What changed in this filing

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Item 1. Financial Statements

2025-07-30 compared with 2025-04-30 · 202 added, 247 removed, 447 unchanged (50% of the section changed)

3 unchanged sentences

(Dollars in thousands)

March 29, 2025

June 28, 2025

December 31, 2024

15 unchanged sentences

footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

See notes to condensed consolidated financial statements.

See notes to condensed consolidated financial

STURM, RUGER & COMPANY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Continued)

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands, except per share data )

March 29, 2025

June 28, 2025

December 31, 2024

30 unchanged sentences

footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

See notes to condensed consolidated financial statements.

See notes to condensed consolidated financial

STURM, RUGER & COMPANY, INC.

2 unchanged sentences

Three Months Ended

March 29, 2025

March 30, 2024

Six Months Ended

Net firearms sales

5 unchanged sentences

Total operating expenses

Operating income

Operating (loss) income

Other income:

3 unchanged sentences

Total other income, net

Income before income taxes

Net income and comprehensive income

(Loss) income before income taxes

Net (loss) income and comprehensive (loss) income

Basic earnings per share

3 unchanged sentences

Cash dividends per share

See notes to condensed consolidated financial

See notes to condensed consolidated financial statements.

STURM, RUGER & COMPANY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’

EQUITY (UNAUDITED)

(Dollars in thousands)

1 unchanged sentence

$ ( 192,031 )

Net income and comprehensive income

Net income (loss) and comprehensive income (loss)

Common stock issued – compensation plans

6 unchanged sentences

$ ( 195,022 )

Net income (loss) and comprehensive income (loss)

Common stock issued – compensation plans

Vesting of RSUs

Dividends paid

Unpaid dividends accrued

Recognition of stock-based compensation expense

Repurchase of 363,884 shares of common stock

Balance at June 28, 2025

$ ( 208,179 )

See notes to condensed consolidated financial statements.

STURM, RUGER & COMPANY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’

EQUITY (UNAUDITED) (Continued)

(Dollars in thousands)

Balance at December 31, 2023

$ ( 157,623 )

Net income and comprehensive income

Net income (loss) and comprehensive income (loss)

Common stock issued – compensation plans

6 unchanged sentences

$ ( 160,842 )

Net income (loss) and comprehensive income (loss)

Common stock issued – compensation plans

Vesting of RSUs

Dividends paid

Unpaid dividends accrued

Recognition of stock-based compensation expense

Repurchase of 402,893 shares of common stock

Balance at June 29, 2024

$ ( 177,899 )

See notes to condensed consolidated financial statements.

2 unchanged sentences

( Dollars in thousands)

Three Months Ended

March 29, 2025

March 30, 2024

Six Months Ended

June 28, 2025

June 29, 2024

Operating Activities

Adjustments to reconcile net income to cash provided by operating activities:

Net (loss) income

Adjustments to reconcile net (loss) income to cash provided by operating

Depreciation and amortization

1 unchanged sentence

Excess and obsolescence inventory reserve

Inventory and other asset write-off

Loss on disposal of assets

Deferred income taxes

11 unchanged sentences

Proceeds from maturities of short-term investments

Cash provided by investing activities

Cash provided by (used for) investing activities

Financing Activities

3 unchanged sentences

Cash used for financing activities

Increase in cash and cash equivalents

Increase (decrease) in cash and cash equivalents

Cash and cash equivalents at beginning of period

14 unchanged sentences

considered necessary for a fair presentation of the results of the interim periods.

Operating results for the three months ended March

29, 2025 may not be indicative of the results to be expected for the full year ending December 31, 2025.

These financial statements have

been prepared on a basis that is substantially consistent with the accounting principles applied in the Company’s Annual Report

Operating results for the three and six months ended

June 28, 2025 may not be indicative of the results to be expected for the full year ending December 31, 2025.

These financial statements

have been prepared on a basis that is substantially consistent with the accounting principles applied in the Company’s Annual Report

on Form 10-K for the year ended December 31, 2024.

5 unchanged sentences

99 % of sales are from firearms.

Export sales accounted for approximately 5 % of total sales for each of the three month periods ended March

29, 2025 and March 30, 2024.

The Company’s design and manufacturing operations are located in the United States and almost all product

content is domestic.

The Company’s firearms are sold through a select number of independent wholesale distributors, principally

to the commercial sporting market.

Export sales accounted for approximately 5 % of total sales for each of the six month periods ended June

28, 2025 and June 29, 2024, respectively.

The Company’s design and manufacturing operations are located in the United States and

almost all product content is domestic.

The Company’s firearms are sold through a select number of independent wholesale distributors,

principally to the commercial sporting market.

The Company also manufactures

84 unchanged sentences

The impact of ASC 606 on revenue

recognized during the three months ended March 29, 2025 and March 30, 2024 is as follows:

recognized during the three and six months ended June 28, 2025 and June 29, 2024 is as follows:

Three Months Ended

March 29, 2025

March 30, 2024

Six Months Ended

Contract liabilities with customers at beginning of period

2 unchanged sentences

Contract liabilities with customers at end of period

As more fully described in the

Revenue Recognition section of Note 2, the deferral of revenue and subsequent recognition thereof relates to certain of the Company’s

As more fully described in

the Revenue Recognition section of Note 2, the deferral of revenue and subsequent recognition thereof relates to certain of the Company’s

sales promotion programs that include the future shipment of free products.

The Company expects the remaining deferred revenue from the

contract liabilities with customers to be recognized in the second quarter of 2025.

contract liabilities with customers to be recognized in the third quarter of 2025.

Practical Expedients and Exemptions

12 unchanged sentences

Inventories consist of the following:

March 29, 2025

June 28, 2025

December 31, 2024

15 unchanged sentences

table below presents the right-of-use assets and related lease liabilities recognized on the Condensed Consolidated Balance Sheet as of

March 29, 2025:

Balance Sheet Line Item March 29, 2025

June 28, 2025:

Balance Sheet Line Item June 28, 2025

Right-of-use assets Other assets $ 2,058

15 unchanged sentences

paid for our operating lease liabilities, other non-cash information, our weighted average remaining lease term and weighted average discount

Three Months Ended

March 29, 2025 March 30, 2024

Six Months Ended

June 28, 2025 June 29, 2024

Cash paid for amounts included in the measurement of lease liabilities $ 161 $ 432

5 unchanged sentences

the undiscounted future minimum lease payments to the total operating lease liabilities recognized on the Condensed Consolidated Balance

Sheet as of March 29, 2025:

Sheet as of June 28, 2025:

Remainder of 2025

15 unchanged sentences

Expenses related to these matching contributions totaled $ 1.0 million and $ 2.2 million for the

three months ended March 29, 2025 and March 30, 2024, respectively.

The Company plans to contribute approximately $ 3.0 million to the

plan in matching employee contributions during the remainder of 2025.

three and six months ended June 28, 2025, respectively, and $ 1.0 million and $ 2.2 million for the three and six months ended June 29,

2024, respectively.

The Company plans to contribute approximately $ 2.0 million to the plan in matching employee contributions during the

remainder of 2025.

In addition, the Company provided

supplemental discretionary contributions to the 401(k) plan totaling $ 2.0 million and $ 2.0 million for the three months ended March 29,

2025 and March 30, 2024, respectively.

The Company plans to contribute approximately $ 4.5 million in supplemental contributions to the

plan during the remainder of 2025.

supplemental discretionary contributions to the 401(k) plan totaling $ 1.6 million and $ 3.6 million for the three and six months ended

June 28, 2025, respectively, and $ 1.8 million and $ 3.8 million for the three and six months ended June 29, 2024, respectively.

plans to contribute approximately $ 3.0 million in supplemental contributions to the plan during the remainder of 2025.

NOTE 8 - INCOME TAXES

The Company's 2025 and 2024

effective tax rates differ from the statutory federal tax rate due principally to the availability of research and development tax credits,

state income taxes, and the nondeductibility of certain executive compensation.

The Company’s effective income tax rate was 20.3 %

and 21.7 % for the three months ended March 29, 2025 and March 30, 2024, respectively.

The Company's 2025 and 2024 effective

tax rates differ from the statutory federal tax rate due principally to the availability of research and development tax credits, state

income taxes, and the nondeductibility of certain executive compensation.

The Company’s effective income tax rate was 11.2 % and

1.9 % for the three and six months ended June 28, 2025, respectively.

The Company’s effective income tax rate was 21.0 % and 21.3 %

for the three and six months ended June 29, 2024, respectively.

Income tax payments totaled

$ 2.0 million and $ 0.1 million for the three month periods ended March 29, 2025 and March 30, 2024, respectively.

$ 1.1 million and $ 3.1 million for the three and six months ended June 28, 2025, respectively.

Income tax payments totaled $ 9.4 million

for both the three and six month periods ended June 29, 2024.

The Company files income tax

14 unchanged sentences

Three Months Ended

March 29, 2025

March 30, 2024

Six Months Ended

June 28, 2025

June 29, 2024

June 28, 2025

June 29, 2024

Net (loss) income

Weighted average number of common shares outstanding – Basic

14 unchanged sentences

In June 2023, the Company’s

shareholders approved the 2023 Stock Incentive Plan (the “2023 SIP”) under which employees, independent contractors, and non-employee

directors may be granted stock options, restricted stock, deferred stock awards, and stock appreciation rights, any of which may or may

not require the satisfaction of performance objectives.

Vesting requirements are determined by the Compensation Committee of the Board

of Directors .

The Company reserved 1,000,000 shares for issuance under the 2023 SIP, of which 456,000 shares remain available for

future grants as of March 29, 2025.

Any shares remaining from the 2017 SIP will be available for future grants under the terms of the

As of March 29, 2025, approximately 120,000 shares remained unawarded from the 2017 SIP.

Since the shareholder approval of the

2023 SIP, no additional awards have been or will be granted under the 2017 SIP.

Previously granted and outstanding awards under the 2017

SIP will remain subject to the terms of the 2017 SIP.

shareholders approved the 2023 Stock Incentive Plan (the “2023 SIP”) under which employees, independent contractors, and

non-employee directors may be granted stock options, restricted stock, deferred stock awards, and stock appreciation rights, any of which

may or may not require the satisfaction of performance objectives.

Vesting requirements are determined by the Compensation Committee

of the Board of Directors .

The Company reserved 1,000,000 shares for issuance under the 2023 SIP, of which 456,000 shares remain

available for future grants as of June 28, 2025.

Any shares remaining from the 2017 SIP will be available for future grants under the

terms of the 2023 SIP.

As of June 28, 2025, approximately 120,000 shares remained unawarded from the 2017 SIP.

Since the shareholder

approval of the 2023 SIP, no additional awards have been or will be granted under the 2017 SIP.

Previously granted and outstanding awards

under the 2017 SIP will remain subject to the terms of the 2017 SIP.

Restricted Stock Units

9 unchanged sentences

There were 275,873 restricted stock units

issued during the three months ended March 29, 2025.

issued during the six months ended June 28, 2025.

Total compensation costs related to these restricted stock units are $ 10.6 million.

Compensation costs related

to all outstanding restricted stock units recognized in the statements of income aggregated $ 2.1 million and $ 1.1 million for the three

months ended March 29, 2025 and March 30, 2024, respectively.

Compensation costs related to

all outstanding restricted stock units recognized in the statements of income aggregated $ 1.3 million and $ 2.4 million for the three and

six months ended June 28, 2025, respectively, and $ 1.1 million and $ 2.2 million for the three and six months ended June 29, 2024, respectively.

NOTE 11 - OPERATING SEGMENT INFORMATION

8 unchanged sentences

Three Months Ended

March 29, 2025

March 30, 2024

Six Months Ended

Costs of Goods Sold

Three Months Ended

Six Months Ended

Gross Profit (Loss)

1 unchanged sentence

Income (Loss) Before Income Taxes

Three Months Ended

March 29, 2025

March 30, 2024

Capital Expenditures

March 29, 2025

December 31, 2024

Identifiable Assets

3 unchanged sentences

Payments made to the NRA in

the three months ended March 29, 2025 and March 30, 2024 totaled $ 0.3 million and $ 0.2 million, respectively.

One of the Company’s

Directors also serves as a Director on the Board of the NRA.

The Company is a member of

the National Shooting Sports Foundation (“NSSF”), the firearm industry trade association.

Payments made to the NSSF

in the three months ended March 29, 2025 and March 30, 2024 totaled $ 0.1 million and $ 0.2 million, respectively.

One of the Company’s

Directors also serves on the Board of the NSSF.

the three and six months ended June 28, 2025 totaled $ 0.2 million and $ 0.4 million, respectively.

Payments made to the NRA in the three

and six months ended June 29, 2024 totaled $ 0.2 million and $ 0.3 million, respectively.

One of the Company’s Directors also serves

as a Director on the Board of the NRA.

The Company is a member of the National Shooting Sports Foundation

(“NSSF”), the firearm industry trade association.

Payments made to the NSSF in the three and six months ended June 28, 2025

totaled $ 0.1 million and $ 0.2 million, respectively.

Payments made to the NSSF in the three and six months ended June 29, 2024 totaled

$ 0.2 million and $ 0.3 million, respectively.

Two of the Company’s Directors also serve on the Board of the NSSF.

NOTE 13 - CONTINGENT LIABILITIES

As of March 29, 2025, the

Company was a defendant in eight (8) lawsuits and is aware of certain other claims.

As of June 28, 2025, the Company

was a defendant in seven (7) lawsuits and is aware of certain other claims.

The lawsuits generally fall into four (4) categories:

municipal litigation, breach of contract, unfair trade practices, and trademark litigation.

litigation, breach of contract, unfair trade practices, and trademark litigation.

Each is discussed in turn below.

3 unchanged sentences

to recover damages allegedly arising out of the misuse of firearms by third parties.

There are four lawsuits of this type:

There are three lawsuits of this type:

of Gary , filed in Indiana State Court in 1999;

Estados Unidos Mexicanos v.

Smith & Wesson, et al.

, filed in the U.S.

Court for the District of Massachusetts in August 2021;

The City of Buffalo , filed in the Supreme Court of the State of New York

for Erie County on December 20, 2022;

and The City of Rochester , filed in the Supreme Court for the State of New York for Monroe

County on December 21, 2022, each of which is described in more detail below.

The City of Buffalo , filed in the Supreme Court of the State of New York for

Erie County on December 20, 2022;

and The City of Rochester , filed in the Supreme Court for the State of New York for Monroe County

on December 21, 2022, each of which is described in more detail below.

The City of Gary seeks

7 unchanged sentences

injury to a specific individual as a result of the misuse or use of any of the Company's products.

After a long procedural history, during

the quarter ended April 3, 2021, the City initiated discovery and the manufacturer Defendants reciprocated.

On March 15, 2024, Indiana

Governor Eric Holcomb signed into law HB 1235, which reserves to the State of Indiana the right to bring an action on behalf of a political

subdivision against a firearm or ammunition manufacturer, trade association, seller, or dealer, concerning certain matters.

also prohibits a political subdivision from bringing or maintaining such an action.

With the passage of this new law, the Company and

other Defendants filed a Motion for Judgment on the Pleadings on March 18, 2024.

On August 12, 2024, the Court denied Defendants’

The Court granted Defendants’ subsequent request to certify the Order for appeal.

On October 2, 2024, Defendants filed a

motion with the Indiana Court of Appeals to accept jurisdiction over the interlocutory appeal, which was granted over Plaintiff’s

objection on November 1, 2024.

On October 16, 2024, the trial court entered an Order staying all proceeding pending the interlocutory

Briefing of the appeal is underway.

Estados Unidos Mexicanos

After a long procedural history, this

matter is back before the Indiana Court of Appeals, where briefing was recently completed.

The City of Buffalo v.

& Wesson Brands, Inc., et al.

and The City of Rochester v.

Smith & Wesson Brands, Inc., et al were filed one day apart

in New York State Court, naming a number of firearm manufacturers, distributors, and retailers as Defendants, including the Company.

complaints are virtually identical and purport to state causes of action for violations of Sections 898, 349 and 350 of the New York General

Business Law, as well as common law public nuisance.

Generally, Plaintiffs alleges that the criminal misuse of firearms in their cities

is the result of the manufacturing, sales, marketing, and distribution practices of the Defendants.

Both matters were timely removed to

District Court for the Western District of New York and were consolidated for pretrial purposes only.

Those matters were stayed

pending the outcome of a different matter that challenges New York’s law.

Estados Unidos Mexicanos v.

Smith & Wesson Brands, Inc., et al.

was filed by the Country of Mexico and names seven Defendants, mostly U.S.-based firearms

was filed by the Country of Mexico and named seven Defendants, mostly U.S.-based firearms

manufacturers, including the Company.

The Complaint advances a variety of legal theories including negligence, public nuisance, unjust

The Complaint advanced a variety of legal theories including negligence, public nuisance, unjust

enrichment, restitution, and others.

Plaintiff essentially alleges that Defendants design, manufacture, distribute, market and sell firearms

in a way that they know results in the illegal trafficking of firearms into Mexico, where they are used by Mexican drug cartels for criminal

Plaintiff seeks injunctive relief and monetary damages.

On November 22, 2021, Defendants

filed a motion to dismiss the Complaint, which was granted on September 30, 2022.

Plaintiffs appealed to the First Circuit Court of Appeals

and, on January 22, 2024, the Court of Appeals reversed the District Court’s dismissal and remanded the case for further proceedings.

The Defendants sought a Stay of Proceedings Pending Review of a Petition for Writ of Certiorari to the United States Supreme Court.

District Court denied the stay and held that the defendants should request that the First Circuit recall its mandate or petition for a

stay from the Supreme Court.

Plaintiff essentially alleged that Defendants design, manufacture, distribute, market and sell

firearms in a way that they know results in the illegal trafficking of firearms into Mexico, where they are used by Mexican drug cartels

for criminal activities.

On June 17, 2024, the District

Court heard argument on the pending Rule 12(b)(2) motions to dismiss.

On August 7, 2024, the Court granted the motions, dismissing Ruger

and some of the other Defendants from the case, but did not enter judgement in favor of these Defendants.

Because judgment has not entered

in favor of Ruger, the 30-day period in which Plaintiff may appeal the Court’s August 7, 2024 ruling has not yet begun to run.

Subsequently,

the Supreme Court granted the Defendants’ Petition for Writ of Certiorari.

With the dismissal of Ruger and other Defendants on personal

jurisdiction grounds, the remaining Defendants will prosecute the appeal before the Supreme Court.

Oral argument was held at the Supreme

Court on March 4, 2025.

On December 20, 2022, the

City of Buffalo, New York filed a lawsuit captioned The City of Buffalo v.

Smith & Wesson Brands, Inc., et al.

in the New York

State Supreme Court for Erie County, New York.

The suit names a number of firearm manufacturers, distributors, and retailers as Defendants,

including the Company, and purports to state causes of action for violations of Sections 898, 349 and 350 of the New York General Business

Law, as well as common law public nuisance.

Generally, Plaintiff alleges that the criminal misuse of firearms in the City of Buffalo is

the result of the manufacturing, sales, marketing, and distribution practices of the Defendants.

The Defendants timely removed the matter

District Court for the Western District of New York.

On December 21, 2022, the

City of Rochester, New York filed a lawsuit captioned The City of Rochester v.

Smith & Wesson Brands, Inc., et al.

York State Supreme Court for Monroe County, New York.

The suit names a number of firearm manufacturers, distributors, and retailers as

Defendants, including the Company, and purports to state causes of action for violations of Sections 898, 349 and 350 of the New York

General Business Law, as well as common law public nuisance.

The allegations essentially mirror those in Buffalo , discussed in

the preceding paragraph.

Defendants timely removed the matter to the U.S.

District Court for the Western District of New York.

Defendants moved to consolidate

the Buffalo and Rochester cases for pretrial purposes only.

Defendants also moved to stay the cases pending a decision by

the Second Circuit Court of Appeals in National Shooting Sports Foundation, Inc.

James , which challenges the constitutionality

of the recently enacted N.Y.

Law §§ 898-a–e.

On June 8, 2023,

the court granted defendants’ motions and the cases were consolidated for pretrial purposes and stayed.

Court heard argument on pending motions to dismiss.

On August 7, 2024, the Court granted the motions, dismissing Ruger and some of the

other Defendants from the case, but did not enter judgement in favor of these Defendants.

Subsequently, the Supreme Court granted

the Defendants’ Petition for Writ of Certiorari.

With the dismissal of Ruger and other Defendants on personal jurisdiction

grounds, the remaining Defendants prosecuted the appeal before the Supreme Court and oral argument was held on March 4, 2025.

June 5, 2025, the Supreme Court ruled that because the Plaintiff’s complaint does not plausibly allege that the defendant gun manufacturers

aided and abetted gun dealers’ unlawful sales of firearms to Mexican traffickers and the Protection of Lawful Commerce in Arms

Act bars the lawsuit.

Breach of Contract

The Company was named in two

purported class action lawsuits arising out of a data breach at Freestyle Solutions, Inc., the vendor who was hosting the Company’s

ShopRuger.com website at the time of the breach.

Sturm, Ruger & Co., was filed in the U.S.

District Court for Connecticut

on October 4, 2022 and Copeland v.

Sturm, Ruger & Company, et al.

was filed in the U.S.

District Court for New Jersey on October

Copeland also named Freestyle Solutions, Inc.

as a Defendant.

By agreement of the parties, Copeland was dismissed,

without prejudice, and consolidated with Jones in the pending Connecticut case.

On January 20, 2023, five Plaintiffs filed an Amended

Complaint naming the Company and Freestyle Solutions, Inc.

as Defendants.

The Complaint alleges causes of action for negligence, breach

of implied warranties, and unjust enrichment.

The Company moved to dismiss

the Amended Complaint.

On March 27, 2024, the Court dismissed Plaintiffs’ negligence and unjust enrichment claims against the Company.

The Court denied the motion with respect to Plaintiffs’ breach of contract claim, concluding that development of additional information

is required to assess the applicability of the limitation of liability clause contained in the Company’s terms and conditions of

The parties have since participated in a mediation and agreed to a settlement in principle.

Efforts are underway to obtain Court

approval of the settlement.

The Company is a defendant

Sturm, Ruger & Co., a purported class action lawsuit arising out of a data breach at Freestyle Solutions, Inc.,

the vendor who was hosting the Company’s eCommerce website at the time of the breach.

The matter was mediated and the parties agreed

to a settlement in principle, which is being finalized.

Unfair Trade Practices

Estate of Suzanne Fountain

Sturm, Ruger & Co., Inc., was filed in the Connecticut Superior Court in Stamford and arises out of the criminal shootings

at the King Soopers supermarket in Boulder, Colorado on March 22, 2021.

On that date, plaintiff’s decedent, Suzanne Fountain, was

murdered by 21-year-old Ahmad Al Aliwi Al-Issa.

The Complaint alleges that the Company’s advertising

and marketing of the Ruger AR-556 pistol violate the Connecticut Unfair Trade Practices Act and were a substantial factor in bringing

about the wrongful death of Suzanne Fountain.

Estate of Neven Stanisic

Sturm, Ruger & Co., Inc., was filed in the Connecticut Superior Court in Stamford on behalf of five plaintiffs.

Estate of Suzanne Fountain , the claims arise from the criminal shooting at the King Soopers supermarket in Boulder, Colorado on

March 22, 2021.

Plaintiffs’ decedents were murdered by Ahmad Al Aliwi Al-Issa and Plaintiffs

alleged that the Company’s advertising and marketing of the Ruger AR-556 pistol violate the Connecticut Unfair Trade Practices Act

and were a substantial factor in causing the wrongful death of plaintiffs’ decedents.

Sturm, Ruger & Co., Inc., and Estate of Nevin Stanisic v.

Sturm, Ruger & Co., Inc.

are pending in Connecticut state

court and arise out of the criminal shootings at the King Soopers supermarket in Boulder, Colorado on March 22, 2021.

Complaints allege that the Company’s advertising and marketing of the Ruger AR-556 pistol violate the Connecticut Unfair Trade Practices

and Stanisic cases were consolidated for discovery purposes only and transferred by the court to the Complex Litigation Docket.

Plaintiffs then sought leave to file an Amended Complaint, essentially abandoning their negligent marketing allegations and advancing

a new theory predicated upon alleged violations of the Gun Control Act and National Firearms Act.

Over the Company’s objections,

Plaintiffs were permitted to file the Amended Complaint.

matter was timely removed to the U.S.

District Court for the District of Connecticut based upon the new allegations and federal question

jurisdiction.

Plaintiffs moved to remand the case to state court and, following briefing and oral argument, the matter was remanded on

April 25, 2024.

On June 12, 2024, Ruger filed

Motions to Dismiss the Connecticut state court cases based upon the doctrine of forum non conveniens .

Following oral argument on

September 9, 2024, the Court allowed Plaintiffs limited, additional discovery and requested further briefing on the matter.

were briefed fully and, on February 27, 2025, the Court denied the motions.

On March 31, 2025, the Company

filed Motions to Strike on a variety of grounds.

The motions are being briefed.

March 12, 2024, the Company was named as a defendant in FN Herstal, et al.

The Company is vigorously defending these matters.

Company is a defendant in FN Herstal, et al.

Sturm, Ruger & Company, Inc.

pending in the U.S.

District Court for the Middle District of North Carolina.

T he Complaint alleges

that the Company’s use of the initialism “SFAR” in connection with the marketing of its Small Frame Autoloading Rifle

infringes the Plaintiffs’ SCAR trademark.

The Complaint alleges violations of the Lanham Act and the North Carolina Unfair and Deceptive

Trade Practices Act, as well as trademark infringement under North Carolina common law.

The Company believes that the allegations are

meritless and is defending the action accordingly.

, which is pending in North Carolina.

Complaint alleges that the Company’s use of the initialism “SFAR” in connection with the marketing of its Small Frame

Autoloading Rifle infringes the Plaintiffs’ SCAR trademark.

The Complaint alleges violations of the Lanham Act and the North Carolina

Unfair and Deceptive Trade Practices Act, as well as trademark infringement under North Carolina common law.

The parties are awaiting

decision on dispositive motions.

Summary of Claimed Damages and Explanation of Product Liability

38 unchanged sentences

The amount claimed

at December 31, 2021 was $ 1.1 million and is set forth as an indication of possible maximum liability the Company might be required to

incur in these cases (regardless of the likelihood or reasonable probability of any or all of this amount being awarded to claimants)

as a result of adverse judgments that are sustained on appeal.

is set forth as an indication of possible maximum liability the Company might be required to incur in these cases (regardless of the likelihood

or reasonable probability of any or all of this amount being awarded to claimants) as a result of adverse judgments that are sustained

NOTE 14 - SUBSEQUENT EVENTS

On April 25, 2025,

the Board of Directors authorized a dividend of 18 ¢ per share, for shareholders of record as of May 16, 2025 , payable on May 30,

On July 25, 2025,

the Board of Directors authorized a dividend of 16 ¢ per share, for shareholders of record as of August 15, 2025 , payable on August

On July 1, 2025

the Company announced the asset purchase of Anderson Manufacturing (“Anderson”), a manufacturer of firearms and firearm accessories

based in Hebron, Kentucky, for $ 16.4 million in cash.

This strategic purchase includes Anderson’s manufacturing facility, equipment

and machinery, inventory, certain assets and liabilities, and all intellectual property related to Anderson.

The acquisition will provide

Ruger the opportunity to work with a skilled and experienced workforce, strengthen its production capabilities and expand its product

The transaction was funded by the Company with cash on hand and will be accounted for in accordance with ASC 805 - Business

Combinations.

ASC 805 requires, among other things, an assignment of the acquisition consideration transferred to the sellers for the

tangible and intangible assets acquired, using the bottom up approach, to estimate their value at acquisition date.

Any excess of the

fair value of the purchase consideration over these identified net assets will be recorded as goodwill.

The Company has not yet completed

its purchase price allocation and fair value assessments of the assets acquired.

The Company has

evaluated events and transactions occurring subsequent to March 29, 2025 and determined that there were no other unreported events or

transactions that would have a material impact on the Company’s results of operations or financial position.

evaluated events and transactions occurring subsequent to June 28, 2025 and determined that there were no other unreported events or transactions

that would have a material impact on the Company’s results of operations or financial position.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements