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How BAB (BABB) makes money

BAB (BABB) made $908K of revenue in the third quarter fiscal 2026 (Q3 FY26), +18% from a year earlier. Royalty brought in $531K (58%); Marketing Fund brought in $302K (33%); Licensing Fees and Other Income brought in $72K (8%). Of every dollar of revenue, 33¢ was left as operating profit, 25¢ was left as net earnings.

Drawing the Sankey…

BAB revenue by segment, Q3 FY26BAB revenue by segment, Q3 FY26Royalty$531KMarketing Fund$302KLicensing Fees and Other Income$72KFranchise$3K
BAB: revenue by line, Q1 FY25 to Q3 FY26BAB: revenue by line, Q1 FY25 to Q3 FY26RoyaltyMarketing FundLicensing Fees and Ot…FranchiseRoyalty: $531K latest$531KMarketing Fund: $302K latest$302KLicensing Fees and Other Income: $72K latestFranchise: $3K latestQ1 FY25Q2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26
Marketing Fund went from 29% of revenue in Q1 FY25 to 33% in Q3 FY26, the largest shift in the mix.
BAB revenue by quarterBAB revenue by quarter$757KQ1 FY25$808KQ2 FY25$769KQ3 FY25$1.1MQ4 FY25$724KQ1 FY26$804KQ2 FY26$908KQ3 FY26
BAB: where each dollar of revenue goesBAB: where each dollar of revenue goesOperating profit33¢Income tax10¢Net earnings25¢Operating cash flow29¢

Revenue by segment, Q3 FY26

SegmentRevenueShareQ/QY/Y
Royalty$531K58.5%+2%+4%
Marketing Fund$302K33.3%+46%+61%
Licensing Fees and Other Income$72K7.9%+4%+8%
Franchise$3K0.3%-58%-3%

Where each dollar of revenue goes

LineQ3 FY26% of revenue
Revenue$908K100.0%
Operating profit$301K33.2%
Income tax$87K9.6%
Net earnings$227K25.0%
Operating cash flow$267K29.4%

Revenue, quarter by quarter

QuarterRevenueY/Y
Q3 FY26$908K+18%
Q2 FY26$804K-0.6%
Q1 FY26$724K-4%
Q4 FY25$1.1M+16%
Q3 FY25$769K-12%
Q2 FY25$808K-8%
Q1 FY25$757K-9%

From BAB's 10-Q filed Oct 13, 2026 (on EDGAR).

Questions

How does BAB make money?

BAB (BABB) made $908K of revenue in the third quarter fiscal 2026 (Q3 FY26), +18% from a year earlier. Royalty brought in $531K (58%); Marketing Fund brought in $302K (33%); Licensing Fees and Other Income brought in $72K (8%). Of every dollar of revenue, 33¢ was left as operating profit, 25¢ was left as net earnings.

What is BAB's biggest business?

Royalty: $531K in the third quarter fiscal 2026, 58% of revenue, +4% from a year earlier.

What is BAB's profit margin?

Net earnings were $227K, 25.0% of revenue, in the third quarter fiscal 2026; the operating margin was 33.2%.

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Updated Nov 8, 2026. Read automatically from SEC filings and public data; errors are possible. Not investment advice.