Smith Wesson Brands Inc (SWBI) Q2 2026 Earnings Report

Smith & Wesson reported Q2 FY2026 net sales of $124.7 million, down 3.9% year-over-year, with gross profit of $30.3 million (24.3% gross margin). Operating income was $4.1 million (3.3% margin) and net income was $1.9 million (1.5% margin), or $0.043 diluted EPS. Adjusted EBITDA was $12.1 million (9.7% margin). The quarter showed strong operating cash generation (+$27.3 million) driven largely by working-capital improvement and deliberate inventory reductions. Inventory declined sequentially and year-over-year to $183.1 million. The balance sheet remains liquid with cash and short-term investments of $27.3 million and total stockholders’ equity of $363.2 million; total debt is ~$123.6 million (net debt ~$101.1 million). Management reiterated a focus on innovation, inventory discipline and capital allocation, and provided near-term guidance calling for Q3 revenue growth of 8%–10% year-over-year and expected improvement in gross margin. Key near-term risks include input-cost/tariff exposure, seasonality in long-gun demand, and regulatory uncertainty.