Smith & Wesson Revenue Rises 17% to $135.7M in Q3 FY2026 as Profit Nearly Doubles

Smith & Wesson Brands, Inc. (NASDAQ: SWBI), a firearms manufacturer, reported revenue of $135.7 million for the quarter ending January 31, 2026, up 17% from $115.9 million in the same quarter a year earlier. Net income climbed 79% to $3.8 million from $2.1 million. Read more earnings reports.

For the nine months ending January 31, 2026, revenue reached $345.5 million, up 3.5% from $333.9 million in the prior-year period. Net income for the nine-month period fell 53% to $2.3 million from $4.8 million a year earlier.

Margins and Operating Performance

Gross profit for the third quarter hit $35.6 million, a 27% jump from $27.9 million in the year-ago quarter. Gross margin expanded to 26.2% from 24.1%. Operating expenses rose 24% to $28.9 million from $23.2 million, driven by higher costs across the business.

Operating income for the quarter came in at $6.7 million, up 41% from $4.7 million. For the nine-month period, operating income fell 27% to $7.9 million from $10.8 million as operating expenses climbed 5.6% to $80.1 million.

Cash Flow Swings Positive

Smith & Wesson generated $39.6 million in cash from operations for the nine months ending January 31, 2026, a sharp reversal from negative $48.1 million in the prior-year period. Cash from investing activities was negative $23.5 million, compared to negative $11.8 million a year earlier. Cash from financing activities was negative $23.0 million versus positive $25.7 million in the prior year.

The company paid $17.5 million in dividends during the nine-month period, flat compared to $17.5 million a year earlier. Cash and cash equivalents stood at $18.4 million as of January 31, 2026, down from $25.2 million as of April 30, 2025.

Balance Sheet

Total assets declined to $538.0 million as of January 31, 2026, from $559.6 million as of April 30, 2025. Current assets fell to $261.5 million from $277.3 million. Total liabilities dropped to $174.6 million from $187.2 million, while stockholders' equity declined to $363.4 million from $372.5 million.

Accounts receivable stood at $50.8 million, down from $55.9 million. Accounts payable fell to $25.5 million from $26.9 million. The company reported 44.5 million shares outstanding as of January 31, 2026.

Financial Summary