Stran & Company Reports 40.6% Year-Over-Year Revenue Growth to $116.2 Million for the 2025 Fiscal Year
Conference Call to be Held Thursday, March 26, 2026 at 10:00 a.m. Eastern Time
QUINCY, Mass., March 25, 2026 (GLOBE NEWSWIRE) -- Stran & Company, Inc. ("Stran" or the "Company") (NASDAQ: SWAG) (NASDAQ: SWAGW), a leading outsourced marketing solutions provider that leverages its promotional products and loyalty incentive expertise, today announced its financial results for the fiscal year ended December 31, 2025, and provided a business update. Management will host a conference call at 10:00 a.m. Eastern Time on Thursday, March 26, 2026.
2025 Financial Highlights
- Sales: $116.2 million, an increase of 40.6% year-over-year
- EBITDA: $0.2 million, compared to $(3.6) million in 2024 and an improvement of $3.8 million
- Gross Profit: $34.2 million, representing a gross margin of 29.5%
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Cash, Cash Equivalents, and Investments: $11.6 million as of December 31, 2025
“2025 was a year of strong execution and meaningful financial progress for Stran,” commented Andy Shape, Chief Executive Officer of Stran. “We delivered revenue of $116.2 million, representing 40.6% year-over-year growth compared to $82.7 million in 2024. Importantly, this performance included approximately 12.9% organic growth from our core promotional products business, driven by increased spend from existing enterprise customers and new customer wins.”
“We also generated positive EBITDA for the 2025 fiscal year, which we believe reflects the scalability of our operating platform, the strength of our customer relationships, and the benefits of our expanding mix of program-based business. While we reported a modest net loss for the year, our results were impacted by higher legal, accounting and other public company-related expenses, including costs associated with the re-audit of historical financial statements. We believe these expenses masked the strength of the underlying operating performance of the business during the year.”
“As we entered 2026, we continued to see encouraging momentum across the business. Although we are not providing formal guidance at this time, we are pleased with our start to the year and currently expect first-quarter profitability to improve compared to prior periods. We believe this reflects continued demand from our customer base, the operating leverage in our platform, and the benefits of the strategic progress we made throughout 2025.”
“Our growth continues to be supported by a diversified and expanding customer base. Today, we serve more than 2,000 active customers, including over 30 Fortune 500 companies, across a wide range of industries. This breadth of relationships, combined with our focus on programmatic engagements, provides increasing revenue visibility and a strong foundation for sustainable growth.”
“A key component of our strategy is converting customers into long-term program relationships, where clients utilize multiple services across our platform, including promotional products, loyalty and incentive programs, e-commerce solutions, print services, warehousing and logistics. This approach drives deeper engagement, longer customer lifecycles, and more predictable revenue streams, while positioning Stran as a strategic partner rather than a transactional vendor.”
“During 2025, we also continued to invest in initiatives designed to support our next phase of growth. We enhanced our digital capabilities with the launch of our client-branded online gifting platform, which expands our e-commerce offering and creates an additional scalable solution for customers. Looking ahead, we remain focused on deepening enterprise customer relationships, expanding our programmatic revenue base, investing in technology and selectively pursuing acquisitions. Given the highly fragmented nature of the promotional products industry and the strength of our differentiated platform, we believe Stran is well positioned to continue scaling the business and delivering long-term value for shareholders.”
Financial Results for the Fiscal Year ended December 31, 2025
- Sales increased $33.5 million, or 40.6%, to $116.2 million for the year ended December 31, 2025 compared to the prior year driven by increased spending from new and existing customers along with the acquisition of the Gander Group assets in August 2024. Sales by our Stran segment increased 12.9%, or $9.4 million, to $82.1 million and sales of our SLS segment (which consists of the former Gander Group business) increased 242.6%, or $24.1 million, to $34.1 million.
- Gross profit increased $8.4 million, or 32.6%, to $34.2 million for the year ended December 31, 2025 compared to the prior year. Gross profit margin decreased to 29.5% for the year ended December 31, 2025 from 31.2% in the prior year, primarily due to the acquisition of the Gander Group business in August 2024, which operates at a lower gross margin than the Stran segment.
- Operating expenses increased $5.5 million, or 17.8%, to $36.2 million for the year ended December 31, 2025 compared to the prior year. As a percentage of sales, operating expenses decreased to 31.1% for the year ended December 31, 2025 from 37.2% in the prior year.
- Net loss was $0.7 million for the year ended December 31, 2025 compared to a net loss of $4.1 million for the prior year period.
- EBITDA was $0.2 million for the year ended December 31, 2025 compared to $(3.6) million in the prior year period.
Conference Call
Management will host a conference call at 10:00 A.M. Eastern Time on March 26, 2026, to discuss the Company’s financial results for the fiscal year ended December 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 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and using entry code: 441976. A webcast of the call may be accessed at https://www.webcaster5.com/Webcast/Page/2855/53757 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 March 26, 2027. A telephone replay of the call will be available approximately one hour following the call, through April 9, 2026, 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: 53757.
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, 2025 |
December 31, 2024 |
|||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 6,753 | $ | 9,358 | ||||
| Investments | 4,872 | 8,856 | ||||||
| Accounts receivable, net | 17,252 | 18,092 | ||||||
| Accounts receivable - related parties, net | - | 573 | ||||||
| Inventory | 7,621 | 5,389 | ||||||
| Prepaid corporate taxes | - | 28 | ||||||
| Prepaid expenses | 1,778 | 2,308 | ||||||
| Deposits | 363 | 423 | ||||||
| Other current assets | 2 | 455 | ||||||
| Total current assets | 38,641 | 45,482 | ||||||
| Property and equipment, net | 1,944 | 1,701 | ||||||
| OTHER ASSETS: | ||||||||
| Intangible assets - customer lists, net | 3,690 | 4,170 | ||||||
| Intangible assets - trade name | 654 | 654 | ||||||
| Goodwill | 2,321 | 2,321 | ||||||
| Other assets | 53 | 23 | ||||||
| Right of use assets | 2,045 | 797 | ||||||
| Total other assets | 8,763 | 7,965 | ||||||
| Total assets | $ | 49,348 | $ | 55,148 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable and accrued expenses | $ | 8,568 | $ | 8,919 | ||||
| Accrued payroll and related | 1,970 | 1,513 | ||||||
| Unearned revenue | 3,201 | 4,423 | ||||||
| Rewards program liability | 1,500 | 6,000 | ||||||
| Sales tax payable | 327 | 353 | ||||||
| Current portion of contingent earn-out liabilities | 105 | 256 | ||||||
| Current portion of installment payment liabilities | 230 | 365 | ||||||
| Current portion of lease liabilities | 602 | 366 | ||||||
| Total current liabilities | 16,503 | 22,195 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Long-term contingent earn-out liabilities | 455 | 455 | ||||||
| Long-term installment payment liabilities | 147 | 425 | ||||||
| Long-term lease liabilities | 1,695 | 432 | ||||||
| Loan - vehicle | 47 | — | ||||||
| Total long-term liabilities | 2,344 | 1,312 | ||||||
| Total liabilities | 18,847 | 23,507 | ||||||
| Commitments and contingencies | ||||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
| Preferred stock, $0.0001 par value; 50,000,000 shares authorized, 0 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively | — | — | ||||||
| Common stock, $0.0001 par value; 300,000,000 shares authorized, 18,508,157 and 18,598,574 shares issued and outstanding as of December 31, 2025 and December 31, 2024, respectively | 2 | 2 | ||||||
| Additional paid-in capital | 37,925 | 38,391 | ||||||
| Accumulated deficit | (7,489 | ) | (6,742 | ) | ||||
| Accumulated other comprehensive income (loss) | 63 | (10 | ) | |||||
| Total stockholders’ equity | 30,501 | 31,641 | ||||||
| Total liabilities and stockholders’ equity | $ | 49,348 | $ | 55,148 | ||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS YEARS ENDED DECEMBER 31, 2025 and 2024 (in thousands, except share and per share amounts) | ||||||||
| 2025 | 2024 | |||||||
| SALES | ||||||||
| Sales | $ | 116,191 | $ | 82,194 | ||||
| Sales – related parties | - | 460 | ||||||
| Total sales | 116,191 | 82,654 | ||||||
| COST OF SALES: | ||||||||
| Cost of sales | 81,962 | 56,487 | ||||||
| Cost of sales - related parties | - | 354 | ||||||
| Total cost of sales | 81,962 | 56,841 | ||||||
| GROSS PROFIT | 34,229 | 25,813 | ||||||
| OPERATING EXPENSES: | ||||||||
| General and administrative expenses | 36,186 | 30,707 | ||||||
| Total operating expenses | 36,186 | 30,707 | ||||||
| LOSS FROM OPERATIONS | (1,957 | ) | (4,894 | ) | ||||
| OTHER INCOME: | ||||||||
| Other income | 937 | 38 | ||||||
| Interest income | 296 | 305 | ||||||
| Change in fair value of contingent earn-out liability | - | 208 | ||||||
| Realized gain on investments | 97 | 208 | ||||||
| Total other income | 1,330 | 759 | ||||||
| LOSS BEFORE INCOME TAXES | (627 | ) | (4,135 | ) | ||||
| Provision for income taxes | 120 | 5 | ||||||
| NET LOSS | $ | (747 | ) | $ | (4,140 | ) | ||
| NET LOSS PER COMMON SHARE | ||||||||
| Basic and diluted | $ | (0.04 | ) | $ | (0.22 | ) | ||
| WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING | ||||||||
| Basic and diluted | 18,458,827 | 18,587,607 | ||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2025 AND 2024 (in thousands) | ||||||||
| 2025 | 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (747 | ) | $ | (4,140 | ) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||
| Depreciation and amortization | 1,107 | 824 | ||||||
| Noncash operating lease expense | 829 | 539 | ||||||
| Provision for credit losses | 373 | 211 | ||||||
| Change in allowance for credit losses – related parties | 401 | 327 | ||||||
| Change in fair value of contingent earn-out liability | - | (208 | ) | |||||
| Noncash interest accretion | 49 | 125 | ||||||
| Stock-based compensation | 88 | 128 | ||||||
| Unrealized gain on investments | - | 3 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | 468 | (263 | ) | |||||
| Accounts receivable – related parties, net | 172 | (148 | ) | |||||
| Inventory | (2,232 | ) | 333 | |||||
| Prepaid corporate taxes | 28 | 33 | ||||||
| Prepaid expenses | 530 | (425 | ) | |||||
| Deposits | 60 | 1,367 | ||||||
| Other assets | 423 | (455 | ) | |||||
| Accounts payable and accrued expenses | (354 | ) | 60 | |||||
| Accrued payroll and related | 457 | (1,291 | ) | |||||
| Unearned revenue | (1,221 | ) | 1,159 | |||||
| Rewards program liability | (4,500 | ) | 5,125 | |||||
| Sales tax payable | (26 | ) | (17 | ) | ||||
| Operating lease liabilities | (578 | ) | (527 | ) | ||||
| Net cash (used in) provided by operating activities | (4,673 | ) | 2,760 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Business acquisitions, net of cash acquired | — | (1,469 | ) | |||||
| Additions to property and equipment | (823 | ) | (601 | ) | ||||
| Proceeds from sale of investments | 9,249 | 8,659 | ||||||
| Purchase of investments | (5,191 | ) | (7,122 | ) | ||||
| Net cash provided by (used in) investing activities | 3,235 | (533 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Payment of contingent earn-out liabilities | (151 | ) | (68 | ) | ||||
| Payment of installment payment liabilities | (462 | ) | (760 | ) | ||||
| Payment of notes payable | — | (100 | ) | |||||
| Payment for stock repurchase | (554 | ) | — | |||||
| Net cash used in financing activities | (1,167 | ) | (928 | ) | ||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | (2,605 | ) | 1,299 | |||||
| CASH AND CASH EQUIVALENTS - BEGINNING | 9,358 | 8,059 | ||||||
| CASH AND CASH EQUIVALENTS - ENDING | $ | 6,753 | $ | 9,358 | ||||
Non-GAAP Financial Measures
EBITDA is a non-GAAP financial measure that the Company believes helps investors to compare its operating performance to that of other companies. “EBITDA” is defined as net income (loss) excluding interest income, income tax expense and depreciation and amortization expense. The Company believes EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare the Company’s core operating results from period to period by removing (i) the impact of the Company’s capital structure (interest expense from outstanding debt), (ii) tax consequences and (iii) asset base (depreciation and amortization). EBITDA is not a measure of financial performance under GAAP. EBITDA should not be considered in isolation or as an alternative to net income, cash flows from operating activities or any other measure determined in accordance with GAAP. The items excluded to calculate EBITDA are significant components in understanding and assessing the Company’s results of operations. The Company’s EBITDA may not be comparable to a similarly titled measure of another company because other entities may not calculate EBITDA in the same manner.
The following table presents the reconciliation of EBITDA to its most comparable GAAP measure, net loss, as reported (unaudited):
|
RECONCILIATION OF NET LOSS TO EBITDA YEARS ENDED DECEMBER 31, 2025 AND 2024 (in thousands) (unaudited) | ||||||||
| 2025 | 2024 | |||||||
| Net loss (GAAP) | $ | (747 | ) | $ | (4,140 | ) | ||
| Interest income | (296 | ) | (305 | ) | ||||
| Provision for income taxes | 120 | 5 | ||||||
| Depreciation and amortization | 1,107 | 824 | ||||||
| EBITDA | $ | 184 | $ | (3,616 | ) | |||
Released March 25, 2026