The core business (non-GAAP) is improving with higher revenue, cash flow, and adjusted EBITDA, but recurring large impairment charges obscure the picture. Watch for clarity on impairment drivers and whether the share buyback program can sustain EPS growth without further debt accumulation.
Price Chart
Executive Summary
RCI Hospitality reported fiscal Q2 2026 results with total revenue of $68.7M (+4.3% YoY) and GAAP EPS of -$0.04, weighed down by $7.6M in impairment charges. Non-GAAP EPS improved to $0.78 from $0.65 YoY, while operating cash flow rose to $9.9M from $8.5M. The Nightclubs segment grew revenue 4.8% YoY, but GAAP operating margin compressed to 5.5% from 12.4% due to impairments.
Key Financial Metrics
Key Facts
- Q2 2026 total revenue $68.7M vs $65.9M YoY (+4.3%)
- GAAP EPS -$0.04 vs $0.36 YoY, driven by $7.6M in impairment charges
- Non-GAAP EPS $0.78 vs $0.65 YoY (+20%)
- Nightclubs segment revenue $60.3M (+4.8% YoY); same-store sales nearly flat
- Bombshells segment revenue $8.4M (+1.6% YoY); same-store sales declined
- Adjusted EBITDA $15.6M vs $14.2M YoY (+9.9%)
- Operating cash flow $9.9M vs $8.5M YoY (+16.5%)
- Free cash flow $8.4M vs $6.9M YoY (+21.7%)
- Debt $248.7M, down 3% from Q1 2026; up 3% YoY
- Share count reduced 12.6% YoY via buybacks; ~7.64M shares outstanding as of May 22, 2026
Financial Impact
Non-GAAP EPS beat prior year by $0.13 (+20%), but GAAP loss due to $7.6M impairment. Operating cash flow improved $1.4M YoY.
Risk Factors
- Recurring impairment charges ($7.6M in Q2, $7.3M in Q1) may signal asset quality issues
- Bombshells segment remains unprofitable on both GAAP and non-GAAP basis
- Debt of $248.7M vs market cap of ~$192M implies elevated leverage
- Same-store sales nearly flat in Nightclubs and declining in Bombshells
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 5 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-038799 |
| Document: 0001628280-26-038799-index-headers.html | 0001628280-26-038799 |
| Document: 0001628280-26-038799-index.html | 0001628280-26-038799 |
| Document: 0001628280-26-038799.txt | 0001628280-26-038799 |
| 8-K Data (Synthetic) | 0001628280-26-038799 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 8, 2026 18d ago | 8-K | $26.68 $26.07 | ▼ −2.29% | ▼ −2.89% | $27.16 (+1.80%) |
Jun 1, 2026 21w ago | 8-K | $25.50 $25.07 | ▼ −1.69% | ▼ −1.83% | $27.16 (+6.51%) |
May 28, 2026 21w ago | 8-K | $25.37 $25.50 | ▲ +0.51% | ▲ +0.25% | $27.16 (+7.06%) |
May 22, 2026 22w ago | 8-K | $24.11 $24.53 | ▼ −1.74% | ▼ −1.73% | $27.16 (−12.65%) |
May 7, 2026 24w ago | 8-K | $25.35 $24.31 | ▲ +4.10% | ▲ +4.33% | $27.16 (−7.14%) |
Apr 9, 2026 28w ago | 8-K | $24.28 $24.17 | ▲ +0.45% | ▲ +0.39% | $27.16 (−11.86%) |
US Market Status
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