DEERFIELD, Ill., July 10, 2026 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the second quarter ended May 31, 2026.
For the quarter ended May 31, 2026, BAB had revenues of $804,000 and net income of $187,000, or $0.03 per share earnings, versus revenues of $808,000 and net income of $154,000, or a $0.02 per share, for the same quarter last year. Our total revenue for the three months ended May 31, 2026 decreased compared to the prior period due to a decrease in marketing fund expenses, which drive the recognition of marketing fund revenue. Under U.S. GAAP, we recognize marketing fund revenue at the time the related marketing fund expenses are incurred. As marketing fund revenue and expense directly offset each other in any given period, the decline has no impact on net income.
For the six months ended May 31, 2026, revenues were $1,527,000 and net income was $306,000, or $0.04 per share, versus revenues of $1,566,000 and net income of $271,000, or $0.04 per share for the same period in 2025. Our total revenue for the six months ended May 31, 2026 decreased compared to the prior period primarily due to a decrease in marketing fund expenses, which drive the recognition of marketing fund revenue. Under U.S. GAAP, we recognize marketing fund revenue at the time the related marketing fund expenses are incurred. As marketing fund revenue and expense directly offset each other in any given period, the decline has no impact on net income.
Total operating expenses for the three months ended May 31, 2026, were $556,000, versus $608,000, in 2025. The change in operating expenses for the quarter May 31, 2026 was primarily due to a decrease in payroll of $28,000, a decrease in marketing fund expenses of $20,000, a decrease in professional services of $6,000, and a decrease in other expenses of $8,000, partially offset by an increase of $11,000 in depreciation and amortization compared to same period in 2025. Total operating expenses for the six months ended May 31, 2026 were $1,127,000 versus $1,218,000 for May 31, 2025. Marketing expenses accounted for $39,000 of the decrease for the six months of 2026 compared to same period in 2025. In addition, in the six months for May 31, 2026 there was a decrease of $77,000 in payroll expense due to retirement of an employee, offset by an increase in professional fees of $14,000, an increase in depreciation and amortization of $12,000, and an increase in employee benefits of $4,000 compared to same period in 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.
(TABLE FOLLOWS)
| BAB, INC. | |||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||||||
| Quarter Ended | Six Months Ended | ||||||||||||||||||||
| 05/31/26 | 05/31/25 | % Change | 05/31/26 | 05/31/25 | % Change | ||||||||||||||||
| REVENUES | |||||||||||||||||||||
| Royalty fees from franchised stores | - | 520,020 | - | 511,879 | 1.6 | - | - | 985,908 | - | 969,073 | 1.7 | - | |||||||||
| Franchise and area development fee revenue | 7,117 | 3,583 | 98.6 | - | 15,200 | 12,166 | 24.9 | - | |||||||||||||
| Licensing fees and other income | 69,111 | 65,975 | 4.8 | - | 120,872 | 140,353 | -13.9 | - | |||||||||||||
| Marketing Fund Revenue | 207,441 | 227,049 | -8.6 | - | 405,372 | 444,095 | -8.7 | - | |||||||||||||
| Total Revenue | 803,689 | 808,486 | -0.6 | - | 1,527,352 | 1,565,687 | -2.4 | - | |||||||||||||
| OPERATING COSTS AND EXPENSES | |||||||||||||||||||||
| Selling, general and administrative | 336,352 | 379,698 | -11.4 | - | 707,968 | 771,694 | -8.3 | - | |||||||||||||
| Depreciation and amortization | 12,469 | 981 | N/A | 13,839 | 1,961 | N/A | |||||||||||||||
| Marketing Fund Expenses | 207,441 | 227,049 | -8.6 | - | 405,372 | 444,095 | -8.7 | - | |||||||||||||
| Total Expense | 556,262 | 607,728 | -8.5 | - | 1,127,179 | 1,217,750 | -7.4 | - | |||||||||||||
| Income from operations | 247,427 | 200,758 | 23.2 | - | 400,173 | 347,937 | 15.0 | - | |||||||||||||
| Interest expense | - | - | - | - | - | - | |||||||||||||||
| Interest/other income | 12,555 | 13,734 | -8.6 | - | 25,678 | 28,622 | -10.3 | - | |||||||||||||
| Income taxes | (73,100 | - | (60,200 | - | 21.4 | - | (119,800 | - | (106,000 | - | 13.0 | - | |||||||||
| NET INCOME | - | 186,882 | - | 154,292 | 21.1 | - | - | 306,051 | - | 270,559 | 13.1 | - | |||||||||
| Earnings per share - basic and diluted | - | 0.03 | - | 0.02 | N/M | - | 0.04 | - | 0.04 | N/M | |||||||||||
| Average number of shares outstanding | 7,263,508 | 7,263,508 | 7,263,508 | 7,263,508 | |||||||||||||||||
| Contact: | BAB, Inc. Geraldine Conn (847) 948-7520 Fax: (847) 405-8140 www.babcorp.com |
