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Malibu Boats (NASDAQ:MBUU – Get Free Report) and Sturm, Ruger & Company, Inc. (NYSE:RGR – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their valuation, earnings, profitability, analyst recommendations, risk, institutional ownership and dividends.

Valuation and Earnings This table compares Malibu Boats and Sturm, Ruger & Company, Inc.”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Malibu Boats $819.06 million 0.59 $14.88 million $0.73 35.38 Sturm, Ruger & Company, Inc. $546.06 million 1.21 -$4.39 million ($0.28) -147.84 Malibu Boats has higher revenue and earnings than Sturm, Ruger & Company, Inc.. Sturm, Ruger & Company, Inc. is trading at a lower price-to-earnings ratio than Malibu Boats, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations This is a breakdown of recent ratings and price targets for Malibu Boats and Sturm, Ruger & Company, Inc., as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Malibu Boats 1 3 1 1 2.33 Sturm, Ruger & Company, Inc. 2 0 1 0 1.67 Malibu Boats currently has a consensus price target of $32.40, suggesting a potential upside of 25.44%. Sturm, Ruger & Company, Inc. has a consensus price target of $43.00, suggesting a potential upside of 3.88%. Given Malibu Boats’ stronger consensus rating and higher probable upside, equities analysts plainly believe Malibu Boats is more favorable than Sturm, Ruger & Company, Inc..

Volatility & Risk Malibu Boats has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Sturm, Ruger & Company, Inc. has a beta of 0.15, meaning that its share price is 85% less volatile than the S&P 500.

Insider and Institutional Ownership 91.3% of Malibu Boats shares are owned by institutional investors. Comparatively, 64.0% of Sturm, Ruger & Company, Inc. shares are owned by institutional investors. 1.2% of Malibu Boats shares are owned by company insiders. Comparatively, 4.6% of Sturm, Ruger & Company, Inc. shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability This table compares Malibu Boats and Sturm, Ruger & Company, Inc.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Malibu Boats 1.76% 4.25% 2.95% Sturm, Ruger & Company, Inc. -0.80% 6.93% 5.76% Summary Malibu Boats beats Sturm, Ruger & Company, Inc. on 10 of the 14 factors compared between the two stocks.

About Malibu Boats (Get Free Report)

Malibu Boats, Inc. designs, engineers, manufactures, markets, and sells a range of recreational powerboats. It operates through three segments: Malibu, Saltwater Fishing, and Cobalt. The company provides performance sport boats, and sterndrive and outboard boats under the Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt brands. Its products are used for a range of recreational boating activities, including water sports, such as water skiing, wakeboarding, and wake surfing; and general recreational boating and fishing. The company sells its products through independent dealers in North America, Europe, Asia, the Middle East, South America, South Africa, and Australia/New Zealand. Malibu Boats, Inc. was founded in 1982 and is based in Loudon, Tennessee.

About Sturm, Ruger & Company, Inc. (Get Free Report)

Sturm, Ruger & Co., Inc. engages in the business of designing, manufacturing, and selling firearms to domestic customers. It operates through the Firearms and Castings segments. The Firearms segment focuses on manufacturing and selling rifles, pistols, and revolvers principally to a number of federally licensed, independent wholesale distributors. The Castings segment offers steel investment castings and metal injection molding parts. The company was founded by William B. Ruger in 1949 and is headquartered in Southport, CT.

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Malibu Boats (NASDAQ:MBUU – Get Free Report) and Sturm, Ruger & Company, Inc. (NYSE:RGR – Get Free Report) are both small-cap consumer discretionary companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Volatility & Risk Malibu Boats has a beta of 1.22, suggesting that its stock price is 22% more volatile than the S&P 500. Comparatively, Sturm, Ruger & Company, Inc. has a beta of 0.15, suggesting that its stock price is 85% less volatile than the S&P 500.

Institutional & Insider Ownership 91.4% of Malibu Boats shares are held by institutional investors. Comparatively, 64.0% of Sturm, Ruger & Company, Inc. shares are held by institutional investors. 1.2% of Malibu Boats shares are held by company insiders. Comparatively, 4.6% of Sturm, Ruger & Company, Inc. shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings This table compares Malibu Boats and Sturm, Ruger & Company, Inc.”s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Malibu Boats $807.56 million 0.61 $14.88 million $0.73 36.21 Sturm, Ruger & Company, Inc. $546.06 million 1.23 -$4.39 million ($0.28) -150.96 Malibu Boats has higher revenue and earnings than Sturm, Ruger & Company, Inc.. Sturm, Ruger & Company, Inc. is trading at a lower price-to-earnings ratio than Malibu Boats, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations This is a summary of recent recommendations for Malibu Boats and Sturm, Ruger & Company, Inc., as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Malibu Boats 1 3 1 1 2.33 Sturm, Ruger & Company, Inc. 2 0 1 0 1.67 Malibu Boats presently has a consensus price target of $32.40, suggesting a potential upside of 22.59%. Sturm, Ruger & Company, Inc. has a consensus price target of $43.00, suggesting a potential upside of 1.73%. Given Malibu Boats’ stronger consensus rating and higher probable upside, equities analysts plainly believe Malibu Boats is more favorable than Sturm, Ruger & Company, Inc..

Profitability This table compares Malibu Boats and Sturm, Ruger & Company, Inc.’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Malibu Boats 1.76% 4.25% 2.95% Sturm, Ruger & Company, Inc. -0.80% 6.93% 5.76% Summary Malibu Boats beats Sturm, Ruger & Company, Inc. on 10 of the 14 factors compared between the two stocks.

About Malibu Boats (Get Free Report)

Malibu Boats, Inc. designs, engineers, manufactures, markets, and sells a range of recreational powerboats. It operates through three segments: Malibu, Saltwater Fishing, and Cobalt. The company provides performance sport boats, and sterndrive and outboard boats under the Malibu, Axis, Pursuit, Maverick, Cobia, Pathfinder, Hewes, and Cobalt brands. Its products are used for a range of recreational boating activities, including water sports, such as water skiing, wakeboarding, and wake surfing; and general recreational boating and fishing. The company sells its products through independent dealers in North America, Europe, Asia, the Middle East, South America, South Africa, and Australia/New Zealand. Malibu Boats, Inc. was founded in 1982 and is based in Loudon, Tennessee.

About Sturm, Ruger & Company, Inc. (Get Free Report)

Sturm, Ruger & Co., Inc. engages in the business of designing, manufacturing, and selling firearms to domestic customers. It operates through the Firearms and Castings segments. The Firearms segment focuses on manufacturing and selling rifles, pistols, and revolvers principally to a number of federally licensed, independent wholesale distributors. The Castings segment offers steel investment castings and metal injection molding parts. The company was founded by William B. Ruger in 1949 and is headquartered in Southport, CT.

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VANCOUVER, BC / ACCESS Newswire / April 30, 2026 / Rio Grande Resources Ltd. (CSE:RGR)(OTCQB:RGRLF) ("Rio Grande" or "RIO" the "Company"), is pleased to announce results from its recently completed airborne magnetic and radiometric geophysical surveys conducted at its Winston Gold-Silver Project (the "Winston Project" or the "Project") located in the Black Range Mountains of Sierra County, New Mexico.

MAYODAN, N.C.--(BUSINESS WIRE)--Sturm, Ruger & Company, Inc. (NYSE: RGR) (“Ruger” or the “Company”) today announced that it has entered a Strategic Cooperation Agreement (“Agreement”) with Beretta Holding S.A. (“Beretta Holding”), the Company's largest shareholder. The Agreement reflects a shared commitment to long-term value creation, constructive engagement, and stability for Ruger's shareholders, employees, customers and industry partners. Under the terms of the Agreement, Ruger is expec.

VANCOUVER, BC / ACCESS Newswire / May 6, 2026 / Rio Grande Resources Ltd. (CSE:RGR)(OTCQB:RGRLF) ("Rio Grande" or "RIO" the "Company"), is pleased to announce a second phase of field sampling and mapping in support of planning efforts for its upcoming Phase 1 drill program at the Winston Gold-Silver Project ("Winston" or the "Project"), located in the Black Range Mountains of Sierra County, New Mexico. The field program is being carried out by Dahrouge Geological Consulting USA Ltd. ("Dahrouge") and is expected to include approximately seven days of detailed structural mapping and surface sampling during the second week of May 2026.

The upcoming fieldwork represents the next step in a systematic exploration approach following the Company's recent high-grade surface sampling results, which returned up to 41.2 g/t gold and 1,435 g/t silver from the Poverty Creek area (see news release February 19, 2026), as well as the completion of an airborne magnetic and radiometric survey that identified key structural corridors and zones of potential hydrothermal alteration across the property. The program is designed to integrate and ground-truth these datasets through detailed structural mapping and systematic sampling, with the objective of refining and prioritizing high-confidence drill targets for the Phase 1 Drill Program.

Field Program Focus and Objectives
The field program will focus on the Poverty Creek area, the Ivanhoe and Emporia patented claims, and additional target areas identified through interpretation of the recently completed airborne geophysical survey (see Figure 1). These areas were selected to follow up on previously reported high-grade surface sampling results and geophysical responses interpreted to reflect structural corridors and potential zones of hydrothermal alteration. Detailed structural mapping of vein orientations, fault systems, and alteration zones will be carried out alongside systematic sampling of in situ vein exposures.

Figure 1. Priority field target areas at the Winston Project, including Poverty Creek, Ivanhoe, and Emporia, identified through integration of surface sampling results and interpretation of airborne magnetic and radiometric data

Jason Barnard, Rio Grande's CEO commented: "This next phase of fieldwork is a key step in advancing the Winston Project toward drilling and unlocking the broader potential of the property. By integrating our recent high-grade sampling results with airborne geophysical data, we are focusing on structurally controlled targets that we believe offer strong discovery potential. This program is designed to refine and prioritize those targets, allowing us to move toward our Phase 1 Drill Program with a disciplined, data-driven approach while continuing to build value for shareholders."

Channel sampling will be the primary method used to evaluate vein continuity and grade distribution, with rock chip samples collected where channel sampling is not feasible (see Figure 2). This approach is consistent with the Company's December 2025 field program, where channel and rock chip sampling were used to evaluate exposed in situ veins, vein outcrops, subcrops, and historic workings. Data collected during the current program will be used to refine the Company's understanding of structural controls on mineralization and to finalize priority drill targets for the upcoming Phase 1 Drill Program.

Figure 2. Geologist preparing an in situ vein exposure for channel sampling during the December 2025 field program

Next Steps

The data collected during the program will be integrated with previously reported surface sampling results and the recently completed airborne geophysical survey to refine the Company's understanding of structural controls on mineralization across the property. This integrated dataset will be used to prioritize high-confidence drill targets based on structural continuity, association with known mineralization, and favorable geological characteristics ahead of the Phase 1 Drill Program.

Qualified Person

The scientific and technical information contained in this news release has been reviewed and approved by Mr. Jacob Anderson CPG, MAusIMM, a Qualified Person as defined under National Instrument 43-101. Mr. Anderson is independent of Rio Grande Resources.

The Qualified Person has reviewed the sampling procedures, analytical methods, and results disclosed herein and is satisfied that the information has been accurately presented. Verification included a review of field procedures, sample locations, and consistency with historical records.

About Rio Grande Resources

Rio Grande Resources (CSE:RGR)(OTCQB:RGRLF) is a burgeoning mineral exploration company focused on unlocking the high-grade gold and silver potential within its 3,000-acre drill-ready property in the Black Range of Sierra County, New Mexico. The company holds 100% interest in the Winston project group, which includes the 2 patented historic Ivanhoe & Emporia Claims, and Little Granite mines, all known for their past production of high-grade precious metals. Rio Grande Resources is led by a team of experienced professionals with expertise in mineral exploration and development, who are targeting large-scale precious metal discoveries within the property's well-documented low-sulfidation epithermal setting.

To view the company fact sheet and corporate presentation, please visit our website at www.riogranderesources.ca

Contact and Information

Company
Jason Barnard, CEO and Director
(604) 767-6598
[email protected]

Follow us or contact us on social media
X: @RioGrandeRGR
LinkedIn: https://www.linkedin.com/company/rio-grande-resources-ltd/
Facebook: facebook.com/profile.php?id=61572800435230

Forward-Looking Statements

Except for the statements of historical fact contained herein, the information presented in this news release and oral statements made from time to time by representatives of the Company are or may constitute "forward-looking statements" as such term is used in applicable United States and Canadian laws and including, without limitation, within the meaning of the Private Securities Litigation Reform Act of 1995, for which the Company claims the protection of the safe harbor for forward-looking statements. Such forward-looking statements and forward-looking information include, but are not limited to, the proposed benefits of the Arrangement. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any other statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect," "is expected," "anticipates" or "does not anticipate," "plans," "estimates" or "intends," or stating that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved) are not statements of historical fact and should be viewed as forward-looking statements. The Company cautions that the identification of structural features or geophysical anomalies does not necessarily indicate the presence of economic mineralization, and there can be no assurance that the Company's geological interpretation or exploration objectives will result in a discovery. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such risks and other factors include, among others, the availability of capital to fund programs and the resulting dilution caused by the raising of capital through the sale of shares, continuity of agreements with third parties, the satisfaction of the conditions to the Arrangement, risks and uncertainties associated with the environment and delays in obtaining governmental approvals, permits or financing. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond the Company's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact the Company and the statements contained in this news release can be found in the Company's filings on SEDAR+. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise. Accordingly, readers should not place undue reliance on forward-looking statements contained in this news release and in any document referred to in this news release. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities. Please refer to the Company's most recent filings under its profile on SEDAR+ at www.sedarplus.ca for further information respecting the risks affecting the Company and its business.

The CSE has neither approved nor disapproved the contents of this news release and accepts no responsibility for the adequacy or accuracy hereof.

SOURCE: Rio Grande Resources

Delivered First Quarter Net Sales of $141.4 Million

New Products Accounted for $51.6 Million or 41% of Firearm Sales

Earnings per Share was $0.01, Adjusted Earnings per Share was $0.27

Generated $18.8 Million of Cash from Operations

Declares Quarterly Dividend of $0.11 Per Share

MAYODAN, N.C.--(BUSINESS WIRE)--Sturm, Ruger & Company, Inc. (NYSE: RGR) (“Ruger” or the “Company”) announced today its financial results for the first quarter 2026.

First Quarter 2026 Financial Highlights

The Company achieved net sales of $141.4 million, a 4.1% increase over the $135.7 million achieved in the corresponding period in 2025. Diluted earnings were $0.01 per share compared to $0.46 per share in the corresponding period in 2025. On an adjusted basis, diluted earnings for the first quarter of 2026 were $0.27 per share compared to $0.46 per share in the corresponding period in 2025. During the first quarter, the Company incurred incremental expenses associated with negotiating a Strategic Cooperation Agreement (“Agreement”) with Beretta Holding S.A. (“Beretta Holding”) and organizational changes implemented in February. Additionally, we recorded a one-time non-recurring expense of $1.7 million or $0.07 per share not included in the adjusted earnings per share.

As announced on May 4, 2026, Ruger and Beretta Holding executed the Agreement, which reflects a shared commitment to long-term value creation, constructive engagement, and stability for Ruger’s shareholders, employees, customers and industry partners. The Company incurred legal, professional and advisory fees and other expenses totaling approximately $3.2 million related to the Agreement negotiations and other related matters during the quarter. These expenses are largely non-recurring, limited in duration and do not, in the opinion of management, relate to the underlying performance of the core business. Additional Agreement-related expenses may be incurred in the near term.

Additionally, in February, the Company executed a reduction-in-force as part of broader efforts to structurally align the organization to strategic priorities and the future operating model. These actions are consistent with the changes outlined in the 2026 Plan and, more broadly, the Ruger 2030 framework. The moves improve efficiency, enhance accountability and position the Company for long-term profitable growth. The associated severance and related expense of $2.5 million were recognized in the quarter and are not, in the opinion of management, indicative of ongoing operations.

Taken together, these two discrete items reflect actions to ensure the Company’s independence and strengthen its operational foundation, both of which are in the best long-term interests of shareholders.

As previously disclosed, the Board of Directors declared a dividend of $0.11 per share for the first quarter for shareholders of record as of May 14, 2026, payable on May 29, 2026. This dividend equates to approximately 40% of adjusted net income of $0.27 per share for the first quarter of 2026.

“Our first quarter results reflect both the strength of our underlying business and the actions we have taken to position Ruger for the future,” said Todd Seyfert, President and Chief Executive Officer. “Building on our momentum in 2025, we continue to focus on innovation, have great demand across our offerings and see encouraging signs in the market. This quarter was our fourth consecutive quarter of year-over-year sales growth as we continue to outperform the market in top-line sales."

Additional Highlights

The estimated sell-through of the Company’s products from the independent distributors to retailers in Q1 2026 increased by 3.2% from Q1 2025, exceeding a 1.6% increase in adjusted NICS during the same period. Sales of new products, including the RXM pistol, Marlin 1894 lever-action rifles, American Centerfire Rifle Generation II, Glenfield rifles, Harrier rifles, and the Ruger Red Label III Shotgun, represented $51.6 million, or 41%, of firearm sales for the quarter. New product sales include only major new products that were introduced in the past two years. Compared to the first quarter of 2025, the Company’s finished goods inventories decreased 95,800 units while distributors’ inventories decreased 26,400 units, reflecting strong retail pull through of our new products. For Q1 2026, cash generated from operations totaled $18.8 million. As of March 28, 2026, Ruger’s cash and short-term investments totaled $105.2 million. The Company’s current ratio is 3.5 to 1 and there is no debt. In the first three months of 2026, capital expenditures totaled $4.8 million. The Company expects capital expenditures to total $30 million for the year for continued investments in new product introductions, expanded capacity for product lines in greatest demand, upgraded manufacturing capabilities and strengthened facility infrastructure. In the first 3 months, the Company returned $1.3 million to its shareholders through the payment of quarterly dividends. The Company did not repurchase any shares of its common stock during the period. "While we are extremely excited about our 2026 plan and approach, we remain focused on improving our overall cost structure and profitability,” Seyfert added. “The actions we took during the quarter – both in protecting the interests of shareholders and driving cost out of the organization – are already contributing to a more focused and efficient operating model. As these temporary expenses roll off, we expect improved visibility into the underlying earnings power of the business.”

Today, the Company filed its Quarterly Report on Form 10-Q for the first quarter of 2026. The financial statements included in this Quarterly Report on Form 10-Q are attached to this press release.

The Quarterly Report on Form 10-Q for the first quarter of 2026 is available on the SEC website at SEC.gov and the Ruger website at Ruger.com/corporate. Investors are urged to read the complete Quarterly Report on Form 10-Q to ensure that they have adequate information to make informed investment judgments.

Earnings Call Information

The Company will host a webcast at 4:30pm ET today to discuss the first quarter 2026 financial results. Participants may access the live webcast via this link or by visiting Ruger.com/corporate. Those who wish to ask questions during the webcast will need to pre-register prior to the meeting.

About Sturm, Ruger & Co., Inc.

Sturm, Ruger & Co., Inc. is one of the nation's leading manufacturers of rugged, reliable firearms for the commercial sporting market. With products made in America, Ruger offers consumers almost 800 variations of 40 product lines, across the Ruger, Marlin and Glenfield brands. For over 75 years, Ruger has been a model of corporate and community responsibility. Our motto, “Arms Makers for Responsible Citizens®,” echoes our commitment to these principles as we work hard to deliver quality and innovative firearms.

Forward-Looking Statements

The Company may, from time to time, make forward-looking statements and projections concerning future expectations. Such statements are based on current expectations and are subject to certain qualifying risks and uncertainties, such as market demand, sales levels of firearms, anticipated castings sales and earnings, the need for external financing for operations or capital expenditures, the results of pending litigation against the Company, the impact of future firearms control and environmental legislation, and accounting estimates, any one or more of which could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. The Company undertakes no obligation to publish revised forward-looking statements to reflect events or circumstances after the date such forward-looking statements are made or to reflect the occurrence of subsequent unanticipated events.

This press release includes certain non-GAAP financial measures, including Adjusted EBITDA and adjusted earnings per share. These measures are not prepared in accordance with U.S. generally accepted accounting principles (GAAP) and should not be considered in isolation or as a substitute for the most directly comparable GAAP measures. Reconciliations of each non-GAAP measure to the most directly comparable GAAP measure are included in the tables accompanying this release.

STURM, RUGER & COMPANY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(Dollars in thousands)

March 28, 2026

December 31, 2025

Assets

Current Assets

Cash

$

23,748

$

18,451

Short-term investments

81,420

74,082

Trade receivables, net

72,920

64,510

Gross inventories

102,850

113,166

Less LIFO reserve

(67,886

)

(67,058

)

Less excess and obsolescence reserve

(2,715

)

(3,227

)

Net inventories

32,249

42,881

Prepaid expenses and other current assets

10,741

11,680

Total Current Assets

221,078

211,604

Property, plant and equipment

511,048

506,799

Less allowances for depreciation

(431,950

)

(426,702

)

Net property, plant and equipment

79,098

80,097

Deferred income taxes

19,128

19,720

Other assets

29,807

30,576

Total Assets

$

349,111

$

341,997

STURM, RUGER & COMPANY, INC.

    CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Continued)

(Dollars in thousands, except per share data)

  March 28, 2026

December 31, 2025

Liabilities and Stockholders’ Equity

Current Liabilities

Trade accounts payable and accrued expenses

$

38,314

$

34,122

Contract liabilities with customers

714

-

Product liability

942

964

Employee compensation and benefits

18,597

15,023

Workers’ compensation

4,614

4,638

Total Current Liabilities

63,181

54,747

Lease liabilities

1,056

1,158

Employee compensation

1,513

2,271

Product liability accrual

61

61

Contingent liabilities

-

-

Stockholders’ Equity

Common Stock, non-voting, par value $1:

Authorized shares 50,000; none issued

-

-

Common Stock, par value $1:

Authorized shares – 40,000,000

2026 – 24,494,291 issued,

15,948,066 outstanding

2025 – 24,490,478 issued,

15,944,253 outstanding

24,494

24,490

Additional paid-in capital

56,040

55,356

Retained earnings

420,897

422,045

Less: Treasury stock – at cost

2026 – 8,546,225 shares

2025 – 8,546,225 shares

(218,131

)

(218,131

)

Total Stockholders’ Equity

283,300

283,760

Total Liabilities and Stockholders’ Equity

$

349,111

$

341,997

STURM, RUGER & COMPANY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (UNAUDITED)

(Dollars in thousands, except per share data)

  Three Months Ended

March 28, 2026

March 29, 2025

Net firearms sales

$

140,896

$

135,195

Net castings sales

460

543

Total net sales

141,356

135,738

Cost of products sold

113,278

105,843

Gross profit

28,078

29,895

Operating expenses:

Selling

9,356

9,413

General and administrative

20,671

12,010

Total operating expenses

30,027

21,423

Operating (loss) income

(1,949

)

8,472

Other income:

Interest income

801

1,038

Interest expense

(22

)

(16

)

Other income, net

1,096

253

Total other income, net

1,875

1,275

(Loss) income before income taxes

(74

)

9,747

Income taxes

(202

)

1,979

Net income and comprehensive income

$

128

$

7,768

Basic earnings per share

$

0.01

$

0.47

Diluted earnings per share

$

0.01

$

0.46

Weighted average number of common shares outstanding - Basic

15,945,349

16,623,214

Weighted average number of common shares outstanding - Diluted

16,247,380

16,850,956

Cash dividends per share

$

0.08

$

0.24

STURM, RUGER & COMPANY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

Three Months Ended

March 28, 2026

March 29, 2025

Operating Activities

Net income

$

128

$

7,768

Adjustments to reconcile net income to cash provided by operating activities:

Depreciation and amortization

6,008

5,571

Stock-based compensation

737

1,146

Excess and obsolescence inventory reserve

(512

)

40

Gain on disposal of assets

(1

)

-

Deferred income taxes

592

(1,576

)

Changes in operating assets and liabilities:

Trade receivables

(8,410

)

(343

)

Inventories

11,144

5,740

Trade accounts payable and accrued expenses

4,116

(2,281

)

Contract liabilities with customers

714

789

Employee compensation and benefits

2,816

(5,023

)

Product liability

(22

)

(58

)

Prepaid expenses, other assets and other liabilities

1,440

(628

)

Cash provided by operating activities

18,750

11,145

Investing Activities

Property, plant and equipment additions

(4,791

)

(1,124

)

Net proceeds from the sale of assets

1

-

Purchases of short-term investments

(11,375

)

(36,288

)

Proceeds from maturities of short-term investments

4,037

39,580

Cash (used for) provided by investing activities

(12,128

)

2,168

Financing Activities

Remittance of taxes withheld from employees related to

share-based compensation

Repurchase of common stock

(49

-

)

(178

(2,991

)

)

Dividends paid

(1,276

)

(3,992

)

Cash used for financing activities

(1,325

)

(7,161

)

Increase in cash and cash equivalents

5,297

6,152

Cash and cash equivalents at beginning of period

18,451

10,028

Cash and cash equivalents at end of period

$

23,748

$

16,180

Non-GAAP Financial Performance Measures

In an effort to provide investors with additional information regarding its financial results, the Company refers to various United States generally accepted accounting principles (“GAAP”) financial measures and two supplemental non-GAAP financial performance measures, Adjusted EBITDA, Adjusted EBITDA margin, and adjusted diluted earnings per share (Adjusted EPS), which management believes provides useful information to investors. These non-GAAP financial performance measures may not be comparable to similarly titled financial performance measures being disclosed by other companies. In addition, the Company believes that these non-GAAP financial performance measures have limitations as analytical tools, and, accordingly, should be considered in addition to, and not in lieu of, GAAP financial measures. The presentation of Adjusted EBITDA should not be construed to imply that the Company’s future results will not be affected by unusual or non-recurring items.

The Company believes that Adjusted EBITDA and Adjusted EBITDA margin are useful to understanding its operating results and the ongoing performance of its underlying business, as Adjusted EBITDA assists investors in comparing the Company’s performance across reporting periods on a consistent basis by excluding items that the Company does not believe are indicative of its operating performance. The Company believes that this reporting provides better transparency and comparability to its operating results. The Company uses both GAAP and non-GAAP financial measures to evaluate the Company’s financial performance.

The Company defines Adjusted EBITDA as earnings before interest, taxes, and depreciation and amortization (EBITDA), as further adjusted to eliminate the impact of certain items that the Company does not consider indicative of its ongoing operating performance, as itemized below. Specifically, the Company calculates Adjusted EBITDA by (i) adding the amount of interest expense, income tax expense, and depreciation and amortization expenses that have been deducted from net income back into net income, (ii) subtracting the amount of interest income that was included in net income from net income, (iii) subtracting income tax benefits, (iv) adding the amount of extraordinary cash and non-cash, non-operating expenses, and (v) subtracting non-recurring income or non-recurring gains that do not contribute directly to management’s evaluation of its operating results. The Company calculates Adjusted EBITDA margin by dividing Adjusted EBITDA by total net sales.

Adjusted EBITDA was $10.9 million for the three months ended March 28, 2026, a decrease of 23.9% from $14.3 million in the comparable prior year period.

The Company believes that Adjusted EPS is useful to understanding its operating results and the ongoing performance of its underlying business by identifying unusual and infrequent non-operating items that are not related to our ongoing operations and presenting our earnings independent of those items.

Non-GAAP Reconciliation – Adjusted EBITDA

Adjusted EBITDA

(Unaudited, dollars in thousands)

Three Months Ended

March 28, 2026

March 29, 2025

Net income

$

128

$

7,768

Income tax (benefit) expense

(202

)

1,979

Depreciation and amortization expense

6,008

5,571

Interest income

(801

)

(1,038

)

Interest expense

22

16

Stockholder rights costs (a)

3,200

-

Severance costs (b)

2,523

-

Adjusted EBITDA

$

10,878

$

14,296

Adjusted EBITDA margin

7.7

%

10.5

%

Net income margin

0.1

%

5.7

%

Costs incurred in engaging with Beretta Holding S.A. (“Beretta”) on, amongst other things, Beretta’s ownership of Company Common Stock, the Rights Plan, negotiations concerning potential strategic cooperation between the Company and Beretta, and in engaging a proxy solicitation firm and preparing a preliminary proxy statement associated with the 2026 Annual Meeting. Costs incurred associated with severance and related costs as part of an executed reduction-in-force as part of broader efforts to structurally align the organization to strategic priorities and the future operating model and are not indicative of ongoing operations. Non-GAAP Reconciliation – Adjusted EPS

Adjusted Diluted Earnings per Share

Adjusted diluted earnings per share is defined as (i) net income, adjusted to exclude items that may include, but are not limited to, significant charges or credits, and unusual and infrequent non-operating items that impact current results but are not related to our ongoing operations, such as M&A, integration and related costs, divided by (ii) the weighted average diluted common stock shares outstanding.

Three Months Ended

March 28, 2026

March 29, 2025

Diluted earnings per share

$0.01

$0.46

Stockholder rights costs

0.15

-

Severance costs

0.11

-

Adjusted diluted earnings per share

$0.27

$0.46

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After reaching an important support level, Starwood Property Trust (STWD - Free Report) could be a good stock pick from a technical perspective. STWD surpassed resistance at the 20-day moving average, suggesting a short-term bullish trend.

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Like other SMAs, if a stock's price is moving above the 20-day, the trend is considered positive. When the price falls below the moving average, it can signal a downward trend.

STWD has rallied 5.8% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests STWD could be on the verge of another move higher.

The bullish case only gets stronger once investors take into account STWD's positive earnings estimate revisions. There have been 1 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on STWD for more gains in the near future.

– Quarterly GAAP Earnings of $0.13 and Distributable Earnings (DE) of $0.39 per Diluted Share –

– Invested $2.5 Billion in the Quarter and $1.5 Billion After Quarter End –

–  Dividend of $0.48 per Share for Over a Decade –

– Awarded 2025 Mortgage REIT of the Year by PERE Credit –

, /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) today announced operating results for the fiscal quarter ended March 31, 2026. The Company delivered first quarter GAAP net income of $51.9 million, and Distributable Earnings (a non-GAAP financial measure) was $147.3 million.

"In a period of broad global volatility, we believe real estate and infrastructure credit is an attractive and relatively stable place to invest capital," said Barry Sternlicht, Chairman and CEO of Starwood Property Trust. "To that point, we remain active with $4.0 billion invested across our diversified portfolio year to date. As we move through 2026, we are focused on growing our earnings through disciplined origination, continued balance sheet optimization, and the best returning resolution of what we refer to as legacy assets."

"Starwood Property Trust's access to capital across multiple markets remains a defining advantage of our platform," added Jeffrey DiModica, President of Starwood Property Trust. "During the quarter, we completed our seventh infrastructure CLO at a record tight credit spread, refinanced an existing ABS transaction at meaningfully lower cost, and, subsequent to quarter-end, closed a new net lease warehouse facility at attractive terms. Our proven ability to optimize the right side of our balance sheet has allowed us to continuously invest across cylinders regardless of market environment."

Supplemental Schedules

The Company has published supplemental earnings schedules on its website in order to provide additional disclosure and financial information for the benefit of the Company's stakeholders.  Specifically, these materials can be found on the Company's website in the Investor Relations section under "Quarterly Results" at www.starwoodpropertytrust.com. 

Webcast and Conference Call Information

The Company will host a live webcast and conference call on Friday, May 8, 2026, at 10:00 a.m. Eastern Time.  To listen to a live broadcast, access the site at least 15 minutes prior to the scheduled start time in order to register, download and install any necessary audio software. The webcast is available at www.starwoodpropertytrust.com in the Investor Relations section of the website.  The Company encourages use of the webcast due to potential extended wait times to access the conference call via dial-in. 

To Participate via Telephone Conference Call:

Dial in at least 15 minutes prior to start time.
Domestic:  1-877-407-9039
International:  1-201-689-8470

Conference Call Playback:

Domestic:  1-844-512-2921
International:  1-412-317-6671
Passcode:  13758022

The playback can be accessed through May 22, 2026.

About Starwood Property Trust, Inc.

Starwood Property Trust (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is a leading diversified finance company with a core focus on the real estate and infrastructure sectors. As of March 31, 2026, the Company has successfully deployed over $117 billion of capital since inception and manages a portfolio of over $31 billion across debt and equity investments. Starwood Property Trust's investment objective is to generate attractive and stable returns for shareholders, primarily through dividends, by leveraging a premiere global organization to identify and execute on the best risk adjusted returning investments across its target assets. Additional information can be found at www.starwoodpropertytrust.com. 

Forward-Looking Statements

Statements in this press release which are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Forward-looking statements are developed by combining currently available information with our beliefs and assumptions and are generally identified by the words "believe," "expect," "anticipate" and other similar expressions.  Although Starwood Property Trust, Inc. believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained.  Factors that could cause actual results to differ materially from the Company's expectations include, but are not limited to, completion of pending investments and financings, continued ability to acquire additional investments, competition within the finance and real estate industries, availability of financing, and other risks detailed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, as well as other risks and uncertainties set forth from time to time in the Company's reports filed with the SEC, including its Quarterly Report on Form 10-Q for the quarter ended March 31, 2026.

In light of these risks and uncertainties, there can be no assurances that the results referred to in the forward-looking statements contained herein will in fact occur.  Except to the extent required by applicable law or regulation, we undertake no obligation to, and expressly disclaim any such obligation to, update or revise any forward-looking statements to reflect changed assumptions, the occurrence of anticipated or unanticipated events, changes to future results over time or otherwise.

Additional information can be found on the Company's website at www.starwoodpropertytrust.com. 

Contact:
Zachary Tanenbaum
Starwood Property Trust
Phone: 203-422-7788
Email: [email protected] 

Starwood Property Trust, Inc. and Subsidiaries
Condensed Consolidated Statement of Operations by Segment
For the three months ended March 31, 2026
(Amounts in thousands)

Commercial and

Residential

Lending

Segment

Infrastructure

Lending

Segment

Property

Segment

Investing

and Servicing

Segment

Corporate

Subtotal

Securitization

VIEs

Total

Revenues:

Interest income from loans

$               310,314

$       61,438

$        —

$       2,059

$        —

$  373,811

$           —

$  373,811

Interest income from investment securities

15,637

384

—

23,933

—

39,954

(34,516)

5,438

Servicing fees

112

—

—

51,619

—

51,731

(3,711)

48,020

Rental income

16,305

—

60,843

2,823

—

79,971

—

79,971

Other revenues

2,213

1,473

457

403

670

5,216

—

5,216

Total revenues

344,581

63,295

61,300

80,837

670

550,683

(38,227)

512,456

Costs and expenses:

Management fees

32

—

—

—

36,150

36,182

—

36,182

Interest expense

154,923

36,696

27,951

6,826

102,654

329,050

(144)

328,906

General and administrative

16,792

5,918

8,868

21,928

4,827

58,333

—

58,333

Costs of rental operations

13,216

—

7,260

2,658

—

23,134

—

23,134

Depreciation and amortization

4,237

10

28,078

1,150

251

33,726

—

33,726

Credit loss provision (reversal), net

586

(963)

—

—

—

(377)

—

(377)

Other expense

77

112

72

140

—

401

—

401

Total costs and expenses

189,863

41,773

72,229

32,702

143,882

480,449

(144)

480,305

Other income (loss):

Change in net assets related to consolidated VIEs

—

—

—

—

—

—

32,502

32,502

Change in fair value of servicing rights

—

—

—

1,004

—

1,004

(1,541)

(537)

Change in fair value of investment securities, net

451

—

—

(7,921)

—

(7,470)

7,559

89

Change in fair value of mortgage loans, net

(20,980)

—

—

8,312

—

(12,668)

—

(12,668)

Income from affordable housing fund investments

—

—

12,464

—

—

12,464

—

12,464

Earnings (loss) from unconsolidated entities

—

843

—

412

—

1,255

(437)

818

Gain on sale of investments and other assets, net

210

—

469

—

—

679

—

679

Gain (loss) on derivative financial instruments, net

16,363

89

2,276

242

(21,433)

(2,463)

—

(2,463)

Foreign currency (loss) gain, net

(6,115)

—

25

—

—

(6,090)

—

(6,090)

Loss on extinguishment of debt

—

(31)

(304)

—

—

(335)

—

(335)

Other (loss) income, net

(2,875)

51

(309)

—

—

(3,133)

—

(3,133)

Total other income (loss)

(12,946)

952

14,621

2,049

(21,433)

(16,757)

38,083

21,326

Income (loss) before income taxes

141,772

22,474

3,692

50,184

(164,645)

53,477

—

53,477

Income tax benefit (provision)

11,728

(50)

17

(7,750)

—

3,945

—

3,945

Net income (loss)

153,500

22,424

3,709

42,434

(164,645)

57,422

—

57,422

Net (income) loss  attributable to non-controlling interests

(3)

—

(6,827)

1,286

—

(5,544)

—

(5,544)

Net income (loss) attributable to Starwood Property Trust, Inc.

$               153,497

$       22,424

$    (3,118)

$      43,720

$  (164,645)

$   51,878

$           —

$   51,878

Definition of Distributable Earnings

Distributable Earnings, a non-GAAP financial measure, is used to compute the Company's incentive fees to its external manager and is an appropriate supplemental disclosure for a mortgage REIT.  For the Company's purposes, Distributable Earnings is defined as GAAP net income (loss) excluding non-cash equity compensation expense, the incentive fee due to the Company's external manager, acquisition costs for successful acquisitions, depreciation and amortization of real estate and associated intangibles, any unrealized gains, losses or other non-cash items recorded in net income (loss) for the period and, to the extent deducted from net income (loss), distributions payable with respect to equity securities of subsidiaries issued in exchange for properties or interests therein.  The amount is adjusted to exclude one-time events pursuant to changes in GAAP and certain other non-cash adjustments as determined by the Company's external manager and approved by a majority of the Company's independent directors.  Refer to the Company's Quarterly Report on Form 10-Q for the quarter ended March 31, 2026 for additional information regarding Distributable Earnings.

Reconciliation of Net Income to Distributable Earnings
For the three months ended March 31, 2026
(Amounts in thousands except per share data)

Commercial and

Residential

Lending

Segment

Infrastructure

Lending

Segment

Property

Segment

Investing

and Servicing

Segment

Corporate

Total

Net income (loss) attributable to Starwood Property Trust, Inc.

$           153,497

$             22,424

$            (3,118)

$            43,720

$          (164,645)

$             51,878

Add / (Deduct):

Non-controlling interests attributable to Woodstar II Class A Units

—

—

4,629

—

—

4,629

Non-controlling interests attributable to unrealized gains/losses

—

—

(1,307)

(4,745)

—

(6,052)

Non-cash equity compensation expense

3,084

752

1,995

1,425

6,738

13,994

Management incentive fee

—

—

—

—

5,567

5,567

Depreciation and amortization

4,273

—

28,574

1,192

—

34,039

Straight-line rent adjustment

—

—

(1,649)

114

—

(1,535)

Interest income adjustment for loans and securities

5,074

—

—

5,376

—

10,450

Consolidated income tax (benefit) provision associated with fair value adjustments

(11,728)

50

(17)

7,750

—

(3,945)

Other non-cash items

2

—

(82)

(406)

—

(486)

Reversal of GAAP unrealized and realized (gains) / losses on:

Loans

20,980

—

—

(8,312)

—

12,668

Credit loss provision (reversal), net

586

(963)

—

—

—

(377)

Securities

(451)

—

—

7,921

—

7,470

Woodstar Fund investments

—

—

(12,464)

—

—

(12,464)

Derivatives

(16,363)

(89)

(2,276)

(242)

21,433

2,463

Foreign currency

6,115

—

(25)

—

—

6,090

Earnings from unconsolidated entities

—

(843)

—

(412)

—

(1,255)

Sales of properties

(324)

—

(469)

—

—

(793)

Recognition of Distributable realized gains / (losses) on:

Loans

(368)

—

—

8,558

—

8,190

Securities

(86)

—

—

(5,254)

—

(5,340)

Woodstar Fund investments

—

—

18,821

—

—

18,821

Derivatives

12,635

31

(3,089)

276

(2,817)

7,036

Foreign currency

139

—

25

—

—

164

Earnings from unconsolidated entities

—

511

—

436

—

947

Sales of properties

(4,785)

—

(100)

—

—

(4,885)

Distributable Earnings (Loss)

$           172,280

$             21,873

$            29,448

$            57,397

$          (133,724)

$            147,274

Distributable Earnings (Loss) per Weighted Average Diluted Share

$              0.45

$               0.06

$              0.08

$              0.15

$             (0.35)

$               0.39

Starwood Property Trust, Inc. and Subsidiaries
Condensed Consolidated Balance Sheet by Segment
As of March 31, 2026
(Amounts in thousands)

Commercial and

Residential

Lending

Segment

Infrastructure

Lending

Segment

Property

Segment

Investing

and Servicing

Segment

Corporate

Subtotal

Securitization

VIEs

Total

Assets:

Cash and cash equivalents

$        44,239

$      125,331

$       33,521

$        6,001

$       81,193

$      290,285

$          —

$      290,285

Restricted cash

322,650

22,909

3,085

412

26,721

375,777

—

375,777

Loans held-for-investment, net

16,214,754

3,066,806

—

—

—

19,281,560

—

19,281,560

Loans held-for-sale

2,218,429

—

—

104,511

—

2,322,940

—

2,322,940

Investment securities

639,401

30,301

—

1,236,128

—

1,905,830

(1,597,627)

308,203

Properties, net

1,039,257

—

2,778,893

40,984

—

3,859,134

—

3,859,134

Investments of consolidated affordable housing fund

—

—

1,729,433

—

—

1,729,433

—

1,729,433

Investments in unconsolidated entities

8,514

58,840

—

33,316

—

100,670

(15,112)

85,558

Goodwill

—

119,409

—

140,437

—

259,846

—

259,846

Intangible assets, net

2,670

—

392,643

70,136

—

465,449

(38,794)

426,655

Derivative assets

24,074

—

—

219

7,958

32,251

—

32,251

Accrued interest receivable

168,183

8,160

—

218

847

177,408

—

177,408

Other assets

329,455

42,273

131,023

(15,547)

51,262

538,466

—

538,466

VIE assets, at fair value

—

—

—

—

—

—

32,399,812

32,399,812

Total Assets

$    21,011,626

$    3,474,029

$    5,068,598

$    1,616,815

$      167,981

$   31,339,049

$   30,748,279

$   62,087,328

Liabilities and Equity

Liabilities:

Accounts payable, accrued expenses and other liabilities

$       207,080

$       36,017

$      117,476

$       38,940

$      137,872

$      537,385

$          —

$      537,385

Related-party payable

—

—

—

—

33,708

33,708

—

33,708

Dividends payable

—

—

—

—

180,900

180,900

—

180,900

Derivative liabilities

63,970

—

—

—

15,460

79,430

—

79,430

Secured financing agreements, net

9,846,525

587,374

533,953

596,988

2,224,516

13,789,356

(19,780)

13,769,576

Securitized financing, net

1,874,602

1,809,126

1,398,169

—

—

5,081,897

—

5,081,897

Unsecured senior notes, net

—

—

—

—

4,287,646

4,287,646

—

4,287,646

VIE liabilities, at fair value

—

—

—

—

—

—

30,768,059

30,768,059

Total Liabilities

11,992,177

2,432,517

2,049,598

635,928

6,880,102

23,990,322

30,748,279

54,738,601

Temporary Equity: Redeemable non-controlling interests

—

—

357,487

—

—

357,487

—

357,487

Permanent Equity:

Starwood Property Trust, Inc. Stockholders' Equity:

Common stock

—

—

—

—

3,793

3,793

—

3,793

Additional paid-in capital

2,122,871

665,085

381,367

(941,857)

4,747,155

6,974,621

—

6,974,621

Treasury stock

—

—

—

—

(157,958)

(157,958)

—

(157,958)

Retained earnings (accumulated deficit)

6,885,579

376,427

2,074,321

1,802,916

(11,305,111)

(165,868)

—

(165,868)

Accumulated other comprehensive income

10,881

—

—

—

—

10,881

—

10,881

Total Starwood Property Trust, Inc. Stockholders' Equity

9,019,331

1,041,512

2,455,688

861,059

(6,712,121)

6,665,469

—

6,665,469

Non-controlling interests in consolidated subsidiaries

118

—

205,825

119,828

—

325,771

—

325,771

Total Permanent Equity

9,019,449

1,041,512

2,661,513

980,887

(6,712,121)

6,991,240

—

6,991,240

Total Liabilities and Equity

$    21,011,626

$    3,474,029

$    5,068,598

$    1,616,815

$      167,981

$   31,339,049

$   30,748,279

$   62,087,328

SOURCE Starwood Property Trust, Inc.

Starwood Property Trust, Inc. (STWD) Q1 2026 Earnings Call Transcript

Key Takeaways STWD shares fell about 1.7% after Q1 2026 distributable EPS of 39 cents missed the estimate of 42 cents.STWD revenue rose 22.5% year over year and topped estimates, but expenses climbed 25%.STWD reported BVPS down 4.7% and net income fell 53.7%, while fundings rose to $2.3B. Shares of Starwood Property Trust, Inc. (STWD - Free Report) lost nearly 1.7% in Friday’s trading session on lower-than-expected quarterly results. The company reported first-quarter 2026 distributable earnings of 39 cents per share, which missed the Zacks Consensus Estimate of 42 cents. The reported figure also compares unfavorably with 45 cents per share in the year-ago quarter.

Results were primarily affected by a decrease in book value per share (BVPS) and an increase in expenses. Nevertheless, a year-over-year rise in revenues supported the results to some extent.

The company’s first-quarter 2026 net income (GAAP basis) was $51.9 million, which declined 53.7% year over year.

Inside Starwood Property’s HeadlinesSTWD’s total revenues were $512.4 million, up 22.5% year over year.  Also, the top line surpassed the Zacks Consensus Estimate by 6.6%.

Total costs and expenses were $480.3 million, up 25% from the prior-year quarter. The increase was primarily driven by higher interest expense, general and administrative costs, rental operations costs and depreciation and amortization.

Starwood Property’s BVPS (GAAP basis) was $17.98 as of March 31, 2026, down 4.7% from $18.87 in the prior-year quarter.

The company recorded fundings of $2.3 billion, which increased from $2 billion in the prior-year quarter.

Starwood Property’s Balance Sheet PositionAs of March 31, 2026, cash and cash equivalents were $290.3 million, down 41.9% from the prior quarter.

Loans held for sale totaled $2.3 billion, reflecting a marginal decline from the prior quarter.

Our Take on STWDStarwood Property’s focus on commercial mortgage-backed securities and commercial real estate debt investments continues to provide stable income streams. Its ongoing efforts in property acquisitions and divestitures should support portfolio diversification and long-term resilience. However, the decline in BVPS, despite higher revenues, indicates near-term pressure on profitability.

STARWOOD PROPERTY TRUST, INC. Price, Consensus and EPS SurpriseSTWD currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other REITsAnnaly Capital Management, Inc. (NLY - Free Report) reported first-quarter 2026 earnings available for distribution per average share of 76 cents, which beat the Zacks Consensus Estimate of 74 cents. The figure increased from 72 cents in the year-ago quarter.

NLY’s net interest income and net interest margin improved year over year in the reported quarter. Notably, the year-over-year increase in book value per common share was also encouraging. However, a lower economic capital ratio was concerning.

AGNC Investment Corp. (AGNC - Free Report) reported first-quarter of 2026 net spread and dollar roll income per common share of 42 cents, topping the Zacks Consensus Estimate by 16.7%. However, the metric declined 4.5% from the year-ago quarter’s 44 cents.

AGNC’s results benefited from rallies in average asset yield and NII. Also, a rise in tangible net book value per common share in the portfolio was positive. However, a reduced net interest spread and a higher weighted average cost of funds were concerning.

, /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) (the "Company") today announced that it has priced its private offering of $600 million aggregate principal amount of its 6.125% unsecured senior notes due 2031 (the "Notes"). The Notes priced at 100.0% of the principal amount and the settlement of the offering is expected to occur on May 26, 2026, subject to customary closing conditions.

The Company intends to allocate an amount equal to the net proceeds from the offering to finance or refinance, in whole or in part, recently completed or future eligible green and/or social projects. Net proceeds allocated to previously incurred costs associated with eligible green and/or social projects will be available for the repayment of indebtedness previously incurred. Pending full allocation of an amount equal to the net proceeds to eligible green and/or social projects, the Company intends to use the net proceeds to redeem or repay the Company's $400 million outstanding aggregate principal amount of 3.625% Senior Notes due 2026 and for general corporate purposes, including the repayment of outstanding indebtedness under the Company's repurchase facilities.

The Notes were offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and non-U.S. persons outside the United States pursuant to Regulation S under the Securities Act. The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from the registration requirements of the Securities Act or any state securities laws.

This press release does not constitute a notice of redemption for the 3.625% Senior Notes due 2026. This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Starwood Property Trust, Inc.

Starwood Property Trust (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is a leading diversified finance company with a core focus on the real estate and infrastructure sectors. As of March 31, 2026, the Company has successfully deployed over $117 billion of capital since inception and manages a portfolio of over $31 billion across debt and equity investments. Starwood Property Trust's investment objective is to generate attractive and stable returns for shareholders, primarily through dividends, by leveraging a premiere global organization to identify and execute on the best risk adjusted returning investments across its target assets.

Forward-Looking Statements

Statements in this press release which are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, including statements with respect to the anticipated settlement of the offering and the use of proceeds. Although the Company believes the expectations reflected in any forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from the Company's expectations include: (i) factors described in the Company's Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2026, including those set forth under the captions "Risk Factors", "Business", and "Management's Discussion and Analysis of Financial Condition and Results of Operations"; (ii) defaults by borrowers in paying debt service on outstanding indebtedness; (iii) impairment in the value of real estate property securing the Company's loans or in which the Company invests; (iv) availability of mortgage origination and acquisition opportunities acceptable to the Company; (v) potential mismatches in the timing of asset repayments and the maturity of the associated financing agreements; (vi) national and local economic and business conditions, including as a result of the impact of public health emergencies; (vii) the occurrence of certain geo-political events (such as wars, terrorist attacks and tensions between states, including global trade disputes related to tariffs) that affect the normal and peaceful course of international relations; (viii) general and local commercial and residential real estate property conditions; (ix) changes in federal government policies; (x) changes in federal, state and local governmental laws and regulations; (xi) increased competition from entities engaged in mortgage lending and securities investing activities; (xii) changes in interest rates; and (xiii) the availability of, and costs associated with, sources of liquidity.

Contact:

Zachary Tanenbaum
Starwood Property Trust
Phone: 203-422-7788
Email: [email protected]

SOURCE Starwood Property Trust, Inc.

Starwood Property Trust, Inc. continues to under-earn its dividend, with coverage dropping to 81% in Q1'26, raising concerns about dividend sustainability. Despite strong new loan originations, especially in commercial and infrastructure lending, STWD's earnings appear insufficient to support its $0.48 per-share quarterly dividend. STWD now exhibits the weakest dividend coverage trajectory among major CRE finance REIT peers, with three of the last four quarters showing worsening coverage.

The Dividend Harvesting Portfolio surpassed $3,000 in forward dividend income, achieving a 7.82% yield and 41.58% return on invested capital. I am capitalizing on rate-sensitive opportunities, notably adding to Starwood Property Trust (STWD) at an 11.27% yield amid market overreaction to rate hike fears. Portfolio discipline remains: no position exceeds 5% or sector 20%, with a focus on diversifying beyond ETFs and REITs toward individual equities and energy.

Is STWD's 11.2% decline an opportunity or a warning amid rising expenses, weak liquidity and commercial real estate headwinds? Let us discuss.

The average dividend yield is pretty paltry these days. The S&P 500 recently hit its lowest yield on record at around 1%. That's making it harder for investors to find attractive stocks to buy for generating dividend income.

However, there are still some compelling income opportunities. Here are three dividend stocks with monster yields to buy this June.

Image source: Getty Images.

Ares Capital Ares Capital (ARCC +0.05%) is a business development company (BDC). As a result, it needs to distribute 90% of its taxable net income to investors via dividends to remain in compliance with IRS regulations. That required payout ratio is why the BDC currently offers a monster 10.2% yield.

A dividend yield in the double digits is often a sign of a higher risk profile. While Ares Capital is certainly a higher-risk dividend stock, its dividend has proven to be very durable over the years. Ares has delivered a stable-to-growing dividend for more than 16 consecutive years.

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Ares is currently generating more than enough income to cover its current dividend level of $0.48 per share each quarter. For example, it generated $0.47 per share of core earnings in the first quarter, along with $0.15 per share of net realized gains, bringing the combined total well above the dividend payment. Additionally, Ares estimated that it carried forward $1.38 per share of excess taxable income from last year for distribution in 2026, giving it a sizable buffer. Add in its strong financial profile, a more stable interest rate environment, and solid credit performance across its portfolio, and Ares believes the "current dividend approximates the long-run underlying earnings power of our business," stated CEO Kort Schnabel on the first-quarter conference call.

Energy Transfer Energy Transfer (ET 0.10%) is a master limited partnership (MLP), an entity that sends a Schedule K-1 Federal tax form each year. MLPs are pass-through entities that typically distribute a meaningful percentage of their cash flow to investors each year. That's why the pipeline company currently yields 7%.

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The MLP generated $2.7 billion of distributable cash flow in the first quarter, easily covering the nearly $1.2 billion it distributed to investors. Energy Transfer retained the remaining cash to reinvest in the partnership. The pipeline company currently plans to invest between $5.5 billion and $5.9 billion in organic expansion projects this year, including pipeline expansions, gas processing plants, and other midstream energy infrastructure. The company currently has projects underway that should enter commercial service through 2030.

Those expansions should give Energy Transfer the fuel to continue growing its high-yielding distribution, which it has done every year since resetting its payout level in 2020 to strengthen its financial profile. The MLP is in the strongest financial position in its history, further supporting its plan to increase its payout by 3% to 5% each year.

Starwood Property Trust Starwood Property Trust (STWD 0.41%) is a real estate investment trust (REIT) primarily focused on commercial mortgage investments. REITs, like BDCs, must distribute at least 90% of their taxable net income to investors via dividends. That's why Starwood currently offers an 11.2% dividend yield.

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The REIT's focus is on providing investors with a secure dividend. Starwood has never cut its dividend and has maintained its current quarterly rate of $0.48 per share for over a decade. While Starwood's distributable earnings were below the dividend in the first quarter ($0.39 per share), it has $3.87 per share of unrealized distributable earnings from property gains to support the dividend.

Starwood has also steadily diversified its business over the years to enhance the sustainability of its dividend. In addition to investing in commercial mortgages, Starwood also invests in residential mortgages and infrastructure-backed loans and owns a growing real estate portfolio. Last year, Starwood bought Fundamental Income Properties for $2.2 billion, adding a net lease real estate investment platform to its portfolio. Net-leased real estate provides durable, growing rental income, which will help support Starwood's dividend (Fundamental's portfolio had a 17-year weighted-average lease term and 2.2% average annual rent escalations).

Boost your dividend income in June Ares Capital, Energy Transfer, and Starwood Property all currently offer monster dividend yields. They have done a solid job of sustaining their dividends over the years, which should continue. That makes them enticing dividends stocks for more risk-tolerant investors to buy this June to bolster their dividend income.

– Company Has Won Nareit's Gold Investor CARE Award in the Mortgage REIT Category 10 Times Since the Category's Introduction in 2014 –

, /PRNewswire/ -- Starwood Property Trust, Inc. (NYSE: STWD) (the "Company") today announced that it has received the 2026 Nareit Gold Investor CARE (Communications & Reporting Excellence) Award in the mortgage REIT category. The award, which recognizes excellence in shareholder communications and investor engagement, is presented annually to a single recipient in each category.

This marks the 10th time that Starwood Property Trust has received the award since Nareit introduced the mortgage REIT category in 2014.

"We are honored to again be recognized by Nareit for our commitment to transparency, accessibility and high-quality investor engagement," said Barry Sternlicht, Chairman and Chief Executive Officer of Starwood Property Trust. "Providing shareholders with clear and thoughtful disclosure has always been central to our philosophy. We believe our disciplined approach, combined with direct engagement with investors and analysts, helps foster long-term trust and confidence in our platform."

Jeffrey DiModica, President of Starwood Property Trust, added, "The consistency with which we have earned this recognition reflects the strength of our investor relations efforts across market cycles. We remain committed to providing timely, transparent and thoughtful communication to all of our stakeholders as we continue to grow and evolve our diversified platform."

The Nareit Investor CARE Awards recognize listed REITs that demonstrate excellence in communicating and reporting to shareholders, with judging criteria spanning investor presentations, SEC filings, earnings calls, corporate websites and overall investor relations practices.

This recognition follows another recent industry honor, as Starwood Property Trust was also named Mortgage REIT of the Year by PERE Credit as part of the publication's 2025 PERE Credit Awards, which recognize leading firms and transactions across the real estate private credit industry.

About Starwood Property Trust, Inc.

Starwood Property Trust (NYSE: STWD), an affiliate of global private investment firm Starwood Capital Group, is a leading diversified finance company with a core focus on the real estate and infrastructure sectors. As of March 31, 2026, the Company has successfully deployed over $117 billion of capital since inception and manages a portfolio of over $31 billion across debt and equity investments. Starwood Property Trust's investment objective is to generate attractive and stable returns for shareholders, primarily through dividends, by leveraging a premiere global organization to identify and execute on the best risk adjusted returning investments across its target assets. Additional information can be found at www.starwoodpropertytrust.com.

Contact:
Starwood Property Trust
Phone: 203-422-7788
Email: [email protected] 

SOURCE Starwood Property Trust, Inc.

Posted by Defense World Staff on Apr 14th, 2026

APN Resources N.V. (LON:APN – Get Free Report) insider Marnie Jane Millard acquired 13,257 shares of the business’s stock in a transaction on Monday, April 13th. The shares were purchased at an average cost of GBX 225 per share, for a total transaction of £29,828.25.

APN Resources Price Performance APN opened at GBX 226.53 on Tuesday. The company has a market capitalization of £566.32 million and a price-to-earnings ratio of 26.97. The firm’s fifty day moving average price is GBX 231.65 and its two-hundred day moving average price is GBX 214.48. APN Resources N.V. has a 1 year low of GBX 107.78 and a 1 year high of GBX 261.

APN Resources (LON:APN – Get Free Report) last released its earnings results on Monday, March 23rd. The company reported GBX 6.20 EPS for the quarter.

Analyst Ratings Changes A number of equities research analysts have recently commented on APN shares. Peel Hunt reiterated a “hold” rating and set a GBX 210 target price on shares of APN Resources in a research note on Friday, December 19th. Berenberg Bank restated a “buy” rating and issued a GBX 290 price objective on shares of APN Resources in a research note on Monday, March 23rd. Finally, Canaccord Genuity Group restated a “buy” rating and issued a GBX 315 price objective on shares of APN Resources in a research note on Monday, March 23rd. Three investment analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company. According to data from MarketBeat, APN Resources presently has an average rating of “Moderate Buy” and an average target price of GBX 251.25.

View Our Latest Research Report on APN Resources

About APN Resources (Get Free Report)

Applied Nutrition plc (LSE: APN) is a leading sports nutrition, health and wellness brand, which formulates and creates nutrition products with a stated aim of being the world’s most trusted and innovative brand in the market.

Headquartered in the UK, the Group sells products in over 85 countries worldwide and has a diverse product range, targeting elite athletes, gym goers and health-conscious consumers. Applied Nutrition has developed and launched four ranges under the umbrella of the Applied Nutrition brand – Applied Nutrition, ABE, BodyFuel, and Endurance.

Further Reading Five stocks we like better than APN Resources Receive News & Ratings for APN Resources Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for APN Resources and related companies with MarketBeat.com's FREE daily email newsletter.

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Despite the decline, the stock has surged over 800% from its list price of $5.

Shares of Swarmer soared dramatically in their market debut, jumping as much as 700% intraday before closing up 520% at $31, a Bloomberg report noted.

Swarmer IPO Raised $15 MillionSwarmer’s IPO priced at $5 per share, raising about $15 million, with proceeds aimed at hiring and product development.

The company has already deployed its technology in combat operations, completing over 100,000 missions since April 2024, generating substantial proprietary data.

In addition, the Pentagon’s push for mass production of a one-way attack drone has heightened interest in companies like Swarmer, which focus on AI-driven military solutions. This trend underscores a broader shift towards scalable, cost-effective weapons systems in modern warfare.

Bloomberg report further added that Swarmer’s strong debut comes as investors increasingly focus on defense technology, particularly software-driven autonomous systems used in modern warfare.

The sector has gained traction amid rising geopolitical tensions and increased global military spending, with U.S. defense stocks extending gains into 2026 following a strong performance last year.

SWMR Stock Price Activity: Swarmer shares were down 12.73% at $48.00 on Thursday, according to Benzinga Pro data.

Image via Shutterstock

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Since its market debut on Tuesday, the stock price for tech defense company Swarmer (SWMR 6.39%) has skyrocketed.

With an initial public offering price of $5, the shares opened trading at $12.50 on Tuesday, then climbed to $31 by the end of the day. After that, shares kept climbing, opening at $53 on Thursday. As of midday on Friday, the stock was changing hands at about $45.30 -- well below its peak of $65.04, but still up impressively over the course of the week.

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In the wake of all this early excitement, it's important for anyone who is considering buying shares to not do so based on hype alone. Here are three key things to keep in mind.

No. 1: Swarmer is a software company, not a hardware company Swarmer emphasizes that it is a software company with a product that can be used for unmanned systems, but that it is not a drone manufacturer.

It believes that gives it a distinct advantage as a supplier within an increasingly competitive and fragmented drone manufacturing market, as the capabilities of its licensed software can provide manufacturers with an edge in securing contracts.

Speaking of that software, the company says its platform has been used in over 100,000 real-world missions in Ukraine, providing data and feedback that can be used to fine-tune performance and deepen operational intelligence.

No. 2: It's still an early-stage company Swarmer is not for risk-averse investors.

Image source: Getty Images.

Its revenue was nearly $310,000 in 2025, down from roughly $329,000 in 2024. Losses, however, grew. In 2024, Swarmer had a net loss of $2 million. In 2025, that jumped to $8.5 million.

It's also dependent on a small number of customers, which is a risky position. Losing one key client could significantly harm the business. Anyone considering making an investment will want to keep an eye on any announcements of new contracts, and watch to see if it can expand its client base in the coming quarters.

No. 3: All its revenues so far have been international Swarmer has noted that in 2024 and 2025, all of its revenues were from "non-U.S. operations in Ukraine." That makes its finances particularly susceptible to foreign currency fluctuations and to geopolitical and economic issues.

"Our value and stock price could also be adversely affected by illegal activities by others, corruption or by claims, even if groundless, implicating us in illegal activities," the company said in its IPO filing.

The next move Initial public offerings are just like any other investment in that everyone considering putting their money into one should understand what they are buying.

Before making a decision about a recently debuted stock, it's worth taking the time to read the company's S-1 filing on SEC.gov, which lays out all the details.

Even with the stock price rocketing higher over the last few days, remember that Swarmer's revenue was roughly $310,000 last year. Investors still have plenty of time to consider whether this company is worth a small, speculative investment.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

© sezer66 / Shutterstock.com

A $15 million IPO just spawned a ~$679 million company in two days, an almost unheard of scenario. Swarmer (NASDAQ:SWMR), a Ukrainian drone-autonomy software firm (now headquartered in Austin, Texas), closed its trading debut up 520% at $31 on March 18 after surging as much as 700% intraday, triggering multiple trading halts. By the following session, shares had climbed further to $55. The draw: an AI platform deployed across more than 100,000 real-world combat missions in Ukraine since April 2024, with Blackwater founder Erik Prince as non-executive chairman.

A $680M Valuation on $310K in Revenue The financial reality is stark, as Swarmer reported revenue of $309,920 for the year ended December 31, 2025, a figure that declined roughly 6% from the prior year. Its net loss widened to approximately $8.5 million, more than four times the 2024 loss, and its price-to-sales ratio sits at 292x, with an EV-to-revenue multiple of 2,161x. There are no earnings, no analyst coverage, and no sector classification in any financial database.

Reddit’s r/stocks community has centered on one thread titled “Swarmer Stock Surges 520% in Trading Debut. It’s One of the Most Spectacularly Mispriced IPOs.”, from user Every-Actuator-6996, which accumulated 128 upvotes and 53 comments with a 92% upvote ratio over 24 hours. Sentiment scores ranged from 62 to 82, settling at 71.

This infographic details Swarmer’s investment profile, its social sentiment score of 71 (BULLISH) from Reddit, and the factors influencing its market perception, including the ‘Palantir of Drones’ narrative. It highlights the company’s financials and Erik Prince’s involvement. “It’s One of the Most Spectacularly Mispriced IPOs.” — u/Every-Actuator-6996, r/stocks Swarmer Stock Surges 520% in Trading Debut. It’s One of the Most Spectacularly Mispriced IPOs.
by u/Every-Actuator-6996 in stocks The thread title uses the word “mispriced,” suggesting retail investors are speculating with open eyes. Three factors driving the excitement:

Swarmer’s AI platform has real combat validation, with over 100,000 missions in active Ukraine conflict zones, a proof point few defense startups can claim at IPO Erik Prince’s involvement lends instant name recognition in defense circles, regardless of whether it translates to contracts Rising geopolitical tensions and growing military budgets globally are creating a tailwind narrative that makes any drone-adjacent story easy to hype What the Real Drone Sector Looks Like Ultimately, in Swarmer’s case, AeroVironment (NASDAQ:AVAV | AVAV Price Prediction) is the reality check. With $1.6 billion in trailing revenue and a $10.8 billion market cap, it trades at a price-to-sales ratio of roughly 7x. Even at that scale, AeroVironment just posted a $156.6 million net loss driven by a goodwill impairment after losing a major U.S. Space Force contract, and its stock is down 13% year to date. Executing in defense tech is hard, even for companies with decades of government relationships.

The “Palantir of Drones” label references Palantir Technologies (NASDAQ:PLTR), which trades at 81x price-to-sales on $4.5 billion in annual revenue. Swarmer’s 292x multiple dwarves, even that, which means that the combat deployment story is real. Whether it becomes a business is an entirely different question investors will have to wait and see. 

Its net loss widened to approximately $8.5 million, compared to a smaller loss in 2024.

Data Sources

Swarmer IPO debut performance, revenue, and net loss figures sourced from MarketWatch/Yahoo Finance coverage of the March 18, 2026 trading debut Reddit thread data from r/stocks post by u/Every-Actuator-6996 (post ID: 1rwtwjr) AeroVironment fundamental data from Alpha Vantage OVERVIEW endpoint Palantir fundamental data from Alpha Vantage OVERVIEW endpoint

The U.S. defense and aerospace industry might not be the most exciting place for technology investors to park their money. Many of the country's major military contractors are large, established businesses that arguably don't have much room for expansion. And the industry hasn't kept up with other opportunities, such as generative artificial intelligence (AI).

That said, things are starting to change as a new generation of military contractors starts to blur the lines between defense and tech. AI and autonomous drone specialist Swarmer (SWMR 6.39%) seems to fit into this category. 

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Why Swarmer? Swarmer got its start in 2023 after Russia's invasion of Ukraine, when Ukrainian defenders needed a way to counteract their opponent's advantages in firepower. The company's solutions are designed to enable a single operator to control dozens or even hundreds of unmanned aircraft in combat operations.

Instead of manufacturing its own drones, Swarmer takes a software-led approach; its technology is designed to be installed in third-party hardware. This means it isn't restricted to use with any particular drone platform. It is also innovative -- pioneering methods for avoiding drone countermeasures such as GPS jamming.

Despite being a relatively new company, Swarmer is far from an unproven start-up. Its technology has been extensively battlefield tested with more than 100,000 real-world missions. This characteristic could give it credibility and a strong economic moat as it seeks to scale up its business model and find additional clients in militaries outside Ukraine.

Its expansion efforts come at an opportune time, as the U.S. government is seeking to expand the nation's military industrial base and pivot to next-generation systems.

The Iran war has also put a fresh spotlight on the power of these new methods of warfare. While individual drones can be intercepted fairly easily, swarms of them can overwhelm air defense systems, allowing some to hit their targets. Furthermore, with an estimated price tag of just $40,000 per unit, combat drones offer tremendous cost advantages over traditional missiles, which can cost over $4 million each.

The hype may exceed the reality

Image source: Getty Images.

Swarmer completed its initial public offering on March 17, selling 3 million shares at a starting price of $5. The market's reaction was explosive -- shares surged 13-fold over the following week to just over $65 before falling back toward $25. In recent days, though, they've been climbing again. As of the close on Tuesday, the shares were changing hands at $47.20.

When we dig deeper into Swarmer's financial situation, it's easy to see why there's been so much variance in the share price: All the action is speculative at this point. 

The company's current market cap is around $580 million. But its 2025 revenue was a mere $309,920 -- and that was actually down roughly 6% from 2024. Moreover, despite it being a software-led company, its gross margins are surprisingly modest at just under 39%.

To be fair, Swarmer is a very young company, and these types of issues often get worked out as a start-up increases its scale. That said, it can also be argued that the company went public far too soon to be an attractive investment. In 2025, its operating losses soared by over 300% to $5.1 million, and the company has no clear pathway to profitability.

While the $15 million it raised from its IPO will help it in the short term, investors should expect the company to eventually turn to debt financing or secondary stock sales to raise money to fund its operations. That sort of equity dilution reduces current investors' claims on whatever future earnings a company might bring in, which is why it can cause a stock to sink.

A good idea doesn't always make a good investment Swarmer's drone swarm technology is coming to market at an opportune time, as the U.S. and other countries are pivoting toward next-generation war-fighting technologies. But investors should strongly avoid the stock until there is more information about whether its growth prospects can catch up to its valuation, and until it demonstrates the potential to bring its massive cash burn under control.

Appointment supports global expansion of battlefield-proven autonomous drone software platform following more than 100,000 combat missions in Ukraine April 24, 2026 08:30 ET  | Source: Swarmer

KYIV, Ukraine, April 24, 2026 (GLOBE NEWSWIRE) -- Swarmer, Inc (“Swarmer” or the “Company”) (Nasdaq: SWMR), a drone autonomy software company, announced today the appointment of Mykhailo Nestor as chief product officer. In this role, Nestor will lead product strategy and development of Swarmer's software platform, which has supported more than 100,000 real-world combat missions in Ukraine since April 2024.

Nestor’s appointment comes as Swarmer expands into allied defense markets, where demand is growing for software that coordinates autonomous systems, including swarm coordination, multi-domain integration, AI-powered collaborative autonomy and command-and-control for distributed robotic operations.

“Mykhailo has spent his career building software infrastructure at an impressive scale and is the right person to lead our product team,” said Swarmer’s Global CEO Serhii Kupriienko. “Swarmer’s software operates across multiple hardware platforms and domains in some of the most demanding environments on earth. We believe that Mykhailo’s experience and leadership will be invaluable as we expand into new markets, like counter-UAS and smaller, more attritable UAS systems.”

Nestor joins Swarmer from Kyivstar Group Ltd., a part of the global telecommunications group VEON Ltd. At Kyivstar, Ukraine's largest digital operator with a market capitalization of approximately $2.8 billion, Nestor served as chief product officer and board member for seven years. During his tenure, he built and led the product organization responsible for large-scale digital platforms and services used by millions of customers. He also helped establish Kyivstar.Tech, a dedicated technology company focused on modern digital product development.

Prior to Kyivstar, Nestor held leadership roles across the product and technology sectors. He served as a product leader at Creatio, where he worked on enterprise customer relationship management and process automation products, and founded the startup LifeTracker.io. Earlier in his career, he helped build Havas Digital, where he led digital marketing, production and technology projects for major international and regional companies.

“Drone warfare is the most dynamic and unforgiving technology space today,” said Nestor. “Autonomy, AI and real-world constraints collide and decisions are tested immediately, not in theory. Swarmer’s software is mature, proven in live operational conditions and designed to scale across platforms and scenarios. What excites me is not just what’s been built already, but what comes next: turning battlefield-proven systems into a new class of adaptive, distributed software products that will define how interceptors, attack drones, unmanned surface vessels and other complex machines operate in the real world.”

About Swarmer

Swarmer™ is a defense technology company that specializes in vendor-agnostic technologies that address critical operational challenges faced by modern military forces. Swarmer’s primary mission areas include autonomous swarm coordination, multi-domain unmanned systems integration, AI-powered collaborative autonomy, and command and control software for distributed operations. The company’s primary customer base consists of drone manufacturers who license Swarmer’s software for integration with their hardware platforms. Swarmer’s technology has been rigorously validated in real-world kinetic environments and was first deployed in combat operations in Ukraine in April 2024. Since then, it has completed more than 100,000 combat missions, generating terabytes of proprietary data that informs its machine-learning models and enables the replication of advanced pilot performance at scale. With headquarters in Austin, Texas, Swarmer has offices in the U.S., Ukraine, Poland and Estonia.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements in this release include, but are not limited to, statements regarding: the expected contributions of Mykhailo Nestor as chief product officer; the Company's plans to expand into new markets, including counter-UAS and attritable UAS systems; the anticipated scaling of the Company's technology and software platform; and the Company's future product development and growth strategy. These statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated.

Factors that could cause actual results to differ materially from those expressed or implied by forward-looking statements include, but are not limited to: the Company's ability to attract and retain key personnel, including members of its executive leadership team; challenges associated with entering new markets, including the counter-UAS and attritable UAS sectors; competition in the defense technology sector; the Company's reliance on government contracts and the associated procurement processes; geopolitical conditions affecting operations in Ukraine and other regions; and other risks and uncertainties described in the Company's filings with the Securities and Exchange Commission.

The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by applicable law.

Investor Relations Contact: [email protected]

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AUSTIN, Texas, April 30, 2026 (GLOBE NEWSWIRE) -- Swarmer, Inc (“Swarmer”) (Nasdaq: SWMR), a drone autonomy software company which has supported more than 100,000 real-world combat missions in Ukraine since April 2024, will hold a conference call and webcast on Wednesday, May 13, 2026, at 9:00 a.m. Eastern time (6:00 a.m.

Four companies will combine detection, targeting and autonomous intercepting technologies to counter aerial and maritime threats at lower cost May 12, 2026 08:00 ET  | Source: Swarmer

AUSTIN, Texas, May 12, 2026 (GLOBE NEWSWIRE) -- Swarmer, Inc. (NASDAQ: SWMR), a drone autonomy software company which has supported more than 100,000 real-world combat missions in Ukraine since April 2024, today announced a collaboration with three other battle-proven companies to provide an end-to-end solution to intercept unmanned threats at a fraction of the cost of surface-to-air missiles currently being used for site defense.

Through memorandums of understanding, Swarmer will lead the integration of detection, counter-drone and targeting systems provided by X-Drone, Norda Dynamics and Kara Dag Technologies into its advanced collaborative autonomy platform. These partnerships will aim to create a turnkey service to defend against Group 1-3 unmanned aerial vehicles and unmanned surface vessels up to eight meters in length.

“Interception is a complex process that requires detection, coordination, terminal guidance and kinetic engagement,” said Erik Prince, Non-Executive Chairman of Swarmer. “An end-to-end interception stack requires multiple products integrated with a single software platform. I believe that site defense can one day be offered as a service with a standardized, replicable, container-sized product kit that can be transported to any location and deployed in 24 hours or less.”

In March, Swarmer became the first defense technology company from Ukraine’s defense ecosystem to complete an initial public offering on the Nasdaq stock exchange. Swarmer’s primary mission areas include autonomous swarm coordination, multi-domain unmanned systems integration, AI-powered collaborative autonomy and command and control software for distributed drone operations.

“We are seeing an urgent demand for rapid interceptor solutions across the globe,” said Alex Fink, President and U.S. CEO of Swarmer. “Swarmer’s software platform is hardware-agnostic and designed to make multiple systems interoperable. It enables a shift from fixed one-to-one targeting to large, coordinated swarms that can engage a swarm of incoming threats and even reassign targets in midair.”

X-Drone is a Ukrainian company focused on next-generation AI drone technologies. Its product line includes multiple types of drones and drone-based interceptors, and it has delivered more than 70,000 unmanned systems to the front lines.

“We believe that unpiloted interceptors are the future,” said an X-Drone spokesperson. “Our interceptor platform has demonstrated a proven ability to take down Shahed-type drones for 1/400th the cost of a Patriot missile.”

Norda Dynamics is a Ukrainian provider of terminal guidance and navigation software. Its Underdog system has been deployed on more than 60,000 attritable drones used by Ukraine’s armed forces.

“We have a proven track record of hitting moving vehicles in a wide variety of weather and visibility conditions,” said Nazar Bigun, Norda Dynamics’ CEO. “Maritime threats and slower-moving Group 1 aerial threats are next in line. Our software transforms any fast-moving FPV-type drone into an autonomous interceptor for UGVs, USVs and slower-moving Group 1 UAS.”

Kara Dag Technologies is a Ukrainian provider of portable RF detectors, acoustic detectors and mesh triangulation software. It has deployed more than 3,000 detector units to the Ukrainian military.

“Radar systems are large, expensive and serve as easy targets for the enemy,” said a Kara Dag spokesperson. “Our approach distributes the detection process across dozens of small nodes, achieving the same accuracy as an expensive radar system without a single point of failure.”

Together, the companies aim to create an integrated end-to-end system that can intercept aerial, marine and ground-based threats without the need for a human pilot.

About Swarmer

Swarmer™ is a defense technology company that specializes in vendor-agnostic software which allows one operator to intuitively control hundreds of autonomous platforms in real time. Swarmer’s primary mission areas include autonomous swarm coordination, integration of multi-domain unmanned systems and AI-powered autonomy software for distributed operations. Swarmer is not a drone manufacturer and does not depend on any single platform, supplier or hardware lifecycle. Instead, Swarmer operates at the intelligence layer, developing autonomy, coordination and decision-making software that enables large numbers of low-cost unmanned systems to operate collectively as one coherent, resilient force. Swarmer’s technology has been rigorously validated in real-world kinetic environments and was first deployed in combat operations in Ukraine in April 2024. Since then, it has completed more than 100,000 combat missions, generating terabytes of proprietary data that informs its machine-learning models and enables the replication of advanced pilot performance at scale. Swarmer’s routine use in combat missions generates continuous streams of telemetry, sensor data and operational feedback which are then used to refine performance, increase resilience and accelerate learning. Swarmer has headquarters in Austin, Texas, and maintains operations and teams in Ukraine, Poland and Estonia.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements include statements that are not historical facts and may be identified by words such as “aim,” “anticipate,” “believe,” “can,” “could,” “design,” “expect,” “intend,” “may,” “plan,” “potential,” “seek,” “should,” “will,” “would” and similar expressions.

Forward-looking statements in this press release include, but are not limited to, statements regarding the anticipated collaboration between Swarmer, X-Drone, Norda Dynamics and Kara Dag Technologies; the parties’ ability to develop, integrate, test, validate, deploy, scale or commercialize an end-to-end drone interceptor solution; the potential creation of a turnkey site-defense service or standardized, replicable, container-sized product kit; the potential deployment of any such solution within 24 hours or less; the potential ability of any integrated solution to intercept aerial, marine or ground-based threats without a human pilot; anticipated cost, performance, interoperability, autonomy, targeting, detection, terminal guidance or counter-drone capabilities; the potential use of Swarmer’s platform with third-party hardware, software, sensors, communications systems and unmanned systems; the expected benefits of the memorandums of understanding and related collaboration; and Swarmer’s broader product development, commercialization, growth and defense market strategy.

These forward-looking statements are based on current expectations, estimates, assumptions and beliefs and are subject to risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements. These factors include, but are not limited to: the non-binding nature of the memorandums of understanding; the parties’ ability to negotiate and enter into definitive agreements on acceptable terms, or at all; the parties’ ability to allocate technical, operational, commercial, intellectual property, support, liability and compliance responsibilities; the ability to integrate third-party communications, detection, targeting, terminal guidance, counter-drone, unmanned systems and related technologies into Swarmer’s platform; technical, interoperability, cybersecurity, testing, qualification, safety, reliability and field-performance challenges; delays, cost increases or performance limitations in developing, testing, validating, producing, deploying or scaling any integrated solution; limitations of existing software, hardware, components, suppliers, manufacturing capacity, engineering resources, field support, trained operators and operational infrastructure; the ability to demonstrate the effectiveness, affordability, scalability, safety and reliability of any combined solution in operational environments; the ability to attract customers, vendors, integrators, channel partners and government or defense partners; procurement timelines, funding availability, budget priorities, contracting requirements and acceptance criteria applicable to government and defense customers; competition in the defense technology sector; reliance on government contracts and related procurement processes; geopolitical conditions affecting operations in Ukraine and other regions; risks related to operating through foreign subsidiaries and working with international partners; regulatory requirements applicable to defense technology, unmanned systems, artificial intelligence, data, cybersecurity, sanctions, export controls, defense trade controls and international partnerships; the risk that partner technologies, operational claims or performance data may not be independently verified or may not translate to an integrated commercial solution; and the possibility that the collaboration may not result in a definitive agreement, commercial product or service, customer adoption, revenue or other anticipated benefits.

Forward-looking statements speak only as of the date of this press release. Swarmer undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Additional risks and uncertainties are described in Swarmer’s filings with the Securities and Exchange Commission, including under the caption “Risk Factors” in Swarmer’s registration statement and other filings filed with or furnished to the SEC.

Investor Relations Contact: [email protected]

Media Relations Contact: [email protected]