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A discussion of our results of operations, liquidity, and capital resources for fiscal 2025 compared with fiscal 2024 is not included in this Annual Report on Form 10-K and can be found in Part II, Item 7, "Management's Discussion and Analysis of Financial Condition and Results of Operations" of our Annual Report on Form 10-K for fiscal 2025, filed with the SEC on June 20, 2025.
−Removed: See also the discussion below related to an immaterial correction of an error.
2026 Highlights
Our operating results for fiscal 2026 included the following:
−Removed: • Net sales of $474.7 million represented a decrease of $61.2 million, or 11.4%, from the prior fiscal year.
−Removed: • Gross profit decreased $30.9 million, or 19.6%, from the prior fiscal year, primarily as a result of lower sales volume and a shift in product mix.
−Removed: Gross margin decreased 270 basis points from the prior fiscal year in spite of a $3.2 million legal settlement recognized in the prior year comparable period.
−Removed: Excluding the impact of the prior year legal settlement, gross margin was 330 basis points lower as a result of higher material costs, higher promotional costs, and a shift in product mix to lower margin products, partially offset by lower inventory adjustments (including standard cost revaluations, shrink, and excess inventory write downs).
+Added: • Net sales of $523.8 million represented an increase of $49.2 million, or 10.4%, over the prior fiscal year.
+Added: • Gross profit increased $13.9 million, or 10.9%, over the prior fiscal year, primarily because of higher sales volume.
+Added: Gross margin increased by ten basis points from the prior fiscal year primarily due to lower promotional costs and lower federal firearms excise taxes, partially offset by unfavorable fixed-cost absorption and a 100-basis point impact from higher tariffs.
• Net income was $18.5 million, or $0.41 per diluted share, compared with net income of $13.4 million, or $0.30 per diluted share, for the prior fiscal year.
• During fiscal 2026, we paid $23.2 million in dividends compared with $23.1 million in fiscal 2025.
−Removed: • During fiscal 2025, we purchased 1,844,073 shares of our common stock for $25.5 million.
−Removed: Immaterial Correction of an Error
−Removed: During the fourth quarter of fiscal 2025, we identified an immaterial error related to our accrual for certain legal expenses, resulting in an overstatement of general and administrative expenses in the interim and annual periods for the year ended April 30, 2024 and during the interim periods for the year ended April 30, 2025.
−Removed: In accordance with Staff Accounting Bulletin (“SAB”) No.
−Removed: 99, Materiality, and SAB No.
−Removed: 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements , we evaluated the quantitative and qualitative considerations of the error and determined that the related impact was not material to results of operations, financial position, or cash flows for any historical annual or interim period.
−Removed: Prior year amounts have been adjusted to correct the immaterial error, which overstated accrued expenses and deferred revenue and general and administrative expenses by $2.3 million and understated income tax expense by $569,000 and overstated the related amounts of income tax receivable by $548,000 and deferred income taxes by $21,000 as of April 30, 2024 and for the year then ended.
−Removed: Related changes to net income, corresponding line items within cash provided by operating activities, and related disclosures within the notes accompanying these financial statements, reflect the immaterial correction.
+Added: • During fiscal 2026, we repaid $60.0 million on our revolving credit facility.
Key Performance Indicators
We evaluate the performance of our business based upon operating profit and net income, which includes net sales, cost of sales, selling and administrative expenses, and certain components of other income and expense.
−Removed: We also track our return on invested capital, and we use adjusted EBITDAS (earnings before interest expense, taxes, depreciation, amortization, and stock-based compensation expense, excluding certain non-operational items), which is a non-GAAP financial metric, as a supplemental measure of our performance in order to provide investors with an
−Removed: improved understanding of underlying performance trends.
+Added: We also track our return on invested capital, and we use adjusted EBITDAS (earnings before interest, taxes, depreciation, amortization, and stock-based compensation expense, excluding certain non-operational items), which is a non-GAAP financial metric, as a supplemental measure of our performance in order to provide investors with an improved understanding of underlying performance trends.
We evaluate the performance of our products using measurements such as gross margin per unit produced, units produced per day, revenue by trade channel, and incoming orders per day.
External Factors that Impact the Firearm Industry
−Removed: The firearm industry has been subject to many external factors in the past that have significantly increased the volatility of revenue generated for companies within the industry.
+Added: The firearm industry has been subject to many external factors in the past that have significantly increased the volatility of revenue generated by companies within the industry.
These factors include, among others, fears surrounding crime and terrorism;
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According to calendar 2025 reports by the ATF, the U.S.
−Removed: firearm manufacturing industry grew at a 1.5% compound annual growth rate in units from 2018 through 2023, although there has been wide variation among years (e.g., 2019 to 2020 grew 58.0%).
+Added: firearm manufacturing industry grew at a 6.2% compound annual growth
+Added: rate in units from 2019 through 2024, although there has been wide variation among years (e.g., 2019 to 2020 grew 58.0%).
We believe that this expanding base of consumers combined with our strong brand reputation and attractive price points lend support to our goal of continuing to increase our market share.
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Professional Channel Units Shipped
−Removed: Sales of our handguns decreased $50.0 million, or 13.1%, from fiscal 2024, primarily as a result of lower consumer demand within the industry and a shift in product mix to lower priced models, partially offset by increased shipments of newly introduced products (defined as any new SKU not shipped in the prior year), which represented 42.6% of handgun sales in the period, and a 2%-5% price increase on select products that became effective in the third fiscal quarter of fiscal 2024.
−Removed: Handgun unit shipments into the sporting goods channel decreased 3.5% from fiscal 2024, while overall consumer demand decreased 3.2%, (as indicated by adjusted background checks for handguns reported to the National Instant Criminal Background Check System, or NICS).
−Removed: Sales of our long guns decreased $12.5 million, or 10.8%, from fiscal 2024, primarily as a result of lower consumer demand within the industry, partially offset by increased shipments of new products in the fiscal year, which represented 59.5% of sales in the period, a shift in product mix to higher priced models, and a 2%-5% price increase on select products that became effective in the third fiscal quarter of fiscal 2024.
−Removed: Unit shipments into the sporting goods channel decreased 24.8% from fiscal 2024, while overall consumer demand for long guns decreased 2.1%, as indicated by NICS.
−Removed: We believe that our unit demand declined at a significantly greater rate than NICS as a result of a combination of the industry-wide performance in some of the long gun categories in which we participate relative to those categories in which we do not participate fully, specifically hunting, as well as the impact in the current year of newly introduced products from the prior year that are at lower price points.
−Removed: Other products and services sales increased $1.3 million, or 3.5%, over fiscal 2024, primarily because of increased component parts and suppressor sales, partially offset by lower business-to-business sales.
−Removed: New products represented 42.8% of net sales for the 12 months ended April 30, 2025 and included six new pistols, six new long guns, and many new product line extensions.
−Removed: Gross margin decreased 270 basis points from the prior fiscal year in spite of a $3.2 million legal settlement recognized in the prior year comparable period.
−Removed: Excluding the impact of the prior year legal settlement, gross margin was 330 basis points lower as a result of higher material costs, higher promotional costs, and a shift in product mix to lower margin models, partially offset by lower inventory adjustments (including standard cost revaluations, shrink, and excess inventory write downs).
−Removed: Inventory balances increased $29.3 million between April 30, 2024 and April 30, 2025 as a result of a slowdown in demand combined with level loading of our manufacturing facilities to ensure our ability to satisfy anticipated future demand.
+Added: Sales of our handguns increased $62.5 million, or 18.8%, over fiscal 2025, primarily as a result of increased shipments of newly introduced products (defined as any new SKU not shipped in the prior year), higher consumer demand, and a 2% to 3% price increase on select products that became effective on January 1, 2026.
+Added: Shipments of new products represented 43.6% of handgun sales in the period.
+Added: Handgun unit shipments into the sporting goods channel increased 19.0% over fiscal 2025, while overall consumer demand decreased 0.2% (as indicated by adjusted background checks for handguns reported to the National Instant Criminal Background Check System, or NICS).
+Added: Sales of our long guns decreased $13.5 million, or 13.0%, from fiscal 2025, primarily as a result of the timing of new product launches in fiscal 2025, which were at higher selling prices, combined with lower consumer demand during fiscal 2026.
+Added: Shipments of new products represented 30.6% of long gun sales in the period.
+Added: Long gun unit shipments into the sporting goods channel decreased 5.7% from fiscal 2025, while overall consumer demand for long guns decreased 4.6% (as indicated by NICS).
+Added: Other products and services sales increased $191,000, or 0.5%, over fiscal 2025, as higher e-commerce and suppressor sales offset lower business-to-business sales.
+Added: Lower business-to-business sales resulted from the closure of our Deep River facility in fiscal 2025 as part of the Relocation.
+Added: New products represented 38.1% of net sales for the year ended April 30, 2026 and included four new pistols, four new long guns, and many new product line extensions.
+Added: Gross margin for fiscal 2026 was 26.9% compared with 26.8% for fiscal 2025, primarily due to lower promotional costs and lower federal firearms excise taxes as a result of the favorable completion of a recent audit, partially offset by unfavorable fixed-cost absorption from lower production volumes combined with higher tariffs on imported materials and components.
+Added: We estimate that higher tariffs negatively impacted gross margin by approximately 100 basis points when compared to the comparable period last year.
+Added: Inventory balances declined $33.6 million between April 30, 2025 and April 30, 2026 as a result of our proactive inventory management and production planning efforts intended to optimize inventory levels and cash flows.
While inventory levels, both internally and in the distribution channel, in excess of demand may negatively impact future operating results, it is difficult to forecast the potential impact of distributor inventories on future revenue and income as demand is impacted by many factors, including seasonality, new product introductions, news events, political events, and consumer tastes.
−Removed: We expect our inventory levels to moderately decline during fiscal 2026.
+Added: We expect our inventory levels to increase modestly during fiscal 2027.
Operating Expenses
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% of net sales
−Removed: Research and development expenses increased $2.3 million, primarily because of higher materials and testing costs associated with new product development and higher compensation-related costs.
−Removed: Selling, marketing, and distribution expenses increased $702,000 in spite of a $1.9 million impairment on distribution equipment related to the Relocation and one-time costs related to our grand opening event at our Maryville facility in fiscal 2024.
−Removed: the impact of these one-time prior year charges, selling, marketing, and distribution expenses increased $3.5 million, primarily as a result of higher spending on promotions and higher compensation-related costs.
−Removed: General and administrative expenses decreased $8.2 million, primarily because of lower Relocation costs, lower profit-related compensation expense, and lower insurance costs, partially offset by higher legal costs.
−Removed: During fiscal 2025, we sold certain real estate located adjacent to our former Missouri distribution center for $2.3 million, net of transaction costs, and recognized a $2.3 million pre-tax gain on sale.
+Added: Research and development expenses increased $737,000 because of higher tooling-related costs, partially offset by materials and testing costs, which were elevated in the prior year.
+Added: Selling, marketing, and distribution expenses increased $284,000, primarily as a result of higher profit-related compensation expenses and one-time costs related to the grand opening event for the Academy, partially offset by lower promotional costs.
+Added: General and administrative expenses increased $5.1 million over the prior year, primarily as a result of higher profit-related and stock-based compensation expenses, and higher legal expenses.
+Added: During fiscal 2025, we sold certain real estate located adjacent to our former distribution center located in Columbia, Missouri for $2.3 million, net of transaction costs, and recognized a $2.3 million pre-tax gain on sale.
Operating Income
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% of net sales (operating margin)
−Removed: Operating income for fiscal 2025 decreased $23.2 million, or 49.3%, from the prior fiscal year, primarily for the reasons outlined above.
+Added: Operating income for fiscal 2026 increased $5.3 million, or 22.3%, over the prior fiscal year, primarily for the reasons outlined above.
+Added: Other Income/(Expense), net
The following table sets forth certain information regarding other income for the fiscal years ended April 30, 2026, 2025, and 2024 (dollars in thousands):
−Removed: Other (expense)/income, net
−Removed: Other income for fiscal 2025 decreased $6.7 million, primarily as a result of the sale of certain intangible assets in fiscal 2024.
−Removed: Interest Expense
+Added: Other income/(expense), net
+Added: Other income for fiscal 2026 increased $686,000, primarily as a result of investment income on our marketable securities.
+Added: Interest Expense, net
The following table sets forth certain information regarding interest expense for the fiscal years ended April 30, 2026, 2025, and 2024 (dollars in thousands):
Interest expense, net
−Removed: Interest expense increased by $2.6 million, primarily as a result of higher average debt balances and lower average cash balances compared with fiscal 2024.
+Added: Interest expense increased by $188,000, primarily as a result of lower average cash balances, partially offset by lower average interest rates on debt and lower average debt balances during fiscal 2026 compared with fiscal 2025.
Income Tax Expense
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% of income from operations (effective tax
−Removed: We recorded income tax expense of $5.8 million for fiscal 2025, $4.5 million lower than the prior fiscal year, primarily because of decreased profitability.
+Added: We recorded income tax expense of $6.6 million for fiscal 2026, $769,000 higher than the prior fiscal year, primarily because of increased profitability.
Our effective tax rates were 26.3% and 30.2% for fiscal 2026 and 2025, respectively.
−Removed: The 2024 rate was impacted favorably as a result of an amendment of prior year returns for the foreign derived income deduction that reduced 2024 income tax expense by $1.4 million, or 2.9%.
−Removed: Adjusting for the foreign derived income deduction for each year, the effective tax rate would have been 22.8% for fiscal 2024, which is 7.9% lower than fiscal 2025 due primarily to decreased pretax income and changes in state apportionment and other state adjustments.
+Added: The 2026 rate was impacted favorably as a result of a decrease in state taxable income from the prior year and favorable return to provision adjustments.
The following table sets forth certain information regarding net income and the related per share data for the fiscal years ended April 30, 2026, 2025, and 2024 (dollars in thousands, except per share data):
Net income per share:
−Removed: Net income decreased $27.9 million, or $0.59 per diluted share, from fiscal 2024 primarily for reasons outlined above.
+Added: Net income increased $5.1 million, or $0.11 per diluted share, over fiscal 2025 primarily for reasons outlined above.
Liquidity and Capital Resources
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Operating activities generally represent the principal source of our cash flow.
−Removed: Cash used in operating activities was $7.2 million in fiscal 2025 compared with $106.7 million of cash provided in fiscal 2024.
−Removed: Cash used in operating activities in fiscal 2025 was unfavorably impacted by a $29.3 million increase in inventory compared with a $16.6 million decrease in inventory in fiscal 2024, a $14.8 million decrease in accounts payable compared with a $18.2 million increase in accounts payable in fiscal 2024, an $8.1 million decrease in accrued payroll and incentives compared with a $1.4 million decrease in accrued payroll and incentives in fiscal 2024, a $4.4 million decrease in accrued profit sharing compared with a $895,000 increase in accrued profit sharing in fiscal 2024, and lower net income.
−Removed: Cash used in operating activities in fiscal 2025 was favorably impacted by a $3.2 million decrease in accounts receivable compared with a $3.9 million increase in accounts receivable in fiscal 2024.
+Added: Cash provided by operating activities was $114.2 million in fiscal 2026 compared with $7.2 million of cash used in fiscal 2025.
+Added: Cash provided by operating activities in fiscal 2026 was favorably impacted by a $33.6 million decrease in inventory compared with a $29.3 million increase in inventory in fiscal 2025, a $5.4 million increase in accounts payable compared with a $14.8 million decrease in accounts payable in fiscal 2025, a $6.1 million increase in accrued payroll and incentives compared with an $8.1 million decrease in accrued payroll and incentives in fiscal 2025, a $15.8 million decrease in accounts receivable compared with a $3.2 million decrease in accounts receivable in fiscal 2025, a $519,000 increase in accrued profit sharing compared with a $4.5 million decrease in accrued profit sharing in fiscal 2025, and higher net income.
+Added: Cash provided by operating activities in fiscal 2026 was unfavorably impacted by a $3.0 million decrease in accrued expenses and deferred revenue compared with a $268,000 decrease in accrued expenses and deferred revenue in fiscal 2025.
Investing Activities
−Removed: Cash used in investing activities decreased $62.3 million for fiscal 2025 compared with fiscal 2024.
−Removed: We paid $21.6 million for capital expenditures for fiscal 2025, which was $69.2 million lower than fiscal 2024, primarily as a result of payments related to the Relocation in the prior year period.
+Added: Cash used in investing activities increased $9.1 million for the fiscal 2026 compared with fiscal 2025, primarily as a result of $4.6 million of purchases of marketable securities during fiscal 2026, a $2.1 million increase in capital expenditures related to the Academy, and $2.3 million of proceeds included in fiscal 2025 related to the sale of certain real estate located adjacent to our former distribution center located in Columbia, Missouri.
We currently expect to spend $40.0 to $45.0 million on capital expenditures in fiscal 2027.
Financing Activities
−Removed: Cash used in financing activities was $9.2 million for fiscal 2025 compared with $18.0 million in fiscal 2024.
−Removed: Cash used in financing activities during fiscal 2025 was primarily the result of $25.5 million of share repurchases and $23.1 million in dividend distributions, partially offset by $40 million of net borrowings under our revolving line of credit.
+Added: Cash used by financing activities was $83.0 million for fiscal 2026 compared with $9.2 million for fiscal 2025.
+Added: Cash used by financing activities during fiscal 2026 was primarily the result of $60.0 million in net repayments under our revolving line of credit and $23.2 million in dividend distributions.
+Added: Cash used in financing activities for fiscal 2025 was primarily the result of $40.0 million of net borrowings, $25.5 million of stock repurchases, and $23.1 million in dividend distributions.
+Added: We had no stock repurchases during fiscal 2026.
Credit Facilities — We entered into the Second Amended and Restated Credit Agreement on October 3, 2024.
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The Second Amended and Restated Credit Agreement also provides a swingline facility in the maximum amount of $5.0 million at any one time (subject to availability under the Revolving Line).
−Removed: Each Swingline Loan (as defined in the Amended and Restated Credit Agreement) bears interest at the Base Rate, plus an applicable margin based on our Adjusted Consolidated Leverage Ratio (as defined in the Second Amended and Restated Credit Agreement).
+Added: Each Swingline Loan (as defined in the Amended and Restated Credit Agreement) bears interest at the Base Rate, plus an applicable margin based on our Adjusted
+Added: Consolidated Leverage Ratio (as defined in the Second Amended and Restated Credit Agreement).
Subject to the satisfaction of certain terms and conditions described in the Second Amended and Restated Credit Agreement, we have an option to increase the Revolving Line by an aggregate amount not exceeding $50.0 million.
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During fiscal 2025, we purchased 1,531,763 shares of our common stock for $21.4 million under the 2023 Authorization.
−Removed: During fiscal 2025, we purchased 1,531,763 shares of our common stock for $21.4 million under the 2023 Authorization.
The 2023 Authorization expired on September 19, 2024.
On September 5, 2024, our Board of Directors authorized the repurchase of up to $50.0 million of our common stock, subject to certain conditions, in the open market or in privately negotiated transactions from September 20, 2024 through September 20, 2025, or the 2024 Authorization.
−Removed: During fiscal 2025, we repurchased 312,310 shares of our common stock for $4.1 million under the 2024 Authorization.
−Removed: During fiscal 2025, we repurchased a total of 1,844,073 shares of our common stock for $25.5 million.
+Added: As of April 30, 2026, we had repurchased 312,310 shares of our common stock for $4.1 million under the 2024 Authorization.
+Added: On September 15, 2025, our Board of Directors authorized the repurchase of up to $50.0 million of our common stock, subject to certain conditions, in the open market or in privately negotiated transactions from September 21, 2025 through September 21, 2026, or the 2025 Authorization.
+Added: As of April 30, 2026, we had not repurchased any shares of our common stock under the 2025 Authorization.
Finance Lease – We are a party to a material finance lease, which is a $46.2 million lease that has an effective interest rate of approximately 5.0% and is payable in 240 monthly installments through fiscal 2039, as well as a related payment and performance guaranty, dated October 26, 2017, in favor of the Original Missouri Landlord.
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Because of the Amended and Restated Guaranty, we continue to account for this lease as we have since prior to the Relocation.
−Removed: During fiscal 2025, AOUT made payments pursuant to this lease directly to the landlord and we neither received nor paid any cash related to this arrangement.
+Added: During fiscal 2025 and 2026, AOUT made payments pursuant to this lease directly to the landlord and we neither received nor paid any cash related to this arrangement.
See Note 3 — Leases for additional information.
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We maintain disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.
−Removed: Our management, under the supervision of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act as of April 30, 2025, the end of the period covered by this Annual Report on Form 10-K.
−Removed: Based on that evaluation, we have concluded that, as of the end of the period covered by this Annual Report on Form 10-K, our disclosure controls and procedures were not effective.
−Removed: This determination is based on the material weakness in our internal control over financial reporting described below.
+Added: Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act).
+Added: Based on this evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of April 30, 2026, our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act was recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
Management’s Annual Report on Internal Control Over Financial Reporting
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Management, with participation of the CEO and CFO, under the oversight of our Audit Committee of our Board of Directors, conducted an evaluation of the effectiveness of our internal control over financial reporting as of April 30, 2026, using the framework established in Internal Control-Integrated Framework (2013), issued by the Committee of Sponsoring Organizations of the Treadway Commission (the COSO Framework).
−Removed: Based on that evaluation, management concluded that our internal control over financial reporting was not effective as of April 30, 2025 due to the material weakness in internal control over financial reporting, described below.
−Removed: A material weakness, as defined in Exchange Act Rule 12b-2, is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis.
−Removed: A deficiency was identified in our internal control over financial reporting related to the operation of the control to review the accrual for certain legal expenses.
−Removed: This control did not operate effectively due to insufficient knowledge and experience of our personnel related to the reconciliation of the accrual for certain legal expenses.
−Removed: The material weakness resulted in immaterial misstatements to the accrual for certain legal expenses that were recorded in our consolidated financial statements during the interim and annual periods for the year ended April 30, 2024 and during the interim periods for the year ended April 30, 2025.
−Removed: Prior period amounts have been adjusted to correct the immaterial error, which overstated accrued expenses and deferred revenue and general and administrative expenses, understated income tax expense, and overstated income tax receivable and deferred income taxes.
−Removed: The material weakness creates a reasonable possibility that a material misstatement to our annual or interim consolidated financial statements would not be prevented or detected on a timely basis by our internal controls.
−Removed: Because of this material weakness, management concluded that we did not maintain effective internal control over financial reporting as of April 30, 2025.
−Removed: Our independent registered public accounting firm, KPMG LLP, who audited the consolidated financial statements included in this Annual Report on Form 10-K, issued an adverse opinion on the effectiveness of the Company's internal control over financial reporting.
−Removed: KPMG LLP's report appears elsewhere in this Form 10-K.
−Removed: Management’s Plan for Remediation of the Material Weakness
−Removed: In response to the material weakness described above, with the oversight of the Audit Committee of our Board of Directors, management plans to remediate the material weakness such that the control over the accrual for certain legal expenses is operating effectively.
−Removed: The remediation actions include developing a training program for certain personnel to increase their knowledge of accruals for legal expenses.
−Removed: Our remediation efforts are ongoing, and management expects that the remediation efforts and testing will continue in fiscal 2026.
−Removed: Management believes that these actions, and the improvements achieved as a result thereof, will effectively remediate the material weakness.
−Removed: However, the material weakness in our internal control over financial reporting will not be considered remediated until the remediated controls operate for a sufficient period of time and management has concluded, through testing, that these controls are operating effectively.
+Added: Based on that evaluation, management believes that our internal control over financial reporting was effective as of April 30, 2026.
+Added: The effectiveness of our internal control over financial reporting as of April 30, 2026 has been audited by KPMG LLP, an independent registered public accounting firm, which also audited our consolidated financial statements for fiscal 2026.
+Added: KPMG LLP's report on our internal control over financial reporting is included herein.
Changes in Internal Control over Financial Reporting
−Removed: No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during our fourth fiscal quarter of 2025 has materially affected, or is reasonably likely to materially affect our internal control over financial reporting.
+Added: There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the fiscal quarter ended April 30, 2026 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Other Information
−Removed: Rule10b5-1 Trading Arrangement;
−Removed: Non-Rule 10b5-1 Trading Arrangement
−Removed: During the three months ended April 30, 2025, none of our directors or officers adopted or terminated a "non-Rule 10b5-1 trading arrangement" (as defined in Item 408 of Regulation S-K).
−Removed: Amendment of Material Definitive Agreements
−Removed: On June 18, 2025, the Compensation Committee of our Board of Directors approved an amendment and restatement of the Smith & Wesson Brands, Inc.
−Removed: Executive Severance Plan, the Amended and Restated Severance Plan.
−Removed: Among other things, the Amended and Restated Severance Plan:
−Removed: (i) increases the duration of the Change in Control Protection Period (as defined therein) from 12 months to 24 months;
−Removed: (ii) increases the period of base salary continuation in the case of a termination without Good Cause (as defined therein) or a resignation for Good Reason (as defined therein) from 26 weeks to 18 months;
−Removed: (iii) increases the period of base salary continuation in the case of a termination without Good Cause during a Potential Change in Control Protection Period (as defined therein) or Change in Control Protection Period (as defined therein) or a resignation upon an Adverse Change in Control Effect (as defined therein) from 52 weeks to 24 months;
−Removed: (iv) increases the annual cash bonus payable under the scenario described in (iii) above to two times target;
−Removed: (v) provides that the non-competition restriction period will apply for the period during which the individual receives cash severance;
−Removed: (vi) increases the duration of the application of the non-solicitation restriction from 12 months to 18 months;
−Removed: and (vii) includes other administrative changes.
−Removed: On June 18, 2025, we entered into an Amended and Restated Employment Agreement with our President and Chief Executive Officer, Mark Smith.
−Removed: Among other things, the Amended and Restated Employment Agreement:
−Removed: (a) increases the duration of the protection period related to a Change in Control (as defined therein) from 12 months to 24 months;
−Removed: (b) increases the period of base salary continuation in the case of a Change in Control from 18 months to 24 months;
−Removed: (c) increases the annual cash bonus payable under the scenario described in (b) above to two times target;
−Removed: (d) increases the duration of the car allowance, medical coverage and COBRA coverage benefits under the scenario described in (b) above from 18 months to two years;
−Removed: and (e) includes other administrative changes.
+Added: Director and Executive Officer Trading
+Added: A portion of our directors’ and officers’ compensation is in the form of equity awards and, from time to time, they may engage in open-market transactions with respect to our securities for diversification or other personal reasons.
+Added: All such transactions in our securities by directors and officers must comply with our Policy on Inside Information and Insider Trading, which requires that transactions be in accordance with applicable U.S.
+Added: federal securities laws that prohibit trading while in possession of material nonpublic information.
+Added: Rule 10b5-1 under the Exchange Act provides an affirmative defense that enables directors and officers to prearrange transactions in the Company’s securities in a manner that avoids concerns about initiating transactions while in possession of material nonpublic information.
+Added: The following table describes the contracts, instructions or written plans for the purchase or sale of securities adopted by our directors or officers (as defined in Rule 16a-1(f) under the Exchange Act) during the three months ended April 30, 2026, that are intended to satisfy the affirmative defense conditions of Rule 10b5-1(c).
+Added: No other Rule 10b5-1 trading arrangements or “ non-Rule 10b5–1 trading arrangements” (as defined by S-K Item 408(c)) were entered into or terminated by our directors or officers during such period.
+Added: Termination Date
+Added: President, CEO, and Director
+Added: Adoption of Rule 10b5-1 Plan
+Added: March 24, 2026
+Added: March 24, 2027
D isclosure Regarding Foreign Jurisdictions that Prevent Inspections
2 unchanged sentences
The information required by this Item relating to our directors and corporate governance is incorporated herein by reference to the definitive Proxy Statement to be filed pursuant to Regulation 14A of the Exchange Act for our 2026 Annual Meeting of Stockholders.
−Removed: The information required by this Item relating to our executive officers is included in Item 1, “Business — Executive Officers” of this Annual Report on Form 10-K.
+Added: The information required by this Item relating to our executive officers is included in Item 1, “Business — Information about our Executive Officers” of this Annual Report on Form 10-K.
We have adopted our Policy on Inside Information and Insider Trading governing the purchase, sale, and/or other disposition of our securities by our directors, officers, employees, and other covered persons.
12 unchanged sentences
(1) Consolidated Financial Statements are listed in the Index to Consolidated Financial Statements on page F-1 of this Annual Report on Form 10-K.
−Removed: (2) All schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission have been omitted because of the absence of the conditions under which they are required or because the information required is shown in the financial statements or notes above.
+Added: (2) All schedules for which provision is made in the applicable accounting regulations of the SEC have been omitted because of the absence of the conditions under which they are required or because the information required is shown in the financial statements or notes above.
Separation and Distribution Agreement, dated as of August 21, 2020, by and between the Registrant and American Outdoor Brands, Inc.
37 unchanged sentences
Second Amended and Restated Credit Agreement, dated as of October 3, 2024, by and among the Registrant, Smith & Wesson Sales Company, Smith & Wesson, Inc., the Guarantors, the Lenders, and TD Bank, N.A.
+Added: First Amendment to Second Amended and Restated Credit Agreement, dated August 15, 2025, by and among the Registrant, Smith & Wesson Sales Company, Smith & Wesson, Inc., the Guarantors, the Lenders, and TD Bank, N.A.
Project Agreement, dated September 30, 2021, by and among The Industrial Development Board of Blount County and the cities of Alcoa and Maryville, Tennessee, a public, nonprofit corporation organized and existing under the laws of the State of Tennessee and the Registrant (22)
1 unchanged sentence
Standard Design-Build Agreement and General Conditions, dated February 2, 2023, between Smith & Wesson Brands, Inc and The Christman Company (portions of the exhibit have been omitted) (15)
+Added: Accountability Agreement, dated June 2, 2022, by and among Tennessee Department of Economic and Community Development, a department of the State of Tennessee, Blount Partnership, and Smith & Wesson Brands, Inc.
Form of Indemnity Agreement entered into with the following directors and executive officers:
11 unchanged sentences
Form of Dividend Equivalent Award Agreement (24)
+Added: Form of Amended and Restated Dividend Equivalent Award Agreement
Agreement and Release, dated April 28, 2025 (25)
18 unchanged sentences
(2) Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on March 22, 2024.
−Removed: (3) Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on April 12, 2019.
+Added: (3) Incorporated by reference to the Registrant’s Form 10-Q filed with the SEC on March 2, 2017.
(4) Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on October 1, 2013.
5 unchanged sentences
(10) Incorporated by reference to the Registrant’s Form S-8 filed with the SEC on December 20, 2013.
−Removed: (11) Incorporated by reference to Appendix A of the Registrant's Proxy Statement filed with the SEC on August 3, 2022.
+Added: (11) Incorporated by reference to the Registrant’s Form 10-Q filed with the SEC on September 8, 2022.
(12) Incorporated by reference to the Registrant’s Form 10-K filed with the SEC on June 22, 2015.
4 unchanged sentences
(17) Incorporated by reference to the Registrant’s Form 10-K filed with the SEC on June 20, 2025.
+Added: (18) Incorporated by reference to the Registrant’s Form 10-K filed with the SEC on June 20, 2024.
(19) Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on May 2, 2023.
(20) Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on October 4, 2024.
+Added: (21) Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on August 18, 2025.
(22) Incorporated by reference to the Registrant’s Form 8-K filed with the SEC on September 30, 2021.
(23) Incorporated by reference to the Registrant’s Form S-8 filed with the SEC on March 30, 2022.
−Removed: (22) Incorporated by reference to the Registrant’s Form 10-Q filed with the SEC on September 8, 2022.
(24) Incorporated by reference to the Registrant’s Form 10-Q filed with the SEC on December 7, 2023.
35 unchanged sentences
Smith & Wesson Brands, Inc.:
−Removed: Opinion on the Consolidated Financial Statements
−Removed: We have audited the accompanying consolidated balance sheet of Smith & Wesson Brands, Inc.
−Removed: and subsidiaries (the Company) as of April 30, 2025, the related consolidated statements of income, changes in stockholders’ equity, and cash flows for the year then ended, and the related notes (collectively, the consolidated financial statements).
−Removed: In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of April 30, 2025, and the results of its operations and its cash flows for the year then ended, in conformity with U.S.
+Added: Opinions on the Consolidated Financial Statements and Internal Control Over Financial Reporting
+Added: We have audited the accompanying consolidated balance sheets of Smith & Wesson Brands, Inc.
+Added: and subsidiaries (the Company) as of April 30, 2026 and 2025, the related consolidated statements of income, changes in stockholders’ equity, and cash flows for each of the years in the two-year period ended April 30, 2026, and the related notes (collectively, the consolidated financial statements).
+Added: We also have audited the Company’s internal control over financial reporting as of April 30, 2026, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
+Added: In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of April 30, 2026 and 2025, and the results of its operations and its cash flows for each of the years in the two-year period ended April 30, 2026, in conformity with U.S.
generally accepted accounting principles.
−Removed: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of April 30, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated June 20, 2025 expressed an adverse opinion on the effectiveness of the Company’s internal control over financial reporting.
−Removed: Basis for Opinion
−Removed: These consolidated financial statements are the responsibility of the Company’s management.
−Removed: Our responsibility is to express an opinion on these consolidated financial statements based on our audit.
−Removed: We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.
+Added: Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of April 30, 2026 based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
+Added: Basis for Opinions
+Added: The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting.
+Added: Our responsibility is to express an opinion on the Company’s consolidated financial statements and an opinion on the Company’s internal control over financial reporting based on our audits.
+Added: We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S.
federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
−Removed: We conducted our audit in accordance with the standards of the PCAOB.
−Removed: Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud.
−Removed: Our audit included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks.
+Added: We conducted our audits in accordance with the standards of the PCAOB.
+Added: Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
+Added: Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks.
Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.
−Removed: Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
−Removed: We believe that our audit provides a reasonable basis for our opinion.
−Removed: Critical Audit Matters
−Removed: Critical audit matters are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that:
−Removed: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.
−Removed: We determined that there are no critical audit matters.
−Removed: We have served as the Company's auditor since 2024.
−Removed: Nashville, Tennessee
−Removed: June 20, 2025
−Removed: Report of Independent Registered Public Accounting Firm
−Removed: To the Stockholders and the Board of Directors
−Removed: Smith & Wesson Brands, Inc.:
−Removed: Opinion on Internal Control Over Financial Reporting
−Removed: We have audited Smith & Wesson Brands, Inc.
−Removed: and subsidiaries' (the Company) internal control over financial reporting as of April 30, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
−Removed: In our opinion, because of the effect of the material weakness, described below, on the achievement of the objectives of the control criteria, the Company has not maintained effective internal control over financial reporting as of April 30, 2025, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.
−Removed: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheet of the Company as of April 30, 2025, the related consolidated statements of income, changes in stockholders’ equity, and cash flows for the year then ended, and the related notes (collectively, the consolidated financial statements), and our report dated June 20, 2025 expressed an unqualified opinion on those consolidated financial statements.
−Removed: A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis.
−Removed: A material weakness related to the ineffective operation of a control over the accrual for certain legal expenses has been identified and included in management’s assessment.
−Removed: The material weakness was considered in determining the nature, timing, and extent of audit tests applied in our audit of the 2025 consolidated financial statements, and this report does not affect our report on those consolidated financial statements.
−Removed: Basis for Opinion
−Removed: The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control Over Financial Reporting.
−Removed: Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.
−Removed: We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S.
−Removed: federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
−Removed: We conducted our audit in accordance with the standards of the PCAOB.
−Removed: Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
+Added: Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk.
−Removed: Our audit also included performing such other procedures as we considered necessary in the circumstances.
−Removed: We believe that our audit provides a reasonable basis for our opinion.
+Added: Our audits also included performing such other procedures as we considered necessary in the circumstances.
+Added: We believe that our audits provide a reasonable basis for our opinions.
Definition and Limitations of Internal Control Over Financial Reporting
1 unchanged sentence
A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company;
−Removed: (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made
−Removed: only in accordance with authorizations of management and directors of the company;
+Added: (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with
+Added: generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company;
and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
1 unchanged sentence
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
+Added: Critical Audit Matters
+Added: Critical audit matters are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that:
+Added: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.
+Added: We determined that there are no critical audit matters.
+Added: We have served as the Company's auditor since 2024.
Nashville, Tennessee
3 unchanged sentences
Opinion on the Financial Statements
−Removed: We have audited the accompanying consolidated balance sheet of Smith & Wesson Brands, Inc.
−Removed: and subsidiaries (the "Company") as of April 30, 2024, the related consolidated statements of income, changes in stockholders' equity, and cash flows, for each of the two years in the period ended April 30, 2024, and the related notes (collectively referred to as the "financial statements").
−Removed: In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of April 30, 2024, and the results of its operations and its cash flows for each of the two years in the period ended April 30, 2024, in conformity with accounting principles generally accepted in the United States of America.
+Added: We have audited the accompanying consolidated statements of income, changes in stockholders' equity, and cash flows, for the year ended April 30, 2024, and the related notes (collectively referred to as the "financial statements") of Smith & Wesson Brands, Inc.
+Added: (the “Company”).
+Added: In our opinion, the financial statements present fairly, in all material respects, the results of the Company’s operations and its cash flows for the year ended April 30, 2024, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the Company’s management.
−Removed: Our responsibility is to express an opinion on the Company’s financial statements based on our audits.
+Added: Our responsibility is to express an opinion on the Company’s financial statements based on our audit.
We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S.
federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
−Removed: We conducted our audits in accordance with the standards of the PCAOB.
+Added: We conducted our audit in accordance with the standards of the PCAOB.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
−Removed: Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.
+Added: Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks.
Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
−Removed: Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
−Removed: We believe that our audits provide a reasonable basis for our opinion.
+Added: Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements.
+Added: We believe that our audit provides a reasonable basis for our opinion.
/s/ Deloitte & Touche LLP
−Removed: Hartford, Connecticut
−Removed: June 20, 2024 (June 20, 2025, as to the immaterial correction of an error described in Note 2 and the retrospective application of the adoption of ASU 2023-07, Segment Reporting (Topic 280):
−Removed: Improvements to Reportable Segment Disclosures, as described in Notes 2 and 16)
+Added: Nashville, Tennessee
+Added: June 20, 2024 (June 20, 2025, as to the retrospective application of ASU 2023-07, Segment Reporting (Topic 280):
+Added: Improvements to Reportable Segment Disclosures, as presented in Note 16)
We began serving as the Company's auditor in 2014.
8 unchanged sentences
Cash and cash equivalents
+Added: Marketable securities
Accounts receivable, net of allowances for credit losses of $ 5 on
−Removed: April 30, 2025 and $ 0 on April 30, 2024
+Added: April 30, 2026 and April 30, 2025
Prepaid expenses and other current assets
22 unchanged sentences
Common stock, $ 0.001 par value, 100,000,000 shares authorized,
−Removed: 75,789,455 issued and 44,111,461 shares outstanding on April 30,
+Added: 44,605,993 shares issued and outstanding on April 30,
2026 and 75,789,455 shares issued and 44,111,461 shares
2 unchanged sentences
Retained earnings
−Removed: Accumulated other comprehensive income
−Removed: Treasury stock, at cost ( 31,677,994 shares on April 30, 2025 and
−Removed: 29,833,921 shares on April 30, 2024)
+Added: Treasury stock, at cost ( no shares on April 30, 2026 and 31,677,994 shares
+Added: on April 30, 2025)
Total stockholders’ equity
14 unchanged sentences
Operating income
−Removed: Other (expense)/income, net:
−Removed: Other (expense)/income, net
+Added: Other expense, net:
+Added: Other income/(expense), net
Interest expense, net
16 unchanged sentences
Stock-based compensation
−Removed: Shares issued under employee stock purchase plan
+Added: Shares issued under employee stock purchase
Issuance of common stock under restricted
stock unit awards, net of shares surrendered
−Removed: Dividends issued ($ 0.40 per common share)
+Added: Repurchase of treasury stock, including
+Added: Dividends issued, including accruals ($ 0.48
+Added: per common share)
Balance at April 30, 2024
Stock-based compensation
−Removed: Shares issued under employee stock purchase plan
+Added: Shares issued under employee stock purchase
Issuance of common stock under restricted
stock unit awards, net of shares surrendered
−Removed: Repurchase of treasury stock, including excise tax
−Removed: Unpaid dividend accrued
−Removed: Dividends issued ($ 0.48 per common share)
+Added: Repurchase of treasury stock, including
+Added: Dividends issued, including accruals ($ 0.52
+Added: per common share)
Balance at April 30, 2025
Stock-based compensation
−Removed: Shares issued under employee stock purchase plan
+Added: Shares issued under employee stock purchase
Issuance of common stock under restricted
stock unit awards, net of shares surrendered
−Removed: Repurchase of treasury stock, including excise tax
−Removed: Unpaid dividend accrued
−Removed: Dividends issued ($ 0.52 per common share)
+Added: Retirement of common stock held in treasury
+Added: Dividends issued, including accruals ($ 0.52
+Added: per common share)
Balance at April 30, 2026
6 unchanged sentences
Cash flows from operating activities:
−Removed: Adjustments to reconcile net income to net cash (used in)/provided by
+Added: Adjustments to reconcile net income to net cash provided by/(used in)
operating activities:
14 unchanged sentences
Other non-current liabilities
−Removed: Net cash (used in)/provided by operating activities
+Added: Net cash provided by/(used in) operating activities
Cash flows from investing activities:
+Added: Purchases of marketable securities
Payments to acquire patents and software
−Removed: Proceeds from sale of property and equipment
Proceeds from sale of intangible assets
+Added: Proceeds from sale of property and equipment
Payments to acquire property and equipment
2 unchanged sentences
Proceeds from loans and notes payable
+Added: Payments on loans and notes payable
Cash paid for debt issuance costs
Payments on finance lease obligation
−Removed: Payments on notes and loans payable
Payments to acquire treasury stock
2 unchanged sentences
Payment of employee withholding tax related to restricted stock units
−Removed: Net cash (used in)/provided by financing activities
−Removed: Net (decrease)/increase in cash and cash equivalents
+Added: Net cash used in financing activities
+Added: Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of period
10 unchanged sentences
(In thousands)
−Removed: Purchases of property and equipment included in accounts
+Added: Purchases of property and equipment included in accounts payable
Capital lease included in accrued expenses and finance lease
9 unchanged sentences
and Houlton, Maine.
−Removed: We also sell our manufacturing services to other businesses to attempt to level-load our factories.
−Removed: We sell those services under our Smith & Wesson and Smith & Wesson Precision Components brands.
−Removed: On September 30, 2021, we announced our plan to move our headquarters and significant elements of our operations to Maryville, Tennessee in 2023, or the Relocation.
−Removed: During fiscal 2024, we began manufacturing and distribution activities from the new Maryville, Tennessee facility.
−Removed: During fiscal 2025, we ceased operations at our Deep River facility and vacated the premises.
−Removed: See Note 14 — Commitments and Contingencies , and Note 15 — Restructuring for more information.
+Added: We also sell our manufacturing services under our Smith & Wesson and Smith & Wesson Precision Components brands to other businesses to attempt to level-load our factories.
+Added: During the fiscal year ended April 30, 2025, or fiscal 2025, we discontinued operations at our Deep River, Connecticut facility and vacated the premises.
+Added: See Note 14 — Commitments and Contingencies for more information.
Significant Accounting Policies
−Removed: Immaterial Correction of an Error — During the fourth quarter of fiscal 2025, we identified an immaterial error related to our accrual for certain legal expenses, resulting in an overstatement of general and administrative expenses in the interim and annual periods for the year ended April 30, 2024 and during the interim periods for the year ended April 30, 2025.
−Removed: In accordance with Staff Accounting Bulletin (“SAB”) No.
−Removed: 99, Materiality, and SAB No.
−Removed: 108, Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements , we evaluated the quantitative and qualitative considerations of the error and determined that the related impact was not material to results of operations, financial position, or cash flows for any historical annual or interim period.
−Removed: Prior year amounts have been adjusted to correct the immaterial error, which overstated accrued expenses and deferred revenue and general and administrative expenses by $ 2.3 million and understated income tax expense by $ 569,000 and overstated the related amounts of income tax receivable by $ 548,000 and deferred income taxes by $ 21,000 as of April 30, 2024 and for the year then ended.
−Removed: Related changes to net income, corresponding line items within cash provided by operating activities, and related disclosures within the notes accompanying these financial statements, reflect the immaterial correction.
Use of Estimates — The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the financial statement dates and the reported amounts of revenue and expenses during the reporting periods.
2 unchanged sentences
Principles of Consolidation — The accompanying consolidated financial statements include the accounts of Smith & Wesson Brands, Inc.
−Removed: and its wholly owned subsidiaries, including Smith & Wesson Inc., Smith & Wesson Sales Company, and SWPC Plastics, LLC.
+Added: and its wholly owned subsidiaries, including Smith & Wesson Inc., Smith & Wesson Sales Company, and Smith & Wesson Online, LLC.
In our opinion, all adjustments, which include only normal recurring adjustments necessary to fairly present the financial position, results of operations, changes in stockholders’ equity, and cash flows at April 30, 2026 and 2025 and for the periods presented, have been included.
3 unchanged sentences
Fair Value of Financial Instruments — Unless otherwise indicated, the fair values of all reported assets and liabilities, which represent financial instruments not held for trading purposes, approximate the carrying values of such amounts because of their short-term nature or market rates of interest.
−Removed: SMITH & WESSON BRANDS, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Cash and Cash Equivalents — We consider all highly liquid investments purchased with original maturities of three months or less at the date of acquisition to be cash equivalents.
7 unchanged sentences
We estimate our allowance for credit losses through current past due balances, knowledge of our customers’ financial situations, and past payment history.
+Added: SMITH & WESSON BRANDS, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Concentrations of Credit Risk — Financial instruments that potentially subject us to concentration of credit risk consist principally of cash, cash equivalents, and trade receivables.
We place our cash and cash equivalents in overnight U.S.
−Removed: government securities.
+Added: government securities or money market mutual funds.
Concentrations of credit risk with respect to trade receivables are limited by the large number of customers comprising our customer base and their geographic and business dispersion.
We perform ongoing credit evaluations of our customers’ financial condition and generally do not require collateral.
+Added: For fiscal 2026, sales to two of our customers represented 24.7 % of our total net sales, and, as of April 30, 2026, two customers accounted for 30.2 % of our total accounts receivable.
+Added: No other customer represented more than 10 % of our fiscal 2026 net sales or accounted for more than 10 % of our accounts receivable as of April 30, 2026.
For fiscal 2025, sales to one of our customers represented 14.6 % of our total net sales, and, as of April 30, 2025, this customer accounted for 36.1% of our total accounts receivable.
No other customer represented more than 10 % of our fiscal 2025 net sales or accounted for more than 10 % of our accounts receivable as of April 30, 2025.
−Removed: For fiscal 2024, sales to three of our customers exceeded 10 % of our net sales, totaling 34.8 %.
−Removed: As of April 30, 2024, two of our customers each accounted for more than 10 % of our accounts receivable, for a total of 47.9 %.
Inventories — We value inventories at the lower of cost, using the first-in, first-out, or FIFO, method or net realizable value.
17 unchanged sentences
Revenue Recognition — We recognize revenue in accordance with the provisions of Accounting Standards Codification, or ASC, 606, Revenue from Contracts with Customers .
−Removed: Generally, all performance obligations are
−Removed: SMITH & WESSON BRANDS, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: satisfied and revenue is recognized when the risks and rewards of ownership have transferred to the customer, which is generally upon shipment but could be delayed until the receipt of customer acceptance.
+Added: Generally, all performance obligations are satisfied and revenue is recognized when the risks and rewards of ownership have transferred to the customer, which is generally upon shipment but could be delayed until the receipt of customer acceptance.
In some instances, sales include multiple performance obligations.
4 unchanged sentences
The net change in contract liabilities for a given period is reported as an increase or decrease to sales.
+Added: SMITH & WESSON BRANDS, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
We generally sell our products free on board, or FOB, shipping point and provide payment terms to most commercial customers ranging from 20 to 60 days of product shipment with a discount available to some customers for early payment.
9 unchanged sentences
Basic earnings per common share equals net income divided by the weighted average number of common shares outstanding during the period.
−Removed: Diluted earnings per common share equals net income divided by the weighted average number of common shares outstanding during the period, including the effect of outstanding stock options and other stock-based instruments if their effect is dilutive.
+Added: Diluted earnings per common share equals net income divided by the weighted average number of common shares outstanding during the period, including the effect of outstanding stock-based instruments if their effect is dilutive.
The following table provides a reconciliation of the net income amounts and weighted average number of common and common equivalent shares used to determine basic and diluted earnings per common share (in thousands, except per share data):
8 unchanged sentences
When such evaluations indicate that the related future undiscounted cash flows are not sufficient to recover the carrying values of the assets, such carrying values are reduced to fair value and this adjusted carrying value becomes the asset’s new cost basis.
−Removed: We determine fair value primarily using future anticipated cash flows that are directly
−Removed: SMITH & WESSON BRANDS, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: associated with and are expected to arise as a direct result of the use and eventual disposition of the asset, or asset group, discounted using an interest rate commensurate with the risk involved.
+Added: We determine fair value primarily using future anticipated cash flows that are directly associated with and are expected to arise as a direct result of the use and eventual disposition of the asset, or asset group, discounted using an interest rate commensurate with the risk involved.
We have significant long-lived tangible and intangible assets, which are susceptible to valuation adjustments as a result of changes in various factors or conditions.
2 unchanged sentences
We initially determine the values of intangible assets by a risk-adjusted, discounted cash flow approach.
−Removed: We assess the potential impairment of identifiable intangible assets and fixed assets whenever events or changes in circumstances indicate that the carrying values may not be recoverable and at least annually.
+Added: We assess the potential impairment of identifiable intangible assets and fixed assets whenever events or changes in circumstances indicate
+Added: SMITH & WESSON BRANDS, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
+Added: that the carrying values may not be recoverable and at least annually.
Factors we consider important, which could trigger an impairment of such assets, include the following:
22 unchanged sentences
Recording or reversing a valuation allowance could have a significant effect on our future results of operations and financial position.
−Removed: SMITH & WESSON BRANDS, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Warranty — We generally provide a limited one-year warranty and a lifetime service policy to the original purchaser of our new firearm products.
3 unchanged sentences
We adjust accruals as warranty claims data and historical experience warrant.
−Removed: Should we experience actual claims and repair costs that are higher than the estimated claims and repair costs used to calculate the provision, our operating results for the period or periods in which such returns or additional costs materialize would be adversely impacted.
+Added: Should we experience actual claims and repair costs that are higher than the estimated claims and repair costs used to calculate the provision, our operating results for the period or periods in which such claims or additional costs materialize would be adversely impacted.
Warranty expense for the fiscal years ended April 30, 2026, 2025, and 2024 amounted to $ 2.1 million, $ 2.4 million, and $ 2.6 million, respectively.
+Added: SMITH & WESSON BRANDS, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The following table sets forth the change in accrued warranties, a portion of which is recorded as a non-current liability, in the fiscal years ended April 30, 2026 and 2025 (in thousands):
10 unchanged sentences
Inbound freight charges and internal transfer costs are included in cost of goods sold;
−Removed: however, costs incurred to distribute products to customers is included in selling, marketing, and distribution expenses.
+Added: however, costs incurred to distribute products to customers are included in selling, marketing, and distribution expenses.
Insurance Reserves — In January 2020, we formed a wholly owned captive insurance company, which provides product liability insurance to us and our subsidiaries.
3 unchanged sentences
We record our liability for estimated premiums and incurred losses in the accompanying consolidated financial statements on an undiscounted basis.
−Removed: Recently Issued Accounting Standards — The Financial Accounting Standards Board, or FASB, issued ASU 2023-07, Segment Reporting (Topic 280):
−Removed: Improvements to Reportable Segment Disclosures, which is intended to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses.
−Removed: The disclosure requirements included in ASU 2023-07 are required for all public entities, including entities with a single reportable segment.
−Removed: ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted.
−Removed: The guidance is required to be applied on a retrospective basis.
−Removed: We adopted ASU 2023-07 in the fourth quarter of fiscal 2025.
−Removed: The adoption of this guidance resulted in additional financial statement disclosures and had no impact to our consolidated financial condition, results of operations, or cash flows.
−Removed: See Note 16 - Segment Reporting which includes the disclosures resulting from our adoption of this guidance.
−Removed: In December 2023, the FASB, issued ASU 2023-09, Improvements to Income Tax Disclosures, which requires entities to disclose in their rate reconciliation table additional categories of information about federal, state, and foreign
−Removed: SMITH & WESSON BRANDS, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: income taxes and provide more details about the reconciling items in some categories if items meet a quantitative threshold.
+Added: Recently Issued Accounting Standards — In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures , which requires entities to disclose in their rate reconciliation table additional categories of information about federal, state, and foreign income taxes and provide more details about the reconciling items in some categories if items meet a quantitative threshold.
Entities will have to provide qualitative disclosures about the new categories.
3 unchanged sentences
The guidance is effective for annual periods beginning after December 15, 2024, or the fiscal year ending April 30, 2026 for us.
−Removed: We are currently evaluating the impact, if any, that the adoption of this standard will have on financial disclosures.
+Added: We adopted ASU 2023-09 in the fourth quarter of fiscal 2026.
+Added: The adoption of this guidance resulted in additional financial statement disclosures and had no impact to our consolidated financial condition, results of operations, or cash flows.
+Added: See Note 13 - Income Taxes , which includes the disclosures resulting from our adoption of this guidance.
In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses , which requires entities to disclose, in the notes to financial statements, specified information about certain costs and expenses included in each relevant expense caption presented on the face of the income statement.
1 unchanged sentence
Entities will need to disclose the total amount of selling expenses and, in annual reporting periods, an entity’s definition of selling expenses.
−Removed: Entities are required to apply the guidance prospectively, with the option to apply it retrospectively.
−Removed: The guidance is effective for annual periods beginning after December 15, 2026, or
+Added: Entities are generally required to apply the guidance prospectively.
+Added: The guidance is effective for annual periods beginning after December 15, 2026, or the fiscal year ending April 30, 2028 for us.
+Added: We are currently evaluating the impact that the adoption of this standard will have on financial disclosures.
SMITH & WESSON BRANDS, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: the fiscal year ending April 30, 2028 for us.
−Removed: We are currently evaluating the impact that the adoption of this standard will have on financial disclosures.
We lease certain of our real estate, machinery, equipment, and photocopiers under non-cancelable operating and finance lease agreements.
31 unchanged sentences
Total finance lease liabilities
−Removed: During fiscal 2025, we recorded $ 1.0 million of operating lease costs.
−Removed: We recorded $ 2.3 million of finance lease amortization and $ 1.8 million of financing lease interest expense during fiscal 2025.
−Removed: As of April 30, 2025, our weighted average lease term and weighted average discount rate for our operating leases was 2.4 years and 4.4 %, respectively.
−Removed: As of April 30, 2025, our weighted average lease term and weighted average discount rate for our financing leases were 13.4 years and 5.0 %, respectively, and consisted primarily of our former Missouri distribution center.
+Added: During fiscal 2026, we recorded $ 143,000 of operating lease costs.
+Added: We recorded $ 2.3 million of finance lease amortization and $ 1.7 million of finance lease interest expense during fiscal 2026.
+Added: As of April 30, 2026, our weighted average lease term and weighted average discount rate for our financing leases was 12.3 years and 5.0 %, respectively, and consisted primarily of our former Missouri distribution center.
The building is pledged to secure the amounts outstanding.
The depreciable lives of right-of-use assets are limited by the lease term and are amortized on a straight-line basis over the life of the lease.
−Removed: O n October 26, 2017, we entered into a lease agreement with Ryan Boone County, LLC, or the Original Missouri Landlord, concerning certain real property located in Boone County, Missouri on which we had been operating our distribution center, or the Missouri Lease, as well as a related payment and performance guaranty, dated
+Added: O n October 26, 2017, we entered into a lease agreement with Ryan Boone County, LLC, or the Original Missouri Landlord, concerning certain real property located in Boone County, Missouri on which we had been operating our distribution center, or the Missouri Lease, as well as a related payment and performance guaranty, dated October 26, 2017, in favor of the Original Missouri Landlord.
+Added: As part of the Relocation, on January 31, 2023, we entered into (i) an assignment and assumption agreement with American Outdoor Brands, Inc., our former wholly owned subsidiary, or AOUT (which became effective on January 1, 2024), pursuant to which AOUT assumed all of our rights, entitlement, and obligations in, to, and under the Missouri Lease, or the Assignment and Assumption
SMITH & WESSON BRANDS, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: October 26, 2017, in favor of the Original Missouri Landlord.
−Removed: As part of the Relocation, on January 31, 2023, we entered into (i) an assignment and assumption agreement with American Outdoor Brands, Inc., our former wholly owned subsidiary, or AOUT (which became effective on January 1, 2024), pursuant to which AOUT assumed all of our rights, entitlement, and obligations in, to, and under the Missouri Lease, or the Assignment and Assumption Agreement, and (ii) an amended and restated guaranty in favor of RCS-S&W Facility, LLC, as successor in interest to the Original Missouri Landlord, pursuant to which Smith & Wesson Sales Company was added as a guarantor, or the Amended and Restated Guaranty.
+Added: Agreement, and (ii) an amended and restated guaranty in favor of RCS-S&W Facility, LLC, as successor in interest to the Original Missouri Landlord, pursuant to which Smith & Wesson Sales Company was added as a guarantor, or the Amended and Restated Guaranty.
Because of the Amended and Restated Guaranty, we continue to account for this lease as we have since prior to the Relocation.
2 unchanged sentences
During the fiscal year ended April 30, 2026 we recognized $ 2.1 million of depreciation expense associated with the related right-of-use asset.
−Removed: In addition, on January 5, 2024, we entered into an amendment to extend the lease term on our Deep River facility through January 4, 2025, at which time we ceased the related operations and vacated the premises.
−Removed: The following table represents future expected undiscounted cashflows, based on the Assignment and Assumption Agreement with AOUT, to be received by the landlord directly from AOUT on an annual basis for the next five years and thereafter, as of April 30, 2025 (in thousands):
+Added: The following table represents future expected undiscounted cash flows, based on the Assignment and Assumption Agreement with AOUT, to be received by the landlord directly from AOUT on an annual basis for the next five years and thereafter, as of April 30, 2026 (in thousands):
Total future receipts
1 unchanged sentence
Present value of receipts
−Removed: Future lease payments for all our operating and finance leases for succeeding fiscal years are as follows (in thousands):
+Added: Future lease payments for all our finance leases for succeeding fiscal years are as follows (in thousands):
Total future lease payments
3 unchanged sentences
Long-term maturities of lease liabilities
−Removed: During fiscal 2025, the cash paid for amounts included in the measurement of liabilities and operating cash flows was $ 1.2 million.
−Removed: SMITH & WESSON BRANDS, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
+Added: During fisca l 2026, the cash paid for amounts included in the measurement of liabilities and operating cash flows was $ 581,000 .
Notes and Loans Payable
4 unchanged sentences
On April 28, 2023, we entered into an amendment to the Amended and Restated Credit Agreement to, among other things, replace LIBOR with SOFR as the interest rate benchmark and amend the definition of “Consolidated Fixed Charge Coverage Ratio” to exclude unfinanced capital expenditures in connection with our plan to move our headquarters and significant elements of our operations to Maryville, Tennessee in 2023, or the Relocation.
−Removed: The revolving line bore interest at either the Base Rate (as defined in the Amended and Restated Credit Agreement) or the Adjusted Term SOFR rate, plus an applicable margin based on our consolidated leverage ratio.
−Removed: On October 3, 2024, we and certain of our subsidiaries entered into an amended and restated credit agreement, or the Second Amended and Restated Credit Agreement, with certain lenders, including TD Bank, N.A., as administrative agent;
−Removed: TD Securities (USA) LLC and Regions Bank, as joint lead arrangers and joint bookrunners;
−Removed: and Regions Bank, as syndication agent.
−Removed: The Second Amended and Restated Credit Agreement amended and restated the Amended and Restated Credit Agreement.
+Added: The revolving line bore interest at either the Base Rate (as defined in the Amended and
+Added: SMITH & WESSON BRANDS, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
+Added: Restated Credit Agreement) or the Adjusted Term SOFR rate, plus an applicable margin based on our consolidated leverage ratio.
+Added: On October 3, 2024, we entered into an amended and restated credit agreement, or the Second Amended and Restated Credit Agreement.
The Second Amended and Restated Credit Agreement is currently unsecured;
6 unchanged sentences
The Revolving Line matures on the earlier of October 3, 2029 or the date that is six months in advance of the earliest maturity of any Permitted Notes (as defined in the Second Amended and Restated Credit Agreement) under the Second Amended and Restated Credit Agreement.
+Added: On August 15, 2025, we entered into a first amendment to the Second Amended and Restated Credit Agreement, or the First Amendment.
+Added: The First Amendment provides for (a) in connection with the calculation of Consolidated Funded Indebtedness (as defined in the Second Amended and Restated Credit Agreement), the exclusion of any Indebtedness (as defined in the Second Amended and Restated Credit Agreement) of the guarantors relating to a particular guaranty;
+Added: (b) in connection with the calculation of Consolidated Fixed Charge Coverage Ratio (as defined in the Second Amended and Restated Credit Agreement), a one-time exclusion of cash taxes paid by the loan parties during fiscal 2026 in connection with the filing of amended tax returns in fiscal 2026 covering particular periods;
+Added: and (c) an amendment to the minimum Consolidated Fixed Charge Coverage Ratio for particular measurement periods.
As of April 30, 2026, we had $ 20.0 million of borrowings outstanding on the Revolving Line, bearing interest at a weighted average rate of 5.72 %, which is equal to the Adjusted Term SOFR rate plus an applicable margin.
2 unchanged sentences
As of April 30, 2026, we were compliant with all required financial covenants.
−Removed: Letters of Credit – At April 30, 2025, we had outstanding letters of credit aggregating $ 2.7 million, which included a $ 1.5 million letter of credit to collateralize our captive insurance company.
+Added: Letters of Credit – At April 30, 2026, we had outstanding letters of credit aggregating $ 1.5 million.
Debt Issuance Costs — During fiscal 2026, we incurred $ 219,000 of debt issuance costs.
−Removed: We did not incur any debt issuance costs during fiscal 2024 or 2023.
−Removed: Debt issuance costs are amortized to expense over the life of the credit
+Added: During fiscal 2025, we incurred $ 941,000 of debt issuance costs.
+Added: We did not incur any debt issuance costs during fiscal 2024.
+Added: Debt issuance costs are amortized to expense over the life of the credit facility.
+Added: In total, we amortized $ 244,000 , $ 157,000 , and $ 89,805 to interest expense for all debt issuance costs in fiscal 2026, 2025, and 2024, respectively.
SMITH & WESSON BRANDS, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: In total, we amortized $ 157,000 , $ 89,805 , and $ 89,805 to interest expense for all debt issuance costs in fiscal 2025, 2024, and 2023, respectively.
The following table sets forth the breakdown of net sales for the fiscal years ended April 30, 2026, 2025, and 2024 (in thousands):
−Removed: For the Years Ended April 30,
+Added: For the Year Ended April 30,
Other Products & Services
8 unchanged sentences
Our export net sales shown below accounted for approximately 4 %, 5 %, and 5 % of total net sales for the fiscal years ended April 30, 2026, 2025, and 2024, respectively (in thousands):
−Removed: For the Years Ended April 30,
+Added: For the Year Ended April 30,
Latin America
−Removed: All others international
+Added: All other international
Total international net sales
17 unchanged sentences
The following table summarizes depreciation and amortization expense, which includes amortization of intangibles and debt financing costs, by line item for the fiscal years ended April 30, 2026, 2025, and 2024 (in thousands):
−Removed: For the Years Ended April 30,
+Added: For the Year Ended April 30,
Cost of sales
15 unchanged sentences
April 30, 2025
+Added: Accrued professional fees
+Added: Accrued employee benefits
Accrued taxes other than income
Accrued customer incentives and promotions
−Removed: Accrued employee benefits
−Removed: Accrued professional fees
Current portion of finance lease obligation
Current portion of operating lease obligation
−Removed: Accrued settlement
Accrued other
3 unchanged sentences
ASC 820-10 provides a framework for measuring fair value under GAAP and requires expanded disclosures regarding fair value measurements.
−Removed: ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the
+Added: ASC 820-10 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.
+Added: ASC 820-10 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value.
SMITH & WESSON BRANDS, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: measurement date.
−Removed: ASC 820-10 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value.
Financial assets and liabilities recorded on the accompanying consolidated balance sheets are categorized based on the inputs to the valuation techniques as follows:
2 unchanged sentences
Our cash and cash equivalents, which are measured at fair value on a recurring basis, totaled $ 28.2 million and $ 25.2 million as of April 30, 2026 and 2025, respectively.
+Added: Our marketable securities, which are measured at fair value on a recurring basis, total $ 5.2 million as of April 30, 2026.
The carrying value of our revolving line of credit approximated the fair value as of April 30, 2026.
9 unchanged sentences
Self-Insurance Reserves
−Removed: As of April 30, 2025 and 2024, we had reserves for workers’ compensation, product liability, and medical/dental costs totaling $ 8.7 million, (of which $ 3.6 million and $ 3.3 million, respectively, was classified as other non-current liabilities).
+Added: As of April 30, 2026 and 2025, we had reserves for workers’ compensation, product liability, and medical/dental costs totaling $ 9.1 million and $ 8.7 million, respectively (of which $ 3.4 million and $ 3.6 million, respectively, was classified as other non-current liabilities).
As of April 30, 2026 and 2025, $ 5.6 million and $ 5.1 million, respectively, were included in current liabilities on the accompanying consolidated balance sheets.
−Removed: In addition, as of April 30, 2025 and 2024, $ 1.1 million and $ 984,000 , respectively, of workers’ compensation receivable was classified as other assets.
+Added: In addition, as of April 30, 2026 and 2025, $ 1.1 million of workers’ compensation receivable was classified as other assets.
While we believe these reserves to be adequate, it is possible that the ultimate liabilities will exceed such estimates.
4 unchanged sentences
Ending balance
−Removed: SMITH & WESSON BRANDS, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
It is our policy to provide an estimate for loss as a result of expected adverse findings or legal settlements on product liability, workers’ compensation, and other matters when such losses are probable and are reasonably estimable.
1 unchanged sentence
While such estimates involve a range of possible costs, we determine, in consultation with counsel, the most likely cost within such range on a case-by-case basis.
−Removed: We also record receivables from insurance carriers relating to these matters when their collection is probable and reasonably estimable.
−Removed: As of April 30, 2025 and 2024, we had accrued reserves for product litigation liabilities of $ 3.1 million (of which $ 566,000 and $ 497,000 , respectively, was non-current), consisting entirely of expected legal defense costs.
+Added: We also record receivables from insurance carriers relating to these
+Added: SMITH & WESSON BRANDS, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
+Added: matters when their collection is probable and reasonably estimable.
+Added: As of April 30, 2026 and 2025, we had accrued reserves for product litigation liabilities of $ 3.6 million and $ 3.1 million (of which $ 577,000 and $ 566,000 , respectively, was non-current), consisting entirely of expected legal defense costs.
As of April 30, 2026 and 2025, we had no receivables from insurance carriers related to these liabilities.
1 unchanged sentence
Treasury Stock
−Removed: On September 19, 2023, our Board of Directors authorized the repurchase of $ 50.0 million of our common stock, subject to certain conditions, in the open market or in privately negotiated transactions through September 19, 2024, or the 2023 Authorization.
−Removed: During fiscal 2024, we purchased 793,551 shares of our common stock for $ 10.2 million under the 2023 Authorization.
+Added: On September 19, 2023, our Board of Directors authorized the repurchase of up to $ 50.0 million of our common stock, subject to certain conditions, in the open market or in privately negotiated transactions through September 19, 2024, or the 2023 Authorization.
During fiscal 2025, we purchased 1,531,763 shares of our common stock for $ 21.4 million under the 2023 Authorization.
2 unchanged sentences
As of April 30, 2026, we had repurchased 312,310 shares of our common stock for $ 4.1 million under the 2024 Authorization.
−Removed: We did not purchase any shares of our common stock during fiscal 2023.
−Removed: During the year ended April 30, 2025, we repurchased a total of 1,844,073 shares of our common stock for $ 25.5 million.
+Added: On September 15, 2025, our Board of Directors authorized the repurchase of up to $ 50.0 million of our common stock, subject to certain conditions, in the open market or in privately negotiated transactions from September 21, 2025 through September 21, 2026, or the 2025 Authorization.
+Added: As of April 30, 2026, we had not repurchased any shares of our common stock under the 2025 Authorization.
+Added: During the year ended April 30, 2026, there were no common stock repurchases.
During the year ended April 30, 2025, we repurchased a total of 1,844,073 shares of our common stock for $ 25.5 million.
+Added: During the year ended April 30, 2026, o ur Board of Directors authorized, and we executed, the retirement of 31,677,994 shares of our common stock held in treasury.
+Added: Upon retirement, these shares were restored to the status of authorized and unissued.
+Added: As a result, the accumulated cost associated with this stock was allocated to common stock, additional paid-in capital, and retained earnings.
Incentive Stock and Employee Stock Purchase Plans
We have two stock incentive plans:
−Removed: the 2013 Incentive Stock Plan and the 2022 Incentive Stock Plan, or, together, the Incentive Stock Plans, under which employees and non-employees may be granted stock options, restricted stock awards, restricted stock units, or RSUs, stock appreciation rights, bonus stock, and awards in lieu of obligations, performance awards, and dividend equivalents.
+Added: the 2013 Incentive Stock Plan and the 2022 Incentive Stock Plan, or, together, the Incentive Stock Plans, under which employees and non-employees may have been granted (in the case of the 2013 Incentive Stock Plan), or may be granted (in the case of the 2022 Incentive Stock Plan) stock options, restricted stock awards, restricted stock units, or RSUs, stock appreciation rights, bonus stock, and awards in lieu of obligations, performance awards, and dividend equivalents.
No grants have been made under the 2013 Incentive Stock Plan since our stockholders approved the 2022 Incentive Stock Plan at our annual meeting of stockholders held in September 2022.
6 unchanged sentences
All options issued pursuant to the stock plans are generally nontransferable and subject to forfeiture.
−Removed: Unless terminated earlier by our Board of Directors, the 2022 Incentive Stock Plan will terminate at the earliest of (1) the tenth anniversary of the effective date of the 2022 Incentive Stock Plan, or (2) such time as no shares of common stock remain available for issuance under the plan and we have no further rights or obligations with respect to outstanding awards under the plan.
−Removed: The date of grant of an award is deemed to be the effective date upon which our Board of Directors or a committee authorizes the granting of such award.
+Added: Unless terminated earlier by our Board of Directors, the 2022 Incentive Stock Plan will terminate at the earliest of (1) the tenth anniversary of the effective date of the 2022 Incentive Stock Plan, or (2) such time as no shares of common stock remain available for issuance under the plan and we have no further rights or obligations with respect
SMITH & WESSON BRANDS, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
+Added: to outstanding awards under the plan.
+Added: The date of grant of an award is deemed to be the effective date upon which our Board of Directors or a committee authorizes the granting of such award.
Except in specific circumstances, grants of stock options vest over a period of four years and are exercisable for a period of 10 years after vesting.
10 unchanged sentences
We use our unissued share pool for all shares issued for options, restricted stock awards, RSUs, performance share units, performance-based restricted stock units, or PSUs, and shares issued under our Employee Stock Purchase Plan, or ESPP.
−Removed: We grant service-based RSUs to employees, consultants, and directors.
+Added: We grant RSUs to employees and non-employee members of our Board of Directors.
The awards are made at no cost to the recipient.
−Removed: An RSU represents the right to acquire one share of our common stock and does not carry voting or dividend rights.
−Removed: Except in specific circumstances, RSU grants to employees and consultants generally vest over a period of three or four years with one-third or one-fourth of the units vesting, respectively, on each anniversary date of the grant date.
−Removed: RSU grants to directors generally vest over a period of one year with one-twelfth of the units vesting each month.
−Removed: The aggregate fair value of our RSU grants is amortized to compensation expense over the applicable vesting period.
−Removed: We grant PSUs to our executive officers.
+Added: An RSU represents the right to receive one share of our common stock and does not carry voting rights.
+Added: Except in limited circumstances, RSUs also do not carry dividend rights.
+Added: Except in specific circumstances, RSU grants to employees prior to fiscal 2026 vest over a period of four y ears and RSU grants to employees during fiscal 2026 vest over a period of three years with one-fourth and one-third , respectively, of the units vesting on each grant anniversary date.
+Added: We amortize the aggregate fair value of our RSU grants to compensation expense over the vesting period.
+Added: We grant PSUs to our executive officers and, from time to time, certain management employees who are not executive officers.
At the time of grant, we calculate the fair value of our PSUs using the Monte Carlo simulation.
17 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: The PSUs vest, and the fair value of such PSUs are recognized, over the corresponding three-year performance period.
−Removed: Our PSUs have a maximum aggregate award equal to 200 % of the target amount granted.
−Removed: Generally, the number of PSUs that may be earned depends upon the total stockholder return, or TSR, of our common stock compared with the TSR of the Russell 2000 Index, or RUT, over the three-year performance period.
+Added: Our PSUs vest, and the fair value of such PSUs are recognized, over the corresponding three-year performance period.
+Added: Depending on the grant date, PSUs have a maximum aggregate award equal to between 200 % and 220 %.
+Added: In addition, there is a cap on the number of shares that can be earned under our PSUs, which is equal to six times the grant-date value of each award.
+Added: PSUs granted in fiscal 2024 have a maximum aggregate award equal to 200 % of the target amount granted.
+Added: Generally, the number of PSUs that may be earned under the fiscal 2024 grants depends upon the total stockholder return, or TSR, of our common stock compared with the TSR of the Russell 2000 Index, or RUT, over the three-year performance period.
The relative performance of our common stock must equal or exceed the relative performance of the RUT for any of the PSUs subject to the awards to be earned and vest.
1 unchanged sentence
The relative performance of our common stock must outperform the RUT by at least 10 % in order for 200 % of the PSUs subject to the awards (the maximum number of PSUs) being earned and vesting.
−Removed: In addition, there is a cap on the number of shares that can be earned under our PSUs, which is equal to six times the grant-date value of each award.
+Added: PSUs granted after fiscal 2024, have a maximum aggregate award equal to 220 % of the target amount granted.
+Added: The number of PSUs that may be earned under these grants depends upon the primary performance metric of our average annual Adjusted EBITDAS Growth percentage, subject to a modifier based on the TSR of our common stock compared with the TSR of the RUT over the three-year performance period.
+Added: The number of PSUs that may be earned is subject to a threshold of 40 % of the average annual Adjusted EBITDAS Growth percentage target and a maximum of 220 % of the average annual Adjusted EBITDAS Growth percentage target.
In certain circumstances, the vested awards will be delivered on the first anniversary of the applicable vesting date.
2 unchanged sentences
We also granted 603,336 service-based RSUs during fiscal 2026, including 273,374 RSUs to certain of our executive officers, 76,266 RSUs to our directors, and 253,696 RSUs to non-executive officer employees.
+Added: During fiscal 2026, we canceled 108,736 market-condition PSUs as a result of the failure to satisfy the performance metric.
+Added: We canceled 64,463 service-based RSUs as a result of the service period condition not being met.
+Added: We delivered 295,841 shares of common stock to current employees and directors under vested RSUs with a total market value of $ 3.8 million.
+Added: During fiscal 2025, we granted 142,878 PSUs to certain of our executive officers.
+Added: We also granted 486,895 service-based RSUs during fiscal 2025, including 142,882 RSUs to certain of our executive officers, 54,666 RSUs to our directors, and 289,347 RSUs to non-executive officer employees.
During fiscal 2025, we canceled 63,469 market-condition PSUs as a result of the failure to satisfy the performance metric and 38,521 as a result of the service period condition not being met.
7 unchanged sentences
In addition, in connection with a 2019 grant, which vested in fiscal 2023, we delivered 55,726 market-condition PSUs to certain of our executive officers and a former executive officer with a total market value of $ 664,000 .
−Removed: During fiscal 2023, we granted 108,736 PSUs to certain of our executive officers.
−Removed: We also granted 287,854 service-based RSUs during fiscal 2023, including 72,494 RSUs to certain of our executive officers, 56,497 RSUs to our directors, and 158,863 RSUs to non-executive officer employees.
−Removed: During fiscal 2023, we canceled 35,179 service-based RSUs as a result of the service period condition not being met.
−Removed: We delivered 202,859 shares of common stock to current employees under vested RSUs with a total market value of $ 2.7 million.
−Removed: In addition, in connection with a 2018 grant, which vested in fiscal 2022, we delivered 83,586 market-condition PSUs to certain of our executive officers and a former executive officer with a total market value of $ 1.2 million.
−Removed: In addition, in connection with a 2019 grant, 57,600 PSUs vested to certain of our executive officers and a former executive officer, which resulted from achieving the maximum performance of 200.0 % of target for the original 28,800 PSUs granted.
−Removed: Relating to this same grant, 1,874 shares were released to cover tax obligations on the vesting.
−Removed: The grant date fair value of RSUs and PSUs that vested in fiscal 2025, 2024, and 2023 was $ 3.8 million, $ 3.3 million, and $ 4.0 million, respectively.
SMITH & WESSON BRANDS, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
+Added: The grant date fair value of RSUs and PSUs that vested in fiscal 2026, 2025, and 2024 was $ 5.5 million, $ 3.8 million, and $ 3.3 million, respectively.
A summary of activity for unvested RSUs and PSUs for fiscal years 2026, 2025, and 2024 is as follows:
For the Year Ended April 30,
−Removed: RSUs and PSUs outstanding,
−Removed: beginning of period
−Removed: RSUs and PSUs outstanding,
−Removed: end of period
−Removed: (a) Includes 28,800 PSUs that vested during the fiscal year in connection with achieving maximum performance targets for the 2019 grants.
−Removed: (b) Includes 55,726 PSUs that vested during fiscal 2023.
+Added: RSUs and PSUs outstanding, beginning of period
+Added: RSUs and PSUs outstanding, end of period
+Added: (a) Includes 55,726 PSUs that vested during fiscal 2023.
As of April 30, 2026, there was $ 4.6 million of unrecognized compensation cost related to unvested RSUs and PSUs.
35 unchanged sentences
Our contributions to the plan are discretionary.
−Removed: For fiscal 2025, we plan to contribute approximately $ 3.8 million, which has been recorded in general and administrative costs.
+Added: For fiscal 2026, we intend to contribute approximately $ 5.2 million, which has been recorded in general and administrative costs and will be funded during fiscal 2027.
We contributed $ 4.6 million and $ 9.1 million for the fiscal years ended April 30, 2025 and 2024, respectively.
Contributions are funded after the fiscal year-end.
−Removed: Income tax expense from continuing operations consisted of the following (in thousands):
+Added: Income tax expense consisted of the following (in thousands):
For the Year Ended April 30,
5 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: The following table presents a reconciliation of income tax expense from continuing operations at the statutory rate of 21 % to the expense in the consolidated financial statements (in thousands):
+Added: The effective income tax rate for the year ended April 30, 2026 differs from the statutory federal income tax rate as follows:
For the Year Ended April 30, 2026
+Added: Federal Statutory Tax Rate
+Added: State income taxes, net of federal tax effects (a)
+Added: Effect of cross-border tax laws
+Added: Foreign derived intangible income (FDII) deductions
+Added: Research & development and fuel
+Added: Nontaxable or nondeductible items
+Added: Other adjustments
+Added: Deferral adjustment for stock compensation
+Added: Total income tax expense
+Added: (a) State taxes in California, Louisiana, Minnesota, North Carolina, and Texas make up the majority (greater than 50%) of the tax effect in this category.
+Added: Prior to the adoption of ASU 2023-09, the following table presents a reconciliation of income tax expense from continuing operations at the statutory rate of 21 % to the expense in the consolidated financial statements (in thousands):
+Added: For the Year Ended April 30,
Federal income taxes expected at the statutory rate
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Net Deferred Tax Asset
−Removed: We h ad no federal net operating losses as of April 30, 2025.
+Added: The supplemental schedule of cash paid for income taxes, net of refunds is as follows:
+Added: For the Year Ended
+Added: April 30, 2026
+Added: Cash paid during the period for income taxes:
+Added: State and local
+Added: Total cash paid during the period for income taxes
+Added: Cash paid for income taxes, prior to the adoption of ASU 2023-09, was $ 7.3 million and $ 12.7 million for the years ended April 30, 2025 and 2024, respectively.
+Added: We had no federal net operating losses as of April 30, 2026.
We had $ 109.2 million and $ 77.3 million in state net operating loss carryforwards as of April 30, 2026 and 2025, respectively.
3 unchanged sentences
As of April 30, 2026 and 2025, valuation allowances related to our deferred tax assets for state net operating loss carryforwards were $ 5.6 million and $ 4.0 million, respectively, and $ 1.8 million and $ 2.2 million were provided on our deferred tax assets for state tax credits, respectively, that we do not anticipate using prior to expiration.
+Added: SMITH & WESSON BRANDS, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The income tax provisions represent effective tax rates of 26.3 % and 30.2 % for fiscal 2026 and 2025, respectively.
4 unchanged sentences
As of April 30, 2026 and 2025, there were no interest and penalties accrued.
−Removed: SMITH & WESSON BRANDS, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Commitments and Contingencies
In January 2018, Gemini Technologies, Incorporated, or Gemini, commenced an action against us in the U.S.
−Removed: District Court for the District of Idaho, or the District Court.
+Added: District Court for the District of Idaho.
The complaint alleges, among other things, that we breached the earn-out and other provisions of the asset purchase agreement and ancillary agreements between the parties in connection with our acquisition of the Gemtech business from Gemini.
8 unchanged sentences
In January 2024, the district court allowed plaintiffs’ amended allegations of fraud, and denied without prejudice their motion to add punitive damages.
−Removed: In February 2024, the District Court set a trial date of January 6, 2025, which was later postponed.
−Removed: In April 2025, the District Court issued an amended scheduling order.
−Removed: The expert discovery cutoff and dispositive motion deadline are August 15, 2025.
−Removed: The court also scheduled a status conference in June 2025.
−Removed: We believe the claims asserted in the complaint have no merit, and we intend to aggressively defend this action.
−Removed: We are a defendant in one product liability case and are aware of six other product liability claims, primarily alleging defective product design, defective manufacturing, or failure to provide adequate warnings.
+Added: In August 2025, we filed a motion for summary judgment, and plaintiff filed a motion for leave to file a third amended complaint, seeking to properly name the defendants and to add punitive damages as relief.
+Added: On January 23, 2026, the district court (i) granted our motion for summary judgment, in part, dismissing with prejudice plaintiffs’ fraud in the inducement and breach of the implied covenant of fair dealing claims;
+Added: (ii) denied our motion for summary judgment, in part, permitting plaintiffs’ breach of contract claim to proceed;
+Added: (iii) denied plaintiffs’ motion to amend the complaint to add punitive damages as relief;
+Added: and (iv) granted plaintiffs’ motion to properly name a successor-in-interest party.
+Added: On May 12, 2026, the trial court issued an order setting the trial to begin on January 11, 2027.
+Added: We believe the remaining breach of contract claim has no merit, and we intend to aggressively defend this action.
+Added: We are a defendant in three product liability cases and are aware of six other product liability claims, primarily alleging defective product design, defective manufacturing, or failure to provide adequate warnings.
In addition, we are a co-defendant in a case filed in August 1999 by the city of Gary, Indiana, or the City, against numerous firearm manufacturers, distributors, and dealers seeking to recover monetary damages, as well as injunctive relief, allegedly arising out of the misuse of firearms by third parties.
2 unchanged sentences
In May 2019, the Indiana Court of Appeals issued a decision, which affirmed in part and reversed in part, and remanded for further proceedings, the trial court’s dismissal of the City’s complaint.
−Removed: In July 2019, defendants filed a Petition to Transfer jurisdiction to the Indiana Supreme Court.
−Removed: In November 2019, the Indiana Supreme Court denied defendants' petition to transfer, and the case was returned to the trial court.
−Removed: In March 2024, a bill was signed into law that purports to prohibit political subdivisions in Indiana from bringing certain legal actions against certain firearm industry members and to apply to actions or suits filed before, after, or on August 27, 1999.
+Added: In March 2024, a bill was signed into law that purports to prohibit political subdivisions in Indiana from bringing certain legal actions against certain firearm industry members and to apply to actions or lawsuits filed before, after, or on August 27, 1999.
Defendants subsequently filed a joint motion for judgment on the pleadings based on the new law.
In August 2024, the trial court denied defendants’ joint motion for judgment on the pleadings and, in October 2024, stayed its proceedings pending an interlocutory appeal with the Indiana Court of Appeals.
−Removed: In November 2024, the Indiana Court of Appeals granted defendants’ motion to accept jurisdiction of the interlocutory appeal.
−Removed: In December 2024, the state of Indiana filed a notice of intervention in the appeal, which was accepted in January 2025.
−Removed: In February 2025, defendants and the state of Indiana filed opening briefs with the Indiana Court of Appeals.
−Removed: In March 2025, the court granted the City’s request to file its opposition brief in May 2025.
−Removed: We believe the claims asserted in the complaint have no merit, and we intend to aggressively defend this action.
+Added: In December 2025, the Indiana Court of Appeals held that the retroactive application of the legislation was constitutional, reversing the trial court’s order and remanding the action to the trial court for dismissal of the action.
+Added: On January 28, 2026, the City filed a petition for rehearing with the Indiana Court of Appeals, which was denied on February 2, 2026.
+Added: On March 4, 2026, the City filed a petition to transfer with the Indiana Supreme Court, requesting the Court to grant transfer of the case to the Indiana Supreme Court, to vacate the Indiana Court of Appeals’ decision, and to affirm the trial court's order.
+Added: In March 2026, the defendants jointly filed a response to the City's petition to transfer.
+Added: On May 21, 2026, the Illinois Supreme Court denied the City’s petition to transfer.
+Added: On May 26, 2026, the trial court granted the defendants’ motion to dismiss with prejudice.
+Added: SMITH & WESSON BRANDS, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
We are a defendant in a putative class proceeding before the Ontario Superior Court of Justice in Toronto, Canada that was filed in December 2019 .
5 unchanged sentences
The plaintiffs allege negligent design and public nuisance.
−Removed: The case has not been certified as a class action.
In July 2020, we filed a Notice of Motion for an order striking the claim and dismissing the action in its entirety.
2 unchanged sentences
In March 2021, we filed a motion for leave to appeal the court’s refusal to strike the negligent design claim with the Divisional Court, Ontario Superior Court of Justice.
−Removed: In July 2021, plaintiffs filed a motion to stay our motion for leave to appeal with the Divisional Court, on
−Removed: SMITH & WESSON BRANDS, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: grounds that appeal is premature.
+Added: In July 2021, plaintiffs filed a motion to stay our motion for leave to appeal with the Divisional Court, on grounds that the appeal is premature.
In November 2021, the Divisional Court granted plaintiffs’ motion, staying our motion for leave to appeal until 30 days after the decision on the balance of plaintiffs’ certification motion.
−Removed: A hearing on plaintiffs’ certification motion was held in January 2024.
In March 2024, the court denied the plaintiffs’ motion for class certification.
−Removed: Three appeals have been filed:
+Added: Three appeals were filed:
(1) our appeal from the dismissal of our motion to strike the negligent design claim;
1 unchanged sentence
and (3) the plaintiffs’ appeal from the order dismissing their certification motion.
−Removed: In August 2024, the parties filed their motions regarding the appeals.
−Removed: In October 2024, the parties filed their response briefs and, in December 2024, the Court of Appeals for Ontario heard the appeals together.
+Added: In June 2025, the Court of Appeals for Ontario issued a decision:
+Added: (1) dismissing our appeal from the dismissal of our motion to strike the negligent design claim;
+Added: (2) dismissing plaintiffs’ appeal from the order striking out their public nuisance and strict liability claims;
+Added: and (3) granting plaintiffs’ appeal from the order dismissing their certification order and certifying their negligence claim as a class proceeding.
+Added: In September 2025, we filed an application with the Supreme Court of Canada, requesting that the court grant leave to appeal the duty of care issue related to our negligent design claim.
+Added: In October 2025, plaintiffs filed both an opposition to our application seeking leave to appeal the duty of care issue related to our negligent design claim and a cross-appeal of the dismissal of their strict liability and public nuisance claims with the Supreme Court of Canada.
+Added: Later in October 2025, the Court of Appeal issued and entered the formal order in the case, which was submitted to the Supreme Court of Canada.
In May 2020, we were named in an action related to the Chabad of Poway synagogue shooting that took place in April 2019.
4 unchanged sentences
In July 2021, the court granted our motion in part and reversed it in part, ruling that (1) the Protection of Lawful Commerce in Arms Act barred plaintiffs’ product liability action;
−Removed: (2) plaintiffs did not have standing to maintain an action under the Unfair Competition Law for personal injury related damages, but gave plaintiffs leave to amend to plead an economic injury;
+Added: (2) plaintiffs did not have standing to maintain an action under the Unfair Competition Law for personal injury related damages, but the court gave plaintiffs leave to amend to plead an economic injury;
and (3) the Protection of Lawful Commerce in Arms Act did not bar plaintiffs’ ordinary negligence and public nuisance actions because plaintiffs had alleged that we violated 18 U.S.C.
−Removed: Section 922(b)(4), which generally prohibits the sale of fully automatic “machineguns.” In August 2021, we filed a Petition for Writ of Mandate in the Court of Appeal of the State of California, Fourth Appellate District, Division One.
−Removed: In September 2021, the Court of Appeal denied our appeal.
−Removed: In February 2022, the court consolidated the case with three related cases, in which we are not a party.
+Added: Section 922(b)(4), which generally prohibits the sale of fully automatic “machineguns.” In February 2022, the court consolidated the case with three related cases, in which we are not a party.
In March 2022, the court granted our motion, dismissing plaintiffs’ Unfair Competition Law claim, without further leave to amend.
1 unchanged sentence
In May 2023, the court denied our motion for summary judgment without prejudice and allowed plaintiffs time for additional discovery.
−Removed: A hearing on our renewed motion for summary judgment was held in October 2024.
In December 2024, the court granted our renewed motion for summary judgment, and we later filed a proposed notice of final judgment with the court, requesting the court to enter a final judgment in our favor and to dismiss all claims against us.
In February 2025, the court entered the final judgment.
−Removed: On April 7, 2025, we filed a memorandum of costs, requesting the court award us taxable costs.
−Removed: On April 8, 2025, plaintiffs filed a notice of appeal with the California Court of Appeal.
−Removed: On April 22, 2025, plaintiffs filed a motion to tax costs with the court.
−Removed: On April 18, 2025, plaintiffs filed a notice designating record on appeal, requesting the court to prepare the record for the California Court of Appeal.
−Removed: On April 29, 2025, we filed a notice designating record on appeal with the court.
−Removed: We are a defendant in an action filed in the U.S.
−Removed: District Court for the District of Massachusetts.
−Removed: In August 2021, the Mexican Government filed an action against several U.S.-based firearms manufacturers and a firearms distributor, claiming defendants design, market, distribute, and sell firearms in ways they know routinely arm the drug cartels in Mexico.
−Removed: Plaintiff alleges, among other claims, negligence, public nuisance, design defect, unjust enrichment, and restitution against all defendants and violation of the Massachusetts Consumer Protection Act against us alone, and is seeking monetary damages and injunctive relief.
−Removed: In November 2021, defendants filed motions to dismiss plaintiff’s complaint.
−Removed: In September 2022, the district court granted defendants’ motions to dismiss.
−Removed: In October 2022, plaintiff filed a notice of appeal with the U.S.
−Removed: Court of Appeals for the First Circuit.
−Removed: In January 2024, the First Circuit reversed the trial court’s dismissal of the case.
−Removed: In April 2024, defendants filed a Petition for a Writ of Certiorari with the U.S.
−Removed: Supreme Court.
−Removed: In August 2024, the district court dismissed the case against six of the eight defendants in the lawsuit (excluding us) based on personal jurisdiction grounds.
−Removed: In October 2024, the U.S.
−Removed: Supreme Court granted defendants’ Petition for Writ of Certiorari, and the district court issued an order staying the case in its entirety pending the U.S.
−Removed: Supreme Court’s review of the case.
−Removed: On June 5, 2025, the Supreme Court ruled in our favor, holding that because Mexico's complaint does not plausibly allege that the defendant firearm manufacturers aided and abetted firearm dealers' unlawful sales of firearms to Mexican traffickers, the PLCAA bars the suit.
−Removed: SMITH & WESSON BRANDS, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
+Added: In April 2025, plaintiffs filed a notice of appeal with the California Court of Appeal and, in March 2026, they filed their opening appellate brief.
In September 2022, we were named as defendants in 12 nearly identical, separate actions related to a shooting in Highland Park, Illinois on July 4, 2022.
4 unchanged sentences
District Court for the Northern District of Illinois.
−Removed: In November 2022, we filed a motion to consolidate the cases for preliminary motion purposes.
+Added: In November 2022, we filed a motion to consolidate the cases for preliminary motion
+Added: SMITH & WESSON BRANDS, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
In December 2022, plaintiffs filed motions to remand the cases back to the state court.
4 unchanged sentences
In April 2024, the Seventh Circuit affirmed the remand decision.
−Removed: In May 2024, plaintiffs filed a motion for attorneys’ fees incurred as a result of removal, and we filed an opposition to plaintiffs’ motion.
+Added: In May 2024, plaintiffs filed a motion for attorneys’ fees incurred as a result of removal.
In March 2025, the district court granted plaintiffs’ motion, ordering us to pay certain of plaintiffs’ attorneys’ fees.
−Removed: In June and July 2024, the district court remanded the 12 separate actions to state court, with some plaintiffs amending their complaints to remove references to violations of federal law and asserting additional claims against us, including claims alleging violation of the Illinois Uniform Deceptive Trade Practices Act, negligent and intentional infliction of emotional distress, and negligent entrustment.
+Added: In June and July 2024, the district court remanded the 12 separate actions to state court, with some plaintiffs amending their complaints to remove references to violations of federal law and asserting additional claims against us, including claims alleging violation of the Illinois Uniform Deceptive Trade Practices Act, the Illinois Consumer Fraud and Deceptive Business Practices Act, negligent and intentional infliction of emotional distress, and negligent entrustment.
We were also named in 13 additional separate cases against us in the same state court during the same time period, largely raising similar allegations against us as in the initial and amended complaints.
1 unchanged sentence
In September 2024, we filed our motions to dismiss plaintiffs’ 25 separate complaints.
−Removed: On January 23 and 28, 2025, the trial court heard oral argument on our motions to dismiss plaintiffs’ complaints.
−Removed: On April 1, 2025, the court granted our motion to dismiss without prejudice with respect to plaintiffs’ counts for violation of the Illinois Consumer Fraud and Deceptive Business Practices Act – Deceptive and Unlawful Acts for lack of standing (Consumer Fraud Act—Deception Claims only) and negligent entrustment and denied all remaining counts.
−Removed: Later in April, plaintiffs served their first set of written discovery and we filed a motion to certify issues for interlocutory appeal with the trial court.
−Removed: On May 1, 2025, the trial court ordered an expedited briefing schedule for the motion and stayed discovery.
−Removed: On June 5, 2025, the court certified several issues for interlocutory appeal, lifted the discovery stay, and set an initial trial date for March 8, 2027.
+Added: In April 2025, the court granted our motion to dismiss without prejudice with respect to plaintiffs’ counts for violation of the Illinois Consumer Fraud and Deceptive Business Practices Act for lack of standing (with respect to the deceptive claims only) and negligent entrustment and denied all remaining counts.
+Added: Later in April 2025, we filed a motion to certify issues for interlocutory appeal with the trial court.
+Added: In May 2025, the court ordered an expedited briefing schedule for the motion and stayed discovery.
+Added: In June 2025, the court certified several issues for interlocutory appeal, lifted the discovery stay, set an initial trial date for March 8, 2027, and scheduled a status conference.
We also filed our answers to plaintiffs' complaints.
+Added: In July 2025, we filed an application for interlocutory appeal with the Court of Appeal.
+Added: In September 2025, the Court of Appeal denied our application.
+Added: We filed a petition for leave for an interlocutory appeal to the Illinois Supreme Court in October 2025.
+Added: On January 28, 2026, the Illinois Supreme Court issued an order directing the Court of Appeal to accept our application for interlocutory appeal.
+Added: On April 9, 2026, we filed our opening brief with the Court of Appeal.
+Added: Discovery is ongoing.
In December 2022, the City of Buffalo, New York filed a complaint in the Supreme Court of the State of New York, County of Erie, against numerous manufacturers, distributors, and retailers of firearms.
7 unchanged sentences
James appeal.
−Removed: We believe that the various allegations as described above are unfounded, and, in addition, that any incident and any results from them or any injuries were due to negligence or misuse of the firearm by the claimant or a third party.
+Added: In July 2025, the U.S.
+Added: Court of Appeals for the Second Circuit ruled against NSSF in the NSSF v.
+Added: James appeal.
+Added: Defendants filed a joint motion to dismiss in September 2025.
+Added: On January 22, 2026, the Cities of Buffalo and Rochester filed amended complaints against us and three other manufacturers.
+Added: The complaints state claims for violation of New York General Business Law 898-b(2) and common law public nuisance.
+Added: Plaintiffs seek injunctive relief, compensatory and punitive/exemplary damages, costs, and interest.
+Added: On March 23, 2026, defendants filed a motion to dismiss the amended complaint, and, on May 22, 2026, plaintiffs filed their opposition to defendants’ motion to dismiss.
+Added: We believe that the various allegations described above are unfounded, and, in addition, that any incident and any results from them or any injuries were due to negligence or misuse of the firearm by the claimant or a third party.
In addition, from time to time, we are involved in lawsuits, claims, investigations, and proceedings, including commercial, environmental, premises, and employment matters, which arise in the ordinary course of business.
7 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: We are also involved in a putative stockholder derivative lawsuit filed on February 4, 2025 in the U.S.
+Added: We are involved in a putative stockholder derivative lawsuit filed in February 2025 in the U.S.
District Court for the District of Nevada.
The action was brought by plaintiffs seeking to act on our behalf against our directors and certain of our executive officers.
−Removed: The complaint alleges breach of fiduciary duty (for allegedly allowing us to become exposed to significant liability for intentionally violating federal, state, and local laws through our manufacturing, marketing, and sales of “AR-15 style rifles” and similar semiautomatic firearms) and violations of Section 14(a) of the Securities Exchange Act of 1934.
+Added: The complaint alleges a breach of fiduciary duty (for allegedly allowing us to become exposed to significant liability for intentionally violating federal, state, and local laws through our manufacturing, marketing, and sales of “AR-15 style rifles” and similar semiautomatic firearms) and violations of Section 14(a) of the Exchange Act.
The derivative plaintiffs seek, among other things, damages, as well as reforms and improvements to our compliance procedures and governance policies.
In May 2025, we filed a motion to dismiss plaintiffs’ complaint.
−Removed: We were named in a putative class action lawsuit filed on April 4, 2025 in the U.S.
+Added: On March 23, 2026, the district court (i) granted our motion to dismiss without prejudice, (ii) ordered that, if plaintiffs sought to amend their complaint, they must do so within 21 days of the court’s order, and (iii) ordered that plaintiffs must post a $ 500,000 bond security within 14 days of the court’s order and failure to post the bond would result in the action being dismissed without prejudice.
+Added: Plaintiffs did not amend their complaint or post the bond pursuant to the court’s order.
+Added: On April 17, 2026, plaintiffs filed a motion for reconsideration, requesting the court to reconsider the dismissal of the case and the imposition of the bond.
+Added: On May 15, 2026, we filed our opposition to plaintiffs’ motion for reconsideration, and, on May 27, 2026, plaintiffs filed their reply.
+Added: We were named in a putative class action lawsuit filed in April 2025 in the U.S.
District for the Northern District of California.
−Removed: The complaint alleges violation of the California Invasion of Privacy Act, the California Privacy Act, invasion of privacy, intrusion upon seclusion, fraud/deceit/misrepresentation, breach of contract, breach of implied contract and fair dealing, trespass to chattels, and unjust enrichment.
−Removed: Plaintiffs allege that after they clicked on the “reject all” cookies button, our website enabled third parties to place cookies and similar tracking technologies on their browsers and devices and/or to transmit their user data to third parties for their financial gain and other purposes.
+Added: The complaint alleges violation of the California Invasion of Privacy Act, or CIPA, the California Privacy Act, invasion of privacy, intrusion upon seclusion, fraud/deceit/misrepresentation, breach of contract, breach of implied contract and fair dealing, trespass to chattels, and unjust enrichment.
+Added: Plaintiffs allege that after they clicked on the “reject all” cookies button on our website, our website enabled third parties to place cookies and similar tracking technologies on their browsers and devices and/or to transmit their user data to third parties for their financial gain and other purposes.
Plaintiffs seek compensatory damages (including statutory damages), punitive damages, nominal damages, restitution, disgorgement of revenues and profits, injunctive relief, and attorneys’ fees and costs.
+Added: In May 2025, we filed a motion to dismiss the complaint.
+Added: In November 2025, the parties filed a stipulation and proposed order selecting an alternative dispute resolution process, notifying the court of their selection of a private mediator and their proposed June 30, 2026 deadline to mediate the case.
+Added: On February 17, 2026, the court:
+Added: (a) granted, in part, our motion to dismiss, dismissing with leave to amend plaintiffs’ CIPA, common law fraud (for one named-plaintiff), breach of contract, breach of implied covenant of good faith and fair dealing, and trespass to chattels claims;
+Added: and (b) denied, in part, our motion to dismiss, permitting plaintiffs’ intrusion upon seclusion, invasion of privacy, common law fraud (for certain named-plaintiffs), and unjust enrichment claims to proceed.
+Added: On March 17, 2026, plaintiffs filed a first amended complaint, removing the breach of contract, breach of implied covenant of good faith and fair dealing, and trespass to chattels claims and attempting to cure the pleading deficiencies the court identified with the CIPA claims.
+Added: In late March 2026, we filed a motion to dismiss the amended complaint, which has been fully briefed.
+Added: The parties were unable to resolve the matter at the court-ordered mediation on May 15, 2026.
+Added: The parties are engaged in discovery.
We are vigorously defending ourselves in the lawsuits to which we are subject.
6 unchanged sentences
For the fiscal years ended April 30, 2026, 2025, and 2024, we paid $ 81,000 , $ 155,000 , and $ 320,000 , respectively, in defense and administrative costs relative to product liability and municipal litigation.
−Removed: In addition, during fiscal 2025, 2024, and 2023, we paid an aggregate of $ 30,000 , $ 1.6 million, and $ 1.5 million, respectively, in settlements related to product liability cases.
+Added: In addition, during fiscal 2026, 2025, and 2024, we paid an aggregate of $ 20,000 , $ 30,000 , and $ 1.6 million, respectively, in settlements related to product liability cases.
+Added: As of April 30, 2026, we had no accruals for settlements, that were subsequently paid in the following fiscal year.
As of April 30, 2025, we had $ 20,000 accrued for settlements that were subsequently paid in the following fiscal year.
−Removed: As of April 30, 2024, we had no amounts accrued for settlements.
+Added: SMITH & WESSON BRANDS, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
We have recorded our liability for defense costs before consideration for reimbursement from insurance carriers.
7 unchanged sentences
(c) incur, or cause to be incurred, aggregate capital expenditures in connection with the construction and equipping of the new facility in an aggregate amount of not less than $ 120.0 million on or before December 31, 2025;
−Removed: (D) cause the construction of the
−Removed: SMITH & WESSON BRANDS, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: new facility to be substantially completed and for a certificate of occupancy to be issued therefore on or before December 31, 2023;
+Added: (d) cause the construction of the new facility to be substantially completed and for a certificate of occupancy to be issued therefore on or before December 31, 2023;
(e) provide the IDB with a written report certified by one of our authorized officers, not later than January 31 of each year during the period between January 31, 2024 and January 31, 2031;
and (f) make certain payments to the IDB in the event that our actual capital expenditures, number of employees, or average hourly wage of such employees are less than our projections.
−Removed: On February 2, 2023, we entered into a design-build agreement with The Christman Company, or Christman, related to the construction of our Maryville facility, or the Construction Contract.
−Removed: The Construction Contract has an effective date of September 13, 2021 and incorporates the arrangements under which we and Christman have been proceeding.
−Removed: Pursuant to the Construction Contract, Christman is obligated to deliver certain services, including, among others, design phase services and construction phase services, and we are obligated to pay Christman for services performed.
−Removed: The parties to the Construction Contract agreed that Christman will perform and complete the Work (as defined therein) on a cost-plus basis for a guaranteed minimum price of $ 114.0 million, including contingencies.
−Removed: When adding the cost of machinery and equipment, we spent $ 158.0 million, net of $ 10 million in grants received, as of April 30, 2025 on capital expenditures related to the Relocation.
−Removed: The Construction Contract includes terms that are customary for contracts of this type, including with respect to indemnification and insurance.
−Removed: The Construction Contract lists certain contract milestones and guaranteed completion dates, and we will be entitled to liquidated damages under certain circumstances.
−Removed: Each party to the Construction Contract is entitled to terminate the Construction Contract under certain circumstances.
+Added: In connection with the Relocation, we entered into an accountability agreement, or the Accountability Agreement, with the Tennessee Department of Economic and Community Development and the Blount Partnership economic development organization.
+Added: Pursuant to the Accountability Agreement, the Blount Partnership received a grant in the amount of $ 9.0 million, which was paid to us pursuant to a grant contract.
+Added: Among other performance requirements in the Accountability Agreement, we committed that we would create and maintain 750 new jobs at the facility, measured as the average number of full-time jobs at the facility on three test dates:
+Added: January 1, 2027, January 1, 2028, and January 1, 2029, or the Compliance Period.
+Added: In the event that the three-year average number of full-time jobs during the Compliance Period equals or exceeds 90% of the 750-job commitment, no recapture payment will be required.
+Added: If the three-year average number of full-time jobs during the Compliance Period is less than 90% of the committed number, but greater than 50% of such number, we will be required to make a recapture payment equal to the percentage of full-time jobs at the facility below the 750 jobs committed, times the grant amount.
+Added: If the three-year average number of full-time jobs during the Compliance Period is less than 50% of the committed number, we will be required to make a recapture payment equal to the full amount of the grant.
+Added: The payment, if any, would be made on a one-time basis and due no later than 45 days after the state’s demand, which would likely be in the second calendar quarter of 2029, if required.
During fiscal 2024, we determined that we would have no use for certain distribution equipment in the Missouri distribution center and could not fully recover the net book value of such equipment.
2 unchanged sentences
During fiscal 2025, we sold certain real estate located adjacent to the Missouri distribution center for $ 2.3 million, net of transaction costs, and recognized a $ 2.3 million pre-tax gain on sale.
−Removed: During fiscal 2025 and 2024, we relocated a portion of our plastic injection molding operations to the Maryville facility.
−Removed: As of April 30, 2025, the plastic injection molding machinery and equipment previously utilized in our Deep River facility had been relocated to the Maryville facility or disposed of.
−Removed: We recognized no material amounts of impairment related to the assets previously utilized at the Deep River facility.
Environmental Remediation
1 unchanged sentence
Though not exhaustive, examples of applicable regulations include confined space safety, walking and working surfaces, machine guarding, and life safety.
+Added: SMITH & WESSON BRANDS, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
We are also subject to numerous federal, state, and local environmental laws and regulations concerning, among other things, emissions in the air;
7 unchanged sentences
We believe that we are in compliance with applicable environmental regulations in all material respects.
−Removed: SMITH & WESSON BRANDS, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
We are required to remediate hazardous waste at our facilities.
9 unchanged sentences
Based on information known to us, we do not expect current environmental regulations or environmental proceedings and claims to have a material adverse effect on our consolidated financial position, results of operations, or cash flows.
−Removed: However, it is not possible to predict with certainty the impact on us of future environmental compliance requirements or the cost of resolving of future environmental health and safety proceedings and claims, in part because the scope of the remedies that may be required is not certain, liability under federal environmental laws is joint and several in nature, and environmental laws and regulations are subject to modification and changes in interpretation.
+Added: However, it is not possible to predict with certainty the impact on us of future environmental compliance requirements or the cost of resolving future environmental health and safety proceedings and claims, in part because the scope of the remedies that may be required is not certain, liability under federal environmental laws is joint and several in nature, and environmental laws and regulations are subject to modification and changes in interpretation.
There can be no assurance that additional or changing environmental regulation will not become more burdensome in the future and that any such development would not have a material adverse effect on our company.
Employment Agreements — We have employment, severance, and change of control agreements with certain employees.
+Added: Restructuring
+Added: As a result of the Relocation, ($ 509,000 ), $ 1.2 million, and $ 7.1 million of restructuring charges, net of adjustments to our prior estimates, were recorded in fiscal 2026, 2025, and 2024, respectively.
SMITH & WESSON BRANDS, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
−Removed: Restructuring
−Removed: As a result of the Relocation, $ 1.2 million, $ 7.1 million, and $ 8.3 million of restructuring charges were recorded in fiscal 2025, 2024, and 2023, respectively.
The following table summarizes restructuring charges by line item for fiscal 2026, 2025 and 2024 (in thousands):
1 unchanged sentence
Cost of sales
−Removed: Research and development
Selling, marketing, and distribution
13 unchanged sentences
Severance and
−Removed: employee-related
Accrual at April 30, 2024
19 unchanged sentences
The following table summarizes additional segment information, not already disclosed elsewhere (in thousands):
−Removed: For the Years Ended April 30,
+Added: For the Year Ended April 30,
Interest income
2 unchanged sentences
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.