RICK · RCI Hospitality Holdings, Inc.

RCI Hospitality Holdings reported a GAAP net loss of $4.7 million for the fiscal first quarter ended December 31, 2025, compared to net income of $9.0 million in the prior-year period. The loss was driven by $10.1 million in net charges, including a $9.9 million premium on stock repurchase and $0.2 million in impairments and other charges. On a non-GAAP basis, EPS was $0.74, down from $0.80, while adjusted EBITDA remained flat at $15.7 million. Total revenues declined slightly to $70.8 million from $71.5 million, with nightclub segment revenues up 0.9% to $62.3 million, supported by $4.9 million from five newly acquired or reopened clubs. Same-store nightclub sales were stable, and higher-margin service revenues increased 6.7%. The Bombshells segment saw revenues fall 12.6% to $8.4 million, with an operating loss of $139,000, impacted by the absence of $1.2 million from divested/closed locations and a $1.3 million gain on sale in the prior year. Corporate expenses decreased to $7.4 million from $8.8 million, primarily due to lower insurance costs. The company continued its aggressive share buyback program, repurchasing over one million shares in FY26 to date, reducing weighted average shares outstanding by 7.0% to 8.30 million. Debt increased to $256.4 million from $235.8 million at September 30, 2025, mainly due to seller-financing from the ADW transaction. Management noted that results were impacted by customer uncertainty during the U.S. government shutdown in October and November.