Outdoor Holding Company, formerly known as AMMO, Inc., reported a significant decline in financial performance for the fiscal year ending March 31, 2025. The company generated net revenues of $49.4 million, a decrease of 8.4% from $53.9 million in the previous fiscal year. The gross profit also fell to $42.9 million, down from $46.3 million, while operating expenses surged to $102.6 million, compared to $52.7 million in the prior year. This resulted in a loss from operations of $59.7 million, a stark contrast to the $6.4 million loss reported in the previous year. The net loss from continuing operations reached $65.2 million, compared to a loss of $5.4 million in the prior year.
A key factor contributing to the financial downturn was the company's decision to sell its Ammunition segment, which was finalized on April 18, 2025, for a gross purchase price of $75 million. The sale was part of a strategic review initiated by the Board of Directors, which concluded that divesting the Ammunition segment would allow the company to focus on its Marketplace operations, primarily through the GunBroker e-commerce platform. The net proceeds from the sale amounted to approximately $42.9 million after adjustments. Following the transaction, the company rebranded itself as Outdoor Holding Company.
Operationally, the GunBroker Marketplace continued to show substantial user engagement, with approximately 8.4 million registered users and an average of 3.67 million daily listings. The company implemented several platform enhancements aimed at improving user experience, including an upgraded shopping cart experience and a redesigned homepage. Despite these improvements, the overall market conditions and reduced discretionary spending among consumers negatively impacted gross merchandise sales, which contributed to the revenue decline.
The company also faced legal challenges, including a significant settlement related to Delaware litigation, which resulted in an estimated liability of $29.1 million. This litigation involved claims against the company and certain directors, which were settled as part of a broader agreement that included the issuance of warrants and promissory notes. The company recorded a substantial increase in legal and professional fees, which further impacted its operating expenses.
Looking ahead, Outdoor Holding Company aims to leverage its Marketplace segment for growth while addressing the challenges posed by ongoing legal matters and market conditions. The company expects that its existing cash reserves and operational cash flows will be sufficient to fund its activities over the next 12 months, although it remains cautious about the potential impacts of regulatory changes and economic fluctuations on its business.
About AMMO, INC.
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