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Jun 30, 2025
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.
Revenue by Segment
Revenue by Geographic Location
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%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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