GrabAGun Reports 9% Revenue Growth but $1.8 Million Net Loss in Q2 2026

GrabAGun Digital Holdings Inc. reported its financial results for the second quarter of 2026, revealing a net revenue of $23.2 million, a 9% increase from $21.2 million in the same period last year. For the first half of 2026, the company generated $49.1 million in revenue, up 10% from $44.6 million in the first half of 2025. Despite the revenue growth, GrabAGun experienced a net loss of $1.8 million for the quarter and $3.6 million for the six months ended June 30, 2026, compared to net income of $0.8 million and $0.9 million for the respective periods in 2025.

The increase in revenue was primarily driven by a rise in firearm sales, which grew by $1.5 million, or 8%, in the second quarter, attributed to a 12% increase in average sales prices, although sales volumes decreased by 4%. Non-firearm sales also saw a 7% increase, while service revenues from the newly launched PEW Logistics contributed $0.2 million in the second quarter. However, the cost of goods sold rose by 6% to $20.1 million, leading to a gross profit of $3.1 million, a 39% increase compared to the previous year.

Operating expenses surged significantly, with total operating expenses reaching $5.7 million for the quarter, a 290% increase year-over-year. This rise was largely due to increased general and administrative costs, which included a $1.6 million increase in employee compensation and a $0.5 million rise in stock-based compensation. The company’s operating loss for the quarter was $2.6 million, compared to an operating income of $0.8 million in the prior year.

As of June 30, 2026, GrabAGun had cash and cash equivalents of $97.5 million, down from $110.4 million at the end of 2025. The company reported negative cash flows from operations of $8.3 million for the first half of 2026, a significant decline from the positive cash flow of $0.2 million in the same period last year. The company’s total liabilities decreased to $19.2 million from $23.7 million at the end of 2025, primarily due to a reduction in current liabilities.

Looking ahead, GrabAGun aims to leverage its recent growth and expand its market presence, particularly through its PEW Logistics subsidiary, which is designed to modernize the firearms supply chain. The company believes its existing cash resources, combined with proceeds from its recent business combination, will be sufficient to fund operations for at least the next twelve months. However, management acknowledges the need for ongoing evaluation of its liquidity and operational performance as it navigates the evolving market landscape.