RCI Hospitality reports mixed Q4 results amid club closures

RCI Hospitality Holdings Inc. (NASDAQ: RICK) reported combined club and restaurant sales of $69.8 million for the fourth quarter ended September 30, 2025, representing a 3.1% decline from the prior year period, according to the company's preliminary sales update.

The Houston-based operator of adult nightclubs and sports bar restaurants posted nightclub sales of $60.5 million, up 0.4% from the fourth quarter of 2024, while same-store sales at nightclub locations declined 4.4%. The company attributed the modest total sales growth to acquisitions and club reformatting that partially offset same-store declines and club closures.

Bombshells restaurant sales fell 21.2% to $9.4 million compared to the prior year quarter, with same-store sales declining 19.5%. The restaurant segment was affected by the divestiture of five underperforming locations in the fourth quarter of 2024 and first quarter of 2025.

For the full fiscal year 2025, nightclub sales totaled $240.8 million, down 0.6% from fiscal 2024, while Bombshells sales dropped 29.2% to $35.8 million. Combined annual sales reached $276.6 million, a 5.5% decrease from the previous year.

The company completed four nightclub acquisitions during fiscal 2025, including Flight Club in Detroit, Platinum West in West Columbia, South Carolina, Platinum Plus in Allentown, Pennsylvania, and Rick's Cabaret & Steakhouse in Central City, Colorado. These acquisitions contributed $3.2 million in fourth-quarter sales.

RCI announced that Dallas Showclub reopened as XTC 2.0, a BYOB concept. The company also received zoning approval to reconstruct Baby Dolls Fort Worth, which was damaged by fire in July 2024, and is progressing on construction plans for another Baby Dolls location in West Fort Worth.

The sales figures exclude non-core operations and are subject to final closing adjustments. Complete fourth-quarter and fiscal year 2025 financial results will be included in the company's annual Form 10-K filing.

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