Rocky Mountain Chocolate Factory posted first quarter fiscal 2027 results for the period ended May 31, 2026, reporting total revenue of $6.1 million and a net loss of $1.2 million, or $(0.12) per share. The company recorded EBITDA of $(0.6) million and total costs and expenses of $7.1 million for the quarter. Management highlighted efforts to improve production, fulfillment and distribution while pursuing higher-margin product opportunities and addressing the company’s debt and working capital structure.

Financial Highlights

  • Total revenue: $6.1 million for the three months ended May 31, 2026 (compared with $6.4 million in Q1 FY2026).
  • Total product and retail gross profit: $0.2 million in Q1 FY2027 (compared with $0.3 million in Q1 FY2026).
  • Total costs and expenses: $7.1 million in Q1 FY2027, up from $6.5 million in Q1 FY2026.
  • Net loss: $1.2 million, or $(0.12) per share, for Q1 FY2027 (compared with net loss of $0.3 million, or $(0.04) per share, in Q1 FY2026).
  • EBITDA: $(0.6) million for Q1 FY2027 (compared with $0.2 million in Q1 FY2026).

Business Highlights

  • Durango product and retail sales increased approximately 3% year-over-year driven by price increases, while royalty and marketing fees declined under revised franchise agreements.
  • Company expanded its operated store base from two to four company-owned stores, contributing to higher retail operating costs.
  • Investments and higher general and administrative costs tied to rollout of a franchise website and a third-party delivery platform.
  • Management priorities include improving production, strengthening fulfillment and distribution, pursuing higher-margin product opportunities, and evaluating options to address debt structure and working capital.
  • Interim leadership in place with a focus on execution, franchisee support and restoring brand momentum.

Original SEC Filing:

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