RCI Hospitality (RICK) investor relations material

Executive summary

• Total revenues for Q2 2026 increased 4.3% year-over-year to $68.7 million, with six-month revenues up 1.6% to $139.6 million, driven by new and reformatted locations despite a 1.9% decrease in consolidated same-store sales.

• Net loss attributable to common stockholders was $0.3 million for the quarter and $5.1 million for six months, mainly due to $7.6 million in non-cash impairments, with basic and diluted EPS of $(0.04), compared to net income of $3.2 million and EPS of $0.36 in Q2 2025.

• Adjusted EBITDA for the quarter was $15.6 million, up 9.4% year-over-year, and non-GAAP diluted EPS was $0.78, up from $0.65.

• Free cash flow improved to $8.4 million for the quarter, up from $6.9 million a year ago.

• Significant legal and regulatory matters, including a New York indictment and related SEC investigation, led to executive changes and ongoing litigation.

Financial highlights

• Q2 2026 revenues: $68.7 million (+4.3% YoY); six-month revenues: $139.6 million (+1.6% YoY).

• Operating income for Q2 2026 was $3.8 million (5.5% margin), down from $8.2 million (12.4%) last year, due to higher impairments.

• Adjusted EBITDA margin rose to 22.7% from 21.6% year-over-year.

• Net cash provided by operating activities was $9.9 million for the quarter, up from $8.5 million.

• Weighted average shares outstanding declined 12.6% year-over-year due to share buybacks.

Outlook and guidance

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

• Growth strategy focuses on improving existing units, selective acquisitions, and limiting new Bombshells locations.

• Five-year targets: $400 million in total revenues, $75 million in free cash flow, and 7.5 million shares outstanding by fiscal 2029.

• Management highlighted improved performance in key metrics despite weather-related club closures and expects continued benefits from strategic initiatives, including the 'pre-game and party all in one' strategy at Bombshells.