Stran & Company (NASDAQ: SWAG) reported strong Q1 2025 financial results with sales increasing 52.4% to $28.7 million compared to Q1 2024. The company achieved organic revenue growth of 11.2% and saw gross profit surge 51.1% to $8.5 million. The growth was driven by higher spending from existing clients, new customer acquisition, and the successful integration of Gander Group assets. The company's Stran segment contributed $20.9 million in sales with a 32.4% gross margin, while the SLS segment (former Gander Group) added $7.8 million with a 21.8% gross margin. Despite increased operating expenses of $9.0 million, the company reduced its net loss to $0.4 million from $0.5 million year-over-year. Stran maintains a strong balance sheet with $12.2 million in cash, cash equivalents, and investments. The company also successfully implemented its NetSuite ERP system, marking a significant milestone in its digital transformation.
Stran & Company (NASDAQ: SWAG) ha riportato risultati finanziari solidi nel primo trimestre 2025 con le vendite in aumento del 52,4% a 28,7 milioni di dollari rispetto al primo trimestre 2024. L'azienda ha registrato una crescita organica dei ricavi dell'11,2% e un incremento del margine lordo del 51,1% a 8,5 milioni di dollari. La crescita è stata trainata da maggiori spese dei clienti esistenti, acquisizione di nuovi clienti e dall'integrazione riuscita degli asset del Gander Group. Il segmento Stran ha contribuito con vendite per 20,9 milioni di dollari e un margine lordo del 32,4%, mentre il segmento SLS (ex Gander Group) ha aggiunto 7,8 milioni con un margine lordo del 21,8%. Nonostante un aumento delle spese operative a 9,0 milioni, l'azienda ha ridotto la perdita netta a 0,4 milioni da 0,5 milioni anno su anno. Stran mantiene un bilancio solido con 12,2 milioni di dollari in liquidità, equivalenti e investimenti. Inoltre, ha implementato con successo il sistema ERP NetSuite, segnando una tappa importante nella sua trasformazione digitale.
Stran & Company (NASDAQ: SWAG) reportó sólidos resultados financieros en el primer trimestre de 2025 con ventas que aumentaron un 52,4% hasta 28,7 millones de dólares en comparación con el primer trimestre de 2024. La empresa logró un crecimiento orgánico de ingresos del 11,2% y un incremento del beneficio bruto del 51,1% hasta 8,5 millones de dólares. El crecimiento se debió a un mayor gasto de clientes existentes, adquisición de nuevos clientes y la exitosa integración de los activos de Gander Group. El segmento Stran aportó 20,9 millones en ventas con un margen bruto del 32,4%, mientras que el segmento SLS (antiguo Gander Group) añadió 7,8 millones con un margen bruto del 21,8%. A pesar del aumento en gastos operativos a 9,0 millones, la compañía redujo su pérdida neta a 0,4 millones desde 0,5 millones año tras año. Stran mantiene un balance sólido con 12,2 millones en efectivo, equivalentes y inversiones. Además, implementó con éxito su sistema ERP NetSuite, marcando un hito significativo en su transformación digital.
Stran & Company (NASDAQ: SWAG)는 2025년 1분기에 매출이 전년 동기 대비 52.4% 증가한 2,870만 달러라는 견고한 재무 성과를 보고했습니다. 회사는 유기적 매출 성장률 11.2%를 달성했으며, 총이익은 51.1% 증가하여 850만 달러에 이르렀습니다. 이러한 성장은 기존 고객의 지출 증가, 신규 고객 확보, 그리고 Gander Group 자산의 성공적인 통합에 힘입은 것입니다. Stran 부문은 32.4%의 총이익률로 2,090만 달러의 매출을 기록했으며, SLS 부문(구 Gander Group)은 21.8%의 총이익률로 780만 달러를 추가했습니다. 운영비용이 900만 달러로 증가했음에도 불구하고, 회사는 순손실을 전년 동기 50만 달러에서 40만 달러로 감소시켰습니다. Stran은 1,220만 달러의 현금, 현금성 자산 및 투자를 보유하며 탄탄한 재무구조를 유지하고 있습니다. 또한, NetSuite ERP 시스템을 성공적으로 도입하여 디지털 전환의 중요한 이정표를 세웠습니다.
Stran & Company (NASDAQ : SWAG) a annoncé de solides résultats financiers pour le premier trimestre 2025 avec des ventes en hausse de 52,4 % à 28,7 millions de dollars par rapport au premier trimestre 2024. L'entreprise a réalisé une croissance organique du chiffre d'affaires de 11,2 % et a vu son marge brute augmenter de 51,1 % pour atteindre 8,5 millions de dollars. Cette croissance a été stimulée par une augmentation des dépenses des clients existants, l'acquisition de nouveaux clients et l'intégration réussie des actifs du groupe Gander. Le segment Stran a contribué pour 20,9 millions de dollars de ventes avec une marge brute de 32,4 %, tandis que le segment SLS (anciennement Gander Group) a ajouté 7,8 millions avec une marge brute de 21,8 %. Malgré une hausse des charges d'exploitation à 9,0 millions, la société a réduit sa perte nette à 0,4 million contre 0,5 million sur un an. Stran maintient un bilan solide avec 12,2 millions de dollars en liquidités, équivalents de trésorerie et investissements. L'entreprise a également mis en œuvre avec succès son système ERP NetSuite, marquant une étape importante dans sa transformation numérique.
Stran & Company (NASDAQ: SWAG) meldete starke Finanzergebnisse für das erste Quartal 2025 mit einem Umsatzanstieg von 52,4 % auf 28,7 Millionen US-Dollar im Vergleich zum ersten Quartal 2024. Das Unternehmen erzielte ein organisches Umsatzwachstum von 11,2 % und verzeichnete einen Bruttogewinnanstieg von 51,1 % auf 8,5 Millionen US-Dollar. Das Wachstum wurde durch höhere Ausgaben bestehender Kunden, Neukundengewinnung und die erfolgreiche Integration der Gander Group Vermögenswerte angetrieben. Der Stran-Segment trug mit 20,9 Millionen US-Dollar Umsatz bei und erzielte eine Bruttomarge von 32,4 %, während das SLS-Segment (ehemals Gander Group) 7,8 Millionen US-Dollar mit einer Bruttomarge von 21,8 % hinzufügte. Trotz gestiegener Betriebskosten von 9,0 Millionen US-Dollar konnte das Unternehmen den Nettoverlust von 0,5 Millionen auf 0,4 Millionen US-Dollar im Jahresvergleich reduzieren. Stran verfügt über eine starke Bilanz mit 12,2 Millionen US-Dollar in Barmitteln, Zahlungsmitteln und Investitionen. Zudem wurde das NetSuite-ERP-System erfolgreich implementiert, was einen bedeutenden Meilenstein in der digitalen Transformation darstellt.
Positive
Sales increased 52.4% YoY to $28.7 million in Q1 2025
Strong organic revenue growth of 11.2% despite challenging market conditions
Gross profit increased 51.1% to $8.5 million
Stran segment's gross profit margin improved to 32.4% from 29.8%
Operating expenses as percentage of sales decreased to 31.4% from 33.4%
Reduced net loss to $0.4 million from $0.5 million YoY
Strong balance sheet with $12.2 million in cash and investments
Negative
SLS segment (Gander Group) operates at lower gross margins of 21.8%
Overall gross profit margin slightly decreased to 29.6% from 29.8%
Operating expenses increased 43.6% to $9.0 million
Company still operating at a net loss
Insights
Stran delivered exceptional Q1 growth with 52.4% higher sales, driven by both acquisition and 11.2% organic growth despite industry challenges.
Stran's Q1 2025 results demonstrate impressive momentum with sales reaching $28.7 million, a substantial 52.4% increase year-over-year. This growth comes from two distinct channels: organic growth of 11.2% in their core business and significant contribution from their Gander Group acquisition.
The company's gross profit surged 51.1% to $8.5 million, maintaining a healthy 29.6% margin despite integrating the lower-margin Gander Group business (now Stran Loyalty Solutions). Importantly, the core Stran segment improved its gross margin to 32.4%, up from 29.8% in Q1 2024, demonstrating pricing power and operational efficiency.
Operating expenses increased by 43.6% to $9.0 million, but as a percentage of sales decreased to 31.4% from 33.4%, showing improved operational leverage despite one-time costs from the NetSuite ERP implementation and acquisition integration.
The $0.4 million net loss, while still negative, represents a slight improvement over the $0.5 million loss in Q1 2024. This modest improvement amid significant investments in infrastructure and integration suggests disciplined expense management.
With $12.2 million in cash and investments, Stran maintains a strong balance sheet to fund growth initiatives. The successful implementation of NetSuite ERP system in January marks a crucial milestone in their digital transformation, enhancing operational efficiency and scalability.
Management's focus on improving the SLS segment's margins (currently at 21.8% vs. 32.4% for the Stran segment) presents a significant opportunity. Even modest margin expansion in this segment could substantially improve overall profitability given SLS now represents approximately 27% of total revenue.
Conference Call Scheduled for Friday, May 16 at 10:00 A.M. ET
Quincy, MA, May 15, 2025 (GLOBE NEWSWIRE) -- Stran & Company, Inc. (“Stran” or the “Company”) (NASDAQ: SWAG) (NASDAQ: SWAGW), a leading provider of outsourced marketing solutions specializing in promotional products and loyalty incentives, today announced its financial results for the three months ended March 31, 2025, and provided a business update. Management will host a conference call at 10:00 a.m. Eastern Time on Friday, May 16, 2025.
“Stran entered 2025 with exceptional momentum, disciplined execution, and a steadfast commitment to our strategic vision,” said Andy Shape, Chief Executive Officer of Stran. “Our first-quarter performance was exceptional, with revenue soaring 52.4% year-over-year to approximately $28.7 million and gross profit surging 51.1% compared to the prior year. These results are particularly impressive given the lower initial margins from our recent acquisition of the Gander Group assets. Encouragingly, we’ve already driven a modest improvement in SLS’s gross profit margins and are focused on aligning them with Stran’s historically strong margin profile. Additionally, our organic revenue growth of 11.2% underscores our resilience and competitive strength, especially in a challenging market environment that has tested many of our peers.”
“With the reaudit process behind us and timely reporting fully restored, we have shifted our focus toward accelerating organic growth and driving sustained margin improvement. One of the most significant milestones achieved this quarter was the successful implementation of our NetSuite ERP system in January. This enterprise-wide rollout marks a major step forward in our digital transformation, already delivering meaningful gains in automation, real-time visibility, and centralized process control. It has enhanced our ability to scale efficiently, serve clients with greater speed and accuracy, and manage operations with increased precision.”
“Furthermore, we are executing a focused plan to improve profitability through disciplined expense management, streamlined workflows, and scalable infrastructure. The integration of the Gander Group assets, which has brought meaningful scale, greater diversification, and valuable cross-sector opportunities to our business, remains on track, and we are already realizing synergies across sourcing, logistics, and client engagement. These initiatives reflect our commitment to strengthening our operational foundation and delivering long-term value through consistent, high-performance execution.”
“As we continue through 2025, we remain focused on executing our strategy with precision—delivering high-quality branded solutions, enhancing operational efficiency, and expanding margins. With a strong balance sheet that includes approximately $12.2 million in cash, cash equivalents, and investments, we are well-positioned to support our growth initiatives while maintaining financial discipline. This foundation enables us to rapidly gain market share while executing on our commitment to driving long-term value for our shareholders.”
Financial Results for the Three Months ended March 31, 2025
Sales increased 52.4% to approximately $28.7 million for the three months ended March 31, 2025, from approximately $18.8 million for the three months ended March 31, 2024. Sales by the Stran segment increased to approximately $20.9 million for the three months ended March 31, 2025 from approximately $18.8 million for the three months ended March 31, 2024. Sales by the Stran Loyalty Solutions, LLC (“SLS”) segment (which consists of the former Gander Group business) increased to approximately $7.8 million for the three months ended March 31, 2025 from $0 for the three months ended March 31, 2024. For the Stran segment, the increase in sales was primarily due to higher spending from existing clients as well as business from new customers. For the SLS segment, the increase in sales was due to the acquisition of the Gander Group assets in August 2024.
Gross profit increased 51.1% to approximately $8.5 million, or 29.6% of sales, for the three months ended March 31, 2025, from approximately $5.6 million, or 29.8% of sales, for the three months ended March 31, 2024. Gross profit of the Stran segment increased to approximately $6.8 million for the three months ended March 31, 2025 from approximately $5.6 million for the three months ended March 31, 2024. Gross profit of the SLS segment increased to approximately $1.7 million for the three months ended March 31, 2025 from $0 for the three months ended March 31, 2024. The increase in the dollar amount of total gross profit was primarily due to the acquisition of the Gander Group assets in August 2024. For the Stran segment, the increase in the dollar amount of gross profit was due to an increase in sales of approximately $2.1 million for the reasons described above, which was partially offset by an increase of cost of sales of approximately $0.9 million. For the SLS segment, the increase in the dollar amount of gross profit was due to the acquisition of the Gander Group assets in August 2024. The decrease in total gross profit margin to 29.6% for the three months ended March 31, 2025 from 29.8% for the three months ended March 31, 2024 was primarily due to the acquisition of the Gander Group assets in August 2024, which operates at a lower gross margin than the Stran segment. The gross profit margin for the Stran segment increased to 32.4% for the three months ended March 31, 2025 from 29.8% for the three months ended March 31, 2024. The gross profit margin for the SLS segment was 21.8% for the three months ended March 31, 2025.
Operating expenses consist of general and administrative expenses. Our total operating expenses increased 43.6% to approximately $9.0 million for the three months ended March 31, 2025, from approximately $6.3 million for the three months ended March 31, 2024. Operating expenses of our Stran segment increased to approximately $6.9 million for the three months ended March 31, 2025 from approximately $6.3 million for the three months ended March 31, 2024. Operating expenses of our SLS segment increased to approximately $2.2 million for the three months ended March 31, 2025 from $0 for the three months ended March 31, 2024. As a percentage of sales, operating expenses decreased to 31.4% for the three months ended March 31, 2025, from 33.4% for the three months ended March 31, 2024. As a percentage of sales, operating expenses of our Stran segment decreased to 32.8% for the three months ended March 31, 2025 from 33.4% for the three months ended March 31, 2024. As a percentage of sales, operating expenses of our SLS segment were 27.7% for the three months ended March 31, 2025. For the Stran segment, the increase in the dollar amount of operating expenses was primarily due to expenses related to Stran's NetSuite enterprise resource planning system implementation, acquisition and integration of the Gander Group assets, and legal and accounting expenses related to the re-audit of historical financial statements. For the SLS segment, the increase in the dollar amount of operating expenses was due to the acquisition of the Gander Group assets in 2024.
Net loss for the three months ended March 31, 2025 was approximately $0.4 million, compared to approximately $0.5 million for the three months ended March 31, 2024. This change was primarily due to an increase in gross profit, partially offset by an increase in operating expenses.
Conference Call
Management will host a conference call at 10:00 A.M. Eastern Time on Friday, May 16, 2025, to discuss the Company’s financial results for the first quarter of 2025 ended March 31, 2025, as well as the Company’s corporate progress and other developments.
The conference call will be available via telephone by dialing toll free 877-545-0320 for U.S. callers or +1 973-528-0002 for international callers and using entry code: 770173. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2855/52480 or on the company’s Investors section of the website: ir.stran.com/news-events/ir-calendar.
A webcast replay will be available on the Investor Relations section of the Company’s website (ir.stran.com/news-events/ir-calendar) through May 16, 2026. A telephone replay of the call will be available approximately one hour following the call, through May 30, 2025, and can be accessed by dialing 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering conference ID: 52480.
About Stran
For over 30 years, Stran has grown to become a leader in the promotional products industry, specializing in complex marketing programs to help recognize the value of promotional products, branded merchandise, and loyalty incentive programs as a tool to drive awareness, build brands and impact sales. Stran is the chosen promotional programs manager of many Fortune 500 companies, across a variety of industries, to execute their promotional marketing, loyalty and incentive, sponsorship activation, recruitment, retention, and wellness campaigns. Stran provides world-class customer service and utilizes cutting-edge technology, including efficient ordering and logistics technology to provide order processing, warehousing and fulfillment functions. The Company’s mission is to develop long-term relationships with its clients, enabling them to connect with both their customers and employees in order to build lasting brand loyalty. Additional information about the Company is available at: www.stran.com.
Forward Looking Statements
This press release contains “forward-looking statements” that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” "will” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements include, but are not limited to, the Company’s expectations regarding synergies from its acquired businesses, its financial position and operating performance, its expectations regarding its business initiatives, the Company’s expectations about its operating performance, trends in its business, the effectiveness of its growth strategies, its market opportunities, and demand for its products and services in general. Forward-looking statements are based on the Company’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the Company’s periodic reports which are filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law.
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