Smith & Wesson Brands, Inc. (SWBI) reported its QQ1 2025 results amid softer overall firearms demand, with net sales of $88.3 million, down 22.7% year over year. The quarter featured a restrictive demand environment and increased promotional activity, contributing to a net loss of $2.11 million and negative EPS of $0.0465. Management highlighted the resiliency of the company’s flexible manufacturing model, which helped deliver EBITDAS near $10 million and supported profitability targets despite weaker top-line performance. Gross margin expanded versus the prior year, aided by higher fixed-cost absorption and lower relocation costs, though management notes that first-quarter margins typically run lower due to operating-day dynamics. Looking ahead, management reiterated a constructive full-year view: revenue is expected to grow mid- to high-single digits versus fiscal 2024, Q2 sales projected to be 5%–10% above Q2 2024, and gross margins anticipated to land in the low- to mid-30s for the year as operating-days normalize in the second half. The company also signaled ongoing product innovation (Bodyguard 2.0; 1854 lever action) and capacity expansions to support a stronger second half, along with an active capital-return program (new $50 million buyback authorization) and a path to a debt-free balance sheet by year-end. While near-term results reflect seasonality and promotional intensity, the combination of product momentum, capacity deployment, and disciplined capital allocation supports an improving trajectory into the fall and holiday season.