Short answer
SMITH & WESSON BRANDS, INC. (SWBI) filed its fiscal 2026 10-K annual report with the SEC on Jun 17, 2026. It reported revenue of $524M (+10.4% year over year) and net income of $18M.
- Top risk flagged: Regulatory risk from ongoing enforcement under state "gun industry accountability" laws; company is defendant in an active civil lawsuit
FY2026 key financial metrics · XBRL
- Revenue
- $524M
- +10.4% YoY
- Net income
- $18M
- +37.7% YoY
- Operating margin
- 5.6%
- +0.5 pp YoY
- Gross margin
- 26.9%
- +0.1 pp YoY
- EPS (diluted)
- $0.41
- +36.7% YoY
- ROE
- 4.9%
- +1.3 pp YoY
- Operating cash flow
- $114M
- +1681.0% YoY
Source: XBRL data from the SMITH & WESSON BRANDS, INC. (SWBI) FY2026 10-K on SEC EDGAR. USD.
SMITH & WESSON BRANDS, INC. FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: Design and manufacture of firearms, firearm-related products, and manufacturing services under Smith & Wesson and Gemtech brands
- New product introductions in fiscal 2026: expanded Model 1854 Lever-Action Rifle calibers, new micro handgun variants (BodyGuard 2.0 series), steel frame M&P HD pistols, and innovative Gemtech Nebula 5.7 suppressor
- Strategic shift: Headquarters and significant operations relocation to Maryville, Tennessee completed in January 2024, consolidating distribution and manufacturing assets
- Quantitative metric: R&D spend increased to $10.3 million in fiscal 2026 from $9.6 million in prior year; total employees as of FY2026 at 1,386
- Noteworthy fact: Launch of Smith & Wesson Academy in Maryville, TN, including pistol range and 300-yard rifle range, serving as a hub for training, product testing, and customer events
Management Discussion & Analysis
- Revenue $523.8M, up 10.4% YoY ($49.2M increase from $474.7M in 2025); handguns up 18.8% ($62.5M), long guns down 13% ($13.5M)
- Gross margin 26.9% vs 26.8% YoY; operating margin 5.6% vs 5.0% YoY; net income $18.5M, up 37.7% from $13.4M (EPS diluted $0.41 vs $0.30)
- Best segment: handguns $394.4M, +18.8%; worst segment: long guns $90.5M, down 13%
- Cash from operations $114.2M vs $(7.2)M prior year; repaid $60.0M debt; dividends $23.2M; capex $23.7M with $40-45M expected in 2027; no stock repurchases in 2026
- Outlook: expect modest inventory growth in 2027; inflation to continue impacting costs; believe current capital and credit facilities adequate for 12+ months; risks include demand volatility and regulatory changes impacting firearms industry
Risk Factors
- Regulatory risk from ongoing enforcement under state "gun industry accountability" laws; company is defendant in an active civil lawsuit
- Geopolitical/macro exposure to tariffs and trade policy shifts; higher tariffs negatively impacted gross margin by ~100 basis points in fiscal 2026
- Operational risk from limited facilities in three locations; Springfield plant modernization risk with capital expenditures and disruption potential
- Competitive risk from private firearm makers with lower cost structures able to compete aggressively on price and new product introductions
- Financial concentration risk with two customers comprising 24.7% of net sales and 30.2% of accounts receivable as of April 30, 2026
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