54 indicates Positive momentum. The RSI at 34.61 is Neutral, neither overbought nor oversold. The STOCH value of 11.60 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RICK.

RCI Hospitality Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BDL	―	$58.83M	13.61	6.88%	1.74%	8.83%	41.90%
BJRI	―	$751.34M	28.56	7.12%	―	4.07%	-1.24%
RICK	―	$217.23M	13.36	6.12%	1.12%	-5.34%	256.61%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CBRL	―	$750.46M	16.32	10.29%	2.97%	0.37%	12.99%
TWNP	―	$222.88M	―	―	―	6.56%	-83.27%
STKS	―	$70.27M	-1.52	-7.81%	―	96.64%	-292.65%

RCI Hospitality Holdings Corporate Events

RCI Hospitality Raises $3.25M Through Debt Modification

On October 1, 2025, RCI Hospitality Holdings, Inc. engaged in debt modification transactions with existing and new investors, involving the issuance of new 12% unsecured promissory notes. The company successfully raised a total of $3,250,000 through these transactions, which included extending maturity dates and increasing principal amounts for existing investors, as well as issuing new notes to three new investors. These financial maneuvers are aimed at strengthening RCI’s financial position, with the new notes set to mature on October 1, 2028, potentially impacting stakeholder confidence and the company’s market positioning.

The most recent analyst rating on (RICK) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on RCI Hospitality Holdings stock, see the RICK Stock Forecast page.

RCI Hospitality Indicted on Conspiracy and Fraud Charges

On September 16, 2025, RCI Hospitality Holdings, Inc., along with its CEO, CFO, and several subsidiaries, was indicted by the New York Supreme Court on charges including conspiracy, bribery, and tax fraud. The allegations stem from a previous investigation by the New York Attorney General, accusing the company of providing benefits to a tax auditor in exchange for reduced sales tax liabilities. RCI and the individuals involved deny the charges and intend to defend themselves, emphasizing that the allegations are unproven and that they are presumed innocent until proven guilty. Despite the indictment, all three New York City clubs remain operational.

The most recent analyst rating on (RICK) stock is a Hold with a $30.00 price target. To see the full list of analyst forecasts on RCI Hospitality Holdings stock, see the RICK Stock Forecast page.

RCI Hospitality Earnings Call: Mixed Sentiments and Strategic Moves

The recent earnings call for RCI Hospitality presented a mixed sentiment, highlighting both positive strides and ongoing challenges. While the company showcased improvements in profitability and strategic acquisitions, it faced hurdles in revenue generation and operational segments, particularly with Bombshells. Efforts to manage costs and expand nightclub operations were promising, yet declines in revenue and non-GAAP EPS, coupled with high insurance reserves, cast a shadow over the outlook.

RCI Hospitality Holds Successful Annual Stockholders Meeting

On August 18, 2025, RCI Hospitality Holdings held its Annual Meeting of Stockholders in Houston, Texas, to elect six directors, ratify the selection of CBIZ CPAs P.C. as the independent registered public accounting firm for the fiscal year ending September 30, 2025, and approve a non-binding advisory resolution on executive compensation. All director nominees were elected, the accounting firm selection was ratified, and the executive compensation resolution was approved, reflecting strong support from the stockholders.

The most recent analyst rating on (RICK) stock is a Buy with a $98.00 price target. To see the full list of analyst forecasts on RCI Hospitality Holdings stock, see the RICK Stock Forecast page.

RCI Hospitality Reports Mixed Q3 2025 Results

RCI Hospitality Holdings, Inc. is a leading company in the adult nightclubs and sports bars-restaurants sector in the United States, operating over 60 locations through its subsidiaries.