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Rocky Mountain Chocolate Factory Reports Fiscal Fourth Quarter and Fiscal Year 2025 Financial Results

Management to Host Conference Call Tomorrow at 9:00 a.m. ET

DURANGO, Colo., June 17, 2025 (GLOBE NEWSWIRE) -- Rocky Mountain Chocolate Factory Inc. (Nasdaq: RMCF) (the 鈥淐ompany鈥�, 鈥渨e鈥�, 鈥淩MC鈥�, or 鈥淩ocky Mountain Chocolate鈥�), America鈥檚 Chocolatier鈩� and a leading franchiser of a premium chocolate and confectionary retail store concept, is reporting financial and operating results for its fiscal fourth quarter and fiscal year ended February 28, 2025.

鈥淔iscal 2025 marked the beginning of a transformative era for Rocky Mountain Chocolate,鈥� said Jeff Geygan, Interim CEO of the Company. 鈥淲e initiated a comprehensive restructuring effort to revitalize the business鈥攔ebuilding our culture, restoring operational discipline, and modernizing core systems. We brought consumer packaging back in-house, implemented a new point-of-sale system for real-time, store-level sales visibility, overhauled our e-commerce platform, and realigned pricing across our portfolio with the goal of improving unit-level economics and supporting stronger franchisee performance.鈥�

鈥淭hese efforts have already begun to yield results. We鈥檝e seen meaningful operational improvements, better alignment across our franchise network, and improved data-driven decision-making. Importantly, our brand refresh is well underway, with a new logo, modern store design, and upgraded digital experience set to launch in the coming months. As of March 1, 2025, our operational changes are in effect, and we believe we have stabilized a company that has had operational challenges for more than a decade.鈥�

Geygan added, 鈥淟ooking ahead, we are focused on disciplined growth, with a focus on profitability for the remainder of fiscal 2026. I鈥檓 incredibly proud of our team鈥檚 resilience and grateful to our shareholders for their continued support. We are a very different company today, with a foundation firmly in place to rebuild and thrive.鈥�

Recent Operational Highlights

• Resolved Key Operational Challenges:
  • Retired the Company鈥檚 co-packing operations in Salt Lake City in February 2025.
  • Adjusted or exited unprofitable Specialty Market relationships in fiscal 2025.
  • Implemented a rational franchise product pricing model, effective March 1, 2025, to address systemic margin pressures.
• Strengthened Franchise Network:
  • Actively executing store transfers to retain valuable locations while installing more capable operators in effort to revitalize unit-level performance and strengthen the overall franchise network.
• Progress on Store Refresh Strategy:
  • Opened a new store in Charleston, South Carolina on June 3, 2025 under refreshed branding and design.
  • Planned construction on a flagship location in downtown Chicago, with an opening expected ahead of the holiday season.
• Advancing Brand Modernization:
  • Completed development of a refreshed store design and branding platform.
  • Systemwide signage upgrades in process, with our first launch in Durango, Colorado on June 17, 2025.
• Digital and Product Enhancements:
  • Upcoming launch of a redesigned website expected in July 2025.
  • Updated packaging aligned with a new brand identity anticipated to begin shipping in early August 2025.
    

Fiscal Fourth Quarter 2025 Financial Results vs. Year-Ago Quarter

• Total revenue was $8.9 million in the fourth quarter of fiscal 2025 compared to $7.3 million in the fourth quarter of fiscal 2024. During the quarter, the Company experienced transitional impacts from its ERP and pricing system rollout, alongside early returns from new digital infrastructure and store-level data capabilities.
• Total product and retail gross profit was $(0.8) million in the fourth quarter of fiscal 2025 compared to $0.1 million in the fourth quarter of fiscal 2024. The decrease was primarily due to higher raw material costs.
• Total costs and expenses increased to $11.6 million in the fourth quarter of fiscal 2025 compared to $8.8 million in the fourth quarter of fiscal 2024. The increase was primarily attributed to investments in marketing and administrative infrastructure related to the brand refresh and prototype store rollout.
• Net loss from continuing operations was $2.9 million or $(0.37) per share in the fourth quarter of fiscal 2025, compared to a net loss from continuing operations of $1.6 million or $(0.25) per share in the fourth quarter of fiscal 2024.

Fiscal Year 2025 Results vs. Fiscal Year 2024

• Total revenue was $29.6 million in fiscal 2025 compared to $28.0 million in fiscal 2024.
• Total product and retail gross profit was $0.1 million in fiscal 2025 compared to $1.4 million in fiscal 2024. The decrease was primarily due to a sharp increase in the cost of cocoa and other inflationary pressures, as well as higher overhead costs and reduced production volume.
• Total costs and expenses increased to $35.5 million in fiscal 2025 compared to $32.9 million in fiscal 2024. The increase was primarily driven by inflationary cost pressures, including higher raw material costs, and general operating cost increases.
• Net loss from continuing operations was $6.1 million or $(0.86) per share in fiscal 2025 compared to a net loss from continuing operations of $4.9 million or $(0.77) per share in fiscal 2024.

Conference Call Information

The Company will conduct a conference call to discuss its financial results. A question-and-answer session will follow management鈥檚 opening remarks. The conference call details are as follows:

Date: Wednesday, June 18, 2025
Time: 9:00 a.m. Eastern time
Dial-in registration link:
Live webcast registration link:

Please dial into the conference call 5-10 minutes prior to the start time. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact the Company鈥檚 investor relations team at .

The conference call will also be broadcast live and available for replay in the investor relations section of the Company鈥檚 website at .

About Rocky Mountain Chocolate Factory, Inc.

is a leading franchiser of a premium chocolate and confectionary retail store concept. As America鈥檚 Chocolatier鈩�, the Company has been producing an extensive line of premium chocolates and other confectionery products, including gourmet caramel apples since 1981.听Headquartered in Durango, Colorado, Rocky Mountain Chocolate Factory is ranked among Entrepreneur鈥檚 Franchise 500^庐听for 2025 and Franchise Times鈥� Franchise 400^庐听for 2024. The Company and its franchisees and licensees operate nearly 260 Rocky Mountain Chocolate stores across the United States, with several international locations. The Company's common stock is listed on the Nasdaq Global Market under the symbol "RMCF."

Forward-Looking Statements

This press release includes statements of our expectations, intentions, plans and beliefs that constitute 鈥渇orward-looking statements鈥� within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to come within the safe harbor protection provided by those sections. These forward-looking statements involve various risks and uncertainties. The statements, other than statements of historical fact, included in this press release are forward-looking statements. Many of the forward-looking statements contained in this document may be identified by the use of forward-looking words such as "will," "intend," "believe," "expect," "anticipate," "should," "plan," "estimate," "potential," or similar expressions. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future - including statements regarding future financial and operating results and anticipated outcomes of our business strategy and plan are forward-looking statements. Management of the Company believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date of this press release. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause our Company鈥檚 actual results to differ materially from historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to: inflationary impacts, changes in the confectionery business environment, seasonality, consumer interest in our products, receptiveness of our products internationally, consumer and retail trends, costs and availability of raw materials, competition, the success of our co-branding strategy, the success of international expansion efforts and the effect of government regulations. For a detailed discussion of the risks and uncertainties that may cause our actual results to differ from the forward-looking statements contained herein, please see the section entitled 鈥淩isk Factors鈥� contained in our periodic reports, each filed with the Securities and Exchange Commission.

Investor Contact

Sean Mansouri, CFA
Elevate IR
720-330-2829