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- **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

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

POWW

POWW fundamentals

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