BAB, Inc. Reports Results for 2nd Quarter FY 2026
Rhea-AI Summary
BAB (OTCQB: BABB) reported second quarter FY 2026 results for the period ended May 31, 2026. Quarterly revenue was $803,689, down 0.6% from $808,486 a year earlier, while net income rose 21.1% to $186,882, or $0.03 per share, from $154,292, or $0.02 per share.
Six‑month revenue was $1,527,352, down 2.4% from $1,565,687, but net income increased 13.1% to $306,051, with EPS stable at $0.04. The company said lower marketing fund expenses reduced marketing fund revenue under U.S. GAAP, but these revenues and expenses offset, so the decline did not affect net income.
Royalty fees rose 1.6% for the quarter and 1.7% for six months, and franchise and area development fee revenue nearly doubled in the quarter, up 98.6%. Total operating expenses decreased 8.5% in the quarter and 7.4% year‑to‑date, driven by lower payroll and marketing expenses, partially offset by higher depreciation, amortization and professional fees. Income from operations rose 23.2% for the quarter and 15.0% for six months. BAB franchises and licenses Big Apple Bagels, My Favorite Muffin, SweetDuet frozen yogurt and Brewster’s Coffee.
Positive
- Net income Q2 FY 2026 $186,882, up 21.1% year over year
- Six‑month net income $306,051, up 13.1% versus prior year period
- Income from operations Q2 $247,427, a 23.2% year‑over‑year increase
- Total operating expenses Q2 $556,262, down 8.5% year over year
- Royalty fees from franchised stores Q2 $520,020, up 1.6% year over year
- Franchise and area development fee revenue Q2 $7,117, a 98.6% increase year over year
Negative
- Total revenue Q2 FY 2026 $803,689, a 0.6% year‑over‑year decline
- Six‑month total revenue $1,527,352, down 2.4% from the prior year period
- Licensing fees and other income, six months $120,872, a 13.9% decline year over year
- Marketing fund revenue Q2 $207,441, down 8.6% compared to prior‑year quarter
- Interest/other income, six months $25,678, a 10.3% decrease year over year
News Market Reaction – BABB
In the Jul 10 session, BABB declined 0.29%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
DEERFIELD, Ill., July 10, 2026 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the second quarter ended May 31, 2026.
For the quarter ended May 31, 2026, BAB had revenues of
For the six months ended May 31, 2026, revenues were
Total operating expenses for the three months ended May 31, 2026, were
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)
| BAB, INC. | |||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
| Quarter Ended | Six Months Ended | ||||||||||||||||||||
| 05/31/26 | 05/31/25 | % Change | 05/31/26 | 05/31/25 | % Change | ||||||||||||||||
| REVENUES | |||||||||||||||||||||
| Royalty fees from franchised stores | $ | 520,020 | $ | 511,879 | 1.6 | % | $ | 985,908 | $ | 969,073 | 1.7 | % | |||||||||
| Franchise and area development fee revenue | 7,117 | 3,583 | 98.6 | % | 15,200 | 12,166 | 24.9 | % | |||||||||||||
| Licensing fees and other income | 69,111 | 65,975 | 4.8 | % | 120,872 | 140,353 | -13.9 | % | |||||||||||||
| Marketing Fund Revenue | 207,441 | 227,049 | -8.6 | % | 405,372 | 444,095 | -8.7 | % | |||||||||||||
| Total Revenue | 803,689 | 808,486 | -0.6 | % | 1,527,352 | 1,565,687 | -2.4 | % | |||||||||||||
| OPERATING COSTS AND EXPENSES | |||||||||||||||||||||
| Selling, general and administrative | 336,352 | 379,698 | -11.4 | % | 707,968 | 771,694 | -8.3 | % | |||||||||||||
| Depreciation and amortization | 12,469 | 981 | N/A | 13,839 | 1,961 | N/A | |||||||||||||||
| Marketing Fund Expenses | 207,441 | 227,049 | -8.6 | % | 405,372 | 444,095 | -8.7 | % | |||||||||||||
| Total Expense | 556,262 | 607,728 | -8.5 | % | 1,127,179 | 1,217,750 | -7.4 | % | |||||||||||||
| Income from operations | 247,427 | 200,758 | 23.2 | % | 400,173 | 347,937 | 15.0 | % | |||||||||||||
| Interest expense | - | - | - | - | - | - | |||||||||||||||
| Interest/other income | 12,555 | 13,734 | -8.6 | % | 25,678 | 28,622 | -10.3 | % | |||||||||||||
| Income taxes | (73,100 | ) | (60,200 | ) | 21.4 | % | (119,800 | ) | (106,000 | ) | 13.0 | % | |||||||||
| NET INCOME | $ | 186,882 | $ | 154,292 | 21.1 | % | $ | 306,051 | $ | 270,559 | 13.1 | % | |||||||||
| Earnings per share - basic and diluted | $ | 0.03 | $ | 0.02 | N/M | $ | 0.04 | $ | 0.04 | N/M | |||||||||||
| Average number of shares outstanding | 7,263,508 | 7,263,508 | 7,263,508 | 7,263,508 | |||||||||||||||||
| Contact: | BAB, Inc. Geraldine Conn (847) 948-7520 Fax: (847) 405-8140 www.babcorp.com |
