American Outdoor Brands(AOUT) - 2025 Q3 - Quarterly Results

Financial Performance - Net sales for Q3 FY2025 were $58.5 million, an increase of 9.5% year-over-year from$ 53.4 million[4] - Non-GAAP net income was $2.7 million, or$ 0.21 per diluted share, compared to $1.0 million, or$ 0.08 per diluted share, in the prior year[4] - Non-GAAP Adjusted EBITDAS reached $4.7 million, representing a 99.1% increase year-over-year[4] - Net sales for the three months ended January 31, 2025, were$ 58,505 million, an increase of 9.8% compared to $53,425 million for the same period in 2024[16] - Operating income for the three months ended January 31, 2025, was$ 303 million, a significant recovery from an operating loss of $2,883 million in the same quarter of 2024[16] - Non-GAAP net income for the nine months ended January 31, 2025, was$ 8,348 million, compared to $4,391 million in 2024, representing an increase of 89.5%[19] - The company’s diluted net income per share for the nine months ended January 31, 2025, was$ 0.07, recovering from a loss of $0.53 per share in the same period of 2024[19] Sales Guidance and Outlook - The company increased its FY2025 net sales guidance to a range of$ 207 million to $210 million[7] - The FY2026 net sales outlook is projected to be between$ 220 million and $230 million[7] Gross Margin and Profitability - Gross margin improved to 44.7%, up 200 basis points from 42.7% in the same quarter last year[4] - Gross profit for the nine months ended January 31, 2025, was$ 73,955 million, up from $69,043 million in 2024, reflecting a growth of 5.3%[16] - Non-GAAP operating income for the three months ended January 31, 2025, was$ 3,637 million, compared to $1,316 million in 2024, showing a substantial increase of 176.5%[19] - Total operating expenses for the nine months ended January 31, 2025, were$ 73,156 million, a decrease from $76,033 million in 2024, reflecting a reduction of 3.7%[16] Cash Flow and Financial Position - The company ended the quarter with$ 17.1 million in cash and no debt, having repurchased approximately $1.2 million of its common stock[6] - Cash flows from operating activities for the nine months ended January 31, 2025, resulted in a net cash used of$ 6,396 million, a decrease from $9,823 million provided in the same period of 2024[18] - The company reported a net decrease in cash and cash equivalents of$ 12,628 million for the nine months ended January 31, 2025, compared to a decrease of $6,060 million in 2024[18] Product Development and Strategy - Traditional channel net sales increased by 9.6%, while e-commerce and domestic channels saw increases of 9.5% and 10.1%, respectively[4] - New product launches included the Caldwell ClayCopter™ and BUBBA SFS Lite™, generating positive market response and retailer enthusiasm[6] - The company emphasized its long-term strategy to leverage innovation for market expansion and brand awareness[6] Research and Development - Research and development expenses for the three months ended January 31, 2025, were$ 1,947 million, up from $1,792 million in the same period of 2024, indicating a growth of 8.7%[16]