Company: SWAGW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001213900-25-109289
Chunk: 137

Company: Stran & Company, Inc.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 137
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     18.8%

33

Gross profit
consists of sales less total cost of sales. Our total gross profit increased 18.8% to approximately
$7.1 million, or 27.2% of sales, for
the three months ended September 30, 2025, from approximately $6.0 million,
or 29.5% of sales, for the three months ended September 30, 2024.
Gross profit of our Stran segment increased to approximately $5.5 million for the three months ended September 30, 2025 from approximately
$5.3 million for the three months ended September 30, 2024. Gross profit of our SLS segment increased
to approximately $1.6 million for the three months ended September 30, 2025 from approximately $0.7 million for the three 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 was due to an increase in sales of approximately $1.0 million for the reasons described
above, which was partially offset by an increase of cost of sales of approximately $0.8 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.

Gross profit
margin is defined as gross profit as a percentage of sales. The decrease in total gross profit margin to 27.2% for the three months
ended September 30, 2025 from 29.5% for the three months ended September 30, 2024 was primarily due to the acquisition of the Gander Group
Assets in August 2024, which operate at a lower gross margin than the Stran segment. The gross profit
margin for the Stran segment decreased to 31.2% for the three months ended September 30, 2025 from 31.8% for the three months ended
September 30, 2024. The gross profit margin for the SLS segment decreased to 18.7% for the three months ended September 30, 2025 from
18.9% for the three months ended September 30, 2024.

Operating
Expenses