RCI Hospitality Holdings, Inc. (RICK)

The past six months have seen several events impacting RCI Hospitality Holdings, Inc.'s stock price. As of October 9, 2025, the stock had declined nearly 49% year-to-date. In Q4 2025, RCI Hospitality Holdings reported a 3.1% decline in combined sales due to persistent economic uncertainty. In Q3 2025, the company's earnings per share missed forecasts, and revenue was below anticipated levels. In September 2025, five RCI executives were indicted in a bribery scheme, leading to class-action lawsuits. In Q2 2025, the Bombshells segment's revenue fell due to strategic divestitures, while the company also reported operational developments such as the reopening of Dallas Showclub and ongoing negotiations to sell underperforming properties. In March 2025, a director at RICK purchased 266 shares of the company's stock.

Demand for RCI Hospitality Holdings, Inc.'s nightclubs and sports-bar restaurants is influenced by holidays, weekends, and major events. The company noted benefits from a strong pro sports playoff line-up in Q3 2024. Broader economic conditions can also significantly impact demand, as indicated by the persistent economic uncertainty cited for the Q4 2025 sales decline. The company has also observed that during slower economic times, there can be an increase in the availability of quality entertainers.

RCI Hospitality Holdings, Inc. operates in the Consumer Discretionary sector, specifically in the Restaurants industry, offering live adult entertainment and dining experiences through its subsidiaries, which include over 60 nightclubs and sports-bar restaurants. The company's portfolio includes brands such as Rick's Cabaret, Jaguars Club, Tootsie's Cabaret, XTC Cabaret, Club Onyx, Hoops Cabaret and Sports Bar, Scarlett's Cabaret, Diamond Cabaret, Cheetah Gentlemen's Club, PT's Showclub, Flight Club, Studio 80, and Bombshells Restaurant & Bar. Additionally, RCI Hospitality Holdings has a media division that produces and distributes adult entertainment content.

RCI Hospitality Holdings, Inc. has a significant presence across various U.S. states, including Texas, New York, Florida, Arizona, North Carolina, South Carolina, Minnesota, Pennsylvania, Illinois, Colorado, Indiana, Kentucky, Louisiana, Maine, and Michigan. Bombshells Restaurant & Bar locations are found in cities such as Houston, Dallas, Austin, Spring, Pearland, Tomball, Katy, Arlington, and Stafford in Texas, and Denver, Colorado.

RCI Hospitality Holdings has historically received positive recognition within its industry, with its clubs featured on "Best Strip Club" lists and receiving awards such as "Club Chain of the Year" in 2019. Scarlett's Cabaret Miami was named Overall Club of the Year in 2024. However, the company's reputation has been significantly impacted by the indictment of five RCI executives in a bribery and tax fraud scheme, leading to class-action lawsuits alleging securities fraud.

RCI Hospitality Holdings, Inc. has a diverse ownership structure comprising institutional shareholders, company insiders, and retail investors. Approximately 49.05% of the company is owned by institutional shareholders, 49.34% by RCI Hospitality Holdings insiders, and 1.61% by retail investors. Major individual shareholders include Jeff Feinberg, who owns 19.54% of the company, and Eric Scott Langan, the President and CEO, who owns 11.33% of the company. Key institutional investors include ADW Capital Management, LLC, BlackRock, Inc., and Vanguard Group Inc.