Smith & Wesson (SWBI) Q4 Revenue Jumps 27%, Earnings Nearly Double

This summary was generated by AI from the company's SEC filing and may contain errors — always verify against the primary source on SEC.gov.

The short version

Smith & Wesson Brands reported fourth-quarter fiscal 2026 net sales of $178.4 million, up 26.7% year-over-year, with net income of $16.2 million, or $0.36 per share, nearly double the prior-year quarter. For the full fiscal year ended April 30, 2026, the company earned $18.5 million, or $0.41 per share, on $523.8 million in sales, a 10.4% increase, while reducing debt by $60 million.

Smith & Wesson Brands, Inc. (SWBI) reported strong results for the fourth quarter and full fiscal year 2026, ended April 30, 2026, exceeding prior-year performance across revenue, profit, and cash generation.

Fourth Quarter Results

The company posted net sales of $178.4 million in the fourth quarter, an increase of $37.6 million, or 26.7%, compared with the same quarter last year. Gross margin—the profit left after paying for manufacturing costs—improved to 29.8% from 28.8% in the prior-year quarter.

Net income came to $16.2 million, or $0.36 per diluted share, compared with $8.6 million, or $0.19 per share, in the fourth quarter of fiscal 2025. The company said the improvement reflects costs related to its manufacturing relocation, which were excluded in non-GAAP (a calculation method that adds back certain one-time items) results of $0.36 per share.

Operating cash flow in the quarter reached $74.6 million.

Full-Year Fiscal 2026 Performance

For the full year ended April 30, 2026, Smith & Wesson reported net sales of $523.8 million, up $49.2 million, or 10.4%, from the prior fiscal year. Gross margin held steady at 26.9%, essentially flat versus 26.8% in fiscal 2025.

Full-year net income was $18.5 million, or $0.41 per diluted share, compared with $13.4 million, or $0.30 per share, in the prior fiscal year. On a non-GAAP basis, the company earned $0.41 per share versus $0.33 in the prior year, after adjusting for relocation costs, a gain on the sale of real estate, and other items.

Adjusted EBITDAS (a measure of cash-based operating profit)—fell slightly to $69.2 million, or 13.2% of sales, from $64.7 million, or 13.7%, in the prior year.

Balance Sheet and Capital Allocation

Smith & Wesson reduced debt significantly during the year, repaying $60 million on its revolving credit facility (a flexible business loan it can draw on and repay as needed). The company paid $23.2 million in dividends and ended the period with $28.2 million in cash and cash equivalents.

According to the balance sheet filed with the 8-K, total debt and finance lease obligations fell to $51.3 million from $112.8 million in the prior year. Inventory levels declined to $156.3 million from $189.8 million, signaling tighter working capital management.

CEO Mark Smith said the results reflect "strong execution on our strategic priorities" and progress in new market segments. He highlighted the company's brand strength, disciplined strategy, and strengthened balance sheet as engines for future shareholder value.

Why it matters

Smith & Wesson's results show a company in accelerating growth: the Q4 revenue jump of 27% significantly outpaced the full-year gain of 10%, and profit per share more than doubled quarter-over-quarter. The combination of higher margins, reduced leverage (debt fell by $61.5 million), and strong free cash flow of $90.4 million for the year suggests the company is generating genuine cash earnings and deploying capital toward debt reduction rather than aggressive reinvestment or speculation. For a shareholder, the metrics matter: the company beat its own prior guidance and is demonstrating the pricing power and operational discipline needed to sustain a firearms business through normal market cycles. The balance-sheet improvement and dividend continuation signal confidence in forward cash generation.

Frequently asked

How much did Smith & Wesson's quarterly revenue grow?

Net sales in the fourth quarter of fiscal 2026 were $178.4 million, up $37.6 million, or 26.7%, compared with the same quarter the prior year.

Did Smith & Wesson's profit per share increase?

Yes. Diluted earnings per share for Q4 were $0.36, nearly double the $0.19 reported in the fourth quarter of fiscal 2025. For the full year, diluted EPS was $0.41, up from $0.30 in fiscal 2025.

What did the company do with its cash?

Smith & Wesson paid down $60 million on its revolving credit facility, paid $23.2 million in dividends, and invested $23.7 million in property, plant, and equipment. The company generated $114.2 million in operating cash flow for the full year.

How much debt does the company have?

As of April 30, 2026, Smith & Wesson had $19.1 million in notes and loans payable and $32.2 million in finance lease obligations, for a total of $51.3 million, down from $112.8 million at the prior fiscal year-end.

What the filing reported

2.02 Results of Operations & Financial Condition

9.01 Financial Statements & Exhibits