RCI Hospitality Holdings, Inc. (NASDAQ:RICK) today filed its Form 10-Q and reported results for the fiscal 2026 second quarter ended March 31, 2026.

Summary Financials (in millions, except EPS)	2Q26	2Q25	6M26	6M25
Total revenues	$68.7	$65.9	$139.6	$137.4
EPS	$(0.04)	$0.36	$(0.63)	$1.38
Non-GAAP EPS¹	$0.78	$0.65	$1.52	$1.46
Impairments and other charges, net	$7.6	$2.1	$7.9	$(0.1)
Net cash provided by operating activities	$9.9	$8.5	$17.7	$21.9
Free cash flow¹	$8.4	$6.9	$15.1	$19.0
Net income (loss) attributable to RCIHH common stockholders	$(0.3)	$3.2	$(5.1)	$12.3
Adjusted EBITDA¹	$15.6	$14.2	$31.3	$29.9
Weighted average shares used in computing EPS – basic and diluted	7.74	8.86	8.02	8.89
¹ See "Non-GAAP Financial Measures" below.

Summary (Comparisons are to year-ago periods unless indicated otherwise)

Travis Reese, Interim President and CEO, said: "We're pleased to report improved performance in many key metrics. While net income attributable to RCIHH common stockholders and EPS declined due to non-cash impairments, non-GAAP EPS, net cash provided by operating activities, free cash flow, and adjusted EBITDA all increased."

"This performance was despite freezing weather in late January-early February that caused a number of clubs to close for one to two days each, mostly on weekends."

"As previously reported, Nightclubs total sales increased and same-store sales were nearly level. Bombshells total sales also increased. While same-store sales declined, the initial implementation of our ‘pre-game and party all in one' strategy to increase the mix of higher-margin alcoholic beverage sales resulted in a 3.6% same-store sales increase at Bombshells 59 in Houston, making it the best‑performing same-store location."

"In line with our 5-Year Capital Allocation Plan, we have continued to buy back shares. As of May 22, 2026, we had approximately 7,644,500 shares outstanding."

Note: There will be no conference call as RCI just held one on May 7, 2026, when it reported its delayed 1Q26 results.

2Q26 Results (Comparisons are to year-ago periods unless indicated otherwise)

Nightclubs segment: Revenues of $60.3 million increased by 4.8%. Five newly acquired, opened and reformatted clubs generated $4.8 million in sales, the 51 clubs in same-store sales produced $54.5 million, and one club was closed during the quarter.² By revenue type, service increased 11.3%; food, merchandise and other increased 3.8%; and alcoholic beverages declined 0.9%.

Impairments and other charges, net of $7.6 million compared to $2.0 million. Operating income was $10.8 million compared to $14.5 million or 17.8% of segment revenues compared to 25.3%. Non-GAAP operating income, which excludes impairment and other net charges, was $19.0 million compared to $17.1 million or 31.5% of segment revenues compared to 29.7%.

Bombshells segment: Revenues of $8.4 million increased 1.6%. Sales reflected $1.6 million from two newly opened locations and $6.8 million from the nine same-store locations.²By revenue type, alcoholic beverages increased 4.0% and food was level with 2Q25.

Other charges, net of $67,000 compared to $159,000. Operating loss was $267,000 compared to $245,000 or -3.2% of segment revenues compared to -3.0%. Non-GAAP operating loss, which excludes other net charges, was $200,000 compared to $85,000 or -2.4% of segment revenues compared to -1.0%.

Corporate segment: Expenses totaled $6.6 million compared to $5.9 million or 9.6% of total revenues compared to 9.0%. Most of the year over year change reflected increased insurance costs. Non-GAAP expenses totaled $6.4 million compared to $5.8 million or 9.3% of total revenues compared to 8.8%.

Impairments and other charges, net within consolidated operations totaled $7.6 million compared to $2.1 million.

Income tax was a benefit of $0.4 million compared to an expense of $1.1 million.

Weighted average shares outstanding of 7.74 million declined 12.6% due to share buybacks.

Debt of $248.7 million at March 31, 2026 declined 3.0% from $256.4 million at December 31, 2025, primarily reflecting debt paydowns. Compared to a year ago, debt increased 3.0%.

²See our April 9, 2026 news release on 2Q26 sales for more details.

Non-GAAP Financial Measures

In addition to our financial information presented in accordance with GAAP, management uses certain non-GAAP financial measures, within the meaning of the SEC Regulation G, to clarify and enhance understanding of past performance and prospects for the future. Generally, a non-GAAP financial measure is a numerical measure of a company's operating performance, financial position or cash flows that excludes or includes amounts that are included in or excluded from the most directly comparable measure calculated and presented in accordance with GAAP. We monitor non-GAAP financial measures because they describe the operating performance of the Company and help management and investors gauge our ability to generate cash flow, excluding (or including) some items that management believes are not representative of the ongoing business operations of the Company, but are included in (or excluded from) the most directly comparable measures calculated and presented in accordance with GAAP. Relative to each of the non-GAAP financial measures, we further set forth our rationale as follows:

Non-GAAP Operating Income and Non-GAAP Operating Margin. We calculate non-GAAP operating income and non-GAAP operating margin by excluding the following items from income from operations and operating margin: (a) amortization of intangibles, (b) impairment of assets, (c) settlement of lawsuits, net of recoveries, (d) gains or losses on sale of businesses and assets, (e) gains or losses on insurance, and (f) stock-based compensation. We believe that excluding these items assists investors in evaluating period-over-period changes in our operating income and operating margin without the impact of items that are not a result of our day-to-day business and operations.

Non-GAAP Net Income and Non-GAAP Net Income per Diluted Share. We calculate non-GAAP net income and non-GAAP net income per diluted share by excluding or including certain items to net income or loss attributable to RCIHH common stockholders and diluted earnings per share. Adjustment items are: (a) amortization of intangibles, (b) impairment of assets, (c) settlement of lawsuits, net of recoveries, (d) gains or losses on sale of businesses and assets, (e) gains or losses on insurance, (f) stock-based compensation, (g) premium on stock repurchase, (h) gains or losses on lease termination, and (i) the income tax effect of the above-described adjustments. Included in the income tax effect of the above adjustments is the net effect of the non-GAAP provision for income taxes, calculated at approximately 22.3% and 18.1% effective tax rate of the pre-tax non-GAAP income before taxes for the six months ended March 31, 2026, and 2025, respectively, and the GAAP income tax expense (benefit). We believe that excluding and including such items help management and investors better understand our operating activities.

Adjusted EBITDA. We calculate adjusted EBITDA by excluding the following items from net income or loss attributable to RCIHH common stockholders: (a) depreciation and amortization, (b) income tax expense, (c) net interest expense, (d) impairment of assets, (e) settlement of lawsuits, net of recoveries, (f) gains or losses on sale of businesses and assets, (g) gains or losses on insurance, (h) stock-based compensation, (i) premium on stock repurchase, and (j) gains or losses on lease termination. We believe that adjusting for such items helps management and investors better understand our operating activities. Adjusted EBITDA provides a core operational performance measurement that compares results without the need to adjust for federal, state and local taxes which have considerable variation between domestic jurisdictions. The results are, therefore, without consideration of financing alternatives of capital employed. We use adjusted EBITDA as one guideline to assess our unleveraged performance return on our investments. Adjusted EBITDA is also the target benchmark for our acquisitions of nightclubs.

We also use certain non-GAAP cash flow measures such as free cash flow. Free cash flow is derived from net cash provided by operating activities less maintenance capital expenditures. We use free cash flow as the baseline for the implementation of our capital allocation strategy.

Accounting Standards Update (ASU) 2023-07

The Company has adopted Accounting Standards Update (ASU) 2023-07, which requires enhanced reportable segment disclosures. As a result, certain prior-year segment information has been recast.

About RCI Hospitality Holdings, Inc. (NASDAQ:RICK) (X: @RCIHHinc)

With more than 60 locations, RCI Hospitality Holdings, Inc., through its subsidiaries, is the country's leading company in adult nightclubs and sports bars-restaurants. See all our brands at www.rcihospitality.com.

Forward-Looking Statements

This press release may contain forward-looking statements that involve a number of risks and uncertainties that could cause the Company's actual results to differ materially from those indicated, including, but not limited to, the risks and uncertainties associated with (i) operating and managing an adult entertainment or restaurant business, (ii) the business climates in cities where it operates, (iii) the success or lack thereof in launching and building the Company's businesses, (iv) cyber security, (v) conditions relevant to real estate transactions, (vi) our ability to regain and maintain compliance with the filing requirements of the U.S. Securities and Exchange Commission ("SEC") and the Nasdaq Stock Market, and (vii) numerous other factors such as laws governing the operation of adult entertainment or restaurant businesses, competition and dependence on key personnel. For more detailed discussion of such factors and certain risks and uncertainties, see RCI's annual report on Form 10-K for the year ended September 30, 2025, as well as its other filings with the SEC. The Company has no obligation to update or revise the forward-looking statements to reflect the occurrence of future events or circumstances.

RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share, number of shares, and percentage data)

	Three Months Ended										Six Months Ended
	March 31, 2026					March 31, 2025					March 31, 2026					March 31, 2025
	Amount			% of Revenue		Amount			% of Revenue		Amount			% of Revenue		Amount			% of Revenue
Revenues
Sales of alcoholic beverages	$	28,817		41.9	%	$	28,866		43.8	%	$	58,956		42.2	%	$	61,054		44.4	%
Sales of food and merchandise		9,539		13.9	%		9,411		14.3	%		19,505		14.0	%		19,517		14.2	%
Service revenues		25,448		37.0	%		22,912		34.8	%		51,259		36.7	%		47,093		34.3	%
Other		4,918		7.2	%		4,687		7.1	%		9,830		7.0	%		9,695		7.1	%
Total revenues		68,722		100.0	%		65,876		100.0	%		139,550		100.0	%		137,359		100.0	%
Operating expenses
Cost of goods sold
Alcoholic beverages sold		5,231		18.2	%		5,204		18.0	%		10,742		18.2	%		11,050		18.1	%
Food and merchandise sold		3,558		37.3	%		3,182		33.8	%		7,187		36.8	%		6,745		34.6	%
Service and other		16		0.1	%		25		0.1	%		117		0.2	%		97		0.2	%
Total cost of goods sold (exclusive of items shown below)		8,805		12.8	%		8,411		12.8	%		18,046		12.9	%		17,892		13.0	%
Salaries and wages		21,242		30.9	%		20,491		31.1	%		42,685		30.6	%		41,055		29.9	%
Selling, general and administrative		23,197		33.8	%		22,900		34.8	%		47,901		34.3	%		49,107		35.8	%
Depreciation and amortization		4,017		5.8	%		3,776		5.7	%		8,204		5.9	%		7,345		5.3	%
Impairments and other charges (gains), net		7,649		11.1	%		2,127		3.2	%		7,866		5.6	%		(117	)	(0.1	)%
Total operating expenses		64,910		94.5	%		57,705		87.6	%		124,702		89.4	%		115,282		83.9	%
Income from operations		3,812		5.5	%		8,171		12.4	%		14,848		10.6	%		22,077		16.1	%
Other income (expenses)
Interest expense		(4,515	)	(6.6	)%		(4,048	)	(6.1	)%		(8,865	)	(6.4	)%		(8,200	)	(6.0	)%
Interest income		82		0.1	%		139		0.2	%		181		0.1	%		318		0.2	%
Non-operating gains (losses), net		4		0.0	%		—		0.0	%		(9,881	)	(7.1	)%		979		0.7	%
Income (loss) before income taxes		(617	)	(0.9	)%		4,262		6.5	%		(3,717	)	(2.7	)%		15,174		11.0	%
Income tax expense (benefit)		(398	)	(0.6	)%		1,068		1.6	%		1,151		0.8	%		2,915		2.1	%
Net income (loss)		(219	)	(0.3	)%		3,194		4.8	%		(4,868	)	(3.5	)%		12,259		8.9	%
Net loss (income) attributable to noncontrolling interests		(107	)	(0.2	)%		37		0.1	%		(192	)	(0.1	)%		(4	)	0.0	%
Net income (loss) attributable to RCIHH common shareholders	$	(326	)	(0.5	)%	$	3,231		4.9	%	$	(5,060	)	(3.6	)%	$	12,255		8.9	%

Earnings (loss) per share
Basic and diluted	$	(0.04	)			$	0.36				$	(0.63	)			$	1.38

Weighted average shares used in computing earnings (loss) per share
Basic and diluted		7,741,522					8,861,854					8,021,747					8,891,638

RCI HOSPITALITY HOLDINGS, INC.
SEGMENT INFORMATION
(in thousands)

	Three Months Ended						Six Months Ended
	March 31, 2026			March 31, 2025			March 31, 2026			March 31, 2025
Revenues
Nightclubs	$	60,275		$	57,541		$	122,584		$	119,265
Bombshells		8,359			8,229			16,740			17,816
Other		88			106			226			278
	$	68,722		$	65,876		$	139,550		$	137,359

Income (loss) from operations
Nightclubs	$	10,758		$	14,532		$	29,480		$	35,385
Bombshells		(267	)		(245	)		(406	)		1,700
Other		(112	)		(171	)		(262	)		(274	)
Corporate		(6,567	)		(5,945	)		(13,964	)		(14,734	)
	$	3,812		$	8,171		$	14,848		$	22,077

RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)

	Three Months Ended						Six Months Ended
	March 31, 2026			March 31, 2025			March 31, 2026			March 31, 2025
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	(219	)	$	3,194		$	(4,868	)	$	12,259
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization		4,017			3,776			8,204			7,345
Impairment of assets		7,270			1,780			8,433			1,780
Deferred income tax benefit		(2,223	)		(853	)		(2,223	)		(1,242	)
Stock-based compensation		197			118			589			588
Loss (gain) on sale of businesses and assets		154			215			184			(1,248	)
Amortization of debt discount and issuance costs		128			227			265			290
Noncash lease expense		745			668			1,479			1,326
Gain on insurance		(46	)		—			(187	)		(1,150	)
Credit loss reversal on notes receivable		(86	)		—			(11	)		—
Premium on stock repurchase		—			—			9,885			—
Changes in operating assets and liabilities, net of business acquisitions:
Receivables		1,099			(659	)		745			1,714
Inventories		87			68			112			64
Prepaid expenses, other current, and other assets		1,613			68			(1,209	)		(530	)
Accounts payable, accrued, and other liabilities		(2,855	)		(55	)		(3,701	)		695
Net cash provided by operating activities		9,881			8,547			17,697			21,891
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of businesses and assets		1,075			956			1,675			1,085
Proceeds from insurance		46			—			184			1,150
Proceeds from notes receivable		57			76			107			147
Payments for property and equipment and intangible assets		(1,868	)		(2,854	)		(4,199	)		(8,608	)
Acquisition of businesses, net of cash acquired		—			(6,000	)		—			(6,000	)
Net cash used in investing activities		(690	)		(7,822	)		(2,233	)		(12,226	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt obligations		—			5,433			2,253			8,396
Payments on debt obligations		(7,833	)		(4,627	)		(12,785	)		(10,321	)
Payment of loan origination costs		—			(71	)		(40	)		(71	)
Purchase of treasury stock		(2,438	)		(2,896	)		(12,269	)		(6,114	)
Payment of dividends		(617	)		(619	)		(1,162	)		(1,242	)
Investment from noncontrolling partner		—			—			1,800			—
Payments to noncontrolling interests		(44	)		—			(80	)		—
Net cash used in financing activities		(10,932	)		(2,780	)		(22,283	)		(9,352	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(1,741	)		(2,055	)		(6,819	)		313
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		28,631			34,718			33,709			32,350
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	26,890		$	32,663		$	26,890		$	32,663

RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)

	March 31, 2026		September 30, 2025			March 31, 2025
ASSETS
Current assets
Cash and cash equivalents	$	26,890	$	33,709		$	32,663
Receivables, net		2,627		3,940			4,174
Inventories		4,745		4,857			4,645
Prepaid expenses and other current assets		6,284		4,968			4,071
Assets held for sale		—		3,394			—
Total current assets		40,546		50,868			45,553
Property and equipment, net		278,069		279,027			283,442
Operating lease right-of-use assets		24,311		25,781			24,905
Notes receivable, net of current portion		4,326		3,849			4,031
Goodwill		62,242		62,725			62,524
Intangibles, net		162,271		171,948			167,383
Other assets		2,627		2,737			1,918
Total assets	$	574,392	$	596,935		$	589,756

LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$	6,258	$	5,836		$	5,652
Accrued liabilities		30,242		32,607			18,161
Current portion of debt obligations, net		33,396		21,198			19,737
Current portion of operating lease liabilities		3,379		3,314			3,073
Total current liabilities		73,275		62,955			46,623
Deferred tax liability, net		19,466		21,689			21,451
Debt, net of current portion and debt discount and issuance costs		215,325		214,583			221,725
Operating lease liabilities, net of current portion		25,628		27,320			26,677
Other long-term liabilities		8,167		9,509			4,741
Total liabilities		341,861		336,056			321,217

Commitments and contingencies

Equity
Preferred stock		—		—			—
Common stock		77		87			88
Additional paid-in capital		26,880		50,908			55,925
Retained earnings		203,094		210,106			212,772
Total RCIHH stockholders' equity		230,051		261,101			268,785
Noncontrolling interests		2,480		(222	)		(246	)
Total equity		232,531		260,879			268,539
Total liabilities and equity	$	574,392	$	596,935		$	589,756

RCI HOSPITALITY HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES
(in thousands, except per share, number of shares, and percentage data)

	Three Months Ended March 31,						Six Months Ended March 31,
	2026			2025			2026			2025
Reconciliation of GAAP net income (loss) to Adjusted EBITDA
Net income (loss) attributable to RCIHH common stockholders	$	(326	)	$	3,231		$	(5,060	)	$	12,255
Income tax expense (benefit)		(398	)		1,068			1,151			2,915
Interest expense, net		4,433			3,909			8,684			7,882
Depreciation and amortization		4,017			3,776			8,204			7,345
Impairment of assets		7,270			1,780			8,433			1,780
Settlement of lawsuits, net of recoveries		207			127			(595	)		306
Stock-based compensation		197			118			589			588
Loss (gain) on sale of businesses and assets		218			220			251			(1,186	)
Gain on insurance		(46	)		—			(223	)		(1,017	)
Premium on stock repurchase		—			—			9,885			—
Gain on lease termination		—			—			—			(979	)
Adjusted EBITDA	$	15,572		$	14,229		$	31,319		$	29,889
Adjusted EBITDA as a percentage of revenues		22.7	%		21.6	%		22.4	%		21.8	%

Reconciliation of GAAP net income (loss) to non-GAAP net income
Net income (loss) attributable to RCIHH common stockholders	$	(326	)	$	3,231		$	(5,060	)	$	12,255
Amortization of intangibles		620			577			1,235			1,157
Impairment of assets		7,270			1,780			8,433			1,780
Settlement of lawsuits, net of recoveries		207			127			(595	)		306
Stock-based compensation		197			118			589			588
Loss (gain) on sale of businesses and assets		218			220			251			(1,186	)
Gain on insurance		(46	)		—			(223	)		(1,017	)
Premium on stock repurchase		—			—			9,885			—
Gain on lease termination		—			—			—			(979	)
Net income tax effect		(2,075	)		(263	)		(2,336	)		47
Non-GAAP net income	$	6,065		$	5,790		$	12,179		$	12,951

Reconciliation of GAAP diluted earnings (loss) per share to non-GAAP diluted earnings per share
Diluted shares		7,741,522			8,861,854			8,021,747			8,891,638
GAAP diluted earnings (loss) per share	$	(0.04	)	$	0.36		$	(0.63	)	$	1.38
Amortization of intangibles		0.08			0.07			0.15			0.13
Impairment of assets		0.94			0.20			1.05			0.20
Settlement of lawsuits, net of recoveries		0.03			0.01			(0.07	)		0.03
Stock-based compensation		0.03			0.01			0.07			0.07
Loss (gain) on sale of businesses and assets		0.03			0.02			0.03			(0.13	)
Gain on insurance		(0.01	)		—			(0.03	)		(0.11	)
Premium on stock repurchase		—			—			1.23			—
Gain on lease termination		—			—			—			(0.11	)
Net income tax effect		(0.27	)		(0.03	)		(0.29	)		0.01
Non-GAAP diluted earnings per share	$	0.78		$	0.65		$	1.52		$	1.46

	Three Months Ended March 31,						Six Months Ended March 31,
	2026			2025			2026			2025
Reconciliation of GAAP operating income to non-GAAP operating income
Income from operations	$	3,812		$	8,171		$	14,848		$	22,077
Amortization of intangibles		620			577			1,235			1,157
Impairment of assets		7,270			1,780			8,433			1,780
Settlement of lawsuits, net of recoveries		207			127			(595	)		306
Stock-based compensation		197			118			589			588
Loss (gain) on sale of businesses and assets		218			220			251			(1,186	)
Gain on insurance		(46	)		—			(223	)		(1,017	)
Non-GAAP operating income	$	12,278		$	10,993		$	24,538		$	23,705

Reconciliation of GAAP operating margin to non-GAAP operating margin
GAAP operating margin		5.5	%		12.4	%		10.6	%		16.1	%
Amortization of intangibles		0.9	%		0.9	%		0.9	%		0.8	%
Impairment of assets		10.6	%		2.7	%		6.0	%		1.3	%
Settlement of lawsuits, net of recoveries		0.3	%		0.2	%		(0.4	)%		0.2	%
Stock-based compensation		0.3	%		0.2	%		0.4	%		0.4	%
Loss (gain) on sale of businesses and assets		0.3	%		0.3	%		0.2	%		(0.9	)%
Gain on insurance		(0.1	)%		—	%		(0.2	)%		(0.7	)%
Non-GAAP operating margin		17.9	%		16.7	%		17.6	%		17.3	%

Reconciliation of net cash provided by operating activities to free cash flow
Net cash provided by operating activities	$	9,881		$	8,547		$	17,697		$	21,891
Less: Maintenance capital expenditures		1,462			1,611			2,598			2,887
Free cash flow	$	8,419		$	6,936		$	15,099		$	19,004
Free cash flow as a percentage of revenues		12.3	%		10.5	%		10.8	%		13.8	%

RCI HOSPITALITY HOLDINGS, INC.
NON-GAAP SEGMENT INFORMATION
($ in thousands)

	Three Months Ended March 31, 2026															Three Months Ended March 31, 2025
	Nightclubs			Bombshells			Other			Corporate			Total			Nightclubs			Bombshells			Other			Corporate			Total
Income (loss) from operations	$	10,758		$	(267	)	$	(112	)	$	(6,567	)	$	3,812		$	14,532		$	(245	)	$	(171	)	$	(5,945	)	$	8,171
Amortization of intangibles		618			—			—			2			620			572			1			—			4			577
Impairment of assets		7,270			—			—			—			7,270			1,780			—			—			—			1,780
Settlement of lawsuits, net of recoveries		142			65			—			—			207			97			30			—			—			127
Stock-based compensation		—			—			—			197			197			—			—			—			118			118
Loss (gain) on sale of businesses and assets		218			2			—			(2	)		218			93			129			—			(2	)		220
Gain on insurance		(46	)		—			—			—			(46	)		—			—			—			—			—
Non-GAAP operating income (loss)	$	18,960		$	(200	)	$	(112	)	$	(6,370	)	$	12,278		$	17,074		$	(85	)	$	(171	)	$	(5,825	)	$	10,993

GAAP operating margin		17.8	%		(3.2	)%		(127.3	)%		(9.6	)%		5.5	%		25.3	%		(3.0	)%		(161.3	)%		(9.0	)%		12.4	%
Non-GAAP operating margin		31.5	%		(2.4	)%		(127.3	)%		(9.3	)%		17.9	%		29.7	%		(1.0	)%		(161.3	)%		(8.8	)%		16.7	%

	Six Months Ended March 31, 2026															Six Months Ended March 31, 2025
	Nightclubs			Bombshells			Other			Corporate			Total			Nightclubs			Bombshells			Other			Corporate			Total
Income (loss) from operations	$	29,480		$	(406	)	$	(262	)	$	(13,964	)	$	14,848		$	35,385		$	1,700		$	(274	)	$	(14,734	)	$	22,077
Amortization of intangibles		1,231			—			—			4			1,235			1,146			2			—			9			1,157
Impairment of assets		8,433			—			—			—			8,433			1,780			—			—			—			1,780
Settlement of lawsuits, net of recoveries		(685	)		90			—			—			(595	)		276			30			—			—			306
Stock-based compensation		—			—			—			589			589			—			—			—			588			588
Loss (gain) on sale of businesses and assets		240			6			—			5			251			109			(1,201	)		—			(94	)		(1,186	)
Gain on insurance		(223	)		—			—			—			(223	)		(1,017	)		—			—			—			(1,017	)
Non-GAAP operating income (loss)	$	38,476		$	(310	)	$	(262	)	$	(13,366	)	$	24,538		$	37,679		$	531		$	(274	)	$	(14,231	)	$	23,705

GAAP operating margin		24.0	%		(2.4	)%		(115.9	)%		(10.0	)%		10.6	%		29.7	%		9.5	%		(98.6	)%		(10.7	)%		16.1	%
Non-GAAP operating margin		31.4	%		(1.9	)%		(115.9	)%		(9.6	)%		17.6	%		31.6	%		3.0	%		(98.6	)%		(10.4	)%		17.3	%

View source version on businesswire.com: https://www.businesswire.com/news/home/20260527992474/en/

Media & Investor Contacts

Gary Fishman and Michael Wichman at 212-883-0655 or gfishman@pondel.com and mwichman@pondel.com.

RCI Files 10-Q and Reports Results for 2Q26