RCI Reports 3Q25 Results, Hosts X Spaces Call at 4:30 PM ET Today

HOUSTON—August 11, 2025—RCI Hospitality Holdings, Inc. (Nasdaq: RICK) today reported results for the fiscal 2025 third quarter ended June 30, 2025. The Company also filed its Form 10-Q today.

Summary Financials (in millions, except EPS)	3Q25	3Q24	9M25	9M24
Total revenues	$71.1	$76.2	$208.5	$222.4
EPS	$0.46	$(0.56)	$1.84	$0.30
Non-GAAP EPS1	$0.77	$1.35	$2.23	$3.11
Impairments and other charges, net	$2.3	$18.3	$2.2	$26.5
Net cash provided by operating activities	$13.8	$15.8	$35.7	$40.2
Free cash flow1	$13.3	$13.8	$32.3	$35.3
Net income (loss) attributable to RCIHH common stockholders	$4.1	$(5.2)	$16.3	$2.8
Adjusted EBITDA1	$15.3	$20.1	$45.2	$54.8
Weighted average shares used in computing EPS – basic and diluted	8.79	9.28	8.86	9.33

1 See “Non-GAAP Financial Measures” below.

3Q25 Summary (Comparisons are to the year-ago period unless indicated otherwise)

Eric Langan, President and CEO, said: "We continued to make solid progress with our Back to Basics 5-Year Capital Allocation Plan. Nightclubs revenues were nearly level despite tariff and tax bill related economic uncertainty. Bombshells revenues reflected the previously announced sale/divestiture of five underperformers, but increased sequentially from 2Q25. Consolidated profitability benefited from the absence of impairment charges, partially offset by other factors."

Back to Basics 5-Year Capital Allocation Plan (FY25-29)

•3Q25: Early April 2025 acquired Platinum West in West Columbia, SC, for $6.25 million for the club and $1.75 million for the real estate.

•3Q25: Mid-June 2025 acquired Platinum Plus in Allentown, PA, for $2.0 million.

•3Q25: Late June 2025 opened Rick's Cabaret and Steakhouse in Central City, CO.

•3Q25: Repurchased 75,325 common shares for $3.0 million ($40.41 average per share), with 8,756,800 shares outstanding at June 30, 2025.

•4Q25: Early July 2025 opened a Bombshells in Lubbock, TX.

X Spaces Conference Call at 4:30 PM ET Today

•Hosted by RCI President and CEO Eric Langan,CFO Bradley Chhay, and Mark Moran of Equity Animal.

•Call link: https://x.com/i/spaces/1OdJrDOQobXKX (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.

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3Q25Results (Comparisons are to the year-ago period unless indicated otherwise)

Nightclubs segment: Revenues of $62.3 million declined by 0.8%. Sales reflected a 3.7% decline in same-store sales and the absence of Baby Dolls Fort Worth due to fire in July 2024, mostly offset by $2.6 million from four new clubs acquired or opened in 2Q25 and 3Q25 and four rebranded/reformatted Texas clubs not in SSS.2

By revenue type, food, merchandise and other increased 5.1%, service increased 0.3%, and alcoholic beverages declined 3.9%. Other net charges totaled $2.3 million, primarily reflecting lawsuit settlement expense and gain on insurance, compared to $7.7 million, primarily reflecting 3Q24 impairments.

Operating income was $17.8 million (28.5% of segment revenues) compared to $13.6 million (21.7%). Results reflected the decline in other net charges and SSS, acquisitions not yet fully optimized, and Rick's Cabaret Central City pre-opening costs.

Non-GAAP operating income, which excludes other net charges, was $20.7 million (33.2% of segment revenues) compared to $21.9 million (34.9%).

Bombshells segment: Revenues of $8.6 million declined 34.5%. Sales reflected the sale/divestiture of five underperforming locations and a 13.5% decline in SSS, partially offset by two new locations not in SSS (Stafford, TX, and Denver, CO).2

Operating income was $87,000 (1.0% of segment revenues) compared to a loss of $8.9 million (-67.8%), which included impairments of $10.3 million. Results reflected the decline in impairments, sales from open locations and Bombshells Lubbock pre-opening costs.

Non-GAAP operating income, which excludes impairments, was $100,000 (1.2% of segment revenues) compared to $1.4 million (10.8%).

Corporate segment: Expenses totaled $8.7 million (12.2% of total revenues) compared to $7.2 million (9.4%). Non-GAAP expenses totaled $8.3 million (11.7% of total revenues) compared to $6.4 million (8.4%). GAAP and non-GAAP expenses reflected the net addition of $1.7 million in estimated non-cash self-insurance actuarial reserves.

Impairments and other charges, net within consolidated operations totaled $2.3 million compared to $18.3 million. 3Q25 primarily reflected $3.3 million lawsuit settlement expense, partially offset by a $1.1 million gain from an insurance payment related to the Baby Dolls Fort Worth fire. 3Q24 primarily reflected $17.9 million in impairments.

Income tax was a $0.7 million expense compared to a $1.4 million benefit.

Weighted average shares outstanding of 8.79 million declined 5.2% due to share buybacks.

Debt was $241.3 million at June 30, 2025 compared to $241.5 million at March 31, 2025. Debt reflected scheduled pay downs, new acquisition related debt and construction financing for Bombshells Rowlett and Lubbock.

2 See our July 10, 2025 news release on 3Q25 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 it describes the operating performance of the Company and helps 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, (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

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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, (d) gains or losses on sale of businesses and assets, (e) gains or losses on insurance, (f) stock-based compensation, (g) gains or losses on lease termination, and (h) 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 17.4% and 11.7% effective tax rate of the pre-tax non-GAAP income before taxes for the nine months ended June 30, 2025, and 2024, 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) impairment of assets, (c) income tax expense, (d) net interest expense, (e) settlement of lawsuits, (f) gains or losses on sale of businesses and assets, (g) gains or losses on insurance, (h) stock-based compensation, and (i) 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.

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, and (vi) 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, 2024, as well as its other filings with the U.S. Securities and Exchange Commission. 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.

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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, 2025				June 30, 2024				June 30, 2025				June 30, 2024
	Amount		% of Revenue		Amount		% of Revenue		Amount		% of Revenue		Amount		% of Revenue
Revenues
Sales of alcoholic beverages	$	30,780	43.3	%	$	34,442	45.2	%	$	91,834	44.0	%	$	100,665	45.3	%
Sales of food and merchandise	10,037		14.1	%	11,736		15.4	%	29,554		14.2	%	33,606		15.1	%
Service revenues	25,169		35.4	%	25,268		33.2	%	72,262		34.7	%	73,951		33.3	%
Other	5,159		7.3	%	4,734		6.2	%	14,854		7.1	%	14,148		6.4	%
Total revenues	71,145		100.0	%	76,180		100.0	%	208,504		100.0	%	222,370		100.0	%
Operating expenses
Cost of goods sold
Alcoholic beverages sold	5,580		18.1	%	6,273		18.2	%	16,630		18.1	%	18,445		18.3	%
Food and merchandise sold	3,519		35.1	%	4,197		35.8	%	10,264		34.7	%	12,228		36.4	%
Service and other	36		0.1	%	36		0.1	%	133		0.2	%	111		0.1	%
Total cost of goods sold (exclusive of items shown below)	9,135		12.8	%	10,506		13.8	%	27,027		13.0	%	30,784		13.8	%
Salaries and wages	20,916		29.4	%	20,992		27.6	%	61,971		29.7	%	63,299		28.5	%
Selling, general and administrative	26,140		36.7	%	25,057		32.9	%	75,247		36.1	%	74,911		33.7	%
Depreciation and amortization	3,892		5.5	%	3,901		5.1	%	11,237		5.4	%	11,638		5.2	%
Impairments and other charges, net	2,349		3.3	%	18,260		24.0	%	2,232		1.1	%	26,452		11.9	%
Total operating expenses	62,432		87.8	%	78,716		103.3	%	177,714		85.2	%	207,084		93.1	%
Income (loss) from operations	8,713		12.2	%	(2,536)		(3.3)	%	30,790		14.8	%	15,286		6.9	%
Other income (expenses)
Interest expense	(4,032)		(5.7)	%	(4,240)		(5.6)	%	(12,232)		(5.9)	%	(12,455)		(5.6)	%
Interest income	117		0.2	%	130		0.2	%	435		0.2	%	320		0.1	%
Gain on lease termination and other	(5)		—	%	—		—	%	974		0.5	%	—		—	%
Income (loss) before income taxes	4,793		6.7	%	(6,646)		(8.7)	%	19,967		9.6	%	3,151		1.4	%
Income tax expense (benefit)	733		1.0	%	(1,426)		(1.9)	%	3,648		1.7	%	378		0.2	%
Net income (loss)	4,060		5.7	%	(5,220)		(6.9)	%	16,319		7.8	%	2,773		1.2	%
Net income attributable to noncontrolling interests	(2)		—	%	(13)		—	%	(6)		—	%	(6)		—	%
Net income (loss) attributable to RCIHH common shareholders	$	4,058	5.7	%	$	(5,233)	(6.9)	%	$	16,313	7.8	%	$	2,767	1.2	%
Earnings (loss) per share
Basic and diluted	$	0.46			$	(0.56)			$	1.84			$	0.30
Weighted average shares used in computing earnings (loss) per share
Basic and diluted	8,793,809				9,278,921				8,859,028				9,332,249

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RCI HOSPITALITY HOLDINGS, INC.
SEGMENT INFORMATION
(in thousands)
	Three Months Ended				Nine Months Ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Revenues
Nightclubs	$	62,336	$	62,823	$	181,601	$	183,228
Bombshells	8,609		13,139		26,425		38,641
Other	200		218		478		501
	$	71,145	$	76,180	$	208,504	$	222,370
Income (loss) from operations
Nightclubs	$	17,761	$	13,640	$	53,246	$	45,030
Bombshells	87		(8,914)		1,831		(8,129)
Other	(441)		(108)		(1,292)		(581)
Corporate	(8,694)		(7,154)		(22,995)		(21,034)
	$	8,713	$	(2,536)	$	30,790	$	15,286

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RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
	Three Months Ended				Nine Months Ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$	4,060	$	(5,220)	$	16,319	$	2,773
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	3,892		3,901		11,237		11,638
Impairment of assets	—		17,931		1,780		25,964
Deferred income tax benefit	(958)		(4,508)		(2,200)		(6,419)
Loss (gain) on sale of businesses and assets	22		79		(1,226)		116
Amortization and writeoff of debt discount and issuance costs	130		150		420		462
Doubtful accounts expense on notes receivable	27		—		27		22
Gain on insurance	(729)		—		(1,879)		—
Noncash lease expense	676		783		2,002		2,318
Stock-based compensation	392		471		980		1,412
Changes in operating assets and liabilities, net of business acquisitions:
Receivables	(443)		1,985		1,271		3,052
Inventories	26		(70)		90		(212)
Prepaid expenses, other current, and other assets	930		2,936		400		(3,484)
Accounts payable, accrued, and other liabilities	5,768		(2,674)		6,463		2,591
Net cash provided by operating activities	13,793		15,764		35,684		40,233
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of businesses and assets	1		1,950		1,086		1,950
Proceeds from insurance	743		—		1,893		—
Proceeds from notes receivable	76		63		223		179
Payments for property and equipment and intangible assets	(3,681)		(6,417)		(12,289)		(19,219)
Acquisition of businesses, net of cash acquired	(7,000)		—		(13,000)		—
Net cash used in investing activities	(9,861)		(4,404)		(22,087)		(17,090)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from debt obligations	779		20,000		9,175		22,657
Payments on debt obligations	(4,110)		(6,507)		(14,431)		(17,137)
Purchase of treasury stock	(3,044)		(9,173)		(9,158)		(12,775)
Payment of dividends	(614)		(552)		(1,856)		(1,674)
Payment of loan origination costs	(9)		(154)		(80)		(290)
Net cash used in financing activities	(6,998)		3,614		(16,350)		(9,219)
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(3,066)		14,974		(2,753)		13,924
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT BEGINNING OF PERIOD	32,663		19,973		32,350		21,023
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH AT END OF PERIOD	$	29,597	$	34,947	$	29,597	$	34,947

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RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
	June 30, 2025		September 30, 2024		June 30, 2024
ASSETS
Current assets
Cash and cash equivalents	$	29,347	$	32,350	$	34,947
Receivables, net	4,606		5,832		7,057
Inventories	4,746		4,676		4,624
Prepaid expenses and other current assets	3,214		4,427		5,457
Assets held for sale	3,394		—		—
Total current assets	45,307		47,285		52,085
Property and equipment, net	282,246		280,075		283,834
Operating lease right-of-use assets, net	26,641		26,231		26,880
Notes receivable, net of current portion	3,939		4,174		4,228
Goodwill	70,236		61,911		61,911
Intangibles, net	166,942		163,461		170,709
Other assets	2,101		1,227		1,342
Total assets	$	597,412	$	584,364	$	600,989
LIABILITIES AND EQUITY
Current liabilities
Accounts payable	$	5,406	$	5,637	$	5,519
Accrued liabilities	21,764		20,280		20,155
Current portion of debt obligations, net	18,623		18,871		28,889
Current portion of operating lease liabilities	3,249		3,290		3,161
Total current liabilities	49,042		48,078		57,724
Deferred tax liability, net	20,493		22,693		22,724
Debt, net of current portion and debt discount and issuance costs	222,638		219,326		216,511
Operating lease liabilities, net of current portion	28,171		30,759		32,779
Other long-term liabilities	7,765		398		318
Total liabilities	328,109		321,254		330,056
Commitments and contingencies
Equity
Preferred stock	—		—		—
Common stock	87		90		91
Additional paid-in capital	53,244		61,511		68,950
Retained earnings	216,216		201,759		202,143
Total RCIHH stockholders' equity	269,547		263,360		271,184
Noncontrolling interests	(244)		(250)		(251)
Total equity	269,303		263,110		270,933
Total liabilities and equity	$	597,412	$	584,364	$	600,989

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RCI HOSPITALITY HOLDINGS, INC.
NON-GAAP FINANCIAL MEASURES
(in thousands, except per share, number of shares, and percentage data)
	Three Months Ended				Nine Months Ended
	June 30, 2025		June 30, 2024		June 30, 2025		June 30, 2024
Reconciliation of GAAP net income (loss) to Adjusted EBITDA
Net income (loss) attributable to RCIHH common stockholders	$	4,058	$	(5,233)	$	16,313	$	2,767
Income tax expense (benefit)	733		(1,426)		3,648		378
Interest expense, net	3,915		4,110		11,797		12,135
Depreciation and amortization	3,892		3,901		11,237		11,638
Impairment of assets	—		17,931		1,780		25,964
Settlement of lawsuits	3,281		141		3,587		308
Loss (gain) on sale of businesses and assets	202		188		(984)		180
Gain on insurance	(1,134)		—		(2,151)		—
Stock-based compensation	392		471		980		1,412
Gain on lease termination	—		—		(979)		—
Adjusted EBITDA	$	15,339	$	20,083	$	45,228	$	54,782
Reconciliation of GAAP net income (loss) to non-GAAP net income
Net income (loss) attributable to RCIHH common stockholders	$	4,058	$	(5,233)	$	16,313	$	2,767
Amortization of intangibles	576		598		1,733		1,897
Impairment of assets	—		17,931		1,780		25,964
Settlement of lawsuits	3,281		141		3,587		308
Stock-based compensation	392		471		980		1,412
Loss (gain) on sale of businesses and assets	202		188		(984)		180
Gain on insurance	(1,134)		—		(2,151)		—
Gain on lease termination	—		—		(979)		—
Net income tax effect	(562)		(1,554)		(515)		(3,475)
Non-GAAP net income	$	6,813	$	12,542	$	19,764	$	29,053
Reconciliation of GAAP diluted earnings (loss) per share to non-GAAP diluted earnings per share
Diluted shares	8,793,809		9,278,921		8,859,028		9,332,249
GAAP diluted earnings (loss) per share	$	0.46	$	(0.56)	$	1.84	$	0.30
Amortization of intangibles	0.07		0.06		0.20		0.20
Impairment of assets	0.00		1.93		0.20		2.78
Settlement of lawsuits	0.37		0.02		0.40		0.03
Stock-based compensation	0.04		0.05		0.11		0.15
Loss (gain) on sale of businesses and assets	0.02		0.02		(0.11)		0.02
Gain on insurance	(0.13)		0.00		(0.24)		0.00
Gain on lease termination	0.00		0.00		(0.11)		0.00
Net income tax effect	(0.06)		(0.17)		(0.06)		(0.37)
Non-GAAP diluted earnings per share	$	0.77	$	1.35	$	2.23	$	3.11

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	Three Months Ended						Nine Months Ended
	June 30, 2025			June 30, 2024			June 30, 2025			June 30, 2024
Reconciliation of GAAP operating income (loss) to non-GAAP operating income
Income (loss) from operations	$	8,713		$	(2,536)		$	30,790		$	15,286
Amortization of intangibles	576			598			1,733			1,897
Impairment of assets	—			17,931			1,780			25,964
Settlement of lawsuits	3,281			141			3,587			308
Stock-based compensation	392			471			980			1,412
Loss (gain) on sale of businesses and assets	202			188			(984)			180
Gain on insurance	(1,134)			—			(2,151)			—
Non-GAAP operating income	$	12,030		$	16,793		$	35,735		$	45,047
Reconciliation of GAAP operating margin to non-GAAP operating margin
GAAP operating margin	12.2		%	(3.3)		%	14.8		%	6.9		%
Amortization of intangibles	0.8		%	0.8		%	0.8		%	0.9		%
Impairment of assets	0.0		%	23.5		%	0.9		%	11.7		%
Settlement of lawsuits	4.6		%	0.2		%	1.7		%	0.1		%
Stock-based compensation	0.6		%	0.6		%	0.5		%	0.6		%
Loss (gain) on sale of businesses and assets	0.3		%	0.2		%	(0.5)		%	0.1		%
Gain on insurance	(1.6)		%	0.0		%	(1.0)		%	0.0		%
Non-GAAP operating margin	16.9		%	22.0		%	17.1		%	20.3		%
Reconciliation of net cash provided by operating activities to free cash flow
Net cash provided by operating activities	$	13,793		$	15,764		$	35,684		$	40,233
Less: Maintenance capital expenditures	454			1,986			3,341			4,980
Free cash flow	$	13,339		$	13,778		$	32,343		$	35,253

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RCI HOSPITALITY HOLDINGS, INC.
NON-GAAP SEGMENT INFORMATION
($ in thousands)
	Three Months Ended June 30, 2025															Three Months Ended June 30, 2024
	Nightclubs			Bombshells			Other			Corporate			Total			Nightclubs			Bombshells			Other			Corporate			Total
Income (loss) from operations	$	17,761		$	87		$	(441)		$	(8,694)		$	8,713		$	13,640		$	(8,914)		$	(108)		$	(7,154)		$	(2,536)
Amortization of intangibles	572			1			—			3			576			578			16			—			4			598
Impairment of assets	—			—			—			—			—			7,619			10,312			—			—			17,931
Settlement of lawsuits	3,281			—			—			—			3,281			141			—			—			—			141
Stock-based compensation	—			—			—			392			392			—			—			—			471			471
Loss (gain) on sale of businesses and assets	191			12			—			(1)			202			(76)			6			—			258			188
Gain on insurance	(1,134)			—			—			—			(1,134)			—			—			—			—			—
Non-GAAP operating income (loss)	$	20,671		$	100		$	(441)		$	(8,300)		$	12,030		$	21,902		$	1,420		$	(108)		$	(6,421)		$	16,793
GAAP operating margin	28.5		%	1.0		%	(220.5)		%	(12.2)		%	12.2		%	21.7		%	(67.8)		%	(49.5)		%	(9.4)		%	(3.3)		%
Non-GAAP operating margin	33.2		%	1.2		%	(220.5)		%	(11.7)		%	16.9		%	34.9		%	10.8		%	(49.5)		%	(8.4)		%	22.0		%
	Nine Months Ended June 30, 2025															Nine Months Ended June 30, 2024
	Nightclubs			Bombshells			Other			Corporate			Total			Nightclubs			Bombshells			Other			Corporate			Total
Income (loss) from operations	$	53,246		$	1,831		$	(1,292)		$	(22,995)		$	30,790		$	45,030		$	(8,129)		$	(581)		$	(21,034)		$	15,286
Amortization of intangibles	1,718			3			—			12			1,733			1,758			126			—			13			1,897
Impairment of assets	1,780			—			—			—			1,780			15,652			10,312			—			—			25,964
Settlement of lawsuits	3,557			30			—			—			3,587			308			—			—			—			308
Stock-based compensation	—			—			—			980			980			—			—			—			1,412			1,412
Loss (gain) on sale of businesses and assets	300			(1,189)			—			(95)			(984)			(70)			10			—			240			180
Gain on insurance	(2,151)			—			—			—			(2,151)			—			—			—			—			—
Non-GAAP operating income (loss)	$	58,450		$	675		$	(1,292)		$	(22,098)		$	35,735		$	62,678		$	2,319		$	(581)		$	(19,369)		$	45,047
GAAP operating margin	29.3		%	6.9		%	(270.3)		%	(11.0)		%	14.8		%	24.6		%	(21.0)		%	(116.0)		%	(9.5)		%	6.9		%
Non-GAAP operating margin	32.2		%	2.6		%	(270.3)		%	(10.6)		%	17.1		%	34.2		%	6.0		%	(116.0)		%	(8.7)		%	20.3		%

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