Smith & Wesson Posts Wider Loss in 2025 Q1, But New Products Drive Strong Demand
Maryville, TN — Smith & Wesson Brands, Inc. (NASDAQ: SWBI) reported a net loss of $3.4 million, or $0.08 per share, for the first quarter of fiscal 2026, as firearm sales dipped slightly in what is historically the slowest period of the year. Net sales came in at $85.1 million, down 3.7% compared to the same quarter last year.
Gross margin slipped to 25.9% from 27.4%, and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) dropped to $8.0 million, compared with $10.2 million a year ago. Despite the decline, the company emphasized that results were “better than expected” thanks to strong retail demand and a lineup of new firearms driving sales.
CEO: Innovation Keeps the Brand Strong
Mark Smith, President and CEO, highlighted that new products accounted for more than a third of all sales:
“First quarter results came in better than expected, reflecting robust demand for our new products and continued strong market share for our broader portfolio in every firearms category in which we compete,” Smith said.
Smith added that Smith & Wesson’s innovation strategy—keeping the product line fresh with new introductions—remains a cornerstone of its growth plans.
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CFO: Inventory Declines Show Healthy Sell-Through
CFO Deana McPherson reported that distributor inventory levels dropped more than 10% compared to the prior quarter, signaling strong consumer sell-through. Looking ahead, she expects Q2 sales to rebound sharply with the hunting and holiday season, though still coming in 3–5% below last year’s second quarter.
The board also declared a quarterly dividend of $0.13 per share, payable October 2, 2025, to shareholders of record on September 18th, 2025.
Looking Forward
While Smith & Wesson continues to face headwinds from seasonal slowdowns and political pressures on the firearms industry, management stressed that demand for new firearms remains solid. The company is counting on its innovation pipeline to maintain leadership across handguns, rifles, and suppressors under its Smith & Wesson and Gemtech brands.
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