Company: SWAGW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0001213900-25-074995
Chunk: 109

Company: Stran & Company, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Part I, Item 2
Chunk 109
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 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 30.0% for the six months ended June 30, 2025 from 31.2% for the six months ended June 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 33.7% for the six months ended June 30, 2025 from 31.2% for the six months ended June 30, 2024.
The gross profit margin for the SLS segment was 21.4% for the six months ended June 30, 2025.

33

Operating
Expenses

Operating expenses by segment and in total were
as follows (in thousands):

    Six Months 
Ended 
June 30,   
       
    Six Months 
Ended 
June 30,   
       
    Increase / (Decrease) 

    2025  
    % of Total  
    2024  
    % of Total  
    $  
    % 
  
    Stran 
    $14,291  
     77.3% 
    $12,857  
     100.0% 
    $1,434  
     11.2%
  
    SLS 
     4,200  
     22.7% 
     —  
     —% 
     4,200  
     100.0%
  
    Total operating expenses 
    $18,491  
     100.0% 
    $12,857  
     100.0% 
    $5,634  
     43.8%

Operating
expenses consist of general and administrative expenses. Our total operating expenses increased 43.8% to
approximately $18.5 million for the six months ended June 30, 2025, from approximately $12.9
million for the six months ended June 30, 2024. Operating expenses of our Stran segment increased to approximately $14.3 million
for the six months ended June 30, 2025 from approximately $12.9 million for the six