Outdoor Holding 2026 Q2 Earnings Remarkable Turnaround with 111.3% Net Income Surge

Outdoor Holding (POWW) reported its fiscal 2026 Q2 earnings on Nov 11, 2025, delivering a significant turnaround in profitability. The stock surged 11.04% pre-market to $1.81, reflecting strong investor confidence. The company reversed from a $0.11 loss per share to $0.01 EPS, while net income jumped from a $12.43 million loss to $1.40 million.

Revenue

Total revenue remained flat at $11.98 million year-over-year, slightly exceeding the $11.20 million consensus estimate. The company attributed this to operational efficiency and sustained demand for its e-commerce platform, particularly GunBroker.com.

Earnings/Net Income

Outdoor Holding returned to profitability with EPS of $0.01, a dramatic reversal from the $0.11 loss in 2025 Q2. Net income surged by 111.3% to $1.40 million, up from a $12.43 million loss. The EPS turnaround from a $0.11 loss to $0.01 indicates a strong recovery in profitability.

Post-Earnings Price Action Review

The strategy of buying POWW shares when revenue beats expectations and holding for 30 days has shown positive results. Recent performance highlighted operational efficiency and market demand for GunBroker.com, with revenue of $11.98 million surpassing the $11.20 million estimate. The stock surged 11.04% pre-market to $1.81, signaling investor confidence. Holding shares for 30 days post-beat offers a window to capture gains, supported by the company’s cost discipline and growth initiatives. Historical context, including the shift from losses to positive net income, reinforces this strategy, though investors must consider broader market conditions.

CEO Commentary

CEO Commentary Summary

Steve Urvan, Chairman and CEO, emphasized that the company’s strategic transformation is delivering results. By streamlining operations, reducing costs, and modernizing GunBroker.com, Outdoor Holding is building a growth-oriented organization. The CEO highlighted progress in operational efficiency, margin expansion, and digital innovation, stating these initiatives position the company for sustainable, profitable growth.

Guidance

Guidance Section

Outdoor Holding did not provide explicit quantitative guidance for future periods. However, management expressed confidence in sustaining cost discipline, expanding margins, and leveraging digital innovation to drive organic growth. Forward-looking statements include reducing legal expenses and enhancing platform monetization.

Additional News

Within three weeks of the earnings release, Outdoor Holding announced key developments:

1. M&A Activity: Completion of the ammunition manufacturing division’s divestiture, transitioning the company to a pure-play e-commerce operator.

2. C-Level Changes: Steve Urvan transitioned to CEO and Chairman, following leadership restructuring.

3. Price Target Adjustment: Lake Street raised its price target for POWW to $2.50 from $2.00, maintaining a “Buy” rating, citing improved growth prospects.