RCI Files 10-Q, Reports Results for 3Q26, Hosts X Spaces Call at 4:30 PM ET Today

About this update from Rci Hospitality Holdings, Inc.

RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today filed its Form 10-Q and reported results for the fiscal 2026 third quarter ended June 30, 2026. Summary Financials (in millions, except EPS) 3Q26 3Q25 9M26 9M25 Total revenues $73.9 $71.1 $213.5 $208.5 EPS $0.83 $0.46 $0.16 $1.84 Non-GAAP EPS 1 $0.90 $0.77 $2.41 $2.23 Impairments and other charges, net $0.0 $2.3 $7.9 $2.2 Net cash provided by operating activities $11.3 $13.8 $29.0 $35.7 Free cash flow 1 $10.6 $13.3 $25.7 $32.3 Net income attributable to RCIHH common stockholders $6.4 $4.1 $1.3 $16.3 Adjusted EBITDA 1 $16.9 $15.3 $48.2 $45.2 Weighted average shares used in computing EPS – basic and diluted 7.65 8.79 7.90 8.86 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 another quarter of improved performance in many key metrics. Sales, EPS, non-GAAP EPS, net income attributable to RCIHH common stockholders, and adjusted EBITDA all increased, while we used our strong cash position to continue to buy back shares and reduce debt." “Bombshells' performance was driven by new locations and same-store sales growth of 4.7%, while increased activity related to high-profile professional basketball and soccer events benefited Nightclubs as well as Bombshells. These factors helped offset cautious discretionary spending earlier in 3Q26 due to geopolitical uncertainty and its impact on inflation. Results also reflected lower impairment and insurance costs.” X Spaces Conference Call at 4:30 PM ET Today Call link: https://x.com/i/spaces/1RJjppmBLPVKw/ (X log in required). Presentation link: https://www.rcihospitality.com/investor-relations/ . To ask questions: Participants must join the X Space using a mobile device. To listen only: Participants can access the X Space from a computer. There will be no other types of telephone or webcast access. 3Q26 Results (Comparisons are to year-ago periods unless indicated otherwise) Nightclubs segment: Revenues of $63.0 million increased by 1.0%. Four newly acquired, opened and reformatted clubs generated $4.0 million sales and the 52 clubs in same-store sales produced $58.5 million, more than offsetting $1.2 million in sales from four clubs closed subsequent to the year-ago quarter. 2 By revenue type, service increased 7.6%; food, merchandise and other declined 1.4%; and alcoholic beverages declined 4.2%. Impairments and other charges, net were immaterial compared to $2.3 million. Operating income was $19.6 million compared to $17.9 million or 31.2% of segment revenues compared to 28.6%. Non-GAAP operating income, which excludes impairments and other net charges, was $20.2 million compared to $20.8 million or 32.1% of segment revenues compared to 33.3%. Bombshells segment: Revenues of $10.8 million increased 25.4%. Three new locations generated $2.6 million in sales and the nine locations in same-store sales produced $8.2 million. The new locations are Denver, CO (opened January 2025), Lubbock, TX (July 2025), and Rowlett, TX (June 2026). 2 By revenue type, alcoholic beverages increased 33.6% and food and other increased 16.6%. Operating income was $759,000 compared to $67,000 or 7.0% of segment revenues compared to 0.8%. Non-GAAP operating income, which excludes other net charges, was $801,000 compared to $80,000 or 7.4% of segment revenues compared to 0.9%. Corporate segment: Expenses totaled $7.3 million compared to $9.1 million or 9.9% of total revenues compared to 12.9%. Non-GAAP expenses totaled $7.3 million compared to $8.7 million or 9.9% of total revenues compared to 12.3%. GAAP and non-GAAP expenses reflected lower insurance expense compared to the prior-year period. Impairments and other charges, net within consolidated operations were insignificant compared to $2.3 million. Income tax was an expense of $2.1 million compared to $0.7 million or an effective rate of 24.7% compared to 15.3%. Weighted average shares outstanding of 7.65 million declined 13.0% due to share buybacks. Debt of $240.1 million at June 30, 2026 declined $8.6 million or 3.5% from $248.7 million at March 31, 2026, primarily reflecting debt paydowns. Compared to a year ago, debt declined $1.2 million or 0.5%. 2 See our July 9, 2026 news release on 3Q26 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 23.2% and 17.4% effective tax rate of the pre-tax non-GAAP income before taxes for the nine months ended June 30, 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. 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, sports bar 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 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, sports bar 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. RCI HOSPITALITY HOLDINGS, INC. CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share, number of shares, and percentage data)                                   Three Months Ended   Nine Months Ended   June 30, 2026   June 30, 2025   June 30, 2026   June 30, 2025   Amount   % of Revenue   Amount   % of Revenue   Amount   % of Revenue   Amount   % of Revenue Revenues                               Sales of alcoholic beverages $ 31,159     42.1 %   $ 30,780     43.3 %   $ 90,115     42.2 %   $ 91,834     44.0 % Sales of food and merchandise   10,690     14.5 %     10,037     14.1 %     30,195     14.1 %     29,554     14.2 % Service revenues   27,079     36.6 %     25,169     35.4 %     78,338     36.7 %     72,262     34.7 % Other   5,011     6.8 %     5,159     7.3 %     14,841     7.0 %     14,854     7.1 % Total revenues   73,939     100.0 %     71,145     100.0 %     213,489     100.0 %     208,504     100.0 % Operating expenses                               Cost of goods sold                               Alcoholic beverages sold   5,655     18.1 %     5,580     18.1 %     16,397     18.2 %     16,630     18.1 % Food and merchandise sold   3,984     37.3 %     3,519     35.1 %     11,171     37.0 %     10,264     34.7 % Service and other   44     0.1 %     36     0.1 %     161     0.2 %     133     0.2 % Total cost of goods sold (exclusive of items shown below)   9,683     13.1 %     9,135     12.8 %     27,729     13.0 %     27,027     13.0 % Salaries and wages   21,860     29.6 %     20,916     29.4 %     64,545     30.2 %     61,971     29.7 % Selling, general and administrative   25,372     34.3 %     26,140     36.7 %     73,273     34.3 %     75,247     36.1 % Depreciation and amortization   4,030     5.5 %     3,892     5.5 %     12,234     5.7 %     11,237     5.4 % Impairments and other charges, net   26     0.0 %     2,349     3.3 %     7,892     3.7 %     2,232     1.1 % Total operating expenses   60,971     82.5 %     62,432     87.8 %     185,673     87.0 %     177,714     85.2 % Income from operations   12,968     17.5 %     8,713     12.2 %     27,816     13.0 %     30,790     14.8 % Other income (expenses)                               Interest expense   (4,454 )   (6.0 )%     (4,032 )   (5.7 )%     (13,319 )   (6.2 )%     (12,232 )   (5.9 )% Interest income   86     0.1 %     117     0.2 %     267     0.1 %     435     0.2 % Non-operating gains (losses), net   31     0.0 %     (5 )   0.0 %     (9,850 )   (4.6 )%     974     0.5 % Income before income taxes   8,631     11.7 %     4,793     6.7 %     4,914     2.3 %     19,967     9.6 % Income tax expense   2,130     2.9 %     733     1.0 %     3,281     1.5 %     3,648     1.7 % Net income   6,501     8.8 %     4,060     5.7 %     1,633     0.8 %     16,319     7.8 % Net income attributable to noncontrolling interests   (150 )   (0.2 )%     (2 )   0.0 %     (342 )   (0.2 )%     (6 )   0.0 % Net income attributable to RCIHH common shareholders $ 6,351     8.6 %   $ 4,058     5.7 %   $ 1,291     0.6 %   $ 16,313     7.8 %                                 Earnings per share                               Basic and diluted $ 0.83         $ 0.46         $ 0.16         $ 1.84                                       Weighted average shares used in computing earnings per share                               Basic and diluted   7,653,000           8,793,809           7,898,831           8,859,028       RCI HOSPITALITY HOLDINGS, INC. SEGMENT INFORMATION (in thousands)                   Three Months Ended   Nine Months Ended   June 30, 2026   June 30, 2025   June 30, 2026   June 30, 2025 Revenues               Nightclubs $ 62,981     $ 62,336     $ 185,565     $ 181,601   Bombshells   10,793       8,609       27,533       26,425   Other   165       200       391       478     $ 73,939     $ 71,145     $ 213,489     $ 208,504                   Income (loss) from operations               Nightclubs $ 19,635     $ 17,859     $ 49,115     $ 53,244   Bombshells   759       67       353       1,767   Other   (83 )     (70 )     (345 )     (344 ) Corporate   (7,343 )     (9,143 )     (21,307 )     (23,877 )   $ 12,968     $ 8,713     $ 27,816     $ 30,790   RCI HOSPITALITY HOLDINGS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands)                   Three Months Ended   Nine Months Ended   June 30, 2026   June 30, 2025   June 30, 2026   June 30, 2025 CASH FLOWS FROM OPERATING ACTIVITIES               Net income $ 6,501     $ 4,060     $ 1,633     $ 16,319   Adjustments to reconcile net income to net cash provided by operating activities:               Depreciation and amortization   4,030       3,892       12,234       11,237   Impairment of assets   —       —       8,433       1,780   Deferred income tax benefit   —       (958 )     (2,223 )     (2,200 ) Stock-based compensation   —       392       589       980   Loss (gain) on sale of businesses and assets   108       22       292       (1,226 ) Amortization of debt discount and issuance costs   112       130       377       420   Noncash lease expense   754       676       2,233       2,002   Gain on insurance   (107 )     (729 )     (294 )     (1,879 ) Credit loss expense (reversal) on notes receivable   —       27       (11 )     27   Premium on stock repurchase   —       —       9,885       —   Changes in operating assets and liabilities, net of business acquisitions:               Receivables   (280 )     (443 )     465       1,271   Inventories   (437 )     26       (325 )     90   Prepaid expenses, other current, and other assets   2,300       930       1,091       400   Accounts payable, accrued, and other liabilities   (1,703 )     5,768       (5,404 )     6,463   Net cash provided by operating activities   11,278       13,793       28,975       35,684   CASH FLOWS FROM INVESTING ACTIVITIES               Proceeds from sale of businesses and assets   1       1       1,676       1,086   Proceeds from insurance   107       743       291       1,893   Proceeds from notes receivable   63       76       170       223   Payments for property and equipment and intangible assets   (1,525 )     (3,681 )     (5,724 )     (12,289 ) Acquisition of businesses, net of cash acquired   —       (7,000 )     —       (13,000 ) Net cash used in investing activities   (1,354 )     (9,861 )     (3,587 )     (22,087 ) CASH FLOWS FROM FINANCING ACTIVITIES               Proceeds from debt obligations   200       779       2,453       9,175   Payments on debt obligations   (8,960 )     (4,110 )     (21,745 )     (14,431 ) Payment of loan origination costs   13       (9 )     (27 )     (80 ) Purchase of treasury stock   (1,026 )     (3,044 )     (13,295 )     (9,158 ) Payment of dividends   (611 )     (614 )     (1,773 )     (1,856 ) Investment from noncontrolling partner   —       —       1,800       —   Payments to noncontrolling interests   (26 )     —       (106 )     —   Net cash used in financing activities   (10,410 )     (6,998 )     (32,693 )     (16,350 ) NET DECREASE IN CASH AND CASH EQUIVALENTS   (486 )     (3,066 )     (7,305 )     (2,753 ) CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD   26,890       32,663       33,709       32,350   CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 26,404     $ 29,597     $ 26,404     $ 29,597   RCI HOSPITALITY HOLDINGS, INC. CONSOLIDATED BALANCE SHEETS (in thousands)               June 30, 2026   September 30, 2025   June 30, 2025 ASSETS           Current assets           Cash and cash equivalents $ 26,404   $ 33,709     $ 29,347   Receivables, net   2,871     3,940       4,606   Inventories   5,182     4,857       4,746   Prepaid expenses and other current assets   4,060     4,968       3,214   Assets held for sale   —     3,394       3,394   Total current assets   38,517     50,868       45,307   Property and equipment, net   276,856     279,027       282,246   Operating lease right-of-use assets   23,560     25,781       26,641   Notes receivable, net of current portion   4,285     3,849       3,939   Goodwill   62,242     62,725       70,236   Intangibles, net   161,650     171,948       166,942   Other assets   2,550     2,737       2,101   Total assets $ 569,660   $ 596,935     $ 597,412               LIABILITIES AND EQUITY           Current liabilities           Accounts payable $ 6,457   $ 5,836     $ 5,406   Accrued liabilities   30,004     32,607       21,764   Current portion of debt obligations, net   29,088     21,198       18,623   Current portion of operating lease liabilities   3,370     3,314       3,249   Total current liabilities   68,919     62,955       49,042   Deferred tax liability, net   19,466     21,689       20,493   Debt, net of current portion and debt discount and issuance costs   210,997     214,583       222,638   Operating lease liabilities, net of current portion   24,801     27,320       28,171   Other long-term liabilities   8,119     9,509       7,765   Total liabilities   332,302     336,056       328,109               Commitments and contingencies                       Equity           Preferred stock   —     —       —   Common stock   76     87       87   Additional paid-in capital   25,844     50,908       53,244   Retained earnings   208,834     210,106       216,216   Total RCIHH stockholders' equity   234,754     261,101       269,547   Noncontrolling interests   2,604     (222 )     (244 ) Total equity   237,358     260,879       269,303   Total liabilities and equity $ 569,660   $ 596,935     $ 597,412   RCI HOSPITALITY HOLDINGS, INC. NON-GAAP FINANCIAL MEASURES (in thousands, except per share, number of shares, and percentage data)                   Three Months Ended June 30,   Nine Months Ended June 30,     2026       2025       2026       2025   Reconciliation of GAAP net income to Adjusted EBITDA               Net income attributable to RCIHH common stockholders $ 6,351     $ 4,058     $ 1,291     $ 16,313   Income tax expense   2,130       733       3,281       3,648   Interest expense, net   4,368       3,915       13,052       11,797   Depreciation and amortization   4,030       3,892       12,234       11,237   Impairment of assets   —       —       8,433       1,780   Settlement of lawsuits, net of recoveries   92       3,281       (503 )     3,587   Stock-based compensation   —       392       589       980   Loss (gain) on sale of businesses and assets   41       202       292       (984 ) Gain on insurance   (107 )     (1,134 )     (330 )     (2,151 ) Premium on stock repurchase   —       —       9,885       —   Gain on lease termination   —       —       —       (979 ) Adjusted EBITDA $ 16,905     $ 15,339     $ 48,224     $ 45,228   Adjusted EBITDA as a percentage of revenues   22.9 %     21.6 %     22.6 %     21.7 %                 Reconciliation of GAAP net income to non-GAAP net income               Net income attributable to RCIHH common stockholders $ 6,351     $ 4,058     $ 1,291     $ 16,313   Amortization of intangibles   618       576       1,853       1,733   Impairment of assets   —       —       8,433       1,780   Settlement of lawsuits, net of recoveries   92       3,281       (503 )     3,587   Stock-based compensation   —       392       589       980   Loss (gain) on sale of businesses and assets   41       202       292       (984 ) Gain on insurance   (107 )     (1,134 )     (330 )     (2,151 ) Premium on stock repurchase   —       —       9,885       —   Gain on lease termination   —       —       —       (979 ) Net income tax effect   (130 )     (562 )     (2,466 )     (515 ) Non-GAAP net income $ 6,865     $ 6,813     $ 19,044     $ 19,764                   Reconciliation of GAAP diluted earnings per share to non-GAAP diluted earnings per share Diluted shares   7,653,000       8,793,809       7,898,831       8,859,028   GAAP diluted earnings per share $ 0.83     $ 0.46     $ 0.16     $ 1.84   Amortization of intangibles   0.08       0.07       0.23       0.20   Impairment of assets   —       —       1.07       0.20   Settlement of lawsuits, net of recoveries   0.01       0.37       (0.06 )     0.40   Stock-based compensation   —       0.04       0.07       0.11   Loss (gain) on sale of businesses and assets   0.01       0.02       0.04       (0.11 ) Gain on insurance   (0.01 )     (0.13 )     (0.04 )     (0.24 ) Premium on stock repurchase   —       —       1.25       —   Gain on lease termination   —       —       —       (0.11 ) Net income tax effect   (0.02 )     (0.06 )     (0.31 )     (0.06 ) Non-GAAP diluted earnings per share $ 0.90     $ 0.77     $ 2.41     $ 2.23       Three Months Ended June 30,   Nine Months Ended June 30,     2026       2025       2026       2025   Reconciliation of GAAP operating income to non-GAAP operating income               Income from operations $ 12,968     $ 8,713     $ 27,816     $ 30,790   Amortization of intangibles   618       576       1,853       1,733   Impairment of assets   —       —       8,433       1,780   Settlement of lawsuits, net of recoveries   92       3,281       (503 )     3,587   Stock-based compensation   —       392       589       980   Loss (gain) on sale of businesses and assets   41       202       292       (984 ) Gain on insurance   (107 )     (1,134 )     (330 )     (2,151 ) Non-GAAP operating income $ 13,612     $ 12,030     $ 38,150     $ 35,735                   Reconciliation of GAAP operating margin to non-GAAP operating margin               GAAP operating margin   17.5 %     12.2 %     13.0 %     14.8 % Amortization of intangibles   0.8 %     0.8 %     0.9 %     0.8 % Impairment of assets   — %     0.0 %     4.0 %     0.9 % Settlement of lawsuits, net of recoveries   0.1 %     4.6 %     (0.2 )%     1.7 % Stock-based compensation   0.0 %     0.6 %     0.3 %     0.5 % Loss (gain) on sale of businesses and assets   0.1 %     0.3 %     0.1 %     (0.5 )% Gain on insurance   (0.1 )%     (1.6 )%     (0.2 )%     (1.0 )% Non-GAAP operating margin   18.4 %     16.9 %     17.9 %     17.1 %                 Reconciliation of net cash provided by operating activities to free cash flow               Net cash provided by operating activities $ 11,278     $ 13,793     $ 28,975     $ 35,684   Less: Maintenance capital expenditures   640       454       3,238       3,341   Free cash flow $ 10,638     $ 13,339     $ 25,737     $ 32,343   Free cash flow as a percentage of revenues   14.4 %     18.7 %     12.1 %     15.5 % RCI HOSPITALITY HOLDINGS, INC. NON-GAAP SEGMENT INFORMATION ($ in thousands)                                           Three Months Ended June 30, 2026   Three Months Ended June 30, 2025   Nightclubs   Bombshells   Other   Corporate   Total   Nightclubs   Bombshells   Other   Corporate   Total Income (loss) from operations $ 19,635     $ 759     $ (83 )   $ (7,343 )   $ 12,968     $ 17,859     $ 67     $ (70 )   $ (9,143 )   $ 8,713   Amortization of intangibles   617       —       —       1       618       572       1       —       3       576   Settlement of lawsuits, net of recoveries   67       25       —       —       92       3,281       —       —       —       3,281   Stock-based compensation   —       —       —       —       —       —       —       —       392       392   Loss (gain) on sale of businesses and assets   7       17       —       17       41       191       12       —       (1 )     202   Gain on insurance   (105 )     —       —       (2 )     (107 )     (1,134 )     —       —       —       (1,134 ) Non-GAAP operating income (loss) $ 20,221     $ 801     $ (83 )   $ (7,327 )   $ 13,612     $ 20,769     $ 80     $ (70 )   $ (8,749 )   $ 12,030                                           GAAP operating margin   31.2 %     7.0 %     (50.3 )%     (9.9 )%     17.5 %     28.6 %     0.8 %     (35.0 )%     (12.9 )%     12.2 % Non-GAAP operating margin   32.1 %     7.4 %     (50.3 )%     (9.9 )%     18.4 %     33.3 %     0.9 %     (35.0 )%     (12.3 )%     16.9 %                                           Nine Months Ended June 30, 2026   Nine Months Ended June 30, 2025   Nightclubs   Bombshells   Other   Corporate   Total   Nightclubs   Bombshells   Other   Corporate   Total Income (loss) from operations $ 49,115     $ 353     $ (345 )   $ (21,307 )   $ 27,816     $ 53,244     $ 1,767     $ (344 )   $ (23,877 )   $ 30,790   Amortization of intangibles   1,848       —       —       5       1,853       1,718       3       —       12       1,733   Impairment of assets   8,433       —       —       —       8,433       1,780       —       —       —       1,780   Settlement of lawsuits, net of recoveries   (618 )     115       —       —       (503 )     3,557       30       —       —       3,587   Stock-based compensation   —       —       —       589       589       —       —       —       980       980   Loss (gain) on sale of businesses and assets   247       23       —       22       292       300       (1,189 )     —       (95 )     (984 ) Gain on insurance   (328 )     —       —       (2 )     (330 )     (2,151 )     —       —       —       (2,151 ) Non-GAAP operating income (loss) $ 58,697     $ 491     $ (345 )   $ (20,693 )   $ 38,150     $ 58,448     $ 611     $ (344 )   $ (22,980 )   $ 35,735                                           GAAP operating margin   26.5 %     1.3 %     (88.2 )%     (10.0 )%     13.0 %     29.3 %     6.7 %     (72.0 )%     (11.5 )%     14.8 % Non-GAAP operating margin   31.6 %     1.8 %     (88.2 )%     (9.7 )%     17.9 %     32.2 %     2.3 %     (72.0 )%     (11.0 )%     17.1 %   View source version on businesswire.com: https://www.businesswire.com/news/home/20260805529903/en/

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