Stran & Company (SWAG) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 increased 8.9% year-over-year to $31.2 million, with both business segments contributing to profitability and growth driven by existing and new clients.

• Net income was $744,000, reversing a net loss of $393,000 in the prior year, due to higher gross profit and lower operating expenses.

• EBITDA improved to $1.0 million from $(0.2) million year-over-year.

• Gross margin expanded to 30.9% from 29.6% year-over-year, reflecting favorable customer mix and cost management.

• Operating expenses as a percentage of sales decreased to 28.8% from 31.4% year-over-year.

Financial highlights

• Revenue: $31.2 million, up from $28.7 million year-over-year.

• Gross profit: $9.6 million (30.9% margin), up from $8.5 million (29.6% margin).

• Net income: $744,000, or $0.04 per diluted share, versus a net loss of $393,000, or $(0.02) per share, year-over-year.

• EBITDA was $1.0 million, up $1.2 million from the prior year.

• Cash, cash equivalents, and investments totaled $12.8 million as of March 31, 2026.

Outlook and guidance

• Management expects 2026 to be a year of sustained, profitable growth, driven by deeper enterprise client engagement and expanded service adoption.

• Operating leverage is anticipated to continue as revenue grows within a fixed cost structure.

• Management expects current cash levels to be sufficient for operational and payment needs for at least the next 12 months and beyond.

• Ongoing tariff and supply chain uncertainties may impact future gross margins and sales.