Stran & Company Reports 52.4% Sales Growth but Net Loss in Latest Quarter

Stran & Company, Inc. reported significant financial growth in its latest quarterly results, with total sales reaching approximately $28.7 million for the three months ended March 31, 2025, a 52.4% increase from $18.8 million in the same period last year. This growth was attributed to increased spending from existing clients and new customer acquisitions, as well as the impact of the acquisition of Gander Group Assets in August 2024. The company’s gross profit also rose to $8.5 million, representing a 51.1% increase compared to $5.6 million in the prior year, although the gross profit margin slightly decreased to 29.6% from 29.8%.

Despite the increase in sales and gross profit, Stran & Company reported a net loss of $393,000 for the first quarter of 2025, an improvement from a net loss of $487,000 in the same quarter of 2024. The loss was primarily driven by a rise in operating expenses, which increased to $9 million from $6.3 million year-over-year. The increase in operating expenses was largely due to costs associated with the integration of the Gander Group and the implementation of a new enterprise resource planning system.

Operationally, Stran & Company has seen a notable increase in its customer base, with over 2,000 active customers, although fewer than 350 are classified as program clients with ongoing contractual obligations. The company’s total assets as of March 31, 2025, were approximately $52.2 million, down from $55.1 million at the end of 2024, while total stockholders’ equity decreased to $31.3 million from $31.6 million. The decline in cash and cash equivalents to $4.2 million from $9.4 million was primarily due to cash used in operating activities.

In terms of strategic developments, Stran & Company completed the acquisition of Gander Group, which is expected to enhance its market presence in the promotional products sector. The company is also navigating challenges related to U.S. tariffs on imported goods, particularly from China, which have necessitated price adjustments and a shift in supplier strategies. Looking ahead, Stran & Company anticipates that its current cash levels will be sufficient to meet operational needs for the next 12 months, although it may seek additional financing for future growth initiatives.