Outdoor Holding caps fiscal 2026 with 10% revenue growth, $7.7M EBITDA

Outdoor Holding Company (POWW) reported fiscal fourth-quarter revenue of $13.9 million, beating the consensus estimate of $12.7 million, as cost reductions and platform upgrades at GunBroker.com drove improved profitability.

"In the fourth quarter, we made further progress reducing operating expenses," Steve Urvan, Chairman and CEO of Outdoor Holding Company, said. Total operating expenses declined $22.9 million year-over-year to $15.1 million.

The company narrowed its net loss from continuing operations to $2.7 million from $27 million in the same period last year, even after absorbing a $4.4 million settlement charge related to the DCP matter. Adjusted EBITDA surged to $7.7 million from $2.9 million a year earlier, exceeding the $25 million annualized run-rate target Urvan set last August. Gross margin remained strong at 87.6 percent.

The company ended fiscal 2026 with $68.1 million in cash and equivalents, more than double the $30.2 million a year earlier, even after funding the settlement, $1 million in share repurchases and other legal costs. GunBroker.com generated approximately $229 million in gross merchandise value during the quarter, up 10.1 percent year-over-year, while firearm unit sales rose 8.7 percent, outpacing the 1.6 percent increase in adjusted NICS checks.

Roth Capital raised its price target on Outdoor Holding to $2.75 from $2.30 following the results, maintaining a Buy rating. Analysts cited improving operating performance, accelerating business momentum and ongoing shareholder-return initiatives.

For fiscal 2027, management plans to expand premium seller offerings, enhance pricing and promotional tools, deploy universal payments and improve buyer engagement through AI-powered features. The company recently launched an AI listing tool that generates standardized product descriptions to increase conversion rates and maintain compliance.

The results demonstrate the strength of Outdoor Holding's asset-light operating model following the April 2025 sale of its ammunition manufacturing business. Investors will watch whether the company can sustain its quarterly Adjusted EBITDA run-rate above $25 million in fiscal 2027 as it invests in platform enhancements and AI tools.

This article is for informational purposes only and does not constitute investment advice.