Noble Roman's Net Income Soars 597% Amidst Expansion, Refinancing Efforts

Ticker: NROM · Form: 10-Q · Filed: Dec 29, 2025 · CIK: 709005

Sentiment: mixed

Topics: Restaurant Industry, Franchising, Debt Refinancing, Earnings Growth, Expansion Strategy, Small Cap, Dilution Risk

Related Tickers: NROM

TL;DR

**NROM is crushing it with soaring profits and aggressive expansion, but watch that massive Corbel loan coming due – refinancing is make or break!**

AI Summary

NOBLE ROMANS INC (NROM) reported a significant increase in net income for the nine months ended September 30, 2025, reaching $1,141,305, a substantial rise from $163,695 in the same period of 2024. Total revenue also grew to $11,984,240 for the nine-month period in 2025, up from $11,450,949 in 2024, driven by increases in company-owned restaurant revenue and non-traditional restaurant revenue. Operating income more than doubled to $2,234,703 for the nine months ended September 30, 2025, compared to $1,406,756 in the prior year. The company opened 31 new non-traditional locations during the first nine months of 2025 and expects to open approximately 27 more by December 31, 2025. A key strategic focus is refinancing the Corbel loan and subordinated notes, with management expressing confidence in securing new financing that could reduce effective interest rates and avoid equity-dilutive provisions. However, the current portion of the Corbel loan payable surged from $1,066,668 at December 31, 2024, to $5,691,623 at September 30, 2025, indicating an approaching maturity or significant repayment obligation. Diluted earnings per share increased to $0.04 for the nine months ended September 30, 2025, from $0.01 in the prior year.

Why It Matters

This filing reveals NROM's strong financial performance, with net income skyrocketing, which is a positive signal for investors looking for growth in the restaurant sector. The aggressive expansion of 31 new non-traditional locations and plans for 27 more by year-end demonstrate a clear growth strategy, potentially increasing market share and competitive positioning against rivals. However, the significant increase in the current portion of the Corbel loan payable to $5,691,623 highlights a critical near-term financial obligation that could impact liquidity and investor confidence if refinancing efforts are not successful. Employees and customers could benefit from the expansion, but the success of new financing will dictate the company's long-term stability and ability to invest further.

Risk Assessment

Risk Level: high — The risk level is high primarily due to the substantial increase in the current portion of the Corbel loan payable, which jumped from $1,066,668 at December 31, 2024, to $5,691,623 at September 30, 2025. While the company is pursuing new financing, there is no assurance it will be obtained as planned, creating significant refinancing risk. Additionally, the company has issued multiple new warrants to Corbel, including 750,000 shares in April 2025, 500,000 shares in August 2025, and 250,000 shares in September 2025, with an agreement for an additional 250,000 warrants every 30 days, indicating potential future dilution.

Analyst Insight

Investors should closely monitor NROM's progress on its refinancing efforts for the Corbel loan, as its success is critical to mitigating immediate financial risk. While the strong net income growth and expansion are positive, the significant debt maturity poses a material threat. Consider holding if confident in refinancing, but be prepared for volatility if new financing terms are unfavorable or delayed.

Financial Highlights

debt To Equity
3.75
revenue
$11,984,240
operating Margin
18.6%
total Assets
$16,084,056
total Debt
$12,698,211
net Income
$1,141,305
eps
$0.04
gross Margin
N/A
cash Position
$719,500
revenue Growth
+4.6%

Revenue Breakdown

SegmentRevenueGrowth
Company-owned restaurant revenue$11,984,240+4.6%
Non-traditional restaurant revenueN/AN/A

Key Numbers

Key Players & Entities

FAQ

What were Noble Roman's Inc.'s key financial results for the nine months ended September 30, 2025?

For the nine months ended September 30, 2025, Noble Roman's Inc. reported net income of $1,141,305, a significant increase from $163,695 in the prior year. Total revenue reached $11,984,240, up from $11,450,949 in 2024, and operating income more than doubled to $2,234,703.

How has Noble Roman's Inc. expanded its operations in 2025?

Noble Roman's Inc. opened 31 new non-traditional locations between January 1, 2025, and September 30, 2025. The company anticipates opening approximately 27 additional non-traditional franchise locations before December 31, 2025, with eight already opened in October.

What is the status of Noble Roman's Inc.'s loan from Corbel Capital Partners?

The current portion of the Corbel loan payable increased significantly to $5,691,623 as of September 30, 2025, from $1,066,668 at December 31, 2024. The company is actively pursuing new financing to repay this loan and the subordinated notes, with the Senior Note maturing on June 30, 2026.

What are the risks associated with Noble Roman's Inc.'s current debt situation?

The primary risk is the company's ability to secure new financing to repay the $5,691,623 current portion of the Corbel loan. While management is confident, there's no assurance of obtaining the financing as planned, which could impact liquidity and financial stability. Additionally, the issuance of new warrants to Corbel could lead to future equity dilution.

How did Noble Roman's Inc.'s earnings per share change for the nine months ended September 30, 2025?

Noble Roman's Inc.'s basic earnings per share increased to $0.05 for the nine months ended September 30, 2025, up from $0.01 in the same period of 2024. Diluted earnings per share also rose to $0.04 in 2025 from $0.01 in 2024.

What is the company's outlook on refinancing its debt?

Noble Roman's Inc. believes it will be able to complete the refinancing based on its credit metrics and forecasted earnings. The company expects the refinancing to result in some reduction in its effective interest rate and will not require any equity-dilutive provisions like those in its current arrangement with Corbel.

What was the impact of the Employee Retention Tax Credit (ERTC) on Noble Roman's Inc.?

Noble Roman's Inc. determined it was entitled to an ERTC of $1.718 million, with a net refund of $1.46 million after expenses. As of September 30, 2025, the company still has $507,726 included in employee retention tax credit receivable on the balance sheet, with the IRS indicating the final claim is in process.

How many shares of common stock are outstanding for Noble Roman's Inc.?

As of November 25, 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 September 30, 2025.

What types of revenue does Noble Roman's Inc. generate?

Noble Roman's Inc. generates revenue from company-owned restaurants, company-owned non-traditional locations, franchising revenue (including royalties, initial franchise fees, and equipment commissions), and administrative fees and other income. For the nine months ended September 30, 2025, company-owned restaurant revenue was $6,630,583 and franchising revenue was $4,367,815.

What is the significance of the warrants issued to Corbel by Noble Roman's Inc.?

Noble Roman's Inc. issued several warrants to Corbel, including an Original Corbel Warrant for 2,250,000 shares and New Corbel Warrants totaling 1,500,000 shares by September 30, 2025, with an agreement for additional 250,000 warrants each 30 days. These warrants, exercisable at $0.10 per share, represent potential future dilution for existing shareholders and are accounted for as a liability remeasured each reporting period.

Risk Factors

Industry Context

Noble Roman's operates in the highly competitive quick-service restaurant (QSR) industry. The sector is characterized by evolving consumer preferences, demand for convenience, and intense price competition. Growth in non-traditional locations, such as those in airports and universities, represents a strategic avenue for expansion and reaching new customer bases.

Regulatory Implications

The company must comply with various regulations related to food safety, labor practices, and financial reporting. Any changes in these regulations, such as minimum wage laws or new health standards, could impact operating costs and require adjustments to business practices.

What Investors Should Do

  1. Monitor Corbel Loan Refinancing Progress
  2. Evaluate Non-Traditional Location Performance
  3. Analyze Interest Expense and Debt Structure

Key Dates

Glossary

Corbel loan payable
Debt owed to Corbel, a lender, which is categorized as current if due within one year. (A significant portion of the company's debt, with a substantial increase in the current portion indicating near-term repayment needs.)
Diluted EPS
Earnings per share calculated after accounting for all dilutive potential common shares, such as stock options and warrants. (Shows the potential impact of outstanding options and warrants on shareholder earnings, which increased to $0.04 in 9M 2025.)
Non-traditional restaurant revenue
Revenue generated from restaurants located in non-traditional venues, such as airports, universities, or convenience stores. (A key growth driver for Noble Roman's, with 31 new locations opened in 9M 2025.)
Warrant liability
A financial liability representing the fair value of warrants issued by the company that are not yet exercised. (Fluctuations in this liability can affect net income and are presented on the balance sheet.)
Deferred tax asset
An asset on the balance sheet that represents future tax benefits arising from deductible temporary differences or tax loss carryforwards. (Represents a significant asset for the company, though it decreased from $3.53M to $3.23M.)

Year-Over-Year Comparison

Noble Roman's has demonstrated significant year-over-year improvement in its nine-month performance. Revenue grew by 4.6% to $11.98M, and net income saw a dramatic increase of 597% to $1.14M. Operating income also more than doubled, rising 58.3% to $2.23M. While these metrics show strong operational gains, the balance sheet reveals a substantial increase in current liabilities, primarily due to the Corbel loan, which has risen from $1.07M to $5.69M, indicating a shift in near-term financial obligations.

Filing Stats: 4,480 words · 18 min read · ~15 pages · Grade level 15.3 · Accepted 2025-12-29 08:31:51

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: Condensed consolidated balance sheets as of December 31, 2024 and September 30, 2025 (unaudited) Page 3 Condensed consolidated statements of operations for the three-month and nine-month periods ended September 30, 2024 and 2025 (unaudited) Page 4 Condensed consolidated statements of changes in stockholders' equity for the three-month periods ended September 30, 2024 and 2025 and nine-month periods ended September 30, 2024 and 2025 (unaudited) Page 5 Condensed consolidated statements of cash flows for the nine-month periods ended September 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 September 30, 2025 Current assets: (not reviewed) (not reviewed) Cash $ 710,227 $ 719,500 Employee Retention Tax Credit Receivable 507,726 507,726 Accounts receivable - net 586,554 723,065 Inventories 986,975 1,038,756 Prepaid expenses 194,902 264,271 Total current assets 2,986,384 3,253,318 Property and equipment: Equipment 4,349,205 4,427,934 Leasehold improvements 3,142,591 3,178,330 7,491,796 7,606,264 Less accumulated depreciation and amortization 3,583,276 3,877,732 Net property and equipment 3,908,520 3,728,532 Deferred tax asset 3,532,199 3,230,263 Deferred contract cost 1,604,952 1,696,452 Goodwill 278,466 278,466 Operating lease right of use assets 4,154,804 3,546,069 Other assets including long-term portion of receivables-net 303,922 350,956 Total assets $ 16,769,247 $ 16,084,056 Liabilities and Stockholders' Equity Current liabilities: Accounts payable a

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