Outdoor Holding (POWW) investor relations material

Executive summary

• Fiscal 2026 saw significant improvement, with strong Q4 momentum, higher cash generation, and growing profitability, surpassing previously set profitability goals.

• Revenue for Q4 2026 increased 10.1% year-over-year to $13.9 million, with gross profit rising to $12.2 million and gross margin stable at 87.6%.

• Operating expenses dropped significantly to $15.1 million from $38.0 million, driving a reduced loss from continuing operations of $(2.7) million versus $(27.0) million last year.

• Adjusted EBITDA for Q4 rose to $7.7 million from $2.9 million, and annual Adjusted EBITDA increased to $22.3 million from $15.3 million.

• Positive cash flow from operations and a strengthened balance sheet with $68.1 million in cash at year-end.

Financial highlights

• Q4 net sales were $13.9 million, up over 10% year-over-year; gross margin was 87.6%.

• Fiscal 2026 net sales rose 3.5% to $51.5 million; gross margin improved to 87.2%.

• Operating expenses for the year were halved to $50.9 million from $102.6 million.

• Net loss from continuing operations for fiscal 2026 was $4.9 million, a significant improvement from $65.2 million in fiscal 2025.

• GMV for Q4 increased 11.8% year-over-year to $229 million, with average order value up 6.5%.

Outlook and guidance

• Management expects gross margins to remain strong and anticipates new FFL services revenue in fiscal 2027, though at lower margins.

• Continued focus on cost reduction, operational efficiency, and disciplined stock repurchases is planned.

• Key initiatives for fiscal 2027 include expanding premium seller offerings, enhancing pricing and analytics, implementing universal payments, and leveraging AI.