American Outdoor Brands (AOUT) Q2 2026 earnings summary

Executive summary

• Q2 FY2026 net sales were $57.2M, down 5% year-over-year, with gross margin at 45.6% and GAAP net income of $2.1M ($0.16/share); non-GAAP net income was $3.7M ($0.29/share).

• Strong innovation and new product launches drove over 31% of net sales, with POS up 4% year-over-year.

• The company operates an asset-light model, remains debt-free, and ended the quarter with $3.1M in cash.

• Retailers are shifting to omnichannel models, with up to 20% of sales online for some partners, and omnichannel growth offsetting softness in online-only channels.

• Outdoor Lifestyle brands, especially BOG, MEAT!, and BUBBA, showed strong POS growth, with November POS up 13%.

Financial highlights

• Net sales: $57.2M, down 5% year-over-year; gross margin: 45.6%, down from 48% last year.

• GAAP EPS: $0.16 (vs. $0.24 last year); non-GAAP EPS: $0.29 (vs. $0.37 last year).

• Adjusted EBITDA: $6.5M (11.3% of net sales), down from $7.5M last year.

• Operating income: $2.1M (3.7% margin), down from $3.1M (5.1% margin) last year.

• Cash and cash equivalents at quarter-end: $3.1M; no outstanding debt.

Outlook and guidance

• FY2026 net sales expected to decline 13–14% year-over-year, or ~5% when adjusting for prior-year order acceleration.

• Q3 net sales expected to decline ~8% year-over-year.

• Gross margin for Q3 and full year projected at 42–43%, reflecting tariff amortization.

• Adjusted EBITDA for FY2026 expected at 4–4.5% of net sales, with improvement anticipated in fiscal 2027 as tariff mitigation takes effect.

• Long-term goal to double net sales to $400M, targeting ~30% EBITDA margin above $200M in sales.