RMCF Rocky Mountain Chocolate Factory, Inc.

Overview and Growth

Rocky Mountain Chocolate Factory, Inc. generated $27.50M of revenue in fiscal 2026, with net loss of $4.56M and an operating cash outflow of $1.81M. The $27.50M revenue base provides substantial context for the company’s earnings, cash generation, and capital requirements. Revenue was 7.0% below fiscal 2025 revenue of $29.58M, marking a top-line contraction. The company reported diluted EPS of -$0.56, adding a shareholder-level measure to the absolute income figures considered below. Total assets stood at $20.21M, showing the scale of resources supporting revenue, earnings, liquidity, and financing. The revenue-to-assets relationship was 1.36x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

Gross profit was $6.85M, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. Gross margin was 24.9%, so that share of each revenue unit remained after the cost of revenue reported for the period. The company recorded an operating loss of $3.59M after the reported operating expense base. The operating loss equaled 13.0% of revenue, showing the scale of the operating deficit relative to sales. The company ended the period with a net loss of $4.56M, extending the operating result through all remaining items. The net loss equaled 16.6% of revenue, showing the bottom-line deficit relative to the company’s sales base. The company reported negative EBITDA of $3.10M, adding a pre-interest, tax, depreciation, and amortization view of the operating shortfall. Before income taxes, the company recorded a loss of $4.37M, bridging the operating result to the final net loss. Measured against revenue, the pretax deficit represented 15.9%. Income tax expense totaled $187.00K, providing the reported tax component that separates pretax and after-tax earnings. The loss-to-equity relationship was 87.2%, placing the bottom-line deficit against shareholder capital. Relative to total assets, the net loss represented 22.6%. Compared with a $6.12M net loss in fiscal 2025, the current loss improved to $4.56M.

Liquidity and Capital Structure

Total assets were $20.21M, supported by $14.98M of liabilities and $5.23M of shareholder equity. The near-term balance sheet paired $8.77M of current assets with $6.79M of current liabilities at the reporting date. Current assets covered current liabilities by 1.29x, leaving a positive buffer for near-term obligations. Cash and equivalents totaled $1.22M, identifying the most liquid reported component available within the broader current-asset balance. Cash and equivalents represented 17.9% of current liabilities, showing the portion of near-term obligations matched by reported cash alone. Equity equaled 25.9% of assets, showing the shareholder-capital layer within the company’s balance sheet. Liabilities represented 74.1% of total assets, quantifying the liability-funded share of the company’s resource base. The cash-to-assets relationship was 6.0%, comparing reported cash and equivalents with the full positive asset balance. Total assets were 4.5% lower than fiscal 2025 assets of $21.18M, measuring the company’s own balance-sheet change. Reported equity changed 25.0% from $6.97M in fiscal 2025, placing the current capital base lower year over year. The reported cash balance changed 69.2% from $720.00K in fiscal 2025, ending higher year over year.

Cash Flow and Earnings Quality

The company reported an operating cash outflow of $1.81M, rather than cash generation from operations. Capital expenditures used $569.00K in addition to the operating cash outflow, increasing the total cash consumed by operations and investment during the period. Operating cash flow and capital spending combined to leave a $2.38M cash deficit after capital spending. The free-cash-flow deficit equaled 8.7% of revenue, showing the post-investment cash shortfall relative to sales. The free-cash-flow deficit equaled 11.8% of total assets, placing the cash shortfall against the company’s resource base.

Based on the annual report for the fiscal year ending Feb 28, 2026. Analysis generated Sep 24, 2026.