Stran & Company Reports Financial Results for 2024 Fiscal Year
Rhea-AI Summary
Stran & Company (NASDAQ: SWAG) reported its fiscal year 2024 results with sales increasing 8.8% to $82.7 million. The company achieved a gross profit of $25.8 million with a 31.2% margin, though it recorded a net loss of $4.1 million.
Key highlights include the successful acquisition of Gander Group assets, contributing $9.9 million in sales, and expansion into hospitality and entertainment verticals. The company secured multiple new multi-year contracts across various industries and completed a re-audit of 2023/2022 financial statements.
The company maintains a strong financial position with $18.2 million in cash, cash equivalents, and investments as of December 31, 2024. Management expressed optimism about reaching $100 million in annual sales in 2025, despite facing increased operating expenses and lower spending from existing clients in the core Stran segment.
Positive
- Revenue growth of 8.8% to $82.7 million
- Successful Gander Group acquisition contributing $9.9 million in sales
- Secured multiple new multi-year, six-figure contracts
- Strong cash position of $18.2 million
Negative
- Net loss increased to $4.1 million from $0.4 million in 2023
- Operating expenses increased 17.6% to $30.7 million
- Core Stran segment sales decreased due to lower client spending
- Gross profit margin declined to 31.2% from 32.7%
News Market Reaction
On the day this news was published, SWAG gained 8.82%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
- 2023/2022 Financial Statements Re-audit Completed; Refocusing on Growth and Operational Initiatives -
- Sales Increased
- Conference Call Scheduled for Tuesday, April 15 at 11:00 A.M. ET -
QUINCY, Mass., April 14, 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 fiscal year ended December 31, 2024, and provided a business update highlighting strategic progress and forward-looking growth initiatives. Management will host a conference call at 11:00 a.m. Eastern Time on Tuesday, April 15, 2025.
2024 Financial Highlights
- Sales:
$82.7 million , an increase of8.8% year-over-year - Gross Profit:
$25.8 million , representing a gross margin of31.2% - Cash, Cash Equivalents, and Investments:
$18.2 million as of December 31, 2024
“2024 was a transitional year of operational discipline and long-term investment,” said Andy Shape, Chief Executive Officer of Stran. “While a financial re-audit of our financial statements for the 2023 and 2022 fiscal years required significant time and internal focus, we believe it was a critical step in aligning with a premier audit partner and reinforce trust with our investors. I’m incredibly proud of how our team navigated this complex process. With our financial reporting compliance now restored, we’re back to executing our growth strategy with renewed focus and energy.”
Stran reported record annual sales of
Beyond M&A, the Company secured multiple new multi-year, six-figure contracts across a range of industries, including residential housing development, molecular diagnostics, public transportation, and recreational watercraft manufacturing. These wins highlight the growing demand for Stran’s scalable, tech-enabled promotional programs.
Stran also continued to deepen existing enterprise relationships with notable contract expansions from a global automotive OEM, a multinational engineering firm, and a leading oil and gas provider—underscoring the Company’s track record of delivering results and driving long-term value.
“Looking ahead to 2025 and beyond, we are focused on accelerating organic growth, expanding into high-value verticals, and leveraging our tech-driven platform to deliver innovative marketing solutions at scale,” said Shape. “With the re-audit process behind us, a stronger operating foundation, larger and more diversified operational base, and our expectations of a healthy pipeline of opportunities, we remain optimistic about our growth trajectory and ability to surpass
Financial Results for the Fiscal Year ended December 31, 2024
Sales increased
Gross profit increased
Operating expenses increased
Net loss for the year ended December 31, 2024 was approximately
Conference Call
Management will host a conference call at 11:00 a.m. Eastern Time on Tuesday, April 15, 2025, to discuss the Company’s financial results for the fiscal year ended December 31, 2024, 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: 539224. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2855/52332 or on the Company’s website at ir.stran.com/news-events/ir-calendar.
A webcast replay will be available on the Company’s website at ir.stran.com/news-events/ir-calendar through April 15, 2026. A telephone replay of the call will be available approximately one hour following the call, through April 29, 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: 52332.
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) | |||||||
| December 31, 2024 | December 31, 2023 | ||||||
| ASSETS | |||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | $ | 9,358 | $ | 8,059 | |||
| Investments | 8,856 | 10,393 | |||||
| Accounts receivable, net | 18,092 | 16,223 | |||||
| Accounts receivable - related parties, net | 573 | 853 | |||||
| Inventory | 5,389 | 4,782 | |||||
| Prepaid corporate taxes | 28 | 62 | |||||
| Prepaid expenses | 2,308 | 953 | |||||
| Deposits | 423 | 1,717 | |||||
| Other current assets | 455 | — | |||||
| Total current assets | 45,482 | 43,042 | |||||
| Property and equipment, net | 1,701 | 1,521 | |||||
| OTHER ASSETS: | |||||||
| Intangible assets - customer lists, net | 4,170 | 3,114 | |||||
| Intangible assets - trade name | 654 | — | |||||
| Goodwill | 2,321 | — | |||||
| Other assets | 23 | 23 | |||||
| Right of use asset - office leases | 797 | 1,336 | |||||
| Total other assets | 7,965 | 4,473 | |||||
| Total assets | $ | 55,148 | $ | 49,036 | |||
| LIABILITIES AND STOCKHOLDER’S EQUITY | |||||||
| CURRENT LIABILITIES: | |||||||
| Accounts payable and accrued expenses | $ | 8,919 | $ | 4,745 | |||
| Accrued payroll and related | 1,513 | 2,568 | |||||
| Unearned revenue | 4,423 | 1,116 | |||||
| Rewards program liability | 6,000 | 875 | |||||
| Sales tax payable | 353 | 344 | |||||
| Current portion of contingent earn-out liabilities | 256 | 224 | |||||
| Current portion of installment payment liabilities | 365 | 786 | |||||
| Current portion of lease liability | 366 | 528 | |||||
| Total current liabilities | 22,195 | 11,186 | |||||
| LONG-TERM LIABILITIES: | |||||||
| Long-term contingent earn-out liabilities | 455 | 763 | |||||
| Long-term installment payment liabilities | 425 | 639 | |||||
| Long-term lease liability | 432 | 798 | |||||
| Total long-term liabilities | 1,312 | 2,200 | |||||
| Total liabilities | 23,507 | 13,386 | |||||
| Commitments and contingencies | |||||||
| STOCKHOLDER’S EQUITY: | |||||||
| Preferred stock, | — | — | |||||
| Common stock, | 2 | 2 | |||||
| Additional paid-in capital | 38,391 | 38,263 | |||||
| Accumulated deficit | (6,742 | ) | (2,602 | ) | |||
| Accumulated other comprehensive loss | (10 | ) | (13 | ) | |||
| Total stockholders’ equity | 31,641 | 35,650 | |||||
| Total liabilities and stockholders’ equity | $ | 55,148 | $ | 49,036 | |||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| YEARS ENDED DECEMBER 31, 2024 and 2023 | |||||||
| (in thousands, except share and per share amounts) | |||||||
| 2024 | 2023 | ||||||
| SALES | |||||||
| Sales | $ | 82,194 | $ | 75,147 | |||
| Sales – related parties | 460 | 853 | |||||
| Total sales | 82,654 | 76,000 | |||||
| COST OF SALES: | |||||||
| Cost of sales | 56,487 | 50,492 | |||||
| Cost of sales - related parties | 354 | 656 | |||||
| Total cost of sales | 56,841 | 51,148 | |||||
| GROSS PROFIT | 25,813 | 24,852 | |||||
| OPERATING EXPENSES: | |||||||
| General and administrative expenses | 30,707 | 25,310 | |||||
| Goodwill impairment | — | 810 | |||||
| Total operating expenses | 30,707 | 26,120 | |||||
| LOSS FROM OPERATIONS | (4,894 | ) | (1,268 | ) | |||
| OTHER INCOME: | |||||||
| Other income | 38 | 186 | |||||
| Interest income | 305 | 570 | |||||
| Change in fair value of contingent earn-out liability | 208 | 65 | |||||
| Realized gain on investments | 208 | 103 | |||||
| Total other income | 759 | 924 | |||||
| LOSS BEFORE INCOME TAXES | (4,135 | ) | (344 | ) | |||
| Provision for income taxes | 5 | 41 | |||||
| NET LOSS | $ | (4,140 | ) | $ | (385 | ) | |
| NET LOSS PER COMMON SHARE | |||||||
| Basic and diluted | $ | (0.22 | ) | $ | (0.02 | ) | |
| WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING | |||||||
| Basic and diluted | 18,587,607 | 18,519,892 | |||||
FAQ
What was Stran's (SWAG) revenue growth in fiscal year 2024?
How much did the Gander Group acquisition contribute to SWAG's 2024 revenue?
What was SWAG's gross profit margin in 2024 compared to 2023?
What is SWAG's sales target for 2025?
How much cash and investments did SWAG have at the end of 2024?
