Outdoor Holding Company reported a turnaround in its second‑quarter fiscal 2026 results, posting net revenues of $11.98 million—up 6.7% from the $11.23 million consensus estimate—and a net income from continuing operations of $1.40 million, the first positive earnings figure for the company after a series of net‑loss quarters. Adjusted EBITDA rose to $4.91 million from $3.95 million a year earlier, while gross margin expanded to 87.1% from 86.9% in the prior year, reflecting a higher mix of premium seller services and tighter cost control. Operating expenses fell by $6.71 million year‑over‑year, a result of the divestiture of the ammunition division and disciplined cost‑management initiatives. Cash and cash equivalents increased to $65.67 million from $63.36 million at the end of June 2025, giving the company a stronger liquidity position to fund platform upgrades and future growth initiatives.
The revenue beat was driven by a robust performance of the GunBroker.com marketplace, which recorded gross merchandise value (GMV) of nearly $189 million—only a 1.1% year‑over‑year decline—while still maintaining high transaction volumes. The company’s focus on platform enhancements—improved search, seller analytics, buyer personalization, and the rollout of universal payment processing—has attracted more active listings and increased average order values, offsetting macro‑economic softness in discretionary spending. These enhancements also support higher pricing power for premium services, contributing to the margin expansion seen in the quarter.
The EPS beat of $0.01 versus a consensus estimate of –$0.04 was largely a result of the company’s aggressive cost‑control program and the elimination of the ammunition division’s operating costs. The $6.71 million reduction in operating expenses, combined with the higher gross margin, lifted earnings from a prior‑year loss of $5.87 million to a positive $1.40 million. The company’s disciplined capital allocation and focus on core marketplace growth have also helped convert revenue growth into earnings, as reflected in the improved adjusted EBITDA and the positive net income.
Management guidance signals confidence in continued momentum. The company now projects earnings per share of $0.03 for the next quarter and $0.06 for fiscal 2026, with a $0.10 forecast for fiscal 2027. Guidance for revenue and GMV remains flat to modestly positive, reflecting expectations of steady demand in the firearms marketplace and the ongoing impact of platform enhancements. The company’s focus on universal payments and data‑driven seller tools is expected to drive higher engagement and average order values, supporting the outlook for incremental revenue growth.
Steve Irvin, CEO, emphasized the company’s commitment to streamlining operations and enhancing the marketplace: “We are making it easier to list items. We’re working on universal payments to allow credit card payments for 100% of the merchandise that’s for sale on the site.” Chairman and CEO Steve Urvan highlighted the strategic shift: “Our first quarter marks a turning point as we aggressively reshape the business to focus on operational efficiency, core marketplace growth, and disciplined capital allocation. We’ve implemented decisive cost‑reduction measures, realigned our teams, and renewed our commitment to enhancing the GunBroker.com platform.”
The results come after a prior‑year second‑quarter loss of $5.87 million and an EPS of –$0.06, underscoring the significance of the current turnaround. The company has also regained full compliance with Nasdaq’s continued listing rules, reducing regulatory headwinds. While macro‑economic softness in consumer discretionary categories remains a tailwind, the company’s focus on cost discipline, platform innovation, and a lean asset‑light model positions it well to sustain profitability and capture growth in the niche firearms marketplace.
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