Stran & Company, Inc.

Greetings. Welcome to the Strand and Company Fiscal Year 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Alexandra Schilt. You may begin.

Good morning, and thank you for joining Strawn & Company's 2025 Fiscal Year Financial Results and Business Update Conference Call. With us today are Andy Shape, Chief Executive Officer, and David Browner, Chief Financial Officer. Yesterday, we issued a press release detailing our results, which is available on our website at ir.strawn.com. Before we begin, please note that today's remarks may include forward-looking statements that involve risks and uncertainties as described in our SEC filings. With that, I'll turn the call over to Andy Shape. Please go ahead.

Thank you, Allie, and good morning, everyone. 2025 was a defining year for Strong. We delivered strong financial results while clearly demonstrating the scalability and long-term potential for our business model. We reported revenue of $116.2 million, representing a 40.6% growth over the prior year. This growth was driven by both robust execution and continued momentum across the business. Importantly, we achieved 12.9% organic growth in our core promotional products business, fueled by increased spending from existing enterprise clients and the addition of new customers. What stands out is the high quality of this growth. We're seeing deeper engagement with our clients, continued expansion of programmatic relationships, and clear proof that our platform is scaling effectively. On the expense side, we made meaningful progress in improving operational efficiency. Total operating expenses declined to 31.1% of revenue in 2025, down from 37.2% in 2024. While we did incur elevated legal, accounting, and other public company costs, including expenses related to the re-audit of historical financials in the first half of the year, these one-time items are now largely behind us. Public company-related expenses totaled $5.2 million in 2025 compared to $3.3 million in 2024. On profitability, we generated $34.2 million in gross profit, reflecting strong demand and improving efficiencies as we scale. We significantly narrowed our net loss to $747,000 compared to a $4.1 million net loss in 2024. Even more importantly, we achieved positive EBITDA of $184,000 for the full year, a substantial improvement from a negative $3.6 million in 2024. These results highlight the underlying strength of our operating performance and the scalability of our model. These accomplishments are especially noteworthy given the significant tariff-related volatility we face throughout the year. Elevated tariffs increase product costs, particularly for direct import orders in our loyalty segment. Although we were able to pass along a portion of these costs to customers, margins were still compressed. In addition, tariff uncertainty created hesitation among buyers, particularly in our loyalty and casino segments, which impacted both revenue and profitability. While some uncertainty remains, we believe tariffs have now stabilized to a point where we can work effectively with vendors and customers without further material impact on our gross margins going forward. Stepping back, it's clear that this strong performance is not a one-off event. It is a result of deliberate long-term strategy that is now compounding. We've intentionally built strong around long-term programmatic relationships, a diversified and expanding customer base, and a technology-enabled platform that supports efficient scaling. Today, we serve more than 2,000 active customers, including over 30 Fortune 500 companies. An increasing portion of our revenue comes from program-based engagements, that provide greater visibility and recurring revenue streams. Our customer relationships are becoming deeper and more strategic. Clients are no longer engaging with us for just one-off campaigns or individual products. Instead, they are leveraging multiple areas of our platform, including promotional products, loyalty and incentive programs, e-commerce solutions, print services, warehousing, and logistics. As customers adopt more of our capabilities, we become more deeply embedded in their operations, driving higher retention and greater revenue durability. We continue to invest in solutions that strengthen these relationships and expand our value proposition. A prime example of this is the recent launch of our new client branded gifting platform. This builds on our core e-commerce capabilities, enables clients to deliver curated scalable gifting experience for employee recognition, customer engagement, or marketing initiatives. Importantly, It introduces a more recurring programmatic revenue stream while further integrating us into the client's engagement strategies. We've also strengthened our leadership and governance. Over the past year, we added experienced public company and industry leaders to our board of directors. These additions bring valuable experience, expertise in capital markets, operations, and strategic growth, and we are confident they will play a key role in supporting our future initiatives. Looking at the broader market, we operate in a large and highly fragmented industry. The promotional products market alone was $27.7 billion in 2025, with a significantly larger total addressable market when including adjacent categories. Given the lack of a dominant player, we see substantial opportunities to gain market share through both organic growth and strategic acquisitions. Our strategy remains focused and consistent. deepen relationships with enterprise clients, expand programmatic revenue, invest in technology, and pursue acquisitions that enhance our capabilities and geographic reach. When you combine these elements, it's clear we have built a business that is not just growing, but accelerating. As we look ahead to 2026, we are encouraged by the momentum that we see early in the year. While we are not providing formal guidance, we do expect a meaningful improvement in first quarter profitability driven by continued customer demand, increased operating leverage, and the strategic progress we have made in 2025. We believe this positions us well for sustained momentum throughout the year. Before I conclude, I'd like to briefly address our warrants. As detailed in our filings, these warrants have an exercise price of approximately $4.81 per share and are scheduled to expire in the fourth quarter of 2026. We view this as a meaningful near-term catalyst. As the warrants expire, we expect the overhang on our stock to be removed, which should simplify our capital structure and present a clearer, more investable equity story. In closing, our priorities remain clear. Drive sustained growth, expand our programmatic revenue base, improve profitability, and execute on strategic acquisitions that enhance our platform and create long-term shareholder value. I'll now turn the call over to our CFO, David Browner, for a more detailed review of our financial results. David, please go ahead.