RAVE Restaurant Group Inc reported a positive QQ3 2025 with modest year-over-year growth and solid margins, underscored by a liquidity-rich balance sheet and positive operating cash flow. Revenue of 2.966 million rose 0.14% year-over-year and 3.38% quarter-over-quarter, while gross profit reached 2.198 million for a gross margin of 74.1%. Operating income stood at 0.866 million (operating margin ~29.2%), leading to net income of 0.722 million and earnings per share of 0.05. The quarter benefits from a lean cost structure and franchise-focused business model, which supports high margins even at a small scale. Net cash provided by operating activities was 0.953 million, with free cash flow also reported at 0.953 million, indicating efficient cash generation relative to the scale of the business. The balance sheet shows minimal leverage, a robust current ratio (6.51x), and a net debt position near zero, reflecting prudently managed liquidity amid a capital-light strategy. However, the company maintains a sizeable portion of short-term investments (marketable securities) which, while enhancing liquidity, adds asset sensitivity to market fluctuations. Overall, the QQ3 2025 results reinforce a stable, cash-generative model with potential for disciplined growth through franchising, while underscoring the need to monitor unit economics and brand/vintage risk in a highly franchise-dependent environment.