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RMCF

Rocky Mountain Chocolate Factory, Inc.

RMCF

Rocky Mountain Chocolate Factory, Inc. • NASDAQ
$1.69 ▲ 0.00% (+0.00)
Market Cap $13.16 M
52w High $3.18
52w Low $1.12
Dividend Yield 0%
P/E -2.73
Volume 26.43K
Outstanding Shares 7.79M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q2-2026 $6.823M ▲ $2.086M ▲ $-662K ▼ -9.702% ▼ $-0.09 ▼ $-126K ▼
Q1-2026 $6.373M ▼ $1.531M ▼ $-324K ▲ -5.084% ▲ $-0.042 ▲ $210K ▲
Q4-2025 $8.899M ▲ $3.356M ▲ $-2.895M ▼ -32.532% ▼ $-0.38 ▼ $-2.49M ▼
Q3-2025 $7.893M ▲ $1.933M ▼ $-847K ▼ -10.731% ▲ $-0.11 $-413K ▲
Q2-2025 $6.38M $1.992M $-722K -11.317% $-0.11 $-430K

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q2-2026 $2.017M ▲ $22.254M ▲ $16.128M ▲ $6.126M ▼
Q1-2026 $893K ▲ $20.096M ▼ $13.364M ▼ $6.732M ▼
Q4-2025 $720K ▼ $21.175M ▼ $14.2M ▲ $6.975M ▼
Q3-2025 $1.089M ▲ $21.634M ▲ $11.8M ▲ $9.834M ▼
Q2-2025 $973K $21.13M $10.605M $10.525M

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q2-2026 $-662K ▼ $-488K ▼ $-188K ▼ $1.8M ▲ $1.124M ▲ $-544K ▼
Q1-2026 $-324K ▲ $350K ▼ $-177K ▲ $0 ▲ $173K ▲ $182K ▲
Q4-2025 $-2.895M ▼ $1.194M ▲ $-1.513M ▼ $-50K ▼ $-369K ▼ $-420K ▲
Q3-2025 $-847K ▼ $-2.119M ▲ $-315K ▼ $2.55M ▼ $116K ▼ $-2.733M ▲
Q2-2025 $-722K $-3.513M $211K $3.638M $336K $-4.63M

Revenue by Products

Product Q3-2025Q4-2025Q1-2026Q2-2026
Franchise and Royalty Fees
Franchise and Royalty Fees
 $0 ▲$0 ▲$0 ▲$0 ▲
Product
Product
 $10.00M ▲$10.00M ▲$0 ▼$10.00M ▲

Five-Year Company Overview

Income Statement

Income Statement Revenue has been broadly flat over the last several years, which suggests the core business is stable but not yet growing in a meaningful way. Profitability, however, is under pressure: gross profit has been thin, operating income has slipped into a small loss most recently, and net results have bounced between roughly break-even and modest losses. Earnings per share have moved further into negative territory in the latest period, which likely reflects both softer margins and the costs of the company’s transformation efforts. Overall, the income statement shows a business in transition, still working to convert a recognizable brand and new strategy into consistent, healthy profits.

Balance Sheet

Balance Sheet The balance sheet is relatively light, consistent with a franchise-heavy, asset-light model, but it has weakened some recently. Cash levels have come down from prior years, and the company has taken on some debt where previously it carried little or none. Shareholders’ equity has edged lower, indicating that recent losses and possibly restructuring costs are eating into the capital base. The picture is not one of a distressed balance sheet, but it also does not show a lot of surplus financial cushion; management likely has limited room for prolonged missteps before further strengthening the balance sheet becomes a priority.

Cash Flow

Cash Flow Operating cash flow has deteriorated, shifting from roughly neutral to negative in the latest period. Free cash flow is also negative, even though capital spending has been modest, suggesting that the core operations are not currently self-funding. This may reflect timing issues around inventory, store upgrades, or the rollout of new systems and prototypes, but it still represents a key risk if it persists. The company seems to be in a phase where it is investing ahead of returns, and the main question is how quickly the transformation can turn cash outflows into durable, recurring inflows.

Competitive Edge

Competitive Edge Rocky Mountain Chocolate Factory benefits from a long-standing brand associated with indulgent, handcrafted chocolate and a memorable in-store experience. The franchise model gives it local operators who are invested in their stores and can extend the brand into many markets without heavy corporate capital spending. Its “retail theater” – making caramel apples, fudge, and other treats in front of customers – provides a differentiated experience that many packaged candy competitors cannot easily match. At the same time, the company operates in a crowded confectionery and dessert market, with intense competition from both global brands and local artisanal shops, and consumer tastes can shift quickly. The durability of its advantage will depend on keeping the brand fresh, maintaining quality, and supporting franchisees so that the customer experience is consistently strong.

Innovation and R&D

Innovation and R&D Innovation at Rocky Mountain Chocolate Factory is focused less on high technology and more on modernizing operations and refreshing the customer experience. The rollout of a new enterprise system, improved demand forecasting, and more efficient supply-chain and logistics arrangements are all aimed at lowering costs, improving product availability, and supporting franchisees. On the customer side, the company is testing a new, more modern store design, expanding product options (including exploring vegan and sugar-free offerings), and leaning into trend-driven products that can generate buzz. A dedicated R&D leader and new supply-chain hires suggest a more systematic approach to product and process improvement. The key uncertainty is whether these operational and experiential upgrades will translate into higher sales per store and better margins fast enough to offset the current financial strains.

Summary

Rocky Mountain Chocolate Factory appears to be in the middle of a significant transformation: the brand and store experience remain core strengths, but the financials show the costs and risks of change. Revenue has been steady rather than growing, profitability is under pressure, and cash flow has recently turned negative, putting some strain on a modest balance sheet. Against this, the company is upgrading its systems, reimagining its stores, expanding its franchise network, and investing in product and supply-chain innovation. The long-term story hinges on whether these initiatives can reinvigorate same-store performance, expand high-quality franchise locations, and convert a strong experiential brand into more reliable earnings and cash generation. Until that becomes clear, the company sits at an inflection point, with both meaningful upside potential and execution risk.

NEWS

November 25, 2025 · 9:00 AM UTC

Rocky Mountain Chocolate Factory Announces Major Growth Surge with Commitments for 34 New Stores

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November 12, 2025 · 8:30 AM UTC

Rocky Mountain Chocolate Factory Celebrates Grand Opening of New Charleston Prototype Store

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October 31, 2025 · 11:45 AM UTC

Rocky Mountain Chocolate Factory to Participate in Upcoming Investor Events

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October 13, 2025 · 4:05 PM UTC

Rocky Mountain Chocolate Factory Reports Second Quarter Fiscal 2026 Financial Results

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October 6, 2025 · 4:05 PM UTC

Rocky Mountain Chocolate Factory Schedules Fiscal Second Quarter 2026 Conference Call for October 14, 2025 at 9:00 a.m. ET

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