RICKNasdaqRetail-Eating PlacesUS GAAP · USD

RCI Hospitality Holdings, Inc

RCI Hospitality Holdings is a U.S.-based holding company whose subsidiaries operate adult nightclubs, restaurants, and sports bars. The company also owns a business communications operation serving the adult nightclub industry, with corporate headquarters in Houston, Texas.

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Revenue279m USD
+281.6 %y/y
Operating profit (EBIT)30.3m USD
+760.1 %y/y
EBIT margin10.8%
+6.0 ppy/y
Net income10.8m USD
+4,330.7 %y/y
Free cash flow34.9m USD
+11.5 %y/y

Fiscal year 2025 · change from previous year

Development 2020–2025

0100200300m USD2020: 29 m USD2020: EBIT 0.19 m USD20202021: 55 m USD2021: EBIT 3.6 m USD20212022: 71 m USD2022: EBIT 18 m USD20222023: 75 m USD2023: EBIT 5.6 m USD20232024: 73 m USD2024: EBIT 3.5 m USD20242025: 279 m USD2025: EBIT 30 m USD202527930
RevenueOperating profit (EBIT)
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Business

Share of revenue
Nightclubs87 %

Adult entertainment venues that generate revenue from beverages, food, merchandise, and service charges.

Bombshells13 %

Restaurant and sports bar locations offering food, alcoholic beverages, and casual dining entertainment.

Other0 %

Non-core operations, including business communications services and other smaller activities.

Products

Reported · share of revenue
43.7%34.7%14.3%FY2025100 %
  • Alcoholic Beverages43.7 %
  • Services34.7 %
  • Food and Merchandise14.3 %
  • Other Revenues7.3 %

Source: 10-K FY2025, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

The company serves adult nightlife patrons who visit clubs for entertainment, drinks, and related services, as well as restaurant and sports bar guests seeking casual dining and sports viewing. It also serves the adult nightclub industry through its communications business. Demand is driven by local consumer traffic, venue appeal, and market-specific entertainment preferences.

Nightclub patrons

Customers visiting adult entertainment clubs for drinks, entertainment, and service-based spending.

Bombshells restaurant guests

Consumers dining at sports bars and restaurants for food, beverages, and casual entertainment.

Adult nightclub industry clients

Operators that buy business communications services tailored to the nightclub market.

Local event-driven customers

Guests whose spending is influenced by sporting events, seasonality, and local traffic patterns.

Strategy

The company’s strategy combines acquiring or developing venues, opening new locations, and selectively disposing of underperforming units. It also seeks to diversify beyond adult nightclubs with Bombshells restaurants and sports bars, while continuing to pursue club acquisitions that fit its operating model.

Expand through selective acquisitions and new unit developmentMedium term

Adds scale while staying within venue types the company can operate effectively.

Grow Bombshells as a diversification platformMedium term

Restaurant and sports bar units reduce dependence on nightclub licensing constraints.

Allocate capital toward highest-return usesShort term

Management uses free cash flow to compare acquisitions, buybacks, and debt reduction.

Geography

RCI Hospitality is primarily a U.S. business, with corporate offices in Houston, Texas and venue operations across multiple states. Its Bombshells restaurant footprint is concentrated in Texas, with one location in Denver, Colorado, while nightclub operations are spread across markets where licensing and local demand support the model.

Risks

The business depends on discretionary consumer spending, local traffic, and venue-level execution, which makes results sensitive to seasonality and market-specific demand. It also faces licensing, insurance, financing, and acquisition risks because growth depends on obtaining suitable locations, maintaining coverage, and funding transactions on acceptable terms.

Sorted by severity
Seasonal revenue swingsHigh

Nightclub operations historically weaken in April through September and strengthen in October through March.

Exposure: Nightclubs

Licensing and permit constraintsHigh

Some adult nightclub locations require SOB licenses that can be difficult to obtain.

Exposure: Nightclubs and expansion pipeline

Financing availability for acquisitionsHigh

Growth through acquisitions may require debt or stock issuance, and terms may not be favorable.

Exposure: M&A and capital allocation

Insurance and claims volatilityMedium

The company self-insures a significant portion of general liability and liquor losses, increasing estimate risk.

Exposure: Operating liabilities

Consumer demand and event-driven volatilityMedium

Sales can be affected by sporting events and local demand shifts that change year to year.

Exposure: Bombshells and clubs

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Accounting

Judgemental items
Self-insurance liability estimation

The company records reserves for unresolved and incurred-but-not-reported claims, which depend on assumptions about claim development.

Impact: Can change operating expenses and liabilities materially

Seasonality in revenue recognition and comparability

Nightclub results vary materially by quarter, affecting trend analysis and period-to-period comparisons.

Impact: Can distort quarterly revenue and margin interpretation

Same-store sales calculations

Management excludes new units and applies operating-day thresholds, which affects reported comparable sales trends.

Impact: Influences how underlying demand is assessed

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Last updated: 24/09/2026