"We've taken meaningful steps to transform and modernize our business and are beginning to see early signs of progress," said Jeff Geygan, Interim CEO of the Company. "During the quarter, we focused on strengthening our operations and laying the groundwork for scalable growth. Our ERP and POS systems are providing us with clearer insight into store performance and customer trends, enabling faster, data-driven decisions. With new leadership in operations and franchising, we are seeing sharper execution, stronger discipline and greater accountability across the organization."
"We're also very encouraged by the launch of our rebrand and new store developments," continued Geygan. "The reimagined store design and updated packaging are elevating the Rocky Mountain Chocolate experience for customers and franchisees alike. We recently announced two new franchise locations at Palladio Mall in Folsom, California, and Jersey Shore Premium Outlets® in New Jersey, further extending our refreshed store concept in key markets. We also added a company-owned location in Camarillo, California, and expect to open our Chicago flagship location around the holidays. Interest from experienced multi-unit operators continues to build, and our development pipeline is the strongest we have seen in a long time. Alongside these initiatives, we are preparing to introduce a new loyalty program and expand our digital capabilities to help franchisees strengthen connections with their customers."
Geygan added, "We're entering the next phase of our transformation with stronger leadership, better visibility across the business, and greater operational discipline. Our initiatives are gaining traction throughout the organization, and we're focused on translating that progress into long-term, sustainable growth. As we move forward, we will continue to build on this foundation through consistent execution and a clear focus on creating sustainable value for all our stakeholders."
Fiscal Second Quarter 2026 Financial Results vs. Year-Ago Quarter
Total revenue increased to $6.8 million for the second quarter of fiscal 2026, compared to $6.4 million in the year-ago quarter, reflecting the benefit of pricing actions and a more profitable sales mix following the Company's exit from lower-margin specialty markets.
Total product and retail gross profit was a loss of $33,000 in the second quarter of fiscal 2026, compared to a profit of $600,000 in the year-ago quarter. The benefit of pricing actions and exiting lower-margin specialty markets was offset by higher input costs, and operational inefficiencies.
Total costs and expenses were $7.3 million in the second quarter of fiscal 2026, which was essentially flat compared to the year-ago quarter.
Net loss was $0.7 million or $(0.09) per share for the second quarter of fiscal 2026, compared to a net loss of $0.7 million or $(0.11) per share in the year-ago quarter.
Conference Call Information
The Company will conduct a conference call to discuss its financial results. A question-and-answer session will follow management's opening remarks. The conference call details are as follows:
Date: Tuesday, October 14, 2025Time: 9:00 a.m. Eastern timeDial-in registration link: hereLive webcast registration link: here
Please dial into the conference call 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting to the conference call, please contact the Company's investor relations team at
The conference call will also be broadcast live and available for replay in the investor relations section of the Company's website at https://ir.rmcf.com/.
About Rocky Mountain Chocolate Factory, Inc.
Rocky Mountain Chocolate Factory, Inc. is a leading franchiser of a premium chocolate and confectionary retail store concept. As America's Chocolatier™, the Company has been producing an extensive line of premium chocolates and other confectionery products, including gourmet caramel apples since 1981. Headquartered in Durango, Colorado, Rocky Mountain Chocolate Factory is ranked among Entrepreneur's Franchise 500® for 2025 and Franchise Times' Franchise 400® for 2024. The Company and its franchisees and licensees operate over 250 Rocky Mountain Chocolate stores across the United States, with several international locations. The Company's common stock is listed on the Nasdaq Global Market under the symbol "RMCF."
Forward-Looking Statements
This press release includes statements of our expectations, intentions, plans, and beliefs that constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to come within the safe harbor protection provided by those sections. These forward-looking statements involve various risks and uncertainties. The statements, other than statements of historical fact, included in this press release are forward-looking statements. Many of the forward-looking statements contained in this document may be identified by the use of forward-looking words such as "will," "intend," "believe," "expect," "anticipate," "should," "plan," "estimate," "potential," "may," "would," "could," "continue," "likely," "might," "seek," "outlook," "explore," or the negative of these terms or other similar expressions. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future, including statements regarding future financial and operating results, our business strategy and plan, our strategic priorities, our store pipeline, and our transformation, are forward-looking statements. Management of the Company believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause the Company's actual results to differ materially from historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to: inflationary impacts, the outcome of legal proceedings, changes in the confectionery business environment, seasonality, consumer interest in our products, receptiveness of our products internationally, consumer and retail trends, costs and availability of raw materials, competition, the success of our co-branding strategy, the success of international expansion efforts, financial covenants in our credit agreements, and the effect of government regulations. For a detailed discussion of the risks and uncertainties that may cause our actual results to differ from the forward-looking statements contained herein, please see the section entitled "Risk Factors" contained in our periodic reports, each filed with the Securities and Exchange Commission.
Investor Contact
Sean Mansouri, CFAElevate
Rocky Mountain Chocolate Factory, Inc. and SubsidiariesCondensed Consolidated Balance Sheets (In thousands, except share and per share amounts)
August 31, 2025(unaudited)
February 28,2025
Assets
Current Assets
Cash and cash equivalents
$
2,017
$
720
Accounts receivable, less allowance for credit losses of $157 and $307, respectively
3,194
3,405
Notes receivable, current portion, less current portion of the allowance for credit losses of $28
73
11
Refundable income taxes
64
64
Inventories
4,136
4,630
Other
699
393
Total current assets
10,183
9,223
Property and Equipment, Net
9,097
9,409
Other Assets
Notes receivable
69
69
Goodwill
576
576
Intangible assets, net
197
210
Lease right of use asset
1,659
1,241
Other
473
447
Total other assets
2,974
2,543
Total Assets
$
22,254
$
21,175
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable
$
4,744
$
4,816
Accrued salaries and wages
372
697
Gift card liabilities
651
