RCI Hospitality (RICK) investor relations material

Executive summary

• 1Q26 revenues were $70.8M, down 0.9% from $71.5M in 1Q25, with Nightclubs up 0.9% and Bombshells down 12.6%.

• Net loss attributable to common stockholders was $4.7M, compared to net income of $9.0M in 1Q25, primarily due to $10.1M in pre-tax net charges and legal costs.

• Basic and diluted GAAP EPS was $(0.57) versus $1.01 in 1Q25; non-GAAP EPS was $0.74 versus $0.80.

• Adjusted EBITDA remained flat at $15.7M year-over-year.

• Over one million shares were repurchased as of May 1, 2026, reducing shares outstanding by 14.6% since September 2024.

Financial highlights

• Nightclubs revenue increased 0.9% to $62.3M; Bombshells revenue decreased 12.6% to $8.4M.

• Consolidated same-store sales declined 7.7% (Nightclubs -5.8%, Bombshells -21.9%).

• Free cash flow dropped 44.6% to $6.7M, and net cash from operating activities fell 41.4% to $7.8M.

• Operating margin declined to 15.6% from 19.5% year-over-year.

• Cost of goods sold as a percent of revenue decreased to 13.0% from 13.3%.

Outlook and guidance

• Five-year plan targets $400M in revenue, $75M in FCF, and 7.5M shares outstanding by FY29.

• Goal to double FCF per share by FY29, with 40% of FCF allocated to acquisitions and 60% to buybacks, debt reduction, and dividends.

• Management expects adequate cash flows from operations for the next 12 months.

• Bombshells expansion is paused, with only one new location under construction.