New York, May 29, 2026, 05:04 (EDT)
- RCI Hospitality put out its overdue second-quarter Form 10-Q and showed revenue growth, clearing up one disclosure issue ahead of the Nasdaq open Friday.
- RICK last changed hands at $25.22, 62 cents higher, giving it a market cap around $209 million.
- RCI Hospitality Holdings this period. Adjusted profit and cash flow both rose.
RCI Hospitality Holdings shares were in focus Friday after the nightclub and sports-bar company filed its late quarterly report, showing higher adjusted profit but posting a small accounting loss after impairment charges.
Timing is in focus. Last week, RCI got a Nasdaq notice for not filing its second-quarter Form 10-Q on time. The 10-Q is a quarterly filing with the SEC. Nasdaq said the notice doesn’t affect RCI’s listing right now and gave the company until July 20 to file or send in a plan.
RCI’s investor page now shows it filed both a Form 10-Q and an 8-K for May 28, clearing up whether the company met the deadline for filing. There’s still no new disclosure confirming from Nasdaq that the issue is closed.
The stock recently traded at $25.22, up $0.62 from the previous close, according to the latest data. Regular hours on the Nasdaq are 9:30 a.m. to 4 p.m. Eastern; pre-market starts at 4 a.m. Nasdaq’s 2026 calendar does not show May 29 as a U.S. market holiday.
RCI posted revenue of $68.7 million for its second quarter ended March 31, up from $65.9 million a year ago. Earnings per share swung to a loss of 4 cents, after showing a profit of 36 cents last year. Non-GAAP EPS increased to 78 cents from 65 cents.
Interim President and CEO Travis Reese said RCI showed “improved performance in many key metrics,” but net income and EPS dropped after non-cash impairments. The impairments are write-downs when asset values are seen as too high. RCI Hospitality Holdings
Adjusted EBITDA climbed to $15.6 million, up from $14.2 million. Free cash flow was $8.4 million, compared to $6.9 million. The figures are before interest, taxes, depreciation, amortization and some other costs.
Nightclubs drove most of the growth. RCI said nightclub revenue climbed 4.8% to $60.3 million, getting a boost from five clubs that were acquired, opened, or reformatted. Bombshells revenue was up 1.6% to $8.4 million, but the Bombshells segment still posted an operating loss.
Reese blamed freezing weather in late January and early February for shutting some clubs for a day or two, mostly on weekends. He said RCI kept buying back stock, with about 7.64 million shares out as of May 22.
RCI is telling investors it’s focused on cash generation and buybacks. The company’s capital plan aims to use 40% of free cash flow for nightclub acquisitions and the other 60% for buybacks, dividends, and debt. RCI can move away from that mix.
RCI’s sports-bar business gives some read-through for investors from other restaurant and entertainment stocks, but its main focus is still adult nightclubs, which is a more niche market. Dave & Buster’s traded up 36 cents to $13.50 early Friday. Brinker International slipped $1.37 to $140.02.
Cleaner financials don’t take all the risk off the table. RCI showed $7.6 million in impairments and other charges, and had $248.7 million in debt as of March 31. Risks flagged by the company include the nightclub and restaurant business, cyber security, real estate, competition, and staying in compliance with SEC and Nasdaq filing rules.
