BAB Inc (BABB) Q2 2024 Earnings Report

BAB Inc delivered QQ2 2024 results with revenue of 882,838 USD, up 2.1% year-over-year and 5.6% quarter-over-quarter. The reported gross margin is effectively 99.89%, with EBITDA of 187,431 and operating income of 186,450, yielding EBITDA and operating margins of about 21.2% and 21.1% respectively. Net income came in at 145,685 with an EPS of 0.0201, contributing to a net margin of 16.5%. The company generated positive operating cash flow of 120,509 and free cash flow of 120,510, ending the period with cash and cash equivalents of 2,167,597 and a net cash delta of 47,873 after paying 72,636 in cash dividends. Liquidity remains robust (current ratio 3.18; cash ratio 2.92) and the balance sheet shows a conservative leverage profile (total debt 407,137; debt to equity 0.127; net debt negative -1,760,460). However, the business carries a history of losses reflected in negative retained earnings (-11,067,033) and the scale remains modest, which may limit near-term multiple expansion absent stronger top-line growth. The lack of an explicit forward-looking guidance in the provided data constrains the near-term outlook to execution on franchise development and ongoing margin discipline.