Executive Summary

Q2 FY2025 revenue rose 4% year over year to $2.869M; diluted EPS was $0.04, and Adjusted EBITDA increased 51% to $0.807M, marking the company’s 19th consecutive profitable quarter .
Pizza Inn comps turned positive (+0.8%), while Pie Five comps remained a drag (-11.4%); management emphasized ongoing menu innovation, store reimages, and operational improvements at Pie Five as levers for H2 .
Expenses fell $88K while revenue rose $123K versus Q2 last year, driving pre-tax income to $0.751M; liquidity remained solid with $2.871M cash and $6.045M short-term investments at quarter-end .
No formal guidance or earnings call transcript for Q2 was available; near-term stock catalysts include acceleration in Pizza Inn reimages, the baked pasta launch, and the evolving value promotion strategy piloted for Q3 .

What Went Well and What Went Wrong

What Went Well

Adjusted EBITDA up 51% YoY to $0.807M on a 4% revenue increase and lower expenses; pre-tax income rose 39% YoY to $0.751M .
Pizza Inn comps turned positive (+0.8%); CEO highlighted “19th consecutive quarter of profitability” and 30 signed buffet development agreements, underpinning unit growth potential .
Product innovation and brand updates: new desserts (Stuffed Crust Chocolate Chip Pizzert), baked pastas planned for Q3, a new gift card program, and ongoing reimages (nine units starting; eight expected to finish FY25) .

Quotes:

“Quarter Two represented our 19th consecutive quarter of profitability and we have no plans on letting our foot off the accelerator.” — CEO Brandon Solano .
“Total revenue was up $123 thousand… and total expenses were down $88 thousand.” — CFO Jay Rooney .
“Our new operational format will double make-line capacity… increasing volume at peak hours while… improving the guest experience.” — VP Ops Zack Viljoen (Pie Five) .

What Went Wrong

Pie Five comps fell 11.4%, continuing a brand headwind despite operational changes; unit count was flat at 20 exiting Q2 (then declined to 19 in Q3) .
Limited top-line momentum: Q2 revenue was $2.869M (+4% YoY) but below Q1’s $3.050M; sustained sequential acceleration remains to be proven .
No formal guidance provided; absence of a Q2 earnings call transcript limits visibility into H2 cadence or detailed drivers/risks .

Financial Results

Metric	Q1 2025 (Sep 29, 2024)	Q2 2025 (Dec 29, 2024)	Q3 2025 (Mar 30, 2025)
Revenue ($USD Millions)	$3.050	$2.869	$2.966
Net Income ($USD Millions)	$0.526	$0.607	$0.722
Diluted EPS ($USD)	$0.04	$0.04	$0.05
Income Before Taxes ($USD Millions)	$0.695	$0.751	$0.950
EBITDA ($USD Millions)	$0.656	$0.717	$0.910
Adjusted EBITDA ($USD Millions)	$0.720	$0.807	$0.953
Adjusted EBITDA Margin (%)	23.6%	28.1%	32.1%

YoY/Sequential context:

Q2 revenue +4% YoY (company-reported) ; Q1 and Q3 were flat YoY on revenue .
Sequentially: Q2 revenue declined versus Q1 ($2.869M vs $3.050M) then improved in Q3 ($2.966M) .
Adjusted EBITDA improved each quarter Q1→Q2→Q3 ($0.720M → $0.807M → $0.953M), with margin expanding accordingly .

Segment and KPIs

KPI / Segment	Q1 2025	Q2 2025	Q3 2025
Pizza Inn Comparable Store Sales YoY (%)	-2.1%	+0.8%	+2.5%
Pie Five Comparable Store Sales YoY (%)	-8.7%	-11.4%	-5.6%
Pizza Inn Domestic Units	102	102	98
Pizza Inn International Units	26	27	20
Pie Five Domestic Units	20	20	19
Cash & Cash Equivalents ($USD Millions)	$1.383	$2.871	$0.734
Short-term Investments ($USD Millions)	$7.050	$6.045	$7.987

Non-GAAP reconciliation items (Q2):

Stock-based comp $0.053M; Severance $0.005M; Franchisee default and closed store revenue $0.032M (net) .

Guidance Changes

No formal quantitative guidance was provided for revenue, margins, OpEx, OI&E, tax rate, or segment-specific metrics in Q2 FY2025 materials .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY2025 / Q3	None	None	Maintained (none)
Adjusted EBITDA	FY2025 / Q3	None	None	Maintained (none)
Comps (Pizza Inn, Pie Five)	FY2025 / H2	None	None	Maintained (none)
Tax Rate	FY2025	None	None	Maintained (none)
Dividend	FY2025	None	None	Maintained (none)

Earnings Call Themes & Trends

No Q2 FY2025 earnings call transcript was available; themes below aggregate management commentary from Q1–Q3 press releases.

Topic	Previous Mentions (Q4 FY2024 & Q1 FY2025)	Current Period (Q2 FY2025)	Trend
Development pipeline	Q4: 21 domestic sites contracted; prioritizing Pizza Inn growth . Q1: +4-unit deal; 25 contracted sites; online ordering rollout boosting digital .	CEO cites 30 signed buffet restaurants; opened 4th OK buffet with strong sales .	Expanding pipeline and openings
Store reimage program	Q4: 5 completed, 3 in progress; >25% of buffets targeted by FY2025 .	9 units starting; 8 planned to finish FY2025 .	Accelerating execution
Menu innovation	Q1: Dessert innovation (Sandworm Pizzert) lifted dessert sales; main course innovation planned early next year .	New desserts (Stuffed Crust Chocolate Chip Pizzert); baked pastas coming in Q3 .	Continuing product innovation
Digital & gifting	Q4: new online ordering platform rolled out .	Legacy paper certificates replaced with gift cards ahead of holidays .	Broader digital/gifting toolkit
Pie Five operations	Q1: redesigned flow to reduce service time and increase throughput .	New format to double make-line capacity; focus on peak-hour throughput .	Operational upgrades in flight
Value promotions (Pizza Inn)	—	—	Q3: I$8 weekday buffet pilot driving >20% YoY sales at test stores; rollout planned

Management Commentary

“It’s an exciting time at Pizza Inn… getting ready to grow with 30 buffet restaurants currently signed to development agreements… introduced… stuffed crust chocolate chip Pizzert… expand our restaurant reimage program with nine units starting” — CEO Brandon Solano .
“We continue to innovate… third quarter will see three varieties of baked pastas… Pizza Inn also replaced legacy paper gift certificates with a new gift card program just in time for the holidays.” — CEO Brandon Solano .
“We have a keen focus on operational improvements at Pie Five… new operational format will double make-line capacity… increasing volume at peak hours while… improving the guest experience.” — VP Ops Zack Viljoen .
“Total revenue was up $123 thousand… and total expenses were down $88 thousand… Profit before Tax is now up over 36% from the prior year and our balance sheet remains strong with current assets totaling seven times the amount of current liabilities.” — CFO Jay Rooney .

Q&A Highlights

No Q2 FY2025 earnings call transcript was found; therefore, no Q&A highlights or guidance clarifications were available in our source set [List: 0 earnings-call-transcript for RAVE in 2025].

Estimates Context

Wall Street consensus (S&P Global) data was not available for RAVE for Q2 FY2025 in our session; consequently, we cannot benchmark reported results versus Street estimates. Values retrieved from S&P Global.*

Metric	Q1 2025	Q2 2025	Q3 2025
Primary EPS Consensus Mean	N/A*	N/A*	N/A*
Revenue Consensus Mean ($USD Millions)	N/A*	N/A*	N/A*
Primary EPS – # of Estimates	N/A*	N/A*	N/A*
Revenue – # of Estimates	N/A*	N/A*	N/A*

Key Takeaways for Investors

Positive mix shift: Pizza Inn comps moved back into positive territory; execution on reimages and menu innovation appears to be supporting same-store sales and margin flow-through .
Margin expansion: Adjusted EBITDA and margin improved sequentially and YoY (Q1→Q2→Q3), aided by disciplined cost control and incremental revenue .
Pie Five remains a headwind: despite operational initiatives, comps are still negative; sustained improvement here is a key medium-term swing factor .
Pipeline-backed growth: 30 signed Pizza Inn buffets and expanding reimage cadence offer tangible unit economics and ROI (Q3 reimage ROI ~56%), supporting medium-term thesis .
Liquidity and capital allocation: cash plus short-term investments provide flexibility; note share repurchase of 500K shares ($1.2M) executed in Q3, signaling confidence .
Lack of guidance and limited sell-side coverage reduce near-term visibility; monitor Q3 baked pasta launch and value promotion rollout as potential same-store sales catalysts .
Actionable: track Q4 execution on reimages and promotion rollouts and watch Pie Five comps for confirmation of operational improvements translating into sustainable sales gains .

Sources: Q2 FY2025 8-K/press release and financial statements ; Q3 FY2025 8-K/press release ; Q1 FY2025 press release ; Q4 FY2024 8-K .

RAVE RESTAURANT GROUP, INC. (RAVE)·Q2 2025 Earnings Summary