One company met our criteria from the three 10-K annual reports filed with the SEC on 17 June 2026. To qualify, a company must have filed an annual 10-K report on the target date and have a prior-year 10-K available for a direct year-over-year comparison. A prior-year filing was not available for VITASPRING BIOMEDICAL CO. LTD. (1697884) and Somitos Corp. (2074643), so they are excluded from the ranking.
SEC What Changed Methodology
Each company is scored on how similar its current annual filing text is to the prior year. Scores run from 0 to 1 — a score of 1 means the language is essentially unchanged; a lower score means more has changed. We flag three sections that carry the most disclosure signal: Business, Risk Factors, and MD&A. Recent research suggests that lower scores indicate that a company has made significant changes to their filings, these changes are often buried in the filings. If a company was to report positive news, they would likely do so in the form of a press release or statement on their website. The large changers have often underperformed in the market, while the stable-language filers have earned positive abnormal returns.
Key Takeaways
- SMITH & WESSON BRANDS, INC. (Medium) — Smith & Wesson is showing better top-line and earnings momentum, but tariffs are now a clearly identified margin headwind.
Ranking Table
| Rank | Company | CIK | Full Filing Similarity | Business Similarity | Risk Factors Similarity | MD&A Similarity | Most Changed Section | Assessment |
|---|---|---|---|---|---|---|---|---|
| 1 | SMITH & WESSON BRANDS, INC. | 1092796 | 0.998 | 0.999 | 0.999 | 0.906 | MD&A | medium |
SMITH & WESSON BRANDS, INC. (1092796)
| Rank | 1 |
|---|---|
| Lowest similarity section | MD&A |
| Assessment | medium |
| SEC filings | 2026 10-K HTML/iXBRL (SEC page, raw text) | 2025 10-K HTML/iXBRL (SEC page, raw text) |
Smith & Wesson’s new MD&A focuses on fiscal 2026 and shows a better year: sales, gross profit, and net income all increased versus the prior year. Management also called out a tariff-related margin drag, which partly offset benefits from lower promotions and excise taxes. The company used cash to reduce revolver borrowings while still paying dividends.
Main Changes
- MD&A now opens with fiscal 2026 versus fiscal 2025 comparisons only; the prior year-over-year discussion for fiscal 2025 versus fiscal 2024 was removed from this filing and pushed to the prior 10-K.
- The company added a new 2026 highlights section showing net sales of $523.8 million, up 10.4%, gross profit up 10.9%, and net income rising to $18.5 million from $13.4 million.
- Management added a specific margin bridge saying gross margin improved by 10 basis points from lower promotional costs and lower federal firearms excise taxes, partly offset by unfavorable fixed-cost absorption and a 100-basis-point tariff impact.
- The filing adds a new note that the company repaid $60.0 million on its revolving credit facility and paid $23.2 million in dividends during fiscal 2026.
Watch Items
- The tariff hit is now explicitly quantified, which suggests management sees trade costs as a real margin headwind rather than a generic macro risk.
- Higher sales and profit point to better operating momentum, but the reliance on lower promotional spend and tax benefits means margin quality still needs monitoring.
- Debt paydown alongside continued dividends signals cash generation is improving, but investors should watch whether that pace is sustainable if demand softens.
Important Filing Changes
See also the discussion below related to an immaterial correction of an error. 2025 Highlights Our operating results for fiscal 2025 included the following: • Net sales of $474.7 million represented a decrease of $61.2 million, or 11.4%, from the prior fiscal year. • Gross profit decreased $30.9 million, or 19.6%, from the prior fiscal year, primarily as a result of lower sales volume and a shift in product mix. Gross margin decreased 270 basis points from the prior fiscal year in spite of a $3.2 million legal settlement recognized in the prior year comparable period.
This section generally discusses year-to-year comparisons between fiscal 2026 and fiscal 2025. 2026 Highlights Our operating results for fiscal 2026 included the following: • Net sales of $523.8 million represented an increase of $49.2 million, or 10.4%, over the prior fiscal year. • Gross profit increased $13.9 million, or 10.9%, over the prior fiscal year, primarily because of higher sales volume. Gross margin increased by ten basis points from the prior fiscal year primarily due to lower promotional costs and lower federal firearms excise taxes, partially offset by unfavorable fixed-cost absorption and a 100-basis point impact from higher tariffs. • Net income was $18.5 million, or $0.41 per diluted share, compared with net income of $13.4 million, or $0.30 per diluted share, for the prior fiscal year. • During fiscal 2026, we paid $23.2 million in dividends compared with $23.1 million in fiscal 2025. • During fiscal 2026, we repaid $60.0 million on our revolving credit facility.
Gross margin decreased 270 basis points from the prior fiscal year in spite of a $3.2 million legal settlement recognized in the prior year comparable period. Excluding the impact of the prior year legal settlement, gross margin was 330 basis points lower as a result of higher material costs, higher promotional costs, and a shift in product mix to lower margin products, partially offset by lower inventory adjustments (including standard cost revaluations, shrink, and excess inventory write downs). • Net income was $13.4 million, or $0.30 per diluted share, compared with net income of $41.4 million, or $0.89 per diluted share, for the prior fiscal year. • During fiscal 2025, we paid $23.1 million in dividends compared with $22.0 million in fiscal 2024. • During fiscal 2025, we purchased 1,844,073 shares of our common stock for $25.5 million. Immaterial Correction…
2026 Highlights Our operating results for fiscal 2026 included the following: • Net sales of $523.8 million represented an increase of $49.2 million, or 10.4%, over the prior fiscal year. • Gross profit increased $13.9 million, or 10.9%, over the prior fiscal year, primarily because of higher sales volume. Gross margin increased by ten basis points from the prior fiscal year primarily due to lower promotional costs and lower federal firearms excise taxes, partially offset by unfavorable fixed-cost absorption and a 100-basis point impact from higher tariffs. • Net income was $18.5 million, or $0.41 per diluted share, compared with net income of $13.4 million, or $0.30 per diluted share, for the prior fiscal year. • During fiscal 2026, we paid $23.2 million in dividends compared with $23.1 million in fiscal 2025. • During fiscal 2026, we repaid $60.0 million on our revolving credit facility. Key Performance Indicators We evaluate the performance of our business based upon operating profit and net income, which includes net sales, cost of sales, selling and administrative expenses, and certain components of other income and expense.
Why SEC Filing Changes Matter
Research by Cohen et al. (Lazy Prices, 2020) — using the complete history of SEC filings from 1995 to 2014 — shows that when firms make active changes to their annual disclosures, those changes convey an important signal about future operations and returns. A portfolio that shorted "changers" and bought "non-changers" earned over 22% per year in annual alpha historically. Changes to the Risk Factors section, Business description, and language referring to the executive team were especially informative. Critically, these returns accrued gradually as information was later revealed through news and earnings — not at the time of filing — suggesting many investors remain inattentive to these simple, public signals. This snapshot is a starting point for deeper investigation, not a buy or sell recommendation.
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