What does Outdoor Holding do and what are its main business segments?

What is Outdoor Holding's gross profit margin?

What guidance did Outdoor Holding's management provide for the next earnings period?

Did Outdoor Holding beat or miss consensus estimates last quarter?

What were the key takeaways from Outdoor Holding's earnings call?

What is the market's earnings forecast for Outdoor Holding next quarter?

What is the revenue and EPS growth rate for Outdoor Holding year over year?

What factors drove the changes in Outdoor Holding's revenue and profit?

- **Operational Resilience**: Flat revenue ($12M) outperformed firearm market decline, with 24% EBITDA growth to $4.9M.
- **Cost Transformation**: $6.7M YoY expense reduction drove $1.4M net income and $2.3M cash generation.
- **Market Leadership**: 3% YOY growth in firearm sales vs. 5% industry decline, with used firearms GMV up 7.8%.
- **Strategic Momentum**: $65.7M cash position supports share buybacks, with plans to exceed $25M EBITDA target.

**【CEO Summary Section】**
- **Revenue Performance**: Net sales of $12 million were flat year-over-year, outperforming broader firearm market trends. Gross margin improved to 87.1%, with a 22 basis point increase.
- **Cost Efficiency**: Operating expenses declined by $6.7 million YoY, driven by reduced litigation costs, headcount right-sizing, and streamlined operations. Net income from continuing operations rose to $1.4 million (vs. -$5.8 million prior year), with $2.3 million cash generated.
- **Adjusted EBITDA**: Improved 24% to $4.9 million, reflecting operational progress.
- **Strategic Moves**: Relocated headquarters to Atlanta, reducing costs, and exploring share buybacks with $65.7 million cash on hand.

**【CFO Financial Commentary】**
- **Market Share Growth**: Despite 5% decline in adjusted NIX, firearm sales on gunbroker.com rose 3%, with take rate increasing to 6.34%.
- **GMV Dynamics**: Total GMV of $189 million saw 7.8% growth in used firearms, offsetting a 1.2% decline in overall GMV. Revenue was flat at $11.98 million, up 1.1% QoQ.
- **Expense Management**: Bad debt expense reduced by $400,000, partially offset by a $1.8 million vendor settlement. Operating expenses down 22% YoY.
- **Liquidity**: Ended Q2 with $65.7 million cash, enabling strategic initiatives like share repurchases.

**【Q&A Key Highlights】**
- **Market Share & Strategy**: CEO Steve Irvin emphasized gaining market share despite industry decline, citing improved buyer experience and AI-driven tools for sellers.
- **Used Firearms Trend**: High sell-through rate for used firearms driven by limited supply, with focus on streamlining seller listings via AI and API integrations.
- **Profitability Outlook**: CFO Paul Kazowski highlighted potential to exceed 2026 EBITDA target of $25 million, with cost reductions and revenue growth as key drivers.
- **Litigation Impact**: Ongoing indemnification costs remain a variable expense, but operational efficiency improvements are offsetting these challenges.

Outdoor Holding Company (POWW) Q2 2026 Earnings Call Transcript

Ammunition

Casing

Marketplace

POWW

POWW fundamentals

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