Rci Hospitality Holdings, Inc. (NASDAQ: RICK)

RCI Hospitality Holdings, Inc. operates live adult entertainment venues and restaurant concepts across the United States. As of September 30, 2025 the company owned and managed 71 establishments in 15 states, including one venue temporarily closed for fire damage and another undergoing rebranding. Its portfolio includes numerous nightclub brands such as Rick’s Cabaret, Jaguars Club, Tootsie’s Cabaret, XTC Cabaret, Club Onyx, Hoops Cabaret and Sports Bar, Scarlett’s Cabaret, Diamond Cabaret, Cheetah Gentlemen's Club, PT's Showclub, Playmates Club, Country Rock Cabaret, Temptations Adult Cabaret, Foxy’s Cabaret, Vivid Cabaret, Downtown Cabaret, Cabaret East, The Seville, Silver City Cabaret, Heartbreakers Gentlemen's Club, Kappa Men’s Club, Baby Dolls, and Chicas Locas, plus the dance club Studio 80.

Revenue is generated primarily from the sale of alcoholic beverages, food, and merchandise at its nightclubs and restaurant locations, as well as from cover charges, licensing fees, room rentals, ATM commissions, and vending income. In fiscal 2025 total revenue was $279.4 million, with the Nightclubs segment deriving 40% of its sales from service charges, 43% from alcoholic beverages, and 17% from food, merchandise, and other items, yielding a gross margin of approximately 88.6%. The Bombshells segment reported 52% of its revenue from alcoholic beverages and 48% from food, merchandise, and other items, resulting in a gross margin of about 76.1%, while the Other segment earns income from advertising, subscriptions, ticket sales for trade shows and award shows, and the distribution of an energy drink under the Drink Robust label.

The company operates through the following segments: Nightclubs, Bombshells, and Other.

• Nightclubs: This segment operates adult entertainment nightclubs under the brands listed above, providing beverages, food, cover charges, licensing, room rentals, ATM commissions, and vending income to patrons; in fiscal 2025 the Nightclubs segment generated a portion of the company’s $279.4 million total revenue and maintained a gross margin near 88.6% while operating venues in states such as Arizona, Colorado, Florida, Illinois, Indiana, Kentucky, Louisiana, Maine, Michigan, Minnesota, New York, North Carolina, Pennsylvania, South Carolina, and Texas.

• Bombshells: This segment runs a restaurant and bar concept with military themed décor, local DJs, large outdoor patios, and more than 75 flat screen TVs for sports viewing; menu items carry military names and staff wear military inspired uniforms to create a lively atmosphere, generating revenue from food and beverage sales; in fiscal 2025 the Bombshells contributed a share of the company’s total revenue and posted a gross margin around 76.1% while operating locations in Colorado, Texas, and other states.

• Other: This segment consists of the Media Group, which publishes industry magazines such as ED (Exotic Dancer) and StorErotica, organizes the annual ED EXPO trade show, runs award shows, maintains websites serving the adult nightclub and adult retail sectors, and Drink Robust, which is licensed to sell an energy drink in the United States; revenue derives from advertising, subscriptions, event ticket sales, and product distribution, supporting the company’s diversification beyond venue operations.

RCI Hospitality Holdings, Inc. holds a recognizable brand portfolio in the fragmented adult entertainment market, competing with numerous locally owned clubs while leveraging its proprietary names and distinct venue experiences to maintain a competitive edge. In the restaurant sports bar niche, the Bombshells concept differentiates itself through its military theme and sports focused amenities, appealing to patrons seeking a specialized dining environment. The Media Group within the Other segment provides the company with influence over industry communications, giving it access to a network of approximately two thousand nightclubs and related businesses across North America.

The company serves adult entertainment patrons seeking nightlife and dining experiences, sports bar customers looking for food and drinks in a military themed setting, and advertisers and subscribers within the adult nightclub and retail industries who use its media platforms for promotion and information. Specific customer groups include individual guests at its nightclubs and Bombshells locations, corporate clients booking private events, and trade show participants attending the ED EXPO. This diverse base supports revenue stability across its operating segments.