Earnings release
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RCI HOSPITALITY HOLDINGS INC RCI Files 10 - Q , Reports Results for 3Q26 , Hosts X Spaces Call at 4:30 PM ET Today HOUSTON - August 6 , 2026 - 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 ) Total revenues 3Q26 3Q25 9M26 9M25 $ 73.9 $ 71.1 $ 213.5 $ 208.5 EPS Non - GAAP EPS¹ Impairments and other charges , net $ 0.83 $ 0.46 $ 0.16 $ 1.84 $ 0.90 $ 0.77 $ 2.41 $ 2.23 $ 0.0 $ 2.3 $ 7.9 $ 2.2 Net cash provided by operating activities $ 11.3 $ 13.8 $ 29.0 $ 35.7 Free cash flow¹ $ 10.6 $ 13.3 $ 25.7 $ 32.3 Net income attributable to RCIHH common stockholders $ 6.4 $ 4.1 $ 1.3 $ 16.3 Adjusted EBITDA¹ $ 16.9 $ 15.3 $ 48.2 $ 45.2 Weighted average shares used in computing EPS - basic and diluted 1 See " Non - GAAP Financial Measures " below . 7.65 8.79 7.90 8.86 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 1
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2 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
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3 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. Media & Investor Contacts Gary Fishman and Michael Wichman at 212-883-0655 or gfishman@pondel.com and mwichman@pondel.com.
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4 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
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5 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
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6 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
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7 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
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8 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
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9 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 %
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10 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 %