American Outdoor Brands (AOUT) Q2 2025 earnings summary

Executive summary

• Q2 FY25 net sales reached $60.2M, up 4% year-over-year, driven by innovation, strong execution, and growth in outdoor lifestyle and international sales.

• Gross margin improved to 48.0%, up 230 basis points from the prior year, aided by lower discounts and freight costs.

• Net income for Q2 was $3.1M ($0.24 per share), a significant increase from $77K ($0.01) last year; Adjusted EBITDAS rose 42.9% to $7.5M.

• Growth was broad-based, with both outdoor lifestyle (+5.4%) and shooting sports (+1.9%) categories posting gains, and international sales up 14.8%.

• Retailers showed strong enthusiasm for new products, leading to increased FY25 guidance and an initial FY26 outlook.

Financial highlights

• Q2 net sales: $60.2M (+4% YoY); gross profit: $28.9M (48.0% margin); net income: $3.1M ($0.24/share); Adjusted EBITDAS: $7.5M.

• GAAP operating expenses decreased to $25.8M; non-GAAP OpEx slightly up to $22.7M.

• Ended Q2 with $14.2M in cash and no debt after share repurchases.

• Inventory increased to $111.6M to support order strength.

• Net cash used in operating activities for the six months ended October 31, 2024, was $12.3M.

Outlook and guidance

• FY25 net sales guidance raised to $205M–$210M (3.2% growth at midpoint); FY26 outlook set at $220M–$230M (8.4% growth at midpoint).

• FY25 Adjusted EBITDAS expected at $13.5M–$15.0M; GAAP loss per share projected between $(0.36) and $(0.24).

• FY25 gross margin expected at 45.5%; Q3 gross margin expected at 45%.

• Retailers provided strong early order indications and shelf space commitments for new products launching in 2025.

• Capital expenditures for FY25 expected to be $3.5M–$4.5M, down from $6.0M in FY24.