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American Outdoor Brands, Inc. (AOUT)·Q1 2026 Earnings Summary

Executive Summary

  • Q1 FY26 came in below Street on revenue and slightly below on EPS as retailer order pullbacks and a large e-commerce customer’s purchasing reset weighed on results; gross margin expanded despite tariffs. Net sales were $29.7M (-28.7% YoY), non-GAAP EPS was $(0.26) vs consensus $(0.25), and revenue missed $35.8M consensus by ~17% .
  • Management highlighted resilient point‑of‑sale (POS) outperformance vs peers at key retailers (new products = ~29% of sales), but order cadence remained choppy amid tariff uncertainty; e‑commerce declined 35.2% YoY due to one large partner .
  • Gross margin rose 130 bps YoY to 46.7% on pricing, supplier concessions, product redesigns, and mix; adjusted EBITDA margin fell to -10.5% on lower volume leverage .
  • Outlook: Company expects Q2 FY26 net sales down ~15% YoY and is not resuming full-year guidance given tariff/macro fluidity; inventory is targeted at ~$125M in Q2–Q3, ~$120M in Q4 .
  • Potential stock reaction catalysts: magnitude of top-line miss and Q2 guide-down, margin resilience despite tariffs, inventory trajectory into holiday/hunting season, and progress monetizing BUBBA app subscriptions via SCORETRACKER LIVE launch in Spring 2026 .

What Went Well and What Went Wrong

  • What Went Well

    • Gross margin expanded to 46.7% (+130 bps YoY) despite higher tariff costs, supported by pricing, supplier concessions, redesigns, and new product mix; management reiterated confidence in the long-term 25–30% EBITDA contribution model .
    • Consumer pull-through remained strong with new products at ~29% of sales; brands like Caldwell (ClayCopter), BUBBA (Smart Fish Scale Lite), BOG, Grilla, and MEAT! showed strong POS vs peers at traditional retailers .
    • Strategic partnership momentum: BUBBA x Major League Fishing to launch SCORETRACKER LIVE in Spring 2026, expanding recurring subscription potential and tech-enabled ecosystem .

  • What Went Wrong

    • Top-line pressure from retailer order choppiness and tariff-driven purchasing behavior: net sales down 28.7% YoY; e‑commerce -35.2% YoY due to one large partner’s reset .
    • International sales fell 58.2% YoY (−$2.6M), impacted by Canada-U.S. trade concerns; Outdoor Lifestyle (-31.6%) and Shooting Sports (-25.1%) categories declined YoY .
    • Negative operating leverage: Adjusted EBITDA of $(3.1)M (−10.5% margin) and non-GAAP EPS $(0.26), with GAAP EPS $(0.54) as volumes compressed .

Financial Results

MetricQ3 FY25Q4 FY25Q1 FY26 (Actual)Q1 FY26 (Consensus*)Surprise
Revenue ($M)58.5 61.9 29.7 35.8*(6.1) (~−17%)
Gross Margin (%)44.7% 40.9% 46.7% ——
GAAP EPS ($)0.01 (0.08) (0.54) ——
Non-GAAP (Primary) EPS ($)0.21 0.13 (0.26) (0.25)*(0.01)
Adjusted EBITDA ($M)4.73 3.46 (3.12) ——
Adjusted EBITDA Margin (%)8.1% 5.6% (10.5)% ——
YoY Revenue Change vs Q1 FY25——−28.7% ——

Notes: Q3 FY25 ended 1/31/25; Q4 FY25 ended 4/30/25; Q1 FY26 ended 7/31/25.
Estimates and consensus values marked with * are from S&P Global.

Segment, channel, and regional performance (Q1 FY26 YoY):

  • Channels/Categories/Regions:
    • Traditional channel: −24.4% YoY; would have been +15% without Q4 pull-forward .
    • E-commerce: −35.2% YoY (large partner adjusted purchasing) .
    • Shooting Sports: −25.1% YoY .
    • Outdoor Lifestyle: −31.6% YoY .
    • Domestic: ~−25% YoY .
    • International: −58.2% YoY (−$2.6M) .

KPIs and balance sheet

  • New products as % of sales: ~29%
  • Cash and debt: $17.8M cash; no debt .
  • Share repurchases: ~240k shares at $10.47 avg; $4.6M remaining on $10M authorization through Sep-2025 .
  • Inventory: $125.8M at quarter-end (↑$21.1M QoQ), with targeted ~$125M in Q2–Q3 and ~$120M in Q4 .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Net Sales (YoY)Q2 FY26None (no prior Q2 guide)~−15% YoY decline New
Full-Year GuidanceFY26Suspended as of Q4 FY25 Not resuming; premature to issue Maintained suspension
Inventory LevelQ2–Q3 FY26; Q4 FY26None explicit~$125M in Q2–Q3; ~$120M in Q4 New detail
CapExFY26None explicit$4.0–$4.5M New detail
Fully Diluted SharesFY26None explicit~12.9M (ex-buybacks) New detail
Share Repurchase AuthorizationThrough Sep-2025$10M program~$4.6M remaining Updated balance

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 FY25, Q4 FY25)Current Period (Q1 FY26)Trend
Tariffs/macroNoted dynamic tariff environment; retailers accelerated $8–$10M of FY26 orders into Q4; suspended FY26 guide Tariffs remain fluid; pricing, supplier concessions, and redesigns offset; Q2 net sales guide ~−15% YoY Continued headwind; mitigation ongoing
Retailer order cadenceHealthy retail engagement (Q3); pull-forward into Q4 Choppy, on/off replenishment; POS strong vs peers Volatile near term
E-commerce mixQ3: +9.5% YoY e-comm E-comm −35.2% YoY due to one large partner; traditional retailers’ online growing Weaker in Q1; channel mix shifting
Product innovationClayCopter, BUBBA SFS Lite launched (Q3) New products ~29% of sales; more innovation at SHOT Show Strong, ongoing
Subscription/tech (BUBBA app)BUBBA SFS Lite intro (Q3) SCORETRACKER LIVE launching Spring 2026; aim to grow recurring revenue Building runway
InternationalFY25 +20% YoY (full-year) Q1 −58.2% (Canada orders paused) Weaker near term
M&A pipeline—Fewer quality targets; considering launching new brands organically Selective/Patient

Management Commentary

  • “New products represented nearly 29% of our net sales during the first quarter.” — Brian Murphy, CEO .
  • “For Q1, gross margin was 46.7%, up 130 basis points compared to Q1 last year.” — Andy Fulmer, CFO .
  • “We expect…a year-over-year decline in net sales for our second quarter of approximately 15%… it is premature to resume full year guidance.” — Andy Fulmer, CFO .
  • “E-commerce…declining 35.2% year over year” due to a large partner’s purchasing reset tied to tariff impacts — Brian Murphy .
  • “We’re introducing… SCORETRACKER LIVE… available exclusively through our BUBBA app beginning in spring 2026.” — Brian Murphy .

Q&A Highlights

  • Tariff mitigation playbook: pricing adjustments, supplier concessions, product redesigns, and sustained new product velocity; pricing will be calibrated by category as conditions evolve .
  • Order normalization: retailers ordering more cautiously than POS suggests; as inventory normalizes and tariff uncertainty eases, order flow should better align with POS .
  • Brand strength: Caldwell (ClayCopter), BUBBA (Smart Fish Scale Lite), BOG, Grilla, MEAT! cited as “horse” brands with strong POS; other categories outperform peers despite softness .
  • Sourcing diversification: some production shifted out of China to SE Asia; for complex/tech SKUs, China remains competitive; further moves depend on tariff stability and supplier readiness .
  • E-commerce strategy: traditional retailers’ web sales are taking share; aim to be where the consumer shops across channels .

Estimates Context

  • Q1 FY26 results vs S&P Global consensus: revenue $29.7M vs $35.8M* (miss ~17%); Primary (non-GAAP) EPS $(0.26) vs $(0.25)* (slight miss) .
  • Given the Q2 guide (~−15% YoY net sales) and ongoing tariff/mix dynamics, Street models may need to lower near-term revenue and EBITDA assumptions, while preserving higher gross margin expectations given demonstrated resilience .

Estimates and consensus values marked with * are from S&P Global.

Key Takeaways for Investors

  • Near-term top-line visibility is constrained by tariff-driven retailer ordering behavior and a large e‑commerce partner’s reset; management’s Q2 guide (~−15% YoY) signals continued pressure into the holiday build .
  • Margin execution is a bright spot (46.7% GM, +130 bps YoY) via pricing, redesigns, and supplier concessions; focus remains on maintaining gross margins through volatility .
  • Innovation flywheel remains intact (new products ~29% of sales), with brand-led POS outperformance and another launch wave planned at SHOT Show; this supports mix-led margin durability .
  • Balance sheet optionality (no debt, $17.8M cash, $75M revolver undrawn, ~$4.6M buyback remaining) provides flexibility to navigate tariffs and invest in growth .
  • Watch inventory path (target ~$125M in Q2–Q3, ~$120M in Q4) and channel normalization; successful execution should reduce working capital and improve EBITDA leverage .
  • Emerging subscription revenue from BUBBA’s SCORETRACKER LIVE in Spring 2026 could enhance LTV and diversify mix if adoption tracks expectations .
  • Risk skew: tariff policy shifts, consumer softness among lower/mid-income cohorts, and international demand (Canada) are key watch items; any clarity on tariffs or reacceleration at the large e‑commerce partner would be positive .

Appendix: Source Documents

  • Q1 FY26 8‑K (Item 2.02/7.01) with transcript excerpts –.
  • Q1 FY26 earnings press release (9/4/25) –.
  • Q4 FY25 press release (6/26/25) –.
  • Q3 FY25 press release (3/6/25) –.
  • BUBBA x MLF SCORETRACKER LIVE (7/14/25) –.