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RCI Files 10-Q and Reports Results for 2Q26
HOUSTON—May 28, 2026—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.2 By revenue type, alcoholic beverages increased 4.0% and food was level with 2Q25.
1

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%.
2 See 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.
2

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.
Media & Investor Contacts
Gary Fishman and Michael Wichman at 212-883-0655 or gfishman@pondel.com and mwichman@pondel.com.
3

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 

4

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 

5

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 
6

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 


7

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 
8

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 
%
9

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 
%
10