Recent News
On November 5, 2025 the board declared a regular cash dividend of $0.56 per share payable December 31, 2025. On November 19, 2025 RCI rolled out an upgraded cruise program for members. On October 15, 2025 the company completed a $300 million term securitization transaction that improved funding spreads and enhanced liquidity. On September 30, 2025 the company published its corporate responsibility report describing sustainability commitments and targets. On September 16 and September 3, 2025 the company announced brand expansions and new vacation concepts tied to Sports Illustrated Resorts and music-themed getaways.
Technical Analysis
ADX at 21.07 indicates an emerging trend strength; directional movement shows bullish orientation with DI+ at 27.71 described as a dip & reversal and DI- at 18.69 described as a peak & reversal, which together favor upside continuation relative to recent valuations.
MACD sits at 0.65 with a MACD signal at 0.41 and a dip & reversal pattern; the MACD has crossed above its signal line, signaling bullish momentum that aligns with the introduction of stronger cash-flow headlines and balance-sheet actions.
MRO at 28.44 registers above zero, indicating price sits above the MRO target and therefore carries potential for a corrective move; the MRO shows a dip & reversal pattern, so momentum dynamics could flip if valuation-sensitive selling appears.
RSI at 55.22 with a dip & reversal pattern places momentum in modestly bullish territory without overextension, while price trades above the 20-, 50-, and 200-day averages ($63.60, $62.21, $54.48 respectively), reinforcing short-term technical strength versus long-term trend.
Price closed at $68.24, above the upper Bollinger 2x band ($67.89), implying recent strength extended into high volatility bands; the SuperTrend lower support sits near $62.85, providing a nearby structural support reference for near-term price stability. Short-term volume slightly trails its 10-day and 50-day averages, suggesting current directional moves lack heavy conviction in intraday flows.
Fundamental Analysis
Third-quarter results reported net income of $111 million and adjusted diluted EPS of $1.80; adjusted EBITDA reported $266 million and management raised full-year adjusted EBITDA midpoint. These results accompanied $106 million returned to shareholders year-to-date through dividends and repurchases and an updated guidance range for full-year adjusted EBITDA.
Profitability: EBIT equals $218 million and EBITDA equals $249 million, producing an EBIT margin of 20.88%. EBIT margin improved QoQ by 1.71 percentage points and improved YoY by 7.44 percentage points, yet the margin sits below the industry peer mean of 27.10% and the industry peer median of 26.67%.
Cash flow and liquidity: operating cash flow reached $163 million with free cash flow of $136 million and a free cash flow yield of 3.56%. Free cash flow grew YoY by 65.32% while free cash flow growth QoQ contracted materially; the company completed a $300 million term securitization in mid‑October and priced senior secured notes in August, actions that bolster liquidity and extend maturities.
Leverage and coverage: total debt stands at $5,577 million with net debt at $5,319 million and a debt-to-EBITDA ratio of 22.40, while interest coverage equals 3.63×. Debt metrics tightened slightly QoQ but expanded markedly YoY; the large debt-to-EBITDA ratio signals elevated leverage that coexists with positive operating cash generation and recent asset-backed funding.
Capital returns and per‑share metrics: EPS actual registered at $1.80 versus an estimate of $1.73, an EPS surprise of 4.05%. Price multiples: P/E near 33.0 sits below the industry peer mean P/E of 40.61 and below the industry peer median of 55.22; P/B at -4.65 reflects negative book value per share of $-12.76. WMDST values the stock as under-valued based on the interplay of persistent cash generation, dividend policy, and the valuation multiples versus realised cash metrics.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-09-30 |
| REPORT DATE: | 2025-10-22 |
| NEXT REPORT DATE: | 2026-01-21 |
| CASH FLOW | Begin Period Cash Flow | $ 212.0 M |
| Operating Cash Flow | $ 163.0 M | |
| Capital Expenditures | $ -27.00 M | |
| Change In Working Capital | $ -170.00 M | |
| Dividends Paid | $ -36.00 M | |
| Cash Flow Delta | $ 202.0 M | |
| End Period Cash Flow | $ 414.0 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 1.0 B | |
| Forward Revenue | $ 239.0 M | |
| COSTS | ||
| Cost Of Revenue | $ 46.0 M | |
| Depreciation | $ 31.0 M | |
| Depreciation and Amortization | $ 31.0 M | |
| Research and Development | — | |
| Total Operating Expenses | $ 829.0 M | |
| PROFITABILITY | ||
| Gross Profit | $ 998.0 M | |
| EBITDA | $ 249.0 M | |
| EBIT | $ 218.0 M | |
| Operating Income | $ 215.0 M | |
| Interest Income | $ 3.0 M | |
| Interest Expense | $ 60.0 M | |
| Net Interest Income | $ -57.00 M | |
| Income Before Tax | $ 158.0 M | |
| Tax Provision | $ 47.0 M | |
| Tax Rate | 30.0 % | |
| Net Income | $ 111.0 M | |
| Net Income From Continuing Operations | $ 110.0 M | |
| EARNINGS | ||
| EPS Estimate | $ 1.73 | |
| EPS Actual | $ 1.80 | |
| EPS Difference | $ 0.07 | |
| EPS Surprise | 4.046 % | |
| Forward EPS | $ 1.58 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 6.9 B | |
| Intangible Assets | $ 1.2 B | |
| Net Tangible Assets | $ -2.00 B | |
| Total Current Assets | $ 4.7 B | |
| Cash and Short-Term Investments | $ 240.0 M | |
| Cash | $ 240.0 M | |
| Net Receivables | $ 173.0 M | |
| Inventory | $ 1.3 B | |
| Long-Term Investments | $ 442.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 66.0 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 1.4 B | |
| Net Debt | $ 5.3 B | |
| Total Debt | $ 5.6 B | |
| Total Liabilities | $ 7.7 B | |
| EQUITY | ||
| Total Equity | $ -821.00 M | |
| Retained Earnings | $ 2.5 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ -12.76 | |
| Shares Outstanding | 64.329 M | |
| Revenue Per-Share | $ 16.23 | |
| VALUATION | Market Capitalization | $ 3.8 B |
| Enterprise Value | $ 9.2 B | |
| Enterprise Multiple | 36.772 | |
| Enterprise Multiple QoQ | -2.93 % | |
| Enterprise Multiple YoY | 148.362 % | |
| Enterprise Multiple IPRWA | high: 92.716 median: 47.271 TNL: 36.772 mean: 34.304 low: -68.053 |
|
| EV/R | 8.77 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | -8.395 | |
| Asset To Liability | 0.894 | |
| Debt To Capital | 1.173 | |
| Debt To Assets | 0.809 | |
| Debt To Assets QoQ | -1.364 % | |
| Debt To Assets YoY | 958.791 % | |
| Debt To Assets IPRWA | TNL: 0.809 high: 0.791 median: 0.548 mean: 0.546 low: 0.385 |
|
| Debt To Equity | -6.794 | |
| Debt To Equity QoQ | 3.609 % | |
| Debt To Equity YoY | 1043.854 % | |
| Debt To Equity IPRWA | high: 8.432 mean: 2.698 median: 2.336 low: -1.348 TNL: -6.794 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | -4.651 | |
| Price To Book QoQ | 6.612 % | |
| Price To Book YoY | 34.36 % | |
| Price To Book IPRWA | high: 12.922 median: 8.564 mean: 6.046 low: -0.281 TNL: -4.651 |
|
| Price To Earnings (P/E) | 32.975 | |
| Price To Earnings QoQ | 5.603 % | |
| Price To Earnings YoY | 18.582 % | |
| Price To Earnings IPRWA | high: 73.556 median: 55.224 mean: 40.611 TNL: 32.975 low: -30.09 |
|
| PE/G Ratio | 3.627 | |
| Price To Sales (P/S) | 3.657 | |
| Price To Sales QoQ | 0.174 % | |
| Price To Sales YoY | 21.718 % | |
| Price To Sales IPRWA | high: 20.219 median: 16.819 mean: 10.688 TNL: 3.657 low: 0.025 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 37.402 | |
| Forward PE/G | 4.114 | |
| Forward P/S | 15.977 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 1.686 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.152 | |
| Asset Turnover Ratio QoQ | 1.6 % | |
| Asset Turnover Ratio YoY | 2.758 % | |
| Asset Turnover Ratio IPRWA | high: 0.267 TNL: 0.152 mean: 0.14 median: 0.131 low: 0.047 |
|
| Receivables Turnover | 6.0 | |
| Receivables Turnover Ratio QoQ | 1.965 % | |
| Receivables Turnover Ratio YoY | -0.906 % | |
| Receivables Turnover Ratio IPRWA | high: 17.37 median: 13.06 mean: 12.437 TNL: 6.0 low: 0.672 |
|
| Inventory Turnover | 0.036 | |
| Inventory Turnover Ratio QoQ | -17.963 % | |
| Inventory Turnover Ratio YoY | -28.966 % | |
| Inventory Turnover Ratio IPRWA | high: 10.73 median: 9.612 mean: 9.238 low: 0.4 TNL: 0.036 |
|
| Days Sales Outstanding (DSO) | 15.208 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 1994.504 | |
| Cash Conversion Cycle Days QoQ | 5.746 % | |
| Cash Conversion Cycle Days YoY | 1.452 % | |
| Cash Conversion Cycle Days IPRWA | TNL: 1994.504 high: 141.823 mean: -4.377 median: -9.845 low: -155.188 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.316 | |
| CapEx To Revenue | -0.026 | |
| CapEx To Depreciation | -0.871 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 4.7 B | |
| Net Invested Capital | $ 4.7 B | |
| Invested Capital | $ 4.7 B | |
| Net Tangible Assets | $ -2.00 B | |
| Net Working Capital | $ 3.3 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.175 | |
| Current Ratio | 3.41 | |
| Current Ratio QoQ | -1.972 % | |
| Current Ratio YoY | -3.866 % | |
| Current Ratio IPRWA | high: 3.817 TNL: 3.41 mean: 0.375 median: 0.195 low: 0.165 |
|
| Quick Ratio | 2.485 | |
| Quick Ratio QoQ | -2.056 % | |
| Quick Ratio YoY | -4.652 % | |
| Quick Ratio IPRWA | high: 3.123 TNL: 2.485 mean: 0.305 median: 0.166 low: 0.141 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 22.402 | |
| Cost Of Debt | 0.752 % | |
| Interest Coverage Ratio | 3.633 | |
| Interest Coverage Ratio QoQ | -0.909 % | |
| Interest Coverage Ratio YoY | 18.601 % | |
| Interest Coverage Ratio IPRWA | high: 7.367 median: 6.858 mean: 6.302 TNL: 3.633 low: -7.647 |
|
| Operating Cash Flow Ratio | 0.09 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 111.989 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | 3.083 | |
| Dividend Payout Ratio | 0.324 | |
| Dividend Rate | $ 0.56 | |
| Dividend Yield | 0.009 | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 1.219 % | |
| Revenue Growth | 2.554 % | |
| Revenue Growth QoQ | -71.603 % | |
| Revenue Growth YoY | 214.532 % | |
| Revenue Growth IPRWA | high: 107.793 % mean: 16.623 % median: 13.244 % TNL: 2.554 % low: -79.06 % |
|
| Earnings Growth | 9.091 % | |
| Earnings Growth QoQ | -81.313 % | |
| Earnings Growth YoY | 176.406 % | |
| Earnings Growth IPRWA | high: 308.571 % mean: 103.599 % median: 31.279 % TNL: 9.091 % low: -148.197 % |
|
| MARGINS | ||
| Gross Margin | 95.594 % | |
| Gross Margin QoQ | 1.054 % | |
| Gross Margin YoY | 1.96 % | |
| Gross Margin IPRWA | TNL: 95.594 % high: 51.742 % median: 47.08 % mean: 44.995 % low: -40.644 % |
|
| EBIT Margin | 20.881 % | |
| EBIT Margin QoQ | 1.71 % | |
| EBIT Margin YoY | 7.435 % | |
| EBIT Margin IPRWA | high: 35.552 % mean: 27.103 % median: 26.665 % TNL: 20.881 % low: -74.393 % |
|
| Return On Sales (ROS) | 20.594 % | |
| Return On Sales QoQ | 1.279 % | |
| Return On Sales YoY | 5.958 % | |
| Return On Sales IPRWA | high: 33.119 % median: 27.867 % mean: 26.47 % TNL: 20.594 % low: -74.535 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 136.0 M | |
| Free Cash Flow Yield | 3.562 % | |
| Free Cash Flow Yield QoQ | -32.114 % | |
| Free Cash Flow Yield YoY | -14.968 % | |
| Free Cash Flow Yield IPRWA | TNL: 3.562 % high: 2.093 % mean: -0.239 % median: -1.144 % low: -119.666 % |
|
| Free Cash Growth | -30.256 % | |
| Free Cash Growth QoQ | -131.848 % | |
| Free Cash Growth YoY | 65.324 % | |
| Free Cash Growth IPRWA | TNL: -30.256 % high: -52.239 % mean: -152.627 % median: -208.681 % low: -369.143 % |
|
| Free Cash To Net Income | 1.225 | |
| Cash Flow Margin | 11.877 % | |
| Cash Flow To Earnings | 1.117 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.02 | |
| Return On Assets (ROA) | 1.62 % | |
| Return On Assets QoQ | 1.823 % | |
| Return On Assets YoY | 11.801 % | |
| Return On Assets IPRWA | high: 4.005 % median: 3.632 % mean: 3.379 % TNL: 1.62 % low: -3.214 % |
|
| Return On Capital Employed (ROCE) | 3.949 % | |
| Return On Equity (ROE) | -0.135 | |
| Return On Equity QoQ | 6.658 % | |
| Return On Equity YoY | 20.146 % | |
| Return On Equity IPRWA | high: 0.191 median: 0.156 mean: 0.135 TNL: -0.135 low: -0.437 |
|
| DuPont ROE | -13.27 % | |
| Return On Invested Capital (ROIC) | 3.221 % | |
| Return On Invested Capital QoQ | 2.319 % | |
| Return On Invested Capital YoY | -92.895 % | |
| Return On Invested Capital IPRWA | high: 5.642 % median: 4.753 % mean: 4.681 % TNL: 3.221 % low: -4.932 % |
|