Revenue growth has turned negative, with the most recent quarterly top-line declining to $68.7M in 2026Q2 alongside operating margins that have compressed to 16.7%.
| 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 |
|---|
| Sales/Revenue | 281.63M | 279.43M | 295.6M | 293.79M | 267.62M | 195.26M | 132.33M | 181.06M | 165.75M | 144.9M | 134.86M | 135.45M | 121.43M | 112.21M | 95.22M | 83.49M | 82.99M | 75.83M | 57.91M | 32.01M | 24.49M | 14.82M | 13.86M | 15.06M | 15.56M | 19.66M | 12.74M | 10.4M | 7.8M | 6.3M | 4.6M |
| Revenue Growth % | -1.8% | -5.47% | 0.62% | 9.78% | 37.06% | 47.56% | -26.91% | 9.24% | 14.39% | 7.44% | -0.43% | 11.54% | 8.22% | 17.84% | 14.05% | 0.61% | 9.44% | 30.95% | 80.88% | 30.74% | 65.18% | 6.97% | -7.98% | -3.2% | -20.87% | 54.32% | 22.49% | 33.33% | 23.81% | 36.96% | 2.22% |
| Cost of Goods Sold | 126.27M | 120.3M | 125.16M | 118.5M | 104.46M | 80.68M | 58.51M | 74.77M | 67.46M | 60.75M | 58M | 58.05M | 48.98M | 39.3M | 33.5M | 28.75M | 9.93M | 8.89M | 6.54M | 4.04M | 2.92M | 1.87M | 1.62M | 2.19M | 2.97M | 6.59M | 1.86M | 800K | 700K | 900K | 700K |
| COGS % of Revenue | - | 43.05% | 42.34% | 40.34% | 39.03% | 41.32% | 44.21% | 41.3% | 40.7% | 41.93% | 43.01% | 42.86% | 40.34% | 35.02% | 35.18% | 34.43% | 11.96% | 11.73% | 11.29% | 12.61% | 11.91% | 12.58% | 11.72% | 14.58% | 19.09% | 33.5% | 14.59% | 7.69% | 8.97% | 14.29% | 15.22% |
| Gross Profit | 155.35M | 159.13M | 170.44M | 175.29M | 163.16M | 114.58M | 73.82M | 106.29M | 98.29M | 84.15M | 76.86M | 77.4M | 72.45M | 72.91M | 61.72M | 54.74M | 73.06M | 66.93M | 51.37M | 27.98M | 21.57M | 12.96M | 12.23M | 12.86M | 12.59M | 13.07M | 10.88M | 9.6M | 7.1M | 5.4M | 3.9M |
| Gross Margin % | 55.16% | 56.95% | 57.66% | 59.66% | 60.97% | 58.68% | 55.79% | 58.7% | 59.3% | 58.07% | 56.99% | 57.14% | 59.66% | 64.98% | 64.82% | 65.57% | 88.04% | 88.27% | 88.71% | 87.39% | 88.09% | 87.42% | 88.28% | 85.42% | 80.91% | 66.5% | 85.41% | 92.31% | 91.03% | 85.71% | 84.78% |
| Gross Profit Growth % | - | -6.64% | -2.76% | 7.43% | 42.4% | 55.21% | -30.55% | 8.14% | 16.81% | 9.48% | -0.7% | 6.83% | -0.63% | 18.13% | 12.74% | -25.07% | 9.15% | 30.3% | 83.6% | 29.7% | 66.47% | 5.92% | -4.9% | 2.2% | -3.71% | 20.15% | 13.34% | 35.21% | 31.48% | 38.46% | 0% |
| Operating Expenses | 120.73M | 122.92M | 151.64M | 123.8M | 91.7M | 76.03M | 71.08M | 71.59M | 70.73M | 61.01M | 56.16M | 56.67M | 53.57M | 51.03M | 45.46M | 35.95M | 79.43M | 55.2M | 36.15M | 23.87M | 18.58M | 12.66M | 10.84M | 12.51M | 11.96M | 11.54M | 10.77M | 9.5M | 7.3M | 6.4M | 4.8M |
| OpEx % of Revenue | - | 43.99% | 51.3% | 42.14% | 34.27% | 38.94% | 53.71% | 39.54% | 42.67% | 42.1% | 41.65% | 41.84% | 44.12% | 45.48% | 47.74% | 43.06% | 95.72% | 72.8% | 62.42% | 74.58% | 75.88% | 85.4% | 78.22% | 83.05% | 76.9% | 58.71% | 84.51% | 91.35% | 93.59% | 101.59% | 104.35% |
| Selling, General & Admin | 87.17M | 88.56M | 78.81M | 76.13M | 65.63M | 43.14M | 41.33M | 46.14M | 42.09M | 36.66M | 32.9M | 33.65M | 31.05M | 17.63M | 15.2M | 12.88M | 42.81M | 41.56M | 26.9M | 15.11M | 14.38M | 10.08M | 8.54M | 10.43M | 11.64M | 11.54M | 10.18M | 8.9M | 6.9M | 6.1M | 4.7M |
| SG&A % of Revenue | - | 31.69% | 26.66% | 25.91% | 24.52% | 22.09% | 31.23% | 25.48% | 25.4% | 25.3% | 24.39% | 24.84% | 25.57% | 15.71% | 15.96% | 15.43% | 51.59% | 54.81% | 46.45% | 47.18% | 58.71% | 68.02% | 61.65% | 69.28% | 74.8% | 58.71% | 79.91% | 85.58% | 88.46% | 96.83% | 102.17% |
| Research & Development | 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 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 34.35M | 72.83M | 47.67M | 26.08M | 32.89M | 29.74M | 25.45M | 28.64M | 24.35M | 23.27M | 23.02M | 22.53M | 33.4M | 30.26M | 23.07M | 36.62M | 13.64M | 9.24M | 8.77M | 4.2M | 2.58M | 2.3M | 2.07M | 325.78K | 0 | 585.8K | 600K | 400K | 300K | 100K |
| Operating Income | 34.62M | 36.22M | 18.8M | 51.48M | 71.46M | 38.55M | 2.75M | 34.7M | 27.56M | 23.14M | 20.69M | 20.73M | 18.88M | 21.88M | 16.26M | 18.79M | -6.37M | 11.73M | 15.22M | 4.1M | 2.99M | 299.08K | 1.39M | 357.95K | 623.98K | 1.53M | 114.6K | 100K | -200K | -1M | -900K |
| Operating Margin % | 12.29% | 12.96% | 6.36% | 17.52% | 26.7% | 19.74% | 2.08% | 19.17% | 16.63% | 15.97% | 15.34% | 15.3% | 15.54% | 19.5% | 17.08% | 22.51% | -7.68% | 15.47% | 26.29% | 12.82% | 12.22% | 2.02% | 10.06% | 2.38% | 4.01% | 7.78% | 0.9% | 0.96% | -2.56% | -15.87% | -19.57% |
| Operating Income Growth % | - | 92.58% | -63.47% | -27.95% | 85.38% | 1303.79% | -92.09% | 25.9% | 19.11% | 11.82% | -0.16% | 9.81% | -13.75% | 34.59% | -13.49% | 394.9% | -154.33% | -22.95% | 270.96% | 37.18% | 900.19% | -78.55% | 289.61% | -42.63% | -59.21% | 1234.93% | 14.6% | 150% | 80% | -11.11% | -250% |
| EBITDA | 50.56M | 51.29M | 34.2M | 66.64M | 83.85M | 46.79M | 11.58M | 43.77M | 35.28M | 30.06M | 28.02M | 27.77M | 25.19M | 27.22M | 21.22M | 22.7M | -2.63M | 15.15M | 17.45M | 5.7M | 4.08M | 889.55K | 1.87M | 889.51K | 1.11M | 2.38M | 700.4K | 700K | 200K | -700K | -800K |
| EBITDA Margin % | 17.95% | 18.36% | 11.57% | 22.68% | 31.33% | 23.96% | 8.75% | 24.18% | 21.29% | 20.75% | 20.78% | 20.5% | 20.74% | 24.26% | 22.29% | 27.19% | -3.17% | 19.98% | 30.13% | 17.81% | 16.65% | 6% | 13.53% | 5.91% | 7.16% | 12.1% | 5.5% | 6.73% | 2.56% | -11.11% | -17.39% |
| EBITDA Growth % | 32.82% | 49.98% | -48.68% | -20.53% | 79.22% | 303.95% | -73.54% | 24.06% | 17.38% | 7.27% | 0.9% | 10.25% | -7.45% | 28.25% | -6.49% | 963.04% | -117.36% | -13.14% | 206.05% | 39.85% | 358.23% | -52.54% | 110.72% | -20.15% | -53.19% | 239.77% | 0.06% | 250% | 128.57% | 12.5% | -214.29% |
| D&A (Non-Cash Add-back) | 15.94M | 15.08M | 15.39M | 15.15M | 12.39M | 8.24M | 8.84M | 9.07M | 7.72M | 6.92M | 7.33M | 7.04M | 6.32M | 5.34M | 4.96M | 3.9M | 3.74M | 3.42M | 2.22M | 1.6M | 1.08M | 590.47K | 479.79K | 531.56K | 490.02K | 849.86K | 585.8K | 600K | 400K | 300K | 100K |
| EBIT | 23.58M | 31.8M | 19.29M | 51.87M | 72.08M | 44.13M | 3.01M | 34.4M | 27.8M | 23.41M | 20.82M | 20.97M | 24.66M | 21.89M | 16.39M | 19.94M | -6.39M | 12.07M | 15.14M | 4.63M | 2.99M | 299.08K | 1.39M | 357.95K | 623.98K | 1.53M | 114.6K | 100K | -200K | -1M | -900K |
| Net Interest Income | -16.59M | -15.79M | -16.2M | -15.54M | -11.54M | -9.74M | -9.49M | -9.9M | -9.72M | -8.5M | -7.85M | -6.95M | -7.6M | -7.07M | -4.29M | -4.17M | -4.46M | -3.41M | -2.51M | -1.28M | 0 | 0 | 0 | 16.88K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 428K | 565K | 482K | 388K | 411K | 253K | 324K | 309K | 234K | 266K | 131K | 15K | 148K | 9K | 19K | 118K | 18K | 16.38K | 136.6K | 58.39K | 0 | 0 | 0 | 16.88K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 17.02M | 16.35M | 16.68M | 15.93M | 11.95M | 9.99M | 9.81M | 10.21M | 9.95M | 8.76M | 7.98M | 6.97M | 7.75M | 7.08M | 4.31M | 4.29M | 4.47M | 3.42M | 2.71M | 1.34M | 0 | 1.15K | 0 | 0 | 340.4K | 0 | 0 | 0 | 0 | 200K | 0 |
| Other Income/Expense | -38.06M | -20.77M | -16.2M | -15.54M | -11.33M | -4.41M | -9.55M | -10.51M | -9.72M | -8.5M | -7.85M | -6.72M | -1.96M | -7.07M | -4.18M | -3.14M | -4.49M | -3.08M | -2.73M | -812.34K | -1.24M | -299.08K | -1.39M | -357.95K | -623.98K | -1.53M | -114.6K | -100K | 200K | -200K | 0 |
| Pretax Income | -3.44M | 15.45M | 2.61M | 35.95M | 60.13M | 34.14M | -6.8M | 24.19M | 17.84M | 14.64M | 12.84M | 14M | 16.91M | 14.82M | 12.08M | 15.65M | -10.86M | 8.65M | 12.5M | 3.29M | 1.75M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.2M | -900K |
| Pretax Margin % | -1.22% | 5.53% | 0.88% | 12.24% | 22.47% | 17.48% | -5.14% | 13.36% | 10.76% | 10.1% | 9.52% | 10.34% | 13.93% | 13.2% | 12.69% | 18.75% | -13.09% | 11.41% | 21.58% | 10.28% | 7.16% | - | - | - | - | - | - | - | - | -19.05% | -19.57% |
| Income Tax | 2.85M | 4.61M | -410K | 6.85M | 14.07M | 3.99M | -493K | 3.74M | -3.12M | 6.36M | 2.37M | 5.11M | 5.92M | 5.41M | 4.29M | 5.4M | -3.22M | 2.85M | 3.87M | 236.45K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -100K | -200K |
| Effective Tax Rate % | -82.63% | 29.84% | -15.72% | 19.05% | 23.4% | 11.68% | 7.24% | 15.48% | -17.48% | 43.43% | 18.48% | 36.5% | 34.98% | 36.54% | 35.52% | 34.51% | 29.65% | 33% | 31% | 7.18% | 0% | - | - | - | - | - | - | - | - | 8.33% | 22.22% |
| Net Income | -6.5M | 10.81M | 3.01M | 29.25M | 46.04M | 30.34M | -6.08M | 20.29M | 20.88M | 8.26M | 11.22M | 9.21M | 11.24M | 9.19M | 7.58M | 7.85M | -7.96M | 5.21M | 7.66M | 3.05M | 1.75M | -215.15K | 775.25K | 438.29K | -2.27M | 1.31M | 202.59K | 0 | -600K | -1.3M | -700K |
| Net Margin % | -2.31% | 3.87% | 1.02% | 9.95% | 17.2% | 15.54% | -4.6% | 11.21% | 12.6% | 5.7% | 8.32% | 6.8% | 9.26% | 8.19% | 7.96% | 9.4% | -9.59% | 6.87% | 13.23% | 9.54% | 7.16% | -1.45% | 5.59% | 2.91% | -14.6% | 6.69% | 1.59% | - | -7.69% | -20.63% | -15.22% |
| Net Income Growth % | -189.51% | 259.05% | -89.7% | -36.48% | 51.77% | 598.54% | -129.98% | -2.8% | 152.8% | -26.38% | 21.75% | -18.02% | 22.29% | 21.29% | -3.42% | 198.59% | -252.8% | -32.02% | 150.77% | 74.3% | 914.65% | -127.75% | 76.88% | 119.3% | -272.75% | 548.96% | - | 100% | 53.85% | -85.71% | -275% |
| Net Income (Continuing) | -6.29M | 10.84M | 3.02M | 29.1M | 46.06M | 30.15M | -6.31M | 20.45M | 20.96M | 8.28M | 10.47M | 8.89M | 11M | 9.4M | 7.79M | 10.25M | -7.64M | 5.79M | 8.62M | 2.86M | 1.75M | -358.84K | 1.12M | 438.29K | 261.2K | 1.31M | 202.59K | 0 | -600K | -1.1M | -700K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -143K | -172K | -2.19M | -57K | -293K | -961.18K | 0 | 0 | 143.69K | -349.05K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 2.48M | -222K | -250K | -257K | 489K | -600K | -414K | -156K | -103K | 2.48M | 2.58M | 5.86M | 3.01M | 3.33M | 3.31M | 3.31M | 3.31M | 3.32M | 3.36M | 180.73K | 0 | 31.34K | 40.81K | 36.03K | 80.16K | 78.82K | 64.41K | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.84 | 1.23 | 0.33 | 3.13 | 4.91 | 3.37 | -0.69 | 2.10 | 2.15 | 0.85 | 1.10 | 0.89 | 1.13 | 0.96 | 0.78 | 0.79 | -0.82 | 0.55 | 0.91 | 0.50 | 0.35 | -0.05 | 0.21 | 0.12 | -0.54 | 0.30 | 0.05 | -0.01 | -0.28 | -0.56 | -0.35 |
| EPS Growth % | -193.26% | 272.73% | -89.46% | -36.25% | 45.7% | 588.41% | -132.86% | -2.33% | 152.94% | -22.73% | 23.6% | -21.24% | 17.71% | 23.08% | -1.27% | 196.34% | -249.09% | -39.56% | 82% | 42.86% | 741.03% | -126% | 75% | 122.22% | -280% | 500% | 600% | 96.43% | 50% | -60% | -187.5% |
| EPS (Basic) | - | 1.23 | 0.33 | 3.13 | 4.91 | 3.37 | -0.69 | 2.10 | 2.15 | 0.85 | 1.12 | 0.89 | 1.15 | 0.97 | 0.78 | 0.79 | -0.82 | 0.56 | 0.97 | 0.54 | 0.38 | -0.05 | 0.21 | 0.12 | -0.54 | 0.30 | 0.05 | -0.01 | -0.28 | -0.63 | -0.40 |
| Diluted Shares Outstanding | 7.74M | 8.82M | 9.25M | 9.34M | 9.38M | 9.01M | 9.2M | 9.66M | 9.72M | 9.74M | 10.23M | 10.41M | 10.64M | 9.62M | 9.7M | 9.93M | 9.7M | 9.43M | 8.41M | 6.22M | 5.07M | 3.94M | 3.7M | 3.73M | 4.24M | 4.41M | 4.2M | 3.57M | 2.17M | 2.33M | 2M |
| Basic Shares Outstanding | 7.74M | 8.82M | 9.25M | 9.34M | 9.38M | 9.01M | 9.2M | 9.66M | 9.72M | 9.73M | 9.94M | 10.36M | 9.82M | 9.52M | 9.69M | 9.93M | 9.7M | 9.27M | 7.93M | 5.7M | 4.64M | 3.94M | 3.7M | 3.73M | 4.24M | 4.41M | 4.2M | 3.36M | 2.17M | 2.06M | 1.77M |
| Dividend Payout Ratio | - | 22.79% | 76.45% | 7.34% | 3.87% | 4.75% | - | 6.17% | 5.59% | 14.17% | 7.68% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Regulatory and Discretionary Spending
As evidenced by the most recent quarterly data, RICK has experienced a sustained period of negative top-line growth, with revenue declining to $68.7M in 2026Q2, marking a clear departure from the growth trajectory observed in earlier periods and signaling potential saturation or weakening consumer demand.
The consistent negative year-over-year revenue growth suggests that the company's roll-up strategy may be facing headwinds in identifying accretive acquisitions. Investors should monitor whether this contraction reflects a broader pullback in high-end discretionary spending or specific operational challenges within the Bombshells segment.
Based on the provided financial statements, RICK's gross margin profile has exhibited notable instability, dropping to 50.8% in 2026Q1 before recovering slightly to 56.3% in 2026Q2, which highlights the sensitivity of the company's cost structure to fluctuating input prices and service fee realization.
While the company maintains a structurally high gross margin, the recent volatility suggests that the mix between high-margin nightclub services and lower-margin restaurant operations is shifting unfavorably. This inconsistency warrants further investigation into whether the company retains sufficient pricing power to offset inflationary pressures on labor and beverage costs.
According to the reported income statement figures, RICK's operating income has failed to scale efficiently, with operating margins compressing to 16.7% in 2026Q2, a decline that suggests fixed costs are becoming increasingly burdensome relative to the current, lower revenue base.
The inability to maintain operating margins during periods of revenue contraction indicates a high degree of operating leverage that works against the company when top-line growth stalls. Management's ability to rationalize SG&A expenses will be critical to preventing further erosion of operating profitability in the coming quarters.
As reported in the quarterly filings, RICK's net income has turned negative in several recent periods, including a loss of $326.0K in 2026Q2, which appears to be driven by non-operating items and significant depreciation charges that mask the underlying cash-generating capacity of the core nightclub assets.
The discrepancy between gross profit and net income suggests that the company's real estate-heavy model creates substantial non-cash expenses that complicate earnings analysis. Investors should look past the headline EPS volatility to determine if the core business remains fundamentally profitable on an adjusted EBITDA basis.
Based on the latest financial data, the primary risk to the investment thesis is the potential for a permanent shift in the company's ability to consolidate the fragmented nightclub market, as evidenced by the recent negative revenue growth and declining net margins.
Short-sellers may focus on the company's reliance on debt-funded acquisitions and the potential for regulatory changes to impact the scarcity value of its nightclub licenses. If the company cannot return to positive organic growth, the current valuation may be vulnerable to a re-rating as the market questions the sustainability of its roll-up strategy.
Quick answers to the most common questions about buying RICK stock.
For fiscal year 2025, RCI Hospitality Holdings, Inc. (RICK) reported total revenue of $279.4M. This represents a 5974.7% increase compared to $4.6M in 1996.
RCI Hospitality Holdings, Inc. (RICK) is profitable, generating $10.8M in net income for the fiscal year ending 2025 with a net profit margin of 3.9%.
RCI Hospitality Holdings, Inc. (RICK) reported an operating income of $36.2M, resulting in an operating profit margin of 13.0%. This margin reflects the operational efficiency of the business before interest and taxes.
RCI Hospitality Holdings, Inc. (RICK) generated $159.1M in gross profit for the year, representing a gross profit margin of 56.9%. This demonstrates the company's core pricing power and production efficiency.