Outdoor Holding Company (POWWP) Q1 2026 Earnings Report

Outdoor Holding Company, issuing the 875 Series A Cumulative Redeemable Perpetual Preferred Stock (POWWP), reported QQ1 2026 results showing a pronounced revenue decline from the prior year, yet with a surprisingly robust gross margin. Revenue for QQ1 2026 was $11.86 million, down 65.5% year-over-year and down about 61.7% quarter-over-quarter. Despite the top-line weakness, gross profit reached $10.33 million and gross margin stood at 87.2%, indicating favorable product/mix or pricing dynamics on a limited revenue base. However, operating expenses remained a major drag, yielding an operating loss of $6.01 million and a net loss of $6.46 million, translating to an EPS of −$0.0619 for the quarter. EBITDA was negative at $2.00 million and the EBITDARatio stood at −0.169, underscoring ongoing profitability pressures even as the company sustains its balance sheet strength. Cash and liquidity remained solid, with cash and cash equivalents of $63.36 million and total stockholders’ equity of $222.51 million, producing a net cash position (net debt) of −$39.90 million. The company generated a net cash inflow of $33.14 million during the period, yet operating cash flow was negative at −$6.67 million, and free cash flow was −$7.56 million. Investing activities included a large outflow tied to financing/financing-like cash movements (net investing cash outflow of $42.06 million, aided by $42.95 million of other investing activities), while financing activities consumed modest cash of −$0.81 million. The large base of intangible assets (goodwill and intangible assets totaling $186.73 million) alongside a substantial equity base provides resilience but also signals potential impairment risk if the efficiency of the asset base does not improve. Overall, the QQ1 2026 print underscores a transition phase: meaningful near-term profitability pressures persist, but liquidity and balance-sheet strength offer flexibility to manage through the downturn and pursue selective growth initiatives, especially around the GunBroker-originated franchise. The investment outlook hinges on stabilizing revenue, managing operating costs, and monetizing the company’s substantial intangible asset base without compromising liquidity.