GrabAGun Digital Holdings Inc. Reports Q1 2026 Financial Results with $25.9M Revenue and Net Loss

GrabAGun Digital Holdings Inc. reported its financial results for the first quarter of 2026, revealing a net revenue of $25.9 million, an increase of 11.1% from $23.3 million in the same period last year. The growth was primarily driven by a 10% rise in firearm sales, which accounted for $21.7 million, and the introduction of service revenues from its new subsidiary, PEW Logistics, which generated $0.1 million. However, the company experienced a net loss of $1.8 million, compared to a net income of $0.1 million in the prior year, reflecting increased operating expenses and a significant rise in general and administrative costs.

The company's cost of goods sold also increased by 10% to $23.2 million, leading to a gross profit of $2.8 million, up 23% from the previous year. Operating expenses surged to $5.4 million, a 146% increase, largely due to higher payroll and stock-based compensation expenses, as well as costs associated with being a public company. The increase in general and administrative expenses was particularly notable, rising by 162% to $5.1 million, driven by a $1.5 million increase in payroll and related expenses.

In terms of operational metrics, GrabAGun's cash and cash equivalents stood at $106.4 million as of March 31, 2026, down from $110.4 million at the end of 2025. The company reported negative cash flows from operations of $1.7 million for the quarter, a significant decline from the $1.3 million in positive cash flows reported in the same quarter of the previous year. The company’s total liabilities increased to $24.7 million, up from $23.7 million, primarily due to an increase in long-term debt related to its new headquarters.

Strategically, GrabAGun has been expanding its operations, including the formation of PEW Logistics, which aims to modernize the firearms supply chain by providing direct-to-consumer fulfillment solutions. The company also engaged in a stock repurchase program, repurchasing 769,518 shares at a total cost of $2.4 million during the quarter. Looking ahead, GrabAGun's management believes that its existing cash resources, combined with the proceeds from its recent business combination, will be sufficient to fund operations for at least the next twelve months, although they acknowledge the need for ongoing assessment of liquidity based on business performance and market conditions.