Stran & pany(SWAG) - 2025 Q3 - Quarterly Results

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]