UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): August 1, 2025 STRAN & COMPANY, INC. | (Exact name of registrant as specified in its charter) | | | | --- | --- | --- | | Nevada | 001-41038 | 04-3297200 | | (State or other jurisdiction | (Commission File Number) | (IRS Employer | | of incorporation) | | Identification No.) | | 2 Heritage Driv ...

Core Viewpoint - Stran & Company, Inc. will release its financial results for the second quarter of 2025 on August 12, 2025, with a conference call scheduled for August 13, 2025, to discuss these results [1]. Company Overview - Stran has over 30 years of experience in the promotional products industry, focusing on complex marketing programs that enhance brand awareness and drive sales [4]. - The company serves many Fortune 500 clients across various industries, managing promotional marketing, loyalty and incentive programs, and other marketing campaigns [4]. - Stran emphasizes building long-term relationships with clients to foster brand loyalty and utilizes advanced technology for order processing and logistics [4]. Conference Call Details - The conference call will be accessible via telephone for U.S. callers at 888-506-0062 and for international callers at +1 973-528-0011, using entry code 317692 [2]. - A webcast of the call can be accessed through the company's Investor Relations website [2]. Replay Information - A replay of the webcast will be available on the Investor Relations section of the company's website until August 13, 2026 [3]. - A telephone replay will be accessible approximately one hour after the call until August 27, 2025, with specific dialing instructions provided [3].

Core Insights - Stran & Company, Inc. has appointed Brian M. Posner to its Board of Directors, where he will serve as Chairman of the Audit Committee [1][2] - Mr. Posner brings over 40 years of financial leadership experience, having served as CFO for multiple public companies and currently holding a position on the Board of Firefly Neuroscience, Inc. [2][3] - The appointment is expected to enhance Stran's financial oversight and governance as the company continues its growth strategy [3] Company Overview - Stran has been a leader in the promotional products industry for over 30 years, specializing in complex marketing programs that leverage promotional products and loyalty incentives [4] - The company serves many Fortune 500 clients across various industries, focusing on promotional marketing, loyalty and incentive programs, and brand building [4] - Stran aims to develop long-term relationships with clients to foster brand loyalty and utilizes advanced technology for order processing and fulfillment [4]

Core Insights - Stran & Company, Inc. has appointed Mark Adams and Sarah Cummins to its Board of Directors, replacing three outgoing directors, to enhance growth and shareholder value [1][2] - The new appointments are seen as a strategic move to strengthen the company's leadership and direction [2] Company Overview - Stran specializes in outsourced marketing solutions, particularly in promotional products and loyalty incentives, and has been a leader in the promotional products industry for over 30 years [5] - The company serves many Fortune 500 clients across various industries, focusing on promotional marketing, loyalty and incentive programs, and brand building [5] Leadership Background - Mark Adams is the President and CEO of Adams Publishing Group, LLC, with extensive experience in media and private equity, holding a B.A. in Economics and an MBA [3] - Sarah Cummins has over 25 years of experience in sports, media, and entertainment, currently serving as Senior Vice President at WTA Ventures LLC, and previously managed a $1 billion global division at WWE [4]

Quincy, MA, May 29, 2025 (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, is proud to announce it has achieved the #12 ranking on the 2025 PPAI 100 list of top promotional product distributors, as recognized by the Promotional Products Association International (PPAI). This prestigious ranking, a significant jump of eight spots from th ...

Stran & Company (SWAG) Q1 2025 Earnings Call May 16, 2025 10:00 AM ET Company Participants Alexandra Schilt - Vice PresidentAndy Shape - Co-Founder, President & CEODavid Browner - Chief Financial OfficerRukun Duggal - Investment Partners Conference Call Participants None - Analyst Operator Greetings. Welcome to the Strand and Company First Quarter twenty twenty five Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. Ple ...

Financial Data and Key Metrics Changes - For Q1 2025, the company achieved a 52.4% year-over-year revenue increase, reaching approximately $28.7 million, up from $18.8 million in Q1 2024 [4][12] - Gross profit rose 51.1% to $8.5 million, representing 29.6% of sales, compared to $5.6 million or 29.8% of sales in Q1 2024 [5][13] - The net loss for Q1 2025 was approximately $400,000, an improvement from a loss of $500,000 in Q1 2024 [17] Business Line Data and Key Metrics Changes - The core Strand segment saw an 11.2% organic revenue growth, with sales increasing to approximately $20.9 million for Q1 2025 from $18.8 million in Q1 2024 [12][13] - The SLS segment, which includes the former Gander Group business, generated approximately $7.8 million in sales for Q1 2025, up from zero in Q1 2024 due to the acquisition [12][14] - Gross profit margin for the Strand segment increased to 32.4% in Q1 2025 from 29.8% in Q1 2024, while the SLS segment had a gross profit margin of 21.8% [14] Market Data and Key Metrics Changes - The company is expanding its global manufacturing footprint to mitigate tariff uncertainties, including partnerships in Vietnam, Cambodia, Taiwan, India, and Bangladesh [9] - The company is addressing global trade dynamics and tariff risks, which have been fluctuating significantly [10][36] Company Strategy and Development Direction - The company aims to accelerate organic growth, expand margins, and drive sustained profitability in 2025 [9][20] - The integration of Gander Group assets is expected to enhance customer services and create new revenue channels [7][10] - The successful launch of the NetSuite ERP system is enhancing operational efficiency and scalability [6][20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver sustained growth and operational excellence in 2025 [10][20] - The company is proactively managing tariff risks and maintaining strong relationships with customers and vendors [36][40] Other Important Information - The company ended Q1 2025 with approximately $12.2 million in cash and no long-term debt, reflecting a strong liquidity position [18] - Operating expenses increased 43.6% to approximately $9 million, but as a percentage of sales, they decreased to 31.4% [15][16] Q&A Session Summary Question: Will accounting and compliance costs decrease in 2025? - Management indicated that significant expenses related to the re-audit process should decrease in 2025, with Q1 costs around $800,000 [22][23][24] Question: Are there plans to restart a share buyback? - Management confirmed plans to reestablish a share buyback program, with approximately $6 million remaining from an initial $10 million authorization [25] Question: Can you explain the drop in cash related to the rewards program? - The drop in cash was attributed to the execution of a loyalty rewards program, where $5 million worth of prepaid debit cards were issued [26][27] Question: Will the company report ongoing versus one-time expenses? - Management confirmed plans to report adjusted EBITDA that separates ongoing public expenses from one-time costs related to audits and acquisitions [32][33] Question: Is the increase in inventory related to tariffs? - Management clarified that the increase in inventory is a natural business cadence, with most inventory purchased on behalf of customers [34][36]

Core Viewpoint - Stran & Company, Inc. reported strong financial results for Q1 2025, with significant revenue and gross profit growth, driven by both organic growth and the acquisition of Gander Group assets [2][3][4]. Financial Performance - Revenue increased by 52.4% year-over-year to approximately $28.7 million for Q1 2025, up from approximately $18.8 million in Q1 2024 [3]. - Gross profit rose by 51.1% to approximately $8.5 million, representing 29.6% of sales, compared to approximately $5.6 million or 29.8% of sales in the prior year [4][5]. - The Stran segment's sales increased to approximately $20.9 million, while the SLS segment, resulting from the Gander Group acquisition, generated approximately $7.8 million in sales [3]. Operational Highlights - The company achieved organic revenue growth of 11.2%, indicating resilience in a challenging market [2]. - The implementation of the NetSuite ERP system in January 2025 has improved automation, visibility, and process control, enhancing operational efficiency [2]. - Operating expenses increased by 43.6% to approximately $9.0 million, but as a percentage of sales, they decreased to 31.4% from 33.4% year-over-year [6]. Profitability and Loss - The net loss for Q1 2025 was approximately $0.4 million, a slight improvement from a net loss of approximately $0.5 million in Q1 2024, primarily due to increased gross profit [7]. Future Outlook - The company is focused on executing its strategy to enhance operational efficiency and expand margins while maintaining a strong balance sheet with approximately $12.2 million in cash and equivalents [2].

Financial Performance - Sales for the three months ended March 31, 2025, increased by 52.4% to $28.694 million compared to $18.781 million for the same period in 2024[130] - Gross profit for the three months ended March 31, 2025, was $8.482 million, representing 29.6% of total sales, compared to $5.614 million or 29.8% in 2024[138] - Total operating expenses increased to $9.017 million, accounting for 31.4% of total sales, compared to $6.279 million or 33.4% in 2024[138] - The net loss for the three months ended March 31, 2025, was $393,000, or 1.4% of total sales, compared to a net loss of $487,000, or 2.6% in 2024[138] - Total sales increased by 52.4% to approximately $28.7 million for the three months ended March 31, 2025, compared to approximately $18.8 million for the same period in 2024[140] - Cost of sales rose by 53.0% to approximately $20.2 million for the three months ended March 31, 2025, from approximately $13.2 million for the same period in 2024[141] - Gross profit increased by 51.1% to approximately $8.5 million, representing 29.6% of sales for the three months ended March 31, 2025, compared to approximately $5.6 million, or 29.8% of sales, for the same period in 2024[143] - Operating expenses increased by 43.6% to approximately $9.0 million for the three months ended March 31, 2025, from approximately $6.3 million for the same period in 2024[144] - Net loss for the three months ended March 31, 2025, was approximately $0.4 million, compared to approximately $0.5 million for the same period in 2024[149] Revenue Sources - Program clients accounted for 83.8% of total revenue for the three months ended March 31, 2025, down from 86.0% in the same period of 2024[128] - The majority of revenue is derived from program business, with fewer than 350 of over 2,000 active customers classified as program clients[128] - The increase in sales for the Stran segment was primarily due to higher spending from existing clients and new customers[140] - The SLS segment's sales increase was attributed to the acquisition of the Gander Group Assets in August 2024[140] Assets and Equity - As of March 31, 2025, total assets were approximately $52.2 million, with total stockholders' equity of approximately $31.3 million[131] - Cash and cash equivalents as of March 31, 2025, were approximately $4.2 million, down from $9.5 million at the end of March 2024[150] - The Company had net deposits from reward card programs totaling approximately $0.9 million as of March 31, 2025[178] Operating Challenges - The company is facing challenges due to U.S. tariffs, particularly a reduction of tariffs on imports from China from 145% to 30% for 90 days, which may impact pricing and customer retention[129] Financing and Credit - The Revolving Line of Credit was capped at $7.0 million or 80% of Eligible Accounts plus 50% of Eligible Inventory, with a maximum of $2.0 million for advances based on Eligible Inventory[157] - The interest rate on the Revolving Line of Credit was set at the prime rate plus 0.5% per annum, with late payments incurring a 5.0% charge and a 10.0% increase in interest rate upon default[158][159] - The Company was required to maintain a minimum net worth of $2.0 million by December 31, 2021, increasing to $3.5 million by December 31, 2023[163] - As of the Termination Date on August 26, 2024, the Company had no funds drawn on the Revolving Line of Credit, which was subsequently terminated[168][169] - The Company acquired Gander Group assets for approximately $1.1 million in cash and assumed liabilities totaling approximately $5.5 million[171] - The Company must maintain a minimum liquidity of $7.5 million at all times, defined as cash and short-term investments[165] - The Company is required to maintain a "Minimum Interest Coverage" of 1.25:1 for the fiscal year ending December 31, 2024[165] Lease Obligations - The new office lease in North Quincy, Massachusetts, starting June 1, 2025, has an initial base rent of approximately $21,000 per month with annual escalations of 2.2% to 2.5%[175] - Future minimum lease payments total approximately $1.31 million, with $398,000 due in the remainder of 2025[177] Goodwill and Asset Impairment - The company conducts an annual impairment review of goodwill in the fourth fiscal quarter, assessing qualitative factors to determine potential impairment[182] - The impairment test for goodwill utilizes both the income approach and market approach, relying on significant estimates and assumptions regarding future financial performance[183] - Long-lived assets are assessed for impairment whenever events indicate that their carrying value may not be recoverable, considering factors such as significant underperformance and negative industry trends[184] - The fair value estimation for long-lived assets requires assumptions about future business prospects and market demand, which are subjective and complex[184] - Changes in assumptions and estimates regarding goodwill and long-lived assets could materially impact the company's reported financial results[184] - The company emphasizes the importance of judgment in evaluating impairment of both goodwill and long-lived assets, highlighting the subjective nature of these assessments[184] - The company’s carrying value for reporting units excludes certain corporate assets and liabilities, such as cash and debt, during fair value assessments[183] - The impairment review process is triggered by various factors, including significant changes in asset usage or overall business strategy[184] - The company’s financial statements include significant accounting policies and estimates that impact the valuation of goodwill and intangible assets[181] Compliance and Accounting Standards - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to rely on certain exemptions from disclosure requirements[132] - Recent accounting pronouncements are discussed in Note A.18 of the financial statements, indicating ongoing compliance with new accounting standards[185]

Financial Performance - Sales increased 8.8% to approximately $82.7 million for the fiscal year ended December 31, 2024, compared to approximately $76.0 million for 2023[7]. - Net loss for the year ended December 31, 2024, was approximately $4.1 million, compared to a net loss of approximately $0.4 million for 2023[10]. - Basic and diluted net loss per common share was $(0.22) in 2024, compared to $(0.02) in 2023[21]. - Loss from operations widened to $(4,894) million in 2024, compared to $(1,268) million in 2023[21]. - Other income decreased to $759 million in 2024, down from $924 million in 2023, a decline of 17.9%[21]. Gross Profit and Margins - Gross profit for 2024 was approximately $25.8 million, representing a gross margin of 31.2%, down from 32.7% in 2023[8]. - Gross profit for the Stran segment decreased to approximately $23.7 million in 2024 from approximately $24.9 million in 2023, while the SLS segment saw an increase to approximately $2.1 million[8]. - Gross profit rose to $25,813 million in 2024, compared to $24,852 million in 2023, reflecting a growth of 3.9%[21]. Operating Expenses - Operating expenses rose 17.6% to approximately $30.7 million for 2024, leading to an increase in the operating expense ratio to 37.2% from 34.4% in 2023[9]. - Total operating expenses increased to $30,707 million in 2024, up from $26,120 million in 2023, marking a rise of 17.5%[21]. Assets and Cash Position - Cash, cash equivalents, and investments totaled $18.2 million as of December 31, 2024[6]. - Total assets increased to $55.148 million as of December 31, 2024, compared to $49.036 million in 2023[19]. Future Outlook - Stran expects to surpass $100 million in annual sales in 2025, driven by organic growth and expansion into high-value verticals[5]. - The company secured multiple new multi-year, six-figure contracts across various industries, indicating growing demand for its services[3]. Acquisitions and Contributions - The acquisition of Gander Group assets contributed approximately $9.9 million in sales within a few months, significantly expanding Stran's presence in the hospitality and entertainment sectors[2]. Cost of Sales - Total cost of sales increased to $56,841 million in 2024, up from $51,148 million in 2023, an increase of 11.5%[21]. Share Information - Weighted-average common shares outstanding increased to 18,587,607 in 2024 from 18,519,892 in 2023[21]. Goodwill Impairment - The company recorded a goodwill impairment of $810 million in 2023, which was not present in 2024[21].