BAB, Inc. Reports Results for 3rd Quarter FY 2026

Marketing fund revenue growth had no net-income impact, while administrative expenses declined in both reporting periods.

Rhea-AI Summary

BAB (BABB) reported third-quarter net income of $227,377, up 35.6% year over year, for the quarter ended August 31, 2026. Revenue rose 18.1% to $907,867, while basic and diluted earnings per share increased to $0.03 from $0.02. Operating income rose 37.7% to $301,284.

For the nine months ended August 31, 2026, revenue increased 4.3% to $2,435,220. Net income rose 21.7% to $533,428, and earnings per share increased to $0.07 from $0.06. Operating income increased 23.8% to $701,457.

Marketing fund revenue accounted for most revenue growth but was matched by marketing expenses, with no net-income impact. Selling, general and administrative expenses fell 15.8% in the quarter and 10.7% over nine months. Total operating expenses rose 10.3% to $606,583 in the quarter but declined 1.9% to $1,733,763 over nine months.

8 points · 0 major

PositiveiHow this balance works

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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

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0 major · 5 points

How the balance works

Positive

• Moderate pointQuarterly net income rose 35.6% to $227,377; nine-month net income increased 21.7% to $533,428 year over year.
• Moderate pointQuarterly operating income increased 37.7% to $301,284; nine-month operating income rose 23.8% to $701,457 year over year.
• Moderate pointRoyalty revenue grew 3.7% to $530,868 quarterly and 2.4% to $1,516,777 over nine months, year over year.
• Moderate pointSelling, general and administrative expenses fell 15.8% to $304,405 quarterly and 10.7% to $1,012,374 over nine months.
• Minor pointQuarterly basic and diluted EPS increased to $0.03 from $0.02; nine-month EPS reached $0.07 from $0.06.

3 minor points

• Minor pointQuarterly licensing fees and other income increased 8.0% to $72,134 year over year.
• Minor pointNine-month franchise and area development fee revenue increased 19.3% to $18,187 year over year.
• Minor pointQuarterly depreciation and amortization declined to $300 from $1,081 a year earlier.

Negative

• Minor pointNine-month licensing fees and other income declined 6.8% to $193,006 year over year.
• Minor pointQuarterly franchise and area development fee revenue declined 3.1% to $2,987 year over year.
• Minor pointInterest and other income fell 10.3% year over year in both periods, to $13,089 quarterly and $38,767 over nine months.
• Minor pointIncome taxes increased 32.2% to $86,996 quarterly and 20.4% to $206,796 over nine months, year over year.
• Minor pointNine-month depreciation and amortization increased to $14,139 from $3,042 a year earlier.

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DEERFIELD, Ill., Oct. 09, 2026 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the third quarter ended August 31, 2026.

For the quarter ended August 31, 2026, BAB had revenues of $908,000 and net income of $227,000, or $0.03 per share, versus revenues of $769,000 and net income of $168,000, or $0.02 per share, for the same quarter last year. Total revenue increased $139,000, or 18.1%, compared to the prior-year period. The increase was primarily attributable to a $115,000 increase in marketing fund revenue, which is recognized when the related marketing fund expenses are incurred, as well as increases in royalty fee revenue of $19,000 and licensing fees and other income of $5,000. Because marketing fund revenue and expense directly offset each other in any given period, the increase in marketing fund revenue had no impact on net income.

For the nine months ended August 31, 2026, revenues were $2,435,000 and net income was $533,000, or $0.07 per share, versus revenues of $2,334,000 and net income of $438,000, or $0.06 per share, for the same period in 2025. Total revenue increased $101,000, or 4.3%, compared to the prior-year period. The increase was primarily attributable to increases of $76,000 in marketing fund revenue and $36,000 in royalty fee revenue, partially offset by a $14,000 decrease in licensing fees and other income. Marketing fund revenue is recognized when the related marketing fund expenses are incurred, and the corresponding revenue and expense offset each other with no impact on net income.

Total operating expenses for the three months ended August 31, 2026 were $607,000, compared to $550,000 for the same period in 2025, an increase of $57,000, or 10.4%. The increase was primarily attributable to a $115,000 increase in marketing fund expenses, partially offset by a $58,000 decrease in selling, general and administrative expenses. Total operating expenses for the nine months ended August 31, 2026 were $1,734,000, compared to $1,767,000 for the same period in 2025, a decrease of $33,000, or 1.9%. The decrease was primarily attributable to a $109,000 decrease in selling, general and administrative expenses, partially offset by a $76,000 increase in marketing fund expenses.

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

BAB, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
	Quarter Ended											Nine Months Ended
	08/31/26				08/31/25				% Change			08/31/26				08/31/25				% Change
REVENUES
Royalty fees from franchised stores	$	530,868			$	511,736			3.7	%		$	1,516,777			$	1,480,809			2.4	%
Franchise and area development fee revenue		2,987				3,082			-3.1	%			18,187				15,248			19.3	%
Licensing fees and other income		72,134				66,785			8.0	%			193,006				207,138			-6.8	%
Marketing Fund Revenue		301,878				186,930			61.5	%			707,250				631,025			12.1	%
Total Revenue		907,867				768,533			18.1	%			2,435,220				2,334,220			4.3	%
OPERATING COSTS AND EXPENSES
Selling, general and administrative		304,405				361,690			-15.8	%			1,012,374				1,133,384			-10.7	%
Depreciation and amortization		300				1,081			N/A				14,139				3,042			N/A
Marketing Fund Expenses		301,878				186,930			61.5	%			707,250				631,025			12.1	%
Total Expense		606,583				549,701			10.3	%			1,733,763				1,767,451			-1.9	%
Income from operations		301,284				218,832			37.7	%			701,457				566,769			23.8	%
Interest expense		-				-			-				-				-			-
Interest/other income		13,089				14,597			-10.3	%			38,767				43,219			-10.3	%
Income taxes		(86,996	)			(65,800	)		32.2	%			(206,796	)			(171,800	)		20.4	%
NET INCOME	$	227,377			$	167,629			35.6	%		$	533,428			$	438,188			21.7	%
Earnings per share - basic and diluted	$	0.03			$	0.02			N/M			$	0.07			$	0.06			N/M
Average number of shares outstanding		7,263,508				7,263,508							7,263,508				7,263,508

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were BAB (BABB)'s third-quarter fiscal 2026 earnings?

BAB earned $227,377, or $0.03 per basic and diluted share, in the quarter ended August 31, 2026. Net income increased 35.6% from $167,629 a year earlier, when earnings per share were $0.02.

How much revenue did BAB (BABB) report for the third quarter of fiscal 2026?

BAB reported quarterly revenue of $907,867, up 18.1% from $768,533 a year earlier. Marketing fund revenue, which is matched by corresponding expenses and does not affect net income, accounted for most of the increase.