American Outdoor Brands (AOUT) investor relations material

Executive summary

• Net sales for Q1 FY2027 reached $37.3 million, up 25.4% year-over-year, driven by broad-based growth in outdoor lifestyle and shooting sports categories, with new products contributing over 36% of sales and favorable order timing.

• Gross margin improved to 53.0%, a 630 basis point increase, reflecting higher-margin new products, pricing actions, and lower tariff expenses.

• Adjusted EBITDA was $1.2 million, a significant improvement from a loss of $3.1 million in the prior year, and cash at quarter-end was $33.3 million with no debt.

• Net loss narrowed to $1.5 million ($0.12 per share) from $6.8 million ($0.54 per share) in the prior year quarter, primarily due to higher sales and gross profit.

• Innovation remains a core driver, with new product launches such as Caldwell ClayCopter and BUBBA Pro Series Gen 2 Electric Fillet Knife, and 54% of annual net sales covered by intellectual property.

Financial highlights

• Net sales for Q1 were $37.3 million, up 25.4% from $29.7 million in Q1 last year; adjusting for order acceleration, net sales rose 4.3%.

• Outdoor lifestyle net sales increased 34.4%, while shooting sports rose 15.3% year-over-year.

• Gross profit rose by $5.9 million, with gross margin at 53.0% versus 46.7% last year.

• Adjusted EBITDA margin for Q1 FY27 was approximately 3.2%, and non-GAAP net income margin was about 1.1%.

• Cash provided by operating activities was $13.0 million, compared to cash used of $1.7 million in the prior year.

Outlook and guidance

• Full-year FY2027 net sales guidance maintained at $200–$210 million, representing 5.0% to 10.2% growth year-over-year.

• Adjusted EBITDA guidance raised to $14.5–$17.5 million, with the midpoint up 57% from prior year.

• Gross margins expected in the mid to high-40s for fiscal 2027, slightly above target range.

• Capital expenditures for fiscal 2027 expected to be $3.5–$4.0 million.

• Management expects to meet future cash requirements through operating cash flow, cash balances, and available credit.