RCI Hospitality Reports Strong Q3 2026: EPS $0.83, Revenue $73.9M, Debt Reduced, Buybacks Continue
RICK sits 26% above its 52-week low of $20.76.
Summary
RCI Hospitality reported Q3 2026 earnings with revenue of $73.9M and EPS of $0.83, driven by Bombshells growth and Nightclubs margin improvement. The company continued reducing debt and buying back shares.
Key Events · Earnings and Guidance · RICK
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Q3 Revenue and Earnings Beat
Total revenues rose 4% to $73.9 million, with GAAP EPS of $0.83 versus $0.46 a year ago. Non-GAAP EPS was $0.90, and adjusted EBITDA reached $16.9 million (22.9% margin).
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Bombshells Segment Surges
Bombshells revenue jumped 25.4% to $10.8 million, driven by three new locations and 4.7% same-store sales growth. Operating income improved to $759,000 from $67,000.
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Debt Reduction and Buybacks
Debt declined $8.6 million sequentially to $240.1 million. Share buybacks reduced weighted average shares outstanding by 13.0% to 7.65 million, boosting per-share metrics.
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Nightclubs Margin Improvement
Nightclubs segment operating income rose to $19.6 million (31.2% margin) from $17.9 million (28.6%), helped by lower impairment and insurance costs.
Analysis · RICK · Trade & Services
RCI Hospitality delivered a solid quarter with revenue up 4% to $73.9 million and GAAP EPS of $0.83, nearly doubling the prior year's $0.46. The company used strong cash flow to pay down $8.6 million in debt and repurchase shares, shrinking the share count by 13%. Bombshells segment revenue surged 25.4% on new locations and same-store sales growth, while Nightclubs saw improved profitability. These results show operational momentum and disciplined capital allocation, though the company still carries $240 million in debt and faces ongoing legal and regulatory challenges highlighted in recent filings.
At the time of this filing, RICK was trading at $26.24 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $200.6M. The 52-week trading range was $20.76 to $38.25. This filing was assessed with positive market sentiment and an importance score of 7 out of 10.