We are very pleased with our third quarter results, which demonstrated continued market share growth while simultaneously maintaining resiliency in our pricing power and profitability.
— Mark Smith, President & CEO
03Detailed Report
0HEM.L
Smith Wesson Brands Inc
Period
Q3 2026
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 29, 2026
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Executive Summary
Smith & Wesson reported revenue of $135.7m in Q3 FY2026, up 17.1% year-over-year driven by handgun unit growth and higher average selling prices. Gross margin expanded to 26.2% (up ~210 bps YoY). Operating income was $6.5m and net income $3.8m; diluted EPS was $0.083. The company generated strong operating cash flow of $20.5m and free cash flow of $16.8m in the quarter, used excess cash to reduce debt and pay dividends. Inventory remains large in absolute terms but declined year-over-year; management reports distributor weeks of supply stable at ~9 weeks. Management reiterated positive near-term demand and provided Q4 FY2026 guidance of revenue growth of 10–12% and improved gross margin. Key investor considerations: improving profitability and strong cash conversion versus still modest net margins, meaningful inventory and leverage levels, ongoing regulatory and demand cyclicality in the firearms market.