Smith & Wesson Brands, Inc. Reports First Quarter Fiscal 2026 Financial Results
Smith & Wesson (NASDAQ: SWBI) reported its Q1 fiscal 2026 results, showing net sales of $85.1 million, a 3.7% decrease from the previous year. The company posted a net loss of $0.08 per share, compared to a loss of $0.04 per share in the same quarter last year. Gross margin declined to 25.9% from 27.4% year-over-year.
Despite the seasonal slowdown, SWBI demonstrated strong market share across all firearms categories, with new products accounting for 37.3% of sales. Distributor inventory declined by over 10% from the previous quarter and 13% year-over-year. The company announced a quarterly dividend of $0.13 per share, payable on October 2, 2025.
Management expects Q2 fiscal 2026 sales to grow significantly over Q1 but land 3-5% below Q2 fiscal 2025 levels.
Smith & Wesson (NASDAQ: SWBI) ha pubblicato i risultati del primo trimestre dell'esercizio 2026, registrando vendite nette per 85,1 milioni di dollari, in calo del 3,7% rispetto all'anno precedente. La societ脿 ha riportato una perdita netta di 0,08 dollari per azione, rispetto a una perdita di 0,04 dollari per azione nello stesso trimestre dell'anno scorso. Il margine lordo 猫 sceso al 25,9% rispetto al 27,4% anno su anno.
Nonostante la flessione stagionale, SWBI ha mostrato una solida quota di mercato in tutte le categorie di armi da fuoco, con i nuovi prodotti che hanno rappresentato il 37,3% delle vendite. L'inventario dei distributori 猫 diminuito di oltre il 10% rispetto al trimestre precedente e del 13% rispetto all'anno precedente. La societ脿 ha annunciato un dividendo trimestrale di 0,13 dollari per azione, pagabile il 2 ottobre 2025.
La direzione prevede che le vendite del secondo trimestre dell'esercizio 2026 cresceranno significativamente rispetto al primo trimestre, ma si posizioneranno dal 3% al 5% al di sotto dei livelli del secondo trimestre dell'esercizio 2025.
Smith & Wesson (NASDAQ: SWBI) present贸 sus resultados del primer trimestre del a帽o fiscal 2026, con ventas netas de 85,1 millones de d贸lares, una disminuci贸n del 3,7% respecto al a帽o anterior. La compa帽铆a registr贸 una p茅rdida neta de 0,08 d贸lares por acci贸n, frente a una p茅rdida de 0,04 d贸lares por acci贸n en el mismo trimestre del a帽o pasado. El margen bruto cay贸 al 25,9% desde el 27,4% interanual.
A pesar de la ralentizaci贸n estacional, SWBI mostr贸 una fuerte cuota de mercado en todas las categor铆as de armamento, con los productos nuevos representando el 37,3% de las ventas. El inventario de distribuidores descendi贸 m谩s del 10% respecto al trimestre anterior y un 13% interanual. La compa帽铆a anunci贸 un dividendo trimestral de 0,13 d贸lares por acci贸n, pagadero el 2 de octubre de 2025.
La direcci贸n espera que las ventas del segundo trimestre del a帽o fiscal 2026 crezcan significativamente respecto al primero, pero queden entre un 3% y un 5% por debajo de los niveles del segundo trimestre del a帽o fiscal 2025.
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Smith & Wesson (NASDAQ: SWBI) a publi茅 ses r茅sultats du premier trimestre de l'exercice 2026, affichant des ventes nettes de 85,1 millions de dollars, soit une baisse de 3,7% par rapport 脿 l'ann茅e pr茅c茅dente. La soci茅t茅 a enregistr茅 une perte nette de 0,08 $ par action, contre une perte de 0,04 $ par action au m锚me trimestre l'an dernier. La marge brute est pass茅e de 27,4% 脿 25,9% en glissement annuel.
Malgr茅 le ralentissement saisonnier, SWBI a d茅montr茅 une forte part de march茅 dans toutes les cat茅gories d'armes 脿 feu, les nouveaux produits repr茅sentant 37,3% des ventes. Les stocks chez les distributeurs ont diminu茅 de plus de 10% par rapport au trimestre pr茅c茅dent et de 13% en glissement annuel. La soci茅t茅 a annonc茅 un dividende trimestriel de 0,13 $ par action, payable le 2 octobre 2025.
La direction s'attend 脿 ce que les ventes du deuxi猫me trimestre de l'exercice 2026 augmentent sensiblement par rapport au premier trimestre, mais restent de 3 脿 5% en dessous des niveaux du deuxi猫me trimestre de l'exercice 2025.
Smith & Wesson (NASDAQ: SWBI) gab seine Ergebnisse f眉r das erste Quartal des Gesch盲ftsjahres 2026 bekannt und verzeichnete Nettoverk盲ufe von 85,1 Millionen US-Dollar, ein R眉ckgang von 3,7% gegen眉ber dem Vorjahr. Das Unternehmen meldete einen Nettoverlust von 0,08 US-Dollar je Aktie, im Vergleich zu einem Verlust von 0,04 US-Dollar je Aktie im gleichen Quartal des Vorjahres. Die Bruttomarge sank von 27,4% auf 25,9% im Jahresvergleich.
Trotz der saisonalen Abschw盲chung zeigte SWBI eine starke Marktposition in allen Waffen-Kategorien, wobei Neuprodukte 37,3% der Verk盲ufe ausmachten. Die Lagerbest盲nde bei Distributoren fielen gegen眉ber dem Vorquartal um 眉ber 10% und im Jahresvergleich um 13%. Das Unternehmen k眉ndigte eine Quartalsdividende von 0,13 US-Dollar je Aktie an, zahlbar am 2. Oktober 2025.
Das Management erwartet, dass die Ums盲tze im zweiten Quartal des Gesch盲ftsjahres 2026 deutlich gegen眉ber dem ersten Quartal steigen, jedoch 3鈥�5% unter dem Niveau des zweiten Quartals des Gesch盲ftsjahres 2025 liegen werden.
- New products drove 37.3% of quarterly sales, showing successful innovation strategy
- Distributor inventory decreased by over 10% quarter-over-quarter, indicating strong retail sell-through
- Maintained quarterly dividend of $0.13 per share
- Strong market share maintained across all firearms categories
- Net sales decreased 3.7% year-over-year to $85.1 million
- Net loss widened to $0.08 per share from $0.04 year-over-year
- Gross margin declined to 25.9% from 27.4% year-over-year
- Q2 fiscal 2026 sales expected to be 3-5% below previous year's Q2
Insights
Smith & Wesson reported declining Q1 results with net sales down 3.7% YoY and larger losses, though inventory reductions suggest healthier retail sell-through.
Smith & Wesson's Q1 fiscal 2026 results reveal a challenging quarter with
Despite these headline figures showing weakness, there are some positive undercurrents. Management characterized the results as "better than expected" with robust demand for new products, which comprised
The inventory situation provides another silver lining 鈥� distributor inventory declined by over
Looking ahead, management expects Q2 fiscal 2026 sales to grow significantly compared to Q1, though still landing
- Q1 Net Sales of
- Q1 Gross Margin of
- Q1 Net Loss of
Maryville, Tennesse--(Newsfile Corp. - September 4, 2025) - Smith & Wesson Brands, Inc. (NASDAQ: SWBI), a U.S.-based leader in firearm manufacturing and design, today announced financial results for the first quarter fiscal year 2026, ended July 31, 2025.
Financial Highlights
- Net sales were
$85.1 million , a decrease of$3.3 million , or3.7% , from the comparable quarter last year. - Gross margin was
25.9% compared with27.4% in the comparable quarter last year. - GAAP net loss was
$3.4 million , or$0. 08 per diluted share, compared with$1.9 million , or$0.04 per diluted share, for the comparable quarter last year. - Non-GAAP net loss was
$3.4 million , or$0. 08 per diluted share, compared with$881 thousand , or$0.02 per diluted share, for the comparable quarter last year. GAAP to non-GAAP adjustments for income exclude costs related to the relocation. For a detailed reconciliation, see the schedules that follow in this release. - Non-GAAP Adjusted EBITDAS was
$8.0 million , or9.5% of net sales, compared with$10.2 million , or11.8% of net sales, for the comparable quarter last year.
Mark Smith, President and Chief Executive Officer, commented, "First quarter results came in better than expected, reflecting robust demand for our new products and continued strong market share for our broader portfolio in every firearms category in which we compete. Our performance during the seasonal slow period for firearms demonstrates the strength of our brand and the ongoing success of our innovation strategy. Innovation remains a cornerstone of our strategy, with new products accounting for
Deana McPherson, Executive Vice President and Chief Financial Officer, commented, "During the quarter, inventory at distributors declined by over
Conference Call and Webcast
The company will host a conference call and webcast on September 4, 2025 to discuss its first quarter fiscal 2026 financial and operational results. Speakers on the conference call will include Mark Smith, President and Chief Executive Officer, and Deana McPherson, Executive Vice President and Chief Financial Officer. The conference call may include forward-looking statements. The conference call and webcast will begin at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). Interested parties in North America are invited to participate by dialing 1-877-704-4453. Interested parties from outside North America are invited to participate by dialing 1-201-389-0920. Participants should dial in at least 10 minutes prior to the start of the call. A live and archived webcast of the event will be available on the company's website at under the Investor Relations section.
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures
In this press release, certain non-GAAP financial measures, including "non-GAAP net income," "Adjusted EBITDAS," and "free cash flow" are presented. From time-to-time, we consider and use these supplemental measures of operating performance in order to provide the reader with an improved understanding of underlying performance trends. We believe it is useful for us and the reader to review, as applicable, both (1) GAAP measures that include (i) interest expense, (ii) income tax benefit, (iii) depreciation and amortization, (iv) stock-based compensation expense, (v) relocation expense, and (vi) the tax effect of non-GAAP adjustments; and (2) the non-GAAP measures that exclude such information. We present these non-GAAP measures because we consider them an important supplemental measure of our performance. Our definition of these adjusted financial measures may differ from similarly named measures used by others. We believe these measures facilitate operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would not otherwise be apparent on a GAAP basis. These non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for our GAAP measures. The principal limitations of these measures are that they do not reflect our actual expenses and may thus have the effect of inflating its financial measures on a GAAP basis.
About Smith & Wesson Brands, Inc.
Smith & Wesson Brands, Inc. (NASDAQ: SWBI) is a U.S.-based leader in firearm manufacturing and design, delivering a broad portfolio of quality handgun, long gun, and suppressor products to the global consumer and professional markets under the iconic Smith & Wesson® and Gemtech® brands. The company also provides forging and machining services to third parties. For more information call (800) 331-0852 or visit .
Safe Harbor Statement
Certain statements contained in this press release may be deemed to be forward-looking statements under federal securities laws, and we intend that such forward-looking statements be subject to the safe-harbor created thereby. Such forward-looking statements include, among others, that (i) with a strong pipeline of new products upcoming, we will continue to invest in innovation to keep the line fresh, and ensure we maintain our leadership position; and (ii) we expect a normal seasonal environment, causing our second fiscal quarter sales to grow significantly over the first quarter and to land roughly at 3
Contact:
[email protected]
(413) 747-3448
SMITH &WESSON BRANDS, INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
| As of: | ||||||
| July 31, 2025 | April 30, 2025 | |||||
| (In thousands, except par value and share data) | ||||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 17,964 | $ | 25,231 | ||
| Marketable securities | 3,219 | — | ||||
| Accounts receivable, net of allowances for credit losses of | ||||||
| July 31, 2025 and | 41,309 | 55,868 | ||||
| Inventories | 203,097 | 189,840 | ||||
| Prepaid expenses and other current assets | 9,041 | 6,260 | ||||
| Income tax receivable | 883 | 66 | ||||
| Total current assets | 275,513 | 277,265 | ||||
| Property, plant, and equipment, net of accumulated depreciation and | ||||||
| amortization of | 239,407 | 242,648 | ||||
| Intangibles, net | 2,370 | 2,409 | ||||
| Goodwill | 19,024 | 19,024 | ||||
| Deferred income taxes | 10,260 | 10,260 | ||||
| Other assets | 8,059 | 8,006 | ||||
| Total assets | $ | 554,633 | $ | 559,612 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable | $ | 21,225 | $ | 26,887 | ||
| Accrued expenses and deferred revenue | 18,104 | 24,678 | ||||
| Accrued payroll and incentives | 7,689 | 9,060 | ||||
| Accrued profit sharing | 4,636 | 4,636 | ||||
| Accrued warranty | 1,252 | 1,379 | ||||
| Total current liabilities | 52,906 | 66,640 | ||||
| Notes and loans payable | 94,147 | 79,096 | ||||
| Finance lease payable, net of current portion | 33,257 | 33,703 | ||||
| Other non-current liabilities | 9,944 | 7,719 | ||||
| Total liabilities | 190,254 | 187,158 | ||||
| Commitments and contingencies | ||||||
| Stockholders' equity: | ||||||
| Preferred stock, | ||||||
| issued or outstanding | — | — | ||||
| Common stock, | ||||||
| 75,988,368 issued and 44,310,374 shares outstanding on July 31, 2025 and 75,789,455 shares issued and 44,111,461 shares outstanding on April 30, 2025 | 76 | 76 | ||||
| Additional paid-in capital | 299,175 | 298,075 | ||||
| Retained earnings | 523,420 | 532,615 | ||||
| Treasury stock, at cost (31,677,994 shares on July 31, 2025 and | ||||||
| 31,677,994 shares on April 30, 2025) | (458,292 | ) | (458,312 | ) | ||
| Total stockholders' equity | 364,379 | 372,454 | ||||
| Total liabilities and stockholders' equity | $ | 554,633 | $ | 559,612 | ||
SMITH & WESSON BRANDS, INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| For the Three Months Ended July 31, | ||||||
| 2025 | 2024 | |||||
| (In thousands, except per share data) | ||||||
| Net sales | $ | 85,077 | $ | 88,334 | ||
| Cost of sales | 63,003 | 64,148 | ||||
| Gross profit | 22,074 | 24,186 | ||||
| Operating expenses: | ||||||
| Research and development | 3,007 | 2,515 | ||||
| Selling, marketing, and distribution | 8,752 | 9,889 | ||||
| General and administrative | 13,316 | 13,366 | ||||
| Gain on sale/disposition of assets, net | (43 | ) | (58 | ) | ||
| Total operating expenses | 25,032 | 25,712 | ||||
| Operating loss | (2,958 | ) | (1,526 | ) | ||
| Other expense, net: | ||||||
| Other income/(expense), net | 62 | (6 | ) | |||
| Interest expense, net | (1,205 | ) | (732 | ) | ||
| Total other expense, net | (1,143 | ) | (738 | ) | ||
| Loss before income taxes | (4,101 | ) | (2,264 | ) | ||
| Income tax benefit | (690 | ) | (409 | ) | ||
| Net loss | $ | (3,411 | ) | $ | (1,855 | ) |
| Net loss per share: | ||||||
| Basic - net loss | $ | (0.08 | ) | $ | (0.04 | ) |
| Diluted - net loss | $ | (0.08 | ) | $ | (0.04 | ) |
| Weighted average number of common shares outstanding: | ||||||
| Basic | 44,262 | 45,321 | ||||
| Diluted | 44,262 | 45,321 | ||||
SMITH & WESSON BRANDS, INC AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
| For the Three Months Ended July 31, | ||||||
| 2025 | 2024 | |||||
| (In thousands) | ||||||
| Cash flows from operating activities: | ||||||
| Net loss | $ | (3,411 | ) | $ | (1,855 | ) |
| Adjustments to reconcile net loss to net cash used in | ||||||
| operating activities: | ||||||
| Depreciation and amortization | 8,436 | 8,048 | ||||
| Gain on sale/disposition of assets | (43 | ) | (58 | ) | ||
| Deferred income taxes | — | 84 | ||||
| Stock-based compensation expense | 1,892 | 1,854 | ||||
| Non-cash sublease income | (442 | ) | (425 | ) | ||
| Other, net | (51 | ) | 5 | |||
| Changes in operating assets and liabilities: | ||||||
| Accounts receivable | 14,559 | 11,307 | ||||
| Inventories | (13,257 | ) | (29,315 | ) | ||
| Prepaid expenses and other current assets | (2,781 | ) | (4,066 | ) | ||
| Income taxes | (817 | ) | (688 | ) | ||
| Accounts payable | (6,429 | ) | (11,740 | ) | ||
| Accrued payroll and incentives | (1,371 | ) | (4,839 | ) | ||
| Accrued profit sharing | — | 59 | ||||
| Accrued expenses and deferred revenue | (4,092 | ) | 526 | |||
| Accrued warranty | (127 | ) | (70 | ) | ||
| Other assets | 23 | 313 | ||||
| Other non-current liabilities | (199 | ) | 45 | |||
| Net cash used in operating activities | (8,110 | ) | (30,815 | ) | ||
| Cash flows from investing activities: | ||||||
| Purchases of marketable securities | (3,168 | ) | — | |||
| Payments to acquire patents and software | (54 | ) | (21 | ) | ||
| Proceeds from sale of property and equipment | 49 | 58 | ||||
| Payments to acquire property and equipment | (4,291 | ) | (4,702 | ) | ||
| Net cash used in investing activities | (7,464 | ) | (4,665 | ) | ||
| Cash flows from financing activities: | ||||||
| Proceeds from loans and notes payable | 20,000 | 30,000 | ||||
| Payments on finance lease obligation | (46 | ) | (44 | ) | ||
| Payments on notes and loans payable | (5,000 | ) | — | |||
| Payments to acquire treasury stock | — | (12,856 | ) | |||
| Dividend distribution | (5,855 | ) | (5,886 | ) | ||
| Payment of employee withholding tax related to restricted stock units | (792 | ) | (1,058 | ) | ||
| Net cash provided by financing activities | 8,307 | 10,156 | ||||
| Net decrease in cash and cash equivalents | (7,267 | ) | (25,324 | ) | ||
| Cash and cash equivalents, beginning of period | 25,231 | 60,839 | ||||
| Cash and cash equivalents, end of period | $ | 17,964 | $ | 35,515 | ||
| Supplemental disclosure of cash flow information | ||||||
| Cash paid for: | ||||||
| Interest, net of amounts capitalized | $ | 1,288 | $ | 1,313 | ||
| Income taxes | $ | 194 | $ | 361 | ||
SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share data)
(Unaudited)
| For the Three Months Ended | ||||||||||||
| July 31, 2025 | July 31, 2024 | |||||||||||
| $ | % of Sales | $ | % of Sales | |||||||||
| GAAP net sales | $ | 85,077 | $ | 88,334 | ||||||||
| Relocation | — | (1,659 | ) | |||||||||
| Non-GAAP net sales | $ | 85,077 | $ | 86,675 | ||||||||
| GAAP gross profit | $ | 22,074 | $ | 24,186 | ||||||||
| Relocation expenses | 85 | 1,182 | ||||||||||
| Non-GAAP gross profit | $ | 22,159 | $ | 25,368 | ||||||||
| GAAP operating expenses | $ | 25,032 | $ | 25,712 | ||||||||
| Relocation expenses | 53 | (125 | ) | |||||||||
| Non-GAAP operating expenses | $ | 25,085 | $ | 25,587 | ||||||||
| GAAP operating loss | $ | (2,958 | ) | - | $ | (1,526 | ) | - | ||||
| Relocation expenses | 32 | 1,307 | ||||||||||
| Non-GAAP operating loss | $ | (2,926 | ) | - | $ | (219 | ) | - | ||||
| GAAP net loss | $ | (3,411 | ) | - | $ | (1,855 | ) | - | ||||
| Relocation expenses | 32 | 1,307 | ||||||||||
| Tax effect of non-GAAP adjustments | (11 | ) | (333 | ) | ||||||||
| Non-GAAP net loss | $ | (3,390 | ) | - | $ | (881 | ) | - | ||||
| GAAP net loss per share - diluted | $ | (0.08 | ) | $ | (0.04 | ) | ||||||
| Relocation expenses | — | 0.03 | ||||||||||
| Tax effect of non-GAAP adjustments | — | (0.01 | ) | |||||||||
| Non-GAAP net loss per share - diluted | $ | (0.08 | ) | $ | (0.02 | ) | (a) | |||||
| (a) Non-GAAP net loss per share does not foot due to rounding. | ||||||||||||
SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP INCOME FROM OPERATIONS TO NON-GAAP ADJUSTED EBITDAS
(In thousands)
(Unaudited)
| For the Three Months Ended | ||||||
| July 31, 2025 | July 31, 2024 | |||||
| GAAP net loss | $ | (3,411 | ) | $ | (1,855 | ) |
| Interest expense | 1,837 | 1,446 | ||||
| Income tax benefit | (690 | ) | (408 | ) | ||
| Depreciation and amortization | 8,385 | 8,025 | ||||
| Stock-based compensation expense | 1,892 | 1,854 | ||||
| Relocation expense | 32 | 1,175 | ||||
| Non-GAAP Adjusted EBITDAS | $ | 8,045 | $ | 10,237 | ||
| Non-GAAP Adjusted EBITDAS Margin | ||||||
SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES
RECONCILIATION OF NET CASH USED IN OPERATING ACTIVITIES TO FREE CASH FLOW
(In thousands)
(Unaudited)
| For the Three Months Ended | ||||||
| July 31, 2025 | July 31, 2024 | |||||
| Net cash used in operating activities | $ | (8,110 | ) | $ | (30,815 | ) |
| Payments to acquire property and equipment | (4,291 | ) | (4,702 | ) | ||
| Free cash flow | $ | (12,401 | ) | $ | (35,517 | ) |
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FAQ
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