GrabAGun Digital 2025 Q3 Earnings Significant Net Loss Amid 10.4% Revenue Growth

GrabAGun Digital (PEW) reported fiscal 2025 Q3 earnings on Nov 14, 2025. The company exceeded revenue expectations by $0.27M with $22.27M in revenue (+10.4% YoY) but missed EPS estimates by $0.13, reporting a $0.12 loss. CEO Mark Nemati highlighted strategic investments and market share gains despite a challenging regulatory environment. The stock has declined 11.70% month-to-date post-earnings.

Revenue

Firearm sales drove the revenue increase, contributing $18.08 million, a 12% year-over-year rise in volume. Non-firearm sales added $4.19 million, reflecting a 3% growth. Total revenue reached $22.27 million, outpacing industry trends amid a 5.3% decline in FBI NICS background checks.

Earnings/Net Income

GrabAGun swung to a $0.12 loss per share in Q3 2025, a 300% negative change from $0.06 in Q3 2024. The net loss of $3.25 million marked a 687.2% deterioration from $554,000 net income in the prior year, driven by stock-based compensation costs and operational overhead. The results underscored profitability challenges despite revenue expansion.

Post-Earnings Price Action Review

Following the earnings report, GrabAGun’s stock price declined 3.26% in the latest trading day and 3.71% over the preceding week. Month-to-date, the stock has tumbled 11.70%, reflecting investor concerns over the significant net loss and margin pressures. While the company emphasized strategic growth initiatives, the market appeared skeptical about near-term profitability.

CEO Commentary

CEO Mark Nemati highlighted a 10% YoY revenue increase to $22.3 million, driven by 8.1% repeat sales growth and a 13% rise in mobile sessions. Strategic priorities included launching the Shoot and Subscribe subscription service, hiring a Chief Marketing Officer, and executing $8.9 million in share repurchases under a $20 million authorization. Nemati expressed confidence in scaling the business through technology and operational efficiencies to achieve a "billion-dollar top line."

Guidance

Management guided for mid to high single-digit YoY revenue growth in Q4 2025 with slight gross margin improvement. The CFO noted $109 million in cash reserves and elevated inventory for holiday demand. While no explicit EPS targets were provided, leadership emphasized disciplined M&A and capital allocation to accelerate long-term value creation.

Additional News

GrabAGun completed a dual listing on NYSE Texas while maintaining its primary NYSE listing. The company also announced Sina Azmoudeh as Chief Marketing Officer, a strategic hire to bolster brand partnerships. Share repurchases totaled $8.9 million under a $20 million authorization, signaling management’s confidence in undervalued equity.