Smith & Wesson Brands, Inc. (NASDAQ:SWBI) Reports Q4 and Full Fiscal Year 2025 Financial Results

• Earnings per Share (EPS) of $0.20 fell short of the estimated $0.23.
• Revenue of $140.76 million was below the expected $152.41 million.
• The company's gross margin declined to 28.8% from 35.5% the previous year.

Smith & Wesson Brands, Inc. (NASDAQ:SWBI), a well-known U.S. firearm manufacturer, recently disclosed its financial results for the fourth quarter and full fiscal year 2025, which concluded on April 30, 2025. Despite its strong market presence, SWBI's earnings per share (EPS) of $0.20 did not meet the anticipated $0.23, and its revenue of $140.76 million was below the forecasted $152.41 million.

During the Q4 2025 Earnings Conference Call, executives such as Deana L. McPherson and Mark Peter Smith led discussions on these financial outcomes. Participants from Lake Street Capital Markets, LLC, and Craig-Hallum Capital Group LLC engaged with the leadership to explore future prospects. The reported net sales of $140.76 million marked an 11.6% decline from the previous year's $159.2 million.

The company's gross margin for the quarter was 28.8%, a decrease from 35.5% the previous year. This decline in profitability is reflected in the GAAP net income of $8.6 million, or $0.19 per diluted share, compared to $27.3 million, or $0.59 per diluted share, in the same quarter last year. On a non-GAAP basis, net income was $9.0 million, or $0.20 per diluted share.

SWBI's financial ratios offer further insight into its market position. With a price-to-earnings (P/E) ratio of approximately 16.08, the market values its earnings moderately. The price-to-sales ratio of about 0.97 indicates that investors pay less than one dollar for each dollar of sales. The enterprise value to sales ratio is around 1.21, reflecting the company's total valuation relative to its sales.

The company's financial health is supported by a debt-to-equity ratio of about 0.40, indicating a moderate level of debt compared to equity. Additionally, a strong current ratio of approximately 4.67 suggests that Smith & Wesson can comfortably cover its short-term liabilities with its short-term assets. These metrics highlight the company's ability to manage its financial obligations despite recent earnings challenges.