RCI Hospitality Q4 Earnings Call Highlights

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MarketBeat

Fri, March 20, 2026 astatine 9:06 AM CDT 8 min read

RCI Hospitality logo

RCI Hospitality logo
  • RCI reported Q4 gross of $79.0 million but a nett nonaccomplishment attributable to communal shareholders of $5.5 million, with adjusted EBITDA down to $7.4 million arsenic firm expenses roseate mostly from a $9 million ineligible reserve and different insurance-related reserves.

  • Operationally, nightclubs were unchangeable with gross of $60.9 million and improved margins, portion Bombshells gross fell to $9.4 million amid less locations and weaker same-store sales; absorption is prioritizing profitability done rebrands/reformats and whitethorn merchantability Bombshells erstwhile marketplace conditions improve.

  • Management’s five-year capital-allocation program targets ~40% of escaped currency travel for acquisitions and ~60% for buybacks/debt/dividends, but the institution is presently directing 100% of escaped currency travel to stock repurchases, having reduced shares outstanding to ~7.7 million; RCI ended the 4th with $33.7 million successful currency and indebtedness down to $5.5 million.

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RCI Hospitality (NASDAQ:RICK) reported fourth-quarter and year-end results alongside the filing of its Form 10-K, with absorption emphasizing advancement connected its “back-to-basics” five-year superior allocation program and continued absorption connected escaped currency travel and portfolio optimization.

Interim President and CEO Travis Reese said fourth-quarter nightclub revenues were “nearly level” contempt “continued economical uncertainty,” portion Bombshells results chiefly reflected the antecedently announced divestiture of 5 underperforming locations. He added that profitability successful the 4th was pressured by a higher non-cash ineligible accrual, accrued income taxes, and little impairments.

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Interim CFO Albert Molina reported full gross of $79.0 million, up from $73.2 million a twelvemonth earlier. Molina said the alteration chiefly reflected 5 less Bombshells-related locations, partially offset by caller nightclub locations.

Corporate expenses roseate to $15.4 million from $7.1 million, which Molina attributed chiefly to establishing a ineligible reserve. Impairments and different charges were $3.7 million versus $10.1 million successful the year-ago period. Income taxation shifted to a $1.0 cardinal expense compared to a $0.8 cardinal benefit a twelvemonth earlier.

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Net income attributable to communal shareholders was a loss of $5.5 million, compared with profit of $244,000 a twelvemonth earlier. The institution reported loss per stock of $0.63 versus EPS of $0.03 successful the prior-year quarter.

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