Outdoor Holding (POWW) Q3 2026 earnings summary

Executive summary

• Fiscal Q3 2026 delivered strong operational and financial performance, with net sales of $13.4 million, up 7% year-over-year, and gross margin at 87%.

• Achieved second consecutive quarter of net profitability, with net income before discontinued operations of $1.47 million, reversing a prior year loss, and EPS of $0.01 versus a loss of $0.18 last year.

• Adjusted EBITDA rose to $6.55 million, representing 49% of net sales, up from $4.26 million last year.

• Completed sale of Ammunition Manufacturing Business in April 2025, shifting focus to the GunBroker.com marketplace segment.

• Resolved major Delaware Litigation and SEC investigation, eliminating significant uncertainties.

Financial highlights

• Net sales for Q3 were $13.4 million, a 7% increase year-over-year; nine-month revenues were $37.2 million, up 1.2%.

• Gross margin for the quarter was 87.1%, with gross profit of $11.66 million.

• Adjusted EBITDA for Q3 was $6.55 million, up from $4.26 million last year; nine-month Adjusted EBITDA was $14.6 million.

• Cash and cash equivalents at December 31, 2025, were $69.9 million, up from $65.7 million sequentially, with $4.2 million generated from operations in the quarter.

• Operating expenses decreased by $21.76 million year-over-year, reflecting cost discipline and legal settlements.

Outlook and guidance

• Management expects continued cost optimization, targeted investments, and digital innovation to drive revenue and user experience.

• Near-term objective is to achieve a $25 million Adjusted EBITDA run rate before sales growth over the next 12 months.

• Management expects existing working capital and cash flows to fund operations for the next 12 months.

• Strategic focus on expanding e-commerce, enhancing compliance, and executing a $15 million share repurchase program.

• Legal costs may temper short-term results, but overall financial trajectory remains positive.