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