RCI Hospitality Holdings, Inc. — FY26 Earnings Summary

Financial Performance

• Total club and sports bar sales for Q4 2026 reached $70.4 million, an increase of 0.8% year-over-year.
• Total club and sports bar sales for FY26 reached $282.2 million, an increase of 2.0% year-over-year.
• Q4 2026 Nightclubs sales were $59.3 million, down 1.9% year-over-year.
• Q4 2026 Bombshells sales were $11.1 million, up 18.3% year-over-year.
• FY26 Nightclubs sales were $243.6 million, up 1.1% year-over-year.
• FY26 Bombshells sales were $38.6 million, up 8.0% year-over-year.
• Q4 2026 combined same-store sales declined 1.1% year-over-year.
• FY26 combined same-store sales declined 2.8% year-over-year.
• Q4 2026 Nightclubs same-store sales declined 2.7% year-over-year.
• Q4 2026 Bombshells same-store sales increased 12.1% year-over-year.
• FY26 Nightclubs same-store sales declined 2.5% year-over-year.
• FY26 Bombshells same-store sales declined 4.8% year-over-year.
• Excluding the three most recently opened units, FY26 total sales increased 5.9%.
• Q4 2026 Nightclubs generated $57.6 million from 55 same-store locations, $1.8 million from one newly reformatted club, and excluded $1.0 million from four clubs closed after the prior year quarter.
• Q4 2026 Bombshells generated $7.7 million from nine same-store locations and $3.4 million from three new locations (Denver, CO; Lubbock, TX; Rowlett, TX).
• Sales figures exclude non-core operations, including third-party rents and revenues from the "Other" segment.

Business Segments and Product Lines

• Nightclubs segment operated 56 locations contributing to sales, down from 60 in the prior year.
• Bombshells segment operated 12 locations contributing to sales, up from 11 in the prior year.
• New Bombshells locations opened in January 2025 (Denver, CO), July 2025 (Lubbock, TX), and June 2026 (Rowlett, TX).
• Four Nightclubs locations closed subsequent to the year-ago quarter.
• One Nightclub was newly reformed and excluded from same-store sales calculations.
• FY26 marked the first time since FY22 that the company generated annual sales growth in both clubs and sports bars.
• Bombshells implemented new strategies and leadership mid-FY26, resulting in a turnaround from a 16.7% same-store decline in the first half to 8.2% growth in the second half.
• Nightclubs implemented operational adjustments mid-quarter in Q4 2026, improving sales sequentially in September.

Management Commentary and Tone

• Travis Reese, Interim President and CEO, noted that despite challenging macroeconomic conditions, Bombshells same-store sales increased 12.1% in Q4 2026.
• Management highlighted that Nightclubs operational adjustments made quickly mid-quarter helped improve sales sequentially in September.
• Management stated that the mid-year turnaround program for Bombshells produced 8.2% same-store growth in the second half of FY26.
• The tone acknowledges challenging macroeconomic conditions while emphasizing successful strategic pivots and new location contributions.

Other Key Points

• The company is the country's leading company in adult nightclubs and sports bars with more than 60 locations.
• Sales data are subject to final closing.
• All comparisons are year-over-year except where noted.
• Forward-looking statements include risks related to operating adult entertainment businesses, city business climates, real estate transactions, cyber security, SEC compliance, and dependence on key personnel.