Rocky Mountain Chocolate Factory, Inc. (RMCF) reported total revenues of $7.5 million for the third quarter of fiscal 2026, down from $7.9 million in the same quarter last year, reflecting a 4.4% decline. The company attributed this decrease to a strategic exit from lower-margin specialty and wholesale channels. However, net losses narrowed to $0.2 million, or $0.02 per share, from a loss of $0.8 million, or $0.11 per share, year-over-year.
Gross manufacturing margin significantly improved to 21.4%, compared to 10% last year. Total costs and expenses decreased by 13.2% to $7.5 million, with savings across several operating categories. Additionally, RMCF’s cash and cash equivalents stood at $0.6 million at the quarter’s end. Following the quarter, the company completed a $2.7 million equity capital raise, used for debt repayment and working capital.
Management emphasized a focus on profitability and long-term growth, despite no formal guidance being issued. Key future growth drivers include improving same-store sales, expanding e-commerce capabilities, and a recent agreement to open 34 new franchise locations within the next four to five years.
