RCI Hospitality Holdings, Inc. reported a consolidated revenue of $279.4 million for the fiscal year ending September 30, 2025, a decrease of 5.5% from $295.6 million in 2024. The company's net income attributable to common stockholders was $10.8 million, translating to diluted earnings per share of $1.23, a significant increase from $0.33 in the previous year. The Nightclubs segment generated $242.5 million in revenue, a slight decline of 0.6%, while the Bombshells segment saw a more pronounced drop of 29.2%, with revenues falling to $35.8 million from $50.6 million in 2024.
The company experienced a notable shift in its operational performance, with income from operations rising to $30.3 million, a 61% increase compared to the previous year. This improvement was primarily driven by a 20.1% increase in income from the Nightclubs segment, which reported $69.6 million in operational income. However, the Bombshells segment turned around from a loss of $10.8 million in 2024 to a small profit of $177,000 in 2025, indicating a recovery in operational efficiency despite the revenue decline.
Strategically, RCI Hospitality made several acquisitions during the fiscal year, including three clubs for a total acquisition date fair value of $21 million. The company also opened two new Bombshells locations in Denver, Colorado, and Lubbock, Texas, while closing three underperforming locations. As of September 30, 2025, RCI operated 71 establishments across 15 states, with a total employee headcount of 3,444, reflecting a slight increase from the previous year.
The company’s financial outlook remains cautious, as it anticipates challenges related to market conditions and competition in the adult entertainment and restaurant sectors. RCI Hospitality has implemented a five-year "Back-to-Basics" strategy aimed at improving the performance of existing units and enhancing capital allocation priorities. The company aims to achieve total revenues of $400 million and free cash flow of $75 million by fiscal 2029. However, it also faces risks from ongoing legal issues, including an indictment related to alleged tax fraud and bribery, which could impact its financial performance and operational focus in the near term.
About RCI HOSPITALITY HOLDINGS, INC.
RCI Hospitality Holdings, Inc. operates adult nightclubs, restaurants, and a business communications company. Its core segments include Nightclubs and Bombshells, offering entertainment, dining, and alcohol services across multiple states. The company leverages proprietary brands, strategic location choices, and industry expertise to compete in a highly regulated, competitive adult entertainment and hospitality industry, focusing on unit-level performance, brand recognition, and operational efficiency.
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