Stran & Company, Inc.

Good morning and welcome to the Strand & Company second quarter 2025 earnings call. At this time, all participants are in a listen-only mode and the floor will be open for questions following the presentation. If anyone should require operator assistance during the conference, please press star zero on your phone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Alexandra Schilt of Crescendo Communications. Alexandra, the floor is yours.

Good morning, and thank you for joining Strawn & Company's 2025 Second Quarter Financial Results and Business Update conference call. With us today are Andy Shea, Chief Executive Officer, and David Browner, Chief Financial Officer. The company issued a press release yesterday, August 12, 2025, detailing its financial results for the second quarter of 2025. The release is also available on its website. If you have any questions following today's call or would like any additional information, please contact Crescendo Communications at 212-671-1020. Today's remarks will include a review of Strawn's financial and operational performance, followed by a Q&A session. Please note the company may make forward-looking statements during the call that involve risks and uncertainties, many of which are outside of its control. We encourage you to review Strawn's filings with the SEC for full discussion of these risk factors. With that, I will now turn the call over to Andy Shape. Please go ahead, Andy.

Andy Shape Thank you, Ally, and good morning, everyone. We are excited to report another quarter of strong execution, profitable growth, and continued strategic momentum here at Strong. Our performance in the second quarter of 2025 demonstrates not only scalability of our business model, but also the resilience and strength of our team, our strategy, and our commitment to delivering shareholder value. During the quarter, we achieved an impressive 95.2 percent increase in sales, reaching approximately 32.6 million. This strong top-line performance was driven by a combination of robust organic growth, which accounted for a 30.4 percent increase, and our strategic acquisition of Gander Group Business, operating at our strong loyalty solution segment. Alongside this sales growth, growth profit rose over 80% to approximately $9.9 million, and we reported a net profit of $643,000 for the quarter, demonstrating the efficiency of our operations and the resilience of our model in a competitive market landscape. Delving deeper into our segment performance, our core strong business segment generated $21.8 million in revenue during the quarter, reflecting continued expansion among both new and existing customers. Meanwhile, our strong loyalty solution segment contributed $10.8 million in revenue, demonstrating the success of our integration efforts and the incremental value the acquisition brings to the overall business. Gross profit margins stood at 30.3% for the quarter, with the strong segment improving to 34.9% and the SLS segment operating at 21%. These margins illustrate our strategic mix of high-margin organic business and synergistic acquired revenue, even as we manage through inherently lower margins of the Gander Group operations. In addition to our strong financial performance, I'd like to highlight additional strategic, operational, and governance milestones. One of the recent achievements for Strong was our advancements in the Promotional Products Association's International Prestigious PPI 100 ranking. We were honored to be recognized as the 12th leading promotional product distributor in North America marking a remarkable eight-place lead from our prior year position. We are also recognized by the Advertising Specialties Institute, ASI, which ranked STRON number 23 in its 2025 counselor top 40 distributor list, up from number 27 last year. We believe these recognitions are a clear reflection of the operational scale we built, the depth and strength of our client relationships, and the industry-leading innovation we are delivering across branded merchandise, loyalty incentives, and digital platform integration. It is also a powerful endorsement of the talented and dedicated team behind the Strong brand. Just as we are earning recognition from the outside, we are also reinforcing our internal governance with new leadership to support Strong's next phase of growth. We recently welcomed three exceptional leaders to our board of directors, Mark Adams, Sarah Cummins, and Brian Posner. Each brings a unique and highly relevant skill set to our organization. Mark Adams has a deep background in media, digital transformation, and private equity investment. Sarah Cummins brings experience in sports consumer branding and global partnerships. And Brian Posner is a seasoned financial executive and governance expert, having served as CFO for multiple public companies. These additions are strategic and reflect a deliberate evolution of our governance structure to align with our broader goals of operational excellence, transparency, and long-term competitiveness. In addition, Following the successful conclusion of our 2025 Annual General Meeting, I am pleased to report that STRON is now fully compliant with all NASDAQ continuing listing requirements. Importantly, as of June 30, 2025, we maintained approximately $18.1 million in cash, cash equivalents, and investments on our balance sheet. This strong liquidity position gives us the flexibility to continue investing in strategic initiatives and technology while also supporting shareholder value. Reflecting this confidence, We repurchased over 110,000 shares during the second quarter, demonstrating our continued interest in maximizing shareholder value and responsible capital allocation. As we move through the remainder of the year, we believe STRON is better positioned more than ever to accelerate growth, deepen client partnerships, and expand our market presence. We remain focused on driving innovation, operating with discipline, and most importantly, delivering long-term value to our shareholders. With that, I'll turn the call over to David Browner, our CFO, to review our financial results in greater detail. David, please go ahead.