RCI Hospitality (RICK)
NASDAQ:RICK
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RCI Hospitality Holdings
(NASDAQ:RICK)
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Rating:62Neutral
Price Target:
$24.00
▼(-2.56% Downside)
Action:ReiteratedDate:04/01/26
The score is supported primarily by resilient cash flow and a meaningfully de-risked balance sheet. It is held back by recent revenue/profitability deterioration and mixed earnings-call takeaways (legal reserve-driven earnings pressure), alongside negative corporate events related to delayed filings; technicals are neutral-to-weak and valuation is only moderate.
Positive Factors
Resilient cash generation
Consistent positive operating cash flow and a materially improved free cash flow profile (quarterly FCF ≈ $13.1M; FCF margin ~18%) provide durable liquidity. This supports organic investments, dividends, and M&A funding capacity and cushions the business against cyclical revenue swings.
Negative Factors
Revenue and profitability deterioration
Recent declines in revenue and net profitability indicate increased operational volatility. Falling sales, segment weakness (notably Bombshells), and thinner net margins reduce earnings predictability and make long‑term FCF targets harder to achieve absent sustained top‑line recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient cash generation
Consistent positive operating cash flow and a materially improved free cash flow profile (quarterly FCF ≈ $13.1M; FCF margin ~18%) provide durable liquidity. This supports organic investments, dividends, and M&A funding capacity and cushions the business against cyclical revenue swings.
Read all positive factors
RCI Hospitality Holdings (RICK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$185.35M
Dividend Yield1.21%
Average Volume (3M)84.41K
Price to Earnings (P/E)24.9
Beta (1Y)0.81
Revenue Growth-5.34%
EPS Growth256.61%
CountryUS
Employees3,613
SectorConsumer Cyclical
Sector Strength84
IndustryRestaurants
Share Statistics
EPS (TTM)-0.63
Shares Outstanding7,710,000
10 Day Avg. Volume119,400
30 Day Avg. Volume84,414
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 Cap2.36
Enterprise Value/Revenue1.57
Enterprise Value/Gross Profit3.04
Enterprise Value/Ebitda8.54
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., through its subsidiaries, engages in the hospitality and related businesses in the United States. The company operates through Nightclubs, Bombshells, and Other segments. It owns and/or operates upscale adult nightc...
How the Company Makes Money
RCI Hospitality Holdings primarily generates revenue by operating company-owned venues, earning money from a mix of on-premise sales and venue-based fees. In its nightclub operations, key revenue streams typically include (1) beverage sales (alcoh...
RCI Hospitality Holdings Earnings Call Summary
Earnings Call Date:Mar 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture. Operationally the core Nightclubs business showed resilience (slightly higher revenues and improved segment margins), free cash flow remained stable and the company strengthened its balance sheet modestly through cash and debt reduction while aggressively reducing share count. However, results were materially impacted by a large legal reserve and related spike in corporate expenses, producing a GAAP net loss, a sharp decline in adjusted EBITDA, and notable weakness in the Bombshells segment (fewer locations and down same-store sales). Management emphasized a clear capital allocation plan and multiple portfolio optimization actions, but the legal uncertainty and near-term profitability compression are prominent concerns. Balancing the material negatives against the execution on cash generation, buybacks and strategic actions, the overall impression is mixed with near-term headwinds but a defined plan to improve returns longer term.Positive Updates
Free Cash Flow Stability and Strong Cash Position
Free cash flow remained near $13.1 million for the quarter (virtually level year-over-year) with a free cash flow margin of 18%. Cash and cash equivalents ended the quarter at $33.7 million, up $4.4 million from June 30.
Negative Updates
Total Revenue Decline
Total revenues were $70.9 million compared to $73.2 million a year ago, a decline of $2.3 million or approximately -3.1% year-over-year.
Read all updates
Q4-2025 Updates
Positive
Negative
Free Cash Flow Stability and Strong Cash Position
Free cash flow remained near $13.1 million for the quarter (virtually level year-over-year) with a free cash flow margin of 18%. Cash and cash equivalents ended the quarter at $33.7 million, up $4.4 million from June 30.
Read all positive updates
Company Guidance
The company reiterated its Back‑to‑Basics 5‑year capital allocation and near‑term guidance: allocate ~40% of free cash flow to club acquisitions and ~60% to buybacks, debt reduction and dividends, target 10–15% annual free‑cash‑flow‑per‑share growth, and add ~$6 million of adjusted EBITDA per year (acquisition targets ~3–5x adjusted EBITDA, FMV for real estate, 100% cash‑on‑cash return in 3–5 years). Over five years they expect to generate >$250 million of free cash flow and by fiscal 2029 target $400 million revenue, $75 million free cash flow and ~7.5 million shares outstanding (roughly doubling FCF per share to ~$10 vs FY24); near term they are aggressively repurchasing stock (share count ~7.7M as of Mar 13, ~14% below 9/30/24; ~153k shares repurchased since FY25 year‑end excl. 820k in the ADW transaction). Current operating/financial metrics called out include quarterly free cash flow ≈ $13.1M (FCF margin 18%), adjusted EBITDA margin ~10% of revenue (≈23% excluding the legal accrual), cash $33.7M (up $4.4M), debt down $5.5M from June 30, weighted average interest ≈ 6.64%, debt/TTM adjusted EBITDA 4.48x (≈3.83x excl. legal accrual), and a Q1 FY26 cash inflow to include a $22M 2‑year seller note; Bombshells targets a 15% operating margin and a return to same‑store sales.RCI Hospitality Holdings Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
74
Positive
Cash Flow
81
Very Positive
| Breakdown | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 279.43M | 295.60M | 293.79M | 267.62M | 195.26M |
| Gross Profit | 144.05M | 170.44M | 175.29M | 163.16M | 114.58M |
| EBITDA | 51.29M | 34.68M | 67.02M | 84.47M | 52.37M |
| Net Income | 10.81M | 3.01M | 29.25M | 46.04M | 30.34M |
Balance Sheet | |||||
| Total Assets | 596.93M | 584.36M | 610.88M | 530.74M | 364.62M |
| Cash, Cash Equivalents and Short-Term Investments | 33.71M | 32.35M | 21.02M | 35.98M | 35.69M |
| Total Debt | 266.42M | 272.25M | 277.90M | 241.26M | 151.10M |
| Total Liabilities | 336.06M | 321.25M | 329.56M | 288.98M | 185.40M |
| Stockholders Equity | 261.10M | 263.36M | 281.58M | 241.27M | 179.82M |
Cash Flow | |||||
| Free Cash Flow | 34.89M | 31.28M | 18.75M | 40.51M | 28.48M |
| Operating Cash Flow | 49.42M | 55.88M | 59.13M | 64.51M | 41.99M |
| Investing Cash Flow | -24.04M | -21.02M | -64.82M | -67.80M | -6.81M |
| Financing Cash Flow | -24.02M | -23.54M | -9.26M | 3.58M | -15.10M |
RCI Hospitality Holdings Technical Analysis
Positive
24.63
Price Trends
23.05
Positive
23.76
Positive
28.56
Negative
Market Momentum
0.08
Negative
56.33
Neutral
34.85
Neutral
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 24.63 is above the 20-day moving average (MA) of 22.50, above the 50-day MA of 23.05, and below the 200-day MA of 28.56, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 56.33 is Neutral, neither overbought nor oversold. The STOCH value of 34.85 is Neutral, 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 1 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | $59.94M | 17.07 | 8.92% | 1.89% | 8.99% | 49.97% | |
64 Neutral | $781.96M | 17.08 | 13.19% | ― | 3.85% | 7.57% | |
62 Neutral | $185.35M | 24.90 | 4.05% | 1.21% | -5.34% | 256.61% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
47 Neutral | $54.05M | -0.60 | -51.90% | ― | 51.57% | -367.14% | |
45 Neutral | $662.71M | 131.25 | -0.90% | 3.54% | -1.61% | -58.09% |
* Consumer Cyclical Sector Average
RICK
RCI Hospitality Holdings
23.53
-12.35
-34.43%
BJRI
BJ's Restaurants
36.96
7.14
23.94%
CBRL
Cracker Barrel
28.42
-5.88
-17.15%
BDL
Flanigan's Enterprises
32.25
8.46
35.54%
STKS
The ONE Group Hospitality
1.92
-0.79
-29.15%
RCI Hospitality Holdings Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
RCI Hospitality Faces Ongoing Nasdaq Noncompliance Over Filings
Negative
Feb 20, 2026
On February 18, 2026, RCI Hospitality Holdings received a notice from Nasdaq that it remains noncompliant with listing rules because it has not filed its Form 10-Q for the quarter ended December 31, 2025, and is still delinquent on its Form 10-K f...
Delistings and Listing ChangesRegulatory Filings and Compliance
RCI Hospitality Faces Nasdaq Noncompliance Over Delayed 10-K
Negative
Feb 2, 2026
On January 30, 2026, RCI Hospitality Holdings, Inc. received an anticipated notice from Nasdaq that it was not in compliance with the exchange’s requirement for timely SEC filings because the company had not yet filed its Form 10-K for the f...
Business Operations and StrategyExecutive/Board Changes
RCI Hospitality advances leadership transition with new chairman
Neutral
Jan 30, 2026
On January 29, 2026, RCI Hospitality Holdings, Inc. announced that longtime board member Eric Langan stepped down as Chairman of the Board, while remaining on the board. At the same time, the board appointed Travis Reese as the new Chairman, a mov...
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.