Revenue contraction and extreme margin volatility are evident, with the company reporting a -45.1% operating margin and a -6.9% gross margin in 2026Q4.
| Metric | Feb'26 | Feb'25 | Feb'24 | Feb'23 | Feb'22 | Feb'21 | Feb'20 | Feb'19 | Feb'18 | Feb'17 | Feb'16 | Feb'15 | Feb'14 | Feb'13 | Feb'12 | Feb'11 | Feb'10 | Feb'09 | Feb'08 | Feb'07 | Feb'06 | Feb'05 | Feb'04 | Feb'03 | Feb'02 | Feb'01 | Feb'00 | Feb'99 | Feb'98 | Feb'97 |
|---|
| Sales/Revenue | 27.5M | 29.58M | 27.95M | 30.43M | 29.49M | 21.76M | 31.85M | 34.55M | 38.07M | 38.3M | 40.46M | 41.51M | 39.18M | 36.32M | 34.63M | 31.13M | 28.44M | 28.54M | 31.88M | 31.57M | 28.07M | 24.52M | 21.13M | 19.46M | 19.44M | 22.57M | 24.65M | 26.2M | 23.8M | 22.3M |
| Revenue Growth % | -7.04% | 5.82% | -8.15% | 3.2% | 35.5% | -31.67% | -7.8% | -9.27% | -0.58% | -5.34% | -2.53% | 5.93% | 7.9% | 4.88% | 11.24% | 9.46% | -0.36% | -10.48% | 0.97% | 12.47% | 14.48% | 16.05% | 8.59% | 0.12% | -13.88% | -8.42% | -5.93% | 10.08% | 6.73% | 19.25% |
| Cost of Goods Sold | 24.7M | 26.33M | 23.24M | 22.28M | 20.53M | 17.24M | 20.1M | 22.58M | 23.27M | 22.8M | 23.32M | 22.87M | 21.68M | 21.04M | 20.11M | 17.8M | 16.41M | 16.8M | 18.18M | 17.56M | 15.42M | 13.15M | 11.67M | 11.24M | 10.9M | 11.31M | 12.21M | 12.8M | 10.8M | 10.9M |
| COGS % of Revenue | 89.82% | 89.02% | 83.14% | 73.22% | 69.61% | 79.23% | 63.1% | 65.36% | 61.13% | 59.54% | 57.64% | 55.11% | 55.32% | 57.92% | 58.06% | 57.2% | 57.71% | 58.85% | 57.02% | 55.61% | 54.94% | 53.63% | 55.23% | 57.77% | 56.07% | 50.12% | 49.55% | 48.85% | 45.38% | 48.88% |
| Gross Profit | 2.8M | 3.25M | 4.71M | 8.15M | 8.96M | 4.52M | 11.75M | 11.97M | 14.8M | 15.49M | 17.14M | 18.63M | 17.51M | 15.28M | 14.52M | 13.32M | 12.03M | 11.74M | 13.7M | 14.01M | 12.65M | 11.37M | 9.46M | 8.22M | 8.54M | 11.26M | 12.43M | 13.4M | 13M | 11.4M |
| Gross Margin % | 10.18% | 10.98% | 16.86% | 26.78% | 30.39% | 20.77% | 36.9% | 34.64% | 38.87% | 40.46% | 42.36% | 44.89% | 44.68% | 42.08% | 41.94% | 42.8% | 42.29% | 41.15% | 42.98% | 44.39% | 45.06% | 46.37% | 44.77% | 42.23% | 43.93% | 49.88% | 50.45% | 51.14% | 54.62% | 51.12% |
| Gross Profit Growth % | -13.88% | -31.06% | -42.18% | -9.06% | 98.26% | -61.53% | -1.78% | -19.16% | -4.47% | -9.6% | -8.03% | 6.43% | 14.59% | 5.23% | 8.99% | 10.79% | 2.41% | -14.29% | -2.24% | 10.78% | 11.26% | 20.17% | 15.12% | -3.75% | -24.15% | -9.46% | -7.21% | 3.08% | 14.04% | 25.27% |
| Operating Expenses | 6.38M | 9.19M | 9.62M | 13.04M | 9.66M | 7.25M | 10.36M | 8.96M | 9.58M | 9.97M | 13.42M | 12.67M | 12.27M | 12.74M | 8.67M | 7.37M | 6.38M | 5.92M | 5.79M | 6.45M | 6.19M | 6.03M | 5.68M | 6.72M | 5.17M | 8.15M | 9.77M | 12.1M | 10.4M | 12M |
| OpEx % of Revenue | 23.22% | 31.07% | 34.4% | 42.86% | 32.75% | 33.31% | 32.53% | 25.93% | 25.16% | 26.03% | 33.18% | 30.52% | 31.32% | 35.08% | 25.03% | 23.69% | 22.45% | 20.76% | 18.15% | 20.44% | 22.06% | 24.59% | 26.89% | 34.54% | 26.6% | 36.12% | 39.65% | 46.18% | 43.7% | 53.81% |
| Selling, General & Admin | 6.38M | 8.3M | 8.81M | 12.39M | 8.93M | 6.56M | 7.66M | 5.64M | 6.39M | 6.66M | 7.13M | 7.31M | 7.16M | 5.79M | 4.73M | 4.29M | 5.68M | 5.17M | 5M | 5.58M | 5.32M | 5.25M | 4.89M | 5.91M | 4.26M | 7M | 8.21M | 10.6M | 9.1M | 10.6M |
| SG&A % of Revenue | 23.22% | 28.06% | 31.51% | 40.7% | 30.29% | 30.15% | 24.05% | 16.34% | 16.79% | 17.4% | 17.62% | 17.6% | 18.27% | 15.93% | 13.65% | 13.77% | 19.99% | 18.1% | 15.7% | 17.67% | 18.94% | 21.39% | 23.12% | 30.35% | 21.94% | 31.03% | 33.31% | 40.46% | 38.24% | 47.53% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 891K | 809K | 656.35K | 726.27K | 688.58K | 2.7M | 3.32M | 3.19M | 3.31M | 6.29M | 5.36M | 5.12M | 6.95M | 3.94M | 3.09M | 698.58K | 758.32K | 782.95K | 873.99K | 875.94K | 785.08K | 796.27K | 815.28K | 905.23K | 1.15M | 1.56M | 1.5M | 1.3M | 1.4M |
| Operating Income | -3.59M | -5.94M | -4.9M | -4.89M | -694.52K | -2.73M | 1.39M | 3.01M | 5.22M | 5.52M | 3.71M | 5.96M | 5.24M | 2.54M | 5.85M | 5.95M | 5.64M | 5.82M | 7.91M | 7.56M | 6.46M | 5.34M | 3.78M | 1.5M | 3.37M | 3.11M | 2.66M | 1.3M | 2.6M | -600K |
| Operating Margin % | -13.05% | -20.09% | -17.54% | -16.07% | -2.36% | -12.54% | 4.37% | 8.7% | 13.71% | 14.43% | 9.18% | 14.37% | 13.36% | 6.99% | 16.9% | 19.12% | 19.85% | 20.39% | 24.83% | 23.95% | 23.01% | 21.77% | 17.88% | 7.69% | 17.33% | 13.76% | 10.8% | 4.96% | 10.92% | -2.69% |
| Operating Income Growth % | 39.63% | -21.22% | -0.22% | -604.23% | 74.55% | -296.11% | -53.7% | -42.42% | -5.5% | 48.79% | -37.75% | 13.93% | 106.14% | -56.61% | -1.64% | 5.44% | -3.02% | -26.47% | 4.67% | 17.07% | 20.97% | 41.28% | 152.55% | -55.59% | 8.51% | 16.63% | 104.81% | -50% | 533.33% | -127.27% |
| EBITDA | -2.18M | -4.99M | -4.01M | -4.13M | 45.65K | -1.95M | 2.88M | 4.72M | 6.54M | 6.81M | 5.13M | 7.41M | 6.26M | 3.48M | 6.6M | 6.62M | 6.34M | 6.58M | 8.7M | 8.44M | 7.33M | 6.12M | 4.58M | 2.31M | 4.27M | 4.25M | 4.23M | 2.8M | 3.9M | 800K |
| EBITDA Margin % | -7.94% | -16.88% | -14.36% | -13.56% | 0.15% | -8.96% | 9.06% | 13.65% | 17.18% | 17.79% | 12.69% | 17.84% | 15.98% | 9.57% | 19.07% | 21.27% | 22.3% | 23.05% | 27.28% | 26.72% | 26.13% | 24.97% | 21.65% | 11.88% | 21.99% | 18.85% | 17.14% | 10.69% | 16.39% | 3.59% |
| EBITDA Growth % | 56.29% | -24.33% | 2.68% | -9137.17% | 102.34% | -167.62% | -38.83% | -27.9% | -4.01% | 32.73% | -30.68% | 18.25% | 80.2% | -47.38% | -0.26% | 4.4% | -3.58% | -24.37% | 3.1% | 15% | 19.77% | 33.85% | 97.93% | -45.92% | 0.47% | 0.7% | 50.9% | -28.21% | 387.5% | -73.33% |
| D&A (Non-Cash Add-back) | 1.41M | 950K | 887K | 765.26K | 740.17K | 778.45K | 1.49M | 1.71M | 1.32M | 1.29M | 1.42M | 1.44M | 1.03M | 935.38K | 750.86K | 670.32K | 698.58K | 758.32K | 782.95K | 873.99K | 875.94K | 785.08K | 796.27K | 815.28K | 905.23K | 1.15M | 1.56M | 1.5M | 1.3M | 1.4M |
| EBIT | -3.53M | -5.67M | -4.82M | -4.86M | -516.53K | -1.06M | 1.42M | 3.03M | 5.25M | 5.57M | 3.76M | 6.02M | 5.34M | 2.58M | 5.91M | 5.95M | 5.67M | 5.84M | 7.91M | 7.56M | 6.46M | 5.34M | 3.78M | 1.5M | 6.3M | 3.11M | 2.66M | 1.3M | 2.6M | -600K |
| Net Interest Income | -786K | -427K | 26.44K | 16.49K | 10.87K | -76.92K | 10.72K | -50.29K | -96.67K | -128.78K | -167.85K | -184.53K | 35.26K | 43.67K | 58.9K | 58.7K | 27.21K | 5.49K | 0 | 0 | 0 | 0 | -50.94K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 54K | 27K | 79.84K | 26.92K | 10.87K | 18K | 29.74K | 20.5K | 24K | 42K | 49K | 59K | 84.6K | 44K | 58.9K | 58.7K | 27K | 21.34K | 0 | 0 | 0 | 0 | 93.85K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 840K | 454K | 53.4K | 10.43K | 0 | 95K | 19.02K | 70.79K | 121K | 171K | 217K | 243K | 49.33K | 0 | 0 | 0 | 0 | 15.85K | 0 | 0 | 0 | 0 | 144.79K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -786K | -180K | 26K | 16.49K | 177.99K | 1.57M | 10.72K | -50.29K | -96.67K | -128.78K | -167.85K | -184.53K | 53.64K | 43.67K | 58.9K | 58.7K | 27.21K | 5.49K | 100.79K | 67.07K | 75.71K | -7.05K | -50.94K | -126.15K | -161.75K | -566.32K | -938.88K | -600K | -500K | -1M |
| Pretax Income | -4.37M | -6.12M | -4.88M | -4.87M | -516.53K | -1.16M | 1.4M | 2.96M | 5.12M | 5.4M | 3.55M | 5.78M | 5.29M | 2.58M | 5.91M | 6.01M | 5.67M | 5.82M | 8.02M | 7.63M | 6.53M | 5.33M | 3.73M | 1.37M | 3.21M | 2.54M | 1.72M | 700K | 2.1M | -1.6M |
| Pretax Margin % | -15.9% | -20.7% | -17.44% | -16.02% | -1.75% | -5.31% | 4.4% | 8.56% | 13.46% | 14.09% | 8.76% | 13.93% | 13.5% | 7.11% | 17.07% | 19.3% | 19.94% | 20.41% | 25.14% | 24.16% | 23.28% | 21.74% | 17.64% | 7.04% | 16.5% | 11.25% | 6.99% | 2.67% | 8.82% | -7.17% |
| Income Tax | 187K | 0 | 0 | 613.84K | -16.81K | -745.5K | 368.5K | 716.86K | 2.16M | 1.95M | -261.4K | 2.04M | 2.15M | 1.23M | 2.04M | 2.1M | 2.09M | 2.11M | 3.05M | 2.88M | 2.47M | 2.02M | 1.41M | 517.99K | 1.21M | 982.59K | 667.03K | 300K | 800K | -600K |
| Effective Tax Rate % | -4.28% | 0% | 0% | -12.59% | 3.25% | 64.53% | 26.28% | 24.25% | 42.16% | 36.06% | -7.37% | 35.25% | 40.74% | 47.74% | 34.44% | 34.92% | 36.87% | 36.16% | 38.1% | 37.8% | 37.8% | 37.8% | 37.8% | 37.8% | 37.8% | 38.7% | 38.7% | 42.86% | 38.1% | 37.5% |
| Net Income | -4.56M | -6.12M | -4.17M | -5.68M | -341.7K | -899.78K | 1.03M | 2.24M | 2.96M | 3.45M | 4.43M | 3.94M | 4.39M | 1.48M | 3.88M | 3.91M | 3.58M | 3.72M | 4.96M | 4.74M | 4.06M | 3.32M | 2.32M | 852.35K | 2M | 1.56M | 1.06M | 400K | 300K | -1.4M |
| Net Margin % | -16.58% | -20.7% | -14.93% | -18.67% | -1.16% | -4.13% | 3.25% | 6.48% | 7.78% | 9.01% | 10.94% | 9.49% | 11.21% | 4.07% | 11.19% | 12.56% | 12.59% | 13.03% | 15.56% | 15.03% | 14.48% | 13.52% | 10.97% | 4.38% | 10.26% | 6.9% | 4.29% | 1.53% | 1.26% | -6.28% |
| Net Income Growth % | 25.51% | -46.74% | 26.56% | -1562.52% | 62.02% | -187.03% | -53.82% | -24.46% | -14.09% | -22.05% | 12.39% | -10.35% | 197.15% | -61.86% | -0.89% | 9.24% | -3.72% | -25.05% | 4.56% | 16.74% | 22.55% | 43.02% | 172.08% | -57.28% | 28.2% | 47.31% | 164.14% | 33.33% | 121.43% | -216.67% |
| Net Income (Continuing) | -4.56M | -6.12M | -4.88M | -5.49M | -499.72K | -409.72K | 1.03M | 2.24M | 2.96M | 3.45M | 3.81M | 3.74M | 3.13M | 1.35M | 3.88M | 3.91M | 3.58M | 3.72M | 4.96M | 4.74M | 4.06M | 3.32M | 2.32M | 852.35K | 2M | 1.56M | 1.06M | 400K | 1.3M | -1M |
| Discontinued Operations | 0 | 0 | 704K | -192.42K | 158.02K | -490.06K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1M | -400K |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 869.67K | 1.74M | 1.01M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.56 | -0.86 | -0.66 | -0.91 | -0.06 | -0.15 | 0.17 | 0.37 | 0.50 | 0.58 | 0.73 | 0.61 | 0.68 | 0.24 | 0.62 | 0.62 | 0.58 | 0.60 | 0.76 | 0.71 | 0.58 | 0.49 | 0.35 | 0.13 | 0.31 | 0.24 | 0.13 | 0.05 | 0.02 | -0.15 |
| EPS Growth % | 34.88% | -30.3% | 27.47% | -1536.69% | 62.93% | -188.24% | -54.05% | -26% | -13.79% | -20.55% | 19.67% | -10.29% | 183.33% | -61.29% | 0% | 6.9% | -3.33% | -21.05% | 7.04% | 22.41% | 18.37% | 40% | 169.23% | -58.06% | 29.17% | 84.62% | 162.63% | 100.4% | 116.47% | -215.38% |
| EPS (Basic) | -0.56 | -0.86 | -0.66 | -0.91 | -0.06 | -0.15 | 0.17 | 0.38 | 0.50 | 0.59 | 0.75 | 0.64 | 0.72 | 0.24 | 0.63 | 0.65 | 0.60 | 0.62 | 0.78 | 0.73 | 0.62 | 0.53 | 0.38 | 0.14 | 0.33 | 0.24 | 0.13 | 0.05 | 0.02 | -0.15 |
| Diluted Shares Outstanding | 8.08M | 7.08M | 6.29M | 6.23M | 6.14M | 6.07M | 6.26M | 5.98M | 5.98M | 5.99M | 6.1M | 6.41M | 6.44M | 6.22M | 6.3M | 6.29M | 6.21M | 6.16M | 6.5M | 6.66M | 7.01M | 6.81M | 6.62M | 6.56M | 6.39M | 6.57M | 8.4M | 8.66M | 9.47M | 9.64M |
| Basic Shares Outstanding | 8.08M | 7.08M | 6.29M | 6.23M | 6.14M | 6.07M | 5.99M | 5.93M | 5.88M | 5.84M | 5.89M | 6.14M | 6.1M | 6.08M | 6.11M | 6.05M | 6.01M | 5.98M | 6.34M | 6.43M | 6.58M | 6.31M | 6.15M | 6.05M | 6M | 6.55M | 8.35M | 8.62M | 9.42M | 9.64M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 127.08% | 95.21% | 81.3% | 64.13% | 68.87% | 61.06% | 177.45% | 62.97% | 61.84% | 67.13% | 64.45% | 48.46% | 42.8% | 42.09% | 33.16% | 17.18% | - | - | - | - | - | - | - |
Structural margin erosion
According to the most recent quarterly data, RMCF experienced a 24.1% year-over-year revenue decline in 2026Q4, highlighting the persistent difficulty in maintaining top-line momentum across its franchised retail network and manufacturing operations during historically critical holiday periods.
The consistent inability to achieve sustained year-over-year growth suggests that the company's core retail model is struggling to resonate with current consumer foot traffic patterns. Investors should monitor whether the recent strategic alliance with Edible Arrangements can provide a meaningful volume offset to the ongoing decline in traditional mall-based retail sales.
As reported in financial statements, RMCF's gross margin plummeted to -6.9% in 2026Q4, a stark departure from the 34.0% peak observed in 2026Q3, indicating extreme sensitivity to input cost fluctuations and potential manufacturing underutilization within the Durango facility.
The extreme variance in gross margins suggests that the company lacks the pricing power necessary to pass through commodity cost spikes to its franchise base. This volatility implies that the manufacturing segment may be operating below the critical scale required to absorb fixed overhead, leaving the business highly exposed to raw material price shocks.
Based on the provided income statement data, RMCF's operating margin deteriorated to -45.1% in 2026Q4, demonstrating that corporate overhead and SG&A expenses are not scaling down in proportion to the significant contraction in gross profit.
The failure to achieve operating leverage suggests that the current corporate cost structure is misaligned with the company's diminished revenue footprint. This persistent negative operating income indicates that the business model may require a fundamental restructuring of its fixed cost base to reach a sustainable break-even point.
Analysis of the income statement reveals that RMCF has reported net losses in nine of the last ten quarters, with a net margin of -50.6% in 2026Q4, raising significant questions regarding the long-term viability of the current franchised retail and manufacturing strategy.
Short-sellers would likely focus on the consistent erosion of shareholder equity through recurring net losses and the potential for future impairment charges on intangible assets. The reliance on a high-fixed-cost manufacturing facility in an environment of declining unit counts warrants further investigation into the company's long-term solvency and capital allocation priorities.
Quick answers to the most common questions about buying RMCF stock.
For fiscal year 2026, Rocky Mountain Chocolate Factory, Inc. (RMCF) reported total revenue of $27.5M. This represents a 23.3% increase compared to $22.3M in 1997.
Rocky Mountain Chocolate Factory, Inc. (RMCF) reported a net loss of $4.6M for the fiscal year ending 2026.
Rocky Mountain Chocolate Factory, Inc. (RMCF) reported an operating income of $-3.6M, resulting in an operating profit margin of -13.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Rocky Mountain Chocolate Factory, Inc. (RMCF) generated $2.8M in gross profit for the year, representing a gross profit margin of 10.2%. This demonstrates the company's core pricing power and production efficiency.