Rocky Mountain Chocolate Factory narrows full-year losses as turnaround effort takes shape

Rocky Mountain Chocolate Factory (NASDAQ:RMCF) reported its financial and operating results for the fiscal fourth quarter and full year ended February 28, 2026, revealing a planned contraction in lower-margin sales alongside structural improvements in its underlying expense profile and product profit margins.

The Durango, Colorado-based premium confectionery franchisor and operator posted total revenue of $6.8 million for the fiscal fourth quarter.

The final three months of the fiscal year were impacted by volume volatility within its packaged product assortment alongside a deliberate effort to phase out low- or negative-margin specialty market portfolios.

For the fourth quarter, the company recorded a net loss from continuing operations of $3.4 million, which translates to a loss of $0.38 per share.

For the full fiscal year 2026, consolidated revenue reached $27.5 million, compared with $29.6 million recorded in fiscal 2025.

Despite the absolute top-line drop, the confectioner's multi-month internal restructuring yielded visible optimization benefits.

Total costs and expenses for the full year decreased to $31.1 million, reflecting tighter oversight of corporate overhead and localized supply chain metrics.

Consequently, the company's full-year net loss from continuing operations narrowed to $4.6 million, or $0.56 per share, representing an improvement over the net loss per share of $0.86 reported in the prior fiscal year.

On an operational level, full-year product and retail gross profit rose to $0.7 million, helped by strategic pricing adjustments and product mix optimization.

The company's annualized EBITDA loss also experienced a positive correction trend, improving to negative $2.1 million for the twelve-month period.