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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

5 Revealing Analyst Questions From Smith & Wesson’s Q2 Earnings Call

SWBI Cover Image

Smith & Wesson’s Q2 results for 2025 reflected a mixed picture, as the company’s revenue surpassed Wall Street’s expectations despite a year-over-year decline. Management highlighted robust demand for new products, particularly in the handgun segment, which saw shipments rise over 35% in the sporting goods channel. CEO Mark Peter Smith credited the strength of the Bodyguard, Shield, and M&P lines for driving these results. However, he acknowledged that the overall market remained highly promotional and that average selling prices trended lower. Smith noted, “Our performance during the seasonal slow period for firearms demonstrates the strength of our brand and the ongoing success of our innovation strategy.”

Is now the time to buy SWBI? Find out in our full research report (it’s free).

Smith & Wesson (SWBI) Q2 CY2025 Highlights:

  • Revenue: $85.08 million vs analyst estimates of $79.23 million (3.7% year-on-year decline, 7.4% beat)
  • Adjusted EPS: -$0.08 vs analyst estimates of -$0.12 (33.3% beat)
  • Adjusted EBITDA: $8.05 million vs analyst estimates of $3.59 million (9.5% margin, significant beat)
  • Operating Margin: -3.5%, down from -1.8% in the same quarter last year
  • Market Capitalization: $416.4 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Smith & Wesson’s Q2 Earnings Call

  • Mark Eric Smith (Lake Street Capital): Asked about the company’s pricing strategy amid a competitive environment. CEO Mark Peter Smith responded that Smith & Wesson is satisfied with current pricing and expects to maintain average selling prices due to brand strength and selective promotions.
  • Mark Eric Smith (Lake Street Capital): Inquired about expansion into new product segments. Smith highlighted ongoing additions to the lever action portfolio and plans to introduce more calibers, noting this as a key area for future growth.
  • Mark Eric Smith (Lake Street Capital): Asked about the impact of regulatory changes on suppressor demand. Smith acknowledged pent-up demand in the suppressor market and indicated the Gemtek brand is well positioned for potential growth with upcoming legal changes.
  • Matthew Joseph Raab (Craig Hallum): Questioned the performance and inventory levels of legacy products. Smith credited brand strength for share gains in legacy products and emphasized active management to reduce internal inventory throughout the year.
  • Matthew Joseph Raab (Craig Hallum): Asked about promotional trends for the remainder of the year. Smith stated that promotions will remain measured, with no expectation for material increases, as the company leverages its strong brand and financial position.

Catalysts in Upcoming Quarters

Looking forward, our analysts will watch for (1) the pace of new product launches and their acceptance in the market, (2) the company’s ability to maintain or improve average selling prices in a promotional environment, and (3) the impact of steel tariffs and higher operating expenses on margins. Progress on the relaunch of the Smith & Wesson Academy and regulatory changes affecting suppressors will also be key indicators of execution.

Smith & Wesson currently trades at $9.74, up from $8.22 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).

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