| Metric | Value ($ M) | Q1 FY27 | Q2 FY26 |
|---|---|---|---|
| Revenue | 6.65 | 8.8% | 2.5% |
| Total Income | 6.65 | 8.8% | 2.5% |
| Expenditure | 7.74 | 8.7% | 6.0% |
| PBT | -1.28 | 9.4% | 93.9% |
| Net Profit | -1.28 | 9.4% | 93.9% |
| OPM | -16.31% | 0.15pp | 9.29pp |
| NPM | -19.26% | 0.15pp | 9.56pp |
| EPS | -0.14 | 16.7% | 55.6% |
Rocky Mountain Chocolate Factory Reports Q2 FY27 Financial Results
20 Oct 2026 · 20 Oct, 2:46 am
Summary
Rocky Mountain Chocolate Factory, Inc. reported financial results for its second quarter of fiscal 2027, ending August 31, 2026. Total revenue was $6.7 million, down slightly from $6.8 million in the prior year's quarter, primarily due to lower product sales and royalty fees, partially offset by increased retail sales from a larger company-owned store base and price increases. Gross profit saw a significant improvement, turning from a loss to $0.4 million with a margin of 8.0%, driven by pricing actions and production efficiencies. However, the net loss widened to $1.3 million or $(0.14) per share from $0.7 million or $(0.09) per share in Q2 FY26, with EBITDA loss also increasing to $0.7 million. Management highlighted progress in production and execution, with August being the highest production and shipping month of the year, and noted the strategic importance of enhancing operational visibility and efficiency.
Key Highlights
- 1
Total revenue for the second quarter of fiscal 2027 was $6.7 million, a slight decrease from $6.8 million in the second quarter of fiscal 2026.
- 2
Total product and retail gross profit increased to $0.4 million in Q2 FY27 from a gross loss of less than $0.1 million in Q2 FY26, with gross margin improving to 8.0% from (0.6)%.
- 3
Net loss for the second quarter of fiscal 2027 was $1.3 million or $(0.14) per share, compared to a net loss of $0.7 million or $(0.09) per share in the prior year's second quarter.
- 4
EBITDA loss was $0.7 million in Q2 FY27 compared to a loss of $0.1 million in Q2 FY26.
- 5
The company completed a $6.6 million sale-leaseback transaction for its Durango, Colorado manufacturing facility, using the net proceeds to repay $6.6 million in debt.
- 6
A new $2.0 million term loan was secured from Alpine Bank for working capital purposes, maturing on October 16, 2028.
Management Comments
Allen Harper
Since stepping into the Interim CEO role, I have been encouraged by the way our leadership team has come together around a shared set of priorities for the business. With COO David Denker leading our day-to-day operations, our teams are increasingly aligned across the business. That alignment is strengthening accountability and decision-making as we build a stronger organization and position Rocky Mountain Chocolate Factory for sustainable growth and long-term shareholder value.
David Denker
During the second quarter, we made progress improving production and execution across the business. August was our highest production and shipping month of the calendar year. Increasing production volume from our Durango facility remains a key priority as we prepare for the holiday season. Enhancements to our reporting platform, combined with our ERP capabilities, are providing our teams with greater visibility into demand, inventory and production requirements. These operational improvements, together with our continued focus on production efficiency and execution, contributed to the recovery in gross margin during the quarter. We believe there is additional opportunity to build on this progress as we move through the holiday season. The acquisition of Chino Hills in July 2026 expanded our company-owned store base to five locations, while new franchised stores opened in Folsom, California, and Tinton Falls, New Jersey. As we grow our footprint and continue to enhance operations, we remain focused on consistent execution, supporting our franchisees and preserving the product quality and longstanding recipes that distinguish Rocky Mountain Chocolate Factory.
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