|
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 second fiscal quarter ended September 30, 2025.
Second Quarter Fiscal 2026 vs. Second Quarter Fiscal 2025
Financial Highlights
– Net Revenues of $11.98 million, flat year-over-year
– Cost of Revenues decreased to $1.54 million from $1.57 million
– Gross profit margin increased to approximately 87.1% compared to 86.9%
– Operating expenses decreased $6.71 million year-over-year
– Net income from continuing operations of $1.40 million, compared to a net loss from continuing operations of ($5.87) million – representing the Company’s first quarterly profit following several periods of net losses
– Adjusted EBITDA (1) of $4.91 million compared to $3.95 million
– Improved diluted EPS from continuing operations to $0.01 from ($0.06)
Operational Highlights
– Regained full compliance with Nasdaq Continued Listing Rules
– Continued corporate restructuring and operational streamlining
– Relocated Corporate HQ to Atlanta, Georgia
– Reduced operating expenses and improved cost discipline
– Reported positive net income and cash flow, increasing overall liquidity
– Increased registered GunBroker user accounts and active listings
– Enhanced GunBroker.com user experience
– Positioned operations for sustainable profitability
(1) Adjusted EBITDA is a non-GAAP financial measure. See the discussion and the
reconciliations at the end of this release for additional information.
“Our second quarter results demonstrate that our strategic transformation is delivering results,” said Steve Urvan, Chairman and CEO of Outdoor Holding Company. “By streamlining operations, reducing costs, and investing in modernizing GunBroker.com, we’re building a more agile, focused, and growth-oriented organization. The progress we’ve made underscores our team’s ability to adapt, execute, and position the Company for sustainable, profitable growth that creates lasting value for our stockholders.”
During the quarter, the Company completed all remaining obligations related to the divestiture of its ammunition manufacturing division and finalized its rebranding, marking the culmination of its transition into a pure-play e-commerce marketplace operator. With a singular focus on scaling GunBroker.com, the Company is executing on a disciplined strategy centered around operational efficiency, margin expansion, and digital innovation.
The transformation is unlocking post-divestiture efficiencies, improving capital allocation, and positioning the Company to better capture growth opportunities in its core marketplace platform. Management continues to prioritize initiatives designed to drive gross merchandise value (GMV) growth, enhance platform monetization, and optimize the user experience.
The Company delivered improved financial and operational performance for the second quarter of fiscal 2026, demonstrating the impact of its strategic transformation. Year over year, net revenues remained consistent at $11.98 million, while gross margin improved to 87.1%, reflecting increased efficiency and a higher mix of premium seller services. Operating expenses declined by $6.71 million year-over-year, underscoring the Company’s cost discipline and its transition to an asset-light, marketplace-only model. Management expects the elevated legal and professional services expenses experienced in recent periods to gradually decline.
Compared to the prior year period, key marketplace performance indicators in the second fiscal quarter of 2026 showed continued momentum:
– Firearm Sales increased over 3% despite adjusted NICS checks being down 5% compared to the same three months in the prior year
– Total GMV demonstrated resilience in a soft market with a decrease of (1.1%), but firearm GMV increased by 1.2% – driven by a 7.8% increase in used firearm sales.
– Take rate (net revenue as a percentage of GMV) increased as a result of improved platform monetization and increasing mix of high-margin seller services
– Active listings and Average Order Value both grew year-over-year
The Company also introduced several key platform upgrades during the quarter, including improved search functionality, enhanced seller programs and analytics, and refined buyer personalization algorithms - all aimed at increasing engagement, conversion, and customer lifetime value. We believe these efforts have contributed to higher average order values, stronger buyer satisfaction, and improved seller retention.
The Company ended the quarter with a net income from continuing operations of $1.40 million after numerous quarters of net losses. Adjusted EBITDA improved year over year to $4.91 million compared to $3.95 million in the prior year period. The Company ended the quarter with an improved liquidity position, with over $65.67 million in cash and cash equivalents in contrast to $63.36 million in cash and cash equivalents on June 30, 2025. Achieving positive net income and increasing cash reserves represent critical milestones in the Company’s transformation, underscoring the success of its disciplined approach to profitability, efficiency, and balance sheet strength.
Management remains confident in the Company’s strategy and execution, emphasizing a continued focus on cost efficiency, disciplined capital allocation, and organic marketplace growth. The Company is well-positioned to leverage its strengthened balance sheet and platform investments to deliver sustained value creation for its shareholders.
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:
Darrow Associates
Phone: (917) 886-9071