Outdoor Holding Company (POWW)
Description
A vertically integrated producer of high-performance ammunition and operator of Gunbroker, an e-commerce marketplace dedicated to firearms, shooting sports accessories and related outdoor gear.
Historical Reports
Financial Information
- Report Date
- 2025-06-25
- Report Period
- Fiscal Year Ended March 31, 2025
- Debt
- $10.8 million
- Debt History
- Debt increased by approximately 1% year-over-year (from $10.7M to $10.8M).
- Debt Trend
- Increasing
Profit Information
- Profit
- −$65.2 million net loss (continuing operations)
- Profit History
- Net loss widened by approximately 1120% year-over-year (from −$5.35M to −$65.2M).
- Profit Trend
- Decreasing
Detailed Report
Outdoor Holding Company 10-K Financial Analysis
Report Date: June 25, 2025
Period Covered: Fiscal Year Ended March 31, 2025
Profit & Loss Overview
- Net revenue declined 8.4% to $49.40 million (FY2025 vs. FY2024’s $53.94M).
- Cost of revenue fell to $6.47 million (13.1% of net revenue), delivering a gross margin of 87.0% (vs. 85.8%).
- Operating expenses surged to $102.65 million, driven by $29.07M in litigation contingencies, $8.64M in restatement investigation, and $4.36M in stock-based compensation.
- Continuing-operations net loss of $65.22 million vs. a loss of $5.35M in FY2024.
Debt & Liquidity
- Total debt at year-end comprised a $10.8M construction loan (fully repaid April 2025) and $0 drawn on a $20M revolving line.
- Cash and cash equivalents fell to $30.23M from $55.59M a year earlier.
- Working capital remains positive at $10.06M, but cash burn in FY2025 was $5.06M from operations.
Key Drivers of Loss
- Litigation & Restatement Charges: $29.1M provision for the Urvan litigation settlement and $9.9M in SEC investigation costs weighed heavily.
- Investigation & Special Committee Costs: $8.6M due to accounting restatements and governance reviews.
- Discontinued Operations: The ammunition segment sale generated a $67.2M loss on disposal, classified as discontinued.
Pros & Cons
Pros:
- Strong marketplace gross margins near 87%.
- Platform enhancements (multi-item cart, analytics, advertising tools) support user engagement.
- Sale of ammunition manufacturing unlocks $429M net proceeds for reinvestment.
Cons:
- Heavy non-recurring expenses related to litigation, restatements and governance drive operating losses.
- Exposure to regulatory, cybersecurity and market-risk in the firearms industry.
- High cash burn with modest operating cash generation.
Statistics Breakdown
FY2025 net revenue of $49.40M comprised: auction and final-value fees; compliance fees; banner advertising; payment processing fees; and shipping fees. Cost of revenue was $6.47M (13.1%). Gross profit of $42.93M (87.0% margin). Operating expense mix: 42% legal and investigation fees, 17% salaries and benefits, 13% depreciation & amortization, 28% other G&A and marketing.
Company Direction Insights
Outdoor Holding Company is pivoting to a pure-play marketplace model after the ammunition segment sale. The core Gunbroker platform has high margins but remains loss-making due to one-time settlement and restatement charges. Future growth hinges on user acquisition, product expansion into data/analytics services and monetization of advertising tools. Key challenges include regulatory headwinds in the firearms market, cybersecurity risks, and the need to stabilize cash flow. If operating expenses normalize and litigation costs abate, the company could leverage its scaled user base and high-margin infrastructure to return to profitability over the next 12–18 months.