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BAB, Inc. Reports Results for 1st Quarter FY 2026

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BAB, Inc. (OTCQB: BABB) reported first quarter fiscal 2026 results for the period ended February 28, 2026. Revenue was $723,663, down 4.4% year-over-year, and net income was $119,168, up 2.5% versus prior year, or $0.02 per share.

Operating expenses fell to $570,918, a 6.4% decrease, while licensing and other income declined and marketing revenue and non-traditional revenue were lower due to vendor timing and reduced rebates.

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Positive

  • None.

Negative

  • Licensing and other income down 30.4%
  • Depreciation and amortization increased 39.8%
  • Interest income declined 11.9%

News Market Reaction – BABB

+1.28%
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+1.28% News Effect

On the day this news was published, BABB gained 1.28%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

DEERFIELD, Ill., April 09, 2026 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the first quarter ended February 28, 2026. For the quarter ended February 28, 2026, BAB had revenues of $724,000 and net income of $119,000, or earnings of $0.02 per share, versus revenues $757,000 and net income of $116,000, or earnings of $0.02 per share, for the same quarter last year.

Royalty revenue increased $9,000 in the first quarter 2026 compared to same quarter 2025. Licensing fees and other income decreased $22,000 in the first quarter of 2026 compared to the same quarter 2025. In the first quarter of 2026 there was a decline in non-traditional revenue of $15,000 due to a temporarily reduced rebate from a vendor and timing of vendor purchases from franchisees compared to same period 2025. In addition, there was a $5,000 reduction in settlement fees and a $2,000 decrease in license fees compared to the same period 2025. Marketing revenue decreased $19,000 in 2026 compared to 2025 which was offset by less marketing spending.

Total operating expenses for the quarter ended February 28, 2026, were $571,000, a decrease of $39,000 from $610,000, from the same quarter 2025. Marketing Fund expenses decreased $19,000 in the first quarter 2026 compared to the same quarter 2025. There was a decrease of $50,000 in payroll and payroll taxes due to the retirement of an employee, offset by an increase in professional fees of $20,000, an increase in employee benefit expense of $5,000 and a $5,000 increase in general expenses compared to February 28, 2025.

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.

(TABLE FOLLOWS)

Contact:BAB, Inc.
Geraldine Conn (847) 948-7520 
Fax: (847) 405-8140
www.babcorp.com


BAB, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
      
      
 Fiscal Quarter Ended
      
 02/28/26 02/28/25 % Change
REVENUES     
      
Royalty fees from franchised stores$465,888  $457,194  1.9%
Franchise fees 8,083   8,583  -5.8%
Licensing fees and other income 51,761   74,378  -30.4%
Marketing fund revenue 197,931   217,046  -8.8%
Total Revenue 723,663   757,201  -4.4%
      
OPERATING COSTS AND EXPENSES     
      
Selling, general and administrative 569,548   609,042  -6.5%
Depreciation and amortization 1,370   980  39.8%
Total Operating Expense 570,918   610,022  -6.4%
      
Income before interest, other and taxes 152,745   147,179  3.8%
      
Interest income 13,123   14,888  -11.9%
Income tax expense (46,700)  (45,800) 2.0%
Net Income$119,168  $116,267  2.5%
      
Earnings per share - basic and diluted$0.02  $0.02   
Average number of shares outstanding 7,263,508   7,263,508   
      



FAQ

What were BABB first quarter FY2026 revenues and net income for the quarter ended February 28, 2026?

BABB reported $723,663 in revenue and $119,168 in net income for Q1 FY2026. According to the company, total revenue fell 4.4% year-over-year while net income rose 2.5% to $0.02 per share.

Why did BABB report lower licensing and other income in Q1 FY2026 compared to Q1 FY2025?

BABB said licensing and other income decreased primarily due to a 30.4% decline year-over-year. According to the company, the drop reflects timing and reduced vendor rebates impacting non-traditional and licensing-related receipts.

How did BABB's operating expenses and key cost items change in Q1 FY2026?

Total operating expenses decreased to $570,918, down 6.4% year-over-year. According to the company, payroll costs fell after an employee retirement, offset by higher professional fees and modest increases in benefits and general expenses.

What happened to BABB's interest income and depreciation in Q1 FY2026 and why does it matter?

Interest income fell 11.9% and depreciation rose 39.8% year-over-year. According to the company, lower interest receipts reduce non-operating income while higher depreciation increases noncash expense, affecting reported operating results.