Outdoor Holding Company (NASDAQ: POWW) reported third‑quarter fiscal 2026 results that surpassed analyst expectations, with net revenues of $13.39 million—up 7 % year‑over‑year—and earnings per share of $0.01, a $0.04 or 133 % beat over the consensus estimate of a $‑0.03 loss. The upside was driven by disciplined cost management and a favorable mix shift toward higher‑margin firearm sales, which grew 8 % sequentially.
The company’s operating expenses fell by $21.76 million, the largest reduction in a decade, largely because of the resolution of long‑standing legal disputes and a 1.4 million‑dollar cut in corporate headcount, legal spend, and facilities costs. This aggressive cost discipline lifted the adjusted EBITDA margin to 49 % of net sales, up from 46 % in the prior quarter.
Cash and cash equivalents rose to $69.9 million, up $4.2 million from the end of September 2025, reflecting the company’s post‑divestiture liquidity strategy and the cash generated by the marketplace’s strong operating performance.
Segment analysis shows that GunBroker.com, the company’s core marketplace, delivered the bulk of the revenue growth. Firearm unit sales increased 8 % sequentially, while non‑firearm GMV declined, shifting the mix toward higher‑margin firearm transactions. The company’s focus on a “pure‑play” e‑commerce model has allowed it to right‑size its workforce and streamline operations.
Management reiterated its confidence in the business, targeting a $25 million Adjusted EBITDA run rate before the next 12‑month period. CEO Steven Urvan emphasized that the company’s streamlined marketplace model and cost discipline are key to sustaining profitability, while CFO Paul Kasowski highlighted that net income of just under $1.5 million in Q3 reflects the combined impact of revenue growth and expense reductions.
Analysts noted the earnings beat and praised the company’s disciplined cost management, citing the strong performance of the GunBroker.com marketplace as a positive tailwind for future growth.
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