Executive Summary
Smith & Wesson Brands Inc reported QQ1 2026 revenue of USD 85.08 million, down 3.69% year over year and down 39.56% quarter over quarter, translating into a gross profit of USD 22.07 million and a gross margin of 25.95%. EBITDA stood at USD 5.54 million (6.51% margin), while operating income and net income were negative at USD -3.00 million and USD -3.41 million respectively, resulting in an EPS of -0.077. The quarter exhibited notable profitability pressure driven by continued operating expenses and working capital dynamics, culminating in negative free cash flow of USD -12.40 million and a cash balance of USD 17.96 million at period end. Total debt remained elevated at USD 129.36 million with net debt of USD 111.40 million, underscoring a leverage constraint even as financing activities provided a modest cash inflow of USD 8.31 million and dividend outflows of USD 5.86 million.
Key Performance Indicators
QoQ: -39.56% | YoY:-3.69%
QoQ: -45.56% | YoY:-8.75%
QoQ: -120.49% | YoY:-61.17%
QoQ: -135.04% | YoY:-61.97%
QoQ: -135.05% | YoY:-65.81%
Key Insights
Revenue: 85,077,000; YoY -3.69%; QoQ -39.56% | Gross Profit: 22,074,000; YoY -8.75%; QoQ -45.56% | Gross Margin: 25.95% | EBITDA: 5,540,000; Margin 6.51% | Operating Income: -3,001,000; Margin -3.53% | Net Income: -3,411,000; Margin -4.01% | EPS: -0.077 | Depreciation & Amortization: 8,436,000 | Interest Expense: 1,205,000 | Cash Flow from Operations: -8,110,000 | Free Cash Flow: -12,401,000 | Capital Expenditures: -4,291,000 | Net Debt: 111,398,000 | Total Debt: 129,362,000 | Cash at End of...
Financial Highlights
Revenue: 85,077,000; YoY -3.69%; QoQ -39.56% | Gross Profit: 22,074,000; YoY -8.75%; QoQ -45.56% | Gross Margin: 25.95% | EBITDA: 5,540,000; Margin 6.51% | Operating Income: -3,001,000; Margin -3.53% | Net Income: -3,411,000; Margin -4.01% | EPS: -0.077 | Depreciation & Amortization: 8,436,000 | Interest Expense: 1,205,000 | Cash Flow from Operations: -8,110,000 | Free Cash Flow: -12,401,000 | Capital Expenditures: -4,291,000 | Net Debt: 111,398,000 | Total Debt: 129,362,000 | Cash at End of Period: 17,964,000 | Beginning Cash: 25,231,000 | Working Capital Movement (Change in Working Capital): -14,491,000 | Current Ratio (approx.): 5.21 | Quick Ratio (approx.): 1.37
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
85.08M |
-3.69% |
-39.56% |
| Gross Profit |
22.07M |
-8.75% |
-45.56% |
| Operating Income |
-3.00M |
-61.17% |
-120.49% |
| Net Income |
-3.41M |
-61.97% |
-135.04% |
| EPS |
-0.08 |
-65.81% |
-135.05% |
Management Commentary
Note: The earnings transcript is not included in the provided dataset. As a result, no management quotes or verbatim transcript insights can be extracted at this time. Once the transcript is available, a detailed thematic synthesis (strategy, operations, market conditions) with direct quotes will be provided.
Transcript data not provided in the dataset.
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Transcript data not provided in the dataset.
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Forward Guidance
No formal forward guidance is present in the provided dataset for QQ1 2026. Given the quarter’s profitability pressure and working-capital headwinds, the outlook hinges on demand normalization in the firearms segment, stabilization of working capital, and potential efficiency initiatives. Absent explicit targets, investors should monitor: (i) any refresh in consumer demand and order backlogs, (ii) inventory digestion and supplier/Vendor terms, (iii) debt maturity profile and refinancing opportunities, and (iv) regulatory developments impacting firearms sales. Scenarios: base case assumes gradual demand stabilization with modest EBITDA improvement; bear case contemplates continued margin compression and cash-flow pressure; bull case requires meaningful acceleration in direct-to-consumer channels and lower Opex through operating leverage.