Rocky Mountain Chocolate Factory Reports Preliminary Fourth Quarter and Fiscal Year 2026 Financial Results
Rhea-AI Summary
Rocky Mountain Chocolate Factory (Nasdaq:RMCF) reported preliminary fourth quarter and fiscal 2026 results. 4Q26 revenue is estimated at $6.4–$7.4 million, about 22% lower year over year, while fiscal 2026 revenue is expected at $27.1–$28.1 million, roughly 7% below fiscal 2025.
Preliminary 4Q26 EBITDA is projected at a loss of $2.1–$3.1 million, and fiscal 2026 EBITDA at a loss of $1.6–$2.6 million, an approximately 55% improvement versus fiscal 2025. The company cites pricing, operational and product mix changes, reduction of low- or negative-margin Specialty Markets business, e-commerce transition, and higher litigation-related professional fees as key factors.
Management highlights stronger performance in newer and remodeled stores, including Chicago State Street at about $1 million annualized sales and an 11% post-remodel sales lift in Corpus Christi. RMCF also notes 40 committed future development locations, technology upgrades, and an upcoming Miraculous-branded promotion.
Positive
- Fiscal 2026 EBITDA loss expected to improve about 55% versus fiscal 2025
- Fiscal 2026 revenue projected at $27.1–$28.1 million versus $29.6 million in 2025, showing smaller decline than EBITDA improvement
- Chicago State Street store running at approximately $1 million annualized sales
- Corpus Christi remodel delivered about 11% sales increase after reopening
- Committed future development increased to 40 locations over the next several years
- Expanded upgraded POS, higher third-party delivery penetration, and loyalty/mobile app launch targeted for late summer
Negative
- Fourth quarter 2026 revenue estimated at $6.4–$7.4 million, about 22% below prior year
- Fiscal 2026 revenue projected at $27.1–$28.1 million versus $29.6 million in 2025, about 7% decline
- Fourth quarter 2026 EBITDA loss of $2.1–$3.1 million, about 4% worse year over year
- Deliberate reduction of low or negative-margin Specialty Markets business negatively impacted revenue
- Temporary disruption from e-commerce transition and disposal of outdated packaging affected results
- Elevated professional fees tied to ongoing litigation activities pressured profitability
News Market Reaction – RMCF
In the May 15 session, RMCF declined 16.80%, reflecting a significant negative market reaction. Argus tracked a trough of -7.0% from its starting point during tracking. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility. Trading volume was above average at 1.7x the daily average, suggesting increased trading activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jan 13 | Q3 FY26 earnings | Positive | -7.0% | Revenue dip but gross profit, EBITDA and net loss all improved versus prior year. |
| Oct 13 | Q2 FY26 earnings | Negative | -7.1% | Revenue grew yet gross profit swung to a loss, keeping net losses elevated. |
| Jul 15 | Q1 FY26 earnings | Positive | +1.6% | Flat revenue with materially reduced net loss, lower costs and better EBITDA. |
| Jun 17 | FY25 results | Negative | +26.2% | Revenue increased in Q4 and full year but net losses widened significantly. |
| Jan 14 | Q3 FY25 earnings | Neutral | -20.1% | Modest revenue growth with similar net loss and slightly weaker gross margin. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Across the last 5 earnings releases, RMCF’s average move was about -1.29%, with several downside reactions even when operational metrics showed improvement, suggesting earnings have often been a volatile or cautious catalyst.
Over the past year, RMCF’s earnings updates have tracked its transformation from revenue stability toward improved profitability and mix. Q1–Q3 FY26 reports highlighted flat-to-modest revenue shifts alongside better EBITDA, lower costs and narrowed losses. FY25 results showed revenue growth but wider losses during restructuring. Today’s preliminary Q4/FY26 figures continue this theme of balancing revenue pressure from exiting lower‑margin channels with efforts to enhance gross margin and operational efficiency.
Key Terms
ebitda financial
non-gaap financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
DURANGO, Colo., May 14, 2026 (GLOBE NEWSWIRE) -- Rocky Mountain Chocolate Factory, Inc. (Nasdaq: RMCF) (the “Company”, “RMCF”, or “Rocky Mountain Chocolate Factory”), America’s Chocolatier™ today announced preliminary financial and operational results for its fourth quarter and fiscal year ended February 28, 2026.
Fourth Quarter and Fiscal Year 2026 Preliminary Financial Results
The following ranges are based on preliminary, unaudited estimates, and the Company expects to report final audited results within these ranges:
| 4Q25 | 4Q26 | ∆% * | FY25 | FY26 | ∆% * | |||||||
| Total Revenue ($M) | $ | 8.9 | (22 | %) | $ | 29.6 | (7 | %) | ||||
| EBITDA ($M) ** | $ | (2.5 | ) | ( | (4 | %) | $ | (4.7 | ) | ( | 55 | % |
*The percentages shown represent the year-over-year change calculated using the midpoint of the estimated ranges.
**Non-GAAP measure.
“While our fourth quarter results were below expectations, we continued to make meaningful progress executing the operational and strategic initiatives designed to improve profitability and position the business for sustainable long-term growth,” said Jeff Geygan, Interim CEO. “Over the past year, we implemented multiple pricing, operational and product mix adjustments that materially improved the underlying economics of the business moving closer to our long-term target range product gross margin.”
“During the quarter, we made the deliberate decision to reduce certain low or negative-margin Specialty Markets business, which negatively impacted revenue but supported stronger overall margin performance and improved product mix. Results were also impacted by temporary disruption associated with our e-commerce transition, disposal of packaging with outdated branding, and elevated professional fees related to ongoing litigation activities.”
“We continue to see encouraging performance trends across our retail footprint, particularly in newer-format and remodeled stores. Our Chicago State Street location is performing at an approximate
“In parallel,” Geygan continued, “we are advancing multiple initiatives to strengthen customer engagement and support future growth across both franchise and company-owned channels. We expanded deployment of our upgraded POS platform, increased third-party delivery penetration and continued development of our loyalty and mobile app ecosystem, with the new app expected to launch late summer. At the same time, we remain focused on additional opportunities to optimize our cost structure and improve operating efficiency.”
“Looking ahead, development activity across the system is encouraging. We recently added a new six-store area development agreement, increasing committed future development to 40 locations over the next several years. We continue to advance new store opportunities in key growth markets, including Miami and Chicago, while preparing for upcoming openings in New Jersey, California and Houston International Airport.”
“Additionally, we are positioning for the rollout of an upcoming collaboration with Miraculous, the popular animated children’s series. This promotion will feature a limited-time caramel apple offering and immersive in-store merchandising designed to create a highly visual and engaging customer experience. We believe these initiatives reflect continued momentum in strengthening the Rocky Mountain Chocolate Factory brand and positioning the Company for improved long-term financial performance.”
*The financial information in this press release is preliminary, unaudited, based on currently available information, and subject to adjustment in the final financial statements to be filed with the Company’s Annual Report on Form 10-K for the twelve months ended February 28, 2026.
About Rocky Mountain Chocolate Factory, Inc.
Rocky Mountain Chocolate Factory, Inc. is a leading franchisor of premium chocolate and confectionary retail store concept. As America’s Chocolatier™, the Company has been producing an extensive line of premium chocolates and other confectionery products, including gourmet caramel apples since 1981. Headquartered in Durango, Colorado, Rocky Mountain Chocolate Factory is ranked among Entrepreneur’s Franchise 500® for 2026. The Company and its franchisees and licensees operate over 250 Rocky Mountain Chocolate stores across the United States the Company's common stock is listed on the Nasdaq Global Market under the symbol "RMCF."
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding anticipated benefits of the company’s omnichannel strategy and multi-year transformation strategy, including the Company's corporate-operated store located in Nashville, Tennessee at Opry Mills, our new point-of-sale platform, the recently launched third-party delivery and catering service integration. Forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties are described in the company’s filings with the Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q. The Company undertakes no obligation to update any forward-looking statements except as required by law.
Investor Contact
Sean Mansouri, CFA
Elevate IR
720-330-2829
RMCF@elevate-ir.com
| Rocky Mountain Chocolate Factory, Inc. and Subsidiaries Condensed Consolidated Computation of EBITDA (In Thousands – Unaudited) Three and Twelve Months Ended February 28, 2026 | ||||||||||||
| ($ in Thousands USD) | ||||||||||||
| 4Q25 | 4Q26 | FY25 | FY26 | |||||||||
| Net Loss | ( | ) | ( | ( | ) | ( | ||||||
| Depreciation & Amortization | ||||||||||||
| Interest | ||||||||||||
| EBITDA | ($2,490 | ) | ( | ($4,718 | ) | ( | ||||||
