SMITH & WESSON BRANDS, INC.
For the period ended Jul 31, 2026. Filed Sep 3, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jul 31, 2026 · Filed Sep 3, 2026
SWBI$14.47+0.9%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-01-31; filed 2026-03-05.
0001193125-26-093991
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-07-31; filed 2026-09-03.
0001193125-26-381911
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 84 previous paragraphs and 57 current paragraphs.
26 unchanged; 28 reworded; 3 added; 22 removed; 8 previous and 0 current paragraphs rearranged.
Tables are not compared: 15 previous and 8 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (3)
Current report
First Quarter Fiscal 2027 Highlights
Current report
Gross margin for the three months ended July 31, 2026 was 28.7% compared with 25.9% for the comparable quarter last year, primarily driven by $2.9 million in International Emergency Economic Powers Act tariff refunds received under the U.S. Customs and Border Protection's refund process. These refunds favorably impacted gross margin by approximately 260 basis points and represented a non-recurring benefit. Excluding the impact of tariff refunds, gross margin for the three months ended July 31, 2026 was 26.1%. Gross margin was also favorably impacted by fixed-cost absorption from higher production volumes, partially offset by higher labor costs.
Current report
Net Income/Loss
Removed paragraphs (22)
Previous report
Third Quarter Fiscal 2026 Highlights
Previous report
Net sales were $345.5 million, an increase of $11.6 million, or 3.5%, over the comparable period last year.
Previous report
Net income was $2.3 million, or $0.05 per diluted share, compared with net income of $4.8 million, or $0.11 per diluted share, for the comparable period last year.
Previous report
Immaterial Correction of an Error
Previous report
During the fourth quarter of fiscal 2025, we identified an immaterial error related to our accrual for certain legal expenses, resulting in an overstatement of general and administrative expenses in the interim and annual periods for the fiscal year ended April 30, 2024 and during the interim periods for the fiscal year ended April 30, 2025. In accordance with SAB No. 99, Materiality, and SAB No. 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, we evaluated the quantitative and qualitative considerations of the error and determined that the related impact was not material to the results of operations, financial position, or cash flows for any historical annual or interim period. Prior year amounts have been adjusted to correct the immaterial error, which overstated general and administrative expenses by $620,000 and $1.5 million and understated income tax expense by $181,000 and $419,000 for the three and nine months ended January 31, 2025, respectively. Related changes to net income, corresponding line items within cash provided by operating activities, and related disclosures within the notes accompanying these financial statements reflect the immaterial correction.
Previous report
Gross margin for the three months ended January 31, 2026 was 26.2% compared with 24.1% for the comparable quarter last year, primarily driven by favorable fixed-cost absorption from higher production volumes, lower promotional costs, and lower federal firearms excise taxes as a result of the favorable completion of a recent audit, partially offset by higher tariffs on imported materials and components and higher labor costs. We estimate higher tariffs negatively impacted gross margin by approximately 160 basis points when compared to the comparable quarter last year.
Previous report
Net Sales and Gross Profit – For the Nine Months Ended January 31, 2026
Previous report
The following table sets forth certain information regarding net sales and gross profit for the nine months ended January 31, 2026 and 2025 (dollars in thousands):
Previous report
Sales of our long guns decreased $20.0 million, or 25.8%, from the comparable period last year, primarily as a result of the timing of new product launches in the comparable period last year and lower consumer demand during the period. Shipments of new products represented 38.1% of long gun sales in the period. Long gun unit shipments into the sporting goods channel decreased by 19.1% from the comparable period last year while overall consumer demand for long guns decreased by 7.1% (as indicated by NICS). We believe the difference in our unit demand compared to NICS results was driven by stronger relative performance in categories in which we do not participate fully, specifically hunting.
Previous report
Other products and services revenue decreased $4.7 million, or 15.9%, from the comparable period last year, primarily because of lower business-to-business, parts, and suppressor sales; partially offset by higher e-commerce sales, which began in the third quarter of fiscal 2025.
Previous report
Newly introduced products represented 38.3% of net sales for the nine months ended January 31, 2026.
Previous report
Gross margin for the nine months ended January 31, 2026 was 25.5% compared with 25.9% for the comparable period last year, primarily driven by unfavorable fixed-cost absorption from lower production volumes, higher materials costs, and higher tariffs on imported materials and components, partially offset by favorable inventory adjustments (including standard cost revaluations, shrink, and excess inventory write downs), lower labor costs, lower promotional costs, and lower federal firearms excise taxes as a result of the favorable completion of a recent audit. We estimate higher tariffs negatively impacted gross margin by approximately 120 basis points when compared to the comparable period last year.
Previous report
Research and development expenses decreased $457,000 from the prior year comparable quarter primarily because of materials and testing costs, which were elevated in the prior year quarter, partially offset by higher labor costs and higher profit-related compensation expenses in the current quarter. Selling, marketing, and distribution expenses increased $834,000, primarily as a result of higher profit-related compensation expenses. General and administrative expenses increased $3.1 million over the prior year comparable quarter, primarily as a result of higher profit-related and stock-based compensation expenses, and higher legal expenses. During the three months ended January 31, 2025, we sold certain real estate located adjacent to our former distribution center located in Columbia, Missouri for $2.3 million, net of transaction costs, and recognized a $2.3 million pre-tax gain on sale.
Previous report
The following table sets forth certain information regarding operating income for the nine months ended January 31, 2026 and 2025 (dollars in thousands):
Previous report
Operating income for the nine months ended January 31, 2026 decreased $2.9 million from the comparable quarter last year, primarilyfor the reasons outlined above.
Previous report
Interest expense, net increased by $242,000 over the comparable period last year, primarily as a result of lower average cash balances and higher average debt balances, partially offset by lower average interest rates on debt during the nine months ended January 31, 2026 compared with the comparable period last year.
Previous report
Income tax expense decreased $61,000 from the comparable period last year, primarily as a result of lower operating income, partially offset by higher discrete items associated with stock-based compensation. Before adjusting for discrete items related to stock-based compensation, the effective tax rate was 29.0% in the current quarter and 28.2% in the prior year comparable quarter. The increase in the effective tax rate before adjusting for discrete items was due to a decrease in pre-tax profitability and changes in state apportionment.
Previous report
On July 4, 2025, the reconciliation bill, commonly known as the One Big Beautiful Bill Act, or the OBBBA, was enacted into law. The OBBBA, among other things, eliminates the requirement to capitalize U.S. research and development expenses, permanently extends certain provisions of the Tax Cuts & Jobs Act of 2017, and modifies certain international tax provisions, including changes to the foreign-derived intangible income regime, with effective dates beginning in calendar year 2025 and extending through calendar year 2027. As the OBBBA was enacted during the fiscal quarter ended July 31, 2025, we have considered and reflected the impacts on our consolidated financial statements. We do not expect the impact of these provisions to have a material impact on our consolidated financial statements.
Previous report
Net Income
Previous report
Net income for the nine months ended January 31, 2026 was $2.3 million compared with net income of$4.8 million for the comparable period last year for the reasons outlined above.
Previous report
On August 15, 2025, we entered into the First Amendment, which provides for (a) in connection with the calculation of Consolidated Funded Indebtedness (as defined in the Second Amended and Restated Credit Agreement), the exclusion of any Indebtedness (as defined in the Second Amended and Restated Credit Agreement) of the guarantors relating to a particular guaranty; (b) in connection with the calculation of Consolidated Fixed Charge Coverage Ratio (as defined in the Second Amended and Restated Credit Agreement), a one-time exclusion of cash taxes paid by the loan parties during fiscal 2026 in connection with the filing of amended tax returns in fiscal 2026 covering particular periods; and (c) an amendment to the minimum Consolidated Fixed Charge Coverage Ratio for particular measurement periods.
Previous report
During the three months ended January 31, 2026 our Board of Directors authorized, and we executed, the retirement of 31,677,994 shares of our common stock held in treasury. Upon retirement, these shares were restored to the status of authorized and unissued. As a result, the accumulated cost associated with this stock was allocated to common stock, additional paid-in capital, and retained earnings.
Reworded paragraphs (28)
Previous wording
This section generally discusses year-to-year comparisons between the three and nine months ended January 31, 2026 and 2025. A discussion of our results of operations, liquidity, and capital resources for the three and nine months ended January 31, 2025 compared to January 31, 2024 is not included in this Quarterly Report on Form 10-Q and can be found in Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Quarterly Report on Form 10-Q for the quarterly period ended January 31, 2025, filed with the Securities and Exchange Commission, or the SEC, on March 6, 2025. See also the discussion below related to an immaterial correction of an error.
Current wording
This section generally discusses year-to-year comparisons between the three months ended July 31, 2026 and 2025. A discussion of our results of operations, liquidity, and capital resources for the three months ended July 31, 2025 compared to July 31, 2024 is not included in this Quarterly Report on Form 10-Q and can be found in Item 2, "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Quarterly Report on Form 10-Q for the quarterly period ended July 31, 2025, filed with the Securities and Exchange Commission, or the SEC, on September 4, 2025.
Previous wording
Net sales were $135.7 million, an increase of $19.8 million, or 17.1%, over the comparable quarter last year.
Current wording
Net sales were $112.6 million, an increase of $27.5 million, or 32.3%, over the comparable quarter last year.
Previous wording
Gross margin was 26.2% compared with gross margin of 24.1% for the comparable quarter last year.
Current wording
Gross margin was 28.7% compared with gross margin of 25.9% for the comparable quarter last year.
Previous wording
Net income was $3.8 million, or $0.08 per diluted share, compared with $2.1 million, or $0.05 per diluted share, for the comparable quarter last year.
Current wording
Net income was $2.6 million, or $0.06 per diluted share, compared with a net loss of $3.4 million, or $0.08 per diluted share, for the comparable quarter last year.
Previous wording
Sales of our handguns increased $27.6 million, or 34.6%, over the comparable quarter last year, primarily as a result of increased shipments of newly introduced products (defined as any new SKU not shipped in the comparable period last year), a shift in product mix to higher priced models, higher consumer demand, and a 2% to 3% price increase on select products that became effective on January 1, 2026. Shipments of new products represented 44.0% of handgun sales in the quarter. Handgun unit shipments into the sporting goods channel increased by 28.0% over the comparable quarter last year while overall demand for handguns decreased by 2.2% (as indicated by adjusted background checks reported in the National Instant Criminal Background Check System, or NICS) partially due to an increase in inventory at our distributors.
Current wording
Sales of our handguns increased $18.8 million, or 29.0%, over the comparable quarter last year, primarily as a result of higher consumer demand, a shift in product mix to higher priced models, increased shipments of newly introduced products (defined as any new SKU not shipped in the comparable period last year), and a 2% to 3% price increase on select products that became effective on January 1, 2026. Shipments of new products represented 43.1% of handgun sales in the quarter. Handgun unit shipments into the sporting goods channel increased by 16.7% over the comparable quarter last year while overall demand for handguns increased by 4.7% (as indicated by adjusted background checks reported in the National Instant Criminal Background Check System, or NICS).
Previous wording
Sales of our long guns decreased $8.4 million, or 30.4%, from the comparable quarter last year, primarily as a result of the timing of new product launches in the comparable period last year and lower consumer demand during the period. Shipments of new products represented 27.5% of long gun sales in the period. Long gun unit shipments into the sporting goods channel decreased by 25.0% from the comparable quarter last year while overall demand for long guns decreased by 5.6% (as indicated by NICS). We believe the difference in our unit demand compared to NICS results was driven by stronger relative performance in categories in which we do not participate fully, specifically hunting, and a decrease in inventory at our distributors.
Current wording
Sales of our long guns increased $6.8 million, or 49.9%, over the comparable quarter last year, primarily as a result of higher consumer demand during the period and a shift in product mix to higher priced models. Shipments of new products represented 17.6% of long gun sales in the period. Long gun unit shipments into the sporting goods channel increased by 21.7% from the comparable quarter last year while overall demand for long guns increased by 10.1% (as indicated by NICS).
Previous wording
Other products and services revenue increased $605,000, or 7.2%, over the comparable quarter last year, primarily because of higher e-commerce sales.
Current wording
Other products and services revenue increased $1.9 million, or 29.0%, over the comparable quarter last year, primarily because of higher parts and suppressor sales.
Previous wording
Newly introduced products represented 38.7% of net sales for the three months ended January 31, 2026 and included four new pistols, four new long guns, and many new product line extensions.
Current wording
Newly introduced products represented 35.3% of overall net sales for the three months ended July 31, 2026 and included one new pistol, one new long gun, and many new product line extensions.
Previous wording
Inventory balances decreased $14.6 million between April 30, 2025 and January 31, 2026 as a result of our proactive inventory management and production planning efforts intended to optimize inventory levels and cash flows. While inventory levels, both internally and in the distribution channel, in excess of demand may negatively impact future operating results, it is difficult to forecast the potential impact of distributor inventories on future revenue and income as demand is impacted by many factors, including seasonality, new product introductions, news events, political events, and consumer tastes. We expect our inventory levels to decline during the remainder of the fiscal year.
Current wording
Inventory balances increased $24.4 million between April 30, 2026 and July 31, 2026 as a result of level loading of our manufacturing facilities to ensure our ability to satisfy anticipated future demand. While inventory levels, both internally and in the distribution channel, in excess of demand may negatively impact future operating results, it is difficult to forecast the potential impact of distributor inventories on future revenue and income as demand is impacted by many factors, including seasonality, new product introductions, news events, political events, and consumer tastes. We expect our inventory levels to build through the second quarter of fiscal 2027 and then decline during the remainder of the fiscal year.
Previous wording
Research and development expenses increased $247,000 over the prior year comparable period because of higher tooling-related costs, partially offset by materials and testing costs, which were elevated in the prior year period. Selling, marketing, and distribution expenses increased $420,000, primarily as a result of higher profit-related compensation expenses and one-time costs related to the grand opening event for the Smith & Wesson Academy, partially offset by lower promotional costs. General and administrative expenses increased $1.3 million over the prior year comparable period, primarily as a result of higher profit-related and higher stock-based compensation expenses, higher insurance costs, and higher legal expenses, partially offset by lower labor costs.
Current wording
Research and development expenses decreased $450,000 from the prior year comparable quarter primarily because of higher tooling costs in the prior year period, partially offset by higher compensation-related costs. Selling, marketing, and distribution expenses increased $1.4 million, primarily as a result of higher volume-related costs, including cooperative advertising and freight. General and administrative expenses increased $2.0 million over the prior year comparable quarter, primarily as a result of higher legal costs and profit-related compensation expenses.
Previous wording
Operating income for the three months ended January 31, 2026 increased $2.0 million over the comparable quarter last year, primarilyfor the reasons outlined above.
Current wording
Operating income for the three months ended July 31, 2026 increased $7.2 million over the comparable quarter last year, primarilyfor the reasons outlined above.
Previous wording
Interest expense, net decreased by $196,000 from the comparable quarter last year, primarily as a result of lower average debt balances and lower average interest rates on debt during the three months ended January 31, 2026 compared with the comparable quarter last year.
Current wording
Interest expense, net decreased by $907,000 from the comparable quarter last year, primarily as a result of lower average debt balances and lower average interest rates on debt during the three months ended July 31, 2026 compared with the comparable quarter last year.
Previous wording
Income tax expense increased $698,000 from the comparable quarter last year, primarily as a result of higher discrete items associated with stock-based compensation and higher operating income. Before adjusting for discrete items related to stock-based compensation, the effective tax rate was 28.9% in the current quarter and 30.5% in the prior year comparable quarter. The decrease in the effective tax rate before adjusting for discrete items was due to an increase in pre-tax profitability and changes in state apportionment.
Current wording
Income tax expense increased $2.1 million from the comparable quarter last year, primarily as a result of higher operating income. Before adjusting for discrete items related to stock-based compensation, the effective tax rate was 28.0% in the current quarter and 33.7% in the prior year comparable quarter. The decrease in the effective tax rate before adjusting for discrete items was primarily due to an increase in forecasted pre-tax income.
Previous wording
The following table sets forth certain information regarding net income and the related per share data for the three months ended January 31, 2026 and 2025 (dollars in thousands, except per share data):
Current wording
The following table sets forth certain information regarding net income/(loss) and the related per share data for the three months ended July 31, 2026 and 2025 (dollars in thousands, except per share data):
Previous wording
Net income for the three months ended January 31, 2026 was $3.8 million compared with$2.1 million for the comparable quarter last year for the reasons outlined above.
Current wording
Net income for the three months ended July 31, 2026 was $2.6 million compared with a net loss of$3.4 million for the comparable quarter last year for the reasons outlined above.
Previous wording
The following table sets forth certain cash flow information for the nine months ended January 31, 2026 and 2025 (dollars in thousands):
Current wording
The following table sets forth certain cash flow information for the three months ended July 31, 2026 and 2025 (dollars in thousands):
Previous wording
Cash provided by operating activities was $39.6 million for the nine months ended January 31, 2026 compared with cash used in operating activities of $48.1 million for the nine months ended January 31, 2025. The improvement was primarily driven by a $87.9 million reduction in working capital usage.
Current wording
Cash used in operating activities was $8.8 million for the three months ended July 31, 2026 compared with cash used in operating activities of $8.1 million for the three months ended July 31, 2025, primarily as a result of a $6.6 million increase in working capital usage, partially offset by higher net income.
Previous wording
Working capital usage for the nine months ended January 31, 2026 was favorably impacted by a $53.0 million reduction associated with inventory, a $15.9 million reduction associated with accounts payable, a $10.3 million reduction associated with accrued payroll and incentives, a $4.0 million reduction associated with accrued profit sharing, and a $3.4 million reduction associated with accounts receivable.
Current wording
Working capital usage for the three months ended July 31, 2026 was unfavorably impacted by an $11.2 million increase associated with inventory, a $7.2 million increase associated with accrued payroll and incentives, a $4.3 million increase associated with accounts receivable, a $9.5 million reduction associated with accounts payable, and a $2.1 million reduction associated with accrued expenses and deferred revenue.
Previous wording
Cash used in investing activities increased $11.7 million for the nine months ended January 31, 2026 compared with the prior year period, primarily as a result of a $4.6 million increase in capital expenditures, largely related to the Smith & Wesson Academy, $4.6 million of purchases of marketable securities during the nine months ended January 31, 2026, and $2.3 million of proceeds included in the prior year period related to the sale of certain real estate located adjacent to our former distribution center located in Columbia, Missouri during the nine months ended January 31, 2025.
Current wording
Cash used in investing activities increased $5.8 million for the three months ended July 31, 2026 compared with the prior year period, primarily as a result of a $7.6 million increase in capital expenditures, largely for machinery and equipment to expand capacity and increase operational efficiency.
Previous wording
We currently expect to spend $25.0 million to $30.0 million on capital expenditures in fiscal 2026.
Current wording
We currently expect to spend $45.0 million to $50.0 million on capital expenditures in fiscal 2027.
Previous wording
Cash used by financing activities was $23.0 million for the nine months ended January 31, 2026 compared with $25.7 million of cash provided by financing activities for the nine months ended January 31, 2025. Cash used by financing activities during the nine months ended January 31, 2026 was primarily the result of $17.4 million in dividend distributions, and $5.0 million in net repayments under our revolving line of credit. Cash provided by financing activities for the nine months ended January 31, 2025 was primarily the result of $70.0 million of net borrowings, partially offset by $25.5 million of stock repurchases and $17.4 million in dividend distributions. We had no stock repurchases during the nine months ended January 31, 2026.
Current wording
Cash provided by financing activities was $12.6 million for the three months ended July 31, 2026 compared with $8.3 million of cash provided by financing activities for the three months ended July 31, 2025. Cash provided by financing activities during the three months ended July 31, 2026 was primarily the result of $20.0 million in net borrowings under our revolving line of credit, partially offset by $6.0 million in dividend distributions. Cash provided by financing activities for the three months ended July 31, 2025 was primarily the result of $15.0 million of net borrowings, partially offset by $5.9 million in dividend distributions.
Previous wording
Credit Facilities — We entered into the Second Amended and Restated Credit Agreement on October 3, 2024. The Second Amended and Restated Credit Agreement provides for a revolving line of credit of $175.0 million at any one time, or the Revolving Line. The Revolving Line bears interest at either the Base Rate (as defined in the Second Amended and Restated Credit Agreement) or the Adjusted Term SOFR rate, plus an applicable margin based on our consolidated leverage ratio. The Second Amended and Restated Credit Agreement also provides a swingline facility in the maximum amount of $5.0 million at any one time (subject to availability under the Revolving Line). Each Swingline Loan (as defined in the Second Amended and Restated Credit Agreement) bears interest at the Base Rate, plus an applicable margin based on our Adjusted Consolidated Leverage Ratio (as defined in the Second Amended and Restated Credit Agreement). Subject to the satisfaction of certain terms and conditions described in the Second Amended and Restated Credit Agreement, we have an option to increase the Revolving Line by an aggregate amount not exceeding $50.0 million. The Revolving Line matures on the earlier of October 3, 2029 or the date that is six months in advance of the earliest maturity of any Permitted Notes (as defined in the Second Amended and Restated Credit Agreement) under the Second Amended and Restated Credit Agreement.
Current wording
Credit Facilities — We entered into the Second Amended and Restated Credit Agreement on October 3, 2024. The Second Amended and Restated Credit Agreement provides for a revolving line of credit of $175.0 million at any one time, or the Revolving Line. The Revolving Line bears interest at either the Base Rate (as defined in the Second Amended and Restated Credit Agreement) or the Adjusted Term SOFR rate (as defined in the Second Amended and Restated Credit Agreement), plus an applicable margin based on our consolidated leverage ratio. The Second Amended and Restated Credit Agreement also provides a swingline facility in the maximum amount of $5.0 million at any one time (subject to availability under the Revolving Line). Each Swingline Loan (as defined in the Second Amended and Restated Credit Agreement) bears interest at the Base Rate, plus an applicable margin based on our Adjusted Consolidated Leverage Ratio (as defined in the Second Amended and Restated Credit Agreement). Subject to the satisfaction of certain terms and conditions described in the Second Amended and Restated Credit Agreement, we have an option to increase the Revolving Line by an aggregate amount not exceeding $50.0 million. The Revolving Line matures on the earlier of October 3, 2029 or the date that is six months in advance of the earliest maturity of any Permitted Notes (as defined in the Second Amended and Restated Credit Agreement) under the Second Amended and Restated Credit Agreement.
Previous wording
As of January 31, 2026, we had $75.0 million of borrowings outstanding on the Revolving Line, bearing interest at an average rate of 5.75%, which is equal to the Adjusted Term SOFR rate plus an applicable margin.
Current wording
As of July 31, 2026, we had $40.0 million of borrowings outstanding on the Revolving Line, bearing interest at a weighted average rate of 5.42%, which is equal to the Adjusted Term SOFR rate plus an applicable margin.
Previous wording
The Second Amended and Restated Credit Agreement contains financial covenants relating to maintaining maximum leverage and minimum debt service coverage. We were in compliance with all debt covenants as of January 31, 2026.
Current wording
The Second Amended and Restated Credit Agreement for the Revolving Line contains financial covenants relating to maintaining a minimum Consolidated Fixed Charge Coverage Ratio and a maximum Adjusted Consolidated Leverage Ratio. We were in compliance with all debt covenants as of July 31, 2026.
Previous wording
Share Repurchase Programs — On September 19, 2023, our Board of Directors authorized the repurchase of up to $50.0 million of our common stock, subject to certain conditions, in the open market or in privately negotiated transactions through September 19, 2024, or the 2023 Authorization. During fiscal 2025, we purchased 1,531,763 shares of our common stock for $21.4 million under the 2023 Authorization. The 2023 Authorization expired on September 19, 2024. On September 5, 2024, our Board of Directors authorized the repurchase of up to $50.0 million of our common stock, subject to certain conditions, in the open market or in privately negotiated transactions from September 20, 2024 through September 20, 2025, or the 2024 Authorization. As of January 31, 2026, we had repurchased 312,310 shares of our common stock for $4.1 million under the 2024 Authorization. On September 15, 2025, our Board of Directors authorized the repurchase of up to $50.0 million of our common stock, subject to certain conditions, in the open market or in privately negotiated transactions from September 21, 2025 through September 21, 2026, or the 2025 Authorization. As of January 31, 2026, we had not repurchased any shares of our common stock under the 2025 Authorization.
Current wording
Share Repurchase Programs — On September 5, 2024, our Board of Directors authorized the repurchase of up to $50.0 million of our common stock, subject to certain conditions, in the open market or in privately negotiated transactions from September 20, 2024 through September 20, 2025, or the 2024 Authorization. As of September 20, 2025, we had repurchased 312,310 shares of our common stock for $4.1 million under the 2024 Authorization. On September 15, 2025, our Board of Directors authorized the repurchase of up to $50.0 million of our common stock, subject to certain conditions, in the open market or in privately negotiated transactions from September 21, 2025 through September 21, 2026, or the 2025 Authorization. We have not had any repurchases of our common stock under the 2025 Authorization.
Previous wording
During the three and nine months ended January 31, 2026, there were no common stock repurchases. During the three months ended January 31, 2025, we repurchased a total of 219,773 shares of our common stock for $2.8 million. During the nine months ended January 31, 2025, we repurchased a total of 1,844,073 shares of our common stock for $25.5 million.
Current wording
During the three months ended July 31, 2026 and 2025, there were no common stock repurchases.
Previous wording
Our future capital requirements will depend on many factors, including net sales, the timing and extent of spending to support product development efforts, the expansion of sales and marketing activities, the timing of introductions of new products and enhancements to existing products, the costs to ensure access to adequate manufacturing capacity, and costs related to the Relocation. Future equity or debt financing may not be available to us on acceptable terms or at all. If sufficient funds are not available or are not available on acceptable terms, our ability to take advantage of unexpected business opportunities or to respond to competitive pressures could be limited or severely constrained.
Current wording
Our future capital requirements will depend on many factors, including net sales, the timing and extent of spending to support product development efforts, the expansion of sales and marketing activities, the timing of introductions of new products and enhancements to existing products, and the costs to ensure access to adequate manufacturing capacity. Future equity or debt financing may not be available to us on acceptable terms or at all. If sufficient funds are not available or are not available on acceptable terms, our ability to take advantage of unexpected business opportunities or to respond to competitive pressures could be limited or severely constrained.
Previous wording
As of January 31, 2026, we had $18.4 million in cash and cash equivalents on hand. Based upon our current working capital position, current operating plans, and expected business conditions, we believe that our existing capital resources and credit facilities will be adequate to fund our operations for at least the next 12 months.
Current wording
As of July 31, 2026, we had $18.7 million in cash and cash equivalents on hand. Based upon our current working capital position, current operating plans, and expected business conditions, we believe that our existing capital resources and credit facilities will be adequate to fund our operations for at least the next 12 months.
Rearranged previous paragraphs (8)
Previous report — wording carried elsewhere
Our operating results for the nine months ended January 31, 2026 included the following:
Previous report — wording carried elsewhere
Gross margin was 25.5% compared with gross margin of 25.9% for the comparable period last year.
Previous report — wording carried elsewhere
The following table sets forth certain information regarding firearm units shipped by trade channel for the nine months ended January 31, 2026 and 2025 (units in thousands):
Previous report — wording carried elsewhere
Sales of our handguns increased $36.3 million, or 16%, over the comparable period last year, primarily as a result of increased shipments of newly introduced products, higher consumer demand, and a 2% to 3% price increase on select products that became effective on January 1, 2026. Shipments of new products represented 42.0% of handgun sales in the period. Handgun unit shipments into the sporting goods channel increased by 17.2% over the comparable period last year while overall consumer handgun demand was largely flat (as indicated by NICS).
Previous report — wording carried elsewhere
The following table sets forth certain information regarding operating expenses for the nine months ended January 31, 2026 and 2025 (dollars in thousands):
Previous report — wording carried elsewhere
The following table sets forth certain information regarding interest expense, net for the nine months ended January 31, 2026 and 2025 (dollars in thousands):
Previous report — wording carried elsewhere
The following table sets forth certain information regarding income tax expense for the nine months ended January 31, 2026 and 2025 (dollars in thousands):
Previous report — wording carried elsewhere
The following table sets forth certain information regarding net income and the related per share data for the nine months ended January 31, 2026 and 2025 (dollars in thousands, except per share data):