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Outdoor Holding Company (Nasdaq: POWW, POWWP) (“OHC,” “we,” “us,” “our” or the “Company”), the owner of GunBroker.com, the largest online marketplace for firearms, hunting and related products, today reported its financial results for its first fiscal quarter ended June 30, 2025.
First Quarter Fiscal 2026 vs. First Quarter Fiscal 2025
Financial Highlights
– Net Revenues of $11.9 million vs. $12.3 million
– Cost of Revenues decreased to $1.5 million from $1.7 million
– Gross profit margin increased to approximately 87.2% compared to 85.8%
– Operating expenses decreased $0.4 million
– Net loss from continuing operations of ($5.9) million, compared to a net loss of ($12.0) million
– Decreased diluted LPS from continuing operations to ($0.06) from ($0.11)
– Adjusted EBITDA(1) of $3.1 million compared to $4.1 million
– Adjusted EPS of $0.02 compared to $0.03
Operational Highlights
– Closed ammunition division sale to Olin-Winchester
– Entered into settlement agreement for Delaware litigation
– Appointed Steve Urvan Chairman and CEO
– Increased liquidity
– Increased active marketplace listings
– Increased registered GunBroker user accounts
– Completed re-branding from AMMO, Inc. to Outdoor Holding Company
(1) Adjusted EBITDA is a non-GAAP financial measure. See the discussion and the reconciliations at the end of this release for additional information.
Steve Urvan, Outdoor Holding Company’s Chairman and CEO, commented “Our first quarter marks a turning point as we aggressively reshape the business to focus on operational efficiency, core marketplace growth, and disciplined capital allocation. We’ve implemented decisive cost-reduction measures, realigned our teams, and renewed our commitment to enhancing the GunBroker.com platform. We are building a more agile and focused company that can better deliver long-term value for stockholders.”
The Company delivered solid financial and operational performance for the first quarter of fiscal 2026, reflecting early indications of a successful execution of its strategic transformation. Following the completed sale of its ammunition manufacturing division and recent corporate rebranding to Outdoor Holding Company, the Company is now singularly focused on scaling its e-commerce marketplace platform, GunBroker.com. Along with corporate restructuring designed to unlock post-divestiture efficiencies, we expect this transformation will enable increased operational focus, improved capital allocation, and a commitment to cost efficiency and growth in gross merchandise value (“GMV”).
Net revenues totaled $11.9 million, down slightly from the prior-year period, reflecting broader macroeconomic softness impacting consumer discretionary categories, particularly firearms-related businesses. Despite revenue headwinds, gross margin expanded to 87.2%, compared to 85.8% in the prior year period, driven by improved platform monetization and an increasing mix of high-margin seller services, such as advertising and listing enhancements. Operating expenses decreased by $0.4 million year-over-year, as the Company implemented cost reduction initiatives aligned with its transition to an asset-light, marketplace-only model. As the Company continues to resolve legal and regulatory disputes, we expect legal and other professional services expenses to gradually abate.
Compared to the prior year period, key marketplace performance indicators in the first fiscal quarter of 2026 showed continued momentum:
– Gross Merchandise Value remained strong despite significant market headwinds and decreases in overall consumer discretionary spending
– Gross Margin increased despite a decline in revenue, demonstrating our commitment to controlling our costs of revenue
– Take rate (net revenue as a percentage of GMV) remained stable, with targeted pricing incentives balanced against long-term monetization goals.
– Active listings increased on a year-over-year basis, as more third-party sellers engaged with the platform.
– Registered user accounts grew to 8.5 million during the quarter – a new high water mark
– Average Order Value increased from $425 to $444 per order
Platform upgrades during the quarter included search functionality improvements, enhanced seller programs and analytics, and further refinement of buyer personalization algorithms – all aimed at increasing engagement, conversion, and customer lifetime value. These improvements contributed to higher average order values and better buyer satisfaction scores.
Net loss from continuing operations narrowed substantially to $5.9 million, compared to $12.0 million in the first quarter of fiscal 2025, primarily due to recording a full valuation allowance on net deferred tax assets which contributed to a larger loss for the first quarter in FY 2025. Adjusted EBITDA was $3.1 million compared to $4.1 million in the prior-year quarter, reflecting lower revenue, partially offset by improved gross margin and reduced operating costs.
The Company ended the quarter with a strong liquidity position, with over $63 million in cash, providing a stable financial foundation to reinvest in growth. Management remains committed to a disciplined capital allocation strategy focused on organic marketplace growth, operational efficiency, and long-term stockholder value creation.
For additional information regarding our business and financial outlook, please see the attached message from our Chairman and Chief Executive Officer, Steve Urvan.
Periodic Reporting Compliance Restored
On May 21, 2025, the Company received formal confirmation from the Nasdaq Listing Qualifications Staff that it had regained compliance with Listing Rule 5250(c)(1) following the filing of its previously delayed Forms 10-Q for the quarters ended September 30 and December 31, 2024. The Company timely filed its Form 10-K for the fiscal year ended March 31, 2025, and the periodic reporting deficiency matter has been formally closed. Separately, to address a Nasdaq deficiency related to Listing Rule 5620(a), the Company has scheduled its 2025 Annual Meeting of Stockholders for August 29, 2025, which is expected to cure the remaining deficiency and restore full compliance with Nasdaq listing standards.
Discontinued Operations
As previously disclosed, in April 2025, the Company completed the sale of all assets of its business of designing, manufacturing, marketing, distributing and selling ammunition and ammunition components, along with certain related assets and liabilities (the “Transaction”). Following the Transaction, the Company continues to operate its online e-commerce marketplace business GunBroker.com.
For the purposes of this earnings release and the financial information provided herein, the results of the Ammunition segment are presented as discontinued operations in the consolidated statements of operations for all periods presented. Prior periods have been adjusted to conform to the current presentation. The assets and liabilities of the Ammunition segment have been reflected as assets and liabilities of discontinued operations in the condensed consolidated balance sheets for all periods presented.
About Outdoor Holding Company
Outdoor Holding Company is the publicly traded parent and operator of GunBroker.com, the largest online marketplace dedicated to firearms, hunting, shooting and related products. Third-party sellers list items on the site and federal and state laws govern the sale of firearms and other restricted items. Ownership policies and regulations are followed by using licensed firearms dealers as transfer agents. Launched in 1999, the GunBroker.com website is an informative, secure and safe way to buy and sell firearms, ammunition, shooting accessories and outdoor gear online. GunBroker promotes responsible ownership of guns and firearms. For more information, visit: www.gunbroker.com.
Cautionary Statement Concerning Forward-Looking Statements
Statements contained or incorporated by reference in this press release that are not historical are considered “forward-looking statements” within the meaning of the federal securities laws and are presented pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “target,” “believe,” “expect,” “will,” “may,” “anticipate,” “estimate,” “would,” “positioned,” “future,” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, among others, statements about the Company’s ability to unlock post-divestiture efficiencies, the Company’s expected legal and other professional services expenses, the Company’s business strategy, plans, objectives, expectations and intentions, the Company’s anticipated future operating results and operating expenses, cash flow, capital resources, dividends and liquidity, the Company’s future expansion or growth plans and potential for future growth, including its plan to expand its e-commerce platform, the Company’s ability to attract new customers and other statements that are not historical facts. Instead, they are based only on Company management’s current beliefs, expectations and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control. Important factors that could cause actual results to differ materially from those described in forward-looking statements include, but are not limited to, the Company’s ability to maintain and expand its e-commerce business, the Company’s ability to introduce new features on its e-commerce platform that match consumer preferences, the Company’s ability to retain and grow its customer base, the impact of lawsuits, including securities class action lawsuits, stockholder derivative suits and enforcement actions by regulatory authorities, the impact of adverse economic market conditions, including from social and political factors, and the occurrence of any other event, change or other circumstances that could give rise to impacts on operating results. Therefore, investors should not rely on any of these forward-looking statements and should review the risks and uncertainties described under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended March 31, 2025, filed with the SEC on June 17, 2025, and additional disclosures the Company makes in its other filings with the SEC, which are available on the SEC’s website at www.sec.gov. Forward-looking statements are made as of the date of this press release, and except as provided by law, the Company expressly disclaims any obligation or undertaking to any updated forward-looking statements.
Contacts
For investors:
CoreIR
Phone: (212) 655-0924