AMMO(US:POWW)2025-11-10 12:00Financial Performance - Net revenues for the second quarter of fiscal 2026 were $11.98 million, flat year-over-year [5]. - Net income from continuing operations was $1.40 million, compared to a net loss of $5.87 million in the prior year, marking the first quarterly profit after several periods of losses [5]. - Adjusted EBITDA improved to $4.91 million from $3.95 million year-over-year [10]. - Total net revenues for the three months ended September 30, 2025, were $11,984,314, slightly up from $11,983,021 in the same period of 2024 [28]. - Gross profit for the three months ended September 30, 2025, was $10,441,079, compared to $10,413,710 in the prior year, reflecting a marginal increase [28]. - The company reported a net income of $656,217 for the three months ended September 30, 2025, compared to a net loss of $6,650,845 in the same period of 2024 [28]. - The company achieved an adjusted EBITDA of $0.04 for the three months ended September 30, 2025, compared to $0.03 in the same period of 2024 [29]. - Basic income per share from continuing operations was $0.01 for the three months ended September 30, 2025, compared to a loss of $0.06 in the same period of 2024 [28]. - The company reported a gain on the extinguishment of debt amounting to $801,894 for the three months ended September 30, 2025 [28]. Cost Management - Operating expenses decreased by $6.71 million year-over-year, reflecting improved cost discipline [8]. - Operating expenses for the three months ended September 30, 2025, totaled $9,734,055, down from $16,439,324 in the same period of 2024, indicating a significant reduction [28]. - Management remains focused on cost efficiency, disciplined capital allocation, and organic marketplace growth [11]. Financial Position - The company ended the quarter with over $65.67 million in cash and cash equivalents, up from $63.36 million as of June 30, 2025 [10]. - Total current assets increased to $78,301,114 as of September 30, 2025, from $72,148,138 as of March 31, 2025 [26]. - Total liabilities decreased to $34,857,771 as of September 30, 2025, down from $75,303,066 as of March 31, 2025, showing improved financial health [26]. - Shareholders' equity rose to $235,415,672 as of September 30, 2025, compared to $222,026,563 as of March 31, 2025, indicating growth in company value [26]. Sales Performance - Firearm sales increased by over 3% despite a 5% decline in adjusted NICS checks compared to the same period last year [12]. - Total gross merchandise value (GMV) decreased by 1.1%, but firearm GMV increased by 1.2%, driven by a 7.8% increase in used firearm sales [12]. Compliance and Governance - The company has regained full compliance with Nasdaq Continued Listing Rules [5].