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Smith & Wesson Brands (SWBI) investor relations material

Smith & Wesson Brands Q2 2026 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2026 earnings summary4 Dec, 2025

Executive summary

  • Net sales for Q2 fiscal 2026 were $124.7 million, down 3.9% year-over-year, with gross margin at 24.3% versus 26.6% last year.

  • Net income was $1.9 million ($0.04/share), compared to $4.5 million ($0.10/share) in the prior year; adjusted EBITDAS was $15.1 million (12.1% of sales).

  • New products accounted for 38.7% of sales, driving market share gains and positive retail sell-through.

  • Operating cash flow for Q2 was $27.3 million, a significant improvement from a $7.4 million outflow last year.

  • Inventory management led to a significant reduction, generating strong cash flow.

Financial highlights

  • Handgun sales for the quarter were $90.8 million (down 3.2%), long gun sales $24.7 million (down 1.8%), and other products/services revenue dropped 14.1%.

  • Gross profit for Q2 was $30.3 million, down from $34.5 million last year; operating income was $4.1 million, down from $7.5 million.

  • Free cash flow for Q2 was $19.9 million, up from negative $10.7 million last year.

  • Cash and cash equivalents at period end were $22.4 million; borrowings outstanding were $90 million on the revolving line of credit.

  • Average selling prices increased: handguns up 2.1% to $418, long guns up 10.2% to $602.

Outlook and guidance

  • Q3 sales are expected to be 8–10% higher than Q3 fiscal 2025, with no significant channel inventory impact anticipated.

  • Q3 gross margins anticipated to increase sequentially and year-over-year.

  • Q4 projected to see high single-digit to low double-digit growth over Q3.

  • Operating expenses in Q3 expected to rise about 15% due to SHOT Show, new product development, promotions, and profit sharing.

  • Inventory levels are expected to decline further during the remainder of the fiscal year.

Channel inventory impact on Q3/Q4 shipments
Long gun strategy for hunting segment
Academy's impact on future sales and brand equity
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Frequently asked questions

Smith & Wesson Brands, Inc. provides products and services for public safety, law enforcement, target shooting and hunting in the United States. It operates in two segments, Firearms; and Accessories And Other. The Firearms segment offers handguns, long guns, handcuffs, suppressors and equipment designed for personal protection and recreational purposes, as well as firearms training course. The company's products comprise M&P branded handguns; SDVE handgun; performance center pistols; Thompson/Center Arms Company branded hunting rifles; USR Rifles; BG Airsoft and Air Gun pellet guns; and EDC Knives.

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