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RCI Hospitality Holdings
(NASDAQ:RICK)
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Rating:62Neutral
Price Target:
$29.00
▼(-2.29% Downside)
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
Strong Cash Generation
Meaningful operating and free cash flow show that the venue portfolio can generate cash even while reported earnings are weak. This supports debt repayment, selective investment, and ongoing operations, although the company’s coverage remains less than fully cushioned.
Negative Factors
Deteriorated Profitability
The shift from strong profitability in 2022–2023 to a TTM net loss shows that revenue is not currently translating into consistent shareholder returns. Persistently thin operating profitability would constrain reinvestment, weaken financial resilience, and increase earnings volatility.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong Cash Generation
Meaningful operating and free cash flow show that the venue portfolio can generate cash even while reported earnings are weak. This supports debt repayment, selective investment, and ongoing operations, although the company’s coverage remains less than fully cushioned.
Read all positive factors
RCI Hospitality Holdings (RICK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$210.07M
Dividend Yield1.15%
Average Volume (3M)53.29K
Price to Earnings (P/E)―
Beta (1Y)1.02
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. Volume44,850
30 Day Avg. Volume53,293
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 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-prem...
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 | 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
Negative
29.68
Price Trends
28.21
Negative
27.02
Negative
25.39
Positive
Market Momentum
-0.42
Positive
38.58
Neutral
16.40
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 29.68 is above the 20-day moving average (MA) of 28.16, above the 50-day MA of 28.21, and above the 200-day MA of 25.39, indicating a neutral trend. The MACD of -0.42 indicates Positive momentum. The RSI at 38.58 is Neutral, neither overbought nor oversold. The STOCH value of 16.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 | $85.39M | 13.44 | 9.84% | 1.25% | 6.14% | 53.60% | |
62 Neutral | $210.07M | -65.85 | -1.76% | 1.15% | 0.95% | -122.21% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | $1.27B | 29.36 | 10.97% | 1.95% | 3.54% | 56.84% | |
52 Neutral | $1.17B | 36.86 | 7.05% | 1.90% | -4.74% | -32.14% | |
47 Neutral | $52.92M | -0.42 | -69.17% | ― | -4.06% | -154.36% |
* Consumer Cyclical Sector Average
RICK
RCI Hospitality Holdings
26.98
-3.30
-10.91%
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CBRL
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BDL
Flanigan's Enterprises
47.23
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59.20%
STKS
The ONE Group Hospitality
1.54
-1.06
-40.77%
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...
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.