What changed in this filing

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Item 1. Financial Statements

2026-07-29 compared with 2026-05-06 · 136 added, 90 removed, 388 unchanged (37% of the section changed)

3 unchanged sentences

(Dollars in thousands)

March 28, 2026

June 27, 2026

December 31, 2025

Current Assets

Cash $ 23,748 $ 18,451

Cash and cash equivalents $ 30,651 $ 18,451

Short-term investments 86,810 74,082

4 unchanged sentences

Net inventories 34,275 42,881

Assets held for sale 372 —

Prepaid expenses and other current assets 9,751 11,680

6 unchanged sentences

Total Assets $ 364,287 $ 341,997

The Condensed Consolidated Balance Sheet at December

31, 2025 has been derived from the audited consolidated financial statements at that date but does not include all the information and

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

The Condensed Consolidated Balance Sheet at December 31, 2025 has been derived from the audited consolidated financial statements at that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

See notes to condensed consolidated financial statements.

2 unchanged sentences

(Dollars in thousands, except per share data )

March 28, 2026

June 27, 2026

December 31, 2025

16 unchanged sentences

Common Stock, par value $ 1 :

Authorized shares – 40,000,000

2026 – 60,000,000 shares authorized

24,524,481 issued,

15,978,256 outstanding

2025 – 40,000,000 shares authorized

24,490,478 issued,

7 unchanged sentences

Total Liabilities and Stockholders’ Equity $ 364,287 $ 341,997

The Condensed Consolidated Balance Sheet at December

31, 2025 has been derived from the audited consolidated financial statements at that date but does not include all the information and

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

See notes to condensed consolidated financial statements.

STURM, RUGER & COMPANY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)

(Dollars in thousands, except per share data)

Three Months Ended

March 28, 2026

March 29, 2025

Six Months Ended

June 27, 2026

June 28, 2025

June 27, 2026

June 28, 2025

Net firearms sales $ 157,679 $ 131,567 $ 298,575 $ 266,762

7 unchanged sentences

Total operating expenses 26,113 25,862 56,140 47,285

Operating (loss) income ( 1,949 ) 8,472

Operating income (loss) 7,629 ( 20,716 ) 5,680 ( 12,244 )

Other income:

3 unchanged sentences

Total other income, net 1,271 1,328 3,146 2,603

(Loss) income before income taxes ( 74 ) 9,747

Income (loss) before income taxes 8,900 ( 19,388 ) 8,826 ( 9,641 )

Income taxes 1,919 ( 2,162 ) 1,717 ( 183 )

Net income and comprehensive income $ 128 $ 7,768

Basic earnings per share $ 0.01 $ 0.47

Diluted earnings per share $ 0.01 $ 0.46

Net income (loss) and comprehensive income (loss) $ 6,981 $ ( 17,226 ) $ 7,109 $ ( 9,458 )

Basic earnings (loss) per share $ 0.44 $ ( 1.05 ) $ 0.45 $ ( 0.57 )

Diluted earnings (loss) per share $ 0.43 $ ( 1.05 ) $ 0.44 $ ( 0.57 )

Weighted average number of common shares outstanding - Basic 15,957,073 16,370,674 15,951,342 16,494,828

12 unchanged sentences

Balance at March 28, 2026 $ 24,494 $ 56,040 $ 420,897 $ ( 218,131 ) $ 283,300

Net income and comprehensive income 6,981 6,981

Common stock issued – compensation plans 30 ( 30 ) —

Vesting of RSUs ( 11 ) ( 11 )

Dividends paid ( 1,754 ) ( 1,754 )

Unpaid dividends accrued ( 17 ) ( 17 )

Recognition of stock-based compensation expense 1,294 1,294

Balance at June 27, 2026 $ 24,524 $ 57,293 $ 426,107 $ ( 218,131 ) $ 289,793

STURM, RUGER & COMPANY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (UNAUDITED)

(Dollars in thousands)

Balance at December 31, 2024 $ 24,468 $ 50,536 $ 436,609 $ ( 192,031 ) $ 319,582

7 unchanged sentences

Balance at March 29, 2025 $ 24,473 $ 51,499 $ 440,531 $ ( 195,022 ) $ 321,481

Net loss and comprehensive loss ( 17,226 ) ( 17,226 )

Common stock issued – compensation plans 17 ( 17 ) —

Vesting of RSUs —

Dividends paid ( 2,941 ) ( 2,941 )

Unpaid dividends accrued ( 93 ) ( 93 )

Recognition of stock-based compensation expense 1,269 1,269

Repurchase of 363,884 shares of common stock ( 13,157 ) ( 13,157 )

Balance at June 28, 2025 $ 24,490 $ 52,751 $ 420,271 $ ( 208,179 ) $ 289,333

See notes to condensed consolidated financial statements.

2 unchanged sentences

( Dollars in thousands)

Three Months Ended

March 28, 2026

March 29, 2025

Six Months Ended

June 27, 2026

June 28, 2025

Operating Activities

Net income $ 128 $ 7,768

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

Net income (loss) $ 7,109 $ ( 9,458 )

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

Depreciation and amortization 12,393 11,143

1 unchanged sentence

Excess and obsolescence inventory reserve 702 40

Gain on disposal of assets ( 1 ) —

Inventory and other asset write-off — 17,002

Loss on disposal of assets 1 185

Deferred income taxes 2,613 ( 2,440 )

2 unchanged sentences

Inventories 7,904 10,247

Assets held for sale ( 372 ) —

Trade accounts payable and accrued expenses 4,534 ( 3,194 )

26 unchanged sentences

In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments, consisting of normal recurring accruals, considered necessary for a fair presentation of the results of the interim periods.

Operating results for the three months ended March 28, 2026 may not be indicative of the results to be expected for the full year ending December 31, 2026.

Operating results for the three and six months ended June 27, 2026 may not be indicative of the results to be expected for the full year ending December 31, 2026.

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, 2025.

4 unchanged sentences

Approximately 99 % of sales are from firearms.

Export sales accounted for approximately 5 % of total sales for each of the three month periods ended March 28, 2026 and March 29, 2025, respectively.

Export sales accounted for approximately 6 % of total sales for the six month period ended June 27, 2026 and approximately 5 % of total sales for the six month period ended June 28, 2025, respectively.

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

28 unchanged sentences

On July 1, 2025, the Company acquired substantially all of the assets of Anderson Manufacturing (“Anderson”) for a total purchase price of $ 15.8 million in cash, with $ 15 million having been paid in cash at the closing of the transaction and $ 0.8 million having been held back from the purchase price for potential repair remediation costs, which will either be applied to repair costs or paid to Anderson.

This holdback was included in trade accounts payable and accrued expenses on the Company’s Condensed Consolidated Balance Sheet at March 28, 2026.

This holdback was included in trade accounts payable and accrued expenses on the Company’s Condensed Consolidated Balance Sheet at June 27, 2026.

The transaction was funded by the Company with cash on hand and has been accounted for in accordance with ASC 805 - Business Combinations, which 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 fair value at acquisition date.

1 unchanged sentence

The estimates of fair value are based upon assumptions believed to be reasonable, yet are inherently uncertain and, as a result, may differ from actual performance.

During the measurement period, not to exceed one year from the date of acquisition, the Company may record adjustments to the estimated fair values of the assets acquired and liabilities assumed with a corresponding adjustment to goodwill in the period in which such revised estimates are identified.

No such adjustments were recorded in the three months ended March 28, 2026.

During the measurement period, which expired on June 30, 2026, one year from the date of acquisition, the Company would have been able to record adjustments to the estimated fair values of the assets acquired and liabilities assumed with a corresponding adjustment to goodwill in the period in which such revised estimates were identified.

No such adjustments were recorded in the six months ended June 27, 2026.

Assets Held for Sale:

The Company classifies a property as held for sale when all of the criteria set forth in the Accounting Standards Codification (ASC) Topic 360:

Property, Plant and Equipment (ASC 360) have been met.

The criteria are as follows:

(i) management, having the authority to approve the action, commits to a plan to sell the property;

(ii) the property is available for immediate sale in its present condition, subject only to terms that are usual and customary for sales of such assets;

(iii) an active program to locate a buyer and other actions required to complete the plan to sell have been initiated;

(iv) the sale of the property is probable and is expected to be completed within one year;

(v) the property is being actively marketed for sale at a price that is reasonable in relation to its current fair value;

and (vi) actions necessary to complete the plan of sale indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn.

At the time the Company classifies a property as held for sale, the Company ceases recording depreciation and amortization.

A property classified as held for sale is measured and reported at the lower of:

(i) its carrying amount or (ii) its estimated fair value, less estimated costs to sell.

Properties classified as held for sale are presented separately in the consolidated balance sheet.

Use of Estimates:

17 unchanged sentences

NOTE 3 - REVENUE RECOGNITION AND CONTRACTS WITH CUSTOMERS

The impact of ASC 606 on revenue recognized during the three months ended March 28, 2026 and March 29, 2025 is as follows:

Three Months Ended

March 28, 2026 March 29, 2025

The impact of ASC 606 on revenue recognized during the three and six months ended June 27, 2026 and June 28, 2025 is as follows:

Three Months Ended Six Months Ended

2026 June 28,

2025 June 27,

2026 June 28,

Contract liabilities with customers at beginning of period $ 714 $ 789 $ — $ —

3 unchanged sentences

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 2026.

The Company expects the remaining deferred revenue from the contract liabilities with customers to be recognized in the third quarter of 2026.

Practical Expedients and Exemptions

6 unchanged sentences

Inventories consist of the following:

March 28, 2026 December 31, 2025

June 27, 2026 December 31, 2025

Inventory at FIFO

10 unchanged sentences

Under the provisions of ASU 2016-02, the Company records right-of-use assets equal to the present value of the contractual liability for future lease payments.

The table below presents the right-of-use assets and related lease liabilities recognized on the Condensed Consolidated Balance Sheet as of March 28, 2026:

Balance Sheet Line Item March 28, 2026

The table below presents the right-of-use assets and related lease liabilities recognized on the Condensed Consolidated Balance Sheet as of June 27, 2026:

Balance Sheet Line Item June 27, 2026

Right-of-use assets Other assets $ 1,490

Operating lease liabilities

Current portion Trade accounts payable and accrued expenses $ 595

Current portion Trade accounts payable and

accrued expenses $ 481

Noncurrent portion Lease liabilities 1,009

5 unchanged sentences

The table below includes cash paid for the Company’s operating lease liabilities, other non-cash information, weighted average remaining lease term and weighted average discount rate:

Three Months Ended

March 28, 2026 March 29, 2025

Six Months Ended

June 27, 2026 June 28, 2025

Cash paid for amounts included in the measurement of lease liabilities $ 314 $ 288

3 unchanged sentences

Weighted average discount rate 8.0 % 8.0 %

The following table reconciles the undiscounted future minimum lease payments to the total operating lease liabilities recognized on the Condensed Consolidated Balance Sheet as of March 28, 2026:

The following table reconciles the undiscounted future minimum lease payments to the total operating lease liabilities recognized on the Condensed Consolidated Balance Sheet as of June 27, 2026:

Remainder of 2026 $ 386

7 unchanged sentences

The Company is also charged one-quarter of a percent ( 0.25 %) per year on the unused portion.

At March 28, 2026, the Company was in compliance with the terms and covenants of the credit facility and the line of credit was unused.

At June 27, 2026, the Company was in compliance with the terms and covenants of the credit facility and the line of credit was unused.

NOTE 7 - EMPLOYEE BENEFIT PLANS

1 unchanged sentence

The Company matches a certain portion of employee contributions using the safe harbor guidelines contained in the Internal Revenue Code.

Expenses related to these matching contributions totaled $ 1.1 million and $ 1.2 million for the three months ended March 28, 2026 and March 29, 2025, respectively.

Expenses related to these matching contributions totaled $ 1.1 million and $ 2.2 million for the three and six months ended June 27, 2026, respectively, and $ 1.0 million and $ 2.2 million for the three and six months ended June 28, 2025, respectively.

The Company plans to contribute approximately $ 2.2 million to the plan in matching employee contributions during the remainder of 2026.

In addition, the Company provided supplemental discretionary contributions to the 401(k) plan totaling $ 1.8 million and $ 2.0 million for the three months ended March 28, 2026 and March 29, 2025, respectively.

In addition, the Company provided supplemental discretionary contributions to the 401(k) plan totaling $ 1.8 million and $ 3.4 million for the three and six months ended June 27, 2026, respectively, and $ 1.6 million and $ 3.6 million for the three and six months ended June 28, 2025, respectively.

The Company plans to contribute approximately $ 3.0 million in supplemental contributions to the plan during the remainder of 2026.

1 unchanged sentence

The Company's 2026 and 2025 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 271.6 % and 20.3 % for the three months ended March 28, 2026 and March 29, 2025, respectively.

The discrete nature of these tax credits yields an effective tax rate for the period that is not meaningful at low earnings levels.

The Company did not make any income tax payments during the three months ended March 28, 2026.

Income tax payments totaled $ 2.0 million for the three months ended March 29, 2025.

The Company’s effective income tax rate was 21.6 % and 19.5 % for the three and six months ended June 27, 2026, respectively.

The Company’s effective income tax rate was 11.2 % and 1.9 % for the three and six months ended June 28, 2025, respectively.

Income tax payments were de minimis for the three and six months ended June 27, 2026.

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

The Company files income tax returns in the U.S.

7 unchanged sentences

Set forth below is a reconciliation of the numerator and denominator for basic and diluted earnings per share calculations for the periods indicated:

Three Months Ended

March 28, 2026 March 29, 2025

Net income $ 128 $ 7,768

Three Months Ended Six Months Ended

June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025

Net income (loss) $ 6,981 $ ( 17,226 ) $ 7,109 $ ( 9,458 )

Weighted average number of common shares outstanding – Basic 15,957,073 16,370,674 15,951,342 16,494,828

9 unchanged sentences

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 304,000 shares remain available for future grants as of March 28, 2026.

The Company reserved 1,000,000 shares for issuance under the 2023 SIP, of which 339,000 shares remain available for future grants as of June 27, 2026.

Any shares remaining from the 2017 SIP will be available for future grants under the terms of the 2023 SIP.

As of March 28, 2026, approximately 144,000 shares remained unawarded from the 2017 SIP.

As of June 27, 2026, approximately 144,000 shares remained unawarded from the 2017 SIP.

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

4 unchanged sentences

The retention-based awards are subject only to a three-year vesting period.

There were 162,689 restricted stock units issued during the three months ended March 28, 2026.

There were 219,312 restricted stock units issued during the six months ended June 27, 2026.

Total compensation costs related to these restricted stock units are $ 7.1 million.

Compensation costs related to all outstanding restricted stock units recognized in the statements of income aggregated $ 2.3 million and $ 2.1 million for the three months ended March 28, 2026 and March 29, 2025, respectively.

Compensation costs related to all outstanding restricted stock units recognized in the statements of income aggregated $ 2.5 million and $ 4.8 million for the three and six months ended June 27, 2026, respectively, and $ 1.3 million and $ 2.4 million for the three and six months ended June 28, 2025, respectively.

NOTE 11 - OPERATING SEGMENT INFORMATION

4 unchanged sentences

Selected operating segment financial information follows:

(in thousands) Three Months Ended

March 28, 2026 March 29, 2025

(in thousands) Three Months Ended Six Months Ended

2026 June 28,

2025 June 27,

2026 June 28,

Firearms $ 157,679 $ 131,567 $ 298,575 $ 266,762

1 unchanged sentence

Intersegment 6,530 6,387 11,393 13,609

6,909 7,311 12,232 15,076

Eliminations ( 6,530 ) ( 6,387 ) ( 11,393 ) ( 13,609 )

4 unchanged sentences

Intersegment 6,530 6,387 11,393 13,609

7,124 8,005 12,602 15,816

Eliminations ( 6,530 ) ( 6,387 ) ( 11,393 ) ( 13,609 )

13 unchanged sentences

$ 8,900 $ ( 19,388 ) $ 8,826 $ ( 9,641 )

Three Months Ended

March 28, 2026 March 29, 2025

Firearms $ 5,442 $ 4,987 $ 10,880 $ 9,975

5 unchanged sentences

$ 3,264 $ 5,622 $ 8,055 $ 6,746

March 28,2026 December 31, 2025

June 27,2026 December 31, 2025

Identifiable Assets

10 unchanged sentences

In 2026, the NRA is no longer considered a related party.

Payments made to the NRA in the three months ended March 29, 2025 totaled $ 0.3 million.

Payments made to the NRA in the three and six months ended June 28, 2025 totaled $ 0.2 million and $ 0.4 million, respectively.

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 28, 2026 and March 29, 2025 totaled $ 0.1 million and $ 0.1 million, respectively.

One of the Company’s Directors also serves on the Board of the NSSF.

Payments made to the NSSF in the three and six months ended June 27, 2026 totaled $ 0.1 million and $ 0.1 million, respectively.

Payments made to the NSSF in the three and six months ended June 28, 2025 totaled $ 0.1 million and $ 0.2 million, respectively.

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

NOTE 13 - CONTINGENT LIABILITIES

As of March 28, 2026, the Company was a defendant in seven ( 7 ) lawsuits and is aware of certain other claims.

As of June 27, 2026, the Company was a defendant in six ( 6 ) lawsuits and is aware of certain other claims.

The lawsuits generally fall into the categories of municipal litigation, unfair trade practices, product liability, and trademark litigation.

One ( 1 ) product liability matter and one ( 1 ) employment matter were fully and finally resolved during the quarter.

One ( 1 ) municipal litigation matter was fully and finally resolved during the quarter.

Material matters and developments are discussed in turn below.

1 unchanged sentence

Municipal litigation generally includes those cases brought by cities or other governmental entities against firearms manufacturers, distributors and retailers seeking to recover damages allegedly arising out of the misuse of firearms by third parties.

There are three pending lawsuits of this type:

the City of Gary , filed in Indiana State Court in 1999;

There are two pending lawsuits of this type:

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 damages, among other things, for the costs of medical care, police and emergency services, public health services, and other services as well as punitive damages as well as nuisance abatement and/or injunctive relief to change the design, manufacture, marketing and distribution practices of the various Defendants.

The Complaint alleges, among other claims, negligence in the design of products, public nuisance, negligent distribution and marketing, negligence per se and deceptive advertising.

The case does not allege a specific 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, the Indiana Court of Appeals recently reversed the trial court and ordered dismissal of the case.

The Indiana Court of Appeals denied the City’s request for rehearing, and the City petitioned the Indiana Supreme Court to review the matter.

The Defendants and the State of Indiana opposed the petition.

The parties are awaiting the Indiana Supreme Court’s decision on the petition.

The City of Buffalo v.

5 unchanged sentences

Both matters were timely removed to federal court and were consolidated for pretrial purposes only.

Those matters were stayed pending the outcome of a different matter that challenges New York’s law, which was decided earlier this year.

The Defendants moved to dismiss the cases and in response, the Cities amended their complaints to dismiss many defendants and amend the allegations against the remaining defendants, including the Company, to allege violation of N.Y.

In response to the Defendants’ motion to dismiss, the Cities amended their complaints, removing most of the defendants and amending the allegations against the remaining defendants, including the Company, to allege violation of N.Y.

Law § 898-b(2) and Common Law Public Nuisance.

The Defendants have moved to dismiss the amended complaint.

The Defendants have moved to dismiss the amended complaint and briefing is underway.

The City of Gary was a municipal litigation case that was initially brought in 1999 that sought damages, among other things, for the costs of medical care, police and emergency services, public health services, and other services as well as punitive damages as well as nuisance abatement and/or injunctive relief to change the design, manufacture, marketing and distribution practices of the various Defendants.

The Complaint alleged, among other claims, negligence in the design of products, public nuisance, negligent distribution and marketing, negligence per se and deceptive advertising.

After a long procedural history, the case was fully and finally dismissed on May 26, 2026 after the Indiana Supreme Court declined to reconsider a decision from the Indiana Court of Appeals directing the trial court to dismiss the case before trial without liability on the Company.

Unfair Trade Practices

Estate of Suzanne Fountain v.

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

The Estate of Suzanne Fountain v.

Sturm, Ruger & Co., Inc., and the 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.

The Complaints allege, among other things, that the Company’s advertising and marketing of the Ruger AR-556 pistol violate the Connecticut Unfair Trade Practices Act (“CUPTA”) and seek damages for the alleged wrongful death of the victims.

are pending in Connecticut state court and arise out of a criminal shooting that occurred at the King Soopers supermarket in Boulder, Colorado on March 22, 2021.

The Complaints allege, among other things, that the Company’s advertising and marketing of the Ruger AR-556 pistol violate the Connecticut Unfair Trade Practices Act (“CUTPA”) and seek damages for the alleged wrongful death of the victims.

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

The parties have commenced discovery, and on April 20, 2026, the Company filed a Motion for Choice of Law Determination and/or for Summary Judgment, seeking application of Colorado law to the matter or, in the alternative, summary judgment on the plaintiff’s CUTPA claims.

The court has allowed additional discovery prior to plaintiffs’ response to that motion and has scheduled argument to take place in January 2027.

On July 16, 2026, the plaintiffs filed an Offer of Compromise offering to settle the matter as to all plaintiffs for $ 90 million.

Product Liability

4 unchanged sentences

This complaint alleges wrongful death arising out of an alleged product design defect in an “old model” Ruger Single-Six revolver.

Discovery is underway in that matter.

Discovery is underway in that matter, and the parties have engaged in several rounds of mediation.

Trademark Litigation

4 unchanged sentences

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.

The parties are awaiting the court’s decision on dispositive motions.

Summary of Claimed Damages and Explanation of Product Liability Accruals

4 unchanged sentences

Rather, the Company established a wholly-owned captive insurance company for claims made on or after September 1, 2024.

The Company management monitors the status of known claims and the product liability accrual, which includes amounts for asserted and unasserted claims.

Company management monitors the status of known claims and product liability accruals, which includes amounts for asserted and unasserted claims.

While it is not possible to forecast the outcome of litigation or the timing of costs, in the opinion of management, after consultation with special and corporate counsel, it is not probable and is unlikely that litigation, including punitive damage claims, will have a material adverse effect on the financial position of the Company, but may have a material impact on the Company's financial results for a particular period.

11 unchanged sentences

NOTE 14 – STOCKHOLDER RIGHTS PLAN

On October 14, 2025, the Company’s Board of Directors (the “Board”) approved the adoption of a limited-duration stockholder rights plan (the “Rights Plan”).

On October 14, 2025, the Company’s Board of Directors (the “Board”) approved adoption of a limited-duration stockholder rights plan (the “Rights Plan”).

The Rights Plan is effective October 14, 2025 (“Effective Date”) and will expire on October 13, 2026.

9 unchanged sentences

The Rights will expire at the close of business on the day before the first anniversary of the date of the Rights Plan, unless the Rights Plan is amended to change the Final Expiration Date (as defined in the Rights Plan) or the Rights are earlier redeemed or exchanged by the Company.

Pursuant to the Beretta Agreement (as defined below), the Company has undertaken to make certain amendments to the Rights Plan, upon the satisfaction of certain regulatory conditions precedent, as described in the Beretta Agreement.

Pursuant to that certain Agreement, dated as of May 2, 2026, by and between the Company and Beretta (the “Beretta Agreement”), the Company has undertaken to make certain amendments to the Rights Plan, upon the satisfaction of certain regulatory conditions precedent, as described in the Beretta Agreement.

NOTE 15 - ASSETS HELD FOR SALE

During the three months ended June 27, 2026, the Company committed to a plan to sell its Southport, Connecticut facility, which had historically been used as the Company's principal executive offices.

The Company has relocated its principal executive offices to Mayodan, North Carolina.

The Company engaged a commercial real estate broker, listed the property for sale, and concluded that all criteria for classification as held for sale under ASC 360 were met during the three months ended June 27, 2026.

The Company's accounting policy for assets held for sale is described in Note 2.

As a result, the Company reclassified the carrying value of the property, $ 0.4 million, from property, plant and equipment, net, to assets held for sale, on the condensed consolidated balance sheet as of June 27, 2026.

Depreciation ceased upon classification of such property and assets as assets held for sale.

The Company measured the assets held for sale at the lower of:

(i) carrying value or (ii) fair value, less estimated costs to sell and determined no impairment loss was required.

The Company is currently in negotiation to sell the property, subject to a customary diligence period and execution of a definitive purchase and sale agreement.

The Company currently expects the sale of the property to close during fiscal 2026;

provided, however, that there can be no assurance that the sale will be completed on the terms described or at all.

NOTE 16 - SUBSEQUENT EVENTS

On April 30, 2026, the Board of Directors authorized a dividend of 11 ¢ per share, for stockholders of record as of May 14, 2026 , payable on May 29, 2026.

On May 1, 2026, the Company and Beretta Holding S.A.

(“Beretta”) entered into that certain Agreement (the “Beretta Agreement”), concerning, amongst other things, Company board representation, a tender offer to be launched by Beretta for Company Common Stock, potential future commercial collaboration between Beretta and the Company, certain regulatory matters, certain amendments to the Rights Plan, voting commitments to be undertaken by Beretta, and certain other matters.

The foregoing summary of the Beretta Agreement is qualified in its entirety by the Beretta Agreement, which is attached as Exhibit 10.1 to the Form 10-Q.

The Company has evaluated events and transactions occurring subsequent to March 28, 2026 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.

On July 24, 2026, the Board of Directors authorized a dividend of 21 ¢ per share, for stockholders of record as of August 14, 2026 , payable on August 28, 2026.

The Company has evaluated events and transactions occurring subsequent to June 27, 2026 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