RMCF earnings analysis
What we found in RMCF's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Rocky Mountain Chocolate Factory reported disappointing Q4 FY 2026 results, with revenues of $7 million, down 4.1% year-over-year, and a diluted EPS of -$0.41, missing analyst estimates. The company's gross margin drastically declined to 3.7% from 6.9% a year prior, exacerbated by higher operational costs and reduced sales of packaged products.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Q4 Revenue Declines
- Revenue fell to $7M, a 4.1% decrease from $7.3M in Q4 FY 2025.
- EPS Worse than Expected
- Diluted EPS reported at -$0.41, missing consensus estimates by $0.15.
- Gross Margin Deterioration
- Gross margin percentage decreased to 3.7% from 6.9% year-over-year, a 46.9% decline.
- Segment Performance Mixed
- Durango product and retail sales increased by 3.5%, while royalty and marketing fees decreased by 26.1%.
- Increased Operating Loss
- Operating loss widened to $1.0M for Q4 2026 compared to $0.1M in Q4 2025.
- Cash Flow Decline
- Operating cash flow used up $300K, contrasting with a $400K inflow in Q4 FY 2025.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- High Debt Covenants
- Company is not in compliance with a key covenant of 5.3:1.0 compared to permitted 2.0:1.0.
- Substantial Doubt on Going Concern
- Substantial doubt about the company’s ability to continue operations beyond a year as reported.
- Supply Chain Challenges
- Expectations of ongoing higher costs due to inflation and disrupted supply chains impacting revenue.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-0.41
- Gross margin
- 3.7%
- Segment
- Durango product and retail sales growth: +3.5%
- Segment
- Franchise fees decline: -2.8%
- Segment
- Royalty and marketing fees decline: -26.1%
What they said about what is next.
Outlook deferred to earnings press release / call.
The filing reads worse than the one before it.
What came before.
- 10-K · May 29, 2026
- Rocky Mountain Chocolate Factory (RMCF) reported a total revenue of $27.5 million for FY 2026, a decrease of 7% from the previous year, alongside a significant net loss of $4.6 million attributed to higher operational…
- 10-Q · October 14, 2025
- Rocky Mountain Chocolate Factory (RMCF) reported a total revenue of $6.8 million for the second quarter of fiscal 2026, a slight increase from $6.4 million in the previous year, reflecting a growth driven by improved…
- 10-Q · July 15, 2025
- Rocky Mountain Chocolate Factory reported total revenue of $6,373,000 for the three months ended May 31, 2025, roughly flat versus the prior year ($6,407,000) while gross margin expanded materially to 31.1% and the…
- 10-Q · January 15, 2025
- Rocky Mountain Chocolate Factory's Q3 2025 report shows slight revenue growth against both year-ago and prior quarter periods, though net losses remain high. Revenue increased to $7.89 million from $7.70 million…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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