Doug Garber

Peter Sidoti

Sean Mansouri

- Rocky Mountain Chocolate Factory reported **total revenue of $6.8 million** for the second quarter of fiscal 2026, an increase from $6.4 million in the year-ago quarter.  **[1616262_0001437749-25-030944_ex_869724.htm:0]** **[1616262_0001437749-25-030944_ex_869725.htm:4]** 
- The company posted a **net loss of $0.7 million**, or **$(0.09) per share**, for Q2 fiscal 2026, comparable to the prior year's net loss.  **[1616262_0001437749-25-030944_ex_869724.htm:0]** **[1616262_0001437749-25-030944_ex_869725.htm:4]**  Total product and retail gross profit was a **loss of $33,000**, down from a $600,000 profit in the year-ago quarter, primarily due to higher input costs and operational inefficiencies.  **[1616262_0001437749-25-030944_ex_869724.htm:0]** **[1616262_0001437749-25-030944_ex_869725.htm:4]** 
- Strategic initiatives include a rebrand, new store developments, and operational improvements, supported by new leadership in operations and franchising.  **[1616262_0001437749-25-030944_ex_869724.htm:0]**  The company acquired a company-owned store in Camarillo, California for **$165,000** in August 2025.  **[1616262_0001437749-25-030944_ex_869725.htm:3]** 
- As of August 31, 2025, **cash and cash equivalents increased to $2.0 million** from $0.7 million on February 28, 2025, while **total debt outstanding rose to $7.8 million**.  **[1616262_0001437749-25-030944_ex_869725.htm:4]** **[1616262_0001437749-25-030944_ex_869724.htm:4]**

Rocky Mountain Chocolate Factory Reports Q2 Fiscal 2026 Results Amidst Transformation Efforts

- Rocky Mountain Chocolate Factory (RMCF) reported **total revenue of $6.8 million** for Q2 2026, an increase from $6.4 million in the same period last year, but recorded a **net loss of $0.7 million** or **negative $0.09 per share**.  **[0001616262_2180998_5]** 
- The company is undergoing significant transformation, including **operational improvements** led by a new VP of Operations and a **brand modernization** effort encompassing a new logo, store design, packaging, and website.  **[0001616262_2180998_1]** **[0001616262_2180998_2]** **[0001616262_2180998_3]** 
- RMCF is building a **strong franchise development pipeline**, with new store openings, remodels, and signed agreements, and aims for net positive store growth annually.  **[0001616262_2180998_1]** **[0001616262_2180998_2]** **[0001616262_2180998_5]** 
- Cash on hand increased to **$2 million** as of August 31, 2025, while total debt outstanding rose to **$7.8 million** due to **$1.8 million in new borrowings**.  **[0001616262_2180998_5]** 
- Management anticipates **improved margins** from factory efficiency gains, logistics improvements, and locking in lower cocoa prices, with chocolate representing **40% of raw material costs**.  **[0001616262_2180998_4]** **[0001616262_2180998_7]**

Rocky Mountain Chocolate Factory Reports Q2 2026 Results Amidst Business Transformation

- Rocky Mountain Chocolate Factory, Inc. (RMCF) entered into a new credit agreement with RMCF2 Credit, LLC on **August 28, 2025**, for a principal amount of **$1,200,000.00** at an interest rate of **12% per annum**, with maturity on **September 30, 2027**.  **[1616262_0001437749-25-028281_ex_858529.htm:0]** **[1616262_0001437749-25-028281_rmcfd20250829_8k.htm:1]** 
- RMCF also amended its existing credit agreement with RMC Credit Facility, LLC on **August 28, 2025**, receiving an additional advance of **$600,000.00**, which increased the total principal amount to **$6,600,000.00** at an interest rate of **12% per annum**, also maturing on **September 30, 2027**.  **[1616262_0001437749-25-028281_ex_858533.htm:0]** **[1616262_0001437749-25-028281_rmcfd20250829_8k.htm:1]** 
- The proceeds from both credit facilities will be used for **continued capital investment and working capital needs**.  **[1616262_0001437749-25-028281_rmcfd20250829_8k.htm:1]** 
- Both credit agreements include a waiver of the financial covenant regarding the maximum ratio of total liabilities to total net worth for the fiscal quarters ending **August 31, 2025**, and **November 30, 2025**.  **[1616262_0001437749-25-028281_rmcfd20250829_8k.htm:1]**