Rocky Mountain Chocolate Factory (RMCF) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 increased to $7.9 million, driven by price increases and operational initiatives, with e-commerce sales nearly tripling year-over-year.

• Net loss was $0.8 million, or $(0.11) per share, consistent with the prior year, while Adjusted EBITDA improved to $41,000 from $(0.3) million.

• Announced new store openings in Chicago, Charleston, and Brandon, completed store transfers, and launched a new ERP system to enhance efficiency.

• Completed the sale and dissolution of the U-Swirl frozen yogurt business to focus on core confectionery franchise operations.

• Secured a $6 million credit facility and raised $2.2 million through a private placement to support growth and liquidity.

Financial highlights

• Q3 2025 revenue was $7.9 million, up from $7.7 million; product sales rose to $6.4 million, franchise and royalty fees were $1.1–$1.2 million.

• Gross margin for the quarter was 10.0%, nearly unchanged from 10.2% last year, with gross profit at $0.7 million.

• Net loss for Q3 was $0.8 million, improved from $8 million last quarter; EBITDA improved to $41,000.

• Cash and cash equivalents stood at $1.1 million at quarter-end, down from $2.1 million at fiscal year-end.

• Working capital increased to $6.9 million, aided by asset sales and new financing.

Outlook and guidance

• Management is focused on reducing overhead, improving manufacturing efficiencies, and increasing gross margins.

• Expects to benefit from seasonal holiday sales, e-commerce, and franchise channel growth.

• Substantial doubt remains about the ability to continue as a going concern, with ongoing efforts to secure supplemental liquidity.