How did AOUT's revenue and expenses shift in Q3 2025?

American Outdoor Brands, Inc. (AOUT) experienced notable improvements in revenue and profitability in Q3 2025, driven by strategic product innovations and robust sales channel performance. 1. **Revenue Growth**: AOUT achieved net sales of $58.5 million in Q3 2025, marking a significant year-over-year increase of 9.5%. This growth was bolstered by strong performance across traditional, e-commerce, and domestic channels, indicating a diversified and effective sales strategy. |code|Ticker|Name|Date|Total Revenue|Total Expenses|Net Income|market_code| |---|---|---|---|---|---|---|---| |AOUT|AOUT.O|American Outdoor|2024 Q4|4.6298E7||-5302000|185| |AOUT|AOUT.O|American Outdoor|2025 Q1|4.1643E7||-2365000|185| |AOUT|AOUT.O|American Outdoor|2025 Q2|6.0232E7||3111000|185| |AOUT|AOUT.O|American Outdoor|2025 Q3|5.8505E7||169000|185| 2. **Gross Margin Improvement**: The company's gross margin improved by 200 basis points, reaching 44.7%. This enhancement reflects enhanced operational efficiency and pricing power, translating into higher profitability. 3. **Net Income Increase**: AOUT reported a GAAP net income of $169,000 and a non-GAAP net income of $2.7 million in Q3 2025. The non-GAAP net income represents a substantial growth compared to the previous year, underscoring the company's improved financial health. 4. **EBITDAS Growth**: The non-GAAP Adjusted EBITDAS nearly doubled to $4.7 million, signaling robust cash flow generation and the ability to invest in growth opportunities. 5. **Product Innovation**: The introduction of innovative products such as the ClayCopter™ and BUBBA SFS Lite™ has contributed to the company's positive revenue shift. These products have been well-received in the market, indicating a strong demand for AOUT's innovative offerings. 6. **Financial Outlook**: AOUT has increased its fiscal 2025 outlook and reiterated its fiscal 2026 net sales forecast, reflecting confidence in continued growth and profitability. The company's management remains optimistic about future prospects, driven by strong Q3 2025 performance and the success of new product introductions. In conclusion, AOUT's revenue and expenses in Q3 2025 shifted positively, driven by robust sales growth, improved gross margins, and enhanced profitability. The company's strategic focus on product innovation and effective sales channel management have been instrumental in achieving these favorable financial outcomes.