Outdoor Holding Company, formerly known as Ammo Inc., reported a decline in adjusted earnings and revenue for Q1. The company's adjusted earnings per share fell to $0.08 from $0.13 in the same period last year, while revenue dropped to $31 million from $33.5 million. Despite this, revenue beat analysts' estimates. The company's CEO, Steve Urvan, was recently appointed, and the board has undergone changes.
Outdoor Holding Company, formerly known as Ammo Inc., reported mixed results for the first quarter of fiscal 2026. The company's net revenue fell to $11.9 million, down from $12.3 million in the same period last year [1]. This decline was attributed to macroeconomic softness impacting consumer discretionary categories, particularly firearms-related businesses [1]. Despite the revenue drop, the company's revenue beat analysts' estimates of $11.7 million [1].
The company's adjusted earnings per share (EPS) also decreased, falling to $0.02 from $0.04 in the same period last year [1]. However, this figure still beat the consensus estimate of $0.04 [1]. The company's adjusted EBITDA, a measure of operating profit, was $3.1 million, down from $5.54 million in the same period last year [1].
Outdoor Holding Company's gross margin improved to 87.2% from 85.8% due to improved platform monetization and a higher mix of high-margin seller services [1]. Operating expenses decreased by $0.4 million year-over-year as the company implemented cost reduction initiatives aligned with its transition to an asset-light, marketplace-only model [1].
The company's CEO, Steve Urvan, was recently appointed following a significant leadership transition and the divestiture of its ammunition manufacturing division [2]. The company aims to focus on enhancing GunBroker.com, its digital marketplace, for growth [1]. Outdoor Holding Company expects legal expenses to decrease over the next 12-18 months and aims for a $25 million adjusted EBITDA run rate in 18 months [1].
The company's stock, traded under the ticker symbol POWW, has seen positive analyst coverage, with an average rating of "buy" and a median 12-month price target of $1.70, about 33.5% above its August 7 closing price of $1.13 [1].
References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX4FF6DD:0-firearms-firm-outdoor-holding-q1-revenue-beats-estimates/
[2] https://www.stocktitan.net/news/POWW/
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