RCI Hospitality Reports Q2 2025 Earnings Results

RCI Hospitality ( (RICK) ) has released its Q2 earnings. Here is a breakdown of the information RCI Hospitality presented to its investors.

RCI Hospitality Holdings, Inc. is a leading operator in the adult nightclubs and sports bars-restaurants sector, with over 60 locations across the United States. The company is known for its diverse portfolio of entertainment venues and its strategic approach to growth and capital allocation.

In its fiscal 2025 second-quarter earnings report, RCI Hospitality Holdings, Inc. announced a decrease in total revenues to $65.9 million compared to $72.3 million in the same period last year. Despite the revenue decline, the company reported an increase in net income attributable to common stockholders, reaching $3.2 million, up from $0.8 million in the previous year.

Key financial highlights included a decline in the Nightclubs segment revenues by 3.1% and a significant 35.6% drop in the Bombshells segment revenues. The company attributed these declines to severe weather conditions and the divestiture of underperforming locations. However, profitability was supported by lower impairments and strategic acquisitions, such as the purchase of Flight Club in Detroit.

RCI Hospitality continues to implement its ‘Back to Basics’ 5-Year Capital Allocation Plan, focusing on acquiring new clubs, completing projects, and repurchasing shares. The company also opened new locations, including a Bombshells in Denver and a rebranded Chicas Locas in El Paso, indicating a strategic push towards expanding and optimizing its venue portfolio.

Looking ahead, RCI Hospitality remains committed to its growth strategy, despite the challenging market conditions. The management’s focus on strategic acquisitions and operational efficiency is expected to drive future performance, as the company navigates the evolving landscape of the entertainment and hospitality industry.