Outdoor Holding Company, the owner of GunBroker.com, the online marketplace, reported a profit against a loss in the fiscal second quarter ended September 30, due to lower expenses. Revenues were flat in the period.

Financial Highlights

  • Net Revenues of $11.98 million, flat year-over-year
  • Cost of Revenues decreased to $1.54 million from $1.57 million.
  • Gross profit margin increased to approximately 87.1 percent compared to 86.9 percent.
  • Operating expenses decreased $6.71 million year-over-year.
  • Net income from continuing operations of $1.40 million, compared to a net loss from continuing operations of ($5.87) million, representing the company’s first quarterly profit following several periods of net losses.
  • Adjusted EBITDA (1) of $4.91 million compared to $3.95 million,
  • Improved diluted EPS from continuing operations to $0.01 from ($0.06),

Operational Highlights

  • Regained full compliance with Nasdaq continued listing rules.
  • Continued corporate restructuring and operational streamlining.
  • Relocated corporate headquarters to Atlanta, GA.
  • Reduced operating expenses and improved cost discipline.
  • Reported positive net income and cash flow, increasing overall liquidity.
  • Increased registered GunBroker user accounts and active listings.
  • Enhanced GunBroker.com user experience.
  • Positioned operations for sustainable profitability.

“Our second quarter results demonstrate that our strategic transformation is delivering results,” said Steve Urvan, chairman and CEO of Outdoor Holding. “By streamlining operations, reducing costs, and investing in modernizing GunBroker.com, we’re building a more agile, focused, and growth-oriented organization. The progress we’ve made underscores our team’s ability to adapt, execute, and position the company for sustainable, profitable growth that creates lasting value for our stockholders.”

During the quarter, the company completed all remaining obligations related to the divestiture of its ammunition manufacturing division and finalized its rebranding, marking the culmination of its transition into a pure-play e-commerce marketplace operator. The company stated that it is “executing a disciplined strategy centered on operational efficiency, margin expansion and digital innovation.”

Outdoor Holding continued, “The transformation is unlocking post-divestiture efficiencies, improving capital allocation, and positioning the company to better capture growth opportunities in its core marketplace platform. Management continues to prioritize initiatives designed to drive gross merchandise value (GMV) growth, enhance platform monetization, and optimize the user experience.”

Year-over-year, the company reported that net revenue remained consistent at $11.98 million, while gross margin improved to 87.1 percent, reflecting increased efficiency and a higher mix of premium seller services. Operating expenses declined by $6.71 million year-over-year, reflecting the company’s cost discipline and its transition to an asset-light, marketplace-only model. Management expects the elevated legal and professional services expenses in recent periods to gradually decline.

Compared to the prior year period, the company’s key marketplace performance indicators in the second fiscal quarter of 2026 showed continued momentum:

Firearm Sales increased over 3 percent despite adjusted NICS checks being down 5 percent compared to the same three months in the prior year.

  • Total GMV demonstrated resilience in a soft market with a decrease of (1.1 percent), but firearm GMV increased by 1.2 percent, reported to be driven by a 7.8 percent increase in used firearm sales.
  • Take rate (net revenue as a percentage of GMV) increased because of improved platform monetization and an increasing mix of high-margin seller services.
  • Active listings and average order value both grew year-over-year.

The company also introduced several platform upgrades during the quarter, including improved search functionality, enhanced seller programs and analytics and refined buyer personalization algorithms. Outdoor Holding said these efforts have contributed to higher average order values, stronger buyer satisfaction and improved seller retention.

The company ended the quarter with a net income from continuing operations of $1.40 million, marking a turnaround from numerous quarters of net losses. Adjusted EBITDA improved year-over-year to $4.91 million compared to $3.95 million in the prior year period. The company ended the quarter with an improved liquidity position, holding over $65.67 million in cash and cash equivalents, compared to $63.36 million as of June 30, 2025. Achieving positive net income and increasing cash reserves represent critical milestones in the company’s transformation, underscoring the success of its disciplined approach to profitability, efficiency, and balance sheet strength.

Management reported that it remains confident in the company’s strategy and execution, emphasizing a continued focus on cost efficiency, disciplined capital allocation and organic marketplace growth. Noting it is “well-positioned to leverage its strengthened balance sheet and platform investments to deliver sustained value creation for its shareholders.”

Discontinued Operations
As previously disclosed, in April 2025, the company completed the sale of all assets related to its business of designing, manufacturing, marketing, distributing, and selling ammunition and ammunition components, along with certain related assets and liabilities. Following the Transaction, the company continues to operate its online e-commerce marketplace business, GunBroker.com.

Image courtesy Gunbroker.com