Noble Roman's Swings to Profit on Strong Revenue Growth

Ticker: NROM · Form: 10-Q · Filed: Aug 21, 2025 · CIK: 709005

Sentiment: bullish

Topics: Restaurant Industry, Franchising, Small Cap, Profitability Turnaround, Debt Refinancing, Non-Traditional Expansion, QSR

TL;DR

**NROM is finally cooking with gas, turning a loss into a profit and expanding its footprint – time to buy the dip!**

AI Summary

Noble Roman's, Inc. (NROM) reported a significant turnaround in net income for the six months ended June 30, 2025, reaching $501,514, a substantial improvement from a net loss of $29,619 in the prior-year period. Total revenue increased by 3.56% to $7,840,588 for the six-month period, up from $7,570,783 in 2024. This growth was driven by a 3.0% increase in company-owned Craft Pizza & Pub revenue to $4,343,877 and a 24.2% rise in company-owned non-traditional revenue to $589,598. Franchising revenue also saw a modest increase of 1.37% to $2,900,159. Operating income surged by 42.97% to $1,415,639 for the six months, compared to $990,134 in 2024, largely due to a 29.0% reduction in general and administrative expenses to $810,665. The company opened 21 new non-traditional outlets and closed three during the six-month period, indicating expansion in this segment. NROM is actively pursuing new financing to repay its $6.4 million Corbel loan due June 30, 2026, and subordinated notes, expressing confidence in its ability to secure favorable terms based on credit metrics.

Why It Matters

This filing signals a positive shift for NROM, moving from a net loss to profitability, which could attract investor interest. The significant increase in operating income and reduction in G&A expenses demonstrate improved operational efficiency, a key factor for long-term sustainability. For employees, continued expansion, particularly in non-traditional outlets, suggests job stability and potential growth opportunities. Customers benefit from new locations and potentially enhanced service as the company strengthens its financial position. In a competitive quick-service restaurant market, NROM's ability to grow revenue and expand its footprint, especially in non-traditional formats, indicates resilience and strategic execution, potentially putting pressure on smaller regional competitors.

Risk Assessment

Risk Level: medium — The company faces a 'medium' risk primarily due to its reliance on securing new financing to repay the $6.4 million Corbel loan and subordinated notes by June 30, 2026. While management expresses confidence, there is "no assurance that the Company will be able to obtain the financing as planned on favorable terms or at all." Additionally, the resignation of Sassetti LLC as the principal accountant and the lack of an independent review for this 10-Q introduce a regulatory and transparency risk.

Analyst Insight

Investors should monitor NROM's progress in securing new financing for the Corbel loan, as this is a critical near-term catalyst. The positive earnings trend and expansion in non-traditional outlets are encouraging, but the lack of an independent auditor's review for this filing warrants caution. Consider a small, speculative position if the refinancing news is positive, but be prepared for volatility.

Financial Highlights

debt To Equity
4.93
revenue
$7,840,588
operating Margin
18.05%
total Assets
$16,228,598
total Debt
$13,491,741
net Income
$501,514
eps
$0.02
gross Margin
N/A
cash Position
$635,629
revenue Growth
+3.56%

Revenue Breakdown

SegmentRevenueGrowth
Company-owned Craft Pizza & Pub$4,343,877+3.0%
Company-owned non-traditional$589,598+24.2%
Franchising$2,900,159+1.37%

Key Numbers

Key Players & Entities

FAQ

What were Noble Roman's key financial results for the six months ended June 30, 2025?

Noble Roman's reported a net income of $501,514 for the six months ended June 30, 2025, a significant improvement from a net loss of $29,619 in the same period of 2024. Total revenue increased to $7,840,588, up from $7,570,783 in the prior year.

How did Noble Roman's revenue streams perform in the first half of 2025?

Company-owned Craft Pizza & Pub revenue increased by 3.0% to $4,343,877, while company-owned non-traditional revenue surged by 24.2% to $589,598. Franchising revenue also saw a modest increase of 1.37% to $2,900,159 for the six months ended June 30, 2025.

What is Noble Roman's strategy regarding its Corbel loan?

Noble Roman's is actively pursuing new financing to repay the $6.4 million loan from Corbel Capital Partners SBIC, L.P., which matures on June 30, 2026, and to repay its subordinated notes. The company believes its credit metrics support obtaining favorable refinancing terms.

What is the status of Noble Roman's auditor for 2025?

Sassetti LLC resigned as Noble Roman's principal accountant effective June 18, 2025. The Board of Directors is currently evaluating alternative independent accountants, and this 10-Q has not been reviewed by an independent registered public accounting firm.

How many new Noble Roman's locations were opened in the first half of 2025?

During the six-month period ended June 30, 2025, Noble Roman's opened 21 new non-traditional outlets and closed three non-traditional outlets. There were no new company-operated or franchised Craft Pizza & Pub restaurants opened or closed.

What was the change in Noble Roman's general and administrative expenses?

General and administrative expenses for Noble Roman's decreased significantly by 29.0% to $810,665 for the six months ended June 30, 2025, compared to $1,147,416 in the same period of 2024.

What is the current outstanding common stock for Noble Roman's?

As of August 18, 2025, there were 22,215,512 shares of Common Stock, no par value, outstanding for Noble Roman's, Inc. This number remained consistent from December 31, 2024, to June 30, 2025.

What is the Employee Retention Tax Credit (ERTC) impact on Noble Roman's financials?

Noble Roman's determined it was entitled to an ERTC of $1.718 million in the first quarter of 2023, with a net refund of $1.46 million after expenses. The company has received all five quarterly refunds for its subsidiary RH Roanoke, Inc. and three of five for Noble Roman's, Inc., with the final claim in process.

What are the risks associated with Noble Roman's financing efforts?

The primary risk is that Noble Roman's cannot assure it will obtain new financing to repay the Corbel loan and subordinated notes on favorable terms or at all. This could impact the company's liquidity and financial stability if not resolved before the June 30, 2026, maturity.

How did Noble Roman's operating income change year-over-year?

Noble Roman's operating income increased substantially by 42.97% to $1,415,639 for the six months ended June 30, 2025, up from $990,134 in the corresponding period of 2024.

Risk Factors

Industry Context

The quick-service restaurant (QSR) and casual dining sectors are highly competitive, with companies focusing on differentiation through unique offerings and efficient operations. Noble Roman's strategy leverages its established pizza brand, expanding through both company-owned and franchised models, with a particular emphasis on non-traditional locations for rapid growth.

Regulatory Implications

As a publicly traded company, NROM is subject to SEC regulations and reporting requirements. Compliance with financial reporting standards is essential. There are no specific new regulatory risks highlighted in this filing, but ongoing adherence to food safety and business licensing regulations is implicit.

What Investors Should Do

  1. Monitor refinancing progress for the Corbel loan.
  2. Evaluate the performance and expansion of non-traditional outlets.
  3. Assess the impact of reduced G&A expenses on sustained profitability.

Key Dates

Glossary

Non-traditional locations
Noble Roman's pizza operations located within other host businesses or activities, such as convenience stores or travel plazas, leveraging existing customer traffic. (This segment is a key growth area for NROM, with 21 new outlets opened in the period.)
Craft Pizza & Pub
Noble Roman's full-service restaurant format, which the company aims to franchise to experienced operators. (This segment saw a 3.0% revenue increase, indicating continued traction.)
Corbel loan
A significant debt obligation of $6.4 million due in June 2026, which the company is actively seeking to refinance. (Repayment of this loan is a critical financial event for the company in the near future.)
General and administrative expenses (G&A)
Costs associated with the overall management and administration of the company, not directly tied to production or sales. (A significant reduction in G&A expenses (29.0%) contributed substantially to the improved operating income.)

Year-Over-Year Comparison

Noble Roman's Inc. has demonstrated a significant financial turnaround compared to the prior year's six-month period. Total revenue saw a modest increase of 3.56% to $7.84 million, while net income swung dramatically from a loss of $29,619 to a profit of $501,514. This improvement was largely driven by a substantial 42.97% increase in operating income, fueled by a significant 29.0% reduction in general and administrative expenses. The company also reported a positive diluted EPS of $0.02, up from a negligible amount in the prior year.

Filing Stats: 4,474 words · 18 min read · ~15 pages · Grade level 15.1 · Accepted 2025-08-21 16:01:30

Key Financial Figures

Filing Documents

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

ITEM 1. Financial Statements The following unaudited consolidated financial statements are included herein: The following unaudited consolidated financial statements are included herein: Consolidated balance sheets as of December 31, 2024 and June 30, 2025 (unaudited) Page 3 Condensed consolidated statements of operations for the three-month and six-month periods ended June 30, 2024 and 2025 (unaudited) Page 4 Condensed consolidated statements of changes in stockholders' equity for the three-month periods ended June 30, 2024 and 2025 and six-month periods ended June 30, 2024 and 2025 (unaudited) Page 5 Condensed consolidated statements of cash flows for the six-month periods ended June 30, 2024 and 2025 (unaudited) Page 6 Notes to condensed consolidated financial statements (unaudited) Page 7 Page 2 Table of Contents Noble Roman's, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (Unaudited and Not Reviewed) Assets December 31, 2024 June 30, 2025 Current assets: (not reviewed) (not reviewed) Cash $ 710,227 $ 635,629 Employee Retention Tax Credit Receivable 507,726 507,726 Accounts receivable - net 586,554 662,624 Inventories 986,975 1,003,365 Prepaid expenses 194,902 231,149 Total current assets 2,986,384 3,040,493 Property and equipment: Equipment 4,349,205 4,398,834 Leasehold improvements 3,142,591 3,156,209 7,491,796 7,555,043 Less accumulated depreciation and amortization 3,583,276 3,779,783 Net property and equipment 3,908,520 3,775,260 Deferred tax asset 3,532,199 3,371,410 Deferred contract cost 1,604,952 1,682,831 Goodwill 278,466 278,466 Operating lease right of use assets 4,154,804 3,746,195 Other assets including long-term portion of receivables - net 303,922 333,943 Total assets $ 16,769,247 $ 16,228,598 Liabilities and Stockholders' Equity Current liabilities: Accounts payable and accrued expenses $ 840,848 $ 562,93

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Noble Roman's, Inc., an Indiana corporation incorporated in 1972, sells and services franchises, operates Company-owned stand-alone restaurants and non-traditional foodservice operations under the trade names "Noble Roman's Craft Pizza & Pub," "Noble Roman's Pizza," "Noble Roman's Take-N-Bake," and "Tuscano's Italian Style Subs." References in this report to the "Company" are to Noble Roman's, Inc. and its wholly-owned subsidiaries, unless the context requires otherwise. The Company's only operating subsidiary is RH Roanoke, Inc., which operates a Company-owned non-traditional location. The Company has been operating and franchising Noble Roman's Pizza operations in a variety of stand-alone and non-traditional locations across the country since 1972. Its first Craft Pizza & Pub location opened in January 2017 as a Company-operated restaurant in a northern suburb of Indianapolis, Indiana. Since then, the Company opened a total of eight more Company-operated Craft Pizza & Pub locations in 2017, 2018, 2020 and 2021. The Company-operated locations serve as the base for what it sees as a significant potential future growth driver by franchising its full-service restaurant format to experienced, multi-unit restaurant operators with a track record of success. In addition to the nine Company-operated Craft Pizza & Pub locations, third-party franchisees opened three franchised locations during 2019 and 2020. Today, in total, there are 12 Craft Pizza & Pub locations in operation. Noble Roman's Pizza for Non-Traditional Locations In 1997, the Company started franchising non-traditional locations (a Noble Roman's pizza operation within some other host business or activity with existing traffic) such as entertainment facilities, hospitals, convenience stores and other types of facilities. Today the Company is focusing primarily on convenience stores and travel plazas for rapid ex

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