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RCI Hospitality Holdings (RICK) AI Stock Analysis
RCI Hospitality Holdings
(NASDAQ:RICK)
The overall score of 68 reflects a company with a significantly improved balance sheet and strong cash flow generation, which are its primary strengths. Positive technical momentum and an optimistic earnings call further support the score. However, the score is constrained by weak current profitability, a net loss, and a resulting negative P/E ratio, which present notable risks.
RCI Hospitality Holdings (RICK) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $216.49M
- Dividend Yield
- 1.09%
- Average Volume (3M)
- 48.73K
- Price to Earnings (P/E)
- -69.1
- Beta (1Y)
- 0.98
- Revenue Growth
- 0.95%
- EPS Growth
- -122.21%
- Country
- US
- Employees
- 3,444
- Sector
- Consumer Cyclical
- Sector Strength
- 61
- Industry
- Restaurants
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 "O...
How the Company Makes Money
RCI Hospitality Holdings generates revenue primarily through company-owned and operated venues across two main segments: (1) Nightclubs and (2) Restaurants and sports bars. In its nightclub operations, the company earns money from multiple on-premise...
RCI Hospitality Holdings Earnings Call Summary
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.
Q3-2026 Updates
Positive Updates
Negative 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
Financial performance is mixed. The balance sheet is very strong (Score 85) due to aggressive debt reduction, and cash flow is robust (Score 80). However, the income statement is weak (Score 35) with compressed margins and a net loss. The overall financial health is supported by a strong cash position and low leverage, but profitability concerns weigh on the score.
Income Statement
35NegativeBalance Sheet
85Very PositiveCash Flow
80Positive| 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 | 160.84M | 159.13M | 170.44M | 175.29M | 163.16M | 114.58M |
| EBITDA | 33.91M | 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 | 268.26M | 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 | 34.75M | 34.89M | 31.28M | 18.75M | 40.51M | 28.48M |
| Operating Cash Flow | 42.71M | 49.42M | 55.88M | 59.13M | 64.51M | 41.99M |
| Investing Cash Flow | -5.54M | -24.04M | -21.02M | -64.82M | -67.80M | -6.81M |
| Financing Cash Flow | -40.36M | -24.02M | -23.54M | -9.26M | 3.58M | -15.10M |
RCI Hospitality Holdings Technical Analysis
Price Trends
Market Momentum
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 28.32 is above the 20-day moving average (MA) of 26.70, above the 50-day MA of 27.84, and above the 200-day MA of 25.68, indicating a bullish trend. The MACD of 0.16 indicates Negative momentum. The RSI at 63.19 is Neutral, neither overbought nor oversold. The STOCH value of 93.18 is Negative, 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.
Latest Risks Added
0 New RisksRCI Hospitality Holdings Peers Comparison
Overall Rating
BDL71Outperform- RICK68Neutral
RRGB53Neutral
DIN50Neutral
STKS41Neutral
ARKR38Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| BDL | 71Outperform | $111.46M | 16.80 | 9.84% | 1.00% | 6.14% | 53.60% |
| RICK | 68Neutral | $216.49M | -69.07 | -1.76% | 1.09% | 0.95% | -122.21% |
| Sector * | 61Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
| RRGB | 53Neutral | $172.21M | -5.39 | 29.24% | ― | -3.71% | 50.04% |
| DIN | 50Neutral | $449.53M | 69.63 | -2.46% | 2.14% | 6.44% | -82.92% |
| STKS | 41Neutral | $34.86M | -0.29 | -69.17% | ― | -4.06% | -154.36% |
| ARKR | 38Underperform | $18.07M | -5.69 | -9.79% | ― | -9.48% | 77.31% |
* Consumer Cyclical Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| RICK | RCI Hospitality | 28.32 | 4.60 | 19.38% | |
| ARKR | Ark Restaurants Corp. | 5.01 | -2.09 | -29.44% | |
| DIN | Dine Brands | 35.51 | 11.94 | 50.65% | |
| BDL | Flanigan's Enterprises | 59.97 | 28.98 | 93.55% | |
| RRGB | Red Robin Gourmet Burgers | 9.11 | 4.38 | 92.60% | |
| STKS | The One Group Hospitality | 1.10 | -1.10 | -50.00% |
RCI Hospitality Holdings Corporate Events
RCI Hospitality Shareholders Approve Directors and Governance Matters
PositiveOn 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. Langan...
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 20, 2026