QUINCY, Mass., May 12, 2026 (GLOBE NEWSWIRE) -- Stran & Company, Inc. ("Stran" or the "Company") $(SWAG)$ $(SWAGW)$, a leading outsourced marketing solutions provider that leverages its promotional products and loyalty incentive expertise, today announced its financial results for the first quarter of 2026 ended March 31, 2026, and provided a business update. Management will host a conference call at 10:00 a.m. Eastern Time on Wednesday, May 13, 2026.

First Quarter Financial Highlights

   -- Sales: $31.2 million, an increase of 8.9% year-over-year 
 
   -- Gross Profit: $9.6 million, an increase of 13.7% year-over-year 
 
   -- Gross Margin: 30.9%, compared to 29.6% for Q1 2025 
 
   -- Net Income: $0.7 million, compared to net loss of ($0.4) million for Q1 
      2025 
 
   -- EBITDA: $1.0 million, compared to $(0.2) million for Q1 2025, an 
      improvement of $1.2 million 
 
   -- Cash, Cash Equivalents, and Investments: $12.8 million as of March 31, 
      2026 

"This quarter marks a meaningful inflection point for Stran," said Andy Shape, Chief Executive Officer of Stran. "We delivered $31.2 million in revenue, up 8.9% year-over-year, alongside a gross margin of 30.9% -- more than 100 basis points above the prior year period -- and EBITDA of $1.0 million compared to EBITDA of $(0.2) million for Q1 2025. What gives us particular confidence is that this profitability was driven by both segments of our business. Our core Stran segment grew revenue nearly 12% while our SLS segment, which represents the integrated former Gander Group business, achieved a dramatic improvement in operating profitability, swinging from a loss from operations of $0.5 million in Q1 2025 to income from operations of $0.5 million this quarter. We believe Q1 2026 represents a turning point, and we are genuinely optimistic about the balance of the year."

"The performance of our SLS segment this quarter deserves particular recognition. SLS's gross margin expanded to 28.7% from 21.8% in Q1 2025 -- a nearly 700 basis point improvement -- driven by a more favorable customer mix and disciplined cost management. Combined with strong revenue momentum in our core Stran segment, where sales grew 11.9% to $23.4 million, total company gross profit increased 13.7% to $9.6 million, outpacing revenue growth and demonstrating the operating leverage we are building. We also continued to expand our client portfolio during the quarter, including a three-year contract extension with one of the world's premier nonprofit running organizations, a new multimillion-dollar agreement with a leading gaming company, and the addition of two Global 100 law firms. These wins reflect the breadth of our capabilities and the increasing demand for Stran's integrated marketing and branded merchandise solutions across a diverse range of industries."

"Looking ahead, we believe 2026 is shaping up to be a year of sustained, profitable growth for Stran. We are seeing our enterprise clients engage with us more deeply than ever -- not just for individual products or one-off campaigns, but across our full platform of promotional products, loyalty and incentive programs, e-commerce solutions, and fulfillment services. As clients adopt more of our capabilities, we become more embedded in their operations, which drives higher retention and more durable revenue. We also expect the operating leverage we demonstrated in Q1 to continue, as a growing revenue base is absorbed within our fixed cost structure. Backed by a strong balance sheet with $12.8 million in cash, cash equivalents, and investments as of March 31, 2026, and with both the Stran and SLS segments contributing meaningfully to profitability, we are confident in our strategy and excited about what lies ahead for the rest of 2026."

Financial Results for the First Quarter Ended March 31, 2026

   -- Total sales increased 8.9% to $31.2 million for the three months ended 
      March 31, 2026, from $28.7 million for the three months ended March 31, 
      2025. Sales by our Stran segment (which consists of the Company's legacy 
      business) increased 11.9% to $23.4 million for the three months ended 
      March 31, 2026 from $20.9 million for the three months ended March 31, 
      2025. Sales by the Company's Stran Loyalty Solutions, LLC ("SLS") segment 
      (which consists of the former Gander Group business) remained 
      approximately flat at $7.8 million for the three months ended March 31, 
      2026 compared to $7.8 million for the three months ended March 31, 2025. 
 
   -- Gross profit increased $1.1 million, or 13.7%, to $9.6 million for the 
      three months ended March 31, 2026 compared to the prior year period. 
      Gross profit margin increased to 30.9% for the three months ended March 
      31, 2026 from 29.6% in the prior year period. Gross profit for the Stran 
      segment increased to $7.4 million, with a gross margin of 31.6%, while 
      gross profit for the SLS segment increased to $2.2 million, with a gross 
      margin of 28.7%. 
 
   -- Total operating expenses decreased 0.2% to $9.0 million for the three 
      months ended March 31, 2026, from $9.0 million for the three months ended 
      March 31, 2025. As a percentage of sales, total operating expenses 
      decreased to 28.8% for the three months ended March 31, 2026, from 31.4% 
      for the three months ended March 31, 2025. 
 
   -- Net income was $0.7 million for the three months ended March 31, 2026, 
      compared to a net loss of $0.4 million for the three months ended March 
      31, 2025. 
 
   -- EBITDA was $1.0 million for the three months ended March 31, 2026, 
      compared to $(0.2) million in the prior year period, an improvement of 
      $1.2 million year-over-year. 

Conference Call

Management will host a conference call at 10:00 A.M. Eastern Time on Wednesday, May 13, 2026, to discuss the Company's financial results for the first quarter of 2026 ended March 31, 2026, as well as the Company's corporate progress and other developments.

The conference call will be available via telephone by dialing toll free 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and using entry code: 643227. A webcast of the call may be accessed at https://www.webcaster5.com/Webcast/Page/2855/53974 or on the Investor Relations section of the Company's website: ir.stran.com/news-events/ir-calendar.

A webcast replay will be available on the Investor Relations section of the Company's website (ir.stran.com/news-events/ir-calendar) through May 13, 2027. A telephone replay of the call will be available approximately one hour following the call, through May 27, 2026, and can be accessed by dialing 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering conference ID: 53974.

About Stran

For over 30 years, Stran has grown to become a leader in the promotional products industry, specializing in complex marketing programs to help recognize the value of promotional products, branded merchandise, and loyalty incentive programs as a tool to drive awareness, build brands and impact sales. Stran is the chosen promotional programs manager of many Fortune 500 companies, across a variety of industries, to execute their promotional marketing, loyalty and incentive, sponsorship activation, recruitment, retention, and wellness campaigns. Stran provides world-class customer service and utilizes cutting-edge technology, including efficient ordering and logistics technology to provide order processing, warehousing and fulfillment functions. The Company's mission is to develop long-term relationships with its clients, enabling them to connect with both their customers and employees in order to build lasting brand loyalty. Additional information about the Company is available at: www.stran.com.

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements, other than statements of historical fact, contained in this press release are forward-looking statements. Forward-looking statements contained in this press release may be identified by the use of words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will" "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements in this press release include, but are not limited to, the Company's expectations that 2026 will be a year of sustained, profitable growth; the Company's belief that the operating leverage demonstrated in the first quarter of 2026 will continue as a growing revenue base is absorbed within its fixed cost structure; expectations regarding enterprise clients engaging more deeply across the Company's full platform of promotional products, loyalty and incentive programs, e-commerce solutions, and fulfillment services; expectations regarding higher client retention and more durable revenue; the Company's expectations regarding synergies from its acquired businesses, including the integration and performance of the former Gander Group business within its SLS segment; the Company's confidence in its strategy and outlook for the balance of 2026; and expectations regarding the Company's financial position, operating performance, market opportunity, and demand for its products and services. These forward-looking statements are based on the Company's current expectations and beliefs concerning future developments and their potential effects on the Company. There can be no assurance that future developments affecting the Company will be those that the Company has anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the Company's control) and other assumptions

(MORE TO FOLLOW) Dow Jones Newswires

May 12, 2026 16:46 ET (20:46 GMT)