Smith & Wesson Brands, Inc. Reports First Quarter Fiscal 2027 Financial Results
SMITH & WESSON BRANDS, INC. (SWBI) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Smith & Wesson Brands, Inc. Reports First Quarter Fiscal 2027 Financial Results - Q1 Net Sales of $112.6 Million - Q1 Gross Margin of 28.7% - Q1 EPS of $0.06/Share MARYVILLE, Tenn., September 3, 2026 – Smith & Wesson Brands, Inc. (NASDAQ Global Select: SWBI) , a U.S.
How this was made
The 30-second read
Why it matters
SWBI’s profitability improved materially year over year, and management provided explicit Q2 and full-year revenue growth expectations. The tariff refund tailwind is flagged as non-recurring, which may affect how much of the margin expansion is sustainable.
Market read
Traders can update valuation and positioning based on the fresh earnings print, margin trajectory, and the stated Q2 outperformance and FY revenue growth range.
What to watch
The release notes a methodology change affecting Adjusted EBITDAS and excludes relocation costs; traders should reconcile GAAP vs non-GAAP trends and watch for any follow-through in professional vs consumer channels.
Q1 Net Sales of $112.6 Million; Q1 Gross Margin of 28.7%; Q1 EPS of $0.06/Share
Net sales increased 32.3% year over year, gross margin expanded to 28.7%, and GAAP net income turned positive at $2.6 million, or $0.06 per diluted share. The quarter included a non-recurring $2.9 million tariff-refund benefit, while operating cash flow and free cash flow remained negative.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $112.6M | – | 32.3% |
| Cost of salesGAAP | 80,317 | – | – |
| Gross profitGAAP | $32.27M | – | – |
| Gross marginGAAP | 28.7% | – | – |
| Non-GAAP gross profitnon-GAAP | $32.27M | – | – |
| Non-GAAP gross marginnon-GAAP | 28.7% | – | – |
| Research and development expenseGAAP | 2,557 | – | – |
| Selling, marketing, and distribution expenseGAAP | 10,158 | – | – |
| General and administrative expenseGAAP | 15,338 | – | – |
| Total operating expensesGAAP | 28,053 | – | – |
| Non-GAAP operating expensesnon-GAAP | $28.05M | – | – |
| Operating income/(loss)GAAP | 4,217 | – | – |
| Operating marginGAAP | 3.7% | – | – |
| Non-GAAP operating incomenon-GAAP | $4.22M | – | – |
| Non-GAAP operating marginnon-GAAP | 3.7% | – | – |
| Income/(loss) before income taxesGAAP | 4,017 | – | – |
| Income tax expense/(benefit)GAAP | 1,429 | – | – |
| Net income/(loss)GAAP | $2.59M | – | – |
| Net income/(loss) marginGAAP | 2.3% | – | – |
| Diluted net income/(loss) per shareGAAP | $0.06 | – | – |
| Non-GAAP net incomenon-GAAP | $2.59M | – | – |
| Non-GAAP net income marginnon-GAAP | 2.3% | – | – |
| Non-GAAP net income per share - dilutednon-GAAP | $0.06 | – | – |
| Non-GAAP Adjusted EBITDASnon-GAAP | $13.77M | – | – |
| Non-GAAP Adjusted EBITDAS Marginnon-GAAP | 12.2% | – | – |
| Net cash used in operating activitiesGAAP | −$8.85M | – | – |
| Payments to acquire property and equipmentGAAP | (11,929) | – | – |
| Free cash flownon-GAAP | −$20.77M | – | – |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
second quarter fiscal 2027 and fiscal 2027 outlook
- Revenuesecond quarter sales roughly 10% above last year; fiscal 2027 revenue will grow approximately 5-7% over fiscal 2026
- NoteThe company expects its second quarter to significantly outperform last year on both the top and bottom lines.
- NoteThe company continues to expect a normal seasonal environment and strong demand for its products.
Capital returns
- The board of directors authorized a $0.13 per share quarterly dividend.
- The dividend will be paid to stockholders of record on September 17, 2026, with payment to be made on October 1, 2026.
- Dividend distribution was $(5,961) for the three months ended July 31, 2026, compared with $(5,855) for the three months ended July 31, 2025.
What drove it
- The company cited continued solid demand in both the consumer and professional channels.
- Management attributed results to innovation, industry partnerships, operational execution, and the Smith & Wesson brand.
- The company received $2.9 million in tariff refunds, which favorably impacted gross margin by approximately 260 basis points.
- The tariff refunds represented a non-recurring benefit.
Concerns
- Free cash flow was $(20,775), compared with $(12,401).
- Inventories increased to 180,661 from 156,250 as of April 30, 2026.
- Notes and loans payable increased to 39,185 from 19,121 as of April 30, 2026.
- The company identified the impact of tariffs, firearms regulation, demand, raw-material and component costs, relocation execution, and potential backlog order cancellations among its risks.
What to watch
- Whether second-quarter sales are roughly 10% above last year.
- Whether fiscal 2027 revenue grows approximately 5-7% over fiscal 2026.
- Gross-margin performance after the non-recurring $2.9 million tariff refunds and approximately 260-basis-point benefit.
- Inventory levels, operating cash flow, free cash flow, and notes and loans payable.
Balance sheet and cash flow
- Cash and cash equivalents were $18,699 as of July 31, 2026, compared with $28,190 as of April 30, 2026.
- Marketable securities were 6,536 as of July 31, 2026, compared with 5,162 as of April 30, 2026.
- Accounts receivable were 29,711 as of July 31, 2026, compared with 40,014 as of April 30, 2026.
- Inventories were 180,661 as of July 31, 2026, compared with 156,250 as of April 30, 2026.
- Notes and loans payable were 39,185 as of July 31, 2026, compared with 19,121 as of April 30, 2026.
- Finance lease payable, net of current portion, was 31,676 as of July 31, 2026, compared with 32,163 as of April 30, 2026.
- Total assets were $523,304 as of July 31, 2026, compared with $512,766 as of April 30, 2026.
- Total liabilities were 149,602 as of July 31, 2026, compared with 136,207 as of April 30, 2026.
- Net cash used in operating activities was $(8,846), compared with $(8,110).
- Net cash used in investing activities was $(13,237), compared with $(7,464).
- Net cash provided by financing activities was 12,592, compared with 8,307.
- Net decrease in cash and cash equivalents was $(9,491), compared with $(7,267).
- Proceeds from loans and notes payable were 20,000, compared with 20,000.
Analysis
Smith & Wesson opened fiscal 2027 with net sales of $112,587, up 32.3% from $85,077 in the comparable quarter last year. Management cited solid demand in consumer and professional channels and attributed the performance to innovation, industry partnerships, operational execution, and brand strength. No segment revenue disclosures were provided in the release.
GAAP gross profit was $32,270 and gross margin was 28.7%, compared with $22,074 and 25.9% a year earlier. The company received $2.9 million in tariff refunds during the quarter, which favorably impacted gross margin by approximately 260 basis points and was characterized as non-recurring. GAAP operating income was 4,217, compared with an operating loss of (2,958), while GAAP net income was $2,588, compared with a net loss of $(3,411). Diluted GAAP EPS was $0.06 versus $(0.08).
Non-GAAP results were largely aligned with GAAP in the current period because no relocation expenses were reported in the reconciliations. Non-GAAP Adjusted EBITDAS was $13,765, or 12.2% of net sales, compared with $7,413, or 8.7% of net sales. The company also changed its Adjusted EBITDAS methodology beginning with the fourth quarter of fiscal 2026 presentation to adjust for both interest expense and interest income. For the three months ended July 31, 2026, that change decreased Adjusted EBITDAS by $547,000 versus the prior methodology.
Cash generation remained a key counterpoint. Net cash used in operating activities was $(8,846), payments to acquire property and equipment were (11,929), and free cash flow was $(20,775). Inventories rose to 180,661 from 156,250 at April 30, 2026, while notes and loans payable rose to 39,185 from 19,121. Cash and cash equivalents declined to $18,699 from $28,190.
For the second quarter, management expects sales roughly 10% above last year and expects significant outperformance on both the top and bottom lines. For fiscal 2027, it continues to expect revenue growth of approximately 5-7% over fiscal 2026. The board authorized a $0.13 per share quarterly dividend, payable on October 1, 2026 to stockholders of record on September 17, 2026. Attention should center on the durability of demand, gross margin after the tariff-refund benefit, inventory and cash-flow trends, and delivery against the stated revenue outlook.
Management, verbatim
We are off to an excellent start to fiscal 2027. Continued solid demand for our products in both the consumer and professional channels in the first quarter were a direct result of our purposeful focus on innovation, the strength of our industry partnerships, operational execution, and the power of the iconic Smith & Wesson brand.
Mark Smith, President and Chief Executive Officer
With this momentum, we expect our second quarter to significantly outperform last year on both the top and bottom lines.
Mark Smith, President and Chief Executive Officer
We continue to expect a normal seasonal environment and strong demand for our products, resulting in anticipated sales for the second quarter of roughly 10% above last year. For the full year, we continue to expect that our fiscal 2027 revenue will grow approximately 5-7% over fiscal 2026.
Deana McPherson, Executive Vice President and Chief Financial Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons were not reported for the disclosed operating metrics.
- Segment revenue and segment profitability were not reported.
- Share repurchases were not reported.
- Numeric guidance for gross margin, operating expenses, tax rate, EPS, cash flow, or capital expenditures was not reported.
- A previous outlook section was not provided, so comparison with prior guidance is unavailable.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC 8-K furnishing Smith & Wesson’s Q1 fiscal 2027 results (quarter ended July 31, 2026) and related guidance plus dividend authorization.
Ticker impact
Smith & Wesson reported Q1 FY2027 net sales of $112.6M (+32.3% YoY), gross margin 28.7%, and EPS $0.06, plus Q2 and FY guidance.
Near-term upside bias as traders price in the Q2 outperformance expectation and improved margins, with attention to tariff refund normalization.
The filing includes fresh, company-specific earnings numbers and explicit forward guidance (Q2 roughly +10% YoY sales, FY revenue +5-7% YoY) plus a margin tailwind from $2.9M tariff refunds.
Market effects
Firearms and consumer-defense demand read-through may improve as SWBI shows margin expansion and stronger earnings power.
Limited, primarily US-listed small-cap defense-manufacturing sentiment.
Low, as the disclosure is company-specific and tariff refunds are framed as a US-related factor.
Counterpoint
Tariff refunds boosted gross margin by about 260 bps as a non-recurring item, so normalized margins could disappoint if demand weakens.
Key entities
- issuerSmith & Wesson Brands, Inc.
Reported Q1 FY2027 financial results, margin expansion, and issued Q2 and FY revenue guidance; authorized a $0.13 quarterly dividend.
- executiveMark Smith
CEO quote emphasizing demand strength and innovation/partnership execution driving the quarter.
- executiveDeana McPherson
CFO quote providing Q2 sales expectation and FY revenue growth range.
