GrabAGun Digital 2025 Q3 Earnings Record Net Loss of $3.25M Amid 10.4% Revenue Growth

GrabAGun Digital (PEW) reported mixed Q3 2025 results, with revenue exceeding estimates but profitability deteriorating sharply. The company’s stock price has continued to decline post-earnings, reflecting investor concern over the operating loss and negative earnings per share (EPS). Management highlighted strategic initiatives and operational execution but acknowledged significant challenges in translating revenue growth into profitability.

Revenue

GrabAGun Digital’s total revenue rose 10.4% year-over-year to $22.27 million in Q3 2025, driven by strong firearm sales. Firearm revenue reached $18.08 million, reflecting robust demand and a 16% volume increase, while non-firearm sales contributed $4.19 million, maintaining a modest 3% growth. The company attributed the overall performance to a 67% share of transactions via mobile platforms and expanded product offerings.

Earnings/Net Income

The company reported a net loss of $3.25 million, or $0.12 per share, in Q3 2025, marking a 687.2% deterioration from a net income of $554,000 in the prior-year period. This loss was exacerbated by $3.2 million in stock-based compensation expenses and operational costs tied to its recent public listing. The sharp decline in profitability, despite revenue growth, underscores structural challenges in managing expenses relative to sales expansion.

Price Action

Following the earnings report, GrabAGun Digital’s stock price fell 1.31% during the latest trading day, extended a 12.90% weekly decline, and dropped 20.08% month-to-date. The sustained downward trend reflects investor skepticism about the company’s ability to reverse its net loss trajectory and improve margins.

Post-Earnings Price Action Review

The post-earnings price action highlights a sharp reversal of investor sentiment. While revenue growth outperformed expectations, the operating loss and negative EPS prompted a reevaluation of the company’s financial health. The stock’s 20.08% month-to-date decline indicates heightened volatility, with short-term traders capitalizing on the bearish momentum. Analysts note that the market is pricing in prolonged margin pressures, particularly given the company’s reliance on high-cost growth strategies and its inability to achieve profitability despite rising sales.

CEO Commentary

Marc Nemati, CEO of GrabAGun Digital, emphasized the company’s “strong operational execution” and “commitment to defending Americans’ Second Amendment rights” during the earnings call. He highlighted a 16% year-over-year increase in firearm sales volume and a 109% rise in customer lifetime value as key achievements. However, Nemati acknowledged the “challenging cost environment” and stated that the company is prioritizing “operational efficiency and strategic investments to drive long-term value.”

Guidance

Looking ahead, GrabAGun Digital outlined a focus on expanding its ammunition subscription service, enhancing technology platforms, and pursuing strategic acquisitions. While the company did not provide specific revenue or EPS guidance, management expressed confidence in steady demand across core categories and a “disciplined approach to cost management.”

Additional News

Recent developments include the appointment of Sina Azmoudeh as Chief Marketing Officer, a $8.9 million share repurchase program, and the launch of the Shoot and Subscribe™ ammunition service. The company also completed a dual listing on NYSE Texas, reinforcing its market presence. These moves aim to bolster customer retention and operational scalability, though investors remain cautious about near-term profitability.

The company’s strategic pivot toward mobile transactions, which now account for 67% of sales, aligns with broader industry trends. However, the challenge lies in converting this digital engagement into sustainable profitability. With $109 million in cash and no debt, GrabAGun Digital maintains financial flexibility but must address cost overruns and margin compression to restore investor confidence.