Outdoor Holding Extends Revenue Growth as Profitability Widens
Net revenues rose 22.1% to $14.5 million in the fiscal first quarter ended June 30, 2026, and Adjusted EBITDA more than doubled to $7.9 million.
Outdoor Holding Company (POWW), the owner of GunBroker.com, reported net revenues of $14.5 million for the fiscal first quarter ended June 30, 2026, up 22.1% from $11.9 million a year earlier. That was the fourth consecutive quarter of year-over-year growth and a faster pace than the 10.1% increase recorded in the immediately preceding quarter.
The Atlanta-based firearms marketplace’s acceleration reflected higher marketplace volume and a new federal firearms license transfer revenue stream that began in April 2026. Gross merchandise value rose 18.1% to about $223.7 million from about $189.5 million, after 11.8% growth to about $229 million in the prior quarter.
Firearm unit sales increased 11.6% year over year, compared with a 5.3% increase in adjusted National Instant Criminal Background Check System checks. That lifted the company’s estimated share of adjusted NICS activity 41 basis points to about 6.4%. Average order value grew 7.5% to $477. GMV in silencers and suppressed firearms increased about 71% after the federal transfer tax on silencers was reduced to zero.
Demand was supported in part by purchasing ahead of a scheduled July 1, 2026 effective date of Virginia legislation restricting certain semiautomatic firearms and magazines. That activity contributed a meaningful portion of year-over-year GMV growth and is not assumed to repeat in the second quarter. Excluding Virginia, GMV increased about $23 million year over year on higher traffic, improved conversion, and average order value across new and used products. Enforcement of the Virginia law is subject to preliminary injunctions, with litigation ongoing.
Gross profit increased 18.5% to $12.2 million from $10.3 million. Gross profit margin compressed to 84.5% from 87.2% a year earlier, after holding at 87.6% in the prior quarter. The mix shift was primarily due to lower-margin FFL transfer revenue and related implementation costs that are not expected to recur.
Take rate rose 21 basis points year over year to 6.47%, with FFL transfer revenue contributing 39 basis points. Excluding that stream, legacy take rate was 6.08%, compared with 6.26% a year earlier. The legacy decline reflected a higher proportion of volume from the company’s largest sellers, who qualify for discounted fee tiers, and increased sales of higher-value items. The mix shift is not viewed as a deterioration in underlying economics, and new transaction-related services are expected to expand take rate without raising the base final value fee.
Operating expenses fell 45.3% to $8.9 million from $16.3 million, after a smaller sequential decline from $15.1 million. The decline followed the resolution of certain legacy legal matters and continued cost discipline. Income from operations was $3.3 million, compared with a loss from operations of $6.0 million a year earlier.
Net income from continuing operations was $3.6 million, versus a $5.9 million loss a year earlier. Net income attributable to common shareholders was $2.8 million, or $0.02 a share, compared with a $7.2 million loss. Adjusted EBITDA was $7.9 million, or 54.6% of net revenues, compared with $3.1 million, or 26.5%, a year earlier, after $7.7 million in the prior quarter. The company has now generated positive net income in three of the last four quarters, and marketplace growth, improved transaction productivity, and new revenue streams are contributing alongside the lower cost structure.
Net cash provided by operating activities was $4.4 million, compared with net cash used of $6.7 million a year earlier. Cash and cash equivalents were $68.8 million at June 30, up $0.7 million from March 31, after $2.0 million of share repurchases, $0.8 million of preferred stock dividends, and related-party note payments. The company repurchased just over 1 million shares for $2.0 million at an average of $1.98 a share, leaving about $12.0 million of a $15.0 million authorization.
For the remainder of fiscal 2027, the company is focused on growing marketplace activity and share, scaling FFL transfer revenue and implementing universal payments, protecting the reset cost structure, and deploying AI in listing quality, customer service, and conversion. An AI-powered listing tool launched in March continued to standardize product descriptions; an AI-supported customer-service agent is in pilot, with a phased rollout expected once it meets quality and escalation standards.