RCI Hospitality (RICK) Q2 2025 earnings summary

Executive summary

• Total revenues for Q2 2025 were $65.9M, down 8.8% year-over-year, mainly due to the sale/divestiture of five underperforming Bombshells locations and severe winter weather, partially offset by new and rebranded locations and improved March trends.

• Net income attributable to shareholders was $3.2M, up from $0.8M in Q2 2024; GAAP EPS was $0.36 versus $0.08.

• Adjusted EBITDA for Q2 2025 was $14.2M, down from $17.2M in Q2 2024.

• Profitability was impacted by lower same-store sales but benefited from reduced costs and lower impairments.

• The company continued its 5-Year Capital Allocation Plan, acquiring new clubs, opening new locations, and repurchasing shares.

Financial highlights

• Q2 2025 revenues declined 8.8% year-over-year to $65.9M; six-month revenues were $137.4M, down from $146.2M.

• Net income for Q2 2025 was $3.2M (4.9% margin), up from $0.8M (1.1%) in Q2 2024; six-month net income was $12.3M, up from $8.0M.

• Adjusted EBITDA for Q2 2025 was $14.2M, down from $17.2M; six-month adjusted EBITDA was $29.9M, down from $34.7M.

• Free cash flow for Q2 2025 was $6.9M, down from $8.8M year-over-year; six-month free cash flow was $19.0M, down 11.5%.

• Non-GAAP EPS for Q2 2025 was $0.65, down from $0.90 in Q2 2024.

Outlook and guidance

• Five-year plan targets $400M in revenue, $75M in free cash flow, and 7.5M shares outstanding by FY29, aiming to double free cash flow per share.

• Management expects adequate cash flows from operations for the next 12 months and continued execution of the capital allocation plan.

• Focus remains on core nightclub business, improving Bombshells margins, and completing new Bombshells locations.