AMMO(POWWP) - 2026 Q2 - Quarterly Results

Financial Performance - Net revenues for Q2 fiscal 2026 were $11.98 million, flat year-over-year[5] - Net income from continuing operations reached $1.40 million, a significant improvement from a net loss of $5.87 million in the prior year[5] - Adjusted EBITDA increased to $4.91 million, up 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] - Basic income per share for 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] - Adjusted EBITDA for the three months ended September 30, 2025, was $0.04, up from $0.03 in the same period of 2024, reflecting operational improvements[29] Cost Management - Operating expenses decreased by $6.71 million year-over-year, reflecting the company's cost discipline[8] - Total operating expenses for the three months ended September 30, 2025, were $9,734,055, down from $16,439,324 in the same period of 2024, indicating a significant reduction[28] Cash and Assets - The company ended the quarter with over $65.67 million in cash and cash equivalents, up from $63.36 million[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, from $75,303,066 as of March 31, 2025, showing improved financial health[26] - Shareholders' equity increased 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] - The company achieved a gain on the extinguishment of debt amounting to $801,894 during the three months ended September 30, 2025[28] Market and User Growth - Active user accounts on GunBroker.com increased, contributing to higher average order values and improved seller retention[12] - Firearm GMV increased by 1.2%, driven by a 7.8% rise in used firearm sales, despite a 1.1% decline in total GMV[12] Strategic Focus - Management emphasized a focus on cost efficiency and organic marketplace growth to sustain value creation for shareholders[11] - The company completed its transition to a pure-play e-commerce marketplace operator following the divestiture of its ammunition manufacturing division[6]