Stran & Company, Inc. Q4 Earnings Call Highlights

26 Mar 2026, 15:08 by Sarita Garza · The Markets Daily

Stran & Company, Inc. (NASDAQ:SWAG) reported fiscal year 2025 results highlighted by strong revenue growth, improving operating leverage, and a sharp reduction in losses, as management pointed to expanding enterprise relationships and scaling program-based engagements as key drivers.

Revenue growth led by core promotional business and full-year loyalty contribution

Chief Executive Officer Andy Shape said 2025 was a “defining year” for the company, with revenue rising to $116.2 million, a 40.6% increase from the prior year. Shape attributed growth to execution across the business and “continued momentum,” including 12.9% organic growth in the core promotional products business, driven by increased spending from existing enterprise clients and the addition of new customers.

Chief Financial Officer David Browner said total sales increased from $82.7 million in 2024 to $116.2 million in 2025. By segment:

Stran Promo: sales increased to $82.1 million from $72.7 million, primarily due to higher spending from existing clients and contributions from new customers.
Stran Loyalty: sales increased to $34.1 million from $9.9 million, which Browner said was largely due to the inclusion of a full year of consolidated operations from the former Gander Group business acquired in August 2024.

Margins impacted by segment mix and tariffs

Gross profit increased to $34.2 million, up 32.6% from $25.8 million a year earlier. However, gross margin declined to 29.5% of sales from 31.2% in 2024. Browner said the margin decline was primarily attributable to the inclusion of a full year of the Stran Loyalty operations, which have historically operated at a lower gross margin than the Stran business segment.

By segment, Browner reported:

Stran Promo: gross profit rose to $27.0 million from $23.7 million, with gross margin improving slightly to 32.9% from 32.7%.
Stran Loyalty: gross profit increased to $7.2 million from $2.1 million, with gross margin increasing to 21.1% from 20.8%.

Management also discussed tariff-related headwinds. Shape said elevated tariffs increased product costs, particularly for direct import orders in the loyalty segment, and while the company was able to pass along a portion of the increased costs, margins were still compressed. He added that tariff uncertainty created hesitation among buyers, particularly in the loyalty and casino segments, affecting both revenue and profitability.

Browner similarly noted tariffs had a negative impact on gross margin in 2025, “notably related to our Stran Loyalty segment.” Both executives said they believe tariffs have stabilized, and Browner said the company expects to see improvements in gross margin going forward.

Operating leverage improves despite elevated public-company and re-audit costs

Shape emphasized progress on efficiency, noting total operating expenses declined to 31.1% of revenue in 2025 from 37.2% in 2024. He said the year included elevated legal, accounting, and other public-company costs, including expenses tied to a re-audit of historical financials in the first half of the year, and described these as largely one-time items that are now mostly behind the company. Shape said public company-related expenses totaled $5.2 million in 2025, compared with $3.3 million in 2024.

Browner reported total operating expenses increased 17.8% to $36.2 million from $30.7 million, but decreased as a percentage of sales due to the higher revenue base.

Segment details included:

Stran Promo: operating expenses increased to $28.3 million from $27.6 million, while falling to 34.5% of segment sales from 37.9%. Browner said the increase was mainly due to legal and accounting costs related to the re-audit, increased headcount, and higher expenses tied to the company’s Magento e-commerce platform.
Stran Loyalty: operating expenses increased to $7.9 million from $3.1 million, with operating expenses falling to 23.1% of segment sales from 31.4%. Browner attributed the dollar increase primarily to the full-year inclusion of the acquired operations.

Loss narrows, EBITDA turns positive; cash balance noted

The company reported a net loss of approximately $0.7 million for 2025, compared with a net loss of approximately $4.1 million in 2024. Browner said the change was primarily driven by higher gross profit, partially offset by higher operating expenses.

Shape highlighted that net loss narrowed to $747,000 from $4.1 million the year before, and said the company generated positive EBITDA of $184,000 for the full year, compared with negative $3.6 million in 2024. In closing remarks after the call’s Q&A session attracted no questions, Shape reiterated the company delivered “positive EBITDA versus an over $3 million EBITDA loss last year.”

As of December 31, 2025, Browner said the company had approximately $11.6 million in cash and cash equivalents and investments.

Strategy: deepen enterprise programs, expand platform, pursue acquisitions; warrants discussed

Shape described the company’s strategy as centered on long-term programmatic relationships, a diversified customer base, and a technology-enabled platform designed for efficient scaling. He said Stran serves more than 2,000 active customers, including over 30 Fortune 500 companies, and that an increasing portion of revenue comes from program-based engagements that provide more visibility and recurring revenue streams.

Management said clients are using more of the company’s offerings beyond one-off campaigns, including promotional products, loyalty and incentive programs, e-commerce solutions, print services, warehousing, and logistics. Shape also highlighted the launch of a new “client-branded gifting platform,” which he said builds on core e-commerce capabilities and is intended to support curated, scalable gifting for employee recognition, customer engagement, or marketing initiatives, while adding more recurring programmatic revenue.

On governance, Shape said the company added experienced public company and industry leaders to its board over the past year.

Looking ahead, Shape said the promotional products market was $27.7 billion in 2025 and described the industry as large and fragmented, with opportunities for market share gains through organic growth and acquisitions. While the company did not provide formal guidance for 2026, Shape said management expects a “meaningful improvement” in first-quarter profitability, citing customer demand, operating leverage, and progress made in 2025.

Shape also discussed the company’s warrants, stating they have an exercise price of approximately $4.81 per share and are scheduled to expire in the fourth quarter of 2026. He called the expiration a potential catalyst that could remove an overhang on the stock and simplify the capital structure.

About Stran & Company, Inc. (NASDAQ:SWAG)

Stran & Co, Inc engages in the provision of promotional marketing and branded merchandise services. It offers promotional product, custom manufacturing, custom packaging, warehousing, and program management. The company was founded by Andrew Shape and Andrew Stranberg in 1994 and is headquartered in Quincy, MA.