SWBI earnings analysis
What we found in SWBI's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Smith & Wesson reported $112.6 million of revenue and $0.06 diluted EPS, beating consensus of $98.7 million and $(0.05), respectively, while revenue increased 32.5% year over year. Gross margin improved to 28.7%, but the filing notes that a non-recurring $2.9 million tariff refund contributed to the result, and free cash flow declined to negative $20.8 million from negative $12.0 million year over year. Fiscal 2027 revenue growth expectations of approximately 5%-7% were maintained, with no EPS guidance provided; sentiment is therefore neutral.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue beat estimates and prior year
- Revenue was $112.6 million, 14.1% above the $98.7 million consensus estimate and 32.5% above the $85.0 million prior-year quarter, although 36.7% below the preceding quarter's $178.0 million.
- EPS beat and turned profitable
- Diluted EPS was $0.06 versus the $(0.05) consensus estimate and $(0.08) in the prior-year quarter, representing a swing to profitability.
- Gross margin improved
- Gross margin increased to 28.7% from 25.9% in the prior-year quarter, a 2.8 percentage-point improvement. The filing discussion identified a $2.9 million non-recurring tariff refund as a contributor.
- Fiscal 2027 outlook maintained
- Management maintained its fiscal 2027 revenue growth outlook of approximately 5%-7% over fiscal 2026 and expects second-quarter sales to be roughly 10% above last year.
- Controls remained effective
- Disclosure controls and procedures were concluded effective as of July 31, 2026, and the company reported no internal-control change that materially affected or was reasonably likely to materially affect financial reporting.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Negative free cash flow
- Free cash flow was negative $20.8 million, versus negative $12.0 million in the prior-year quarter, despite the reported $0.06 diluted EPS profit. This indicates weaker cash conversion and raises working-capital and liquidity sensitivity.
- Non-recurring tariff benefit
- The $2.9 million tariff refund was described as non-recurring and contributed to the quarter's margin improvement. Excluding this benefit, reported gross margin of 28.7% may not be fully indicative of sustainable profitability.
- Demand and regulatory uncertainty
- Management maintained revenue growth expectations at approximately 5%-7% for fiscal 2027 rather than raising them after the revenue beat; the filing also anticipates second-quarter sales roughly 10% above last year. Demand and regulatory conditions remain material uncertainties.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.06
- Gross margin
- 28.7%
What they said about what is next.
Management maintained fiscal 2027 revenue growth expectations of approximately 5%-7% over fiscal 2026 and anticipates second-quarter sales roughly 10% above last year. No numeric fiscal 2027 EPS guidance was provided.
The filing reads about the same as the one before it.
What came before.
- 10-K · June 17, 2026
- Smith & Wesson Brands, Inc. reported a strong fiscal 2026, with net sales of $523.8 million and a 10.4% increase year-over-year. The gross profit also rose to $141.1 million, while net income reached $18.5 million, or…
- 10-Q · March 5, 2026
- Smith & Wesson (SWBI) delivered a quarter above expectations with net sales of $135.709 million (up from $115.885 million a year ago) and diluted EPS of $0.08 (versus $0.05 prior-year). Gross profit increased to $35.589…
- 10-Q · December 4, 2025
- Smith & Wesson reported net sales of $124.67 million and diluted EPS of $0.04 for the three months ended October 31, 2025, down from $129.68 million and $0.10 in the prior-year quarter. Gross profit fell to $30.35…
- 10-Q · September 4, 2025
- Smith & Wesson reported net sales of $85,077 (in thousands) and a net loss of $(3,411) (in thousands) for the three months ended July 31, 2025, with diluted loss per share of $(0.08). Gross profit fell to $22,074 (in…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
We read every filing SWBI makes the day it lands, and put it next to what the options market did about it. Members get both, and an alert when a filing arrives.
Cancel anytime · Month to month · Switch tiers whenever