Houston, Texas, January 14, 2026
RCI Hospitality Holdings, Inc. reported mixed results for the fiscal first quarter, with total sales at $70.3 million, showing a slight decline. However, the Nightclubs segment experienced a 0.9% sales increase thanks to new club openings. In contrast, Bombshells restaurants faced revenue challenges, reflecting operational adjustments in a volatile market. Amidst these changes, RCI remains committed to enhancing performance through strategic initiatives, including new locations and focused capital allocation, while maintaining a consistent dividend for shareholders.
RCI Hospitality Holdings Reports Mixed Q1 Performance
Sales Decline Offset by Growth in Club Service Revenues
Houston, Texas – RCI Hospitality Holdings, Inc. (Nasdaq: RICK) has announced its financial results for the fiscal first quarter ended December 31, 2025, revealing a total club and restaurant sales figure of $70.3 million. This signifies a modest 0.9% decrease compared to the same quarter last year. The decline is largely attributed to a 5.8% drop in same-store sales within the Nightclubs segment and a significant 21.9% decrease in the Bombshells restaurant segment. Even with these challenges, there was notable growth in high-margin club service revenues year-over-year, highlighting the resilience of leadership and strategic adjustments in RCI’s operations.
Nightclubs Segment Performance
The Nightclubs segment itself delivered a performance that, despite overall dip in sales, shows promising growth signs, with total sales reaching $61.9 million, a 0.9% increase from the previous year. This progress is attributed to the addition of five new clubs, which contributed $4.9 million in sales. Out of the 52 clubs included in same-store sales, these establishments generated $57.0 million. It is worth noting that two small Texas clubs located in Edinburg and El Paso were closed during the quarter, but the influx of new clubs in various states, including the rebranded XTC 2.0 in Dallas, TX, signifies an ongoing commitment to innovation within the nightlife sector.
Bombshells Restaurants Performance
In contrast, the Bombshells segment faced significant challenges, recording $8.4 million in sales, which marks a 12.6% decrease from the same quarter last year. Although two new locations opened in Denver, CO, and Lubbock, TX, contributing $1.8 million in sales, the overall sales were tempered by the closure of four underperforming locations from the previous year, which accounted for a reduction of $1.2 million in sales. RCI’s commitment to assessing performance and adapting its portfolio is noteworthy, reflecting a broader trend of operational diligence in the face of economic challenges.
Operational Challenges and Strategic Initiatives
RCI Hospitality experienced notable operational challenges during October and November, primarily due to customer uncertainty linked to the U.S. government shutdown. In response, the company’s strategy includes enhancing same-store sales, launching a new Bombshells location in Rowlett, Texas, and divesting non-income-producing properties under the “Back to Basics Capital Allocation Plan.” This strategic approach aims to streamline operations while focusing on acquiring new opportunities and supporting existing revenue streams.
Dividend Announcement
In a positive note for shareholders, RCI Hospitality declared a quarterly cash dividend of $0.07 per common share for the fiscal 2026 first quarter. This dividend, payable on December 30, 2025, to shareholders of record as of December 15, 2025, marks the company’s 40th consecutive quarterly cash dividend. This consistent return to shareholders is a testament to RCI’s ongoing financial stability and commitment to rewarding its investors even amidst challenging market conditions.
About RCI Hospitality Holdings, Inc.
RCI Hospitality Holdings, Inc. operates over 60 locations across its adult nightclub and sports bar-restaurant brands, securing its position as a leading company in the adult entertainment and dining industry across the United States. The company continues to explore new markets and refine its offerings, reflecting the entrepreneurial spirit that characterizes the broader Texas economy.
Frequently Asked Questions (FAQ)
What were RCI Hospitality’s total club and restaurant sales for the fiscal first quarter ended December 31, 2025?
The company reported total sales of $70.3 million for the fiscal first quarter ended December 31, 2025, marking a 0.9% decrease compared to the same period last year.
How did the Nightclubs segment perform during this period?
The Nightclubs segment generated $61.9 million in sales, a 0.9% increase from the previous year, driven by the addition of five new clubs contributing $4.9 million in sales.
What challenges did RCI Hospitality face in October and November 2025?
The company faced operational challenges due to customer uncertainty stemming from the U.S. government shutdown during October and November 2025.
What strategic initiatives is RCI Hospitality undertaking to address these challenges?
RCI Hospitality is intensifying efforts to increase same-store sales, open a new Bombshells location in Rowlett, Texas, and divest non-income-producing and underperforming properties as part of its “Back to Basics Capital Allocation Plan.”
Has RCI Hospitality declared any dividends recently?
Yes, the company declared a quarterly cash dividend of $0.07 per common share for the fiscal 2026 first quarter, payable on December 30, 2025, to shareholders of record as of December 15, 2025. This marks the company’s 40th consecutive quarterly cash dividend.
Key Features of RCI Hospitality Holdings, Inc.
| Feature | Details |
|---|---|
| Total Sales for Q1 2026 | $70.3 million |
| Nightclubs Sales | $61.9 million (0.9% increase) |
| Bombshells Sales | $8.4 million (12.6% decrease) |
| Same-Store Sales Decline (Nightclubs) | 5.8% |
| Same-Store Sales Decline (Bombshells) | 21.9% |
| New Nightclubs Opened | Five new clubs contributing $4.9 million in sales |
| New Bombshells Locations | Two new locations adding $1.8 million in sales |
| Dividend Declared | $0.07 per common share (40th consecutive quarterly cash dividend) |
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