Upgrade to SI Premium - Free Trial

Smith & Wesson Brands, Inc. Reports Fourth Quarter and Full Fiscal 2025 Financial Results

June 18, 2025 4:07 PM

- Q4 Net Sales of $140.8 Million

- Q4 Gross Margin of 28.8%; Non-GAAP Gross Margin of 29.2%

- Q4 EPS of $0.19/Share

Maryville, Tennessee--(Newsfile Corp. - June 18, 2025) - Smith & Wesson Brands, Inc. (NASDAQ: SWBI), a U.S.-based leader in firearm manufacturing and design, today announced financial results for the fourth quarter and full fiscal year 2025, ended April 30, 2025.

Fourth Quarter Fiscal 2025 Financial Highlights

Full Year Fiscal 2025 Financial Highlights

Mark Smith, President and Chief Executive Officer, commented, "Fourth quarter proved more difficult than we anticipated largely due to macro-economic and industry trends. While the combination of lower sales and production volumes, along with mix factors, pressured margins, we were able to partially offset the bottom-line impact through disciplined cost management and by leveraging our flexible manufacturing model. Looking at the overall firearms market, we continue to see consumers generally being cautious due to macro-economic factors pressuring discretionary spending. While new products and lower price point offerings are still performing well, overall conditions suggest headwinds will likely persist in the near term. Despite these challenges, we remain well positioned to succeed in this environment."

Deana McPherson, Executive Vice President and Chief Financial Officer, commented, "We believe that firearm market conditions have been negatively impacted by persistent inflation, high interest rates, and uncertainty caused by tariff concerns. That being said, the success of our new products has enabled us to maintain a leadership position in the categories of the firearm market in which we compete. We currently expect demand for firearms in fiscal 2026 to be similar to what we saw in fiscal 2025, remaining subject to economic headwinds such as inflation and the impact of tariff-related cost increases. Consistent with our capital allocation strategy, our board of directors has authorized a $0.13 per share quarterly dividend, which will be paid to stockholders of record on July 7, 2025 with payment to be made on July 21, 2025."

Conference Call and Webcast

The company will host a conference call and webcast on June 18, 2025 to discuss its fourth quarter and full fiscal 2025 financial and operational results. Speakers on the conference call will include Mark Smith, President and Chief Executive Officer, and Deana McPherson, Executive Vice President and Chief Financial Officer. The conference call may include forward-looking statements. The conference call and webcast will begin at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). Interested parties in North America are invited to participate by dialing 1-877-704-4453. Interested parties from outside North America are invited to participate by dialing 1-201-389-0920. Participants should dial in at least 10 minutes prior to the start of the call. A live and archived webcast of the event will be available on the company's website at www.smith-wesson.com under the Investor Relations section.

Reconciliation of U.S. GAAP to Non-GAAP Financial Measures

In this press release, certain non-GAAP financial measures, including "non-GAAP net income," "Adjusted EBITDAS," and "free cash flow" are presented. From time-to-time, we consider and use these supplemental measures of operating performance in order to provide the reader with an improved understanding of underlying performance trends. We believe it is useful for us and the reader to review, as applicable, both (1) GAAP measures that include (i) interest expense, (ii) income tax expense, (iii) depreciation and amortization, (iv) stock-based compensation expense, (v) spin related stock-based compensation, (vi) an accrued legal settlement, (vii) a gain on sale of certain real estate, (viii) a gain on sale of intangible assets, (ix) Relocation expense, and (x) the tax effect of non-GAAP adjustments; and (2) the non-GAAP measures that exclude such information. We present these non-GAAP measures because we consider them an important supplemental measure of our performance. Our definition of these adjusted financial measures may differ from similarly named measures used by others. We believe these measures facilitate operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would not otherwise be apparent on a GAAP basis. These non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for our GAAP measures. The principal limitations of these measures are that they do not reflect our actual expenses and may thus have the effect of inflating its financial measures on a GAAP basis.

About Smith & Wesson Brands, Inc.

Smith & Wesson Brands, Inc. (NASDAQ Global Select: SWBI) is a U.S.-based leader in firearm manufacturing and design, delivering a broad portfolio of quality handgun, long gun, and suppressor products to the global consumer and professional markets under the iconic Smith & Wesson� and Gemtech� brands. The company also provides forging and machining services to third parties. For more information call (800) 331-0852 or visit www.smith-wesson.com.

Safe Harbor Statement

Certain statements contained in this press release may be deemed to be forward-looking statements under federal securities laws, and we intend that such forward-looking statements be subject to the safe-harbor created thereby. Such forward-looking statements include, among others, that (i) with respect to the overall firearms market, we continue to see consumers generally being cautious due to macro-economic factors pressuring discretionary spending; (ii) overall conditions suggest headwinds will likely persist in the near term; (iii) we remain well positioned to succeed in this environment; and (iv) we currently expect demand for firearms in fiscal 2026 to be similar to what we saw in fiscal 2025, remaining subject to economic headwinds such as inflation and the impact of tariff-related cost increases. We caution that these statements are qualified by important risks, uncertainties, and other factors that could cause actual results to differ materially from those reflected by such forward-looking statements. Such factors include, among others, economic, social, political, legislative, and regulatory factors; the impact of tariffs; the potential for increased regulation of firearms and firearm-related products; actions of social activists that could have an adverse effect on our business; the impact of lawsuits; the demand for our products; the state of the U.S. economy in general and the firearm industry in particular; general economic conditions and consumer spending patterns; our competitive environment; the supply, availability and costs of raw materials and components; our anticipated growth and growth opportunities; our strategies; our ability to maintain and enhance brand recognition and reputation; our ability to effectively manage and execute the Relocation; our ability to introduce new products; the success of new products; the potential for cancellation of orders from our backlog; and other risks detailed from time to time in our reports filed with the Securities and Exchange Commission, including our Annual Report on Form 10-K for the fiscal year ended April 30, 2025.

Contact:
[email protected]
(413) 747-3448

SMITH & WESSON BRANDS, INC AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)



As of:


April 30, 2025
April 30, 2024


(In thousands, except par value and share data)
ASSETS
Current assets:



Cash and cash equivalents$
 25,231
$
60,839
Accounts receivable, net of allowances for credit losses of $5 on




April 30, 2025 and $0 on April 30, 202455,868
59,071
Inventories
 189,840
160,500
Prepaid expenses and other current assets
 6,260
4,973
Income tax receivable
66
1,948
Total current assets
 277,265
287,331
Property, plant, and equipment, net of accumulated depreciation and




amortization of $368,811 on April 30, 2025 and $352,615 on April 30, 2024242,648
252,633
Intangibles, net
 2,409
2,598
Goodwill
 19,024
19,024
Deferred income taxes
 10,260
7,228
Other assets
 8,006
8,614
Total assets$
 559,612
$ 577,428
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:



Accounts payable$
 26,887
$
41,831
Accrued expenses and deferred revenue
 24,678
24,489
Accrued payroll and incentives
 9,060
17,147
Accrued profit sharing
 4,636
9,098
Accrued warranty
 1,379
1,813
Total current liabilities
 66,640
94,378
Notes and loans payable
 79,096
39,880
Finance lease payable, net of current portion
 33,703
35,404
Other non-current liabilities
 7,719
7,852
Total liabilities
 187,158
177,514
Commitments and contingencies



Stockholders' equity:



Preferred stock, $0.001 par value, 20,000,000 shares authorized, no shares




issued or outstanding

Common stock, $0.001 par value, 100,000,000 shares authorized,




75,789,455 issued and 44,111,461 shares outstanding on April 30,
2025 and 75,395,490 shares issued and 45,561,569 shares
outstanding on April 30, 2024		76
75
Additional paid-in capital
298,075
289,994
Retained earnings
 532,615
542,414
Accumulated other comprehensive income

 73
Treasury stock, at cost (31,677,994 shares on April 30, 2025 and




29,833,921 shares on April 30, 2024)(458,312)
(432,642)
Total stockholders' equity
 372,454
399,914
Total liabilities and stockholders' equity$
 559,612
$
577,428

SMITH & WESSON BRANDS, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)


For the Three Months Ended April 30,
For the Year Ended April 30,

2025
2024
2025
2024

(In thousands, except per share data)
Net sales$
140,762
$
159,148
$
474,661
$
535,833
Cost of sales 100,217
102,646
347,478
377,740
Gross profit 40,545
56,502
127,183
158,093
Operating expenses:






Research and development 1,962
1,774
9,567
7,258
Selling, marketing, and distribution 11,473
9,473
41,314
40,611
General and administrative 13,974
18,258
54,933
63,134
Gain on sale/disposition of assets, net 6
(10)
 (2,515)
 (11)
Total operating expenses 27,415
29,495
103,299
110,992
Operating income 13,130
27,007
23,884
47,101
Other (expense)/income, net:






Other (expense)/income, net (6)
 6,496
(17)
 6,672
Interest expense, net (748)
 (607)
 (4,622)
 (2,055)
Total other (expense)/income, net (754)
 5,889
(4,639)
 4,617
Income before income taxes 12,376
32,896
19,245
51,718
Income tax expense 3,742
5,561
5,820
10,356
Net income$ 8,634
$
27,335
$ 13,425
$
41,362
Net income per share:






Basic - net income$
0.20
$
0.60
$
0.30
$
0.90
Diluted - net income$
0.19
$ 0.59
$
0.30
$ 0.89
Weighted average number of common shares outstanding:






Basic 44,040
45,544
44,484
45,813
Diluted 44,508
46,043
44,932
46,248

SMITH & WESSON BRANDS, INC AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)



For the Year Ended April 30,


2025
2024


(In thousands)
Cash flows from operating activities:



Net income
$
13,425
$
41,362
Adjustments to reconcile net income to net cash (used in)/provided by




operating activities:
Depreciation and amortization
31,845
32,558
Gain on sale/disposition of assets
(2,515)
(5,595)
Recoveries on notes and accounts receivable
 -
(23)
Deferred income taxes
 (3,032)
 856
Stock-based compensation expense
7,609
5,683
Non-cash sublease income
(1,724)

Other, net
(73)

Changes in operating assets and liabilities:



Accounts receivable
3,203
(3,896)
Inventories
(29,340)
16,618
Prepaid expenses and other current assets
(1,287)
(57)
Income taxes
1,882
(2,601)
Accounts payable
(14,771)
18,341
Accrued payroll and incentives
(8,087)
(1,418)
Accrued profit sharing
(4,462)
895
Accrued expenses and deferred revenue
(268)
3,996
Accrued warranty
(434)
142
Other assets
938
(267)
Other non-current liabilities
(132)
145
Net cash (used in)/provided by operating activities
(7,223)
106,739
Cash flows from investing activities:



Payments to acquire patents and software
 (187)
 (186)
Proceeds from sale of property and equipment
 2,619
2,955
Proceeds from sale of intangible assets

 6,500
Payments to acquire property and equipment
 (21,605)
 (90,759)
Net cash used in investing activities
 (19,173)
 (81,490)
Cash flows from financing activities:



Proceeds from loans and notes payable
 75,000
50,000
Cash paid for debt issuance costs
 (941)

Payments on finance lease obligation
 (179)
 (1,378)
Payments on notes and loans payable
 (35,000)
 (35,000)
Payments to acquire treasury stock
 (25,468)
 (10,213)
Dividend distribution
 (23,096)
 (22,020)
Proceeds to acquire common stock from employee stock purchase plan
 1,598
1,484
Payment of employee withholding tax related to restricted stock units
 (1,126)
 (839)
Net cash (used in)/provided by financing activities
 (9,212)
 (17,966)
Net (decrease)/increase in cash and cash equivalents
 (35,608)
 7,283
Cash and cash equivalents, beginning of period
 60,839
53,556
Cash and cash equivalents, end of period
$ 25,231
$
60,839
Supplemental disclosure of cash flow information



Cash paid for:



Interest, net of amounts capitalized
$
5,193
$
4,745
Income taxes
$
7,288
$
12,662

SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON-GAAP FINANCIAL MEASURES
(Dollars in thousands, except per share data)
(Unaudited)



For the Three Months Ended

For the Twelve Months Ended


April 30, 2025

April 30, 2024

April 30, 2025

April 30, 2024


$

% of Sales

$

% of Sales

$

% of Sales

$

% of Sales
GAAP net sales$140,762


$159,148


$474,661


$535,833

Relocation








(4,340)




Non-GAAP net sales$140,762


$159,148


$470,321


$535,833
















GAAP gross profit$40,545

28.8%
$56,502

35.5%
$127,183

26.8%
$158,093

29.5%
Relocation expenses
516



162



3,346



2,115

Settlement








70



3,200

Non-GAAP gross profit$41,061

29.2%
$56,664

35.6%
$130,599

27.8%
$163,408

30.5%















GAAP operating expenses$27,415

19.5%
$29,495

18.5%
$103,299

21.8%
$110,992

20.7%
Gain on sale of asset








2,257





Spin related stock-based compensation




(3)






(13)
Relocation expenses
(26)


155



(612)


(4,938)
Non-GAAP operating expenses$27,389

19.5%
$29,647

18.6%
$104,944

22.3%
$106,041

19.8%















GAAP operating income$13,130

9.3%
$27,007

17.0%
$23,884

5.0%
$47,101

8.8%
Gain on sale of asset








(2,257)




Settlement








70



3,200

Spin related stock-based compensation




3







13

Relocation expenses
542



7



3,958



7,053

Non-GAAP operating income$13,672

9.7%
$27,017

17.0%
$25,655

5.5%
$57,367

10.7%















GAAP net income$8,634

6.1%
$27,335

17.2%
$13,425

2.8%
$41,362

7.7%
Gain on sale of asset








(2,257)




Settlement








70



3,200

Sale of intangible assets




(6,500)






(6,500)
Spin related stock-based compensation




3







13

Relocation expenses
542



7



3,958



7,053

Tax effect of non-GAAP adjustments
(169)


1,285



(551)


(746)
Non-GAAP net income$9,007

6.4%
$22,130

13.9%
$14,645

3.1%
$44,382

8.3%















GAAP net income per share - diluted$0.19


$0.59


$0.30


$0.89

Gain on sale of asset








(0.05)




Settlement












0.07

Sale of intangible assets




(0.14)






(0.14)
Spin related stock-based compensation














Relocation expenses
0.01







0.09



0.15

Tax effect of non-GAAP adjustments




0.03



(0.01)


(0.02)
Non-GAAP net income per share - diluted$0.20


$0.48


$0.33


$0.96(a)































(a) Non-GAAP net income per share does not
foot due to rounding.















SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO NON-GAAP ADJUSTED EBITDAS
(In thousands)
(Unaudited)


For the Three Months Ended
For the Twelve Months Ended

April 30, 2025
April 30, 2024
April 30, 2025
April 30, 2024








GAAP net income
$ 8,634
$
27,335
$ 13,425
$41,362
Interest expense
 1,408
1,434
7,289
4,838
Income tax expense
 3,742
5,561
5,820
10,356
Depreciation and amortization
 7,934
8,324
31,688
32,469
Stock-based compensation expense
 1,885
1,419
7,609
5,683
Settlement


 70
3,200
Gain on sale of asset


 (2,257)

Gain on sale of intangible assets

 (6,500)

 (6,500)
Relocation expense
 538
7
3,681
5,193
Non-GAAP Adjusted EBITDAS
$24,141
$37,580
$ 67,325
$ 96,601








Non-GAAP Adjusted EBITDAS Margin
17.2%
23.6%
14.3%
18.0%

SMITH & WESSON BRANDS, INC. AND SUBSIDIARIES
RECONCILIATION OF NET CASH (USED IN) / PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
(In thousands)
(Unaudited)




For the Three Months Ended

For the Twelve Months Ended



April 30, 2025

April 30, 2024

April 30, 2025

April 30, 2024
Net cash provided by/(used in) operating activities
$40,828
$ 43,616
$ (7,223)
$ 106,739
Payments to acquire property and equipment

(7,291)

(5,571)

(21,605)

(90,759)
Free cash flow
$33,537
$38,045
$(28,828)
$15,980

Immaterial Correction of an Error

During the fourth quarter of fiscal 2025, we identified an immaterial error related to our accrual for certain legal expenses, resulting in an overstatement of general and administrative expenses in 2024 and 2025. In accordance with Staff Accounting Bulletin ("SAB") No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, we evaluated the errors and determined that the related impact was not material to results of operations, financial position, or cash flows for any historical annual or interim period. Prior year amounts have been adjusted to reflect the immaterial correction, which (i) overstated accrued expenses and deferred revenue and general and administrative expenses by $2.3 million and (ii) understated income tax expense and overstated income tax receivable each by $548,000, in each case as of April 30, 2024 and for the year then ended.�

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/255931

Categories

Newsfile Press Releases

Next Articles