Revenue decline of -24% in Q4 with negative gross profit signals continued structural pressure; the margin improvement narrative from Q3 did not sustain into Q4. With no guidance provided and a $16M market cap, the stock is a show-me story — monitor for signs of stabilization in the retail/franchise segment or a turnaround in the packaged business. The upcoming conference call on June 2 should provide clarity on Q1 FY27 trends.
Price Chart
Executive Summary
Rocky Mountain Chocolate Factory reported fiscal Q4 2026 (end Feb 28, 2026) total revenue of $6.8M, down -24% YoY from $8.9M, and a net loss of -$3.4M (-$0.38/share) vs -$2.9M (-$0.37/share) a year ago. Full-year FY26 revenue fell -7% to $27.5M from $29.6M, with net loss improving slightly to -$4.6M (-$0.56/share) from -$6.1M (-$0.86/share). The prelim results (May 14) had guided revenue of $6.4-7.4M for Q4, so the actual $6.8M landed within range. The business remains challenged by deliberate exit of low-margin channels, e-commerce transition disruption, and litigation costs; no guidance was provided.
Key Financial Metrics
Key Facts
- Q4 FY26 total revenue $6.8M vs $8.9M YoY (-24%) — revenue decline >5% hard rule triggers bearish
- Q4 FY26 net loss $3.4M (-$0.38/share) vs $2.9M (-$0.37/share) YoY — losses widened
- Full-year FY26 total revenue $27.5M vs $29.6M YoY (-7%); net loss $4.6M vs $6.1M
- Product and retail gross profit was -$0.9M in Q4 (negative), impacted by disposal of old-branded supplies
- Q4 costs improved to $9.8M from $11.6M, but not enough to offset revenue decline; EBITDA -$2.6M vs -$2.5M
- Cash & equivalents $1.2M vs $0.7M a year ago; shares outstanding increased to 9.35M from 7.72M
- Prior Q3 FY26 (Nov 2025) had shown narrowing losses: $0.2M loss vs $0.8M YoY on $7.5M revenue — Q4 reversed that trend
Financial Impact
Revenue declined ~$2.1M QoQ and ~$2.1M YoY; net loss expanded by $0.5M vs prior year quarter; EBITDA remained deeply negative at -$2.6M
Risk Factors
- Revenue trajectory continues downward as low-margin business exits outpace new franchise growth
- Negative product gross profit indicates potential for additional impairment or working capital strain
- Elevated litigation costs and e-commerce transition disruption may persist, weighing on margins
- Share count increased 21% YoY (7.72M to 9.35M), diluting existing holders
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001437749-26-018927 |
| Exhibit: ex_970190.htm | 0001437749-26-018927 |
| Document: 0001437749-26-018927-index-headers.html | 0001437749-26-018927 |
| Document: 0001437749-26-018927-index.html | 0001437749-26-018927 |
| Document: 0001437749-26-018927.txt | 0001437749-26-018927 |
| 8-K Data (Synthetic) | 0001437749-26-018927 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 7d ago | 8-K | $0.9200 $0.8900 | ▼ −3.26% | ▼ −3.79% | $0.8322 (−9.54%) |
Oct 19, 2026 8d ago | Press Release | $0.9200 $0.8900 | ▲ +3.26% | ▲ +3.79% | $0.8322 (+9.54%) |
Oct 16, 2026 11d ago | Press Release | $0.9330 $0.9200 | ▼ −1.39% | ▼ −1.73% | $0.8322 (−10.80%) |
Oct 14, 2026 12d ago | NT 10-Q | $0.9000 $0.9117 | ▲ +1.30% | ▲ +2.41% | $0.8322 (−7.53%) |
Oct 6, 2026 20d ago | 8-K | $1.02 $1.05 | ▲ +2.94% | ▲ +3.36% | $0.8322 (−18.41%) |
Aug 24, 2026 9w ago | 8-K | $1.17 $1.11 | ▼ −5.13% | ▼ −5.45% | $0.8322 (−28.87%) |
Jul 14, 2026 15w ago | Press Release | $1.00 $0.9800 | ▲ +2.00% | ▲ +1.46% | $0.8322 (+16.78%) |
Jul 2, 2026 16w ago | EFFECT | $1.09 $1.11 | ▲ +1.83% | ▲ +0.96% | $0.8322 (−23.65%) |
Jun 30, 2026 16w ago | 8-K | $1.07 $1.09 | ▲ +1.87% | ▲ +2.00% | $0.8322 (−22.22%) |
Jun 23, 2026 17w ago | S-3 | $1.50 $1.48 | ▼ −1.33% | ▼ −1.48% | $0.8322 (−44.52%) |
US Market Status
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