Executive Summary
Outdoor Holding Company, through its AMMO Inc segment historically, reported QQ4 2024 results showing a revenue base of approximately $40.4 million and a net loss of about $5.33 million, reflecting ongoing margin pressures from a shift in sales mix and ongoing capacity infill in the ammunition manufacturing division. The quarterly gross margin of 14.8% was dragged lower by weaker mix despite GunBrokerâs steady, margin-rich contribution. Management stressed that margins in the rifle casing/large-caliber production are being optimized through a 30+ week operations-improvement engagement designed to increase throughput and reduce overhead absorption as capacity scales. Net cash from operations of roughly $4.3 million for the quarter, plus a robust ending cash balance of about $55.6 million, supported a free cash flow generation of approximately $1.85 million and a net cash position of roughly $42.5 million (net debt negative) at period end, highlighting strong liquidity amidst a backdrop of profitability normalization efforts.
Strategically, the company highlighted a multi-year transformation centered on GunBroker expansion and ammunition manufacturing capacity upgrades. Notably, GunBrokerâs ecosystem enhancements included the Collector's Elite platform, a broadened financing pathway via Gearfire Capital, and a 71% Net Promoter Score (NPS) signaling strong community engagement. In ammunition, management indicated early signs of margin improvement as rifle casing production ramps, with an expected 30-40% uplift in rifle casing manufacturing by year-end, anticipated to materialize in Q2-Q3 2025. Management underscored a disciplined pathway to profitability for the Ammunition division, while remaining cautious on near-term guidance, reiterating that no formal forecast was provided but a constructive profitability trajectory is expected as production capacity comes online and overhead is absorbed more efficiently.
Key Performance Indicators
QoQ: -45.19% | YoY:-49.84%
QoQ: -139.05% | YoY:-76.70%
QoQ: -224.39% | YoY:-81.21%
QoQ: -49.67% | YoY:-78.88%
Key Insights
Revenue: $40.42M (Q4 2024); YoY change: -7.5%; QoQ change: +12.3% (per reported metrics)
Gross profit: $5.97M; gross margin 14.78%; YoY margin change: -49.8%; QoQ: -45.2%
Operating income: -$6.16M; operating margin -15.24%; YoY: -76.7%; QoQ: -139.1%
Net income: -$5.33M; net margin -13.19%; YoY: -81.2%; QoQ: -224.4%
EPS: -$0.0449; diluted -$0.0449; YoY EPS change: -78.9%; QoQ: -49.7%
EBITDA: -$1.824M; EBITDA margin around -4.5%
Cash flow from operations: $4.31M for the quarter; Free cash flow: $...
Financial Highlights
Revenue: $40.42M (Q4 2024); YoY change: -7.5%; QoQ change: +12.3% (per reported metrics)
Gross profit: $5.97M; gross margin 14.78%; YoY margin change: -49.8%; QoQ: -45.2%
Operating income: -$6.16M; operating margin -15.24%; YoY: -76.7%; QoQ: -139.1%
Net income: -$5.33M; net margin -13.19%; YoY: -81.2%; QoQ: -224.4%
EPS: -$0.0449; diluted -$0.0449; YoY EPS change: -78.9%; QoQ: -49.7%
EBITDA: -$1.824M; EBITDA margin around -4.5%
Cash flow from operations: $4.31M for the quarter; Free cash flow: $1.85M;
Cash and equivalents: $55.6M; Net cash position (net debt): about -$42.5M
Current ratio: 4.25; Quick ratio: 2.78; Debt/Total capitalization: ~3.54%; Net debt to EBITDA not provided but net cash position is favorable
Cash flow metrics per share: CFO per share $0.0363; FCF per share $0.0156
Valuation takeaways: P&L is current-year negative, but liquidity and working capital are strong, with a clear prioritization on capacity expansion and platform monetization; no formal 2025 revenue guidance yet, but management emphasized a profitability path linked to capacity ramp and cost normalization.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
40.42M |
-7.47% |
12.26% |
| Gross Profit |
5.97M |
-49.84% |
-45.19% |
| Operating Income |
-6.16M |
-76.70% |
-139.05% |
| Net Income |
-5.33M |
-81.21% |
-224.39% |
| EPS |
-0.04 |
-78.88% |
-49.67% |
Key Financial Ratios
operatingProfitMargin
-15.3%
operatingCashFlowPerShare
$0.04
freeCashFlowPerShare
$0.02
dividendPayoutRatio
-14.5%
priceEarningsRatio
-14.92
Management Commentary
Theme: Strategy and Execution
- Quote: âWe have never been more poised for successâ and âstrong path to profitability in the coming quarters for the Ammunition divisionâ (management tone on trajectory and confidence).
- Quote: âwe launched our cart platform in March of 2024â and âCollectorâs Eliteâ; âGearfire Capitalâ financing partnerships to broaden buyer options on GunBroker. These initiatives are meant to lift transaction value, improve conversion, and broaden financing options for buyers and retailers.
Theme: Operational Improvement and Capacity Ramp
- Quote: âThis engagement is a 30-plus week, around the clock engagement⌠universal lift of the factory where no stone will go unturnedâ describing the Brooks-led production optimization program focused on material flows, setup, and SIOP process to drive throughput.
- Quote: âBy the end of the year, we expect roughly a 30% to 40% increase in rifle casing manufacturing⌠weâll see that in Q2 and Q3.â
Theme: Market Conditions and Product Mix
- Quote: âmeasurable softness in the market has resulted in a decrease in firearm sales, but we have not seen a decrease in premium rifle ammunition demand, rifle casings, or for calibers that feed the emerging lever action at rifle category.â
- Quote: âPropellant production will impose constraints⌠giving AMMO, Inc., and the markets some breathing room at the retail shelfâ indicating external cost pressures and supply-side considerations.
Theme: Financial Position and Guidance
- Quote: âwe are well positioned financially heading into fiscal 2025 given our strong net working capital position, as we have reported $131.5 million in current assets ⌠and cash from operations of $32.6 million for the periodâ (cash generation and liquidity emphasis).
- Quote: ânot providing guidance at this timeâ and emphasis on a profitability path rather than a fixed forecast, reflecting execution risk around capacity ramp and cost absorption.
âwe launched our cart platform in March of 2024, and will be bringing other efforts online in Fiscal 2025 like Collector's Elite, a high end auction platform featuring rare and distinct firearms and collectibles, and also additional financing partnerships with Gearfire Capital.â
â Jared Smith (CEO)
âWe have never been more poised for successâŚwe have a strong path to profitability in the coming quarters for the Ammunition division.â
â Jared Smith (CEO)
Forward Guidance
Management elected not to issue formal guidance for 2025 during QQ4 2024 call, citing ongoing capacity expansion and operational improvements as primary drivers of profitability. They highlighted a concrete execution plan: accelerate rifle casing capacity by ~30-40% by year-end 2025, with expected benefits accruing in Q2âQ3 2025 as production scales and overhead is absorbed across a larger volume. The GunBroker platform is also being expanded with new features (Collectorâs Elite) and financing partnerships (Gearfire Capital) to drive gross merchandise value, take rate, and merchant acceptance. The firmâs cadence appears to hinge on successful ramp of casings, improved product marginality via Brooks-consulting engagement, and the monetization of GunBroker enhancements.
Investment risk factors to monitor include: (1) the pace and success of the casing capacity ramp and related overhead absorption; (2) the extent to which premium rifle ammunition demand remains resilient through macroeconomic cycles; (3) material cost volatility in copper and propellants; (4) realization of monetization from financing partnerships and cart initiatives; (5) regulatory and competitive dynamics in firearms-related marketplaces. Key performance indicators to watch are quarterly gross margin progression by product line, casing utilization rates, GunBroker gross merchandise value and take rates, and cash conversion cycle improvements as working capital optimization proceeds.