Smith & Wesson Brands, Inc. has reported their financial results for the fourth quarter and full fiscal year 2025. The highlights of the fourth quarter fiscal 2025 include net sales of $140.8 million, representing a decrease of $18.4 million or 11.6% from the same quarter last year. The gross margin was 28.8%, down from 35.5% in the comparable quarter last year. GAAP net income was $8.6 million, or $0.19 per diluted share, compared with $27.3 million, or $0.59 per diluted share, for the comparable quarter last year.
Non-GAAP net income for the fourth quarter was $9.0 million, or $0.20 per diluted share, compared with $22.1 million, or $0.48 per diluted share, for the comparable quarter last year. Non-GAAP adjusted EBITDA for the fourth quarter was $24.1 million, or 17.2% of net sales, down from $37.6 million, or 23.6% of net sales, for the comparable quarter last year.
For the full fiscal year 2025, net sales were $474.7 million, a decrease of $61.2 million, or 11.4%, from the prior fiscal year. The gross margin was 26.8%, down from 29.5% in the prior fiscal year. GAAP net income was $13.4 million, or $0.30 per diluted share, compared with $41.4 million, or $0.89 per diluted share, for the prior fiscal year.
Non-GAAP net income for the full fiscal year was $14.6 million, or $0.33 per diluted share, compared with $44.4 million, or $0.96 per diluted share, for the prior fiscal year. Non-GAAP adjusted EBITDA for the full fiscal year was $67.3 million, or 14.3% of net sales, compared with $96.6 million, or 18.0% of net sales, for the prior fiscal year.
The company's president and chief executive officer, Mark Smith, stated that the fourth quarter proved more difficult than anticipated due to macro-economic and industry trends, leading to lower sales and production volumes, which pressured margins. However, the company was able to partially offset the bottom-line impact through disciplined cost management and leveraging their flexible manufacturing model.
The company's executive vice president and chief financial officer, Deana McPherson, mentioned that firearm market conditions have been negatively impacted by persistent inflation, high interest rates, and uncertainty caused by tariff concerns. She also noted that the success of their new products has enabled them to maintain a leadership position in the firearm market categories in which they compete.
Looking ahead, the company expects demand for firearms in fiscal 2026 to be similar to what was seen in fiscal 2025, remaining subject to economic headwinds such as inflation and the impact of tariff-related cost increases. In line with their capital allocation strategy, the company's board of directors has authorized a $0.13 per share quarterly dividend.
The company will host a conference call and webcast on June 18, 2025, to discuss its fourth quarter and full fiscal 2025 financial and operational results. Speakers on the conference call will include Mark Smith, president and chief executive officer, and Deana McPherson, executive vice president and chief financial officer. Following these announcements, the company's shares moved 3.72%, and are now trading at a price of $10.88. For more information, read the company's full 8-K submission here.
