Highlights

  • Rocky Mountain Chocolate Factory reported total revenue of USD 6.8 million for Q2 FY2026, up from USD 6.4 million year-over-year.
  • The company recorded a net loss of USD 0.7 million, or USD (0.09) per share, consistent with the previous year’s USD 0.7 million loss.
  • Operational initiatives and system upgrades provided better visibility into store performance and customer trends during the quarter.

Rocky Mountain (NASDAQ:RMCF) reported its financial results for the second quarter of fiscal 2026, which concluded on August 31, 2025. Total revenue increased to USD 6.8 million, a rise from USD 6.4 million in the same period last year, largely driven by pricing adjustments and a shift toward higher-margin products after exiting lower-margin specialty markets.

Despite the revenue gain, the company reported a product and retail gross profit loss of USD 33,000, compared with a USD 600,000 profit in the prior-year quarter. The decline reflected higher input costs and operational inefficiencies that offset benefits from pricing actions and the revised sales mix.

The company’s net loss for the quarter was USD 0.7 million, translating to USD (0.09) per share, compared with a net loss of USD 0.7 million, or USD (0.11) per share, in Q2 FY2025.

During the quarter, Rocky Mountain Chocolate Factory implemented updated ERP and point-of-sale systems to enhance operational oversight. These systems are providing more timely data on store performance and customer trends, supporting management decisions. Leadership changes in operations and franchising were noted to improve execution, accountability, and operational discipline.

During the quarter, the company broadened its retail network by launching two new franchise stores at Palladio Mall in Folsom, California, and Jersey Shore Premium Outlets in New Jersey, while also adding a company-owned location in Camarillo, California. A major Chicago flagship store is planned to open in time for the holiday season. In parallel, the company is developing a customer loyalty program and upgrading its digital systems to enhance support and engagement for its franchise partners.

Rocky Mountain Chocolate Factory’s second-quarter results show stable revenue growth amid increased operational costs and ongoing restructuring efforts. Management highlighted the progress of systems upgrades, leadership changes, and store expansion initiatives as factors influencing current and future operations.