Rocky Mountain Chocolate Factory, Inc.

Total revenue for fiscal Q4 was $6.8 million versus $8.9 million in the prior-year quarter. Product sales were $5.1 million versus $7.1 million, and franchise and royalty fees were $1.6 million versus $1.8 million. Total product and retail gross profit was negative $0.9 million versus negative $0.8 million last year. Total costs and expenses were $9.8 million versus $11.6 million last year. Net loss was $3.4 million, or $(0.38) per share, versus a net loss of $2.9 million, or $(0.37) per share. For the full year, the company ended with cash of $1.2 million versus $700 thousand at the end of fiscal 2025, inventory of $4.1 million versus $4.6 million, and debt of $6.6 million as of 02/28/2026. For forward commentary, management said the reconfigured packaged product lineup should be on shelves by Labor Day, and it expects improved ecommerce shipping economics after negotiating corporate shipping rates; no formal numeric guidance for next quarter or full year was provided.

Jeffrey Geygan framed the quarter as a miss driven mainly by a packaged-assortment decision that did not match guest preferences, saying accountability for the shortfall rests with him. He emphasized that the company has now done consumer research with more than 1,000 participants, is reworking packaging and assortments, and believes the business transformation remains intact. His tone was defensive about the quarter but confident about the operating reset, highlighting store remodel wins, East Coast expansion, app launch plans, and a more disciplined franchise-development strategy.

Carrie Cass said Q4 revenue declined to $6.8 million from $8.9 million, with product sales down to $5.1 million from $7.1 million and franchise/royalty fees down to $1.6 million from $1.8 million. She pointed to negative product and retail gross profit of $0.9 million versus negative $0.8 million last year, while total costs and expenses improved to $9.8 million from $11.6 million, mainly due to efficiencies from moving consumer packaging back to the Durango facility. On the balance sheet, she said year-end cash was $1.2 million, inventory was $4.1 million, and debt outstanding was $6.6 million.

Analysts focused on how the company chose the original packaged assortment, and management said it was based on then-available store-level sales data that favored large pieces and truffles, not a consumer survey. Another question addressed the specialty-market exit; management said most of that customer’s business occurred in Q4 because specialty accounts are typically seasonal, so the revenue impact was concentrated. On franchise development, management said it already has 40 ADAs queued, with 9 from brand-new developers and 31 from existing franchisees, and that the main constraint is finding qualified multi-unit operators and keeping store build-outs within a target of about 6 months.