BAB, Inc. (OTCQB: BABB) reported its first‑quarter 2026 financial results for the period ended February 28 2026. Revenue totaled $724,000, a 4.4% decline from the $757,000 reported for the same quarter in 2025. Net income rose to $119,000, up from $116,000 year‑over‑year, while earnings per share remained flat at $0.02.
Revenue fell across several streams. Royalty revenue increased by $9,000, but licensing fees and other income dropped by $22,000. Non‑traditional revenue declined by $15,000, driven by a temporary reduction in vendor rebates and the timing of franchisee purchases. Marketing revenue slipped $19,000, partially offset by lower marketing spend.
Operating expenses decreased by $39,000 to $571,000. The reduction was largely due to a $50,000 payroll cut following an employee retirement, while professional fees rose $20,000. The net effect of these cost‑control measures helped lift net income despite the revenue decline.
BAB, Inc. is a franchisor and licensor of brands such as Big Apple Bagels®, My Favorite Muffin®, SweetDuet® frozen yogurt, and Brewster’s® Coffee. The company declared a quarterly cash distribution of $0.01 per share, payable on April 20 2026.
The results illustrate the company’s focus on cost discipline amid a modest revenue contraction, maintaining profitability and a stable earnings per share level for investors.
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