BAB Posts $119,168 Q1 Profit as Operating Expenses Drop 6.4%

BAB, Inc., a Delaware-based small business filer, reported net income of $119,168 for the three months ending February 28, 2026, up 2.5% from $116,267 in the prior-year quarter. The company posted operating income of $152,745, compared to $147,179 a year earlier. Read more earnings reports.

Operating expenses fell 6.4% to $570,918 from $610,022 in the quarter ending February 28, 2025. The company paid $46,700 in income tax for the quarter, compared to $45,800 in the same period last year.

Cash from operations surged 74% to $182,241 from $104,543 year-over-year. Cash used in financing activities totaled $145,271, down from $217,906 in the prior-year quarter. The company reported no investing activity during the current quarter.

Total assets stood at $4.77 million as of February 28, 2026, down slightly from $4.78 million at the November 30, 2025 fiscal year-end. Cash and cash equivalents declined to $2.11 million from $2.15 million over the same three-month period.

Accounts payable jumped to $60,005 from $8,477 at the prior quarter-end. Current liabilities rose to $636,998 from $586,323, while total liabilities increased to $1.33 million from $1.32 million.

Stockholders' equity decreased to $3.44 million as of February 28, 2026, from $3.46 million three months earlier. The company carried a retained earnings deficit of $10.83 million. BAB had 7.26 million shares outstanding at quarter-end.

The company reported earnings per share of $0.02 for both the current quarter and the year-ago period, based on 7.26 million weighted average shares outstanding.