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Jun 30
RCI Hospitality Q3 2025 Earnings Report
RCI Hospitality reported Q3 2025 revenue of $71.1M and net income of $4.06M, driven by stable nightclub performance despite economic uncertainty.
Key Takeaways
RCI Hospitality's Q3 2025 results showed total revenue of $71.145M, a 6.6% decrease year-over-year, with nightclubs holding steady and Bombshells impacted by prior divestitures. Operating income reached $8.713M, net income was $4.058M, and adjusted EBITDA came in at $15.339M.
Total revenue declined 6.6% YoY to $71.145M, with nightclubs nearly flat and Bombshells down due to divestitures.
Operating income improved to $8.713M from a $2.536M loss a year ago, aided by reduced impairment charges.
GAAP operating margin was 12.2%, with non-GAAP operating margin at 16.9%.
Free cash flow for the quarter was $13.339M, maintaining strong liquidity with $29.347M in cash.
RCI Hospitality
RCI Hospitality
RCI Hospitality Revenue by Segment
RCI Hospitality Revenue by Geographic Location
Revenue by Segment
Nightclubs Revenue
CapyFin.comBombshells Revenue
CapyFin.comOther Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.com Forward Guidance
Management reiterated its focus on executing the Back to Basics 5-Year Capital Allocation Plan, aiming to optimize nightclub performance and expand selectively, while managing Bombshells post-divestitures.
Positive Outlook
- Nightclubs revenue remained nearly level despite macro headwinds.
- Sequential revenue growth in Bombshells following 2Q25 divestitures.
- Operating income improved significantly due to lower impairment charges.
- Strong liquidity with $29.347M cash at quarter end.
- Share repurchases reduced outstanding shares by 5.2% YoY.
Challenges Ahead
- Same-store sales for nightclubs declined 3.7%.
- Bombshells segment revenue fell 34.5% YoY due to divestitures and SSS decline.
- Corporate expenses increased to $8.7M from $7.2M YoY.
- Service revenue from nightclubs declined 0.3%, alcoholic beverage sales down 3.9%.
- Continued uncertainty from tariffs and tax legislation affecting economic outlook.