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what it is
Rci Hospitality runs adult-entertainment clubs, Bombshells sports bars, and a niche media business tied to the nightclub industry.
how it gets paid
Last year Rci Hospitality made $296M in revenue. Nightclub service fees was the main engine at $136.0M, or 46% of sales.
why it's growing
Revenue grew 303.6% last year. EDGAR data shows Revenue up 193% vs. prior year and EPS up 300% vs. prior year.
what just happened
Revenue hit $209M and EPS reached $1.84, but that giant growth rate comes from an unusually easy comparison.
At a glance
C++ balance sheet — some cracks in the foundation
20/100 earnings predictability — expect surprises
9.3x trailing p/e — the market's not buying it — or you found a deal
1.5% dividend yield — cash in your pocket every quarter
7.3% return on capital — nothing to write home about
xvary composite: 39/100 — weak
What they do
Rci Hospitality runs adult-entertainment clubs, Bombshells sports bars, and a niche media business tied to the nightclub industry.
This is a strange business with real local scarcity. RCI runs 69 establishments across 13 states, and many markets do not hand out new adult-club licenses easily. That gives you a permit moat (regulatory moat → hard-to-replace licenses → fewer new rivals) while the company uses those cash flows to keep buying back stock and paying a 1.5% dividend.
How they make money
$296M
annual revenue · their business grew +303.6% last year
Nightclub service fees
$136.0M
Food and merchandise
$61.8M
Alcoholic beverages
$57.2M
Bombshells restaurants and bars
$36.0M
Business communications
$5.0M
The products that matter
venue operations
Nightclubs & Restaurants
$70.3M · latest reported sales line
this line came in at $70.3M in the latest quarter and slipped 0.9% from last year. if this does not stabilize, the rest of the story gets harder to underwrite.
core demand check
beverage sales inside venues
Alcoholic Beverages
$57.2M
this line produced $57.2M in the reported view. in human-speak: drinks are traffic monetization with nowhere to hide. people either showed up and spent, or they did not.
traffic monetization
broad catch-all revenue bucket
Other Operations
$168.5M · largest line shown here
at $168.5M, this is the largest piece of the revenue view on the page. when your biggest bucket is broad and filings are delayed, disclosure quality becomes part of the investment case.
disclosure check
Key numbers
9.3x
trailing p/e
P/E → price-to-earnings → so what: you are paying $9.30 for each $1 of earnings, which is cheap if profits hold.
$296M
fy2024 sales
That is the current size of the business, and it matters because debt of $251 million is huge next to it.
6.4%
operating margin
Operating margin → profit after core costs → so what: the business does not have much room for mistakes.
7.3%
return on capital
Return on capital → profit earned on money invested → so what: this is decent, not elite, for a company with 60% debt in its capital mix.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 4 — safer than 20% of stocks
- price stability 40 / 100
- long-term debt $251M (60% of capital)
C++ — balance sheet grade and long-term debt are flagged. this stock carries more risk than average.
Total return vs. market
Return history isn't available for RICK right now.
source: institutional data · return history unavailable
What just happened
beat estimates
Revenue hit $209M and EPS reached $1.84, but that giant growth rate comes from an unusually easy comparison.
EDGAR data shows latest-quarter revenue up 193% vs. prior year and EPS up 300% vs. prior year. Value Line's quarterly FY2024 run rate was much lower, with EPS at $0.77 in the September quarter.
$74M
revenue
$1.84
eps
n/a
n/a
the number that mattered
$209 million matters because it is about 71% of the full-year $296 million revenue base, which tells you the reported comparison was anything but normal.
source: company earnings report, 2026
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What could go wrong
RICK does not have one clean risk. It has a stack: delayed filings, legal notices, leadership change, and a core sales line that just went the wrong way. In a $167M company, those issues do not stay separate for long.
high
Nasdaq deadline risk
The company received notice for delayed 10-K and 10-Q filings and has an extension through June 29, 2026.
If that date passes without current filings, the stock stops being a cheap controversy and starts looking like a credibility failure.
high
securities litigation overhang
This snapshot flags five high-severity legal headlines, including multiple class-action and shareholder investigation notices.
Even if the eventual dollars are manageable, management attention is not free. Cleanup work spreads thinner when lawyers join the operating plan.
high
debt plus soft demand
Long-term debt is $251M, or 60% of capital, while the latest sales print of $70.3M was down 0.9% from last year.
Debt is easier to carry when venue traffic is healthy. This quarter did not give you that comfort. If operating softness lingers, the discount stays earned.
$251M of long-term debt, five legal headlines, and a June 29, 2026 compliance deadline mean this stock needs proof before it gets the benefit of the doubt.
source: institutional data · regulatory filings · risk analysis
Pay attention to
compliance
June 29, 2026 Nasdaq extension
This is the date that matters most. If filings are current by then, the stock gets a chance to trade on operations again.
operations
core sales trend
The latest $70.3M sales print was down 0.9% from last year. You want the next read to stabilize or turn positive.
legal
lawsuit count and scope
Five high-severity legal headlines already crowd the tape. More notices would keep the valuation discount intact.
capital allocation
buybacks versus debt load
821,000 shares were repurchased and another $5M was authorized. That only helps if debt stops being the bigger headline.
Analyst rankings
earnings predictability
20 / 100
in human-speak, analysts do not trust a smooth earnings path here. Expect volatility, revisions, and messy quarter-to-quarter optics.
risk rank
4
Safer than 20% of stocks. Translation: most public companies screen as lower-risk than this one right now.
price stability
40 / 100
This stock does not trade like a defensive name. When confidence breaks in a small cap, the chart usually reacts before the filing catches up.
source: institutional data
Institutional activity
institutional ownership data for RICK is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$24
current price
n/a
target midpoint · n/a from current
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