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.
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| 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 | |||||||||||||||||
