Stran 2025 Q3 Earnings 29% Revenue Growth and 39.2% Reduced Net Loss

Stran (SWAG) reported fiscal 2025 Q3 earnings on Nov 13, 2025, with revenue surging 29% to $25.98 million, exceeding expectations. The company narrowed its net loss by 39.2% to $1.24 million, marking improved profitability despite ongoing annual losses. Management expressed confidence in Q4’s historical strength and long-term margin expansion through disciplined growth and M&A.

Revenue

Stran’s total revenue for Q3 2025 reached $25.98 million, a 29.0% increase from $20.14 million in the prior-year period. The Stran segment contributed $17.6 million in Q3, driven by higher client spending and new enterprise accounts, while the Stran Loyalty Solutions (SLS) segment, bolstered by the Gander Group acquisition, added $8.3 million. Year-to-date sales for the first nine months of 2025 totaled $87.3 million, reflecting a 56.7% growth from $55.7 million in 2024, with the SLS segment’s nine-month revenue jumping to $26.9 million from $3.5 million in the prior year.

Earnings/Net Income

The company reduced its net loss to $1.24 million ($0.07 per share) in Q3 2025, a 39.2% improvement from $2.04 million ($0.11 per share) in Q3 2024. Year-to-date net losses narrowed to $1.0 million from $3.6 million, while EBITDA improved to a $400,000 loss from a $3.2 million deficit. The EPS reduction indicates progress, though the company has sustained losses for five consecutive years, underscoring ongoing financial challenges.

Price Action

Stran’s stock price declined 6.14% on the latest trading day but surged 38.19% weekly and 56.25% month-to-date. Historically, a 30-day holding strategy post-earnings yielded cumulative returns of 24.78% over three years, averaging 7.92% annually. This approach mitigated short-term volatility, offering stability compared to day-trading tactics.

CEO Commentary

CEO Andrew Shape highlighted a 29% YoY revenue increase to $26 million and a 56.7% nine-month sales rise to $87.3 million. The Gander Group acquisition elevated SLS revenue to $26.9 million and improved EBITDA by $2.8 million year-to-date. Shape emphasized margin compression from tariffs and buyer hesitation but expressed confidence in Q4’s potential. Strategic priorities include deepening client relationships, digital capabilities, and “transformative acquisitions,” alongside disciplined expense management and share repurchases.

Guidance

Management declined to provide explicit Q4 guidance but expressed confidence in sustained profitability and margin expansion. Reduced nine-month net losses ($1.0M vs. $3.6M in 2024) and a $11.8M cash reserve were cited as strengths. Qualitative expectations focus on operational efficiencies, high-synergy M&A, and maintaining a debt-free balance sheet.

Additional News

1. M&A Activity: The acquisition of Gander Group in August 2024 significantly boosted the SLS segment’s revenue to $26.9 million, enhancing Stran’s presence in casino, gaming, and hospitality markets.

2. Board Appointments: Veteran financial executive Brian M. Posner was appointed to the Board of Directors as Chairman of the Audit Committee, bringing expertise in M&A and compliance.

3. Corporate Recognition: Stran was named one of PPAI’s “Greatest Companies to Work For” in 2025, reflecting its commitment to employee engagement and operational excellence.

The company also announced $408,000 in Q3 share repurchases, underscoring its capital allocation strategy amid a $11.8M cash position.