RCI Hospitality Holdings, Inc. (NASDAQ: RICK) increased the amount available under its share repurchase program by $20 million, raising the total buyback capacity to $24.8 million. The increase builds on a previous authorization that left $4.8 million remaining, bringing the program to its highest level to date.
The move is part of the company’s “Back‑to‑Basics” five‑year capital allocation plan, which covers fiscal years 2025 through 2029. The plan prioritizes free‑cash‑flow‑per‑share growth through aggressive share buybacks, debt reduction, and portfolio pruning, and the new authorization reinforces that focus.
RCI’s most recent operating results show mixed performance across its segments. Nightclubs sales rose 0.9% to $61.9 million, but same‑store sales fell 5.8%. The Bombshells segment experienced a more pronounced decline. The company also received a Nasdaq extension to file its Q1 fiscal 2026 Form 10‑Q, reflecting ongoing compliance work.
Interim President and CEO Travis Reese said the company’s share price was near a 52‑week low, and that the buyback program signals confidence that the shares are undervalued. He added that customer uncertainty stemming from the U.S. government shutdown had weighed on sales in October and November 2025, while higher‑margin club service revenues increased year over year in the first quarter of fiscal 2026.
By expanding the buyback authorization, RCI is positioning itself to return capital to shareholders while maintaining flexibility to invest in growth opportunities. The decision underscores management’s commitment to the “Back‑to‑Basics” strategy and its belief that the company’s free‑cash‑flow generation will support continued share repurchases and debt reduction.
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