Software Acquisition Group . Iii Stock Earnings Reports

Stran & Company reported a profitable inflection in Q1 2026. Total revenue rose 8.9% year-over-year to $31.2 million, with gross profit growing 13.7% to $9.6 million and gross margin expanding to 30.9%. The company generated net income of $744,000 (versus a net loss of $393,000 in Q1 2025) and EBITDA improved to $1.0 million. Operating expenses were essentially flat at $9.0 million, producing meaningful operating leverage (operating expenses fell to 28.8% of sales from 31.4% a year ago). The Stran segment grew 11.9% while the Stran Loyalty Solutions (SLS) segment turned profitable, with SLS operating income of $532,000 and a gross-margin improvement to 28.7% (vs. 21.8% prior year). Key strategic developments include several enterprise client renewals and new wins (multiyear nonprofit renewal, a gaming company loyalty deal, two Global 100 law firms), the launch of Stran Digital Solutions (a proprietary SaaS platform aimed at recurring, higher‑margin revenue), and a strong balance sheet with $12.8 million in cash, cash equivalents and investments. Management emphasized disciplined, selective M&A as well as intent to resume a share buyback program, calling current valuation attractive. Overall the quarter demonstrates simultaneous revenue growth, margin expansion and profitability while investing in technology and enterprise expansion.