Revenue: As of FY2026 Q3, the actual value is USD 7.543 M.EPS: As of FY2026 Q3, the actual value is USD -0.02.EBIT: As of FY2026 Q3, the actual value is USD 319 K.<h3>Segment Revenue and Profit</h3><h4>Three Months Ended November 30, 2025</h4><ul><li>Franchising: Total revenues were $1,211 thousand, with a segment profit of $370 thousand. </li><li>Manufacturing: Total revenues were $5,918 thousand, including $5,715 thousand from external customers, resulting in a segment profit of $865 thousand. </li><li>Retail: Total revenues were $617 thousand, with a segment profit of $105 thousand. </li><li>Unallocated: Reported a segment loss of -$1,258 thousand. </li><li>Consolidated Net Loss: -$155 thousand. </li></ul><h4>Three Months Ended November 30, 2024</h4><ul><li>Franchising: Total revenues were $1,174 thousand, with a segment profit of $271 thousand. </li><li>Manufacturing: Total revenues were $6,640 thousand, including $6,359 thousand from external customers, resulting in a segment profit of $400 thousand. </li><li>Retail: Total revenues were $360 thousand, with a segment profit of $102 thousand. </li><li>Unallocated: Reported a segment loss of -$1,473 thousand. </li><li>Consolidated Net Loss: -$847 thousand. </li></ul><h4>Nine Months Ended November 30, 2025</h4><ul><li>Franchising: Total revenues were $4,506 thousand, with a segment profit of $2,070 thousand. </li><li>Manufacturing: Total revenues were $15,366 thousand, including $14,863 thousand from external customers, resulting in a segment profit of $600 thousand. </li><li>Retail: Total revenues were $1,370 thousand, with a segment profit of $223 thousand. </li><li>Unallocated: Reported a segment loss of -$3,435 thousand. </li><li>Consolidated Net Loss: -$1,141 thousand. </li></ul><h4>Nine Months Ended November 30, 2024</h4><ul><li>Franchising: Total revenues were $3,764 thousand, with a segment profit of $778 thousand. </li><li>Manufacturing: Total revenues were $16,552 thousand, including $15,840 thousand from external customers, resulting in a segment profit of $174 thousand. </li><li>Retail: Total revenues were $1,076 thousand, with a segment profit of $190 thousand. </li><li>Unallocated: Reported a segment loss of -$4,386 thousand. </li><li>Consolidated Net Loss: -$3,227 thousand. </li></ul><h3>Operational Metrics (Consolidated)</h3><h4>Three Months Ended November 30, 2025 vs. 2024</h4><ul><li>Total Revenue: Decreased by 4.4% to $7,543 thousand from $7,893 thousand. </li><li>Durango Product and Retail Sales: Decreased by 5.8% or -$387 thousand. </li><li>Franchise Fees: Increased by 17.3% or $14 thousand. </li><li>Royalty and Marketing Fees: Increased by 2.1% or $23 thousand. </li><li>Total Costs and Expenses: Decreased by 13.2% to $7,461 thousand from $8,593 thousand. </li><li>Cost of Sales: Decreased by 17.6% or -$1,065 thousand. </li><li>Franchise Costs: Decreased by 4.2% or -$26 thousand. </li><li>Sales and Marketing: Decreased by 11.0% or -$30 thousand. </li><li>General and Administrative: Decreased by 18.9% or -$269 thousand, representing 15.4% of total revenues in 2025 compared to 18.1% in 2024. </li><li>Retail Operating Expenses: Increased by 122.2% or $209 thousand. </li><li>Depreciation and Amortization (excluding cost of sales): Increased by 77.8% to $112 thousand from $63 thousand. </li><li>Total Gross Margin: Increased by 100.4% to $1,353 thousand from $675 thousand, with the gross margin percentage increasing to 21.4% from 10.0%. </li><li>Total Adjusted Gross Margin (non-GAAP): Increased by 79.0% to $1,586 thousand from $886 thousand, with the percentage increasing to 25.0% from 13.2%. </li><li>Income (Loss) from Operations: Improved to $82 thousand from -$700 thousand. </li><li>Interest Expense: Increased to -$243 thousand from -$160 thousand. </li></ul><h4>Nine Months Ended November 30, 2025 vs. 2024</h4><ul><li>Total Revenue: Increased by 0.3% to $20,739 thousand from $20,680 thousand. </li><li>Durango Product and Retail Sales: Decreased by 4.0% or -$683 thousand. </li><li>Franchise Fees: Decreased by 14.3% or -$27 thousand. </li><li>Royalty and Marketing Fees: Increased by 21.5% or $769 thousand. </li><li>Total Costs and Expenses: Decreased by 11.0% to $21,281 thousand from $23,924 thousand. </li><li>Cost of Sales: Decreased by 8.7% or -$1,393 thousand. </li><li>Franchise Costs: Decreased by 17.6% or -$372 thousand. </li><li>Sales and Marketing: Decreased by 20.1% or -$169 thousand. </li><li>General and Administrative: Decreased by 26.9% or -$1,153 thousand, representing 15.1% of total revenues in 2025 compared to 20.7% in 2024. </li><li>Retail Operating Expenses: Increased by 44.1% or $249 thousand. </li><li>Depreciation and Amortization (excluding cost of sales): Increased by 136.4% to $338 thousand from $143 thousand. </li><li>Total Gross Margin: Increased by 75.8% to $1,646 thousand from $936 thousand, with the gross margin percentage increasing to 10.1% from 5.5%. </li><li>Total Adjusted Gross Margin (non-GAAP): Increased by 52.8% to $2,344 thousand from $1,534 thousand, with the percentage increasing to 14.4% from 9.1%. </li><li>Income (Loss) from Operations: Improved to -$542 thousand from -$3,244 thousand. </li><li>Interest Expense: Increased to -$621 thousand from -$258 thousand. </li><li>Gain on Disposal of Assets: -$0 thousand in 2025 compared to $254 thousand in 2024. </li></ul><h3>Cash Flow (Nine Months Ended November 30)</h3><ul><li>Net Cash Used in Operating Activities: -$1,378 thousand in 2025 compared to -$7,789 thousand in 2024. </li><li>Net Cash Used in Investing Activities: -$501 thousand in 2025 compared to -$142 thousand in 2024. </li><li>Net Cash Provided by Financing Activities: $1,800 thousand in 2025 compared to $6,938 thousand in 2024. </li><li>Net Decrease in Cash and Cash Equivalents: -$79 thousand in 2025 compared to -$993 thousand in 2024. </li><li>Cash and Cash Equivalents, End of Period: $641 thousand in 2025 compared to $1,089 thousand in 2024. </li></ul><h3>Unique Metrics</h3><ul><li>Number of Stores (Rocky Mountain Chocolate Factory brand as of November 30, 2025): The company operates 3 Company-owned stores, 136 Franchise stores (Domestic), 3 International license stores, 102 Cold Stone Creamery co-branded locations, and 10 U-Swirl co-branded locations. </li><li>Working Capital: Increased to $3.6 million as of November 30, 2025, from $2.4 million as of February 28, 2025. </li><li>Current Ratio: Improved to 1.66 to 1.0 as of November 30, 2025, from 1.34 to 1.0 as of February 28, 2025. </li><li>Capital Expenditures: Totaled $427 thousand for the nine months ended November 30, 2025, a decrease from $2,148 thousand for the same period in 2024. </li></ul><h3>Future Outlook and Strategy</h3>Rocky Mountain Chocolate Factory, Inc. aims to reduce overhead, improve manufacturing efficiencies, and increase profits by aligning costs with sales to its franchise system, specialty market, and e-commerce customers, despite ongoing macroeconomic inflationary trends impacting costs. Strategic initiatives include developing third-party delivery channels, introducing new websites for franchised locations, and implementing a corporate sales strategy to add new stores and facilitate store remodels.

Rocky Mountain Chocolate | 10-Q: FY2026 Q3 Revenue: USD 7.543 M