SWAG

Image source: The Motley Fool. Wednesday, Aug. 12, 2026 at 10:00 a.m. ET Chief Executive Officer - Andrew Shape Chief Financial Officer - David Browner Investor Relations - Alexandra Schilt Operator: Good morning, everyone, and welcome to Stran & Company's Second Quarter 2026 Earnings Call. [Operator Instructions] Please note, this conference is being recorded. I will now turn the conference over to your host, Alexandra Schilt, Investor Relations at Crescendo Communications. Over to you. Alexandra Schilt: Good morning, and thank you for joining Stran & Company's 2026 Second Quarter Financial Results and Business Update Conference Call. With us today are Andy Shape, Chief Executive Officer; and David Browner, Chief Financial Officer. Yesterday, we issued a press release detailing our results, which is available on our website at ir.stran.com. Before we begin, please note that today's remarks may include forward-looking statements that involve risks and uncertainties as described in our SEC filings. With that, I'll turn the call over to Andy Shape. Please go ahead, Andy. Andrew Shape: Thank you, Ally. Good morning, everyone, and thank you for joining us today. The second quarter was a strong period for Stran. We continue to execute on the strategy we've been building over the past several years, and the results are showing up in our numbers. We are deepening relationships with large enterprise customers, winning new business across attractive verticals, strengthening our position in casino and gaming, and continuing to invest in technology and the infrastructure necessary to support a larger and more scalable organization. Our opportunity extends well beyond traditional promotional products. Our goal is to become an increasingly important strategic partner to our customers, helping them manage complex branded merchandise, loyalty, incentive, e-commerce and fulfillment programs through an integrated platform. During the quarter, we made progress against that vision while navigating the normal variability that comes with the timing, size and mix of large customer programs. That progress is increasingly visible in our financial performance, beginning with continued top line revenue growth in the second quarter. For the quarter, revenue increased 2.4% to $33.4 million, compared with $32.6 million in the prior year period. Gross profit increased to $10 million with a gross margin of 30%. We remain profitable generating operating income of $86,000 and net income of $309,000. Our core Stran business continued to be the primary driver of top line growth, with that segment revenue increasing 6.9% year-over-year, reflecting higher spending from existing clients as well as new customer business. We were also encouraged by what we saw at Stran Loyalty Solutions, our business segment consisting of the Gander Group business. While SLS revenue declined year-over-year, the casino and gaming business can experience variability between quarters based on the timing and size of individual customer programs and orders. More importantly, the profitability of the business improved meaningfully during the quarter. SLS generated a higher gross profit, expanded gross margin to 24.3% from 21% and nearly doubled segment operating income year-over-year. When we step back and look at the first 6 months of 2026, the underlying progress becomes even more clear. The first half represents the strongest 6-month period in Stran's history as a public company. First half revenue increased 5.4% to $64.6 million; gross profit increased 7.2% to $19.7 million; and gross margin improved to 30.4%. Most importantly, we generated $731,000 of operating income, compared with an operating loss of $140,000 last year. The net income increased to $1.1 million from $250,000. EBITDA for the first half more than doubled to $1.6 million from $728,000 a year ago. Taken together, the second quarter and first half results demonstrate continued progress across areas that matter most to us: growing our core business, improving the profitability of SLS, strengthening the earnings profile of the company, and investing in the platform to support our next stage of growth. Beyond the financial results, we had a productive quarter on the business development front. We continue to win new enterprise relationships, expand into attractive verticals and build the kind of long-term programmatic business that drives durable revenue. In May, we announced multiple new contract wins within the customer -- within the consumer retail market, including a 3-year uniform program with a leading U.S. grocery retailer, that is expected to generate 6 figures in annual revenue, along with additional uniform and promotional product orders from regional grocery operations. These wins demonstrate the value of our broader approach. Establishing an initial relationship through a uniform or promotional program gives us an opportunity to execute, deepen that relationship, and potentially expand into additional branded merchandise fulfillment and marketing programs over time. That is central to our land-and-expand strategy: win the relationship, deliver at a high level and then increase the breadth of service that we provide as the relationship develops. We continued that momentum in June when we announced a new contract with a leading U.S. provider of construction material and systems serving commercial and residential markets. That engagement is expected to generate nearly 7 figures in annual revenue and includes branded merchandise, promotional campaigns and end-to-end program management. This win is significant not only for its expected initial contribution, but because it demonstrates our ability to apply the Stran platform across new industries and large enterprise organizations. As with many of our relationships, our objective is to establish a strong initial program and then identify opportunities to broaden the relationship over time. We also continue to strengthen our position in the casino and gaming market, which remains an important area of opportunity for Stran. Toward the end of the quarter, we announced the addition of an industry veteran, Kevin Lewis, as a contracted sales representative. Kevin brings extensive experience and relationships across the casino and gaming industry along with an existing customer portfolio. This is particularly compelling when viewed alongside the improving financial performance of Stran Loyalty Solutions. As we discussed earlier, SLS delivered significantly stronger margins and profitability during both second quarter and first half of the year. Our objective is now to build on that stronger operating foundation by expanding the business we can bring through the platform. We continue to see favorable trends across the promotional products and loyalty industries as companies place greater emphasis on customer engagement, employee retention and brand activation. At the same time, larger organizations increasingly want integrated partners that can combine technology, creative execution, fulfillment and program management at scale. That shift plays directly to Stran's strengths and is reflected in our continued advancements within the industry. Most recently, Stran moved up 2 positions to #21 on the 2026 ASI Counselor Top 40 distributor list, a key industry benchmark based on verified North American promotional products revenue. That recognition reflects the scale we have built, the strength of our enterprise relationships, and our ability to continue gaining share in a large and fragmented market. Acquisitions also remain an important part of our growth strategy, but we will continue to be disciplined. We are focused on opportunities that expand our capabilities, add attractive customer relationships, strengthen key verticals and create meaningful long-term value. Our balance sheet gives us the flexibility to be patient and pursue the right opportunities at the right time. As we enter the second half of the year, we are operating from a stronger foundation with a growing core business, improving profitability at SLS, new enterprise wins and an expanding pipeline. Our focus is on converting that momentum into sustainable revenue growth, stronger profitability and increasing cash generation. Capital allocation remains part of that strategy. During the second quarter, we resumed our share repurchase program, purchasing and retiring approximately 131,000 shares for approximately $272,000. Since program inception, the company has repurchased a total of approximately 2.3 million shares for approximately $4.2 million, at a weighted average of $1.81 per share. We will continue to balance repurchase with investments in the organic growth and strategic acquisitions, always with the objective of creating long-term shareholder value. I also want to highlight that our public warrants, which have an exercise price of approximately $4.81 per share, are scheduled to expire in the fourth quarter of 2026. As the warrants expire, we expect the overhang on our stock to be removed, which should simplify our capital structure and present a cleaner equity story for current and prospective investors. Stran has multiple paths to grow. Our focus is clear: execute with discipline, continue improving the economics of the business and translate that business into greater value for our shareholders. I'll now turn the call over to our CFO, David Browner, for a more detailed review of our financial results. David, please go ahead. David Browner: Thank you, Andy, and good morning, everyone. I'm pleased to provide a detailed overview of our financial performance for the 3 and 6 months ended June 30, 2026. For our 3 months results, total sales increased 2.4% to $33.4 million for the 3 months ended June 30, 2026, from $32.6 million for the prior year period. Sales by our Stran segment increased to $23.3 million for the 3 months ended June 30, 2026, from $21.8 million for the prior year period. Sales by our SLS segment decreased to $10.1 million for the 3 months ended June 30, 2026, from $10.8 million for the prior year period. Total gross profit increased 1.6% to $10 million or 30% of sales for the 3 months ended June 30, 2026, from $9.9 million or 30.3% of sales for the prior year period. The increase in the dollar amount of total gross profit was primarily attributable to customer mix and effective cost management. Gross profit for our Stran segment remained consistent with prior year period, of $7.6 million for the 3 months ended June 30, 2026 and the prior year. With the Stran segment, the slight decrease in the dollar amount of gross profit was due to the customer mix. Gross profit for our SLS segment increased to $2.5 million for the 3 months ended June 30, 2026, from $2.6 million (sic) [ $2.3 million ] for the prior year period. For the SLS segment, the increase in the dollar amount of gross profit was primarily attributable to an improved customer mix, effective cost management and lower tariffs. Total operating expenses increased 4.9% to $9.9 million for the 3 months ended June 30, 2026, from $9.5 million for the prior year period. As a percentage of sales, total operating expenses increased to 29.8% for the 3 months ended June 30, 2026, from 29.1% for the prior year. Operating expenses of our Stran segment increased to $6.9 million for the 3 months ended June 30, 2026, from $6.5 million for the prior year period. As a percentage of sales, operating expenses of our Stran segment decreased to 29.8% for the 3 months ended June 30, 2026, from 30% for the prior year period. For the Stran segment, the increase in the dollar amount of operating expenses was primarily due to higher sales-related costs and our investment in the STRAN Digital Solutions to provide enhanced functionality and offerings to scale client programs. Operating expenses for our SLS segment decreased to $2 million for the 3 months ended June 30, 2026, from $2.1 million for the prior year period. As a percentage of sales, operating expenses of our SLS segment increased to 19.9% for the 3 months ended June 30, 2026, from 19% for the prior year period. For the SLS segment, the decrease in the dollar amount of operating expense was primarily attributable to a small reduction in headcount and lower sales-related costs. Operating expenses for other, consisting of unallocated corporate costs, including salaries of corporate officers, audit-related fees, Board of Directors compensation and other stock-related charges, such costs increased by $106,000 to $995,000 for the 3 months ended June 30, 2026, from $889,000 for the prior year period. The increase was primarily due to higher legal and accounting expenses. Net income for the 3 months ended June 30, 2026 was $309,000, compared to a net income of $643,000 for the prior year period. This change was primarily due to an increase in gross profit (sic) [ operating expenses ]. EBITDA for the 3 months ended June 30, 2026 was $551,000, compared to an EBITDA of $929,000 for the prior year period. For 6 months results, total sales increased 5.4% to $64.6 million for the 6 months ended June 30, 2026, from $61.3 million for the prior year period. Sales of our Stran segment increased to $46.7 million for the 6 months ended June 30, 2026, from $42.7 million for the prior year period. With the Stran segment, the increase in sales was primarily due to higher spending from existing clients as well as business from new customers. Sales by our SLS segment decreased to $17.9 million for the 6 months ended June 30, 2026, from $18.6 million for the prior year period. For the SLS segment, the decrease in sales was primarily attributable to a lower spend from existing clients. Total gross profit increased 7.2% to $19.7 million or 30.4% of sales for the 6 months ended June 30, 2026, from $18.4 million or 30% of sales for the prior year period. The increase in the dollar amount of total gross profit was primarily attributable to the customer mix and effective cost management. Gross profit of the Stran segment increased to $15 million for the 6 months ended June 30, 2026, from $14.4 million for the prior year period. For the Stran segment, the increase in the dollar amount of gross profit was due to an increase in sales of $4 million, which was partially offset by an increase of cost of sales of $3.4 million. Gross profit of the SLS segment increased to $4.7 million for the 6 months ended June 30, 2026, from $4 million for the prior year period. For the SLS segment, the increase in the dollar amount of gross profit was primarily attributable to an improved customer mix and effective cost management. Total operating expenses increased 2.4% to $18.9 million for the 6 months ended June 30, 2026, from $18.5 million for the prior year period. As a percentage of sales, total operating expenses decreased to 29.3% for the 6 months ended June 30, 2026, from 30.2% for the prior year period. Operating expenses for the Stran segment increased to $13.2 million for the 6 months ended June 30, 2026, from $12.2 million for the prior year period. As a percentage of sales, operating expenses of our Stran segment decreased to 28.2% for the 6 months ended June 30, 2026, from 28.5% for the prior year. For the Stran segment, the increase in the dollar amount of operating expenses was primarily due to an increased headcount and employee-related costs, higher sales-related costs and our investment in STRAN Digital Solutions to provide enhanced functionality and offering to scale client programs. Operating expenses of our SLS segment decreased to $3.7 million for the 6 months ended June 30, 2026, from $4.2 million for the prior year period. As a percentage of sales, operating expenses of our SLS segment decreased to 20.8% for the 6 months ended June 30, 2026, from 22.6% for the prior year period. For the SLS segment, the decrease in the dollar amount of operating expenses was primarily attributable to a smaller -- or a small reduction in headcount and lower sales-related costs. Operating expenses for the other -- for other, consist of unallocated corporate costs, including salaries for corporate officers, audit-related fees, Board of Director compensation and other stock-related charges, such charges decreased by $78,000 to $2.05 million for the 6 months ended June 30, 2026, from $2.13 million for the prior year period. The decrease was primarily due to lower legal and accounting expenses. Net income for the 6 months ended June 30, 2026 was $1.1 million, compared to a net income of $250,000 for the prior year period. This change was primarily due to an increase in gross profit. EBITDA for the 6 months ended June 30, 2026 was $1.6 million, compared to an EBITDA of $728,000 for the prior year period. As of June 30, 2026, we had $12.6 million in cash and cash equivalents and investments. Now I'll turn the call back to Andy. Andrew Shape: Thank you, David. At this time, we'll open up to questions. Operator, please open the call for questions. Operator: [Operator Instructions] Our first question is coming from Greg Womack, who's a private investor. Greg Womack: Congratulations on the good quarter. I was hoping we can get some more details on the primary drivers of revenue growth in the quarter. Was it between pricing new logos or deeper penetration at existing programs? Andrew Shape: It was really a combination of all of those things. I mean that is our growth strategy, is to try to -- we've got a great roster of clients already. We have over 30 Fortune 500 customers. So we try to expand and go deeper with them. It was a combination of that as well as some new business that we've also gotten through the addition of some additional sales reps, some new business development efforts and some new clients. So really, that's just a combination of getting more from our existing client base and finding new clients, which is what we continue to do going forward as well. Greg Womack: Awesome. Second question too, I've seen that one of your goals last year was to improve the margin at the SLS segment. It looks like you've done that. So you had, I think, 28% and then a slight step-back to 24% this quarter. Which of those do you think is closer to the long-run rate of that segment? Do you think there's more improvement that can be had? Andrew Shape: Probably right in the middle of the 2 of them is really where we're looking, probably in that mid to high 20s, just because we -- it's a very competitive market, it's a little bit more competitive. Our orders are a little bit larger in that segment, so we have to be a little bit more tighter on our prices. But price isn't always the driving factor. Quality, value that we deliver for those clients and what we deliver to them is much more relevant to them than pricing alone. So I think we can get it closer to that 28%, but probably in the 26% is probably more realistic, is what we're looking at. Operator: [Operator Instructions] We've got a question in from Edward Reilly of Minot Light. Edward Reilly: Just one for me. With the increase in G&A here sequentially and year-over-year, it seems like you're really leaning into STRAN Digital Solutions a bit more. What's giving you more confidence to invest more money and time into this platform? Andrew Shape: Yes. So it's a -- for us, we're investing that's somewhat of a low-risk, high-reward opportunity. We're investing into it, but not significantly. Although we are investing into it, we're not investing 7 figures into it. We see that offers much more stickiness for that, for our customers, that we're offering them an easier way to use our platform to accomplish more services that we provide to them, which makes it easier to do business with us. That's really, at the end of the day, what our technology offers is making it easier for them to do more job functions or more service functions for them, whether that's additional print, additional loyalty or additional services that we can provide to them. So we are leaning into that from a sales and marketing standpoint, but not necessarily from a technology standpoint. We've established and built out the platform fairly cost effectively, and now we're seeing some results from a few select customers, existing customers. And then we're rolling it out now also to try to attract additional new customers as well. So we're leaning into it, but not -- we're being conservative with the amount that we're investing into it because we want to really make sure that we see results of that, not go out and try to spend more than we're making. So we're trying to have it be, in the beginning, cost-neutral, and then eventually very profitable over time. So hopefully, that answers your question. But we're still very excited about it, but we're just being very conservative in the investment and the time that we put into it since we want to also make sure that we don't cannibalize our core business by concentrating too much on that. So it's a fine balance that we're doing, but I'm happy with where we're going with it and I'm excited about the future of that. Operator: Well, we appear to have reached the end of our question-and-answer session. I will now turn the call back over to Andy for any closing comments. Andrew Shape: Yes. Thank you, everyone, for the questions. And thank you, operator, and thanks to everyone else for joining us today. Our second quarter and first half results demonstrate continued progress we're making across the business. Our Stran segment continues to grow, SLS is delivering stronger profitability, and we're expanding our enterprise relationships across several attractive markets. As we move through the second half of the year, our priorities remain pretty clear: continue to drive profitable growth, deepen customer relationships, convert our pipeline into new business and remain disciplined in how we invest and allocate our capital. The platform we have built gives us multiple avenues to create value as we continue to scale. We are confident in the direction of the business and excited about the opportunities ahead. I want to thank our employees for their continued dedication, our customers for their trust and partnership, and our shareholders for their ongoing support. We look forward to building on this progress and keeping you updated in the quarters ahead. That concludes the call, and thank you, everybody. Operator: Thank you very much. This does conclude today's conference call. You may disconnect your phone lines at this time, and have a wonderful day. We thank you for your participation. Before you buy stock in Stran &, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Stran & wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,970!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,381,040!* Now, it’s worth noting Stock Advisor’s total average return is 969% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 18, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Stran (SWAG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Shares of Stran & Company, Inc. SWAG have declined 6.9% since reporting second-quarter 2026 results, underperforming the S&P 500 index’s 0.2% return. Over the past month, the stock has fallen 9.5%, while the S&P 500 has advanced 4.1%. For the three months ended June 30, revenues rose 2.4% year over year to $33.36 million from $32.58 million. Earnings per share fell 33.3% to 2 cents from 3 cents in the prior year. Net income dropped 51.9% to $309,000 from $643,000. Gross profit increased 1.6% to $10.02 million from $9.87 million, while the gross margin narrowed to 30% from 30.3%. Operating income declined 78.2% to $86,000 from $395,000, and EBITDA fell 40.7% to $551,000 from $929,000. Stran & Company, Inc. price-consensus-eps-surprise-chart | Stran & Company, Inc. Quote The core Stran segment drove growth, with sales increasing 6.9% to $23.3 million from $21.8 million in the prior-year quarter. SLS sales decreased to $10.1 million from $10.8 million, but segment gross profit rose 7.8% to $2.5 million. Its gross margin expanded 330 basis points to 24.3%, and operating income nearly doubled to $443,000. Stran’s gross profit was $7.6 million, with a 32.5% margin. As of June 30, the company held $12.599 million in cash, cash equivalents and investments. For the first six months of 2026, the operating cash flow increased to $1.56 million from $534,000, while revenues grew 5.4% year over year to $64.61 million. Gross profit rose 7.2% to $19.67 million, and the margin increased to 30.4% from 30%. Net income climbed to $1.05 million from $250,000, while EBITDA skyrocketed approximately 115% to $1.57 million from $728,000. Operating expenses fell to 29.3% of sales from 30.2%. CEO Andrew Shape called the first half of 2026 the strongest six months in Stran’s history as a public company. He said that growth reflected deeper engagement with existing large enterprise clients and customer wins. The company serves more than 2,000 active clients, including above 30 Fortune 500 companies, and aims to use integrated branded merchandise, loyalty, e-commerce and fulfillment capabilities to expand relationships. Shape said that improving SLS profitability supports growth in casino and gaming. He viewed a mid-to-high-20% long-term SLS gross margin as possible, with about 26% more realistic. Quarterly revenues reflected growth at Stran offset by lower SLS sales. Management linked Stran’s gains to increased spending by existing clients and new business, while SLS revenues were affected by the timing and size of customer programs. The improvement in total gross profit was attributed to customer mix and cost management. SLS additionally benefited from lower tariffs. Operating expenses increased 4.9% to $9.936 million from $9.474 million and reached 29.8% of sales versus 29.1%. Drivers included higher sales-related costs, investment in STRAN Digital Solutions, and increased corporate legal and accounting expenses. SLS operating costs declined because of a small headcount reduction and lower sales-related costs. Stran expects a new construction-solutions customer contract to generate nearly seven figures in annual revenues, while a three-year grocery-retailer uniform program is projected to generate six figures annually. Management said that the enterprise pipeline and balance sheet position the company well for the second half. Shape said that investment in STRAN Digital Solutions remains below seven figures, with an initial goal of cost neutrality and profitability over time. Public warrants with a $4.81 exercise price are scheduled to expire in the fourth quarter of 2026. Management said that acquisitions remain part of its strategy and would be pursued selectively. Stran resumed repurchases, buying and retiring approximately 131,000 shares for $272,000. Since the program began in May 2022, it has repurchased 2.3 million shares for $4.2 million at a weighted-average price of $1.81. Stran also added gaming-industry veteran Kevin Lewis as a contracted sales representative and moved to No. 21 on the 2026 ASI Counselor Top 40 Distributors list from No. 23 in 2025. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Stran & Company, Inc. (SWAG): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Revenue: $33.4 million in Q2 2026, up 2.4% year-over-year from $32.6 million. Gross Profit: $10 million, with a gross margin of 30%. Operating Income: $86,000 in Q2 2026. Net Income: $309,000 in Q2 2026, down from $643,000 in the prior year period. EBITDA: $551,000 in Q2 2026, down from $929,000 in the prior year period. Stran Segment Revenue: $23.3 million in Q2 2026, up 6.9% year-over-year from $21.8 million. SLS Segment Revenue: $10.1 million in Q2 2026, down from $10.8 million in the prior year period. SLS Segment Gross Margin: Expanded to 24.3% from 21% in Q2 2026. First Half Revenue: $64.6 million, up 5.4% year-over-year. First Half Gross Profit: $19.7 million, up 7.2% year-over-year, with gross margin improving to 30.4%. First Half Operating Income: $731,000, compared to an operating loss of $140,000 in the prior year period. First Half Net Income: $1.1 million, up from $250,000 in the prior year period. First Half EBITDA: $1.6 million, more than doubled from $728,000 a year ago. Cash and Investments: $12.6 million as of June 30, 2026. Share Repurchase: Repurchased and retired approximately 131,000 shares for approximately $272,000 in Q2 2026. Warning! GuruFocus has detected 4 Warning Signs with BOM:542141. Is SWAG fairly valued? Test your thesis with our free DCF calculator. Release Date: August 12, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Stran & Co Inc (NASDAQ:SWAG) reported a 2.4% increase in Q2 revenue to $33.4 million, with the core Stran segment growing 6.9% year-over-year. The company achieved its strongest first-half performance as a public company, with revenue up 5.4% to $64.6 million and operating income swinging to a positive $731,000 from a loss of $140,000. Stran Loyalty Solutions (SLS) significantly improved profitability, with gross margin expanding to 24.3% from 21% and segment operating income nearly doubling year-over-year. The company secured multiple new enterprise contracts, including a three-year uniform program with a leading US grocer and a nearly seven-figure annual contract with a top construction materials provider. Stran & Co Inc (NASDAQ:SWAG) strengthened its market position, moving up to #21 on the ASI Counselor TOP40 distributor list and adding an industry veteran to expand its casino and gaming business. The company resumed its share repurchase program, buying back approximately 131,000 shares, and expects the expiration of public warrants in Q4 2026 to remove an overhang on the stock. Stran & Co Inc (NASDAQ:SWAG)'s total Q2 revenue growth was modest at only 2.4%, and net income declined to $309,000 from $643,000 in the prior year period. The SLS segment experienced a year-over-year revenue decline in Q2, falling to $10.1 million from $10.8 million, due to variability in the timing and size of casino and gaming orders. Total operating expenses increased 4.9% in Q2, driven by higher sales-related costs and investments in Stran Digital Solutions, which pressured overall profitability. The company's gross margin slightly decreased to 30% in Q2 from 30.3% in the prior year period, reflecting a less favorable customer mix in the core Stran segment. Management indicated that SLS gross margin is likely to settle in the mid-to-high 20s, below the 28% achieved in the prior year, due to intense competition and larger order sizes. Unallocated corporate costs increased by $106,000 in Q2 due to higher legal and accounting expenses, adding to the overall cost burden. Q: What were the primary drivers of revenue growth in the quarterwas it pricing, new logos, or deeper penetration at existing programs?A: Andy Shape (President, CEO, and Co-Founder) explained that growth was a combination of all those factors. The strategy involves expanding deeper into their existing client base, which includes over 30 Fortune 500 customers, while also winning new business through additional sales representatives and business development efforts. This dual approach of deepening existing relationships and acquiring new clients is the ongoing growth strategy. Q: With the SLS segment's gross margin improving to 24.3% this quarter from 21% last year, is the long-run rate closer to the 28% seen previously or the 24% seen this quarter?A: Andy Shape (President, CEO, and Co-Founder) stated that the realistic long-term rate is likely in the mid-to-high 20s, with around 26% being a more accurate target. He noted that while the market is competitive and orders are larger, requiring tighter pricing, the quality and value delivered to clients are more important than price alone. He believes they can push closer to 28%, but 26% is a more realistic expectation. Q: With the increase in G&A expenses, it seems the company is leaning into Stran Digital Solutions. What is giving you more confidence to invest more money and time into this platform?A: Andy Shape (President, CEO, and Co-Founder) described the investment as a "low risk, high reward" opportunity, noting they are not investing seven figures into it. The platform increases customer stickiness by making it easier for clients to use their services. They are leaning into it from a sales and marketing standpoint, having already built the platform cost-effectively. The approach is conservative, aiming to keep it cost-neutral initially and profitable over time, while ensuring it does not cannibalize the core business. Q: Can you provide more detail on the new contract wins announced during the quarter and their expected contributions?A: Andy Shape (President, CEO, and Co-Founder) highlighted multiple new enterprise relationships, including a three-year uniform program with a leading U.S. grocer expected to generate six figures in annual revenue, and a contract with a leading U.S. provider of construction materials expected to generate nearly seven figures in annual revenue. These wins demonstrate the "land and expand" strategy, where initial programs lead to broader relationships over time. Q: How is the company positioning itself in the casino and gaming market, and what is the significance of the recent addition of Kevin Lewis?A: Andy Shape (President, CEO, and Co-Founder) emphasized that the casino and gaming market remains an important opportunity. The addition of Kevin Lewis, an industry veteran with extensive experience and an existing customer portfolio, is compelling when viewed alongside the improving financial performance of Stran Loyalty Solutions. The objective is to build on the stronger operating foundation and expand the business brought through the platform. Q: What is the company's capital allocation strategy, particularly regarding share repurchases and acquisitions?A: Andy Shape (President, CEO, and Co-Founder) stated that acquisitions remain an important part of the growth strategy, but they will continue to be disciplined, focusing on opportunities that expand capabilities, add customer relationships, and strengthen key verticals. During the second quarter, they resumed the share repurchase program, buying approximately 131,000 shares for $272,000. Since inception, they have repurchased 2.3 million shares for $4.2 million at a weighted average of $1.81 per share. Q: Can you elaborate on the expected impact of the public warrants expiring in the fourth quarter of 2026?A: Andy Shape (President, CEO, and Co-Founder) noted that the public warrants, with an exercise price of approximately $4.81 per share, are scheduled to expire in Q4 2026. As they expire, the overhang on the stock should be removed, simplifying the capital structure and presenting a cleaner equity story for current and prospective investors. Q: What were the key drivers behind the improvement in SLS segment profitability during the quarter?A: David Browner (Chief Financial Officer) attributed the improvement in SLS gross profit to an improved customer mix, effective cost management, and lower tariffs. Operating expenses also decreased due to a small reduction in headcount and lower sales-related costs, contributing to the segment's nearly doubled operating income year-over-year. Q: How did the company's overall operating expenses trend in the first half of 2026, and what were the main drivers?A: David Browner (Chief Financial Officer) reported that total operating expenses increased 2.4% to $18.9 million for the six months ended June 30, 2026, but decreased as a percentage of sales to 29.3% from 30.2%. The increase in dollar terms was primarily due to increased headcount, higher sales-related costs, and investments in Stran Digital Solutions, partially offset by lower legal and accounting expenses. Q: What is the company's outlook for the second half of the year, and what are the key priorities?A: Andy Shape (President, CEO, and Co-Founder) stated that the company is operating from a stronger foundation with a growing core business, improving profitability at SLS, new enterprise wins, and an expanding pipeline. The priorities are to continue driving profitable growth, deepen customer relationships, convert the pipeline into new business, and remain disciplined in capital allocation. He expressed confidence in the direction of the business and excitement about the opportunities ahead. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Achieved the strongest six-month performance in the company's public history, driven by a 5.4% increase in first-half revenue and a significant shift from operating loss to profitability. Attributed core Stran segment growth of 6.9% to a 'land-and-expand' strategy, deepening relationships with over 30 Fortune 500 clients while securing new enterprise contracts in grocery and construction. Improved Stran Loyalty Solutions (SLS) profitability despite a revenue decline, with gross margins expanding to 24.3% due to better customer mix, cost management, and lower tariffs. Navigated inherent variability in the casino and gaming sector by focusing on higher-margin programmatic business rather than just top-line volume. Advanced to #21 on the ASI Counselor Top 40 distributor list, reflecting successful market share gains in a fragmented industry through integrated technology and fulfillment services. Maintained a disciplined M&A approach, prioritizing opportunities that add specific capabilities or vertical strength while utilizing a strong balance sheet for patient capital allocation. Anticipates a simplified capital structure and a 'cleaner equity story' following the scheduled expiration of public warrants in the fourth quarter of 2026. Focuses on converting the current sales pipeline into sustainable revenue growth and increased cash generation throughout the second half of the year. Targets long-term gross margins for the SLS segment in the mid-to-high 20% range, balancing competitive pricing with high-value service delivery. Plans to scale STRAN Digital Solutions conservatively, aiming for the platform to be cost-neutral initially before becoming a significant profit driver. Intends to continue balancing share repurchases with organic growth investments and strategic acquisitions to maximize long-term shareholder value. Resumed the share repurchase program in Q2, retiring approximately 131,000 shares as part of a broader 2.3 million share buyback since inception. Reported a $106,000 increase in unallocated corporate costs, primarily driven by higher legal and accounting expenses. Identified the casino and gaming market as a source of quarterly revenue variability due to the timing and scale of individual customer programs. Invested in STRAN Digital Solutions to enhance client program scalability, contributing to a 4.9% increase in total operating expenses. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that growth resulted from a combination of deeper penetration into the existing roster of 30+ Fortune 500 clients and new business development. The addition of new sales representatives and expansion into new verticals were cited as key contributors to the 2.4% total revenue increase. Management expects long-run margins to settle around 26%, finding a middle ground between the recent 24% and 28% levels. While the market is competitive, management emphasized that quality and value delivery are more significant drivers for their clients than price alone. Management described the digital platform as a 'low-risk, high-reward' opportunity that increases customer 'stickiness' by simplifying complex service functions. Confirmed a conservative investment approach to avoid cannibalizing the core business, focusing on sales and marketing rather than heavy new technology spending.

Conference Call to be Held Wednesday, August 12, 2026 at 10:00 a.m. Eastern Time QUINCY, Mass., Aug. 11, 2026 (GLOBE NEWSWIRE) -- Stran & Company, Inc. ("Stran" or the "Company") (NASDAQ: SWAG) (NASDAQ: SWAGW), a leading outsourced marketing solutions provider that leverages its promotional products and loyalty incentive expertise, today announced its financial results for the three and six months ended June 30, 2026, and provided a business update. Management will host a conference call at 10:00 a.m. Eastern Time on Wednesday, August 12, 2026. Second Quarter Financial Highlights Sales: $33.4 million, up 2.4% year-over-year Gross Profit: $10.0 million, up 1.6% year-over-year Net Income: $0.3 million EBITDA: $0.6 million Cash, Cash Equivalents and Investments: $12.6 million as of June 30, 2026 First-Half 2026 Financial Highlights Sales: $64.6 million, up 5.4% year-over-year Gross Profit: $19.7 million, up 7.2% year-over-year Net Income: $1.1 million EBITDA: $1.6 million “The first half of 2026 represents the strongest six-month period in Stran’s history as a public company,” said Andy Shape, Chief Executive Officer of Stran. “Revenue grew 5.4% to $64.6 million, gross profit increased 7.2% to $19.7 million, and we delivered net income of $1.1 million compared to $0.3 million in the first half of 2025. EBITDA more than doubled to $1.6 million from $0.7 million. These results demonstrate the operating leverage embedded in our platform and the progress we have made in building a sustainably profitable business.” “Our core Stran segment continued to be the primary growth engine in the second quarter, with revenue increasing 6.9% year-over-year to $23.3 million and gross margin of 32.5%. We expanded our enterprise footprint during the quarter with a new contract with a leading construction solutions provider expected to generate nearly seven figures in annual revenue and the onboarding of an industry veteran with a book of business focused on the gaming market. Our Stran Loyalty Solutions, LLC (“SLS”) segment continued to improve operationally, increasing gross profit 7.8% to $2.5 million and nearly doubling operating income to $443 thousand, with gross margin expanding to 24.3% from 21.0% in the prior-year period. While the timing of customer orders created some variability in SLS revenue, the segment’s trajectory toward sustainable profitability remains firmly intact.” “During the second quarter, we also resumed share repurchase activity under our $10 million authorized program, repurchasing and retiring approximately 131,000 shares at a cost of $272,000. Since program inception in May 2022, the Company has repurchased a total of 2.3 million shares for $4.2 million at a weighted-average price of $1.81 per share. We were also pleased to advance to No. 21 on the 2026 ASI Counselor Top 40 Distributors list, up from No. 23 in 2025.” “Looking ahead, our growing enterprise pipeline, diversified customer base of more than 2,000 active clients including over 30 Fortune 500 companies, and a strong balance sheet with approximately $12.6 million in cash, cash equivalents and investments position us well for the balance of 2026. We remain committed to expanding both our Stran and SLS segments, pursuing disciplined acquisition opportunities when appropriate, and delivering sustainable, long-term value for our customers and shareholders.” Financial Results for the Three Months Ended June 30, 2026 Total sales increased 2.4% to $33.4 million for the three months ended June 30, 2026, from $32.6 million for the three months ended June 30, 2025. Sales by our Stran segment increased 6.9% to $23.3 million for the three months ended June 30, 2026 from $21.8 million for the three months ended June 30, 2025. Sales by our SLS segment were $10.1 million for the three months ended June 30, 2026, compared to $10.8 million for the three months ended June 30, 2025. Gross profit increased 1.6% to $10.0 million for the three months ended June 30, 2026 compared to the prior year period. Gross profit margin was 30.0% for the three months ended June 30, 2026 compared to 30.3% in the prior year period. Gross profit for the Stran segment was $7.6 million, with a gross margin of 32.5%. Gross profit for the SLS segment increased 7.8% to $2.5 million, with a gross margin of 24.3%, compared to 21.0% in the prior year period. Total operating expenses were $9.9 million for the three months ended June 30, 2026, compared to $9.5 million for the three months ended June 30, 2025. As a percentage of sales, total operating expenses were 29.8% for the three months ended June 30, 2026, compared to 29.1% for the three months ended June 30, 2025. Net income was $0.3 million for the three months ended June 30, 2026, compared to net income of $0.6 million for the three months ended June 30, 2025. EBITDA was $0.6 million for the three months ended June 30, 2026, compared to $0.9 million in the prior year period. Financial Results for the Six Months Ended June 30, 2026 Total sales increased 5.4% to $64.6 million for the six months ended June 30, 2026, from $61.3 million for the six months ended June 30, 2025. Sales by our Stran segment increased 9.3% to $46.7 million for the six months ended June 30, 2026 from $42.7 million for the six months ended June 30, 2025. Sales by our SLS segment were $17.9 million for the six months ended June 30, 2026 compared to $18.6 million for the six months ended June 30, 2025. Gross profit increased 7.2% to $19.7 million for the six months ended June 30, 2026 compared to the prior year period. Gross profit margin increased to 30.4% for the six months ended June 30, 2026 from 30.0% in the prior year period. Gross profit for the Stran segment increased to $15.0 million, with a gross margin of 32.1%. Gross profit for the SLS segment increased 18.5% to $4.7 million, with a gross margin of 26.2%, compared to 21.4% in the prior year period. Total operating expenses were $18.9 million for the six months ended June 30, 2026, compared to $18.5 million for the six months ended June 30, 2025. As a percentage of sales, total operating expenses decreased to 29.3% for the six months ended June 30, 2026, from 30.2% for the six months ended June 30, 2025. Net income was $1.1 million for the six months ended June 30, 2026, compared to net income of $0.3 million for the six months ended June 30, 2025, an increase of more than 300%. EBITDA was $1.6 million for the six months ended June 30, 2026, compared to $0.7 million in the prior year period, an improvement of $0.8 million or approximately 115%. Conference Call Management will host a conference call at 10:00 A.M. Eastern Time on Wednesday, August 12, 2026, to discuss the Company’s financial results, 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: 544325. A webcast of the call may be accessed at https://www.webcaster5.com/Webcast/Page/2855/54303 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 August 12, 2027. A telephone replay of the call will be available approximately one hour following the call, through August 26, 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: 54303. 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 belief that it is building a sustainably profitable business; the Company’s expectation that a new contract with a leading construction solutions provider will generate nearly seven figures in annual revenue; the Company’s expectations regarding revenue contributions from the onboarding of an industry veteran with a book of business focused on the gaming market; the Company’s belief that its SLS segment’s trajectory toward sustainable profitability remains firmly intact; the Company’s belief that its growing enterprise pipeline, diversified customer base of more than 2,000 active clients, and strong balance sheet position it well for the balance of 2026; the Company’s commitment to expanding both its Stran and SLS segments; the Company’s intention to pursue disciplined acquisition opportunities when appropriate; and the Company’s goal of delivering sustainable, long-term value for its customers and shareholders. 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 that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to: the Company’s ability to achieve or sustain profitability, including in its SLS segment; the Company’s ability to retain key clients and secure new client engagements, including realizing expected revenue from new contracts and personnel; the Company’s dependence on a limited number of significant clients; the Company’s ability to expand its Stran and SLS segments as planned; changes in demand for promotional products, branded merchandise, and loyalty incentive programs; the Company’s ability to manage its growth effectively; the impact of general economic conditions, including inflation, supply chain disruptions, and changes in consumer and corporate spending; increased competition in the promotional products industry; the Company’s ability to identify, complete, and successfully integrate acquisitions; the Company’s ability to attract and retain qualified personnel; risks associated with goodwill and intangible asset impairment; and fluctuations in the Company’s quarterly and annual results of operations. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K and in the Company’s other periodic reports filed with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of the Company’s assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. The Company cautions investors not to place undue reliance on any forward-looking statements contained in this press release. Forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Contacts: Investor Relations Contact:Crescendo Communications, LLCTel: (212) [email protected] Press Contact:Howie Turkenkopf [email protected] Non-GAAP Financial Measures EBITDA is a numerical measure that the Company believes helps investors to compare its operating performance to that of other companies. “EBITDA” is defined as net income (loss) excluding interest income/expense, income tax expense and depreciation and amortization expense. The Company believes EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare the Company’s core operating results from period to period by removing (i) the impact of the Company’s capital structure (interest income/expense), (ii) tax consequences and (iii) asset base (depreciation and amortization). EBITDA is a “non-GAAP financial measure” as defined under Regulation G under the Exchange Act. EBITDA should not be considered in isolation or as an alternative to net income, cash flows from operating activities or any other measure determined in accordance with GAAP. The items excluded to calculate EBITDA are significant components in understanding and assessing the Company’s results of operations. The Company’s EBITDA may not be comparable to a similarly titled measure of another company because other entities may not calculate EBITDA in the same manner. The following table presents the reconciliation of EBITDA to its most comparable GAAP measure, net income (loss), as reported (unaudited):

Quincy, MA, Aug. 06, 2026 (GLOBE NEWSWIRE) -- Stran & Company, Inc. ("Stran" or the "Company") (NASDAQ: SWAG) (NASDAQ: SWAGW), a leading outsourced marketing solutions provider that leverages its promotional products and loyalty incentive expertise, today announced that it will host a conference call at 10:00 A.M. Eastern Time on Wednesday, August 12, 2026, to discuss the Company’s financial results for the second quarter of 2026 ended June 30, 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: 544325. A webcast of the call may be accessed at https://www.webcaster5.com/Webcast/Page/2855/54303 or on the company’s Investors section of the 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 August 12, 2027. A telephone replay of the call will be available approximately one hour following the call, through August 26, 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: 54303. 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” that are subject to substantial risks and uncertainties. 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 include, but are not limited to, the Company’s expectations regarding synergies from its acquired businesses, its financial position and operating performance, its expectations regarding its business initiatives, the Company’s expectations about its operating performance, trends in its business, the effectiveness of its growth strategies, its market opportunity, and demand for its products and services in general. Forward-looking statements are based on the Company’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the Company’s periodic reports which are filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and the Company undertakes no duty to update such information except as required under applicable law. Contacts: Investor Relations Contact:Crescendo Communications, LLCTel: (212) [email protected] Press Contact:Howie Turkenkopf [email protected]

Shares of Stran & Company, Inc. SWAG have increased 16.6% since reporting results for the first quarter of 2026, outperforming the S&P 500 index’s 0.1% return. Over the past month, the stock has risen 15.2%, also ahead of the S&P 500’s 5% advance. Stran reported first-quarter 2026 revenues of $31.2 million, up 8.9% from $28.7 million in the prior-year quarter, while gross profit climbed 13.7% to $9.6 million. The gross margin expanded to 30.9% from 29.6% a year earlier. The company posted net income of $744,000, or 4 cents per diluted share, against a net loss of $393,000, or 2 cents per share, in the first quarter of 2025. EBITDA improved to $1 million from a negative $201,000 in the prior-year period. Management described the quarter as a “meaningful inflection point” for profitability as revenue growth outpaced operating expense increases. Stran & Company, Inc. price-consensus-eps-surprise-chart | Stran & Company, Inc. Quote Stran’s core segment generated particularly strong growth during the quarter. Revenues from the legacy Stran business rose 11.9% year over year to $23.4 million from $20.9 million, supported by higher spending from existing clients and customer additions. Gross profit for the segment increased to $7.4 million, with the gross margin reaching 31.6%. The Stran Loyalty Solutions (“SLS”) segment, which includes the former Gander Group business, reported flat year-over-year sales of $7.8 million. However, profitability improved significantly. SLS’s gross margin expanded to 28.7% from 21.8% in the prior-year period, reflecting a more favorable customer mix and tighter cost controls. The segment swung to operating income of about $532,000 from an operating loss of roughly $462,000 a year earlier. Company-wide operating expenses remained flat at $9 million despite the higher revenue base. As a percentage of sales, operating expenses improved to 28.8% from 31.4% in the prior-year quarter, highlighting growing operating leverage within the business. Stran ended the quarter with $12.8 million in cash, cash equivalents and investments, compared with $11.6 million at the end of 2025. The operating cash flow improved substantially, with the company generating $1.2 million in cash from operating activities compared with cash use of $5.9 million in the year-ago quarter. Chief executive officer Andy Shape said that the quarter validated the company’s long-term investments in technology, operational discipline and client relationships. Management emphasized that profitability improvements were driven across both business segments rather than by isolated factors. In the first quarter, Stran expanded several enterprise relationships and secured client wins. These included a three-year multi-million-dollar contract extension with a major non-profit running organization, a new multi-million-dollar agreement with a gaming company tied to a rewards and loyalty initiative, and the addition of two Global 100 law firms as clients. Management said that the wins reflected increasing demand for integrated promotional products, loyalty programs and branded merchandise solutions across industries. The company also highlighted the launch of Stran Digital Solutions, a proprietary SaaS-based platform intended to improve client engagement, campaign execution and analytics capabilities, while supporting recurring revenue generation. Management believes that the platform strengthens the company’s position as an integrated marketing and technology partner rather than solely a provider of promotional products. Management attributed the increase in gross profit primarily to customer mix improvements and disciplined cost management. CFO David Browner noted that the company benefited from higher spending among existing customers and contributions from newly added clients. The SLS segment’s turnaround was aided by headcount reductions and lower sales-related expenses, while corporate expenses declined due to lower legal and accounting costs associated with the reaudit of historical financial statements. At the same time, Stran continued investing in digital capabilities, including enhancements to its Magento Open Source e-commerce platform and broader sales and marketing initiatives. Management said that it expects 2026 to be a year of sustained profitable growth, supported by deeper enterprise client engagement and continued operating leverage as revenues scale against a relatively fixed cost structure. The company also indicated that strategic acquisitions remain part of its long-term growth strategy, although management said that it is taking a disciplined approach toward evaluating opportunities. Shape stated that Stran intends to resume its share repurchase program after trading blackout restrictions prevented buybacks in the first quarter. Management said that it views the current stock price as undervaluing the business and considers repurchases an attractive use of capital. The company continued integrating the former Gander Group business into its SLS segment during the quarter. Management highlighted that the integration has contributed to stronger profitability and operating efficiency within the segment. Beyond integration efforts, Stran said it remains open to pursuing strategic acquisitions that could enhance technology capabilities, expand its client base and strengthen vertical expertise. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Stran & Company, Inc. (SWAG): Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Release Date: May 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Stran & Co Inc (NASDAQ:SWAG) reported an 8.9% year-over-year revenue growth to $31.2 million, indicating strong business momentum. Gross profit increased by 13.7% to $9.6 million, with gross margin expanding by over 100 basis points to 30.9%. The company achieved a significant profitability milestone with a net income of $744,000 compared to a net loss of $393,000 in the prior year. EBITDA improved to $1 million from a negative $201,000, marking a $1.2 million year-over-year improvement. Stran & Co Inc (NASDAQ:SWAG) secured several strategic client wins, including a multimillion-dollar partnership with a leading gaming company and top Global 100 law firms, diversifying its customer base. Sales by the Strong Loyalty Solutions (SLS) segment remained flat at $7.8 million, indicating a lack of growth in this area. Operating expenses for the Stran segment increased to $6.2 million, driven by investments in digital solutions and higher sales and marketing costs. Despite revenue growth, the SLS segment's sales remained unchanged, which could indicate challenges in expanding this segment. The company faced higher expenses related to its Magento open-source e-commerce platform, impacting overall operating costs. Trading blackout restrictions prevented Stran & Co Inc (NASDAQ:SWAG) from repurchasing shares during the first quarter, limiting their ability to capitalize on undervalued share prices. Warning! GuruFocus has detected 10 Warning Signs with EPM. Is SWAG fairly valued? Test your thesis with our free DCF calculator. Q: Can you elaborate on the factors driving the revenue growth and profitability improvements in Q1 2026? A: Andy Shape, CEO: The revenue growth of 8.9% to $31.2 million was driven by momentum across existing client relationships and new business wins. Profitability improved significantly, with net income reaching $744,000 compared to a net loss of $393,000 in the prior year. This was due to strategic investments translating into profitable growth, improved operating leverage, and a focus on cost management. Q: What were the key strategic client wins in the first quarter? A: Andy Shape, CEO: We extended a three-year multimillion-dollar partnership with a premier nonprofit running organization and secured a new multimillion-dollar agreement with a leading gaming company. Additionally, we added two Global 100 law firms as new clients, reflecting the growing demand for our integrated promotional products and incentive solutions. Q: How has the Strong Loyalty Solutions (SLS) segment performed this quarter? A: Andy Shape, CEO: The SLS segment achieved a significant turnaround, generating $532,000 of operating income compared to a loss of $462,000 in the prior year. This was due to the successful integration of the Ganner Group Business and operational discipline, with gross margin expanding to 28.7% from 21.8%. Q: What role does technology play in Stran's growth strategy? A: Andy Shape, CEO: Technology is central to our strategy. We launched Stran's Digital Solutions, a SaaS-based platform that enhances client engagement and streamlines campaign execution. This platform positions us as an integrated marketing ecosystem partner, creating opportunities for higher-margin, recurring revenue streams. Q: What is the company's approach to strategic acquisitions? A: Andy Shape, CEO: Strategic acquisitions remain a core pillar of our growth strategy. We are disciplined and selective, focusing on targets that enhance our technology capabilities, expand our client base, and strengthen our vertical expertise. Our strong balance sheet and improved profitability position us well to pursue the right opportunities. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Stran & Co (NASDAQ:SWAG) released first-quarter financial results and hosted an earnings call on Wednesday. Read the complete transcript below. Benzinga APIs provide real-time access to earnings call transcripts and financial data. Visit https://www.benzinga.com/apis/ to learn more. Access the full call at https://www.webcaster5.com/Webcast/Page/2855/53974 Stran & Company Inc reported an 8.9% increase in total revenue to $31.2 million for Q1 2026, with gross profit rising by 13.7% and gross margin expanding to 30.9%. The company achieved a significant profitability milestone with a net income of $744,000, reversing a net loss from the previous year, and an improvement in EBITDA to $1 million. Strategic initiatives included the successful integration of Gander Group into the Strong Loyalty Solutions segment and the launch of Stran Digital Solutions, enhancing client engagement and generating recurring revenue. The company secured new multimillion-dollar partnerships with a leading gaming company and two Global 100 law firms, demonstrating expanding demand for integrated promotional products and loyalty solutions. Stran & Company Inc ended the quarter with $12.8 million in cash and investments, providing flexibility for future growth, including potential strategic acquisitions. OPERATOR Greetings. Welcome to the Stran & Company Inc First quarter 2026 earnings call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press Star 0 on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Alexandra Schilt. You may begin. Alexandra Schilt (Moderator) Good morning and thank you for joining Stran & Company Inc Company's 2026 first quarter financial results and Business Update Conference call. With us today are Andy Shape, Chief Executive Officer and David Browner, Chief Financial Officer. Yesterday we issued a press release detailing our results which is available on our website at ir.stran.com before we begin, please note that today's remarks may include forward looking statements that involve risks and uncertainties as described in our SEC filings. With that, I'll turn the call over to Andy Shape. Please go ahead. Andy Shape (Chief Executive Officer) Thank you, Allie. Good morning everyone and thank you for joining us today. The first quarter of 2026 demonstrated that Stran & Company Inc has reached a genuine inflection point in profitability. It validates the strength of our platform, the depth of our client relationships and the scalability of our operating model. Most importantly, it confirms what we've long believed that investments we have made over the past years are now translating directly into profitable growth. During the first quarter, total revenue grew 8.9% year over year to $31.2 million, reflecting continued momentum across both existing client relationships and new business wins. Even more importantly, that growth translated into significantly improved profitability and operating leverage across the organization. Gross profit increased 13.7% to $9.6 million, while gross margin expanded more than 100 basis points to 30.9% when compared to the prior year. These results demonstrate the strength of our execution, the value of our client relationships, and the benefits of the operational discipline and strategic investments we've made over the last several years. We also achieved significant profitability milestone this quarter, generating net income of $744,000 compared to a net loss of $393,000 in the prior year period. In addition, EBITDA improved to $1,000,000 versus a negative 201,000 a year ago over a year, a year over year improvement of $1.2 million. These are not incremental improvements. This is a fundamental shift in the earnings trajectory of our business. What makes these results especially encouraging is that we're delivering profitable growth while simultaneously investing in the future of our company, expanding our technology capabilities, deepening our enterprise client relationships and building toward the significantly larger market opportunity ahead. We have turned the corner on profitability and we intend to keep widening that gap. As we continue to scale, we are seeing tangible operating leverage throughout the organization. Total operating expenses remained essentially flat year over year and at 9 million. Despite meaningful revenue growth as a percentage of sales, operating expenses improved to 28.8% from 31.4% a year ago, a 260 basis point improvement. I also want to highlight the dramatic turnaround within the Strong Loyalty Solutions segment during the quarter. SLS generated 532,000 of operating income in Q1 2026 compared to an operating loss of 462,000 in the prior year period. This reflects both the successful integration of Gander Group's business and the sustained operation discipline our team has implemented. Importantly, the SLS segment gross margin expanded to 28.7% from 21.8% in Q1 2025, a nearly 700 basis point improvement. Beyond the financial results, the first quarter is also marked by several highly strategic client wins and relationship expansions that reinforce the growing relevance of our solutions in the marketplace. One of the highlights of the quarter was the extension of a three year multimillion dollar partnership, one of the world's premier nonprofit running organizations. This renewal reflects the trust our clients place in Stran and validates our ability to execute complex high impact engagement campaigns. In addition, we secured a new multimillion dollar agreement with a leading gaming company to support a large scale rewards and loyalty initiative. This win demonstrates the growing demand for integrated promotional products and incentive solutions, particularly among consumer facing brands seeking innovative ways to strengthen customer engagement and loyalty. We're also Proud to add two top Global 100 law firms as new clients. These relationships further diversify our customer base and reflect the increasing appeal of Stran's solutions among sophisticated professional service organizations that require premium service, strategic execution and scalable technology capabilities. Collectively, these wins highlight several important themes that we believe position Stran for future sustained long term growth. First, we continue to gain traction with enterprise level clients that value strategic partnerships rather than transactional vendors. Second, we are expanding into new verticals and end markets where branded merchandise, loyalty solutions and employment engagement programs are becoming increasingly important components of customer acquisition and retention strategies. And third, our technology investments are creating meaningful competitive differentiation. We recently launched Stran Digital Solutions, a proprietary SaaS based platform designed to enhance client engagement, streamline campaign execution, improve analytics capabilities and generate recurring revenue over time. This is a platform that makes Stran harder to replace and more valuable than ever to every client we service with Stran Digital solutions. We are moving beyond being just a best in class promotional products provider and becoming an integrated marketing ecosystem partner. We are adding scalable software capabilities that deepen client relationships and create opportunities for higher margin recurring revenue streams, the kind of revenue that compounds over time and expands our long term earning potential. This is an important strategic initiative because it positions Stran at the intersection of branded merchandise, technology and data driven engagement solutions. As more companies seek integrated marketing ecosystems rather than isolated service providers, we believe our combined physical and digital offering creates a compelling competitive advantage. Equally important, we continue to maintain a Stran & Company Inc balance sheet that provides significant flexibility support future growth initiatives. We ended the quarter with $12.8 million in cash equivalents and investments. This financial position allows us to continue investing in technology, expanding our sales and marketing capabilities, evaluating strategic acquisition opportunities and pursuing initiatives that enhance long term shareholder value. Looking ahead, we are not just optimistic, we are confident this quarter demonstrated the power of Stran's growth model, revenue growth, margin expansion and profitable operations all delivered simultaneously. We believe that promotional products and loyalty industries continue to benefit from Stran & Company Inc secular trends including increased corporate focus on customer engagement, employee retention, experiential marketing and brand activation. At the same time, clients are increasingly looking for partners that can provide integrated, scalable technology enabled solutions with measurable ROI. Stran is exceptionally well positioned to capitalize on those trends. Strategic acquisitions also remain a core pillar of our long term growth strategy. While we continue to evaluate opportunities actively, we are being increasingly disciplined and selective in today's environment, focusing on targets that enhance our technology capabilities, expand our client base, strengthen our vertical expertise and create clear long term shareholder value. With our Stran & Company Inc balance sheet and improved profitability profile, we believe we are well positioned to pursue the right opportunities at the right time. We are entering the remainder of the year with Stran & Company Inc momentum on expanding pipeline, growing enterprise relationships, two profitable segments and a platform we believe can continue compounding. The promotional products and loyalty industries are large for fragmented and shifting towards integrated partners with technology and scale and that describes Stran & Company Inc. Our focus remains on driving sustainable profitable revenue growth, expanding margins, deepening client relationships and continuing to build a platform capable of generating compounding value for our shareholders. We have the strategy, the team, the balance sheet and the momentum. The opportunity in front of us is significant and we are executing and while trading blackout restrictions prevented us from repurchasing shares during the first quarter, we intend to resume our buyback program as a direct expression of our confidence in the business. We believe the current share price meaningfully undervalues Stran & Company Inc and we view repurchases as an attractive and disciplined use of capital as we continue to build long term shareholder value. I'll now turn the call over to our CFO David Browner for a more detailed review of our financial results. David, please go ahead. David Browner (Chief Financial Officer) Thank you Andy and good morning everyone. I'm pleased to provide a detailed overview of our financial performance for the 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 prior year period. Sales by our Stran segment increased 11.9% to 23.4 million for the three months ended March 31, 2026 from 20.9 million in the prior year period. The increase in sales was primarily driven due to higher spending from existing clients as well as new customers. Sales by our SLS segment remain Approximately flat at 7.8 million for the three months ended March 31, 2026 when compared to the prior year period. Total Gross profit increased 13.7% to 9.6 million, or 30.9% of sales for the three months ended March 31, 2026 from 8.5 million, or 29.6% of sales for the three Months ended March 31, 2025. The increase in the dollar amount of the total gross profit was primarily attributable to the shift in customer mix and effective cost management. Gross profit of our Stran segment increased to 7.8 million for the three months ended March 31, 2026 from 6.8 million for the prior year period. Gross profit for our SLS segment increased to 2.2 million for the three months ended March 31, 2026 from 1.7 million for the prior year period. Total operating expenses decreased 0.2% to 9 million for the three months ended March 31, 2026 as a percentage of sales, operating expenses improved to 28.8% for the three months ended March 31st, 2026 from 31.4% for the three months ended March 31, 2025, an improvement of approximately 260 basis points. Reflecting the operating leverage now embedded in our model. Operating expenses of our Stran segment increased to 6.2 million for the three months ended March 31, 2026 from 5.6 million for the prior year period. As a percentage of sales. Operating expenses of our STRON segment decreased to 26.6% for the three months ended March 31, 2026 from 26.9% for the prior year period. The increase in the dollar amount of the operating expense was primarily due to the investment in the Strawn Digital Solutions, higher expenses related to our Magento open source e Commerce platform and higher sales and marketing related costs. Operating expenses of our SLS segment decreased to 1.7 million for the three months ended March 31, 2026 from 2.2 million for the prior year period. As a percentage of sales, operating expenses of the SLS segment improved to 21.9% for the three months ended March 31, 2026 from 27.7% for the prior year period. The decrease in the dollar amount of the operating expense was primarily attributable to a reduction in headcount and lower sales related costs. Operating expenses for the other, which represents unallocated corporate costs, decreased to 1.1 million for the three months ended March 31, 2026 from 1.2 million for the prior year period, primarily driven by lower legal and accounting related expenses due to the re audit of our historical financial statements. Our net income for the three months ended March 31, 2026 was $744,000 compared to a net loss of $393,000 for the prior year period. This marks a clear inflection in profitability driven by gross profit growth, outpacing revenue growth, and essentially flat operating expenses. As of March 31, 2026, we have approximately $12.8 million in cash and cash equivalents and investments. Now I'll turn the call back to Andy. Andy Shape (Chief Executive Officer) Thank you David, and thank you everyone for listening. Before we conclude, I'm very excited about the results that we posted, but I'd love to open it up for questions. So operator, please open it up for questions and we'll answer anything that anyone would like to know. OPERATOR Certainly at this time we will be conducting a question and answer session. If you would like to ask a question, please press Star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset because before pressing the star keys One moment please, while we poll for questions. Once again, if you would like to ask a question, please press Star one. Andy Shape (Chief Executive Officer) All right, so it doesn't look like we have any questions, so thank you. Looks like we've answered a lot of things and I'm sure we'll have other questions as time goes on. So thank you everyone for listening and I'll wrap things up. So before we conclude, I do want to acknowledge the incredible team at Stron whose dedication and execution made this quarter possible. I also want to thank our clients for the trust they place in us and our shareholders for their continued support. Q1 2026 is proof that our strategy is working. We're just getting started. We believe the first quarter demonstrating meaningful, measurable progress. Revenue growth, margin expansion, operating leverage and a genuine profitability inflection. We've turned the corner and we believe we are still in the early stages of unlocking the full potential of this platform. We are highly confident in the strength of our business, our marketing position, our market position and our ability to execute the investments we have made in our people technology. Client relationships have built the foundation for a durable compounding growth. We will continue to expand margins, deepen client relationships, pursue strategic opportunities and deliver results that reflect the quality of this business. The best is ahead of us with that. Thank you again for joining us today and for your continued interest in Stran & Company Inc. We appreciate your time and support and we look forward to updating you on our continued progress in the quarters ahead. Thank you. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice. UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga: STRAN & CO (SWAG): Free Stock Analysis Report This article Transcript: Stran & Co Q1 2026 Earnings Conference Call originally appeared on Benzinga.com © 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Conference Call to be Held Wednesday, May 13, 2026 at 10:00 a.m. Eastern Time QUINCY, Mass., May 12, 2026 (GLOBE NEWSWIRE) -- Stran & Company, Inc. ("Stran" or the "Company") (NASDAQ: SWAG) (NASDAQ: 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 that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to: the Company’s ability to maintain and grow its revenue and client base; the Company’s ability to achieve or sustain profitability; risks related to the integration and expected synergies from acquired businesses, including the former Gander Group business; the Company’s ability to retain key clients and secure new client engagements; the Company’s dependence on a limited number of significant clients; changes in demand for promotional products, branded merchandise, and loyalty incentive programs; the Company’s ability to manage its growth effectively; the impact of general economic conditions, including inflation, supply chain disruptions, and changes in consumer and corporate spending; increased competition in the promotional products industry; the Company’s ability to attract and retain qualified personnel; the Company’s ability to maintain and enhance its technology platform and e-commerce solutions; risks associated with goodwill and intangible asset impairment; fluctuations in the Company’s quarterly and annual results of operations; cybersecurity risks and the protection of confidential information; and risks related to the Company’s common stock and its listing on the Nasdaq Capital Market. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” in the Company’s Annual Report on Form 10-K and in the Company’s other periodic reports filed with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of the Company’s assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. The Company cautions investors not to place undue reliance on any forward-looking statements contained in this press release. Forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. Contacts: Investor Relations Contact:Crescendo Communications, LLCTel: (212) [email protected] Press Contact:Howie Turkenkopf [email protected] Non-GAAP Financial Measures EBITDA is a numerical measure that the Company believes helps investors to compare its operating performance to that of other companies. “EBITDA” is defined as net income (loss) excluding interest income, income tax expense and depreciation and amortization expense. The Company believes EBITDA is an important measure of operating performance because it allows management, investors and others to evaluate and compare the Company’s core operating results from period to period by removing (i) the impact of the Company’s capital structure (interest expense from outstanding debt), (ii) tax consequences and (iii) asset base (depreciation and amortization). EBITDA is a “non-GAAP financial measure” as defined under Regulation G under the Exchange Act. EBITDA should not be considered in isolation or as an alternative to net income, cash flows from operating activities or any other measure determined in accordance with GAAP. The items excluded to calculate EBITDA are significant components in understanding and assessing the Company’s results of operations. The Company’s EBITDA may not be comparable to a similarly titled measure of another company because other entities may not calculate EBITDA in the same manner. The following table presents the reconciliation of EBITDA to its most comparable GAAP measure, net income (loss), as reported (unaudited):