Financial Data and Key Metrics Changes - The company reported net revenue from continuing operations of $18.2 million for 2025, an 81% year-over-year increase compared to $10.1 million in 2024, exceeding previous guidance of $16.5 million [11] - Gross Merchandise Volume (GMV) grew 411% year-over-year, driven by the growth of the payments business [12] - General and administrative expenses were reduced by $9.9 million or 26% compared to the prior year, while R&D expenses increased by $1.9 million [14] Business Line Data and Key Metrics Changes - Financial technology, including payment processing via PSQ Payments and credit offerings via Credova, earned $7.3 million in net revenue, a 109% increase from the prior year [12] - The credit business revenue in Q4 increased by $1.5 million or 47% year-over-year to $4.8 million [13] - Repeat customer rates for the Credova platform increased by 25% compared to 2024, indicating stronger customer engagement [13] Market Data and Key Metrics Changes - The firearms industry showed growth despite broader market softness, with December 2025 NSSF Adjusted NICS checks declining approximately 3.4% year-over-year [5] - The company is focusing on underserved industries, particularly those moving towards e-commerce infrastructure, benefiting its payments and credit businesses [5] Company Strategy and Development Direction - The company is simplifying operations and focusing on financial infrastructure, emphasizing operational accountability and cash efficiency [4] - The strategic focus includes leveraging AI to improve underwriting performance and operational efficiency [7] - The company aims to build a more integrated financial platform for merchants and consumers, moving away from traditional payment rails [8][9] Management's Comments on Operating Environment and Future Outlook - Management believes the current operating environment presents opportunities for growth in fintech, particularly in underserved markets [4] - The company expects to see significant disintermediation across the payments ecosystem, allowing for more efficient systems and reduced transaction costs [8] - Management is optimistic about achieving profitability in the near term through cost reductions and improved revenue per employee [6] Other Important Information - The company incurred approximately $250,000 in cash severance expense in Q4, with expectations of recognizing one-time severance costs in the first half of 2026 [6] - The company had $16.1 million of cash and restricted cash as of December 31, 2025, with a net cash decrease of $14.2 million during the year [17] Q&A Session Summary Question: Why was now the appropriate time for the management change? - The management change was a deliberate decision made by the Board to align with the strategic pivot into fintech, leveraging the new CEO's background in financial technology [23] Question: How will the go-to-market strategy change for the company's fintech efforts? - The strategy will focus on executing what is already working, tapping into market demand for financial infrastructure and credit products [26] Question: What are the capital priorities for the company? - The focus is on running a capital-efficient business, improving revenue per employee, and moving towards profitability before considering debt repayment or strategic M&A [29] Question: Where do you see the biggest opportunity for payments and credit? - The company sees opportunities in the 501(c)(3) and 501(c)(4) space, as well as in the lending industry, where traditional fintech has been hesitant [35] Question: Is a digital asset strategy still part of the portfolio? - The focus is on stablecoins and new payment rails, aiming to improve transaction speed and reduce costs for merchants [38] Question: How will AI be integrated into the business? - AI will be used internally to enhance productivity and externally to improve compliance and efficiency in lending and payments [41] Question: How will proceeds from the divestiture be used? - Proceeds will be used to execute the product roadmap and improve unit economics, focusing on accretive revenue [46] Question: What KPIs should be followed to measure success? - Key metrics include top-line growth, adjusted EBITDA loss reduction, operating cash flow, and revenue per employee [48]

Financial Data and Key Metrics Changes - The company reported net revenue from continuing operations of $18.2 million for 2025, an 81% year-over-year increase compared to $10.1 million in 2024, exceeding previous guidance of $16.5 million [11] - Gross Merchandise Volume (GMV) grew 411% year-over-year, driven by the growth of the payments business [12] - General and administrative expenses were reduced by $9.9 million or 26% compared to the prior year, while R&D expenses increased by $1.9 million [14][15] - The operating loss for 2025 was narrowed to $32 million, with a notable improvement in the operating loss of $9.7 million for Q4 compared to the prior year [15][18] Business Line Data and Key Metrics Changes - Financial technology, including payment processing via PSQ Payments and credit offerings via Credova, earned $7.3 million in net revenue, a 109% increase from the prior year [12] - The credit business revenue in Q4 increased by $1.5 million or 47% year-over-year to $4.8 million [13] - Repeat customer rates for the Credova platform increased by 25% compared to 2024, indicating stronger customer engagement [13] Market Data and Key Metrics Changes - The firearms industry showed a decline of approximately 3.4% year-over-year in December 2025, but the company's business continued to grow, indicating a structural market shift rather than a contraction [5] - The company is focusing on underserved industries, particularly in the fintech space, which is expected to benefit from younger digital-first buyers [5][8] Company Strategy and Development Direction - The company is simplifying its operations and focusing on financial infrastructure, with four core themes: strategic focus, operational accountability, cash efficiency, and higher revenue per employee [4] - The strategy includes leveraging AI to improve productivity and underwriting performance, with plans to expand AI applications across various business areas [7][40] - The company aims to build a more integrated financial platform designed specifically for merchants and consumers, moving away from legacy payment systems [8][9] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of executional discipline and strategic focus, with a commitment to reducing operating cash burn while efficiently growing the fintech platform [11] - The company expects significant disintermediation in the payments ecosystem, creating opportunities for new platforms that provide integrated financial services [8] - Management expressed confidence in the company's ability to deliver long-term shareholder value through market share growth and operational discipline [18] Other Important Information - The company incurred approximately $250,000 in cash severance expense in Q4, with expectations of lower cash burn in the coming quarters [6] - The company is evaluating divestitures, particularly in the Impact platform, and is in discussions regarding the EveryLife business [9] Q&A Session Summary Question: Why was now the appropriate time for the management change? - The management change was a deliberate decision made by the board to align with the strategic pivot into fintech, leveraging the new CEO's background in financial technology [23] Question: How will the go-to-market strategy change for the company's fintech efforts? - The strategy will focus on executing what is already working, tapping into market demand for financial infrastructure and credit products [26] Question: What are the capital priorities for the company? - The focus is on running a capital-efficient business, driving revenue per employee, and moving towards profitability before considering debt repayment or strategic M&A [29] Question: Where do you see the biggest opportunity in payments and credit? - The company sees opportunities in areas traditionally avoided by fintech, such as the 501(c)(3) and 501(c)(4) space, and the lending industry [35] Question: Is a digital asset strategy still part of the portfolio? - The focus is on stablecoins and new payment rails, aiming to improve transaction speed and reduce costs for merchants [38] Question: How will AI be integrated into the business? - AI will be used internally to enhance productivity and externally in consumer lending, with a comprehensive strategy being developed [40][42] Question: How will proceeds from the sale of the brand segment be used? - Proceeds will be used to execute on the product roadmap and improve unit economics, focusing on accretive revenue [46][47] Question: What KPIs should be followed to measure success? - Key metrics include top-line growth, adjusted EBITDA loss reduction, operating cash flow efficiency, and revenue per employee [48]

Financial Data and Key Metrics Changes - The company reported net revenue from continuing operations of $18.2 million for 2025, an 81% year-over-year increase compared to $10.1 million in 2024, exceeding previous guidance of $16.5 million [11] - Gross merchandise volume (GMV) grew 411% year-over-year, driven by the growth of the payments business [12] - Operating loss improved to $9.7 million in Q4 2025, compared to a $32 million operating loss for the year, with $16.7 million of the loss related to non-cash stock-based compensation and depreciation [15] Business Line Data and Key Metrics Changes - Financial technology revenue, including payment processing and credit offerings, reached $7.3 million in Q4 2025, a 109% increase from the prior year [12] - Credit business revenue in Q4 increased by $1.5 million or 47% year-over-year to $4.8 million [12] - Repeat customer rates for the Credova platform increased by 25% compared to 2024, indicating stronger customer engagement [12] Market Data and Key Metrics Changes - The firearms industry showed growth despite broader market softness, with a 3.4% year-over-year decline in NSSF adjusted NICS checks in December 2025 [5] - The company is focusing on underserved industries, particularly in e-commerce, which benefits its payments and credit businesses [5] Company Strategy and Development Direction - The company is simplifying its operations and focusing on financial infrastructure, with four core themes: strategic focus, operational accountability, cash efficiency, and higher revenue per employee [4] - The strategy includes leveraging AI to improve underwriting performance and operational efficiency, with a goal of increasing revenue per employee significantly throughout 2026 [6][7] - The company is evaluating divestitures of non-core assets and focusing on building an integrated financial platform for merchants and consumers [9][10] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of executional discipline and strategic focus, with a commitment to reducing operating cash burn while growing the financial technology platform [11] - The company expects to see significant disintermediation in the payments ecosystem, creating opportunities for new platforms that provide integrated financial services [8] - Management expressed confidence in the company's ability to deliver long-term shareholder value through operational discipline and market share growth [18] Other Important Information - The company reduced SG&A expenses by $9.9 million year-over-year, reflecting strong expense discipline [14] - Cash and restricted cash as of December 31, 2025, totaled $16.1 million, with net cash for operating activities decreasing by $14.2 million during 2025 [17] Q&A Session Summary Question: Why was now the appropriate time for the management change? - The management change was a deliberate decision made by the board to align with the strategic pivot into Fintech, leveraging the new CEO's background in financial technology [22] Question: How will the go-to-market strategy change for the company's fintech efforts? - The strategy will focus on executing what is working, particularly in credit and payment products for underserved industries [25][26] Question: What are the capital priorities moving forward? - The focus will be on running a capital-efficient business, driving revenue per employee, and moving towards profitability before considering debt repayment or strategic M&A [27][28] Question: Where do you see the biggest opportunity in payments and credit? - The company sees opportunities in the 501(c)(3) and 501(c)(4) space, as well as in the lending industry, where traditional fintech has shied away [34][35] Question: What is the focus regarding digital assets? - The focus is on stablecoins and new payment rails that can improve transaction speed and reduce costs for merchants [37] Question: How will AI be integrated into the business? - AI will be used internally to increase cognitive capacity and improve efficiency, with a comprehensive strategy being developed [39][40] Question: How will proceeds from the sale of the brand segment be used? - Proceeds will be used to execute the product roadmap and focus on revenue that has good unit economics [45][46] Question: What KPIs should be followed to measure success? - Key metrics include top-line growth, adjusted EBITDA loss reduction, operating cash flow, and revenue per employee [47][48]