Quarterly report [Sections 13 or 15(d)]

Segments

v3.25.2
Segments
 6 Months Ended
Jun. 30, 2025
Segments [Abstract]  
SEGMENTS
O. SEGMENTS:

 

There is no expense or asset information that is supplemental to information disclosed within the unaudited condensed consolidated financial statements that is regularly provided to the CODM to monitor and evaluate segment performance.

 

The Company’s segments are Stran & Company, Inc. (“Stran”) and Stran Loyalty Solutions, LLC (“SLS”). Our reportable segments are described below.

 

The Stran segment’s business is focused on being an outsourced marketing solutions and promotional products provider for a variety of customers and industries, working closely with customers to develop sophisticated marketing programs that leverage Stran’s promotional products and loyalty incentive expertise. Stran purchases products and branding through various third-party manufacturers and decorators and resells the finished goods to customers. The segment earns the majority of its revenue from the sale of unique, quality promotional products for a wide variety of industries primarily to support marketing efforts.

The SLS segment’s business is focused on the casino, gaming, and entertainment industries as an extension of the Company’s newly formed Casino Continuity and Loyalty group. The group specializes in creating high-quality, branded merchandise for casinos, sourced through various third-party manufacturers, focusing on promotional products that enhance customer loyalty and engagement. It partners with nationally recognized brands to create high-quality, custom products that resonate with casino patrons, helping casinos drive redemption rates and return on investment through tailored merchandise and marketing solutions to build recurring revenues for SLS customers and the segment itself.

 

The accounting policies of our reportable segments are the same as those described in the “Organization and Summary of Significant Accounting Policies” in the notes to the unaudited condensed consolidated financial statements for the Company.

 

For each of the two segments, the CODM uses segment gross margin and segment operating profits or losses in the annual budgeting and forecasting process. The CODM considers budget-to-actual variances on a monthly basis for revenue as well as profit measures when making decisions about allocating capital and personnel to the segments. The CODM uses segment gross margin and segment operating income in determining the compensation of certain employees, primarily for its recently acquired Gander business, which is consolidated as part of the SLS subsidiary and also comprises the segment SLS.

 

As of June 30, 2025 Stran and SLS had total assets of $48,905 and $12,377, respectively. As of December 31, 2024, Stran and SLS had total assets of $45,206 and $9,944, respectively. The entire goodwill balance of $2,321 as of June 30, 2025 and December 31, 2024, was allocated to the SLS segment.

 

Revenue and costs are directly attributed to our segments, and the revenues recognized as well as the costs incurred in generating those revenues within each segment are distinguishable based on the information systems in which each segment’s financial information gets recorded. There are no intersegment revenues or other transactions between the two segments that are eliminated in consolidation by the Company for external reporting.

 

The table below presents information about reported segments for the three and six months ended June 30, 2025 and 2024.

 

    For the Three Months Ended  
    June 30, 2025     June 30, 2024  
    Stran     SLS     Total     Stran     SLS     Total  
Sales   $ 21,765     $ 10,812     $ 32,577     $ 16,693     $
—
     $ 16,693  
Gross profit     7,594       2,275       9,869       5,467      
—
       5,467  
Operating income (loss)     166       229       395       (1,108 )    
—
       (1,108 )

 

    For the Six Months Ended  
    June 30, 2025     June 30, 2024  
    Stran     SLS     Total     Stran     SLS     Total  
Sales   $ 42,700     $ 18,571     $ 61,271     $ 35,520     $
—
     $ 35,520  
Gross profit     14,385       3,966       18,351       11,080      
—
       11,080  
Operating income (loss)     93       (233 )     (140 )     (1,777 )    
—
       (1,777 )

 

The segment SLS was not a part of the Company until the segment was acquired and all of its business operations were incorporated within the Company’s newly created subsidiary in August 2024. The Stran segment’s operations have remained consistent for all periods presented, however, the Company only had one operating and reportable segment prior to the acquisition. Significant segment expenses for the Stran segment during the three and six months ended June 30, 2024 are consistent with those presented on the unaudited condensed consolidated statements of operations.