2025 Financial Highlights
- Sales:
$116.2 million , an increase of 40.6% year-over-year - EBITDA:
$0.2 million , compared to$(3.6) million in 2024 and an improvement of$3.8 million - Gross Profit:
$34.2 million , representing a gross margin of 29.5% - Cash, Cash Equivalents, and Investments:
$11.6 million as ofDecember 31, 2025
“2025 was a year of strong execution and meaningful financial progress for Stran,” commented
“We also generated positive EBITDA for the 2025 fiscal year, which we believe reflects the scalability of our operating platform, the strength of our customer relationships, and the benefits of our expanding mix of program-based business. While we reported a modest net loss for the year, our results were impacted by higher legal, accounting and other public company-related expenses, including costs associated with the re-audit of historical financial statements. We believe these expenses masked the strength of the underlying operating performance of the business during the year.”
“As we entered 2026, we continued to see encouraging momentum across the business. Although we are not providing formal guidance at this time, we are pleased with our start to the year and currently expect first-quarter profitability to improve compared to prior periods. We believe this reflects continued demand from our customer base, the operating leverage in our platform, and the benefits of the strategic progress we made throughout 2025.”
“Our growth continues to be supported by a diversified and expanding customer base. Today, we serve more than 2,000 active customers, including over 30 Fortune 500 companies, across a wide range of industries. This breadth of relationships, combined with our focus on programmatic engagements, provides increasing revenue visibility and a strong foundation for sustainable growth.”
“A key component of our strategy is converting customers into long-term program relationships, where clients utilize multiple services across our platform, including promotional products, loyalty and incentive programs, e-commerce solutions, print services, warehousing and logistics. This approach drives deeper engagement, longer customer lifecycles, and more predictable revenue streams, while positioning
“During 2025, we also continued to invest in initiatives designed to support our next phase of growth. We enhanced our digital capabilities with the launch of our client-branded online gifting platform, which expands our e-commerce offering and creates an additional scalable solution for customers. Looking ahead, we remain focused on deepening enterprise customer relationships, expanding our programmatic revenue base, investing in technology and selectively pursuing acquisitions. Given the highly fragmented nature of the promotional products industry and the strength of our differentiated platform, we believe
Financial Results for the Fiscal Year ended
- Sales increased
$33.5 million , or 40.6%, to$116.2 million for the year endedDecember 31, 2025 compared to the prior year driven by increased spending from new and existing customers along with the acquisition of theGander Group assets inAugust 2024 . Sales by ourStran segment increased 12.9%, or$9.4 million , to$82.1 million and sales of our SLS segment (which consists of the former Gander Group business) increased 242.6%, or$24.1 million , to$34.1 million . - Gross profit increased
$8.4 million , or 32.6%, to$34.2 million for the year endedDecember 31, 2025 compared to the prior year. Gross profit margin decreased to 29.5% for the year endedDecember 31, 2025 from 31.2% in the prior year, primarily due to the acquisition of theGander Group business inAugust 2024 , which operates at a lower gross margin than theStran segment. - Operating expenses increased
$5.5 million , or 17.8%, to$36.2 million for the year endedDecember 31, 2025 compared to the prior year. As a percentage of sales, operating expenses decreased to 31.1% for the year endedDecember 31, 2025 from 37.2% in the prior year. - Net loss was
$0.7 million for the year endedDecember 31, 2025 compared to a net loss of$4.1 million for the prior year period. - EBITDA was
$0.2 million for the year endedDecember 31, 2025 compared to$(3.6) million in the prior year period.
Conference Call
Management will host a conference call at
The conference call will be available via telephone by dialing toll free 888-506-0062 for
A webcast replay will be available on the Investor Relations section of the Company’s website (ir.stran.com/news-events/ir-calendar) through
About
For over 30 years,
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 opportunities, 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:
Tel: (212) 671-1021
SWAG@crescendo-ir.com
Press Contact:
press@stran.com
| CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share amounts) | ||||||||
2025 | 2024 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | $ | 6,753 | $ | 9,358 | ||||
| Investments | 4,872 | 8,856 | ||||||
| Accounts receivable, net | 17,252 | 18,092 | ||||||
| Accounts receivable - related parties, net | - | 573 | ||||||
| Inventory | 7,621 | 5,389 | ||||||
| Prepaid corporate taxes | - | 28 | ||||||
| Prepaid expenses | 1,778 | 2,308 | ||||||
| Deposits | 363 | 423 | ||||||
| Other current assets | 2 | 455 | ||||||
| Total current assets | 38,641 | 45,482 | ||||||
| Property and equipment, net | 1,944 | 1,701 | ||||||
| OTHER ASSETS: | ||||||||
| Intangible assets - customer lists, net | 3,690 | 4,170 | ||||||
| Intangible assets - trade name | 654 | 654 | ||||||
| 2,321 | 2,321 | |||||||
| Other assets | 53 | 23 | ||||||
| Right of use assets | 2,045 | 797 | ||||||
| Total other assets | 8,763 | 7,965 | ||||||
| Total assets | $ | 49,348 | $ | 55,148 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable and accrued expenses | $ | 8,568 | $ | 8,919 | ||||
| Accrued payroll and related | 1,970 | 1,513 | ||||||
| Unearned revenue | 3,201 | 4,423 | ||||||
| Rewards program liability | 1,500 | 6,000 | ||||||
| Sales tax payable | 327 | 353 | ||||||
| Current portion of contingent earn-out liabilities | 105 | 256 | ||||||
| Current portion of installment payment liabilities | 230 | 365 | ||||||
| Current portion of lease liabilities | 602 | 366 | ||||||
| Total current liabilities | 16,503 | 22,195 | ||||||
| LONG-TERM LIABILITIES: | ||||||||
| Long-term contingent earn-out liabilities | 455 | 455 | ||||||
| Long-term installment payment liabilities | 147 | 425 | ||||||
| Long-term lease liabilities | 1,695 | 432 | ||||||
| Loan - vehicle | 47 | — | ||||||
| Total long-term liabilities | 2,344 | 1,312 | ||||||
| Total liabilities | 18,847 | 23,507 | ||||||
| Commitments and contingencies | ||||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
| Preferred stock, | — | — | ||||||
| Common stock, | 2 | 2 | ||||||
| Additional paid-in capital | 37,925 | 38,391 | ||||||
| Accumulated deficit | (7,489 | ) | (6,742 | ) | ||||
| Accumulated other comprehensive income (loss) | 63 | (10 | ) | |||||
| Total stockholders’ equity | 30,501 | 31,641 | ||||||
| Total liabilities and stockholders’ equity | $ | 49,348 | $ | 55,148 | ||||
| CONSOLIDATED STATEMENTS OF OPERATIONS YEARS ENDED (in thousands, except share and per share amounts) | ||||||||
| 2025 | 2024 | |||||||
| SALES | ||||||||
| Sales | $ | 116,191 | $ | 82,194 | ||||
| Sales – related parties | - | 460 | ||||||
| Total sales | 116,191 | 82,654 | ||||||
| COST OF SALES: | ||||||||
| Cost of sales | 81,962 | 56,487 | ||||||
| Cost of sales - related parties | - | 354 | ||||||
| Total cost of sales | 81,962 | 56,841 | ||||||
| GROSS PROFIT | 34,229 | 25,813 | ||||||
| OPERATING EXPENSES: | ||||||||
| General and administrative expenses | 36,186 | 30,707 | ||||||
| Total operating expenses | 36,186 | 30,707 | ||||||
| LOSS FROM OPERATIONS | (1,957 | ) | (4,894 | ) | ||||
| OTHER INCOME: | ||||||||
| Other income | 937 | 38 | ||||||
| Interest income | 296 | 305 | ||||||
| Change in fair value of contingent earn-out liability | - | 208 | ||||||
| Realized gain on investments | 97 | 208 | ||||||
| Total other income | 1,330 | 759 | ||||||
| LOSS BEFORE INCOME TAXES | (627 | ) | (4,135 | ) | ||||
| Provision for income taxes | 120 | 5 | ||||||
| NET LOSS | $ | (747 | ) | $ | (4,140 | ) | ||
| NET LOSS PER COMMON SHARE | ||||||||
| Basic and diluted | $ | (0.04 | ) | $ | (0.22 | ) | ||
| WEIGHTED-AVERAGE COMMON SHARES OUTSTANDING | ||||||||
| Basic and diluted | 18,458,827 | 18,587,607 | ||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED (in thousands) | ||||||||
| 2025 | 2024 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net loss | $ | (747 | ) | $ | (4,140 | ) | ||
| Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | ||||||||
| Depreciation and amortization | 1,107 | 824 | ||||||
| Noncash operating lease expense | 829 | 539 | ||||||
| Provision for credit losses | 373 | 211 | ||||||
| Change in allowance for credit losses – related parties | 401 | 327 | ||||||
| Change in fair value of contingent earn-out liability | - | (208 | ) | |||||
| Noncash interest accretion | 49 | 125 | ||||||
| Stock-based compensation | 88 | 128 | ||||||
| Unrealized gain on investments | - | 3 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable, net | 468 | (263 | ) | |||||
| Accounts receivable – related parties, net | 172 | (148 | ) | |||||
| Inventory | (2,232 | ) | 333 | |||||
| Prepaid corporate taxes | 28 | 33 | ||||||
| Prepaid expenses | 530 | (425 | ) | |||||
| Deposits | 60 | 1,367 | ||||||
| Other assets | 423 | (455 | ) | |||||
| Accounts payable and accrued expenses | (354 | ) | 60 | |||||
| Accrued payroll and related | 457 | (1,291 | ) | |||||
| Unearned revenue | (1,221 | ) | 1,159 | |||||
| Rewards program liability | (4,500 | ) | 5,125 | |||||
| Sales tax payable | (26 | ) | (17 | ) | ||||
| Operating lease liabilities | (578 | ) | (527 | ) | ||||
| Net cash (used in) provided by operating activities | (4,673 | ) | 2,760 | |||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Business acquisitions, net of cash acquired | — | (1,469 | ) | |||||
| Additions to property and equipment | (823 | ) | (601 | ) | ||||
| Proceeds from sale of investments | 9,249 | 8,659 | ||||||
| Purchase of investments | (5,191 | ) | (7,122 | ) | ||||
| Net cash provided by (used in) investing activities | 3,235 | (533 | ) | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Payment of contingent earn-out liabilities | (151 | ) | (68 | ) | ||||
| Payment of installment payment liabilities | (462 | ) | (760 | ) | ||||
| Payment of notes payable | — | (100 | ) | |||||
| Payment for stock repurchase | (554 | ) | — | |||||
| Net cash used in financing activities | (1,167 | ) | (928 | ) | ||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS | (2,605 | ) | 1,299 | |||||
| CASH AND CASH EQUIVALENTS - BEGINNING | 9,358 | 8,059 | ||||||
| CASH AND CASH EQUIVALENTS - ENDING | $ | 6,753 | $ | 9,358 | ||||
Non-GAAP Financial Measures
EBITDA is a non-GAAP financial 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 not a measure of financial performance under GAAP. 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 loss, as reported (unaudited):
| RECONCILIATION OF NET LOSS TO EBITDA YEARS ENDED (in thousands) (unaudited) | ||||||||
| 2025 | 2024 | |||||||
| Net loss (GAAP) | $ | (747 | ) | $ | (4,140 | ) | ||
| Interest income | (296 | ) | (305 | ) | ||||
| Provision for income taxes | 120 | 5 | ||||||
| Depreciation and amortization | 1,107 | 824 | ||||||
| EBITDA | $ | 184 | $ | (3,616 | ) | |||
