Smith & Wesson Brands | 10-Q: FY2026 Q2 Revenue Beats Estimate at USD 124.67 M

Revenue: As of FY2026 Q2, the actual value is USD 124.67 M, beating the estimate of USD 123.73 M.

EPS: As of FY2026 Q2, the actual value is USD 0.04.

EBIT: As of FY2026 Q2, the actual value is USD 5.5 M.

Segment Revenue

• Handguns: Revenue for the three months ended October 31, 2025, was $90.8 million, a decrease of 3.2% from the previous year. For the six months ended October 31, 2025, revenue increased by 5.9% to $155.7 million.
• Long Guns: Revenue for the three months ended October 31, 2025, was $24.7 million, a decrease of 1.8% from the previous year. For the six months ended October 31, 2025, revenue decreased by 23.2% to $38.3 million.
• Other Products & Services: Revenue for the three months ended October 31, 2025, was $9.2 million, a decrease of 14.1% from the previous year. For the six months ended October 31, 2025, revenue decreased by 25.2% to $15.8 million.

Operational Metrics

• Net Income: For the three months ended October 31, 2025, net income was $1.9 million, a decrease from $4.5 million in the previous year. For the six months ended October 31, 2025, there was a net loss of $1.5 million compared to a net income of $2.7 million in the previous year.
• Gross Margin: For the three months ended October 31, 2025, the gross margin was 24.3%, down from 26.6% in the previous year. For the six months ended October 31, 2025, the gross margin was 25.0%, down from 26.9% in the previous year.
• Operating Income: For the three months ended October 31, 2025, operating income was $4.1 million, a decrease of 45.4% from the previous year. For the six months ended October 31, 2025, operating income was $1.2 million, a decrease of 80.7% from the previous year.

Cash Flow

• Operating Cash Flow: For the six months ended October 31, 2025, cash provided by operating activities was $19.2 million, compared to cash used of $38.2 million in the previous year.
• Investing Cash Flow: Cash used in investing activities was - $19.9 million for the six months ended October 31, 2025, compared to - $7.9 million in the previous year.
• Financing Cash Flow: Cash used in financing activities was - $2.1 million for the six months ended October 31, 2025, compared to cash provided of $24.3 million in the previous year.

Future Outlook and Strategy

• Core Business Focus: The company expects inventory levels to decline during the remainder of the fiscal year and plans to spend $25.0 million to $30.0 million on capital expenditures in fiscal 2026.
• Non-Core Business: The company has not repurchased any shares under the 2025 Authorization as of October 31, 2025, and plans to continue its share repurchase program through September 21, 2026.