Stran | 10-K: FY2025 Revenue: USD 116.19 M

Revenue: As of FY2025, the actual value is USD 116.19 M.

EPS: As of FY2025, the actual value is USD -0.04.

EBIT: As of FY2025, the actual value is USD -2.253 M.

Total Company Performance

• Total Sales: Increased 40.6% to $116.2 million in 2025 from $82.7 million in 2024.
• Total Cost of Sales: Increased 44.2% to $82.0 million in 2025 from $56.8 million in 2024. As a percentage of sales, total cost of sales increased to 70.5% in 2025 from 68.8% in 2024.
• Total Gross Profit: Increased 32.6% to $34.2 million in 2025 from $25.8 million in 2024.
• Total Gross Margin: Decreased to 29.5% in 2025 from 31.2% in 2024.
• Total Operating Expenses: Increased 17.8% to $36.2 million in 2025 from $30.7 million in 2024. As a percentage of sales, operating expenses decreased to 31.1% in 2025 from 37.2% in 2024.
• Loss from Operations: -$2.0 million in 2025 compared to -$4.9 million in 2024.
• Other Income: $1.3 million in 2025, an increase from $759 thousand in 2024, primarily due to the reversal of a receivable allowance.
• Net Loss: -$0.7 million in 2025, an improvement from -$4.1 million in 2024.

Stran Segment Performance

• Sales: Increased 12.9% to $82.1 million in 2025 from $72.7 million in 2024, driven by higher spending from existing clients and new customers.
• Cost of Sales: Increased to $55.1 million in 2025 from $49.0 million in 2024.
• Gross Profit: Increased 13.9% to $27.0 million in 2025 from $23.7 million in 2024.
• Gross Margin: Increased to 32.9% in 2025 from 32.7% in 2024.
• Operating Expenses: Increased 2.6% to $28.3 million in 2025 from $27.6 million in 2024, primarily due to increased legal and accounting expenses, headcount, and e-commerce platform costs. As a percentage of sales, operating expenses decreased to 34.5% in 2025 from 37.9% in 2024.

Stran Loyalty Solutions (SLS) Segment Performance

• Sales: Increased 242.6% to $34.1 million in 2025 from $9.9 million in 2024, primarily due to the full-year inclusion of Gander Group Assets acquired in August 2024.
• Cost of Sales: Increased to $26.9 million in 2025 from $7.9 million in 2024.
• Gross Profit: Increased 247.3% to $7.2 million in 2025 from $2.1 million in 2024.
• Gross Margin: Increased to 21.1% in 2025 from 20.8% in 2024. The SLS segment operates at a lower gross margin than the Stran segment.
• Operating Expenses: Increased 152.6% to $7.9 million in 2025 from $3.1 million in 2024, primarily due to the full-year inclusion of Gander Group Assets. As a percentage of sales, operating expenses decreased to 23.1% in 2025 from 31.4% in 2024.

Cash Flow

• Net Cash Used in Operating Activities: -$4.7 million in 2025, compared to net cash provided by operating activities of $2.8 million in 2024. This change was mainly due to increased inventory, decreased accounts payable and accrued expenses, and a decrease in rewards program liability, partially offset by a decrease in accounts receivable.
• Net Cash Provided by Investing Activities: $3.2 million in 2025, compared to net cash used in investing activities of -$0.5 million in 2024, primarily due to the absence of business acquisition outlays in 2025.
• Net Cash Used in Financing Activities: -$1.1 million in 2025, compared to -$0.9 million in 2024, mainly due to decreased installment payment liabilities, common stock repurchases, and payment of contingent earn-out liabilities.
• Cash and Cash Equivalents: Ended at $6.8 million in 2025, down from $9.4 million in 2024.

Unique Metrics

• Program Clients vs. Transactional Customers: Program clients generated 83.0% of total revenue in 2025 and 83.3% in 2024. Less than 350 of over 2,000 active customers are program clients.
• Customer Concentration: The largest customer accounted for 7.2% of total revenue in 2025 and 8.4% in 2024. The top 10 customers contributed 35.7% of revenue in 2025 and 38.1% in 2024.
• Rewards Program Liability: -$1.5 million in 2025, a decrease from -$6.0 million in 2024.

Outlook / Guidance

Stran & Company, Inc. anticipates current cash levels will be sufficient for operations and payment obligations for the 12 months ending December 31, 2026, and beyond. However, additional cash resources may be needed for expansion or potential investments. The company’s ability to mitigate the effects of U.S. tariffs is limited, which could negatively impact future sales and gross margins.