Smith & Wesson Brands, Inc. Reports Fourth Quarter and Full Fiscal 2026 Financial Results
Rhea-AI Summary
Smith & Wesson (NASDAQ:SWBI) reported strong Q4 and full-year fiscal 2026 results for the period ended April 30, 2026. Q4 net sales were $178.4 million, up 26.7% year over year, with gross margin of 29.8% and GAAP/non-GAAP EPS of $0.36.
Full-year net sales reached $523.8 million, up 10.4%, with gross margin of 26.9%. Non-GAAP Adjusted EBITDAS was $30.9 million in Q4 and $69.2 million for the year. Q4 cash from operations was $74.6 million; the company repaid $60 million on its revolving credit facility and paid $23.2 million in dividends. New products represented 37.5% of Q4 revenue, and handgun unit sales into the sporting goods channel rose 23.2% versus a 1.1% NICS increase. The board approved a $0.13 quarterly dividend, payable July 15, 2026, to stockholders of record on July 1, 2026.
Positive
- Q4 2026 net sales $178.4 million, up 26.7% year over year
- Q4 gross margin improved to 29.8% from 28.8% a year ago
- Q4 GAAP net income rose to $16.2 million from $8.6 million
- Full-year 2026 net sales grew 10.4% to $523.8 million
- Q4 non-GAAP Adjusted EBITDAS $30.9 million, 17.3% of net sales
- Full-year Adjusted EBITDAS $69.2 million versus $64.7 million prior year
- Q4 cash from operations reached $74.6 million
- Repaid $60 million on revolving credit facility in fiscal 2026
- Paid $23.2 million in dividends during fiscal 2026
- New products contributed 37.5% of Q4 2026 total revenue
- Handgun unit sales into sporting goods channel up 23.2% versus 1.1% NICS growth
- Board authorized $0.13 per share quarterly dividend payable July 15, 2026
Negative
- Full-year Adjusted EBITDAS margin declined to 13.2% from 13.7%
- Updated Adjusted EBITDAS methodology reduced FY 2026 metric by $2.4 million
News Market Reaction – SWBI
In the Jun 18 session, SWBI gained 17.12%, reflecting a significant positive market reaction. Argus tracked a peak move of +19.0% during that session. Our momentum scanner triggered 25 alerts that day, indicating elevated trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 05 | Earnings results | Positive | +18.7% | Q3 FY26 sales up 17.1% with margin expansion and dividend declaration. |
| Dec 04 | Earnings results | Positive | +23.0% | Q2 FY26 solid sales, improved cash flow and strong new product contribution. |
| Sep 04 | Earnings results | Negative | +6.5% | Q1 FY26 showed lower sales, wider loss, and margin compression. |
| Jun 18 | Earnings results | Negative | -19.8% | FY25 Q4 and full year with double-digit revenue and earnings declines. |
| Mar 06 | Earnings results | Negative | -10.9% | Q3 FY25 revenue and margin declines with lower earnings vs prior year. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings reactions have mostly aligned with the tone of results: 4 aligned moves vs 1 divergence, with strong gains on positive quarters and selloffs on weak ones.
Over the last five earnings reports, Smith & Wesson has moved between solid growth and periods of pressure. Positive quarters like Q2 and Q3 FY26 saw net sales growth and strong price reactions of +23.01% and +18.66%. Weaker updates in FY25, including soft Q3 and Q4 results, triggered declines of -10.93% and -19.81%. The current FY26 Q4 and full-year release extends the recent trend of improving sales and margins versus the challenging FY25 base.
Key Terms
non-gaap financial
adjusted ebitdas financial
free cash flow financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
- Q4 Net Sales of
$178.4 Million - Q4 Gross Margin of
29.8% - Q4 EPS of
$0.36 /Share - Q4 Cash from Operations of
$74.6 million
Maryville, Tennessee--(Newsfile Corp. - June 17, 2026) - Smith & Wesson Brands, Inc. (NASDAQ Global Select: SWBI), a U.S.-based leader in firearm manufacturing and design, today announced financial results for the fourth quarter and full fiscal year 2026, ended April 30, 2026.
Fourth Quarter Fiscal 2026 Financial Highlights
Net sales were
$178.4 million , an increase of$37.6 million , or26.7% , over the comparable quarter last year.Gross margin was
29.8% compared with28.8% in the comparable quarter last year.GAAP net income was
$16.2 million , or$0.36 per diluted share, compared with$8.6 million , or$0.19 per diluted share, for the comparable quarter last year.Non-GAAP net income was
$16.2 million , or$0.36 per diluted share, compared with$9.0 million , or$0.20 per diluted share, for the comparable quarter last year. GAAP to non-GAAP adjustments for income exclude costs related to the relocation. See the schedules that follow in this release for a detailed reconciliation.Non-GAAP Adjusted EBITDAS was
$30.9 million , or17.3% of net sales, compared with$23.5 million , or16.7% of net sales, for the comparable quarter last year.
Full Year Fiscal 2026 Financial Highlights
Net sales were
$523.8 million , an increase of$49.2 million , or10.4% , over the prior fiscal year.Gross margin was
26.9% compared with26.8% in the prior fiscal year.GAAP net income was
$18.5 million , or$0.41 per diluted share, compared with$13.4 million , or$0.30 per diluted share, for the prior fiscal year.Non-GAAP net income was
$18.4 million , or$0.41 per diluted share, compared with$14.6 million , or$0.33 per diluted share, for the prior fiscal year. GAAP to non-GAAP adjustments for income include costs related to the relocation, a gain on sale of certain real estate, and other costs. See the schedules that follow in this release for a detailed reconciliation.Non-GAAP Adjusted EBITDAS was
$69.2 million , or13.2% of net sales, compared with$64.7 million , or13.7% of net sales, for the prior fiscal year.We paid
$23.2 million in dividends compared with$23.1 million in the prior fiscal year.We repaid
$60.0 million on our revolving credit facility.
Mark Smith, President and Chief Executive Officer, commented, "Our excellent fourth quarter and full year fiscal 2026 results showcase our team's remarkable execution on our strategic priorities and the enduring power of our iconic brand. We delivered strong results across every dimension of our business – from revenue to profitability, and from cash flow to debt reduction. We outperformed our competitors in our core categories and achieved meaningful progress in segments that we hadn't historically competed in. The combined strength of our brand, our team, our disciplined strategic focus, and our strong balance sheet put us in an excellent position to continue creating long-term value for our stockholders."
Deana McPherson, Executive Vice President and Chief Financial Officer, commented, "Net sales for our fourth quarter of
Conference Call and Webcast
The company will host a conference call and webcast on June 17, 2026 to discuss its fourth quarter and full 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 www.smith-wesson.com 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 sales," "non-GAAP gross profit," "non-GAAP gross margin," "non-GAAP operating expenses," "non-GAAP operating income," "non-GAAP net income," "Non-GAAP net income per share – diluted," "Adjusted EBITDAS," "Adjusted EBITDAS Margin," and "free cash flow" are presented. We use these non-GAAP financial measures to facilitate a comparison of our operating performance on a consistent basis from period to period that, when viewed in combination with our results prepared in accordance with GAAP, provides a more complete understanding of factors and trends affecting our business than does GAAP measures alone. We believe these financial measures assist our board of directors, management, investors, and other users of the financial statements in comparing our results on a consistent basis from period to period because it removes certain non-cash items and other items that we do not consider to be indicative of our core and/or ongoing operations. We believe it is useful for us and the reader to review, as applicable, both (1) GAAP measures that include (i) interest, (ii) income tax expense, (iii) depreciation and amortization, (iv) stock-based compensation expense, (v) an accrued legal settlement, (vi) Smith & Wesson Academy grand opening expenses, (vii) relocation expense, including non-recurring third-party wind-down net sales and cost of sales related to the closure of an immaterial manufacturing location that was shut down as a result of the relocation, (xiii) a gain on sale of certain real estate, and (ix) 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 our financial measures on a GAAP basis.
Change in Non-GAAP Financial Measure
Prior to fiscal 2026, our calculation of Adjusted EBITDAS included an adjustment for interest expense. Beginning with the fiscal 2026 presentation for all periods presented herein, we also included an adjustment for interest income such that Adjusted EBITDAS is fully adjusted for the effect of Interest expense, net as presented on the Consolidated Statements of Income. We believe that adjusting for both interest expense and interest income assists users of the financial statements in understanding the results of our core operations and comparing those results on a consistent basis from period to period.
For the three months and year ended April 30, 2026, this change resulted in a decrease of
About Smith & Wesson Brands, Inc.
Smith & Wesson Brands, Inc. (NASDAQ Global Select: 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. Additionally, the company provides manufacturing services such as forging and machining to third parties and offers world-class firearm training programs to Law Enforcement/Military departments and civilians at the Smith & Wesson Academy™ in Maryville, TN. For more information call (844) 363-5386 or visit www.smith-wesson.com.
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) the combined strength of our brand, our team, our disciplined strategic focus, and our strong balance sheet put us in an excellent position to continue creating long-term value for our stockholders; and (ii) we expect firearm industry demand in fiscal 2027 to continue to be healthy and slightly higher than in fiscal 2026. We caution that these statements are qualified by important risks, uncertainties, and other factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include, among others, economic, social, political, legislative, and regulatory factors; the impact of tariffs; the potential for increased regulation of firearms and firearm-related products; actions of social activists that could have an adverse effect on our business; the impact of lawsuits; the demand for our products; the state of the U.S. economy in general and the firearm industry in particular; general economic conditions and consumer spending patterns; our competitive environment; the supply, availability, and costs of raw materials and components; our anticipated growth and growth opportunities; our strategies; our ability to maintain and enhance brand recognition and reputation; our ability to effectively manage and execute the relocation; our ability to introduce new products and the success of new products; the potential for cancellation of orders from our backlog; and other risks detailed from time to time in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended April 30, 2026.
Contact:
investorrelations@smith-wesson.com
(413) 747-3448
| SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (Unaudited) | |||||||
| As of: | |||||||
| April 30, 2026 | April 30, 2025 | ||||||
| (In thousands, except par value and share data) | |||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 28,190 | $ | 25,231 | |||
| Marketable securities | 5,162 | — | |||||
| Accounts receivable, net of allowances for credit losses of April 30, 2026 and April 30, 2025 | 40,014 | 55,868 | |||||
| Inventories | 156,250 | 189,840 | |||||
| Prepaid expenses and other current assets | 7,170 | 6,260 | |||||
| Income tax receivable | 4,617 | 66 | |||||
| Total current assets | 241,403 | 277,265 | |||||
| Property, plant, and equipment, net of accumulated depreciation and amortization of | 238,643 | 242,648 | |||||
| Intangibles, net | 1,956 | 2,409 | |||||
| Goodwill | 19,024 | 19,024 | |||||
| Deferred income taxes | 4,347 | 10,260 | |||||
| Other assets | 7,393 | 8,006 | |||||
| Total assets | $ | 512,766 | $ | 559,612 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 34,570 | $ | 26,887 | |||
| Accrued expenses and deferred revenue | 19,146 | 24,678 | |||||
| Accrued payroll and incentives | 15,196 | 9,060 | |||||
| Accrued profit sharing | 5,155 | 4,636 | |||||
| Accrued warranty | 1,300 | 1,379 | |||||
| Total current liabilities | 75,367 | 66,640 | |||||
| Notes and loans payable | 19,121 | 79,096 | |||||
| Finance lease payable, net of current portion | 32,163 | 33,703 | |||||
| Other non-current liabilities | 9,556 | 7,719 | |||||
| Total liabilities | 136,207 | 187,158 | |||||
| Commitments and contingencies | |||||||
| Stockholders' equity: | |||||||
| Preferred stock, issued or outstanding | — | — | |||||
| Common stock, 44,605,993 shares issued and outstanding on April 30, 2026 and 75,789,455 shares issued and 44,111,461 shares outstanding on April 30, 2025 | 45 | 76 | |||||
| Additional paid-in capital | 2,776 | 298,075 | |||||
| Retained earnings | 373,738 | 532,615 | |||||
| Treasury stock, at cost (no shares on April 30, 2026 and 31,677,994 shares on April 30, 2025) | — | (458,312 | ) | ||||
| Total stockholders' equity | 376,559 | 372,454 | |||||
| Total liabilities and stockholders' equity | $ | 512,766 | $ | 559,612 | |||
| SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES | |||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||
| (Unaudited) | |||||||||||||||
| For the Three Months Ended April 30, | For the Year Ended April 30, | ||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||
| (In thousands, except per share data) | |||||||||||||||
| Net sales | $ | 178,388 | $ | 140,762 | $ | 523,845 | $ | 474,661 | |||||||
| Cost of sales | 125,298 | 100,217 | 382,742 | 347,478 | |||||||||||
| Gross profit | 53,090 | 40,545 | 141,103 | 127,183 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 2,452 | 1,962 | 10,304 | 9,567 | |||||||||||
| Selling, marketing, and distribution | 11,339 | 11,474 | 41,598 | 41,314 | |||||||||||
| General and administrative | 17,736 | 13,973 | 59,999 | 54,933 | |||||||||||
| Gain on sale/disposition of assets, net | 222 | 6 | (9 | ) | (2,515 | ) | |||||||||
| Total operating expenses | 31,749 | 27,415 | 111,892 | 103,299 | |||||||||||
| Operating income | 21,341 | 13,130 | 29,211 | 23,884 | |||||||||||
| Other expense, net: | |||||||||||||||
| Other income/(expense), net | 146 | (6 | ) | 669 | (17 | ) | |||||||||
| Interest expense, net | (693 | ) | (748 | ) | (4,810 | ) | (4,622 | ) | |||||||
| Total other (expense)/income, net | (547 | ) | (754 | ) | (4,141 | ) | (4,639 | ) | |||||||
| Income before income taxes | 20,794 | 12,376 | 25,070 | 19,245 | |||||||||||
| Income tax expense | 4,572 | 3,742 | 6,589 | 5,820 | |||||||||||
| Net income | $ | 16,222 | $ | 8,634 | $ | 18,481 | $ | 13,425 | |||||||
| Net income per share: | |||||||||||||||
| Basic - net income | $ | 0.36 | $ | 0.20 | $ | 0.42 | $ | 0.30 | |||||||
| Diluted - net income | $ | 0.36 | $ | 0.19 | $ | 0.41 | $ | 0.30 | |||||||
| Weighted average number of common shares outstanding: | |||||||||||||||
| Basic | 44,533 | 44,040 | 44,420 | 44,484 | |||||||||||
| Diluted | 45,262 | 44,508 | 44,933 | 44,932 | |||||||||||
| SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES | |||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (Unaudited) | |||||||
| For the Year Ended April 30, | |||||||
| 2026 | 2025 | ||||||
| (In thousands) | |||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 18,481 | $ | 13,425 | |||
| Adjustments to reconcile net income to net cash provided by/(used in) operating activities: | |||||||
| Depreciation and amortization | 31,311 | 31,845 | |||||
| Gain on sale/disposition of assets | (9 | ) | (2,515 | ) | |||
| Deferred income taxes | 5,913 | (3,032 | ) | ||||
| Stock-based compensation expense | 8,350 | 7,609 | |||||
| Non-cash sublease income | (1,797 | ) | (1,724 | ) | |||
| Other, net | (528 | ) | (73 | ) | |||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | 15,854 | 3,203 | |||||
| Inventories | 33,590 | (29,340 | ) | ||||
| Prepaid expenses and other current assets | (910 | ) | (1,287 | ) | |||
| Income taxes | (4,551 | ) | 1,882 | ||||
| Accounts payable | 5,367 | (14,771 | ) | ||||
| Accrued payroll and incentives | 6,136 | (8,087 | ) | ||||
| Accrued profit sharing | 519 | (4,462 | ) | ||||
| Accrued expenses and deferred revenue | (3,008 | ) | (268 | ) | |||
| Accrued warranty | (79 | ) | (434 | ) | |||
| Other assets | (136 | ) | 938 | ||||
| Other non-current liabilities | (308 | ) | (132 | ) | |||
| Net cash provided by/(used in) operating activities | 114,195 | (7,223 | ) | ||||
| Cash flows from investing activities: | |||||||
| Purchases of marketable securities | (4,634 | ) | — | ||||
| Payments to acquire patents and software | (93 | ) | (187 | ) | |||
| Proceeds from sale of intangible assets | — | — | |||||
| Proceeds from sale of property and equipment | 235 | 2,619 | |||||
| Payments to acquire property and equipment | (23,748 | ) | (21,605 | ) | |||
| Net cash used in investing activities | (28,240 | ) | (19,173 | ) | |||
| Cash flows from financing activities: | |||||||
| Proceeds from loans and notes payable | 25,000 | 75,000 | |||||
| Payments on loans and notes payable | (85,000 | ) | (35,000 | ) | |||
| Cash paid for debt issuance costs | (219 | ) | (941 | ) | |||
| Payments on finance lease obligation | (195 | ) | (179 | ) | |||
| Payments to acquire treasury stock | — | (25,468 | ) | ||||
| Dividend distribution | (23,229 | ) | (23,096 | ) | |||
| Proceeds to acquire common stock from employee stock purchase plan | 1,577 | 1,598 | |||||
| Payment of employee withholding tax related to restricted stock units | (930 | ) | (1,126 | ) | |||
| Net cash used in financing activities | (82,996 | ) | (9,212 | ) | |||
| Net increase/(decrease) in cash and cash equivalents | 2,959 | (35,608 | ) | ||||
| Cash and cash equivalents, beginning of period | 25,231 | 60,839 | |||||
| Cash and cash equivalents, end of period | $ | 28,190 | $ | 25,231 | |||
| Supplemental disclosure of cash flow information | |||||||
| Cash paid for: | |||||||
| Interest, net of amounts capitalized | $ | 5,375 | $ | 5,193 | |||
| 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 | For the Twelve Months Ended | ||||||||||||||||||||||||||||||
| April 30, 2026 | April 30, 2025 | April 30, 2026 | April 30, 2025 | ||||||||||||||||||||||||||||
| $ | % of Sales | $ | % of Sales | $ | % of Sales | $ | % of Sales | ||||||||||||||||||||||||
| GAAP net sales | $ | 178,388 | $ | 140,762 | $ | 523,845 | $ | 474,661 | |||||||||||||||||||||||
| Relocation | — | — | — | (4,340 | ) | ||||||||||||||||||||||||||
| Non-GAAP net sales | $ | 178,388 | $ | 140,762 | $ | 523,845 | $ | 470,321 | |||||||||||||||||||||||
| GAAP gross profit | $ | 53,090 | $ | 40,545 | $ | 141,103 | $ | 127,183 | |||||||||||||||||||||||
| Relocation expenses | (5 | ) | 516 | (137 | ) | 3,346 | |||||||||||||||||||||||||
| Settlement | — | — | — | 70 | |||||||||||||||||||||||||||
| Non-GAAP gross profit | $ | 53,085 | $ | 41,061 | $ | 140,966 | $ | 130,599 | |||||||||||||||||||||||
| GAAP operating expenses | $ | 31,749 | $ | 27,415 | $ | 111,892 | $ | 103,299 | |||||||||||||||||||||||
| Relocation expenses | — | (26 | ) | 372 | (612 | ) | |||||||||||||||||||||||||
| S&W Academy grand opening | 72 | — | (380 | ) | — | ||||||||||||||||||||||||||
| Gain on sale of asset | — | — | — | 2,257 | |||||||||||||||||||||||||||
| Non-GAAP operating expenses | $ | 31,821 | $ | 27,389 | $ | 111,884 | $ | 104,944 | |||||||||||||||||||||||
| GAAP operating income | $ | 21,341 | $ | 13,130 | $ | 29,211 | $ | 23,884 | |||||||||||||||||||||||
| Settlement | — | — | — | 70 | |||||||||||||||||||||||||||
| Relocation expenses | (5 | ) | 542 | (509 | ) | 3,958 | |||||||||||||||||||||||||
| S&W Academy grand opening | (72 | ) | — | 380 | — | ||||||||||||||||||||||||||
| Gain on sale of asset | — | — | — | (2,257 | ) | ||||||||||||||||||||||||||
| Non-GAAP operating income | $ | 21,264 | $ | 13,672 | $ | 29,082 | $ | 25,655 | |||||||||||||||||||||||
| GAAP net income | $ | 16,222 | $ | 8,634 | $ | 18,481 | $ | 13,425 | |||||||||||||||||||||||
| Settlement | — | — | — | 70 | |||||||||||||||||||||||||||
| Relocation expenses | (5 | ) | 542 | (509 | ) | 3,958 | |||||||||||||||||||||||||
| S&W Academy grand opening | (72 | ) | — | 380 | — | ||||||||||||||||||||||||||
| Gain on sale of asset | — | — | — | (2,257 | ) | ||||||||||||||||||||||||||
| Tax effect of non-GAAP adjustments | 20 | (169 | ) | 34 | (551 | ) | |||||||||||||||||||||||||
| Non-GAAP net income | $ | 16,165 | $ | 9,007 | $ | 18,386 | $ | 14,645 | |||||||||||||||||||||||
| GAAP net income per share - diluted | $ | 0.36 | $ | 0.19 | $ | 0.41 | $ | 0.30 | |||||||||||||||||||||||
| Settlement | — | — | — | — | |||||||||||||||||||||||||||
| Relocation expenses | — | 0.01 | (0.01 | ) | 0.09 | ||||||||||||||||||||||||||
| S&W Academy grand opening | — | — | 0.01 | — | |||||||||||||||||||||||||||
| Gain on sale of asset | — | — | — | (0.05 | ) | ||||||||||||||||||||||||||
| Tax effect of non-GAAP adjustments | — | — | — | (0.01 | ) | ||||||||||||||||||||||||||
| Non-GAAP net income per share - diluted | $ | 0.36 | $ | 0.20 | $ | 0.41 | $ | 0.33 | |||||||||||||||||||||||
| SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES | |||||||||||||||
| RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDAS | |||||||||||||||
| (in thousands) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| For the Three Months Ended | For the Twelve Months Ended | ||||||||||||||
| April 30, 2026 | April 30, 2025 | April 30, 2026 | April 30, 2025 | ||||||||||||
| GAAP net income | $ | 16,222 | $ | 8,634 | $ | 18,481 | $ | 13,425 | |||||||
| Interest expense, net | 693 | 748 | 4,810 | 4,622 | |||||||||||
| Income tax expense | 4,572 | 3,742 | 6,589 | 5,820 | |||||||||||
| Depreciation and amortization | 7,540 | 7,934 | 31,067 | 31,688 | |||||||||||
| Stock-based compensation expense | 1,986 | 1,885 | 8,350 | 7,609 | |||||||||||
| S&W Academy grand opening expense | (72 | ) | — | 380 | — | ||||||||||
| Gain on sale of asset | — | — | — | (2,257 | ) | ||||||||||
| Settlement | — | — | — | 70 | |||||||||||
| Relocation expense | (5 | ) | 538 | (509 | ) | 3,681 | |||||||||
| Non-GAAP Adjusted EBITDAS | $ | 30,936 | $ | 23,481 | $ | 69,168 | $ | 64,658 | |||||||
| Non-GAAP Adjusted EBITDAS Margin | |||||||||||||||
| SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES | |||||||||||||||
| RECONCILIATION OF NET CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW (In thousands) (Unaudited) | |||||||||||||||
| For the Three Months Ended | For the Twelve Months Ended | ||||||||||||||
| April 30, 2026 | April 30, 2025 | April 30, 2026 | April 30, 2025 | ||||||||||||
| Net cash provided by/(used in) operating activities | $ | 74,581 | 40,828 | $ | 114,195 | $ | (7,223 | ) | |||||||
| Payments to acquire property and equipment | (4,834 | ) | (7,291 | ) | (23,748 | ) | (21,605 | ) | |||||||
| Free cash flow | $ | 69,747 | $ | 33,537 | $ | 90,447 | $ | (28,828 | ) | ||||||
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