Revenues
Revenues, as disaggregated by revenue type, timing of recognition, and reportable segment (see also Note 4), are shown below (in thousands). | | | | | | | | | | | | | | | | | | | | | | | |
| 2025 |
| Nightclubs | | Bombshells | | Other | | Total |
| Sales of alcoholic beverages | $ | 103,495 | | | $ | 18,629 | | | $ | — | | | $ | 122,124 | |
| Sales of food and merchandise | 22,955 | | | 17,016 | | | — | | | 39,971 | |
| Service revenues | 97,024 | | | 55 | | | — | | | 97,079 | |
| Other revenues | 19,027 | | | 110 | | | 1,123 | | | 20,260 | |
| $ | 242,501 | | | $ | 35,810 | | | $ | 1,123 | | | $ | 279,434 | |
| | | | | | | |
| Recognized at a point in time | $ | 240,813 | | | $ | 35,772 | | | $ | 1,120 | | | $ | 277,705 | |
| Recognized over time | 1,688 | | | 38 | | | 3 | | | 1,729 | |
| $ | 242,501 | | | $ | 35,810 | | | $ | 1,123 | | | $ | 279,434 | |
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| 2024 |
| Nightclubs | | Bombshells | | Other | | Total |
| Sales of alcoholic beverages | $ | 105,669 | | | $ | 27,455 | | | $ | — | | | $ | 133,124 | |
| Sales of food and merchandise | 22,129 | | | 22,477 | | | — | | | 44,606 | |
| Service revenues | 98,233 | | | 222 | | | — | | | 98,455 | |
| Other revenues | 17,833 | | | 424 | | | 1,162 | | | 19,419 | |
| $ | 243,864 | | | $ | 50,578 | | | $ | 1,162 | | | $ | 295,604 | |
| | | | | | | |
| Recognized at a point in time | $ | 242,162 | | | $ | 50,573 | | | $ | 1,162 | | | $ | 293,897 | |
| Recognized over time | 1,702 | | | 5 | | | — | | | 1,707 | |
| $ | 243,864 | | | $ | 50,578 | | | $ | 1,162 | | | $ | 295,604 | |
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| 2023 |
| Nightclubs | | Bombshells | | Other | | Total |
| Sales of alcoholic beverages | $ | 96,325 | | | $ | 30,937 | | | $ | — | | | $ | 127,262 | |
| Sales of food and merchandise | 19,995 | | | 23,911 | | | — | | | 43,906 | |
| Service revenues | 103,217 | | | 360 | | | — | | | 103,577 | |
| Other revenues | 17,211 | | | 515 | | | 1,319 | | | 19,045 | |
| $ | 236,748 | | | $ | 55,723 | | | $ | 1,319 | | | $ | 293,790 | |
| | | | | | | |
| Recognized at a point in time | $ | 234,981 | | | $ | 55,677 | | | $ | 1,274 | | | $ | 291,932 | |
| Recognized over time | 1,767 | | | 46 | | | 45 | | | 1,858 | |
| $ | 236,748 | | | $ | 55,723 | | | $ | 1,319 | | | $ | 293,790 | |
The Company does not have contract assets with customers. The Company’s unconditional right to consideration for goods and services transferred to the customer is included in receivables, net in our consolidated balance sheet. A reconciliation of contract liabilities with customers, included in accrued liabilities in our consolidated balance sheets, is presented below (in thousands):
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| Balance at September 30, 2023 | | Consideration Received (Refunded) | | Recognized in Revenue | | Balance at September 30, 2024 | | Consideration Received | | Recognized in Revenue | | Balance at September 30, 2025 |
| Ad revenue | $ | 49 | | | $ | 422 | | | $ | (440) | | | $ | 31 | | | $ | 417 | | | $ | (403) | | | $ | 45 | |
| Expo revenue | 1 | | | 519 | | | (519) | | | 1 | | | 517 | | | (517) | | | 1 | |
| Other (including franchise fees, see below) | 46 | | | 26 | | | (5) | | | 67 | | | 5 | | | (41) | | | 31 | |
| $ | 96 | | | $ | 967 | | | $ | (964) | | | $ | 99 | | | $ | 939 | | | $ | (961) | | | $ | 77 | |
Contract liabilities with customers are included in accrued liabilities as unearned revenues in our consolidated balance sheets (see also Note 6), while the revenues associated with these contract liabilities are included in other revenues in our consolidated statements of income. On December 22, 2020, the Company signed a franchise development agreement with a group of private investors to open three Bombshells locations in San Antonio, Texas over a period of five years, and the right of first refusal for three more locations in Corpus Christi, New Braunfels, and San Marcos, all in Texas. Upon execution of the agreement, the Company collected $75,000 in development fees representing 100% of the initial franchise fee of the first restaurant and 50% of the initial franchise fee of the second restaurant. The first Bombshells franchised location opened in June 2022. On May 2, 2022, the Company signed a franchise development agreement with a private investor to open three Bombshells locations in the state of Alabama over a period of five years. Upon execution of the agreement, the Company received $50,000 in development fees representing 100% of the initial franchise fee of the first restaurant. In February 2023, the Company purchased the franchised Bombshells unit in San Antonio, Texas, and in September 2024, was sold back to members of the former franchisee group. See Note 16. About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.