American Outdoor Brands (AOUT) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 net sales were $56.6 million, down 3.3% year-over-year but ahead of expectations, driven by strong retail sell-through and Outdoor Lifestyle growth, while Shooting Sports declined 15%.

• Outdoor Lifestyle brands contributed over 62% of net sales, growing 5.4% year-over-year, led by BOG, MEAT! Your Maker, and BUBBA.

• New products accounted for over 26% of net sales, reflecting a robust innovation pipeline and digital integration.

• GAAP net loss was $4.1 million ($0.32 per share) versus net income last year; non-GAAP net income was $1.5 million.

• Divestiture of the UST camping brand resulted in a $3.4 million non-cash impairment charge.

Financial highlights

• Gross margin was 41%, down 370 bps year-over-year, impacted by tariffs and inventory reserves.

• Adjusted EBITDA was $3.3 million (5.8% margin), down from $4.7 million last year.

• Cash and cash equivalents were $10.4 million at quarter-end, with no debt and a $75 million undrawn credit line.

• Operating cash flow for the nine months was negative, with a net decrease in cash of $13.0 million.

• Share buybacks totaled 181,000 shares in Q3 at an average price of $7.87.

Outlook and guidance

• FY2026 net sales guidance is $191–$193 million, with gross margin expected at 42–43% and Adjusted EBITDA at 4–4.5% of net sales.

• Underlying net sales decline for FY2026 is ~5% after adjusting for prior year pull-forward.

• Long-term target is 25–30% EBITDA margin on net sales above $200 million, with a goal to reach $400 million in net sales.

• Operating expenses are expected to decline for the full year.