BAB, Inc. Reports Results for 1st Quarter FY 2025

Rhea-AI Summary

BAB, Inc. (OTCQB: BABB) has released its financial results for Q1 FY2025 ended February 28, 2025. The company reported revenues of $757,000, down 9.4% from $836,000 in Q1 2024, while net income increased 18% to $116,000 ($0.02 per share) from $99,000 ($0.01 per share) year-over-year.

Key financial highlights include: royalty fees slightly decreased by 0.5% due to one less day in 2025 (non-leap year), licensing fees declined 30.2% following a one-time terminated contract fee of $36,500 in 2024, and marketing fees decreased by $42,000. Total operating expenses reduced significantly by 14.6% to $610,000, driven by lower marketing fund expenses, reduced provision for credit losses, and decreased employee benefit costs.

Positive

• Net income increased 18% to $116,000
• Earnings per share doubled to $0.02
• Operating expenses reduced significantly by 14.6%
• Income before interest and taxes improved by 20.7%

Negative

• Total revenue declined 9.4% to $757,000
• Royalty fees decreased 0.5% to $457,194
• Licensing fees dropped 30.2% to $74,378
• Marketing fund revenue fell 16.3% to $217,046

DEERFIELD, Ill., April 02, 2025 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the first quarter ended February 28, 2025.

For the quarter ended February 28, 2025, BAB had revenues of $757,000 and net income of $116,000, or earnings of $0.02 per share, versus revenues $836,000 and net income of $99,000, or earnings of $0.01 per share, for the same quarter last year. Royalty revenue decreased $3,000 in the first quarter 2025 compared to same quarter 2024 because 2024 was leap year with the first quarter 2024 having one additional day of sales. Licensing fees and other income decreased $33,000 in the first quarter of 2025 compared to the same quarter 2024. In the first quarter of 2024 there was a terminated contract fee of $36,500 from a coffee vendor. Marketing fees decreased $42,000 in 2025 which was offset by less marketing spending.

Total operating expenses for the quarter ended February 28, 2025, were $610,000, versus $714,000, in the same quarter 2024. Marketing Fund expenses decreased $42,000 in the first quarter 2025 compared to the same quarter 2024. In addition, in the first quarter 2025 the provision for credit losses decreased $23,000, employee benefit expense decreased $21,000 and general expenses decreased compared to the same quarter 2024.

BAB, Inc. franchises and licenses Big Apple Bagels®, My Favorite Muffin®, SweetDuet® frozen yogurt and Brewster’s® Coffee. The Company’s stock is traded on the OTCQB under the symbol BABB and its website can be visited at www.babcorp.com.

Certain statements in this press release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “forecast,” “estimate,” “project,” “intend,” “expect,” “should,” “would,” “believe” and similar expressions and all statements which are not historical facts are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the company’s actual results, performance (financial or operating), or achievements to differ from the future results, performance (financial or operating), or achievements expressed or implied by such forward-looking statements. The above factors are more fully discussed in the company’s SEC filings.

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Contact:	BAB, Inc.
	Michael K. Murtaugh (847) 948-7520
	Fax: (847) 405-8140
	www.babcorp.com

BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
		Fiscal Quarter Ended
		02/28/25				02/29/24				% Change
REVENUES
Royalty fees from franchised stores		$	457,194			$	459,690			-0.5	%
Franchise fees			8,583				10,246			-16.2	%
Licensing fees and other income			74,378				106,587			-30.2	%
Marketing fund revenue			217,046				259,411			-16.3	%
Total Revenue			757,201				835,934			-9.4	%
OPERATING COSTS AND EXPENSES
Selling, general and administrative			609,042				712,974			-14.6	%
Depreciation and amortization			980				980			0.0	%
Total Operating Expense			610,022				713,954			-14.6	%
Income before interest, other and taxes			147,179				121,980			20.7	%
Interest income			14,888				15,525			-4.1	%
Income tax expense			(45,800	)			(39,000	)		17.4	%
Net Income		$	116,267			$	98,505			18.0	%
Earnings per share – basic and diluted		$	0.02			$	0.01
Average number of shares outstanding			7,263,508				7,263,508

FAQ

What was BAB Inc's (BABB) earnings per share in Q1 2025?

BAB Inc reported earnings of $0.02 per share in Q1 2025, doubling from $0.01 per share in Q1 2024.

How much did BABB's total revenue decline in Q1 2025?

BABB's total revenue declined by 9.4%, from $835,934 in Q1 2024 to $757,201 in Q1 2025.

What caused the decrease in BABB's licensing fees for Q1 2025?

Licensing fees decreased by $33,000 primarily due to a one-time terminated contract fee of $36,500 from a coffee vendor in Q1 2024.

How much did BABB reduce its operating expenses in Q1 2025?

BABB reduced its total operating expenses by 14.6%, from $713,954 in Q1 2024 to $610,022 in Q1 2025.