RCI Reports 3Q25 Results, Hosts X Spaces Call at 4:30 PM ET 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 EPS 1
$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 flow 1
$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 EBITDA 1
$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
Expand
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.
3Q25 Results (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 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.
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
$
29,597
$
34,947
$
29,597
$
34,947
Expand
RCI HOSPITALITY HOLDINGS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
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
Expand
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
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
Expand
RCI HOSPITALITY HOLDINGS, INC.
($ 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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Ubiquiti (UI) Sees 5% Decline Over Past Month
Amidst the buoyant broader markets, where the Dow reached an all-time high and major indices like the S&P 500 and Nasdaq faced slight dips, Ubiquiti experienced a price movement of a 4.54% decline over the past month. This movement contrasts somewhat with market trends which posted overall gains. The company's share performance during this period might have been influenced by various factors, although specific events were not detailed to pinpoint a definite cause. While overall market optimism was influenced by prospects of Federal Reserve rate adjustments, broader economic forces and external market developments could have also weighed on Ubiquiti's stock. Be aware that Ubiquiti is showing 1 possible red flag in our investment analysis. We've found 19 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Over the past year, Ubiquiti's shares have delivered a total return including dividends of 128.53%, which is impressive. This performance stands out especially when compared to the broader US market's return of 17.4% and the US Communications industry's return of 43.8% during the same one-year timeframe. Ubiquiti's ability to outpace both the market and industry suggests strong investor confidence, driven by significant earnings growth and an effective business strategy. The company's recent earnings announcements have shown marked improvements, with third-quarter net income rising to US$180.44 million from US$76.29 million year-over-year. These figures bolster Ubiquiti's earnings forecasts, even as revenue growth projections of 5.8% annually fall behind the market's 9.3%. Despite these earnings achievements, Ubiquiti's current share price of US$402.80 remains above the consensus analyst price target of US$343.50, indicating a substantial premium that some investors might view with caution. The recent dip in Ubiquiti's share price amidst broader market gains might reflect these valuation concerns and potential adjustments in market expectations. Click here to discover the nuances of Ubiquiti with our detailed analytical financial health report. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include UI. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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24 minutes ago
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Opendoor Technologies (OPEN) Announces Leadership Transition As CEO Carrie Wheeler Steps Down
Opendoor Technologies has experienced pivotal executive changes with the departure of CEO Carrie Wheeler, succeeded temporarily by technology leader Shrisha Radhakrishna, amidst a robust share price surge of 304% this past quarter. Contributing to this momentum are the company's efforts in launching new products like Cash Plus and the Key Agent App during a period when the broader market showed mixed performance with record highs in major indices like the Dow. Opendoor's strategic product advancements and investor enthusiasm appear to complement the overall market trends, despite not aligning with the slight declines in the S&P 500 and Nasdaq. Be aware that Opendoor Technologies is showing 2 risks in our investment analysis. AI is about to change healthcare. These 27 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. The recent executive changes at Opendoor Technologies, coupled with the significant share price surge this past quarter, could influence the company's strategic direction and execution. While the introduction of products like Cash Plus and the Key Agent App add potential for innovation-led growth, the revenue and earnings outlook remain cautious. The company's reliance on technological advancements may offer resilience amid high mortgage rates and affordability challenges, though analysts are bracing for persistent revenue pressures and ongoing unprofitability over the next three years. The interim leadership may navigate these waters with fresh insights, impacting future forecasts. Over the past year, Opendoor's total shareholder return, including dividends, was 77.09%, indicating solid performance despite broader market volatility. This also stands out when compared to the US Real Estate industry's 26.9% return over the same period, suggesting Opendoor outperformed in a challenging market environment. However, given the longer-term context, the share price is currently US$3.17, offering a stark contrast to the analyst consensus price target of US$1.14. This highlights a significant discount that could reflect differing expectations of future performance and market conditions. The recent price movement, powered by investor enthusiasm and product launches, suggests optimism. However, given the current share price exceeds the price target by a very large margin, investors might be pricing in greater optimism than analysts currently project. As the company focuses on revenue streams from innovative solutions, these efforts must translate into substantial profitability improvements to meet or exceed market expectations in the long run. Our comprehensive valuation report raises the possibility that Opendoor Technologies is priced higher than what may be justified by its financials. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include OPEN. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
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an hour ago
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5 Top Artificial Intelligence Stocks to Buy in August
Key Points Nvidia and Broadcom are AI infrastructure leaders. Palantir's AI platform is driving huge growth for the company. Alphabet and GitLab are two AI stocks that are still cheap. 10 stocks we like better than Nvidia › Artificial intelligence (AI) continues to be reshaping the world we live in, which can be both exciting and scary. It's also reshaping the stock market, and it is certainly an area you want to invest in. Let's look at the stocks of five AI leaders that would make top stock buys this month. 1. Nvidia Nvidia (NASDAQ: NVDA) remains the king of AI infrastructure. Its graphics processing units (GPUs) power most AI workloads worldwide, and in the first quarter, it commanded an astonishing 92% of the GPU market. What really sets it apart is its CUDA software platform, which it planted into universities and research labs years before AI went mainstream. That early push created a generation of developers trained on its tools and libraries built on top of its platform, building a moat that rivals struggle to cross. Nvidia has also accelerated its product cycle, planning new chip launches annually to stay ahead of the competition. Its growth opportunities also go beyond data centers, with the automotive market another big opportunity, thanks to the rise of self-driving and robotaxis. Nvidia's mix of market dominance, software moat, and expansion into new markets keeps it firmly at the center of AI. 2. Palantir Technologies Palantir Technologies (NASDAQ: PLTR) started as a critical analytics partner to U.S. government agencies but is now making its mark in commercial markets. Its Artificial Intelligence Platform (AIP) integrates data from numerous sources into an "ontology," allowing AI models to produce clear, actionable results. AIP is essentially becoming an AI operating system, making it a vital platform as companies begin to use AI in their operations. The strength of AIP could be seen in its Q2 results, as the company's U.S. commercial revenue surged 93%, while its total deal value more than doubled and its customer base climbed 43%. Given the breadth of use cases across very different industries that AIP can handle, Palantir has a long runway of growth in front of it. The company has continued to see accelerating revenue growth, and the best part is that many of its customers are still in their early stages of usage. As an essential component of the emerging AI economy, Palantir has the potential to grow into one of the largest companies in the world. 3. Alphabet Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) is proving that AI can strengthen its core businesses. Search has gained momentum with AI Overviews, which is now being used by over 2 billion people a month, helping drive a 12% year-over-year increase in search revenue last quarter. Google Cloud is another major beneficiary of AI, with its revenue jumping 32% and operating profit more than doubling in Q2, thanks to strong AI demand on its Vertex platform. Another area that is often overlooked is Alphabet's Tensor Processing Units (TPUs). As inference performance per dollar starts becoming one of the most important factors in running AI models, Alphabet has a nice advantage with its custom chips. In addition to search and cloud computing, Alphabet is also seeing solid contributions from its other businesses. YouTube ad revenue grew 13% last quarter, with Shorts leading the way. Meanwhile, Waymo is picking up steam, rolling out its robotaxi services to new cities across the U.S. From a valuation perspective, Alphabet is one of the most attractive AI stocks in the market, trading at a forward P/E just over 20. This makes it a must-own stock. 4. Broadcom Rather than competing directly with Nvidia with GPUs, chipmaker Broadcom (NASDAQ: AVGO) is playing to its strengths in AI networking and custom chip design. Its Ethernet switches and other networking components are critical for moving vast amounts of data between AI clusters. Demand here is booming, with its AI networking revenue up 70% in Q1. The real prize, though, may be its work on custom application-specific integrated circuits (ASICs). Broadcom helped develop Alphabet's TPUs and is now designing chips for multiple hyperscalers (companies with massive data centers), with management estimating its top three customers alone could represent a $60 billion to $90 billion opportunity in fiscal 2027. Its recent acquisition of VMware adds another growth lever, with its Cloud Foundation platform helping enterprises manage AI workloads across hybrid cloud environments. Between its leadership in data center networking components, custom chip expertise, and virtualization software, Broadcom is becoming one of the most important players in AI infrastructure. 5. GitLab GitLab (NASDAQ: GTLB) is evolving from a code repository into a full-fledged AI-powered software development platform. Its GitLab 18 release brought more than 30 upgrades, including Duo Agent, which can automate testing, deployment, security, and monitoring. That's important, because developers spend only a fraction of their time writing code. Automating the rest of the workflow can dramatically increase productivity. GitLab has delivered steady 25%-plus revenue growth since going public, with Q1 sales rising 27% year over year. The value of its platform in an AI-driven development world opens the door to a possible shift from seat-based to consumption-based pricing, which could drive revenue even higher. With AI changing how software is built, GitLab's end-to-end approach positions it as a key player in enterprise software development. As investors worry about the impact of AI on software, GitLab's stock has fallen to a very attractive valuation of a forward price-to-sales (P/S) ratio of 7 times the 2025 analyst estimates. Should you buy stock in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $663,630!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,115,695!* Now, it's worth noting Stock Advisor's total average return is 1,071% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Geoffrey Seiler has positions in Alphabet and GitLab. The Motley Fool has positions in and recommends Alphabet, GitLab, Nvidia, and Palantir Technologies. The Motley Fool recommends Broadcom. The Motley Fool has a disclosure policy. 5 Top Artificial Intelligence Stocks to Buy in August was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
