BAB, Inc. Reports Results for 2nd Quarter FY 2026

BAB, Inc. announced its financial results for the second quarter ended May 31, 2026. For the quarter ended May 31, 2026, BAB had revenues of $804,000 and net income of $187,000, or $0.03 per share earnings, versus revenues of $808,000 and net income of $154,000, or a $0.02 per share, for the same quarter last year.

Our total revenue for the three months ended May 31, 2026 decreased compared to the prior period due to a decrease in marketing fund expenses, which drive the recognition of marketing fund revenue. Under U.S. GAAP, we recognize marketing fund revenue at the time the related marketing fund expenses are incurred. As marketing fund revenue and expense directly offset each other in any given period, the decline has no impact on net income.

For the six months ended May 31, 2026, revenues were $1,527,000 and net income was $306,000, or $0.04 per share, versus revenues of $1,566,000 and net income of $271,000, or $0.04 per share for the same period in 2025. Our total revenue for the six months ended May 31, 2026 decreased compared to the prior period primarily due to a decrease in marketing fund expenses, which drive the recognition of marketing fund revenue. Under U.S. GAAP, we recognize marketing fund revenue at the time the related marketing fund expenses are incurred. As marketing fund revenue and expense directly offset each other in any given period, the decline has no impact on net income.

Total operating expenses for the three months ended May 31, 2026, were $556,000, versus $608,000, in 2025. The change in operating expenses for the quarter May 31, 2026 was primarily due to a decrease in payroll of $28,000, a decrease in marketing fund expenses of $20,000, a decrease in professional services of $6,000, and ...