Group 1 - Minot Light Capital Partners reported a net return of 7.6% for Q3 2025, which underperformed against benchmarks, particularly the micro-cap benchmark's return of 17.1% [1] - The fund's top five holdings were highlighted, indicating the best investment picks for 2025 [1] Group 2 - Stran & Company, Inc. (NASDAQ:SWAG) was featured as a current holding, with a market capitalization of $30.802 million and a one-month return of -19.42%, while gaining 64.37% over the last 52 weeks [2] - The company is based in Quincy, MA, and has been closely followed by Minot Light since its IPO in 2021, with management meetings and customer interactions enhancing the investment thesis [3] - Stran & Company exemplifies an overlooked small-cap opportunity, with no sell-side coverage and a daily trading volume of approximately $160K [3]

Quincy, MA, Dec. 05, 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, today announced the launch of its Online Gifting Program, a customizable platform that enables clients to deliver their own branded gifting experiences to their customers. The scalable digital platform is designed to help clients recognize and reward their custo ...

Core Insights - Stran & Company, Inc. has appointed Jack Audibert as Chief Strategy Officer and Chief Compliance Officer, reflecting the company's growth priorities and operational needs [1][2] - Mr. Audibert has been instrumental in the company's expansion, including the acquisition and integration of six companies, and will continue to lead corporate planning and compliance functions [2][3] Company Overview - Stran has over 30 years of experience in the promotional products industry, specializing in complex marketing programs that enhance brand awareness and drive sales [3] - The company serves many Fortune 500 clients across various industries, providing promotional marketing, loyalty and incentive programs, and utilizing advanced technology for order processing and logistics [3]

Financial Data and Key Metrics Changes - Sales increased 29% year over year to approximately $26 million in Q3 2025, compared to approximately $20.1 million in Q3 2024 [11] - Year-to-date sales reached $87.3 million for the first nine months of 2025, a 56.7% increase from approximately $55.7 million in the same period last year [14] - EBITDA improved by approximately $2.8 million year to date, moving from a negative $3.2 million in 2024 to a negative $384,000 in 2025 [7][16] Business Segment Data and Key Metrics Changes - The Stran segment achieved nine-month revenue of $60.3 million, up from $52.2 million last year, driven by deeper client relationships and new enterprise wins [5] - The Stran Loyalty Solutions (SLS) segment generated $26.9 million in revenue compared to $3.5 million last year, significantly boosted by the acquisition of Gander Group [5][15] - Operating expenses grew only 30.3% year over year for the first nine months of 2025, while sales grew 56.7% during the same period [6] Market Data and Key Metrics Changes - Elevated tariffs led to increased product costs for direct import orders, particularly affecting the SLS segment, which compressed margins [7] - Buyer hesitation due to tariff uncertainty impacted top-line activity and profitability for the quarter [8] Company Strategy and Development Direction - The company is focused on deepening client relationships, increasing operational efficiency, and maintaining financial discipline [19] - Strategic M&A remains a key pillar of growth, with a disciplined roll-up strategy in a fragmented industry [8] - The company aims to transition into a phase focused on consistent profitability and margin expansion [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Q4 performance, historically the strongest quarter, and emphasized a focus on sustained profitability [26] - The company is prepared to navigate potential economic contractions due to its diversified client base and strong balance sheet [32][33] Other Important Information - The company repurchased approximately 267,000 shares of common stock during Q3, totaling about $408,000 [8] - As of September 30, 2025, the company had approximately $11.8 million in cash, cash equivalents, and investments [17] Q&A Session Summary Question: How are tariffs counted from an accounting perspective? - Management explained that tariffs increased costs significantly, with over $1 million in direct costs that could not be passed on to customers, impacting profitability [22][23] Question: Will the company be positive net income for Q4? - Management indicated that Q4 is historically strong and expressed confidence in achieving sustained profitability moving forward [26] Question: How does the business perform during economic contractions? - Management noted that the business is not heavily reliant on capital expenditure and can pivot easily during economic downturns, with diversified client bases mitigating risks [31][32] Question: What is the methodology for finding acquisition targets? - Management highlighted that the company receives numerous inquiries for acquisitions and attends industry events to identify potential targets, focusing on those without succession plans [36]

Financial Performance - For the three months ended September 30, 2025, sales increased by 29.0% compared to the same period in 2024, and for the nine months ended September 30, 2025, sales increased by 56.7% compared to the same period in 2024[144]. - Total sales increased by 29.0% to approximately $25.98 million for the three months ended September 30, 2025, compared to $20.14 million for the same period in 2024[153]. - Total sales increased by 56.7% to approximately $87.3 million for the nine months ended September 30, 2025, compared to approximately $55.7 million for the same period in 2024[166]. - Gross profit increased by 18.8% to approximately $7.07 million, representing 27.2% of sales for the three months ended September 30, 2025, down from 29.5% in 2024[156]. - Gross profit increased by 49.3% to approximately $25.4 million, representing 29.1% of sales, down from 30.6% in the prior year[168]. - Net loss narrowed to approximately $1.24 million for the three months ended September 30, 2025, compared to a net loss of approximately $2.04 million in 2024[163]. - Net loss for the nine months ended September 30, 2025, was approximately $1.0 million, a significant improvement from a net loss of approximately $3.6 million in the same period of 2024[174]. Revenue Sources - Program clients accounted for 78% of total revenue for the three months ended September 30, 2025, down from 83.2% in the same period of 2024[141]. - The majority of revenue is derived from program business, with fewer than 350 of over 2,000 active customers classified as program clients[141]. - Sales from the Stran segment rose to approximately $60.3 million, a 15.7% increase, while the SLS segment saw a significant increase of 671.5% to approximately $26.9 million due to the acquisition of Gander Group Assets[166]. - The Stran segment's sales increased to approximately $17.64 million, while the SLS segment's sales surged by 139.0% to approximately $8.34 million due to the acquisition of Gander Group Assets[153]. Costs and Expenses - Cost of sales rose by 33.2% to approximately $18.91 million for the three months ended September 30, 2025, from $14.19 million in 2024, resulting in a total cost of sales percentage of 72.8%[154]. - Total cost of sales increased by 60.0% to approximately $61.8 million, with the cost of sales as a percentage of total sales rising to 70.9% from 69.4%[167]. - Operating expenses rose by 8.8% to approximately $8.85 million for the three months ended September 30, 2025, with a decrease in the Stran segment's expenses to 39.0% of sales[158]. - Operating expenses rose by 30.3% to approximately $27.3 million, with a decrease in operating expenses as a percentage of sales to 31.3% from 37.7%[170]. Assets and Liquidity - As of September 30, 2025, total assets were approximately $50.3 million, with total stockholders' equity of approximately $30.2 million[145]. - As of September 30, 2025, the company had cash and cash equivalents of approximately $6.7 million and investments of approximately $5.1 million[175]. - The company believes current cash levels will be sufficient for anticipated cash needs over the next 12 months, but may require additional resources for future expansions or acquisitions[176]. - The company is required to maintain a minimum liquidity of $7.5 million at all times, defined as cash and short-term investments, less rewards program liabilities[192]. Acquisitions and Transactions - The company acquired substantially all of the assets of Bangarang Enterprises, LLC (Gander Group) in August 2024, contributing to revenue growth[144]. - The company entered into a Secured Party Sale Agreement to acquire Gander Group assets for approximately $1.1 million in cash and the assumption of liabilities totaling approximately $5.5 million[196][197]. - The Gander Group Transaction resulted in the indirect acquisition of substantially all assets of Gander Group, including all equity of Gander Group Louisiana, which became a wholly-owned subsidiary[198]. Tax and Other Income - Other income improved to approximately $304 thousand for the three months ended September 30, 2025, compared to an expense of $22 thousand in 2024[159]. - Other income increased to approximately $584 thousand, compared to an expense of approximately $6 thousand in the prior year, primarily due to the release of a receivable reserve[171]. - Interest income increased to approximately $87 thousand for the three months ended September 30, 2025, compared to $64 thousand in 2024, due to higher average program deposit balances[159]. - The income tax benefit for the three months ended September 30, 2025, was approximately $72 thousand, accounting for 5.5% of the loss before income taxes[161]. Accounting and Compliance - The Company prepares financial statements in accordance with U.S. GAAP, requiring estimates and assumptions that could significantly affect reported amounts[205]. - The valuation of goodwill and intangible assets is considered a critical accounting estimate, with annual impairment reviews conducted during the fourth fiscal quarter[206]. - The impairment review process for goodwill involves assessing qualitative factors and comparing fair value to carrying amounts[207]. - Long-lived asset impairment reviews are triggered by significant underperformance or changes in business strategy, requiring subjective judgment[209]. - Recent accounting pronouncements are discussed in Note A.19 of the unaudited condensed consolidated financial statements[210]. Lease Agreements - The Company entered into a seven-year lease agreement for new office space in North Quincy, Massachusetts, with an initial base rent of approximately $21 thousand per month and annual escalations of 2.2% - 2.5%[201]. - A lease for a 6,500-square foot office space in Irvine, California commenced on January 1, 2025, with an initial base rent of approximately $17 thousand per month and annual increases of approximately 4%[202]. - Total future non-cancelable minimum lease payments amount to approximately $2,872 thousand, with the largest payment of $702 thousand due in 2026[203].

Financial Performance - Sales increased by 29.0% year-over-year to $26.0 million in Q3 2025, and by 56.7% to $87.3 million for the nine months ended September 30, 2025[2] - Stran segment revenue grew to $60.3 million for the nine-month period, up from $52.2 million last year, while SLS revenue surged to $26.9 million from $3.5 million[2] - Gross profit for the nine months ended September 30, 2025, increased by 49.3% to $25.4 million, with a gross profit margin of 29.1%[6] - Gross profit for Q3 2025 was $7,072 million, compared to $5,952 million in Q3 2024, reflecting a 19% increase[17] - Total cost of sales for Q3 2025 was $18,909 million, an increase from $14,192 million in Q3 2024, representing a 33% rise[17] Loss and EBITDA - Net loss for the nine months ended September 30, 2025, was reduced to $(1.0) million from $(3.6) million in the prior year[6] - EBITDA improved by $2.8 million to $(0.4) million for the nine months ended September 30, 2025, compared to the prior year[6] - Net loss for Q3 2025 was $1,240 million, an improvement from a net loss of $2,038 million in Q3 2024[17] - EBITDA for Q3 2025 was $(1,112) million, compared to $(1,870) million in Q3 2024, showing a reduction in losses[22] Operating Expenses - Operating expenses increased by 30.3% to $27.3 million for the nine months ended September 30, 2025, but as a percentage of sales, they decreased to 31.3%[6] - Operating expenses for Q3 2025 totaled $8,854 million, up from $8,136 million in Q3 2024, indicating an increase of 9%[17] Cash Position - The company ended the quarter with a strong cash position of $11.8 million in cash, cash equivalents, and investments[1] - Cash and cash equivalents at the end of Q3 2025 were $6,697 million, down from $10,036 million at the end of Q3 2024[19] - Net cash used in operating activities for the nine months ended September 30, 2025 was $(4,834) million, compared to $1,427 million provided in the same period of 2024[19] - Net cash provided by investing activities for the nine months ended September 30, 2025 was $3,133 million, compared to $1,516 million in the same period of 2024[19] Shareholder Actions - The company repurchased approximately 267,000 shares of common stock for a total of $408,000 during the quarter[2] - The weighted-average common shares outstanding for Q3 2025 were 18,384,904, slightly down from 18,589,086 in Q3 2024[17] Strategic Outlook - Stran plans to continue organic growth and pursue acquisitions as part of its strategy moving into 2026[3] - The company was recognized as one of the 'Greatest Companies to Work For' by the Promotional Products Association International in 2025[2]

Core Insights - Stran & Company, Inc. reported a significant increase in sales, achieving a 56.7% rise to $87.3 million for the nine months ended September 30, 2025, compared to the same period last year [1][2] - The company continues its share repurchase program, ending the quarter with a strong cash position of $11.8 million [1][2] - A conference call is scheduled for November 13, 2025, to discuss financial results and corporate developments [1][6] Financial Performance - For the third quarter of 2025, sales increased by 29.0% year-over-year to $26.0 million, driven by higher spending from both new and existing customers [2][3] - The Stran segment's revenue grew to $60.3 million for the nine-month period, up from $52.2 million last year, while Stran Loyalty Solutions (SLS) revenue surged to $26.9 million from $3.5 million [2][10] - Gross profit for the nine months increased by 49.3% to $25.4 million, although the gross profit margin decreased to 29.1% due to the lower margin of the acquired Gander Group business [10][2] Operating Expenses and Losses - Operating expenses rose by 30.3% to $27.3 million for the nine months ended September 30, 2025, but as a percentage of sales, they decreased to 31.3% from 37.7% [10][2] - The net loss for the nine months was reduced to $1.0 million from $3.6 million in the prior year, indicating improved financial health [10][2] - EBITDA improved by $2.8 million to $(0.4) million for the nine months ended September 30, 2025, reflecting better expense management and margin improvement [10][2] Share Repurchase and Recognition - The company repurchased approximately 267,000 shares of common stock for a total of $408,000, demonstrating confidence in its long-term outlook [2][10] - Stran was recognized by the Promotional Products Association International as one of the "Greatest Companies to Work For" in 2025, highlighting its commitment to employee engagement and company culture [2][10] Future Outlook - The company aims to continue its momentum through organic growth and acquisitions as it approaches its historically strongest quarter of the year [2][10] - Focus areas include deepening client relationships, improving operational efficiency, and maintaining financial discipline to support long-term growth [2][10]

Core Viewpoint - Stran & Company, Inc. will host a conference call on November 13, 2025, to discuss its financial results for Q3 2025 and corporate developments [1]. Group 1: Conference Call Details - The conference call is scheduled for 10:00 A.M. Eastern Time on November 13, 2025 [1]. - U.S. callers can dial toll-free 877-545-0523, while international callers can use +1 973-528-0016 with entry code: 823571 [2]. - A webcast of the call will be available on the Company's Investor Relations section [2]. Group 2: Replay Information - A webcast replay will be accessible through November 13, 2026, on the Investor Relations section of the Company's website [3]. - A telephone replay will be available approximately one hour after the call, through November 27, 2025, with specific dialing instructions for U.S. and international callers [3]. Group 3: Company Overview - Stran has over 30 years of experience in the promotional products industry, focusing on complex marketing programs [4]. - The Company serves many Fortune 500 companies across various industries, managing promotional marketing, loyalty, and incentive programs [4]. - Stran aims to build long-term relationships with clients to enhance brand loyalty through effective promotional strategies [4].

Core Points - Stran & Company, Inc. has been recognized by the Promotional Products Association International (PPAI) as one of the "Greatest Companies to Work For" in 2025, highlighting its commitment to a positive workplace culture [1][3][6] - The recognition emphasizes the importance of company culture, employee support, and teamwork rather than just sales or growth metrics, as stated by CEO Andy Shape [3][6] - Stran has over 30 years of experience in the promotional products industry, specializing in complex marketing programs and serving many Fortune 500 companies [4] Company Overview - Stran provides outsourced marketing solutions, focusing on promotional products, branded merchandise, and loyalty incentive programs to enhance brand awareness and drive sales [4] - The company aims to build long-term relationships with clients, facilitating connections with customers and employees to foster brand loyalty [4] - Stran utilizes advanced technology for efficient order processing, warehousing, and fulfillment, ensuring high-quality customer service [4]

Group 1 - Stran & Company, Inc. is participating in the H.C. Wainwright 27th Annual Global Investment Conference from September 8-10, 2025, in New York City [1] - The presentation by Stran will be available on-demand for registered attendees starting September 5, 2025, at 7:00 AM Eastern Time [2] - Stran has over 30 years of experience in the promotional products industry, focusing on complex marketing programs to enhance brand awareness and drive sales [3] Group 2 - Stran serves many Fortune 500 companies across various industries, managing promotional marketing, loyalty, and incentive programs [3] - The company emphasizes building long-term relationships with clients to foster brand loyalty among customers and employees [3] - Stran utilizes advanced technology for efficient order processing, warehousing, and fulfillment functions [3]