Stran & Company, Inc. Q4 FY2024 earnings call

• The company completed a comprehensive reaudit of historical financials after the previous audit firm was barred, partnering with a top-tier accounting firm to strengthen financial reporting infrastructure.
• Acquired Gander Group assets in August 2024, which contributed $9.9 million in revenue to the SLS segment and expanded the addressable market.
• Secured multiple 6-figure multiyear contracts across sectors like residential real estate, diagnostics, etc., showcasing the versatility of the platform.
• Launched NetSuite ERP in January 2025, which will automate processes, centralize operations, and drive operational excellence.
• Strategic priorities for 2025 include accelerating growth, broadening customer base in high-potential verticals, deepening client relationships, leveraging technology, and optimizing operating expenses.

In Fiscal Year 2024, Stran & Company reported total revenues of $82.7 million, an 8.8% year-over-year increase. The Stran segment had sales of $72.7 million in 2024, down from $76 million in 2023. The Stran Loyalty Solutions (SLS) segment saw sales jump to $9.9 million in 2024, compared to $0 in 2023. Gross profit was $25.8 million, a 31.2% margin, down from 32.7% in 2023. The Stran segment's gross profit decreased to $23.7 million in 2024 from $24.9 million in 2023. The SLS segment's gross profit was $2.1 million in 2024, up from $0 in 2023. The decrease in the total gross profit margin was due to the SLS segment, which operates at a lower margin, while the Stran segment's gross profit margin remained unchanged at 32.9%.

• Resumed share repurchase program in 2025 as the reaudit process is behind them.
• Focus on operational efficiency, margin expansion, and executing on the enterprise sales pipeline.
• Aim to broaden customer base in hospitality, healthcare, infrastructure, and gaming sectors.
• Leverage NetSuite to enhance operational efficiency and fulfillment performance.
• Optimize operating expenses across segments for sustainable margin accretive growth.

• Broader macroeconomic environment with ongoing inflationary pressures, global trade disruptions, and tariff-related costs creating uncertainty.
• Potential challenges in navigating evolving global trade environments, including tariff increases and supply chain disruptions.

Q: Congratulations on getting through that reaudit. Obviously, there were a lot of onetime expenses during the year. As you look ahead, can you just provide some light on your goal to profitability this year coming forward?

A: Sure. The fees associated with the audit will decrease as the reaudit is behind us. This allows executives to focus more on the operating business. We aim to continue revenue growth while driving operational efficiencies. The final implementation of NetSuite will create automation and reduce manual work, leading to cost savings and improved profitability. We focus on reducing OpEx while maintaining revenue growth and leveraging NetSuite for further efficiencies.