Financial Performance - Net sales for fiscal 2025 were $222.3 million, an increase of $21.2 million, or 10.6%, compared to fiscal 2024, primarily due to growth in the traditional channel [272]. - Gross profit for fiscal 2025 was $99.3 million, with a gross margin of 44.6%, an increase of 60 basis points from the prior fiscal year [271]. - The company reported a net loss of $77,000, or ($0.01) per diluted share, significantly improved from a net loss of $12.2 million, or ($0.94) per diluted share, in fiscal 2024 [290]. - Non-GAAP Adjusted EBITDA for fiscal 2025 was $17.7 million, up from $9.8 million in the previous fiscal year [272]. - Non-GAAP Adjusted EBITDA for fiscal year 2025 was $17.7 million, a 80.7% increase from $9.8 million in fiscal year 2024 [293]. Sales Channels - Traditional channel net sales increased by $21.1 million, or 18.1%, driven by higher sales of shooting accessories and outdoor lifestyle products [277]. - International net sales rose by $2.4 million, or 20.0%, primarily due to increased sales in Canada and European markets [277]. - New products accounted for 21.5% of net sales in fiscal 2025, down from 23.2% in fiscal 2024, with over 200 new SKUs introduced annually [278]. Operating Expenses and Cash Flow - Operating expenses decreased by $1.5 million, with research and development expenses increasing by 12.5% to $7.7 million [282]. - Cash generated from operating activities decreased to $1.4 million in fiscal 2025, down 94.5% from $24.5 million in the prior fiscal year [297]. - Total cash flow for fiscal 2025 was $(6.3) million, a decline of 181.0% compared to $7.7 million in fiscal 2024 [297]. - Cash equivalents on hand as of April 30, 2025, were $23.4 million, down from $29.7 million in 2024 [296]. - Cash used in investing activities was $3.9 million in fiscal 2025, a decrease of 34.8% from $6.0 million in fiscal 2024 [301]. - Cash used in financing activities was $3.7 million in fiscal 2025, significantly lower than $10.8 million in the prior fiscal year [302]. Inventory and Obligations - The company had an order backlog of $2.6 million as of April 30, 2025, which was $1.4 million lower than the previous year [279]. - The company expects inventory to increase in Q1 of fiscal 2026 due to purchases for new product launches and seasonal demand [300]. - Total contractual obligations as of April 30, 2025, amounted to $80.1 million, with $33.6 million due within one year [314]. Financial Resources and Risks - Interest income increased to $60,000 in fiscal 2025, compared to $39,000 in fiscal 2024, with no borrowings on the revolving line [286]. - The company has a $75.0 million credit facility available, with no borrowings outstanding as of April 30, 2025 [294]. - The company is assessing the impact of inflation on gross margins and operating expenses, which may affect future results [305].
American Outdoor Brands(AOUT) - 2025 Q4 - Annual Report