Noble Romans, Inc.: Noble Roman's Announces Significant Second Quarter Earnings Growth and Other Company Highlights

INDIANAPOLIS, IN / ACCESS Newswire / August 21, 2025 / Noble Roman's, Inc. (OTCQB:NROM), the Indianapolis based franchisor of Noble Roman's Pizza and Noble Roman's Craft Pizza & Pub, today announced second quarter 2025 financial data, other recent company highlights, and details for a conference call to be held on August 25^th at 4 PM ET.

Financial highlights from the second quarter of 2025 include:

• Net Income Before Taxes grew substantially to $490,417 versus $56,858 for the same period in 2024. Net Income Before Taxes is a key metric since the company will not pay income taxes for a number of years due to its roughly $3.4 million Deferred Tax Asset.

• Total Revenue of $4.1 million versus $3.9 million for the same period in 2024, an increase of 4.5%.

• Same stores sales increase in the company-owned Craft Pizza & Pub segment of 4.5% versus the same period in 2024, despite lackluster industry trends and consumer sentiment. The margin contribution rate increased in the second quarter of 2025 to 13.6% from 11.0% for the same period in 2024.

• The margin contribution from the company's Convenience Store Pizza Program segment was $1,059,506 in 2025 versus $975,054 for the same period in 2024. The margin contribution rate increased in the second quarter of 2025 to 72.5% versus 67.9% for the same period in 2024. Expenses in this segment remain relatively stable over significant increments in revenue, so the margin rate increases as overall segment revenue increases.

Financial highlights from the first six months of 2025 include:

• Net Income Before Taxes of $662,303 versus a net loss of $29,619 for the same period in 2024. The company will not pay income taxes for a number of years due to its roughly $3.4 million Deferred Tax Asset.

• Total Revenue of $7.84 million versus $7.57 million for the same period in 2024, an increase of 3.6%.

• Same stores sales increase in the company-owned Craft Pizza & Pub segment of 3.0% versus the same period in 2024, despite unusually inclement weather during the first quarter of 2025 and lackluster consumer sentiment. The margin contribution rate increased in the first six months of 2025 to 10.2% from 9.7% for the same period in 2024.

• The contribution margin from the company's Convenience Store Pizza Program segment was $1,958,967 in 2025 versus $1,910,678 for the same period in 2024. The contribution margin rate increased in the first six months of 2025 to 67.5% versus 66.8% for the same period in 2024. Expenses in this segment remain relatively stable over significant increments in revenue, so the margin rate increases as overall segment revenue increases.

Additional company highlights:

• Trailing 12-month EBITDA for the year 2024 was approximately $3,060,000; trailing 12-month EBITDA for the period ended March 31, 2025 was approximately $3,135,000; and trailing 12-month EBITDA for the period ended June 30, 2025 was approximately $3,501,000.

• Same store sales in the company-owned Craft Pizza & Pub segment continued to rise into the third quarter of 2025 by 4.8% in July, despite the fact that July 2025 sales were negatively impacted with the 4^th of July holiday falling on a Friday in 2025. This negatively impacted Friday and Saturday sales, which are typically the two strongest sales days of the week.

• In July, the company introduced its new "Xtra-Stuffed Crust" promotional pizza into its Craft Pizza & Pub segment to slipstream behind the marketing efforts of national competitors promoting a similar product. The Craft Pizza & Pub rendition focuses on extra quality and extra cheese in the stuffed crust ring, using real Mozzarella, Muenster and oregano in the crust ring rather than string cheese.

• Year-to-date through June 30, 2025, the company has sold seven more franchised Pizza Program units in 2025 than it had opened during that same period, adding to the backlog of sold but unopened units that should contribute significantly to increases franchising revenue. Additionally, the company has a significant pipeline of active prospects for new franchised Pizza Program unit sales.

• As previously announced, the company fairly recently retained the services of a new placement agent to assist in obtaining new financing for the company, which is progressing positively with several prospects currently in various stages of opportunity analysis. Among other uses, proceeds would be used to retire the current senior loan with Corbel Capital Partners SBIC, L.P., along with their outstanding warrants (which Corbel has indicated their desire to accomplish as well), the company's subordinated notes, and the cost of the capital raise. As previously announced, in April 2025 the company entered into an agreement with Corbel to extend the maturity of their loan to the company until June 30, 2026.

• As previously announced, the Board of Directors of the company will be evaluating alternative independent accountants to serve as the company's auditor for 2025. The report on the consolidated balance sheet of the company and its subsidiaries as of December 31, 2024, and the related consolidated statements of operations, changes in stockholders' equity, and cash flows for the year ended December 31, 2024, and the related notes, provided by the company's auditor for 2024 did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope, or accounting principles. The auditors for the December 31, 2023 audit expressed an unqualified and unmodified opinion on those statements as well.

Conference Call details:

The company will host a conference call on Monday, August 25th from 4:00 to 4:30 PM ET. Those interested in participating in the conference call should dial in at 317-300-7896 and use the participation code 499795 (no pin number required). Callers who supplied their first and last names when joining the call will press 5* to ask questions when Q&A time is announced.

The statements concerning the company's future revenues, profitability, financial resources, financing efforts, market demand and product development are forward-looking statements (as such term is defined in the Private Securities Litigation Reform Act of 1995) relating to the company that are based on the beliefs of the management of the company, as well as assumptions and estimates made by and information currently available to the company's management. The company's actual results in the future may differ materially from those indicated by the forward-looking statements due to risks and uncertainties that exist in the company's operations and business environment, including, but not limited to competitive factors and pricing and cost pressures, the company's ability to service its loan and refinance the Senior Note before its maturity in 2026, the emergence or spread of human or animal pandemics (such as COVID-19 or the Avian Influenza), non-renewal of franchise agreements or the openings contemplated by the Development Agreement not occurring, shifts in market demand, the success of franchise programs, general economic conditions and national or international events, changes in demand for the company's products or franchises, the impact of franchise regulation, the success or failure of individual franchisees, inflation, other changes in prices or supplies of food ingredients and labor and as well as the factors discussed under "Risk Factors" contained in the Annual Report on Form 10-K. Should one or more of these risks or uncertainties materialize, or should underlying assumptions or estimates prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected or intended. If activist stockholder activities ensue, or if certain parties (acting individually or as a group) seek to continue or initiate interference in the company's business relationships, the company business could be adversely impacted.

FOR ADDITIONAL INFORMATION, CONTACT:

For Media Information: Scott Mobley, President & CEO ([e-mail])
For Investor Relations: Paul Mobley, Executive Chairman ([e-mail])
Mike Cole, Investor Relations: 949-444-1341 ([e-mail])

Noble Roman's, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited and Not Reviewed)

Assets		December 31, 2024				June 30, 2025
Current assets:		(not reviewed)				(not reviewed)
Cash		$	710,227			$	635,629
Employee Retention Tax Credit Receivable			507,726				507,726
Accounts receivable - net			586,554				662,624
Inventories			986,975				1,003,365
Prepaid expenses			194,902				231,149
Total current assets			2,986,384				3,040,493
Property and equipment:
Equipment			4,349,205				4,398,834
Leasehold improvements			3,142,591				3,156,209
			7,491,796				7,555,043
Less accumulated depreciation and amortization			3,583,276				3,779,783
Net property and equipment			3,908,520				3,775,260
Deferred tax asset			3,532,199				3,371,410
Deferred contract cost			1,604,952				1,682,831
Goodwill			278,466				278,466
Operating lease right of use assets			4,154,804				3,746,195
Other assets including long-term portion of receivables - net			303,922				333,943
Total assets		$	16,769,247			$	16,228,598
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses		$	840,848			$	562,932
Current portion of operating lease liability			870,140				976,414
Current portion of Corbel loan payable			1,066,668				1,100,004
Warrant liability			538,822				538,822
Total current liabilities			3,316,478				3,178,172
Long-term obligations:
Term loan payable to Corbel net of current portion			5,551,738				5,084,293
Convertible notes payable			575,000				575,000
Operating lease liabilities - net of short-term portion			3,505,718				2,971,443
Deferred contract income			1,604,952				1,682,833
Total long-term liabilities			11,237,408				10,313,569
Total liabilities		$	14,553,886			$	13,491,741
See Note 9 regarding Contingencies
Stockholders' equity:
Common stock - no par value (40,000,000 shares authorized, 22,215,512 issued and outstanding as of December 31, 2024 and as of June 30, 2025)			24,867,778				24,887,761
Accumulated deficit			(22,652,417	)			(22,150,904	)
Total stockholders' equity			2,215,361				2,736,857
Total liabilities and stockholders' equity		$	16,769,247			$	16,228,598

See accompanying notes to condensed consolidated financial statements (unaudited).

Noble Roman's, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited and Not Reviewed)

		Three months ended June 30, (not reviewed)								Six months ended June 30, (not reviewed)
		2024				2025				2024				2025
Revenue:
Restaurant revenue - company-owned Craft Pizza & Pub		$	2,222,551			$	2,324,459			$	4,218,075			$	4,343,877
Restaurant revenue - company-owned non-traditional			236,705				295,025				474,852				589,598
Franchising revenue			1,435,748				1,454,251				2,861,039				2,900,159
Administrative fees and other			9,673				6,654				16,817				6,954
Total revenue			3,904,678				4,080,389				7,570,783				7,840,588
Operating expenses:
Restaurant expenses - company-owned Craft Pizza & Pub			1,978,273				2,009,183				3,809,717				3,899,870
Restaurant expenses - company-owned non-traditional			235,288				274,483				461,048				567,593
Franchising expenses			460,694				394,745				950,361				941,192
Total operating expenses			2,674,255				2,678,411				5,221,126				5,408,655
Depreciation and amortization			96,300				100,983				192,565				197,049
General and administrative expenses			570,129				386,260				1,147,416				810,665
Defense against activist shareholder			6,064				736				19,542				8,580
Total expenses			3,346,748				3,166,390				6,580,649				6,424,949
Operating income			557,930				913,999				990,134				1,415,639
Interest expense			435,184				423,582				829,365				753,336
Change in fair value of warrants			65,888				-				190,388				-
Income (loss) before income taxes			56,858				490,417				(29,619	)			662,303
Income tax			-				119,537				-				160,789
Net income (loss)		$	56,858			$	370,880			$	(29,619	)		$	501,514
Earnings (loss) per share - basic:
Net income (loss)		$	.00			$	.02			$	(.00	)		$	.02
Weighted average number of common shares outstanding			22,215,512				22,215,512				22,215,512				22,2215,512
Diluted earnings (loss) per share:
Net income (loss)		$	.00			$	.02			$	(.00	)		$	.02
Weighted average number of common shares outstanding			23,713,531				25,008,223				22,215,512				25,008,223

SOURCE: Noble Romans, Inc.

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