Cash flow conversion remains strained, evidenced by an OCF/NI ratio of -30.31 in 2026Q2, which highlights a significant divergence between accounting losses and operational cash generation.
| Metric | TTM | Sep'25 | Sep'24 | Sep'23 | Sep'22 | Sep'21 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'15 | Sep'14 | Sep'13 | Sep'12 | Sep'11 | Sep'10 | Sep'09 | Sep'08 | Sep'07 | Sep'06 | Sep'05 | Sep'04 | Sep'03 | Sep'02 | Sep'01 | Sep'00 | Sep'99 | Sep'98 | Sep'97 | Sep'96 |
|---|
| Cash from Operations | 45.22M | 49.42M | 55.88M | 59.13M | 64.51M | 41.99M | 15.63M | 37.17M | 25.77M | 21.09M | 23.03M | 16.36M | 20.43M | 18.38M | 18.43M | 18.88M | 17.38M | 8.93M | 14.82M | 4.38M | 2.73M | 1.71M | 497.94K | 586.33K | 1.29M | 2.17M | 774.08K | -500K | 400K | -500K | -1M |
| Operating CF Margin % | - | 17.69% | 18.91% | 20.13% | 24.1% | 21.51% | 11.81% | 20.53% | 15.55% | 14.56% | 17.08% | 12.08% | 16.83% | 16.38% | 19.35% | 22.61% | 20.94% | 11.77% | 25.59% | 13.69% | 11.13% | 11.54% | 3.59% | 3.89% | 8.26% | 11.04% | 6.08% | -4.81% | 5.13% | -7.94% | -21.74% |
| Operating CF Growth % | -50.57% | -11.57% | -5.49% | -8.34% | 53.63% | 168.62% | -57.95% | 44.26% | 22.16% | -8.41% | 40.74% | -19.92% | 11.17% | -0.24% | -2.42% | 8.66% | 94.67% | -39.77% | 238.1% | 60.8% | 59.27% | 243.69% | -15.07% | -54.39% | -40.74% | 180.27% | 254.82% | -225% | 180% | 50% | -225% |
| Net Income | -6.5M | 10.84M | 3.02M | 29.1M | 46.06M | 30.15M | -6.31M | 20.45M | 21.79M | 8.28M | 10.34M | 8.99M | 11M | 9.54M | 7.96M | 10.25M | -7.9M | 6.63M | 7.66M | 3.05M | 1.75M | -358.84K | 775.25K | 438.29K | -2.27M | 1.31M | 202.59K | 0 | -600K | -1.1M | -700K |
| Depreciation & Amortization | 15.94M | 15.08M | 15.39M | 15.15M | 12.39M | 8.24M | 8.84M | 9.07M | 7.72M | 6.92M | 7.17M | 6.89M | 6.32M | 5.31M | 4.92M | 3.9M | 3.74M | 3.21M | 2.54M | 1.63M | 1.08M | 590.47K | 544.14K | 531.56K | 490.02K | 849.86K | 585.8K | 600K | 400K | 300K | 100K |
| Stock-Based Compensation | 1.37M | 1.37M | 1.88M | 2.59M | 2.35M | 0 | 0 | 0 | 0 | 0 | 360K | 480K | 282K | 847K | 315K | 8K | 405K | 96.17K | 157.08K | 196.87K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -1.99M | -1M | -6.45M | -1.78M | 3.08M | -1.25M | -1.27M | 821K | -6.78M | 2.17M | 1.43M | -4.23M | 937K | 261K | 1.85M | 3.78M | -5.51M | 853.34K | 1.45M | -200.36K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 24.59M | 5.54M | 39.37M | 15.28M | 2.05M | 8.31M | 13M | 4.01M | 9.02M | 7.37M | 4.23M | 2.28M | -3M | 282K | 409K | 269K | 21.32M | 1M | 116.19K | -139.51K | 291.6K | -279.06K | 41.64K | -380.18K | 2.87M | 60.09K | -358.81K | 0 | 100K | 100K | 300K |
| Working Capital Changes | 11.6M | 17.59M | 2.67M | -1.2M | -1.42M | -3.45M | 1.38M | 2.82M | -5.16M | -3.65M | -503K | 1.95M | 4.9M | 2.23M | 3.09M | 672K | 5.31M | -1.93M | 2.48M | -125.42K | -403.34K | 1.76M | -852.75K | -3.35K | 200.96K | -55.18K | 344.51K | -1.1M | 500K | 200K | -700K |
| Change in Receivables | 974K | 1.94M | 4.28M | -2.38M | -175K | -769K | -294K | 457K | -3.62M | 878K | -3.99M | -339K | -36K | 331K | -80K | -1.07M | -179K | -52K | 91.3K | -437.85K | -27.22K | -179.58K | -19.46K | 37.43K | 153.01K | -81.89K | 102.8K | -500K | -100K | 0 | -100K |
| Change in Inventory | 28K | -20K | -309K | 177K | -554K | -287K | 226K | -216K | -199K | -19K | -124K | 54K | -407K | -195K | -34K | -91K | -10K | 487K | -870.49K | -40.42K | -3.78K | -24.88K | -40.44K | -19.65K | -14.5K | 4.17K | -84.7K | -100K | 0 | 0 | 0 |
| Change in Payables | 12.52M | 16.91M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash from Investing | -14.05M | -24.04M | -21.02M | -64.82M | -67.8M | -6.81M | -994K | -27.15M | -26.34M | -18.52M | -24.1M | -21.59M | -21.42M | -11.43M | -11.04M | -16.34M | -12.82M | -3.81M | -38.71M | -6.79M | -3.11M | -6.31M | -648.66K | -84.5K | -925.57K | -1.74M | -312.13K | 300K | -300K | -4.3M | -1.8M |
| Capital Expenditures | -5.92M | 0 | -24.6M | -40.38M | -24M | -13.51M | -5.74M | -20.71M | -25.26M | -11.25M | -28.15M | -19.26M | -21.36M | -9.68M | -6.9M | -11.53M | -5.96M | -2.11M | -3.14M | -1.21M | -1.64M | -4.24M | -423.96K | -162.22K | -933.47K | -1.74M | -552.26K | -1M | -1.1M | -4.3M | -1.8M |
| CapEx % of Revenue | 2.1% | 5.2% | 8.32% | 13.75% | 8.97% | 6.92% | 4.33% | 11.44% | 15.24% | 7.76% | 20.87% | 14.22% | 17.59% | 8.62% | 7.24% | 13.81% | 7.18% | 2.79% | 5.42% | 3.78% | 6.7% | 28.62% | 3.06% | 1.08% | 6% | 8.83% | 4.34% | 9.62% | 14.1% | 68.25% | 39.13% |
| Acquisitions | -6.99M | -13M | 1.97M | -24.75M | -44.62M | 5.42M | 2.22M | -6.28M | -2.03M | -9.53M | 3.43M | -2.33M | -500K | -1.79M | -4.88M | -4.28M | -5.85M | -2.43M | -35.67M | -5.57M | -1.5M | -2.65M | -265K | -150K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -1.14M | -11.04M | 1.62M | 315K | 830K | 1.28M | 2.52M | -162K | 958K | 2.25M | 3.43M | 0 | 438K | 140K | 1.25M | -21K | 0 | 739.64K | 99.99K | -9.41K | 28.54K | 584.86K | 18.84K | 227.72K | 7.9K | 0 | 240.14K | 1.3M | 800K | 0 | 0 |
| Cash from Financing | -36.95M | -24.02M | -23.54M | -9.26M | 3.58M | -15.1M | -13.13M | -13.66M | 8.37M | -3.98M | 4.38M | 3.28M | 312K | -1.82M | -11.57M | -11.44M | 1.76M | 2.2M | 26.5M | 4.55M | 759.67K | 4.8M | -175.96K | -630.33K | -331.24K | -103.05K | -465.58K | 700K | 100K | 2.1M | 5.8M |
| Debt Issued (Net) | -18.26M | -9.69M | -344K | -4.05M | 20.93M | -10.69M | -2.33M | -9.41M | 11.4M | -681K | 12.89M | 5.7M | -1.45M | 157K | -8.41M | -6.11M | 6.26M | 4.39M | -1.2M | -1.46M | 198.98K | 3.87M | -153.75K | -511.68K | -175.02K | -29.43K | -640.76K | -700K | -700K | 2M | -200K |
| Equity Issued (Net) | -18.02M | -11.86M | -20.61M | -2.22M | -15.1M | -1.79M | -9.48M | -2.9M | 0 | -1.1M | -6.81M | -2.3M | -1.15M | -1.62M | -2.09M | -3.27M | -1.6M | -1.49M | 27.35M | 5.35M | 560.69K | 928.76K | 0 | -118.65K | -156.21K | -73.62K | 175.18K | 600K | 800K | 200K | 5.6M |
| Dividends Paid | -2.38M | -2.46M | -2.3M | -2.15M | -1.78M | -1.44M | -1.29M | -1.25M | -1.17M | -1.17M | -862K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -18.02M | -11.86M | -20.61M | -2.22M | -15.1M | -1.79M | -9.48M | -2.9M | 0 | -1.1M | -7.31M | -2.3M | -1.15M | -1.62M | -2.09M | -3.27M | -1.6M | -1.49M | 0 | 0 | 0 | 0 | 0 | -118.65K | -156.21K | -73.62K | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 1.71M | 0 | -290K | -839K | -463K | -1.17M | -31K | -90K | -1.86M | -1.02M | -841K | -129K | 2.91M | -354K | -1.07M | -2.07M | -2.91M | -701.53K | 347.7K | 665.47K | 0 | 0 | -22.21K | 0 | 0 | 0 | 0 | 100K | 0 | -100K | 400K |
| Net Change in Cash | -5.77M | 1.36M | 11.33M | -14.96M | 294K | 20.08M | 1.51M | -3.63M | 7.8M | -1.41M | 3.31M | -1.94M | -674K | 5.14M | -4.18M | -8.9M | 6.32M | 7.32M | 2.6M | 2.14M | 374.6K | 205.09K | -326.68K | -128.5K | 28.74K | 330.1K | -3.63K | -200K | 200K | -2.7M | 3M |
| Free Cash Flow | 39.3M | 34.89M | 31.28M | 18.75M | 40.51M | 28.48M | 9.9M | 16.47M | 506K | 9.85M | -5.12M | -2.9M | -924K | 8.71M | 11.53M | 7.35M | 11.42M | 6.81M | 11.68M | 3.17M | 1.08M | -2.53M | 73.98K | 424.11K | 352.07K | 433.15K | 221.82K | -1.5M | -700K | -4.8M | -2.8M |
| FCF Margin % | 13.96% | 12.49% | 10.58% | 6.38% | 15.14% | 14.59% | 7.48% | 9.09% | 0.31% | 6.79% | -3.79% | -2.14% | -0.76% | 7.76% | 12.11% | 8.8% | 13.76% | 8.98% | 20.17% | 9.91% | 4.43% | -17.07% | 0.53% | 2.82% | 2.26% | 2.2% | 1.74% | -14.42% | -8.97% | -76.19% | -60.87% |
| FCF Growth % | 19.47% | 11.53% | 66.88% | -53.72% | 42.23% | 187.79% | -39.9% | 3154.15% | -94.86% | 292.4% | -76.75% | -213.31% | -110.61% | -24.47% | 56.87% | -35.66% | 67.67% | -41.68% | 268.1% | 192.7% | 142.83% | -3521.29% | -82.56% | 20.46% | -18.72% | 95.27% | 114.79% | -114.29% | 85.42% | -71.43% | -800% |
| FCF per Share | 5.08 | 3.95 | 3.38 | 2.01 | 4.32 | 3.16 | 1.08 | 1.71 | 0.05 | 1.01 | -0.50 | -0.28 | -0.09 | 0.91 | 1.19 | 0.74 | 1.18 | 0.72 | 1.39 | 0.51 | 0.21 | -0.64 | 0.02 | 0.11 | 0.08 | 0.10 | 0.05 | -0.42 | -0.32 | -2.06 | -1.40 |
| FCF Conversion (FCF/Net Income) | -6.04x | 4.57x | 18.56x | 2.02x | 1.40x | 1.38x | -2.57x | 1.83x | 1.23x | 2.55x | 2.05x | 1.78x | 1.82x | 2.00x | 2.43x | 2.41x | -2.18x | 1.71x | 1.93x | 1.43x | 1.56x | -7.95x | 0.64x | 1.34x | -0.57x | 1.65x | 3.82x | - | -0.67x | 0.38x | 1.43x |
| Interest Paid | 4.41M | 0 | 16.16M | 15.16M | 11.23M | 10.36M | 8.7M | 9.8M | 9.69M | 8.35M | 7.72M | 6.54M | 7.32M | 6.56M | 3.83M | 4.05M | 3.19M | 3.22M | 2.24M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 1.51M | 0 | 5.07M | 8.64M | 9.5M | 5.39M | 2.2M | 3.69M | 5.83M | 4.1M | 1.91M | 3.78M | 3.95M | 4.93M | 2.57M | 2.61M | 1M | 2.83M | 171.04K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Discretionary spending and regulation
As reported in recent financial filings, RICK exhibits a significant disconnect between net income and operating cash flow, with the OCF/NI ratio reaching an extreme -30.31 in 2026Q2, suggesting that reported accounting losses are heavily influenced by non-cash charges rather than underlying operational cash generation.
The persistent gap between net income and operating cash flow indicates that the company's profitability metrics are heavily distorted by depreciation and amortization. Investors should monitor whether this divergence reflects a sustainable cash-generating model or if the core nightclub assets are failing to convert accounting profits into actual liquidity.
Based on quarterly data, RICK's free cash flow margins have shown high volatility, peaking at 17.8% in 2026Q2 despite negative net income, which highlights the company's reliance on non-cash adjustments to maintain a positive cash flow profile amidst a contracting revenue environment.
While the FCF margin appears resilient, the underlying trend suggests that the company is struggling to maintain consistent cash flow growth as revenue contracts. The reliance on non-cash items to bridge the gap between net income and FCF warrants further investigation into the sustainability of these cash flows.
According to recent SEC filings, RICK's capital expenditure as a percentage of revenue has fluctuated between 3.2% and 10.6% over the last ten quarters, indicating that the company is balancing necessary maintenance of its nightclub portfolio with the capital-intensive expansion of the Bombshells restaurant brand.
The variability in capital intensity suggests that management is actively adjusting its investment pace in response to shifting market conditions. Analysts should evaluate whether current capex levels are sufficient to maintain the competitive moat provided by the company's specialized real estate and licensing assets.
As reported in financial statements, RICK has consistently prioritized share repurchases, with buybacks totaling $2.4M in 2026Q2, even as the company faces negative net income and a contracting revenue base, which may indicate a management preference for returning capital over reinvestment in growth.
The aggressive use of cash for share buybacks during periods of negative net income suggests a high level of confidence in the company's long-term value. However, investors should monitor whether this capital allocation strategy is sustainable if the current revenue contraction persists and limits future cash availability.
Quick answers to the most common questions about buying RICK stock.
RCI Hospitality Holdings, Inc. (RICK) generated $49.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
RCI Hospitality Holdings, Inc. (RICK) generated $34.9M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
RCI Hospitality Holdings, Inc. (RICK) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, RCI Hospitality Holdings, Inc. (RICK) returned $2.5M to shareholders via cash dividends and spent $11.9M on share repurchases. This shows the company's commitment to returning capital to its equity investors.