Rocky Mountain Chocolate Factory(US:RMCF)2026-01-13 21:05Financial Performance - Total revenue for Q3 fiscal 2026 was $7.5 million, down from $7.9 million in the year-ago quarter, reflecting the company's exit from lower-margin channels [5]. - Gross profit increased to $1.4 million in Q3 fiscal 2026 compared to $0.7 million in the year-ago quarter, driven by pricing actions and improved product mix [5]. - Net loss narrowed to $0.2 million or $(0.02) per share in Q3 fiscal 2026, compared to a net loss of $0.8 million or $(0.11) per share in the year-ago quarter [5]. - EBITDA improved to $0.4 million in Q3 fiscal 2026 from a loss of $(0.4) million in the year-ago quarter, attributed to increased gross profit and lower costs [5]. - For the three months ended November 30, FY26, the net loss was $155,000, a decrease from a net loss of $847,000 in FY25 [16]. - EBITDA for FY26 was $427,000, a significant improvement compared to an EBITDA of $(420,000) in FY25 [16]. - Depreciation and amortization increased to $345,000 in FY26 from $274,000 in FY25 [16]. - Interest expenses rose to $237,000 in FY26, up from $153,000 in FY25 [16]. Strategic Initiatives - The company executed a franchise area development agreement to bring 34 new stores to market, indicating strong franchise development momentum [3]. - A $2.7 million equity capital raise was completed to reduce leverage and enhance liquidity for strategic investments [3]. - Over 120 franchise stores are now utilizing the new point-of-sale platform, improving visibility into customer behavior and store performance [4]. - The company is focusing on a margin-first strategy, prioritizing profitability through pricing adjustments and SKU rationalization [2]. Operational Efficiency - Total costs and expenses decreased to $7.5 million in Q3 fiscal 2026 from $8.6 million in the year-ago quarter, with savings across operations [5]. - The company operates over 250 stores across the U.S. and has been recognized in Entrepreneur's Franchise 500® for 2025 [8].