Executive Summary
Smith & Wesson Brands Inc delivered a modest year-over-year revenue uptick in QQ2 2025, punctuated by meaningful sequential improvement in profitability. Revenue for the quarter was USD 129.679 million, up 3.78% year over year and 46.81% quarter over quarter, aided by favorable product mix and steady demand in the civilian firearms market. Gross profit reached USD 34.546 million, translating to a gross margin of approximately 26.64%, marking a step up from prior periods and signaling improved operating efficiency despite ongoing cost pressure. Operating income rose to USD 6.972 million with an operating margin of 5.38%, and net income totaled USD 4.134 million (net margin 3.19%), supported by an EBITDA of USD 15.18 million and an EBITDA margin of about 11.7%.
Key Performance Indicators
QoQ: 474.44% | YoY:85.03%
QoQ: 296.30% | YoY:65.49%
QoQ: 299.78% | YoY:71.09%
Key Insights
Revenue and profitability: Revenue USD 129.679 million, up 3.78% YoY and 46.81% QoQ; Gross profit USD 34.546 million; Gross margin 26.64%; Operating income USD 6.972 million; Operating margin 5.38%; Net income USD 4.134 million; Net margin 3.19%; Earnings per share (EPS) USD 0.0929; EBITDA USD 15.18 million; EBITDA margin 11.71%....
Financial Highlights
Revenue and profitability: Revenue USD 129.679 million, up 3.78% YoY and 46.81% QoQ; Gross profit USD 34.546 million; Gross margin 26.64%; Operating income USD 6.972 million; Operating margin 5.38%; Net income USD 4.134 million; Net margin 3.19%; Earnings per share (EPS) USD 0.0929; EBITDA USD 15.18 million; EBITDA margin 11.71%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
129.68M |
3.78% |
46.81% |
| Gross Profit |
34.55M |
8.75% |
42.80% |
| Operating Income |
6.97M |
85.03% |
474.44% |
| Net Income |
4.13M |
65.49% |
296.30% |
| EPS |
0.09 |
71.09% |
299.78% |
Key Financial Ratios
operatingProfitMargin
5.75%
operatingCashFlowPerShare
$-0.17
freeCashFlowPerShare
$-0.24
dividendPayoutRatio
139.5%
Management Commentary
No earnings call transcript data were provided for QQ2 2025 in the supplied materials. Therefore, no management quotes or thematic highlights from the call could be included. If a transcript becomes available, key themes will be categorized by strategy, operations, and market conditions with context and significance for investors.
Forward Guidance
No explicit forward guidance was disclosed in the provided dataset. In the absence of formal targets, the outlook hinges on ongoing consumer demand for firearms, regulatory developments, and potential inflationary or supply-chain pressures. Investors should monitor management commentary for any updates on revenue mix, cost control initiatives, and capital allocation priorities (including debt management and potential share repurchases) in upcoming communications.