Smith & Wesson Brands, Inc. (NASDAQ: SWBI) reported fourth-quarter net sales of $178.4 million for the period ended April 30, 2026, a 26.7% increase over the comparable quarter last year, as handgun demand in the sporting goods channel grew well ahead of broader industry volumes.
The company's quarterly revenue gain came against a backdrop of modest industry growth. The FBI's National Instant Criminal Background Check System, or NICS, recorded a 1.1% increase over the same period, with the company saying channel inventory levels remained largely unchanged.
#Smith & Wesson Q4 Handgun Sales Rise 23.2% in Sporting Goods Channel
Handguns represented more than 80% of units shipped in the quarter. Sporting goods channel handgun unit sales increased 23.2% over the prior-year period, according to the company's earnings release.
New products accounted for 37.5% of Q4 revenue. The company did not provide a breakdown of which product lines drove that contribution.
Q4 gross margin widened to 29.8% from 28.8% in the comparable prior-year quarter. GAAP net income for the quarter was $16.2 million, or $0.36 per diluted share, compared with $8.6 million, or $0.19 per diluted share, a year earlier.
Non-GAAP Adjusted EBITDAS for the quarter was $30.9 million, representing 17.3% of net sales, against $23.5 million, or 16.7% of net sales, in the prior-year period.
"Net sales for our fourth quarter of $178.4 million grew 26.7% above the prior year, with new products making up 37.5% of total revenue," Deana McPherson, Executive Vice President and Chief Financial Officer, Smith & Wesson Brands, said in the earnings release. "Our handgun unit sales into the sporting goods channel increased 23.2% over the prior year, while NICS increased only 1.1%, with nearly no change in channel inventory, demonstrating strong consumer preference for our products."
#Full-Year Net Sales Reach $523.8 Million as Free Cash Flow Turns Positive
For the full fiscal year ended April 30, 2026, net sales totaled $523.8 million, up 10.4% from $474.7 million in fiscal 2025. Full-year gross margin was 26.9%, compared with 26.8% in the prior fiscal year.
GAAP net income for the year was $18.5 million, or $0.41 per diluted share, versus $13.4 million, or $0.30 per diluted share, in fiscal 2025. Non-GAAP Adjusted EBITDAS was $69.2 million, or 13.2% of net sales, compared with $64.7 million, or 13.7%, in the prior year.
Full-year free cash flow was $90.4 million, compared with negative $28.8 million in fiscal 2025. The company repaid $60.0 million on its revolving credit facility and paid $23.2 million in dividends during the year.
#Board Authorizes $0.13 Quarterly Dividend for July Payment
The board of directors authorized a quarterly dividend of $0.13 per share, to be paid to stockholders of record on July 1, 2026, with payment on July 15, 2026.
Smith & Wesson Brands manufactures handguns, long guns, and suppressors under the Smith & Wesson and Gemtech brand names. The U.S. civilian firearms market is subject to demand fluctuations tied to consumer sentiment, legislative developments, and regulatory activity at federal and state levels.
Management said it expects firearm industry demand in fiscal 2027 to continue at a level that is healthy and slightly higher than in fiscal 2026, though the company cautioned that actual results could differ due to economic, social, legislative, and regulatory factors, the impact of tariffs, the potential for increased regulation of firearms, litigation exposure, and macroeconomic conditions.