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BAB, Inc. Reports Results for 3rd Quarter FY 2026

DEERFIELD, Ill., Oct. 09, 2026 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB), announced its financial results for the third quarter ended August 31, 2026.

For the quarter ended August 31, 2026, BAB had revenues of $908,000 and net income of $227,000, or $0.03 per share, versus revenues of $769,000 and net income of $168,000, or $0.02 per share, for the same quarter last year. Total revenue increased $139,000, or 18.1%, compared to the prior-year period. The increase was primarily attributable to a $115,000 increase in marketing fund revenue, which is recognized when the related marketing fund expenses are incurred, as well as increases in royalty fee revenue of $19,000 and licensing fees and other income of $5,000. Because marketing fund revenue and expense directly offset each other in any given period, the increase in marketing fund revenue had no impact on net income.

For the nine months ended August 31, 2026, revenues were $2,435,000 and net income was $533,000, or $0.07 per share, versus revenues of $2,334,000 and net income of $438,000, or $0.06 per share, for the same period in 2025. Total revenue increased $101,000, or 4.3%, compared to the prior-year period. The increase was primarily attributable to increases of $76,000 in marketing fund revenue and $36,000 in royalty fee revenue, partially offset by a $14,000 decrease in licensing fees and other income. Marketing fund revenue is recognized when the related marketing fund expenses are incurred, and the corresponding revenue and expense offset each other with no impact on net income.

Total operating expenses for the three months ended August 31, 2026 were $607,000, compared to $550,000 for the same period in 2025, an increase of $57,000, or 10.4%. The increase was primarily attributable to a $115,000 increase in marketing fund expenses, partially offset by a $58,000 decrease in selling, general and administrative expenses. Total operating expenses for the nine months ended August 31, 2026 were $1,734,000, compared to $1,767,000 for the same period in 2025, a decrease of $33,000, or 1.9%. The decrease was primarily attributable to a $109,000 decrease in selling, general and administrative expenses, partially offset by a $76,000 increase in marketing fund expenses.

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)

Contact: BAB, Inc.
Geraldine Conn (847) 948-7520
Fax: (847) 405-8140
www.babcorp.com
   


BAB, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                       
                       
  Quarter Ended   Nine Months Ended
  08/31/26   08/31/25   % Change   08/31/26   08/31/25   % Change
                       
REVENUES                      
                       
Royalty fees from franchised stores $ 530,868     $ 511,736     3.7 %   $ 1,516,777     $ 1,480,809     2.4 %
Franchise and area development fee revenue   2,987       3,082     -3.1 %     18,187       15,248     19.3 %
Licensing fees and other income   72,134       66,785     8.0 %     193,006       207,138     -6.8 %
Marketing Fund Revenue   301,878       186,930     61.5 %     707,250       631,025     12.1 %
Total Revenue   907,867       768,533     18.1 %     2,435,220       2,334,220     4.3 %
                       
OPERATING COSTS AND EXPENSES                      
                       
Selling, general and administrative   304,405       361,690     -15.8 %     1,012,374       1,133,384     -10.7 %
Depreciation and amortization   300       1,081     N/A       14,139       3,042     N/A  
Marketing Fund Expenses   301,878       186,930     61.5 %     707,250       631,025     12.1 %
Total Expense   606,583       549,701     10.3 %     1,733,763       1,767,451     -1.9 %
                       
Income from operations   301,284       218,832     37.7 %     701,457       566,769     23.8 %
Interest expense   -       -     -       -       -     -  
Interest/other income   13,089       14,597     -10.3 %     38,767       43,219     -10.3 %
Income taxes   (86,996 )     (65,800 )   32.2 %     (206,796 )     (171,800 )   20.4 %
                       
NET INCOME $ 227,377     $ 167,629     35.6 %   $ 533,428     $ 438,188     21.7 %
                       
Earnings per share - basic and diluted $ 0.03     $ 0.02     N/M     $ 0.07     $ 0.06     N/M  
Average number of shares outstanding   7,263,508       7,263,508           7,263,508       7,263,508      
                                       



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