American Outdoor Brands, Inc. (AOUT) Q4 2025 Earnings Call Transcript

Net Sales Net sales for the year were $222.3 million, an increase of 10.6% compared to fiscal 2024, driven by growth in every sales channel and category. Traditional channel net sales grew by 18.1%, and e-commerce net sales increased slightly. Domestic net sales increased by almost 10%, while international net sales grew 20% compared to fiscal 2024.

Outdoor Lifestyle Category Sales Net sales grew by 16.2%, driven mainly by sales in BUBBA, MEAT! Your Maker, and BOG brands.

Shooting Sports Category Sales Net sales grew by 3.8% compared to last year, driven mainly by sales in the Caldwell brand.

Q4 Net Sales Net sales in Q4 were $61.9 million, almost 34% above the prior year quarter. Retailers accelerated order placements in the last few weeks of Q4, pulling forward approximately $8 million to $10 million of net sales originally included in fiscal 2026.

Gross Margin Fiscal 2025 gross margins increased 60 basis points over fiscal 2024 to 44.6%, mainly due to higher sales volumes partially offset by higher tariff and freight costs.

Operating Expenses GAAP operating expenses totaled $99.4 million, a slight decrease from $100.9 million in the prior year. As a percentage of net sales, operating expenses reduced from 50% to 45%, reflecting a 500 basis point improvement driven by lower intangible amortization and reduced legal expenses.

Adjusted EBITDA Full year adjusted EBITDA in fiscal 2025 was $17.7 million, up 80.8% over fiscal 2024.

Non-GAAP EPS Non-GAAP EPS in fiscal 2025 was $0.76 compared to $0.32 in fiscal 2024.

Cash and Debt Ended the year with cash of $23.4 million and no debt. Generated cash from operations of $1.4 million, which was lower than last year due to increased accounts receivable and inventory investments.