RCI Hospitality (RICK) investor relations material

Executive summary

• FY25 total revenues declined 5.5% to $279.4M; 4Q25 revenues were $70.9M, down 3.1% year-over-year, with all comparisons year-over-year unless noted.

• Net income attributable to shareholders for FY25 was $10.8M, up from $3.0M in FY24; 4Q25 saw a net loss of $5.5M versus a $0.2M profit in 4Q24.

• Adjusted EBITDA for FY25 was $52.6M, down from $72.6M in FY24; 4Q25 Adjusted EBITDA was $7.4M, down from $17.9M.

• Profitability was impacted by higher non-cash legal accruals, increased income taxes, and lower impairments.

• Share count reduced by 14% since FY24 end through buybacks.

Financial highlights

• 4Q25 total revenues were $70.9M, down from $73.2M in 4Q24; FY25 revenues were $279.4M versus $295.6M in FY24.

• Net income (loss) attributable to shareholders for 4Q25 was $(5.5)M, compared to $0.2M in 4Q24.

• Adjusted EBITDA for 4Q25 was $7.4M, down from $17.9M; non-GAAP loss per share was $0.12 versus a profit of $1.63.

• Free cash flow for 4Q25 was $13.1M, nearly flat year-over-year; FY25 free cash flow was $45.4M, down from $48.4M in FY24.

• Cash and equivalents at quarter-end were $33.7M, up $4.4M from June 30.

Outlook and guidance

• The 5-year plan targets $400M in revenue, $75M in free cash flow, and 7.5M shares outstanding by FY29.

• Goal to double free cash flow per share by FY29, with $250M+ cumulative FCF expected over five years.

• Targeting 10%-15% annual growth in free cash flow per share.

• Plan to add $6M of Adjusted EBITDA annually through acquisitions.

• FY26 focus is on operational improvements, asset sales (estimated value $32M), and capital deployment.