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RCI Hospitality Holdings
(NASDAQ:RICK)
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Rating:60Neutral
Price Target:
$28.00
▲(7.40% Upside)
Action:Reiterated
Date:08/07/26
The score is driven primarily by mixed financial performance—weak recent profitability despite strong cash flow and a much improved leverage profile. Earnings-call commentary is a notable positive (debt paydown focus and improving adjusted EBITDA/margins), while technical signals are neutral and valuation is pressured by a negative P/E; recent Nasdaq filing-compliance events modestly temper confidence.
Positive Factors
Leverage reduction / stronger balance sheet
A dramatic multiyear debt reduction meaningfully lowers interest burden and refinancing risk, increasing financial flexibility. With equity sizable versus assets, the company can better fund operations, pursue accretive M&A or resume buybacks once leverage targets are met, supporting durable stability.
Negative Factors
Weak reported profitability
Reported net losses and a negative net margin reflect weaker earnings quality despite cash generation. Persistent negative GAAP profitability can limit return metrics, constrain reinvestment capacity, and create volatility in stakeholder returns until operating income sustainably improves.
Read all positive and negative factors
Positive Factors
Negative Factors
Leverage reduction / stronger balance sheet
A dramatic multiyear debt reduction meaningfully lowers interest burden and refinancing risk, increasing financial flexibility. With equity sizable versus assets, the company can better fund operations, pursue accretive M&A or resume buybacks once leverage targets are met, supporting durable stability.
Read all positive factors
RCI Hospitality Holdings (RICK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$214.58M
Dividend Yield1.07%
Average Volume (3M)49.77K
Price to Earnings (P/E)―
Beta (1Y)1.08
Revenue Growth0.95%
EPS Growth-122.21%
CountryUS
Employees3,444
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)-0.41
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
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 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
Positive
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
Income Statement
44
Neutral
Balance Sheet
78
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 284.42M | 279.43M | 295.60M | 293.79M | 267.62M | 195.26M |
| Gross Profit | 178.51M | 159.13M | 170.44M | 175.29M | 163.16M | 114.58M |
| EBITDA | 33.82M | 46.88M | 34.68M | 67.02M | 84.47M | 52.37M |
| Net Income | -4.21M | 10.81M | 3.01M | 29.25M | 46.04M | 30.34M |
Balance Sheet | ||||||
| Total Assets | 569.66M | 596.93M | 584.36M | 610.88M | 530.74M | 364.62M |
| Cash, Cash Equivalents and Short-Term Investments | 26.40M | 33.71M | 32.35M | 21.02M | 35.98M | 35.69M |
| Total Debt | 57.26M | 266.42M | 272.25M | 277.90M | 241.26M | 151.10M |
| Total Liabilities | 332.30M | 336.06M | 321.25M | 329.56M | 288.98M | 185.40M |
| Stockholders Equity | 234.75M | 261.10M | 263.36M | 281.58M | 241.27M | 179.82M |
Cash Flow | ||||||
| Free Cash Flow | 48.24M | 34.89M | 31.28M | 18.75M | 40.51M | 28.48M |
| Operating Cash Flow | 60.41M | 49.42M | 55.88M | 59.13M | 64.51M | 41.99M |
| Investing Cash Flow | -7.77M | -24.04M | -21.02M | -64.82M | -67.80M | -6.81M |
| Financing Cash Flow | -62.64M | -24.02M | -23.54M | -9.26M | 3.58M | -15.10M |
RCI Hospitality Holdings Technical Analysis
Positive
26.07
Price Trends
26.36
Positive
25.30
Positive
24.67
Positive
Market Momentum
>-0.01
Negative
64.94
Neutral
66.23
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 26.07 is below the 20-day moving average (MA) of 26.22, below the 50-day MA of 26.36, and above the 200-day MA of 24.67, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 64.94 is Neutral, neither overbought nor oversold. The STOCH value of 66.23 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | $1.48B | 35.64 | 10.97% | ― | 3.54% | 56.84% | |
66 Neutral | $85.72M | 14.37 | 9.04% | 1.89% | 5.74% | 47.36% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $214.58M | -68.46 | -1.76% | 1.15% | 0.95% | -122.21% | |
53 Neutral | $1.29B | 49.08 | 5.89% | 1.86% | -4.92% | -54.90% | |
46 Neutral | $53.03M | -0.44 | -76.61% | ― | -4.06% | -155.71% |
* Consumer Cyclical Sector Average
RICK
RCI Hospitality Holdings
28.07
-7.77
-21.68%
BJRI
BJ's Restaurants
69.55
35.85
106.38%
CBRL
Cracker Barrel
57.79
2.09
3.75%
BDL
Flanigan's Enterprises
46.12
14.92
47.82%
STKS
The ONE Group Hospitality
1.68
-1.04
-38.24%
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.