Outdoor Holding 2025 Q3 Earnings Misses Targets as Net Loss Widens 986.1%

Outdoor Holding (POWW) reported its fiscal 2025 Q3 earnings on May 20th, 2025. The company reported a significant decline, missing analysts' expectations in both revenue and earnings. The net loss widened dramatically, indicating challenging market conditions. Forward guidance suggests an aim for stabilization in revenue, with efforts to improve EPS in upcoming quarters. Leadership anticipates gradual recovery, although the current economic climate remains complex.

Revenue
Outdoor Holding experienced an 18.9% decrease in total revenue for 2025 Q3, amounting to $29.19 million compared to $36.01 million in the same quarter of the previous year. Ammunition sales contributed $12.33 million, while marketplace activities generated $12.52 million. Casing sales accounted for $4.34 million, culminating in net revenues of $29.19 million.

Earnings/Net Income
The company's losses escalated to $0.23 per share in 2025 Q3, a notable widening from the $0.03 per share loss in 2024 Q3, translating to a 666.7% deeper loss. The net loss expanded to $-26.13 million in 2025 Q3, a staggering 986.1% increase from the $-2.41 million loss recorded in the same period last year. The EPS indicates a poor performance.

Price Action
The stock price of Outdoor Holding dropped 5.24% during the latest trading day, fell by 9.95% over the most recent full trading week, and has seen a month-to-date surge of 26.57%.

Post-Earnings Price Action Review
The strategy of purchasing Outdoor Holding shares post-revenue announcements on the financial report release date, followed by a 30-day holding period, resulted in significant underperformance. The strategy yielded a return of -48.75%, substantially lagging behind the benchmark return of 88.25%. The excess return measured at -136.99%, coupled with a compound annual growth rate (CAGR) of -12.57%, highlights substantial losses over the five-year timeframe. This approach also faced a high maximum drawdown of -91.18% and a Sharpe ratio of -0.20, reflecting considerable risk and negative returns, underscoring the volatility and unfavorable financial outcomes of this investment strategy.

CEO Commentary
CEO [Name] highlighted the ongoing challenges faced by Outdoor Holding, noting that despite a revenue of $29,187,502 for Q3 2025, the company reported an EPS of -0.23 and a net loss of $26,128,782. The CEO emphasized the importance of focusing on core business performance and identified strategic investments aimed at enhancing market positioning. The leadership expressed a cautious optimism regarding future growth, acknowledging the need for adaptive strategies to navigate the current economic landscape and drive profitability moving forward.

Guidance
For the upcoming quarters, Outdoor Holding expects revenue to stabilize with a target of approximately $30 million, while the leadership guides towards an EPS improvement, aiming to reduce losses in the next reporting periods. The company's strategic initiatives are aligned with bolstering operational efficiency and enhancing customer engagement, with qualitative expectations of gradual recovery in market conditions.

Additional News
Outdoor Holding Company has announced key developments in recent weeks. On April 24, AMMO, Inc. officially changed its name to Outdoor Holding Company, reflecting its strategic focus on e-commerce through GunBroker.com. In another significant move, AMMO, Inc. completed the sale of its ammunition manufacturing assets to Olin Winchester on April 18, marking a shift towards becoming a pure-play e-commerce firm. Additionally, the company declared a cash dividend for Series A Preferred Stock holders, payable on June 16, 2025, reinforcing its commitment to shareholder returns amidst ongoing business transitions.