Core Insights - BAB, Inc. reported a net income of $559,000, or $0.08 per share, for the fiscal year ended November 30, 2025, compared to a net income of $525,000, or $0.07 per share, for the previous year, indicating a growth in profitability [1][7]. Financial Performance - Total revenues for fiscal 2025 were $3,439,000, a decrease of 3.0% from $3,545,000 in fiscal 2024 [1][6]. - Income from operations increased to $722,000 in fiscal 2025, up from $665,000 in 2024, reflecting an increase of 8.6% [2][6]. - The company recorded a tax provision expense of $221,000 for fiscal 2025, compared to $206,000 in fiscal 2024, primarily due to higher income from operations [2][7]. Operating Expenses - Total operating expenses decreased to $2,718,000 in fiscal 2025, down 5.6% from $2,880,000 in fiscal 2024 [3][6]. - The decrease in operating expenses was attributed to several factors, including a $79,000 reduction in employee health plan benefits, a $35,000 decrease in marketing fund expenses, and a $20,000 reduction in professional fees [3][6]. Revenue Breakdown - Royalty fees from franchised stores were $1,984,438, a slight decrease of 0.5% from $1,994,814 in 2024 [6]. - Franchise and area development fee revenue saw a significant decline of 58.1%, dropping to $23,331 from $55,673 [6]. - Licensing fees and other income decreased by 9.0% to $289,348 from $317,992 [6]. - Marketing Fund revenue also decreased by 2.9%, totaling $1,142,281 compared to $1,176,663 in the previous year [6].