Outdoor Holding Company reported on August 10 that its GunBroker marketplace produced $14.5 million in net revenue for the fiscal first quarter ended June 30, 2026, up 22.1% from $11.9 million a year earlier. The company, formerly AMMO, Inc., now operates one reportable segment after selling its ammunition manufacturing assets in April 2025. That makes this quarter a relatively clean look at the marketplace business rather than a blended comparison with an ammunition factory.
The company recorded $12.2 million in gross profit, up from $10.3 million, while gross margin slipped to 84.5% from 87.2%. Operating expenses fell to $8.9 million from $16.3 million. Outdoor Holding reported $3.3 million in operating income and $3.6 million in net income from continuing operations, reversing year-earlier losses of $6.0 million and $5.9 million, respectively. Net income attributable to common shareholders was $2.8 million, or two cents per basic and diluted share.
More transactions, plus a new transfer fee
GunBroker's gross merchandise value, the total value of goods sold through the marketplace, rose 18.1% to about $223.7 million from $189.5 million. Outdoor Holding said firearm unit sales increased 11.6%, compared with a 5.3% rise in adjusted National Instant Criminal Background Check System checks. Its estimated share of that adjusted check activity reached roughly 6.4%, up 41 basis points. Average order value increased 7.5% to $477, while the company's take rate rose 21 basis points to 6.47%.
The take-rate increase was driven by FFL transfer revenue introduced in April. GunBroker charges a variable per-unit fee on transactions requiring a federally licensed dealer transfer, with the amount depending on the seller's membership status. That fee contributed 39 basis points to take rate during its first quarter. Excluding it, the legacy take rate declined to 6.08% from 6.26%. Outdoor Holding attributed that decline to more volume from large sellers receiving discounted fee tiers and to higher-value items, which carry a lower inherent take rate.
The transfer feature is tied to GunBroker's integration with Master FFL, an outside service that centralizes dealer verification and expands the available dealer network. For buyers and sellers, the operational change is a more automated path for selecting and verifying the receiving licensee. It does not remove the licensed-dealer transfer required for regulated firearms. Outdoor Holding said the marketplace has more than 8.9 million users and generates revenue from listing and final-value fees, marketplace service fees, FFL transfer fees, advertising and shipping.
Demand included two unusual boosts
Management said purchasing ahead of Virginia restrictions scheduled for July 1 contributed a meaningful portion of quarterly growth, even though preliminary injunctions prevented the law from taking effect as planned. The company does not assume that pulled-forward activity will repeat in the second quarter. It also reported that gross merchandise value in silencers and suppressed firearms rose about 71% year over year after the federal transfer tax on silencers was reduced to zero. These are company-reported marketplace trends, not nationwide sales measurements. Excluding Virginia, GunBroker said GMV still increased by approximately $23 million.
Operating expenses dropped by $7.4 million. The quarterly filing attributes $3.7 million of that reduction to lower legal and professional fees after the Delaware litigation, a special committee investigation and an accounting restatement; $2.7 million to reduced headcount, restructuring and fewer directors; $600,000 to prior-year sales-tax audit costs that did not recur; and $400,000 to lower stock compensation. Adjusted EBITDA, a company-defined non-GAAP measure, was $7.9 million versus $3.1 million. The release cautions that this measure excludes recurring items including stock compensation and depreciation.
Cash supports platform work and buybacks
Cash and equivalents ended the quarter at $68.8 million, $700,000 above March 31. Operating activities provided $4.4 million in cash, compared with $6.7 million used a year earlier. During the quarter, the company spent $2.0 million repurchasing 1,020,004 common shares at an average $1.98 per share, excluding commissions and fees. It had about $12.0 million left under a $15.0 million authorization that expires January 4, 2027. Outdoor Holding also capitalized $700,000 in marketplace development costs.
Outdoor Holding's next tests are operational rather than announced product launches. Management plans to scale the FFL transfer service, pursue universal payment processing, continue an AI-assisted listing tool and pilot an AI-supported customer-service agent. The filings provide no launch date for universal payments, no dollar breakdown of FFL transfer revenue and no second-quarter forecast. The next quarterly filing should show whether growth holds after Virginia demand normalizes, whether transfer-related startup costs recede as management expects, and how much of the higher take rate survives a different sales mix.
About the Author
Nick Sawinyh - Nick Sawinyh is a father, husband, hobby farmer, and gun enthusiast from Kentucky. He founded GunsNation and writes most of what appears on this blog.
