Stran & Company — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total sales for the three months ended September 30, 2026, were $28.1 million, an 8.2% increase year-over-year compared to $26.0 million.
• Total sales for the nine months ended September 30, 2026, were $92.7 million, a 6.3% increase year-over-year compared to $87.3 million.
• Gross profit for the third quarter was $9.4 million, up 32.4% year-over-year, with gross margin expanding to 33.3% from 27.2% (an increase of approximately 610 basis points).
• Gross profit for the nine months was $29.0 million, up 14.2% year-over-year, with gross margin improving to 31.3% from 29.1%.
• Net income for the third quarter was $35,000, compared to a net loss of $1.2 million in the prior-year period.
• Net income for the nine months was $1.1 million, compared to a net loss of approximately $1.0 million in the prior-year period.
• EBITDA for the third quarter was $0.3 million, compared to $(1.1) million in the prior-year period.
• EBITDA for the nine months was $1.8 million, compared to $(0.4) million in the prior-year period.
• Operating cash flow for the nine months was $1.8 million of net cash provided by operating activities, compared to $4.8 million used in the prior-year period.
• Cash, cash equivalents, and investments totaled $12.6 million as of September 30, 2026.
• Total operating expenses for the third quarter increased 7.5% to $9.5 million (33.9% of sales), compared to $8.9 million (34.1% of sales) in the prior year.
• Total operating expenses for the nine months increased 4.0% to $28.4 million (30.7% of sales), compared to $27.3 million (31.3% of sales) in the prior year.

Business Segments and Product Lines:

• The Stran Loyalty Solutions (SLS) segment generated gross profit of $3.0 million and income from operations of $0.7 million for the third quarter, compared to gross profit of $1.6 million and a loss from operations of $0.4 million in the prior year.
• SLS segment sales for the third quarter increased 15.4% to $9.6 million, compared to $8.3 million in the prior year.
• SLS segment gross profit for the nine months increased 39.3% to $7.7 million, with a gross margin of 28.0% compared to 20.5% in the prior year.
• The Stran segment sales for the third quarter increased 4.7% to $18.5 million, compared to $17.6 million in the prior year.
• Stran segment sales for the nine months increased 8.0% to $65.2 million, compared to $60.3 million in the prior year.
• Stran segment gross profit for the third quarter increased 15.4% to $6.4 million with a gross margin of 34.4% (vs. 31.2% prior year).
• Stran segment gross profit for the nine months increased 7.2% to $21.3 million with a gross margin of 32.7% (vs. 33.0% prior year).
• Third-quarter gross margin improvement for SLS was attributed to improved customer mix, effective cost management, lower tariffs, and a tariff refund of approximately $0.2 million.

Management Commentary and Tone:

• CEO Andy Shape stated that results reflect progress in building a stronger, more profitable business and noted the benefits of operational improvements and strategic investments.
• Management highlighted that SLS is becoming a more meaningful contributor to overall profitability.
• The company expressed confidence in its improving earnings profile, positive operating cash flow, and strong balance sheet, stating it is entering its next phase of growth from a stronger financial position.
• Management emphasized a focus on translating revenue growth into stronger earnings and cash flow while maintaining financial flexibility.

Other Key Points:

• The company continued its share repurchase program during the third quarter, repurchasing approximately 109,000 shares.
• Total financing cash outflows for the nine months included $499,000 in payments for stock repurchases.
• The company reported a material weakness in internal control over financial reporting that it aims to remediate.
• The company noted it will cease to qualify as an emerging growth company, leading to increased costs and obligations.
• A conference call regarding these results was scheduled for November 11, 2026.