American Outdoor Brands(AOUT) - 2026 Q2 - Quarterly Results

Financial Performance - Quarterly net sales were $57.2 million, a decrease of $3.0 million, or 5.0%, compared to $60.2 million in the same quarter last year[4] - Quarterly gross margin was 45.6%, down from 48.0% in the comparable quarter last year[4] - Quarterly GAAP net income was $2.1 million, or $0.16 per diluted share, compared to $3.1 million, or $0.24 per diluted share, in the same quarter last year[4] - Quarterly non-GAAP net income was $3.7 million, or $0.29 per diluted share, down from $4.9 million, or $0.37 per diluted share, in the same quarter last year[4] - The company reported a net loss of $4,754,000 for the six months ended October 31, 2025, compared to a net income of $746,000 in 2024[18] - For the six months ended October 31, 2025, GAAP net loss was $(4,754,000), compared to a profit of $746,000 in the same period of 2024[21] Sales and Revenue Outlook - The company expects full fiscal year net sales to decline by 13% to 14% from last year's $222 million, with an underlying decline of approximately 5%[7] - Third quarter net sales are expected to decline approximately 8% year over year[7] - New products drove over 31% of net sales, highlighting the strength of the innovation pipeline[5] - Net sales for the three months ended October 31, 2025, were $57,199,000, a decrease of 4.3% compared to $60,232,000 for the same period in 2024[16] Profitability and Margins - Gross margin for both the full year and the third quarter is expected to be in the range of 42% to 43%[7] - Adjusted EBITDA for the full year is expected to be in the range of 4.0% to 4.5% of net sales[7] - Non-GAAP net income for the three months ended October 31, 2025, was $3,712,000, compared to $4,857,000 in 2024, indicating a decline of 23.5%[20] - GAAP net income for Q2 2025 was $2,075,000, a decrease from $3,111,000 in Q2 2024[21] - Non-GAAP Adjusted EBITDA for Q2 2025 was $6,480,000, down from $7,487,000 in Q2 2024[21] Expenses and Costs - Research and development expenses for the three months ended October 31, 2025, were $1,222,000, down 34.5% from $1,866,000 in 2024[16] - Stock compensation expenses for the six months ended October 31, 2025, totaled $1,499,000, compared to $1,798,000 in the same period of 2024[21] - Interest expense increased to $75,000 in Q2 2025 from $6,000 in Q2 2024[21] - Income tax expense for Q2 2025 was $0, compared to $12,000 in Q2 2024[21] - Other expenses for Q2 2025 were $34,000, consistent with $34,000 in Q2 2024[21] Cash and Assets - The company ended the quarter debt-free with $3.1 million in cash and repurchased approximately 74,000 shares for $662,000[5] - Cash and cash equivalents decreased to $3,111,000 as of October 31, 2025, from $23,423,000 at the beginning of the period[18] - Total current assets remained relatively stable at $171,307,000 as of October 31, 2025, compared to $171,590,000 on April 30, 2025[14] - Total liabilities increased to $70,524,000 as of October 31, 2025, from $68,745,000 on April 30, 2025[14] - The company’s total equity decreased to $170,397,000 as of October 31, 2025, from $177,610,000 on April 30, 2025[14] Depreciation and Amortization - Depreciation and amortization for Q2 2025 was $3,418,000, slightly up from $3,293,000 in Q2 2024[21] Non-recurring Items - Non-recurring inventory reserve adjustment was $0 for both Q2 2025 and Q2 2024[21] - Emerging growth status transition costs were $0 for the six months ended October 31, 2025, compared to $163,000 in the same period of 2024[21]