Rave Restaurant Group (RAVE) Q1 2026 earnings summary

Executive summary

• Net income for the quarter ended September 28, 2025 was $645,000, up 22.6% year-over-year, with revenue rising 5.3% to $3.2 million.

• Marked the 22nd consecutive quarter of profitability.

• Strong performance attributed to value promotions, disciplined expense management, and robust Pizza Inn segment growth, while Pie Five experienced declines.

• Adjusted EBITDA increased to $830,000 from $720,000 year-over-year, reflecting improved operating performance.

Financial highlights

• Revenue increased 5.3% year-over-year to $3.2 million, driven by higher Pizza Inn franchise royalties and supplier incentives.

• Net income rose to $645,000, with EPS up to $0.05 from $0.04.

• Adjusted EBITDA grew by $110,000 to $830,000, aided by higher revenues and lower stock-based compensation.

• Cash and short-term investments totaled $10.6 million at quarter end.

• Operating income increased to $752,000 from $609,000 year-over-year.

Outlook and guidance

• Management expects modest increases in both domestic and international Pizza Inn units in future periods, with multiple new buffet openings scheduled for Q2.

• Pie Five units are anticipated to decrease modestly going forward.

• Plans to expand the $8 value promotion to more locations in January with media support.

• Cash on hand and operating cash flow are expected to be sufficient to fund operations for at least the next 12 months.