Outdoor Q3 Earnings Call Highlights

Core Insights - The company reported a strong fiscal Q3 2026, highlighting a return to profitability with significant improvements in key financial metrics [5][7][8] Financial Performance - Adjusted EBITDA increased by 54% to $6.5 million from $4.3 million year-over-year, representing 49% of net sales [1][7] - Net income before discontinued operations was $1.465 million, a significant recovery from a loss of $21.177 million in the prior-year quarter [2][7] - Net sales rose to $13.4 million, up 7% from the previous year, with gross margin remaining high at 87% [4][7] Revenue and Market Metrics - Gross merchandise value (GMV) reached nearly $216 million, with a modest increase in take rate to 6.2% from 6.17% a year earlier [3][7] - The company generated over $4 million in operating cash and ended the quarter with $69.9 million in cash [7][8] Cost Management - Operating expenses fell by approximately $22 million year-over-year, driven by lower litigation costs and a streamlined corporate structure [6][9] - Recurring corporate operating expenses declined by roughly $1.4 million, indicating effective cost management strategies [9] Marketplace Trends - Firearm unit sales increased over 8% from the previous quarter, contributing to a stronger market position despite a decline in non-firearm categories [13][14] - The company attributed its outperformance to enhanced buyer experience and streamlined fulfillment processes [14] Strategic Initiatives - The company announced a partnership with Master FFL to improve the transfer process for regulated products, requiring an investment of approximately $60,000 to $120,000 per month [16][17] - Management is exploring "universal payments" to reduce transaction friction, with about 30% of transactions currently not paid by credit card [17] Future Outlook - The near-term objective is to achieve a $25 million Adjusted EBITDA run rate within the next 12 months while continuing cost optimization and targeted investments [18]