Outdoor Holding Company, formerly known as AMMO, Inc., reported significant financial challenges in its latest 10-Q filing for the quarter ending December 31, 2024. The company recorded net revenues of $29.2 million, a decrease of 18.9% from $36.0 million in the same quarter of the previous year. For the nine months ended December 31, 2024, revenues totaled $91.6 million, down 12.5% from $104.6 million in the prior year. The decline in revenue was attributed to decreased demand in both the ammunition and marketplace segments, alongside a shift in operational strategy focusing on higher-margin brass casing production.
The company's gross profit for the quarter was $7.8 million, resulting in a gross margin of 26.7%, down from 30.3% a year earlier. This decline was primarily due to increased costs of materials, labor, and overhead in the ammunition segment. Operating expenses surged to $33.9 million for the quarter, compared to $13.5 million in the same period last year, largely driven by a $10 million settlement contingency and increased legal and professional fees related to ongoing investigations and restatements of financial statements. Consequently, Outdoor Holding Company reported a net loss of $26.1 million for the quarter, compared to a loss of $2.4 million in the prior year.
In terms of strategic developments, the company completed the sale of its ammunition manufacturing business to Olin Winchester, LLC for $75 million on April 18, 2025. This transaction is expected to allow Outdoor Holding Company to focus on its online marketplace, GunBroker, which serves as a significant revenue stream. The company has also made organizational changes, including the hiring of a new Chief Financial Officer and a Vice President of Accounting to strengthen its financial oversight and compliance.
Operationally, Outdoor Holding Company reported a decrease in customer engagement, with 8.3 million users on the GunBroker platform. The company is actively working to enhance its marketplace features, including financing options for buyers and improved analytics services for manufacturers and distributors. Despite the challenges, the company aims to improve profitability through strategic initiatives, including expanding its product offerings and enhancing operational efficiencies.
Looking ahead, Outdoor Holding Company anticipates that existing working capital, cash flow from operations, and potential equity and debt financing will be sufficient to fund its operations over the next 12 months. However, the company remains cautious due to ongoing legal challenges, including a pending SEC investigation and various lawsuits, which could impact its financial condition and operational focus.
About AMMO, INC.
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