Stran & Company (SWAG) investor relations material

Executive summary

• Revenue grew 8.9% year-over-year to $31.2 million, driven by both existing and new clients, with both business segments contributing to profitability.

• Net income reached $744,000, reversing a net loss of $393,000 in the prior year period, due to higher gross profit and lower operating expenses.

• EBITDA improved to $1 million from a negative $201,000 a year ago.

• Gross margin expanded to 30.9% from 29.6% year-over-year.

• Operating expenses as a percentage of sales decreased to 28.8% from 31.4% year-over-year.

Financial highlights

• Gross profit increased 13.7% to $9.6 million, with gross margin improving to 30.9% from 29.6%.

• Operating expenses remained flat at $9 million, improving as a percentage of sales to 28.8% from 31.4%.

• Operating income was $645,000, compared to a loss of $535,000 in the prior year.

• Cash, cash equivalents, and investments totaled $12.8 million as of March 31, 2026.

• Cash flow from operations was $1.2 million, compared to $(5.9) million in Q1 2025.

Outlook and guidance

• Management expects 2026 to be a year of sustained, profitable growth, driven by deeper enterprise client engagement and expanded service adoption.

• Focus remains on sustainable, profitable revenue growth, margin expansion, and deepening client relationships.

• Management expects current cash levels to be sufficient for operational and payment needs for at least the next 12 months.

• Ongoing tariff and supply chain uncertainties may impact future gross margins and sales.

• Intends to resume share repurchases as a sign of confidence in the business.