{"success":true,"data":{"pressRelease":{"id":"165648","rtpr_id":"nGNX8vvlCk-20261009","ticker":"BABB","exchange":"OTC","all_tickers":["BABB"],"title":"BAB, Inc. Reports Results for 3rd Quarter FY 2026","author":"Globe Newswire","published_at":"2026-10-09T16:52:06.192Z","article_body":"DEERFIELD, Ill., Oct. 09, 2026 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB),\nannounced its financial results for the third quarter ended August 31, 2026.\n\nFor the quarter ended August 31, 2026, BAB had revenues of $908,000 and net\nincome of $227,000, or $0.03 per share, versus revenues of $769,000 and net\nincome of $168,000, or $0.02 per share, for the same quarter last year. Total\nrevenue increased $139,000, or 18.1%, compared to the prior-year period. The\nincrease was primarily attributable to a $115,000 increase in marketing fund\nrevenue, which is recognized when the related marketing fund expenses are\nincurred, as well as increases in royalty fee revenue of $19,000 and licensing\nfees and other income of $5,000. Because marketing fund revenue and expense\ndirectly offset each other in any given period, the increase in marketing fund\nrevenue had no impact on net income.\n\nFor the nine months ended August 31, 2026, revenues were $2,435,000 and net\nincome was $533,000, or $0.07 per share, versus revenues of $2,334,000 and net\nincome of $438,000, or $0.06 per share, for the same period in 2025. Total\nrevenue increased $101,000, or 4.3%, compared to the prior-year period. The\nincrease was primarily attributable to increases of $76,000 in marketing fund\nrevenue and $36,000 in royalty fee revenue, partially offset by a $14,000\ndecrease in licensing fees and other income. Marketing fund revenue is\nrecognized when the related marketing fund expenses are incurred, and the\ncorresponding revenue and expense offset each other with no impact on net\nincome.\n\nTotal operating expenses for the three months ended August 31, 2026 were\n$607,000, compared to $550,000 for the same period in 2025, an increase of\n$57,000, or 10.4%. The increase was primarily attributable to a $115,000\nincrease in marketing fund expenses, partially offset by a $58,000 decrease in\nselling, general and administrative expenses. Total operating expenses for the\nnine months ended August 31, 2026 were $1,734,000, compared to $1,767,000 for\nthe same period in 2025, a decrease of $33,000, or 1.9%. The decrease was\nprimarily attributable to a $109,000 decrease in selling, general and\nadministrative expenses, partially offset by a $76,000 increase in marketing\nfund expenses.\n\nBAB, Inc. franchises and licenses Big Apple Bagels®, My Favorite Muffin®,\nSweetDuet® frozen yogurt and Brewster’s® Coffee. The Company’s stock is\ntraded on the OTCQB under the symbol BABB and its website can be visited at\nwww.babcorp.com.\n\nCertain statements in this press release constitute forward-looking statements\nor statements which may be deemed or construed to be forward-looking\nstatements within the meaning of the Private Securities Litigation Reform Act\nof 1995. The words “forecast,” “estimate,” “project,”\n“intend,” “expect,” “should,” “would,” “believe” and\nsimilar expressions and all statements which are not historical facts are\nintended to identify forward-looking statements. These forward-looking\nstatements involve and are subject to known and unknown risks, uncertainties\nand other factors which could cause the company’s actual results,\nperformance (financial or operating), or achievements to differ from the\nfuture results, performance (financial or operating), or achievements\nexpressed or implied by such forward-looking statements. The above factors are\nmore fully discussed in the company’s SEC filings.\n\n(TABLE FOLLOWS)\n\n Contact:  BAB, Inc. Geraldine Conn (847) 948-7520 Fax: (847) 405-8140 www.babcorp.com  \n                                                                                        \n\n\n\n BAB, INC.                                                                                                                                                                     \n CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                                                                                                                               \n                                                                                                                                                                               \n                                                                                                                                                                               \n                                             Quarter Ended                                                     Nine Months Ended                                               \n                                             08/31/26                 08/31/25                 % Change        08/31/26                 08/31/25                 % Change      \n                                                                                                                                                                               \n REVENUES                                                                                                                                                                      \n                                                                                                                                                                               \n Royalty fees from franchised stores         $    530,868             $    511,736             3.7    %        $    1,516,777           $    1,480,809           2.4    %      \n Franchise and area development fee revenue       2,987                    3,082               -3.1   %             18,187                   15,248              19.3   %      \n Licensing fees and other income                  72,134                   66,785              8.0    %             193,006                  207,138             -6.8   %      \n Marketing Fund Revenue                           301,878                  186,930             61.5   %             707,250                  631,025             12.1   %      \n Total Revenue                                    907,867                  768,533             18.1   %             2,435,220                2,334,220           4.3    %      \n                                                                                                                                                                               \n OPERATING COSTS AND EXPENSES                                                                                                                                                  \n                                                                                                                                                                               \n Selling, general and administrative              304,405                  361,690             -15.8  %             1,012,374                1,133,384           -10.7  %      \n Depreciation and amortization                    300                      1,081               N/A                  14,139                   3,042               N/A           \n Marketing Fund Expenses                          301,878                  186,930             61.5   %             707,250                  631,025             12.1   %      \n Total Expense                                    606,583                  549,701             10.3   %             1,733,763                1,767,451           -1.9   %      \n                                                                                                                                                                               \n Income from operations                           301,284                  218,832             37.7   %             701,457                  566,769             23.8   %      \n Interest expense                                 -                        -                   -                    -                        -                   -             \n Interest/other income                            13,089                   14,597              -10.3  %             38,767                   43,219              -10.3  %      \n Income taxes                                     (86,996    )             (65,800    )        32.2   %             (206,796   )             (171,800   )        20.4   %      \n                                                                                                                                                                               \n NET INCOME                                  $    227,377             $    167,629             35.6   %        $    533,428             $    438,188             21.7   %      \n                                                                                                                                                                               \n Earnings per share - basic and diluted      $    0.03                $    0.02                N/M             $    0.07                $    0.06                N/M           \n Average number of shares outstanding             7,263,508                7,263,508                                7,263,508                7,263,508                         \n                                                                                                                                                                               \n\n\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX8vvlCk-20261009","title":"BAB, Inc. Reports Results for 3rd Quarter FY 2026","author":"Globe Newswire","ticker":"BABB","created":"2026-10-09T16:52:06.192Z","tickers":["BABB"],"exchange":"OTC","article_body":"DEERFIELD, Ill., Oct. 09, 2026 (GLOBE NEWSWIRE) -- BAB, Inc. (OTCQB: BABB),\nannounced its financial results for the third quarter ended August 31, 2026.\n\nFor the quarter ended August 31, 2026, BAB had revenues of $908,000 and net\nincome of $227,000, or $0.03 per share, versus revenues of $769,000 and net\nincome of $168,000, or $0.02 per share, for the same quarter last year. Total\nrevenue increased $139,000, or 18.1%, compared to the prior-year period. The\nincrease was primarily attributable to a $115,000 increase in marketing fund\nrevenue, which is recognized when the related marketing fund expenses are\nincurred, as well as increases in royalty fee revenue of $19,000 and licensing\nfees and other income of $5,000. Because marketing fund revenue and expense\ndirectly offset each other in any given period, the increase in marketing fund\nrevenue had no impact on net income.\n\nFor the nine months ended August 31, 2026, revenues were $2,435,000 and net\nincome was $533,000, or $0.07 per share, versus revenues of $2,334,000 and net\nincome of $438,000, or $0.06 per share, for the same period in 2025. Total\nrevenue increased $101,000, or 4.3%, compared to the prior-year period. The\nincrease was primarily attributable to increases of $76,000 in marketing fund\nrevenue and $36,000 in royalty fee revenue, partially offset by a $14,000\ndecrease in licensing fees and other income. Marketing fund revenue is\nrecognized when the related marketing fund expenses are incurred, and the\ncorresponding revenue and expense offset each other with no impact on net\nincome.\n\nTotal operating expenses for the three months ended August 31, 2026 were\n$607,000, compared to $550,000 for the same period in 2025, an increase of\n$57,000, or 10.4%. The increase was primarily attributable to a $115,000\nincrease in marketing fund expenses, partially offset by a $58,000 decrease in\nselling, general and administrative expenses. Total operating expenses for the\nnine months ended August 31, 2026 were $1,734,000, compared to $1,767,000 for\nthe same period in 2025, a decrease of $33,000, or 1.9%. The decrease was\nprimarily attributable to a $109,000 decrease in selling, general and\nadministrative expenses, partially offset by a $76,000 increase in marketing\nfund expenses.\n\nBAB, Inc. franchises and licenses Big Apple Bagels®, My Favorite Muffin®,\nSweetDuet® frozen yogurt and Brewster’s® Coffee. The Company’s stock is\ntraded on the OTCQB under the symbol BABB and its website can be visited at\nwww.babcorp.com.\n\nCertain statements in this press release constitute forward-looking statements\nor statements which may be deemed or construed to be forward-looking\nstatements within the meaning of the Private Securities Litigation Reform Act\nof 1995. The words “forecast,” “estimate,” “project,”\n“intend,” “expect,” “should,” “would,” “believe” and\nsimilar expressions and all statements which are not historical facts are\nintended to identify forward-looking statements. These forward-looking\nstatements involve and are subject to known and unknown risks, uncertainties\nand other factors which could cause the company’s actual results,\nperformance (financial or operating), or achievements to differ from the\nfuture results, performance (financial or operating), or achievements\nexpressed or implied by such forward-looking statements. The above factors are\nmore fully discussed in the company’s SEC filings.\n\n(TABLE FOLLOWS)\n\n Contact:  BAB, Inc. Geraldine Conn (847) 948-7520 Fax: (847) 405-8140 www.babcorp.com  \n                                                                                        \n\n\n\n BAB, INC.                                                                                                                                                                     \n CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                                                                                                                               \n                                                                                                                                                                               \n                                                                                                                                                                               \n                                             Quarter Ended                                                     Nine Months Ended                                               \n                                             08/31/26                 08/31/25                 % Change        08/31/26                 08/31/25                 % Change      \n                                                                                                                                                                               \n REVENUES                                                                                                                                                                      \n                                                                                                                                                                               \n Royalty fees from franchised stores         $    530,868             $    511,736             3.7    %        $    1,516,777           $    1,480,809           2.4    %      \n Franchise and area development fee revenue       2,987                    3,082               -3.1   %             18,187                   15,248              19.3   %      \n Licensing fees and other income                  72,134                   66,785              8.0    %             193,006                  207,138             -6.8   %      \n Marketing Fund Revenue                           301,878                  186,930             61.5   %             707,250                  631,025             12.1   %      \n Total Revenue                                    907,867                  768,533             18.1   %             2,435,220                2,334,220           4.3    %      \n                                                                                                                                                                               \n OPERATING COSTS AND EXPENSES                                                                                                                                                  \n                                                                                                                                                                               \n Selling, general and administrative              304,405                  361,690             -15.8  %             1,012,374                1,133,384           -10.7  %      \n Depreciation and amortization                    300                      1,081               N/A                  14,139                   3,042               N/A           \n Marketing Fund Expenses                          301,878                  186,930             61.5   %             707,250                  631,025             12.1   %      \n Total Expense                                    606,583                  549,701             10.3   %             1,733,763                1,767,451           -1.9   %      \n                                                                                                                                                                               \n Income from operations                           301,284                  218,832             37.7   %             701,457                  566,769             23.8   %      \n Interest expense                                 -                        -                   -                    -                        -                   -             \n Interest/other income                            13,089                   14,597              -10.3  %             38,767                   43,219              -10.3  %      \n Income taxes                                     (86,996    )             (65,800    )        32.2   %             (206,796   )             (171,800   )        20.4   %      \n                                                                                                                                                                               \n NET INCOME                                  $    227,377             $    167,629             35.6   %        $    533,428             $    438,188             21.7   %      \n                                                                                                                                                                               \n Earnings per share - basic and diluted      $    0.03                $    0.02                N/M             $    0.07                $    0.06                N/M           \n Average number of shares outstanding             7,263,508                7,263,508                                7,263,508                7,263,508                         \n                                                                                                                                                                               \n\n\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-10-09T16:52:06.242915201Z","server_sent_at_ms":1791564726242},"received_at":"2026-10-09T16:52:06.293Z","source_url":null},"analysis":{"id":"154038","press_release_id":"165648","analysis_json":{"industry":{"label":"Hotels, Restaurants & Leisure","sector":"Consumer Discretionary"},"redFlags":["much of the headline 18.1% revenue growth is offsetting marketing fund pass-through revenue, not core growth"],"eventType":"earnings","narrative":"BAB, Inc. reported Q3 FY2026 revenue of $908,000, up 18.1% year-over-year, with net income of $227,000 ($0.03 per share) versus $168,000 ($0.02) a year ago.\n\nThe revenue jump was driven mainly by a $115,000 increase in marketing fund revenue, which directly offsets matching expenses and has no net income impact; underlying royalty fees rose 3.7%.\n\nFor the nine months, revenue grew 4.3% to $2.44 million with net income of $533,000, helped by a 10.7% cut in SG&A 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