Stran & Company Achieves 95.2% Increase in Sales to Approximately $32.6 Million for the Second Quarter of 2025
Rhea-AI Summary
Stran & Company (NASDAQ: SWAG), a leading promotional products provider, reported outstanding Q2 2025 financial results with sales surging 95.2% to $32.6 million. The company achieved significant milestones including organic sales growth of 30.4% and improved ranking to #23 in ASI's Counselor Top 40 distributors.
The company demonstrated strong financial performance with gross profit increasing 80.5% to $9.9 million and a return to profitability with net income of $0.6 million compared to a $1.0 million loss in Q2 2024. Stran maintains a robust balance sheet with $18.1 million in cash and investments. During Q2, the company executed a share repurchase program, acquiring 110,000 shares at $1.32 average price.
Positive
- Sales increased 95.2% year-over-year to $32.6 million in Q2 2025
- Strong organic sales growth of 30.4% in Q2 2025
- Achieved profitability with $0.6 million net income vs $(1.0) million loss in Q2 2024
- Robust balance sheet with $18.1 million in cash and investments
- Improved ranking to #23 in ASI's Counselor Top 40 distributors list
- Successfully executing share repurchase program, demonstrating confidence in business
Negative
- Gross profit margin decreased to 30.3% from 32.8% year-over-year due to Gander Group acquisition
- Operating expenses increased 44.1% to $9.5 million year-over-year
News Market Reaction
On the day this news was published, SWAG gained 10.64%, reflecting a significant positive market reaction. Argus tracked a peak move of +13.7% during that session. Argus tracked a trough of -9.9% from its starting point during tracking. Our momentum scanner triggered 19 alerts that day, indicating notable trading interest and price volatility. This price movement added approximately $3M to the company's valuation, bringing the market cap to $32M at that time. Trading volume was exceptionally heavy at 24.7x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Reports Positive Net Income for the Three and Six Months Ended June 30, 2025
Executes Share Repurchase Program and Maintains Strong Balance Sheet with Approximately
Conference Call Scheduled for Wednesday, August 13th at 10:00 A.M. ET
QUINCY, Mass., Aug. 12, 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 and six months ended June 30, 2025, and provided a business update. Management will host a conference call at 10:00 a.m. Eastern Time on Wednesday, August 13, 2025.
“We’re excited to report a remarkable
Mr. Shape continued, “Our industry achievements were recently recognized by the Advertising Specialty Institute (ASI), which advanced Stran to #23 in its 2025 Counselor Top 40 distributors list, up from #27 last year. This distinction positions us among the largest and most influential promotional products distributors in North America, reflecting our sustained growth, innovative strategies, and unwavering commitment to client success. We’re also proud to welcome new board members Mark Adams, Sarah Cummins, and Brian Posner, who bring a wealth of experience across media, private equity, sports, consumer brands, and public company finance. Their leadership significantly enhances our board’s strategic perspective and aligns with our vision for continued operational excellence and innovation.”
Mr. Shape also stated, “In addition, following our Combined 2024/2025 Annual Meeting of Stockholders, Stran is now fully compliant with all Nasdaq continued listing requirements, further solidifying our governance foundation as a public company. With a robust balance sheet featuring approximately
Mr. Shape concluded, “As we look ahead, our enhanced board, industry recognition, and disciplined financial strategy have set the stage for continued growth and success. Stran is excited to build on this momentum and deliver even greater value to our clients, team members, and shareholders.”
Financial Results for the Three Months ended June 30, 2025
Sales increased
Gross profit increased
Operating expenses increased
Net income for the three months ended June 30, 2025 was approximately
Financial Results for the Six Months ended June 30, 2025
Sales increased
Gross profit increased
Operating expenses increased
Net income for the six months ended June 30, 2025 was approximately
Webcast and Conference Call
Management will host a webcast and conference call at 10:00 A.M. Eastern Time on Wednesday, August 13, 2025, to discuss the Company’s financial results for the second quarter of 2025 ended June 30, 2025, as well as the Company’s corporate progress and other developments.
The conference call will be available via telephone by dialing toll free 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and using entry code: 317692. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2855/52808 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 August 13, 2026. A telephone replay of the call will be available approximately one hour following the call, through August 27, 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: 52808.
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.
Contacts:
Investor Relations Contact:
Crescendo Communications, LLC
Tel: (212) 671-1021
SWAG@crescendo-ir.com
Press Contact:
Howie Turkenkopf
press@stran.com
| CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) | ||||||||
| June 30, 2025 | December 31, 2024 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 13,070 | $ | 9,358 | ||||
| Investments | 4,997 | 8,856 | ||||||
| Accounts receivable, net | 22,063 | 18,092 | ||||||
| Accounts receivable - related parties, net | 402 | 573 | ||||||
| Inventory | 6,736 | 5,389 | ||||||
| Prepaid corporate taxes | — | 28 | ||||||
| Prepaid expenses | 2,391 | 2,308 | ||||||
| Deposits | 467 | 423 | ||||||
| Other current assets | 4 | 455 | ||||||
| Total current assets | 50,130 | 45,482 | ||||||
| Property and equipment, net | 1,618 | 1,701 | ||||||
| OTHER ASSETS: | ||||||||
| Intangible assets - customer lists, net | 3,934 | 4,170 | ||||||
| Intangible assets - trade name | 654 | 654 | ||||||
| Goodwill | 2,321 | 2,321 | ||||||
| Other assets | 222 | 23 | ||||||
| Right of use assets | 2,336 | 797 | ||||||
| Total other assets | 9,467 | 7,965 | ||||||
| Total assets | $ | 61,215 | $ | 55,148 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable and accrued expenses | $ | 9,513 | $ | 8,919 | ||||
| Accrued payroll and related | 2,044 | 1,513 | ||||||
| Unearned revenue | 4,817 | 4,423 | ||||||
| Rewards program liability | 9,000 | 6,000 | ||||||
| Sales tax payable | 315 | 353 | ||||||
| Corporate taxes payable | 9 | — | ||||||
| Current portion of contingent earn-out liabilities | 105 | 256 | ||||||
| Current portion of installment payment liabilities | 158 | 365 | ||||||
| Current portion of lease liabilities | 661 | 366 | ||||||
| Total current liabilities | 26,622 | 22,195 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Long-term contingent earn-out liabilities | 455 | 455 | ||||||
| Long-term installment payment liabilities | 425 | 425 | ||||||
| Long-term lease liabilities | 1,880 | 432 | ||||||
| Total long-term liabilities | 2,760 | 1,312 | ||||||
| Total liabilities | 29,382 | 23,507 | ||||||
| Commitments and contingencies | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 2 | 2 | ||||||
| Additional paid-in capital | 38,285 | 38,391 | ||||||
| Accumulated deficit | (6,492 | ) | (6,742 | ) | ||||
| Accumulated other comprehensive income (loss) | 38 | (10 | ) | |||||
| Total stockholders’ equity | 31,833 | 31,641 | ||||||
| Total liabilities and stockholders’ equity | $ | 61,215 | $ | 55,148 | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS THREE AND SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (in thousands, except share and per share amounts) (unaudited) | ||||||||||||||||
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||||||
| SALES | ||||||||||||||||
| Sales | $ | 32,577 | $ | 16,693 | $ | 61,271 | $ | 35,474 | ||||||||
| Sales – related parties | — | — | — | 46 | ||||||||||||
| Total sales | 32,577 | 16,693 | 61,271 | 35,520 | ||||||||||||
| COST OF SALES: | ||||||||||||||||
| Cost of sales | 22,708 | 11,226 | 42,920 | 24,405 | ||||||||||||
| Cost of sales - related parties | — | — | — | 35 | ||||||||||||
| Total cost of sales | 22,708 | 11,226 | 42,920 | 24,440 | ||||||||||||
| GROSS PROFIT | 9,869 | 5,467 | 18,351 | 11,080 | ||||||||||||
| OPERATING EXPENSES: | ||||||||||||||||
| General and administrative expenses | 9,474 | 6,575 | 18,491 | 12,857 | ||||||||||||
| Total operating expenses | 9,474 | 6,575 | 18,491 | 12,857 | ||||||||||||
| INCOME (LOSS) FROM OPERATIONS | 395 | (1,108 | ) | (140 | ) | (1,777 | ) | |||||||||
| OTHER INCOME: | ||||||||||||||||
| Other income | 285 | 1 | 280 | 16 | ||||||||||||
| Interest income | 77 | 82 | 119 | 175 | ||||||||||||
| Realized gain on investments | — | 3 | 67 | 73 | ||||||||||||
| Total other income | 362 | 86 | 466 | 264 | ||||||||||||
| INCOME (LOSS) BEFORE INCOME TAXES | 757 | (1,022 | ) | 326 | (1,513 | ) | ||||||||||
| Provision for income taxes | 114 | 3 | 76 | 3 | ||||||||||||
| NET INCOME (LOSS) | $ | 643 | $ | (1,025 | ) | $ | 250 | $ | (1,516 | ) | ||||||
| NET INCOME (LOSS) PER COMMON SHARE | ||||||||||||||||
| Basic | $ | 0.03 | $ | (0.06 | ) | $ | 0.01 | $ | (0.08 | ) | ||||||
| Diluted | $ | 0.03 | $ | (0.06 | ) | $ | 0.01 | $ | (0.08 | ) | ||||||
| WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING | ||||||||||||||||
| Basic | 18,592,339 | 18,589,086 | 18,600,373 | 18,581,957 | ||||||||||||
| Diluted | 18,596,826 | 18,589,086 | 18,603,432 | 18,581,957 | ||||||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS SIX MONTHS ENDED JUNE 30, 2025 AND 2024 (in thousands) (unaudited) | ||||||||
| 2025 | 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income (loss) | $ | 250 | $ | (1,516 | ) | |||
| Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 521 | 341 | ||||||
| Noncash operating lease expense | 537 | 274 | ||||||
| Change in allowance for credit losses | 360 | (288 | ) | |||||
| Noncash interest accretion | 23 | 72 | ||||||
| Stock-based compensation | 40 | 170 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | (4,331 | ) | 4,496 | |||||
| Accounts receivable – related parties, net | 172 | 25 | ||||||
| Inventory | (1,347 | ) | 808 | |||||
| Prepaid corporate taxes | 29 | 30 | ||||||
| Prepaid expenses | (82 | ) | 336 | |||||
| Deposits | (44 | ) | (193 | ) | ||||
| Other assets | 252 | — | ||||||
| Accounts payable and accrued expenses | 590 | (871 | ) | |||||
| Accrued payroll and related | 531 | (1,357 | ) | |||||
| Unearned revenue | 395 | (262 | ) | |||||
| Rewards program liability | 3,000 | 2,475 | ||||||
| Sales tax payable | (38 | ) | (117 | ) | ||||
| Corporate taxes payable | 9 | — | ||||||
| Operating lease liabilities | (333 | ) | (256 | ) | ||||
| Net cash provided by operating activities | 534 | 4,167 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Additions to property and equipment | (202 | ) | (364 | ) | ||||
| Proceeds from sale of investments | 4,400 | 4,608 | ||||||
| Purchase of investments | (493 | ) | (3,836 | ) | ||||
| Net cash provided by investing activities | 3,705 | 408 | ||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Payment of contingent earn-out liabilities | (151 | ) | — | |||||
| Payment of installment payment liabilities | (230 | ) | (760 | ) | ||||
| Payment for stock repurchase | (146 | ) | — | |||||
| Net cash used in financing activities | (527 | ) | (760 | ) | ||||
| NET INCREASE IN CASH | 3,712 | 3,815 | ||||||
| CASH AND CASH EQUIVALENTS - BEGINNING | 9,358 | 8,059 | ||||||
| CASH AND CASH EQUIVALENTS - ENDING | $ | 13,070 | $ | 11,874 | ||||
FAQ
What were Stran & Company's (SWAG) Q2 2025 financial results?
How much organic growth did Stran (SWAG) achieve in Q2 2025?
What is Stran's (SWAG) current cash position as of Q2 2025?
How many shares did Stran (SWAG) repurchase in Q2 2025?
What is Stran's (SWAG) current ranking in the ASI Counselor Top 40 distributors list?
