Company: SWAGW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109289
Chunk: 200

Company: Stran & Company, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 200
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 740.1%
  
    Total gross profit 
    $25,423  
     100.0% 
    $17,032  
     100.0% 
    $8,391  
     49.3%

Gross profit
consists of sales less total cost of sales. Our total gross profit increased 49.3% to approximately
$25.4 million, or 29.1% of sales, for
the nine months ended September 30, 2025, from approximately $17.0 million, or 30.6% of sales, for the nine months ended September 30,
2024. Gross profit of our Stran segment increased to approximately $19.9 million for the nine months ended September 30, 2025 from approximately
$16.4 million for the nine months ended September 30, 2024. Gross profit of our SLS segment increased to approximately $5.5 million for
the nine months ended September 30, 2025 from approximately $0.7 million for the nine months ended September 30, 2024. The increase in
the dollar amount of total gross profit was primarily due to the acquisition of the Gander Group Assets in August 2024. For
the Stran segment, the increase in the dollar amount of gross profit of approximately $3.5 million was due to an increase in sales
of approximately $8.2 million for the reasons described above, which was partially offset by an increase of cost of sales of approximately
$4.6 million for the reasons described above. For the SLS segment, the increase in the dollar amount of gross profit was due to the acquisition
of the Gander Group Assets in August 2024.

37

Gross profit
margin is defined as gross profit as a percentage of sales. The decrease in total gross profit
margin to 29.1% for the nine months ended September 30, 2025 from 30.6% for the nine months ended September 30, 2024 was primarily
due to the acquisition of the Gander Group business in August 2024, which operates at a lower gross margin than the Stran segment. The
gross profit margin for the Stran segment increased to 33.0% for the nine months ended September 30, 2025 from 31.4% for the nine months
ended September 30, 2024. The gross profit margin for