Stran & Company, Inc.

Good morning everyone and welcome to Stran & Company second quarter 2026 earnings call. At this time all participants are in a listen only mode and a question and answer session will follow the formal presentation. If anyone should require operator assistance during this 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, Investor Relations at Crescendo Communications. Over to you.

Good morning, and thank you for joining Stran & Company's 2026 Second Quarter 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.stran.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, Andy.

Thank you, Ally. Good morning, everyone, and thank you for joining us today. The second quarter was a strong period for STRON. We continue to execute on the strategy we've been building over the past several years, and the results are showing up in our numbers. We are deepening relationships with large enterprise customers, winning new business across attractive verticals, strengthening our position in casino and gaming, and continuing to invest in technology and infrastructure necessary to support a larger and more scalable organization. Our opportunity extends well beyond traditional promotional products. Our goal is to become an increasingly important strategic partner to our customers, Help them manage complex branded merchandise, loyalty, incentive, e-commerce, and fulfillment programs through an integrated platform. During the quarter, we made progress against that vision while navigating the normal variability that comes with the timing, size, and mix of large customer programs. That progress is increasingly visible in our financial performance, beginning with continued top-line revenue growth in the second quarter. For the quarter, revenue increased 2.4% to $33.4 million compared with $32.6 million in the prior year period. Growth profit increased to $10 million with a growth margin of 30%. We remained profitable generating operating income of $86,000 and net income of $309,000. Our core strong business continued to be the primary driver of top line growth with that segment revenue increasing 6.9% year over year. reflecting higher spending from existing clients as well as new customer base business. We were also encouraged by what we saw at Strawn Loyalty Solutions, our business segment consisting of the Gainer Group business. While SLS revenue declined year over year, the casino and gaming business can experience variability between quarters based on the timing and size of individual customer programs and orders. More importantly, the profitability of the business improved meaningfully during the quarter. SLS generated a higher growth profit Expanded gross margin to 24.3% from 21% and nearly doubled segment operating income year-over-year. When we step back and look at the first six months of 2026, the underlying progress becomes even more clear. The first half represents the strongest six-month period in STRON's history as a public company. First half revenue increased 5.4% to $64.6 million. Growth profit increased 7.2% to $19.7 million. and Gross Margin Improved to 30.4%. Most importantly, we generated $731,000 of operating income compared with an operating loss of $140,000 last year, when that income increased to $1.1 million from $250,000. EBITDA for the first half more than doubled to $1.6 million from $728,000 a year ago. Taken together, the second quarter and first half results demonstrate continued progress across the areas that matter most to us, growing our core business, improving the profitability of SLS, strengthening the earnings profile of the company, and investing in the platform to support our next stage of growth. Beyond the financial results, we had a productive quarter on the business development front. We continue to win new enterprise relationships, expand into attractive verticals, and build the kind of long-term programmatic business that drives durable revenue. In May, we announced multiple new contract wins within the consumer retail market, including a three-year uniform program with a leading U.S. grocer retailer that is expected to generate six figures in annual revenue, along with additional uniform and promotional product orders from regional grocery operations. These wins demonstrate the value of our broader approach. Establishing an initial relationship through a uniform or promotional program gives us an opportunity to execute, deepen that relationship, and potentially expand into additional brand and merchandise fulfillment and marketing programs over time. That is central to our land and expand strategy. Win the relationship, deliver at a high level, and then increase the breadth of service that we provide as the relationship develops. We continued that momentum in June when we announced a new contract with the leading U.S. provider of construction material and systems serving commercial and residential markets. That engagement is expected to generate nearly seven figures in annual revenue and includes branded merchandise, promotional campaigns, and end-to-end program management. This win is significant not only for its expected initial contribution, but because it demonstrates our ability to apply the strong platform across new industries and large enterprise organizations. As with many of our relationships, our objective is to establish a strong initial program and then identify opportunities to broaden the relationship over time. We also continue to strengthen our position in the casino and gaming market, which remains an important area of opportunity for Stron. Toward the end of the quarter, we announced the addition of an industry veteran, Kevin Lewis, as a contracted sales representative. Kevin brings extensive experience and relationship across the casino and gaming industry, along with an existing customer portfolio. This is particularly compelling when viewed alongside the improving financial performance of Stron Loyalty Solutions. As we discussed earlier, SLS delivered significantly stronger margins and profitability during both second quarter and first half of the year. Our objective is now to build on that stronger operating foundation by expanding the business we can bring through the platform. We continue to see favorable trends across promotional products and loyalty industries as companies place greater emphasis on customer engagement, employee retention, and brand activation. At the same time, larger organizations increasingly want integrated partners that can combine technology, creative execution, fulfillment, and program management at scale. That shift plays directly to Stron's strengths and is reflected in our continued advances within the industry. Most recently, Stron moved up two positions to number 21 on the 2026 ASI Counselor Top 40 Distributor List, a key industry benchmark based on verified North American promotional products revenues. That recognition reflects the scale we have built, the strength of our enterprise relationships, and our ability to continue gaining share in a large and fragmented market. Acquisitions also remain an important part of our growth strategy, but we will continue to be disciplined. We are focused on opportunities that expand our capabilities, add attractive customer relationships, strengthen key verticals, and create meaningful long-term value. Our balance sheet gives us the flexibility to be patient and pursue the right opportunities at the right time. As we enter the second half of the year, we are operating from a stronger foundation with a growing core business, improving profitability at SLS, new enterprise wins, and an expanding pipeline. Our focus is on converting that momentum into sustainable revenue growth, stronger profitability, and increasing cash generation. Capital allocation remains part of that strategy. During the second quarter, we resumed our share repurchase program, purchasing and retiring approximately 131,000 shares for approximately $272,000. Since program inception, the company has repurchased a total of approximately 2.3 million shares for approximately $4.2 million at a weighted average of $1.81 per share. We will continue to balance repurchase with investments in the organic growth and strategic acquisitions, always with the objective of creating long-term shareholder value. I also want to highlight that our public warrants, which have an exercise price of approximately $4.81 per share, are scheduled to expire in the fourth quarter of 2026. As the warrants expire, we expect the overhang on our stock to be removed, which should simplify our capital structure and present a cleaner equity story for current and prospective investors. Strana has multiple paths to grow. Our focus is clear. Execute with discipline, continue improving the economics of the business, and translate that business into greater value for our shareholders. 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.