PEW

Download the Complete Report Here Key Takeaways 2Q26 revenue beat and 290 bps of gross margin expansion strengthened the quality of PEW’s topline performance. PEW reported net revenue of $23.2 million in 2Q26, up 9.4% y/y from $21.2 million and ahead of the $22.3 million Street estimate by $0.9 million, or approximately 4.0%. Revenue increased $2.0 million while cost of goods sold increased only 5.8% to $20.1 million from $19.0 million. Gross profit consequently increased 39.4% y/y to $3.1 million from $2.2 million, while gross margin expanded approximately 290 bps to 13.5% from 10.6%. The divergence between 9.4% revenue growth and 39.4% gross profit growth was a key financial development in the quarter, reflecting AI-driven pricing optimization, improved sourcing, favorable product mix and the initial contribution of PEW Logistics. Firearms remained the primary revenue engine, although 2Q26 growth was entirely price and mix led. Firearms sales increased 8.5% y/y to $19.3 million, driven by a 12% increase in average selling price that more than offset a 4% decline in firearm sales volumes. The same pattern was evident through 1H26, with firearm revenue up 9.5% to $41.0 million as average selling prices increased 12% while volumes declined 3%. The mix shift toward higher-priced firearms therefore explains much of the revenue outperformance, with 2Q26 growth driven more by monetization and product mix than underlying unit demand. Non-firearms growth was also driven by substantially higher realized pricing and mix despite continued pressure on underlying volumes. Non-firearms revenue increased approximately 7.5% y/y to $3.6 million, reflecting a 30% increase in average selling price that offset an 18% decline in unit volumes, consistent with continued softness in ammunition and a richer mix of adjacent products. For 1H26, non-firearms revenue increased 9% to $7.8 million as average selling prices increased 25% while volumes declined 13%, reinforcing that category growth remained price and mix driven despite weaker underlying unit demand. Digital engagement remains healthy, with higher AOV and strong mobile penetration supporting monetization despite softer product volumes. PEW ended 2Q26 with approximately 1.4 million registered accounts and 17.1k monthly transactions across roughly 73,000 active SKUs, while average order value increased 7.4% y/y to $489. The platform generated approximately 10.3 million average monthly page views, maintained a 0.7% conversion rate, average session duration of 4.9 minutes and a 37% bounce rate. Mobile accounted for approximately 71% of sessions, 70% of transactions and 68% of revenue, versus roughly 67%, 70% and 64%, respectively, in 1Q26. Taken together, the data suggest PEW is monetizing a stable conversion funnel through higher basket values and sustained mobile engagement despite softer unit volumes. Customer acquisition remained unusually efficient despite double-digit traffic growth, supporting scalability of the digital model. Sales and marketing expense was only $0.3 million in 2Q26, or approximately 1.2% of revenue, compared with $0.2 million in 2Q25, even as revenue increased 9.4% and traffic increased 12.6%. The approximately 1% marketing intensity highlighted on the call reflects a lean acquisition profile supported by years of technology investment, supplier relationships and customer trust rather than dependence on aggressive paid acquisition. Customer lifetime value increased 4.1% y/y to $819.41, supporting continued customer monetization as traffic expands. The combination of 12.6% traffic growth, 4.1% LTV growth and ~1% marketing intensity remains an important advantage as PEW scales higher-margin platform services across the same digital customer and technology infrastructure. PEW Logistics expanded into the suppressor category with the addition of Backwoods Suppressors, marking its third manufacturer on the platform. KelTec established initial domestic firearms validation, Derya extended adoption to an international manufacturer, and Backwoods adds suppressors, further demonstrating that PEW’s compliance, fulfillment and technology stack can support a wider range of manufacturer requirements. The platform enables manufacturers to operate brand-owned, mobile-friendly DTC storefronts, retain customer relationships and first-party data, and access compliant fulfillment without building additional infrastructure internally. PEW’s existing FFL network places a licensed dealer within 15 miles of approximately 97% of the U.S. population, while average checkout-to-delivery time remains just under three business days. The expansion also provides exposure to a rapidly growing suppressor category, with more than 845,000 suppressor applications submitted in the first five months of 2026 following elimination of the $200 federal transfer tax in January. This combination gives manufacturers national distribution, regulatory workflows and customer-facing infrastructure while supporting PEW’s broader effort to scale its asset-light DTC fulfillment model across regulated product categories. The new fulfillment and headquarters facility remains on schedule for 4Q26 and should increase physical capacity ahead of continued scaling in both businesses. Acquired in 4Q25 for approximately $8.25 million, the facility expands PEW’s operational footprint by approximately 2.5x and is expected to increase capacity across both the core e-commerce business and PEW Logistics. The investment provides additional infrastructure to support future volume growth and should improve PEW’s ability to scale fulfillment without requiring a comparable increase in fixed infrastructure. Potential modernization of the lawful firearms purchasing process could reinforce PEW’s digital and compliance moat, although any benefit remains optionality. Recent federal proposals contemplate modernizing aspects of lawful firearms purchasing while maintaining background checks and other core safeguards, potentially reducing transaction friction without eliminating the compliance infrastructure required to complete firearm sales. PEW has spent more than 15 years building digital commerce, automated compliance and nationwide FFL connectivity, with its network placing a licensed dealer within 15 miles of approximately 97% of the U.S. population. A more digitally enabled purchasing framework could therefore support conversion and online-channel penetration in the core GrabAGun business while increasing the value proposition of PEW Logistics to manufacturers seeking compliant direct-to-consumer capabilities. The key strategic implication is that modernization could lower friction for consumers without lowering the compliance barrier for competitors. PEW’s regulatory sophistication has historically functioned as a barrier to entry in online firearms commerce rather than simply a cost of doing business, and that advantage could become more valuable if lawful purchasing processes become increasingly digital while existing safeguards remain intact. Companies with established compliance, fulfillment and FFL infrastructure could be better positioned than retailers or manufacturers attempting to build these capabilities from scratch, potentially supporting higher core conversion, faster online-channel migration and greater manufacturer demand for PEW Logistics. PEW reported a net loss in 2Q26 as higher operating expenses outweighed the improvement in gross profit. Net loss was $1.8 million versus net income of $0.8 million in the prior-year period, primarily reflecting higher G&A and other operating expenses associated with the company’s transition to a public company and investments supporting growth initiatives. Adjusted EBITDA was a loss of $1.7 million versus income of $0.9 million in 2Q25, as incremental spending on PEW Logistics and additional growth resources more than offset the benefit from higher gross profit. The forward revenue setup has strengthened, with Street estimates moving higher following 2Q26 while first-half performance continues to support the growth trajectory. Street estimates sourced from TIKR indicate that 3Q26 revenue is expected at approximately $23.3 million, while the 2026E revenue estimate has increased to $103.1 million from $101.9 million last quarter, a 1.2% raise, and 2027E revenue has increased to $109.3 million from $108.5 million, a 0.7% increase. PEW generated $49.1 million in the first six months of 2026, up 10.3% y/y, leaving approximately $54.0 million required in 2H26 to achieve the revised 2026 estimate. That compares with approximately $51.9 million generated in 2H25 and implies roughly 4% second-half growth. Seasonality remains relevant, with summer typically softer and Q4 and Q1 historically stronger periods, but the upward estimate revisions reinforce confidence in the current trajectory without requiring a material acceleration in second-half growth. Working capital remains broadly healthy despite the quarter-end cash decline, with supplier concentration improving and no evidence of inventory impairment. PEW ended 2Q26 with $97.5 million of cash, $9.3 million of inventory and $7.8 million of accounts payable, with cash down $8.9 million sequentially from $106.4 million in 1Q26, primarily reflecting payment timing as accounts payable fell from approximately $13.0 million. Major wholesale distributors represented approximately 38% of inventory and product costs in 2Q26 versus 39% in 2Q25, while concentration declined more meaningfully to 39% for 1H26 from 47% in 1H25. No inventory valuation provision was required during either 2026 or 2025, and the inventory returns reserve declined to $0.2 million from $0.3 million at year-end. This suggests the $9.3 million inventory balance remains broadly healthy while PEW’s supplier base has become somewhat more diversified on a first-half basis. With the quarter-end A/P movement characterized as timing related and expected to rebound, second-half cash conversion should provide a clearer indication of the underlying working-capital profile. Capital allocation remains disciplined, although all first-half repurchase activity occurred in 1Q26 rather than during the second quarter. PEW repurchased 769,518 shares for approximately $2.36 million, or $2.39 million including excise tax, during 1H26, with the entire amount purchased during 1Q26 and no common shares repurchased in 2Q26. The company had $8.7 million remaining under its original $20 million authorization at June 30, while shares outstanding declined to approximately 29.5 million from 30.0 million at year-end. With $97.5 million of cash and the stock trading below quarter-end cash per share of $3.31, the remaining authorization continues to provide meaningful flexibility, while management continues to balance repurchases against investment in PEW Logistics, the core e-commerce business and new facility, while maintaining expense discipline and flexibility for potential M&A. CFO transition preserves continuity while adding additional public-company finance experience. Co-Founder and CFO Justin Hilty is retiring after more than 15 years with PEW but will remain in an advisory role to support knowledge transfer, while Jonathan Terry will assume the CFO role after serving in a senior finance position at YETI. Terry previously served as CFO of Outschool, Outdoorsy/Roamly and RetailMeNot, and held senior finance leadership roles at Arrow Electronics, bringing experience across FP&A, capital allocation, M&A and public-company financial management. The transition comes as PEW manages approximately $97.5 million of cash and an $8.7 million remaining repurchase authorization, with the finance function moving into a more normalized public-company operating phase. Disclaimer: Exec Edge does not publish proprietary estimates, ratings, price targets, or investment recommendations. The valuation discussion below is illustrative only and is based on company filings, management commentary, and third-party data and estimates. It does not constitute a recommendation, price target, rating, or prediction of future pricing. Stock is attractively valued as PEW’s current market cap remains below its cash balance, implying little value for the core business. At the 8/14 close, PEW’s market cap was approximately $75.3 million, compared with $97.5 million of cash and equivalents, and roughly $7.7 million of long-term debt. This implies a negative enterprise value of approximately $14.5 million, suggesting that the market is assigning little value to PEW’s digital platform, PEW Logistics and other growth initiatives. Peer valuation also supports the discount argument. PEW trades at 0.71x NTM P/Sales, below the peer group average, despite a cash-rich balance sheet, more than $100 million of expected 2026 revenue, and a developing higher-margin platform revenue stream through PEW Logistics. We believe the discount can narrow as PEW continues to grow its core e-commerce business, benefits from higher AOV and favorable product mix, scales PEW Logistics beyond its three current manufacturers, and begins leveraging its larger fulfillment facility from 4Q26. The $97.5 million cash balance also provides flexibility for buybacks and disciplined M&A. Rerating potential is tied to execution across both the core e-commerce platform and PEW Logistics. Key drivers include sustaining revenue growth through higher-value firearm sales and non-firearms growth, maintaining recent gross-margin gains through pricing and mix optimization, and reducing adjusted EBITDA losses as public-company costs normalize from 3Q26. Further PEW Logistics adoption, including additional manufacturers from its existing pipeline and expansion into new categories such as suppressors, could increase the contribution from higher-margin service revenue. Additional upside could come from greater utilization of the 2.5x larger fulfillment facility, opportunistic share repurchases, disciplined M&A and continued industry modernization. Read Exec Edge’s Initiation on PEW Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected] The post GrabAGun: Topline Beat and 290 bps of Margin Expansion – Quarterly Update Report appeared first on ExecEdge.

Interested in Grabagun Digital Holdings Inc.? Here are five stocks we like better. Revenue and gross margin improved: Second-quarter revenue rose 9.4% to $23.2 million, while gross profit increased 39% to $3.1 million and gross margin expanded to 13.5%. Growth was driven by higher-priced firearms, larger customer orders, pricing optimization and favorable product mix. Profitability remained pressured by investment costs: Operating expenses climbed to $5.7 million due to public-company costs, PEW Logistics investments and added infrastructure, resulting in a $1.8 million net loss and $1.7 million adjusted EBITDA loss. PEW Logistics is expanding, while leadership changes: The platform processed more than $1.9 million in gross merchandise value and added Backwoods Suppressors as its third manufacturer partner. CFO and co-founder Justin Hilty plans to retire and will be succeeded by Jonathan Terry, formerly of YETI. Grabagun Digital (NYSE:PEW) reported second-quarter revenue growth and a sharp improvement in gross margin as higher-priced firearms sales, pricing initiatives and product mix supported profitability at the gross-profit level. The company also highlighted early progress at its PEW Logistics platform and announced a planned chief financial officer transition. Second-quarter net revenue rose 9.4% to $23.2 million from $21.2 million in the prior-year period. Firearms product sales increased 8.5% to $19.3 million, while non-firearms product sales grew 7% to $3.6 million despite what management described as continued softness in ammunition demand across the broader firearms industry. → Lumentum Just Delivered the AI Growth Investors Wanted Chief Executive Officer Marc Nemati said firearms growth was driven primarily by higher average order values and a shift toward higher-priced products. During the question-and-answer session, Nemati said the higher order values reflected both sales of higher-quality, higher-priced firearms and additional accessories in customer baskets. Gross profit increased 39% to $3.1 million, compared with $2.2 million a year earlier. Gross margin expanded approximately 290 basis points to 13.5% of net sales from 10.6% in the prior-year quarter. → Ryman Checks Into a $1.38B Hospitality Upgrade Nemati attributed the gain to the company’s AI-driven pricing optimization, favorable product mix, sourcing capabilities and initial contributions from PEW Logistics. Chief Financial Officer Justin Hilty said the margin improvement was driven by a mix shift toward higher-margin firearm categories and continued pricing optimization initiatives. Sales and marketing expense remained at approximately 1% of net revenue, according to Nemati, who said the company’s technology, supplier relationships and customer trust have helped maintain a lean customer-acquisition profile. → Joby’s Defense Pivot Accelerates With $500M Resonant Sciences Deal However, operating expenses rose to $5.7 million from $1.5 million in the prior-year period. Hilty said the increase reflected costs associated with operating as a public company, investments in PEW Logistics and additional headcount and infrastructure to support growth initiatives. He noted that the comparable 2025 period occurred before the company became public. The company reported a net loss of $1.8 million, compared with net income of $0.8 million a year earlier. Adjusted EBITDA was a loss of $1.7 million, versus adjusted EBITDA of $0.9 million in the prior-year quarter. Management said it has reached the final quarter of year-over-year comparisons affected by incremental public-company costs. Beginning next quarter, Hilty said expense comparisons should become more comparable on a like-for-like basis. Nemati added that general and administrative expenses should moderate as initial public-company costs normalize, though some additional expenses tied to the company’s growth efforts may phase out over the remainder of the year and into next year. PEW Logistics, the company’s logistics and direct-to-consumer platform for firearms manufacturers, processed more than $1.9 million in gross merchandise value through the end of the second quarter. GrabAGun recently added Backwoods Suppressors as its third manufacturer partner, joining Kel-Tec and Derya, according to management. Nemati said the platform is intended to extend the company’s existing technology, compliance, fulfillment and industry capabilities to manufacturers. He said the company has a sizable manufacturer pipeline but did not quantify potential gross merchandise value or provide a timetable for additional customer signings. “It is a very new offering” and “very disruptive to the industry,” Nemati said in response to an analyst question. He said additional manufacturer partnerships could help demonstrate the platform’s value to hesitant potential customers. Management said PEW Logistics remains in its early stages but could become a meaningful contributor to revenue diversification and margin expansion over time, citing its asset-light model and higher-margin potential. The company said its nationwide network places a federally licensed firearms dealer within 15 miles of approximately 97% of the U.S. population. Average time from checkout to delivery was just under three business days, management said. GrabAGun ended the quarter with $97.5 million in cash and minimal debt. The company held $9.3 million of inventory and $7.8 million of accounts payable at quarter-end, compared with $13 million in accounts payable at the end of the first quarter while inventory remained relatively unchanged. Hilty said the lower cash balance was principally attributable to the timing of working-capital payments, including reduced accounts payable near the end of June. The company collects cash from customers before paying suppliers, he said, and management does not expect the quarter-end balance to signal a change in its underlying working-capital profile. For the first six months of the year, GrabAGun repurchased approximately $2.4 million of common stock under its $20 million repurchase authorization. Management said it would continue to assess opportunistic buybacks while preserving flexibility for growth investments and potential acquisitions. The company also continues to outfit its new headquarters, fulfillment and distribution facility, which management expects to become fully operational in the fourth quarter of 2026. Nemati said the facility is intended to expand capacity for the core e-commerce business and PEW Logistics. On acquisitions, Nemati said the company is actively evaluating opportunities but remains disciplined on valuation and strategic fit. “We are not going to overpay or again, not just make a deal for the sake of making a deal,” he said. Nemati announced that Hilty, GrabAGun’s co-founder and CFO, plans to retire after more than 15 years with the company. Hilty will remain in an advisory role to support the transition and knowledge transfer process. Jonathan Terry has been named the company’s next CFO. Nemati said Terry brings public-company and outdoor consumer-products experience, most recently serving in a senior finance role at YETI. GrabAGun.com is an online retailer of firearms, ammunition and related accessories. GrabAGun.com, formerly known as Colombier Acquisition Corp. II, is based in COPPELL, Texas. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Grabagun Digital Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Second Quarter Revenues Increased 9.4% Year-Over-Year to $23.2 Million; Firearms Sales Increased 8.5% for the Same Period Second Quarter Gross Profit Increased 39.4% and Gross Margin Expanded 290 Basis Points to 13.5% Compared to Same Period Last Year Advancing Logistics Infrastructure with Three Manufacturing Customers Onboard to Date, Creating a Path for Long-Term Revenue Growth and Margin Expansion COPPELL, Texas, August 13, 2026--(BUSINESS WIRE)--GrabAGun Digital Holdings Inc. ("GrabAGun" or the "Company") (NYSE:PEW), an online retailer of firearms, ammunition and related accessories, today reported second quarter 2026 financial results for the three and six months ended June 30, 2026. Marc Nemati, Chief Executive Officer of GrabAGun, commented, "Our second-quarter results reflect continued momentum across our business, with net revenue growth of 9% year-over-year, driven by growth in average order value and a favorable shift toward higher price-point products with our firearms sales, which were up 8% year over year. We also delivered a 290-basis point improvement in gross margin compared to the prior year period. These results reflect the benefits of our evolving product mix, targeted pricing strategy, and disciplined execution across our commercial organization. "The firearms industry continues to evolve, with recent federal policy proposals from the ATF focused on modernizing aspects of the lawful purchasing process while maintaining established compliance requirements, including background checks and other safeguards. While the timing, scope, and ultimate implementation of any regulatory changes remain uncertain, we believe GrabAGun is well positioned to support customers through this changing environment, leveraging the digital infrastructure, compliance capabilities, and regulatory expertise we have built over more than fifteen years." Mr. Nemati continued, "That same foundation enabled us to launch PEW Logistics in January, marking an important milestone in extending the capabilities of our turnkey e-commerce platform. We are encouraged by the platform’s early momentum, including the recent addition of Backwoods Suppressors as our third manufacturing customer, further expanding our reach into a growing product category. "As we continue to expand our network of manufacturers and product categories, we believe PEW Logistics has the potential to broaden our addressable market and create additional opportunities for recurring and profitable revenue and margin expansion. Supported by nearly $100 million in cash, a strong balance sheet, a disciplined capital structure, and a track record of innovation and execution, we remain focused on advancing our strategy, pursuing sustainable growth opportunities, and creating long-term value for our shareholders." Second Quarter Financial Highlights Net revenue was $23.2 million, up 9.4% year-over-year, compared to $21.2 million in the prior-year quarter. Net revenue for the year-to-date period was $49.1 million, up 10.3% year-over-year, compared to $44.6 million in the prior-year to date period. Gross profit margin of 13.5% for the three months ended June 30, 2026 compared with 10.6% gross profit margin in the prior year's quarter. Gross profit margin for the six months ended June 30, 2026 of 12.0% compared with gross profit margin of 10.1% in the prior year. Loss from operations was $2.6 million for the three months ended June 30, 2026 compared to income from operations of $0.8 million. Loss from operations was $5.2 million for the six months ended June 30, 2026 compared to income from operations of $0.8 million the prior-year, driven by stock-based compensation expense, public company expenses, and increased personnel costs associated with headcount additions. Net loss was $1.8 million for the three months ended June 30, 2026 compared to net income of $0.8 million in the prior-year quarter. Net loss was $3.6 million for the six months ended June 30, 2026 compared to net income of $0.9 million in the prior-year. Adjusted EBITDA1 totaled a loss of $1.7 million for the three months ended June 30, 2026 compared to income of $0.9 million in the prior-year. Adjusted EBITDA1 totaled a loss of $3.7 million for the six months ended June 30, 2026 compared to income of $1.5 million in the prior-year. Cash and cash equivalents of $97.5 million, or $3.31 per share, with minimal debt, as of June 30, 2026. Business Highlights Overall Customer Lifetime Value2 increased by 4.1% for both the three and six months ended June 30, 2026 to $819.41 In Q2 2026, total site traffic grew 12.6% year-over-year with Mobile Sessions3 continuing to be a core driver attributing approximately 71.3% of site traffic, accounting for 69.9% of transactions, and 67.5% of net revenue, demonstrating a beneficial channel mix that aligns with the Company’s mobile-first strategy. For the three and six months ended June 30, 2026, Company net revenue increased 9.4% and 10.3%, respectively, compared to the same periods in 2025. Within that, firearm sales increased 8.5% and 9.5%, respectively, driven primarily by growth in average order value and a continued shift in mix toward higher-price-point products. Launched PEW Logistics in January 2026, a wholly-owned subsidiary offering white-label e-commerce fulfillment solutions for firearms manufacturers. Executed $2.4 million of share repurchases during the six months ended June 30, 2026, with $8.7 million remaining of the Company’s previously authorized $20.0 million share repurchase program, reflecting management’s strong conviction in the Company’s fundamentals and an efficient capital allocation strategy to maximize shareholder value. Second Quarter 2026 Conference Call and Webcast Management will host a conference call at 4:30 PM ET today to discuss its second quarter 2026 results. The live webcast and replay will be accessible under the Events & Presentations section of the Company’s Investor Relations website at investors.grabagun.com. About GrabAGun Digital Holdings Inc. GrabAGun Digital Holdings Inc. (NYSE: PEW) is a technology-driven commerce and platform company serving the firearms, ammunition, and outdoor industry through two complementary businesses. GrabAGun.com, the Company’s digitally native eCommerce retailer operated by wholly-owned subsidiary GrabAGun LLC, is one of the nation’s leading online firearms retailers, built on fifteen years of proprietary software development spanning dynamic inventory and order management, AI-powered pricing, demand forecasting, and automated regulatory compliance. PEW Logistics LLC, the Company's wholly-owned platform services subsidiary, extends that proven infrastructure to firearms manufacturers as a turnkey e-commerce solution generating recurring, high-margin platform revenue across fulfillment, compliance, data, and marketing services. Together, these businesses position GrabAGun as the technology backbone of a modernized firearms supply chain, with a capital-efficient model that monetizes the infrastructure the Company has already built. Forward-Looking Statements This news release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve risks and uncertainties. Any statements other than historical facts contained herein are forward-looking statements. Forward-looking statements reflect our beliefs and expectations based on current estimates and projections. While we believe these expectations, and the estimates and projections on which they are based, are reasonable and were made in good faith, these statements are subject to numerous risks and uncertainties. Forward-looking statements can also be identified by words such as "future," "anticipates," "forecasts," "estimates," "budgets," "projects," "strategy," "guidance," "outlook," "believes," "expects," "intends," "plans," "predicts," "potential," "seek," "continue," "target," "goal," "will," "would," "should," "could," "can," "may," and similar terms, although not all forward-looking statements contain these identifying words. Forward-looking statements are not guarantees of future performance and the Company’s actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to, those discussed under the heading "Risk Factors" in the Company’s Annual Report on Form 10-K for the period ending December 31, 2025 as filed with the Securities and Exchange Commission ("SEC") on March 12, 2026, and other documents filed or to be filed by GrabAGun from time to time with the SEC. We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA. Recipients are cautioned not to put undue reliance on forward-looking statements. The forward-looking statements included herein are only made as of the date of this report, or if earlier, as of the date they were made, and we undertake no obligation to correct, update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws. Non-GAAP Financial Information We utilize Adjusted EBITDA and Adjusted EBITDA margin, non-GAAP financial measures, to supplement GAAP measures of performance as a tool to evaluate our historical financial and operational performance, identify trends affecting our business, and formulate business plans and make strategic decisions. We believe that Adjusted EBITDA provides users of our financial information with useful supplemental information that enables a better comparison of our performance across periods. We believe Adjusted EBITDA provides visibility to the underlying continuing operating performance by excluding the impact of interest income, net, income tax, and non-cash expenses, including depreciation, amortization, stock compensation, and certain non-recurring costs, as management does not believe these to be representative of our core earnings. We also provide Adjusted EBITDA margin, which is calculated as Adjusted EBITDA divided by revenue. The non-GAAP financial measures have not been calculated in accordance with GAAP and should be considered in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. We caution investors that non-GAAP financial information, by its nature, departs from traditional accounting conventions. Adjusted EBITDA is not a liquidity measure and should not be considered as discretionary cash available to us to reinvest in the growth of our business or to distribute to shareholders or as a measure of cash that will be available to us to meet our obligations. We define Adjusted EBITDA as net income (loss) excluding interest income, net, income tax, and non-cash expenses, including depreciation and amortization, stock-based compensation, and certain non-recurring costs. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of revenue. The following table reconciles our GAAP and non-GAAP financial measures for the three and six months ended June 30, 2026 and 2025 (in thousands, except percentages): View source version on businesswire.com: https://www.businesswire.com/news/home/20260813878538/en/ Contacts Media and Investor Contact Information: Media Inquiries: [email protected] Investor Inquiries: [email protected]

As you might know, GrabAGun Digital Holdings Inc. (NYSE:PEW) just kicked off its latest first-quarter results with some very strong numbers. Results overall were solid, with revenues arriving 5.8% better than analyst forecasts at US$26m. Higher revenues also resulted in substantially lower statutory losses which, at US$0.06 per share, were 5.8% smaller than the analyst expected. The analyst typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimate to see what could be in store for next year. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Following the latest results, GrabAGun Digital Holdings' single analyst are now forecasting revenues of US$102.6m in 2026. This would be a reasonable 3.6% improvement in revenue compared to the last 12 months. Per-share losses are expected to explode, reaching US$0.25 per share. Yet prior to the latest earnings, the analyst had been forecasting revenues of US$100.5m and losses of US$0.16 per share in 2026. So it's pretty clear the analyst has mixed opinions on GrabAGun Digital Holdings even after this update; although they upped their revenue numbers, it came at the cost of a very substantial increase in per-share losses. See our latest analysis for GrabAGun Digital Holdings Spiting the revenue upgrading, the average price target fell 18% to US$6.75, clearly signalling that higher forecast losses are a valuation concern. Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that GrabAGun Digital Holdings' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 4.8% growth on an annualised basis. This is compared to a historical growth rate of 6.5% over the past year. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 6.2% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than GrabAGun Digital Holdings. The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at GrabAGun Digital Holdings. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. The consensus price target fell measurably, with the analyst seemingly not reassured by the latest results, leading to a lower estimate of GrabAGun Digital Holdings' future valuation. Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have analyst estimates for GrabAGun Digital Holdings going out as far as 2027, and you can see them free on our platform here. And what about risks? Every company has them, and we've spotted 3 warning signs for GrabAGun Digital Holdings (of which 2 don't sit too well with us!) you should know about. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Download the Complete Report Here Key Takeaways PEW delivered $25.9 million of 1Q26 revenue, up 11.1% y/y and ahead of Street estimates of $24.5 million. Continues outperforming the broader firearms market, with firearm sales growth materially ahead of Adjusted NICS trends as digital execution and AI-driven pricing supported ongoing market share gains. Expanded PEW Logistics during 1Q26 with the addition of Derya Arms, further validating early manufacturer adoption. Shoot & Subscribe now contributes 15% of ammo revenue, adding an early recurring revenue layer to PEW’s platform. Valuation remains compelling, with ~$90 million market cap below $106.4 million cash and a negative enterprise value. 1Q26 revenue beat reinforces PEW’s share-gain story as platform execution outpaced broader industry demand. PEW reported 1Q26 revenue of $25.9 million, up 11.1% y/y from $23.3 million, and ahead of Street estimate of $24.5 million by $1.4 million, or 5.8%. This was another quarter of meaningful outperformance, as firearms sales increased 10.5% y/y while adjusted NICS background checks increased only 1.6% over the same period. Management noted that demand remained stable month by month during the quarter and did not show major spikes from geopolitical events, suggesting that topline growth was primarily driven by execution rather than one-time demand pull-forward. Firearms remain the primary growth driver, while non-firearms returned to growth despite broader ammunition softness. Firearms product sales increased 10.5% y/y to $21.7 million, supported by market share gains, favorable product mix, and pricing optimization. Non-firearms product sales increased 10.4% y/y to $4.1 million despite continued softness in ammunition demand across the broader 2A industry. Service sales contributed $0.1 million as PEW Logistics began generating revenue during the quarter. The return to growth in non-firearms is notable because it broadens the revenue base beyond firearms and suggests that accessories, ammunition, and service-related categories can contribute to growth even in a softer category environment. Customer KPIs continue to validate PEW’s platform model and mobile-first strategy. Customer lifetime value increased 4.2% y/y to $906, while total site traffic increased 12.6% y/y. Mobile remained the dominant channel, accounting for approximately 67% of site traffic, 70% of transactions, and 64% of net revenue in 1Q26. Mobile’s transaction share exceeding its traffic share reinforces management’s commentary that mobile drives higher conversion rates and a structurally lower cost per transaction than traditional retail. KelTec and Derya validate early PEW Logistics adoption, strengthening the higher-margin platform opportunity. PEW Logistics is a white-label direct-to-consumer fulfillment solution for firearms manufacturers, enabling branded storefronts, ATF-compliant FFL workflows, end-to-end fulfillment, and first-party customer data without manufacturers needing to build compliance, IT, customer service, or logistics infrastructure. PEW launched the platform in January with KelTec Weapons, a 35-year American firearms manufacturer with a loyal customer base that validated the platform’s value proposition from day one and added Derya Arms in March as its second manufacturer partner. Derya is a global manufacturer with more than 200,000 firearms produced and products used across 50+ countries, further validating the platform’s appeal across both domestic and international manufacturer profiles. Since launch, PEW Logistics has processed $1.3 million of GMV, while leveraging PEW’s FFL network that places a licensed dealer within 15 miles of 97% of the U.S. population and supports average checkout-to-delivery time of just under three business days. PEW Logistics expected to operate at materially higher margin profile than the core e-commerce business. PEW Logistics carries a significantly higher gross margin profile relative to the company’s traditional hard goods e-commerce business, reflecting the platform’s revenue-share structure and incremental pick-pack-ship service fees. Management noted that gross margins for PEW Logistics can reach upwards of 70%, supported by the platform’s more asset-light and service-oriented operating model. Management expects manufacturer onboarding to accelerate as existing PEW Logistics partners demonstrate revenue traction. Additional manufacturer adoption could accelerate as existing partners begin generating visible revenue and operating metrics, while also emphasizing the platform’s ability to help manufacturers improve gross margins and regain access to valuable first-party customer relationships and purchasing data. Shoot & Subscribe reaches 15% of ammo revenue, adding early proof of recurring purchase behavior. The ammunition subscription service, launched in 4Q25, now contributes 15% of PEW’s ammo revenue line. This is an important early proof point because ammunition is naturally repeat-purchase oriented, and converting frequent shooters from one-time transactions into contracted recurring relationships should improve retention, purchase frequency, and customer lifetime value. The subscription architecture can also extend across additional product categories over time, creating a broader recurring revenue opportunity. Early traction gives the initiative more tangible commercial relevance and supports the thesis that PEW can layer predictable revenue streams onto its existing digital commerce platform. Marketing scale and customer acquisition are becoming more visible contributors to outperformance. Growth was supported by improved product selection, right-item at right-price purchasing, reduced platform friction, and expanded marketing capabilities across social media and other channels. The company continues to drive traffic and consumer demand through a broader customer acquisition funnel, while supplier relationships and product partnerships support availability of in-demand inventory. The first-quarter traffic growth of 12.6%, revenue growth of 11.1%, and LTV growth of 4.2% indicate that acquisition efforts are translating into monetizable platform engagement rather than low-quality traffic. Repeat purchase momentum remains strong, with repeat rate holding steady, supporting revenue durability as PEW scales both D2C commerce and platform-based services. Infrastructure investment is being made ahead of anticipated platform scaling. PEW remains on track to bring its new headquarters and fulfillment facility online by 4Q26, after acquiring the facility in 4Q25. The new facility is approximately 2.5x the company’s current operational footprint and is intended to support growth in both PEW’s core D2C business and PEW Logistics well beyond 2026. Potential ATF rule changes could create a meaningful long-term distribution catalyst. Proposed ATF amendments could allow certain firearm transfers to occur remotely with secure identity verification and direct-to-home delivery under an approved framework. If finalized, such a regime would require secure remote identity verification, NICS integration, advanced compliance systems, secure record keeping, and operational execution at scale. PEW’s 15 years of investment in digital infrastructure, compliance workflows, FFL integration, and regulated online firearm transactions position the company well if the industry shifts toward remote compliance and direct-to-home delivery. Timing and final rule structure remain uncertain, but regulatory complexity could increase the strategic value of PEW’s infrastructure. Higher public company costs and growth investments drove quarterly net loss. PEW reported a net loss of $1.8 million in 1Q26 compared to net income of $0.1 million in the prior-year period. The loss was due to increase in SG&A expense which was primarily driven by approximately $1.5 million of incremental headcount supporting growth initiatives, roughly $0.5 million of stock-based compensation, and nearly $0.8 million of insurance and professional fees associated with operating as a public company. Gross margin expanded on favorable product mix and pricing optimization. Gross profit increased to $2.8 million in 1Q26, representing a gross margin of 10.7%, compared to $2.2 million or 9.6% of net sales in the prior-year period. The 107 bps y/y gross margin improvement was primarily driven by a more favorable mix toward higher-margin firearm categories as well as continued benefits from the company’s pricing optimization initiatives. PEW continues to focus on sustainable margin improvement while maintaining competitive pricing. Adjusted EBITDA impacted by elevated growth and public company expenses. Adjusted EBITDA for 1Q26 was a loss of $2.0 million compared to positive adjusted EBITDA of approximately $0.5 million in the prior-year period, primarily reflecting higher operating expenses related to growth investments and public company costs. The decline was partially offset by stronger gross profit generation driven by revenue growth and gross margin expansion during the quarter. Operating expenses increased following public listing and growth investments. Total operating expenses increased to $5.4 million in 1Q26 from $2.2 million in the prior-year period, primarily reflecting planned investments associated with operating as a public company, the launch and scaling of PEW Logistics, and incremental hiring to support ongoing growth initiatives. 1Q26 revenue beat supports the path toward more than $100 million in 2026 revenue. According to Street estimates sourced from TIKR, PEW is likely to generate a topline of $22.3 million in 2Q26. Annual estimates suggest that growth is set to continue as revenue is likely to exceed $100 million in 2026 and reach $108.5 million in 2027. Favorable working capital dynamics and supplier-funded growth support balance sheet flexibility. PEW ended 1Q26 with $106.4 million of cash and minimal debt, compared with $110.4 million of cash at year-end 2025. Inventory increased to $9.2 million from $8.5 million sequentially, while accounts payable increased to $13.0 million from $11.8 million. The company collects from customers before paying suppliers, effectively allowing suppliers to co-fund growth. The $4.0 million sequential decline in cash reflected $1.7 million of net cash used in operating activities, $1.3 million of investing cash outflow, and $1.1 million of financing cash outflow, including share repurchases. This working capital structure supports inventory availability, D2C growth, and PEW Logistics scaling while preserving liquidity. It also allows PEW to fund platform investments and buybacks while maintaining cash above its current market capitalization. PEW continued opportunistic share repurchases during 1Q26 while preserving growth capital. During 1Q26, PEW repurchased approximately $2.4 million of common stock under its previously authorized $20.0 million share repurchase program, with roughly $8.7 million remaining available for future repurchases. Management noted that the company will continue to evaluate opportunistic buybacks while maintaining a disciplined capital allocation framework and preserving balance sheet flexibility to support long-term growth initiatives. Disciplined M&A remains a priority alongside organic platform investment. PEW’s capital allocation framework remains centered on disciplined, accretive M&A opportunities that enhance platform capabilities and meet internal return thresholds, while avoiding acquisitions pursued solely for headline growth. Although the company continues investing organically in its new fulfillment facility and expanded inventory capacity to support both D2C and PEW Logistics growth, management emphasized patience and flexibility, with M&A focused on the right assets at the right price rather than arbitrary growth targets. Our analysis suggests that PEW stock remains attractively valued. The following analysis is presented for illustrative purposes only and does not constitute a stock recommendation, price target, or buy/sell/hold rating. We apply multiple valuation approaches, including market cap versus cash and enterprise value, comparison with the SPAC deal valuation, and peer valuation. PEW’s current market cap remains below its cash balance, implying little value for the core business. At the 5/14 close, PEW’s market cap was approximately $90 million, compared with $106.4 million of cash and equivalents, or $3.62 per share, and roughly $7.8 million of long-term debt. This implies a negative enterprise value of approximately $8 million, suggesting that the market is assigning little value to PEW’s digital platform, continued share gains, PEW Logistics, and other growth initiatives. PEW also trades at a substantial discount to its SPAC deal valuation. PEW was valued at $312.5 million of equity value in its SPAC deal with Colombier Acquisition Corp. II, which closed in July 2025. Against the current market cap of approximately $90 million, the stock trades at roughly a 71% discount to the SPAC deal valuation, despite 11.1% y/y revenue growth in 1Q26, market share gains versus Adjusted NICS, and early PEW Logistics traction. Peer valuation also supports the discount argument. PEW trades at 0.89x 2026E P/Sales, below the peer group average, despite a cash-rich balance sheet, more than $100 million of expected 2026 revenue, and a developing higher-margin platform revenue stream through PEW Logistics. We believe the discount can narrow as PEW continues to gain share, scales PEW Logistics beyond KelTec and Derya, improves service revenue mix, and uses its balance sheet for buybacks and disciplined M&A. Rerating potential is tied to execution across both the core D2C platform and higher-margin growth initiatives. Key drivers include sustained revenue outgrowth versus Adjusted NICS, continued non-firearms growth, stable or improving gross margin, narrowing adjusted EBITDA losses as public company costs normalize, and further PEW Logistics traction beyond KelTec and Derya. Additional upside could come from Shoot & Subscribe scaling beyond 15% of ammo revenue, opportunistic buybacks while market cap remains below cash, disciplined M&A, and potential ATF rule changes that increase the value of PEW’s compliance-native digital infrastructure. Download the Complete Report Here Read Exec Edge’s Initiation on PEW Here Subscribe to our Weekly Newsletter to Receive All Research Contact: Executives-Edge.com [email protected]

GrabAGun Digital Hldgs (NYSE:PEW) held its first-quarter earnings conference call on Wednesday. Below is the complete transcript from the call. This transcript is brought to you by Benzinga APIs. For real-time access to our entire catalog, please visit https://www.benzinga.com/apis/ for a consultation. The full earnings call is available at https://events.q4inc.com/attendee/361546724 GrabAGun Digital Holdings Inc reported a Q1 revenue increase of 11.1% year over year to $25.9 million, with firearm sales rising 10.5%. The company launched Pew Logistics, a white-labeled direct-to-consumer fulfillment solution, and onboarded Kel Tec and Daria Arms as initial clients. Mobile engagement accounted for 67% of traffic and 64% of revenue, highlighting the importance of digital channels. GrabAGun Digital Holdings Inc maintains a strong balance sheet with $106.4 million in cash and minimal debt, allowing for strategic investments. Management emphasized disciplined M&A strategy focusing on long-term shareholder value and maintaining a competitive pricing position. OPERATOR Good afternoon and welcome to the GrabAGun Digital Holdings Inc first quarter 2026 earnings conference call. On today's call are Mark Nemati, Chief Executive Officer and Justin Hilty, Chief Financial Officer. A recording of this conference call will be available on the GrabAGun Investor Relations website shortly after this call has ended. I'd like to take this opportunity to remind you that during the call we will be making certain forward looking statements. This includes statements relating to the operating performance of our business, future financial results and guidance, strategy, long term growth and overall future prospects. We may also make statements regarding regulatory or compliance matters. These statements are subject to known and unknown risks and uncertainties that could cause our actual results to differ materially from those projected or implied during this call. In particular, those described in our risk factors included in the Form 10-K for the fiscal year ended December 31, 2025 filed by the Company with the SEC on March 12, 2026, as well as the current uncertainty and unpredictability in our business, the markets and the global economy generally. You should not rely on our forward looking statements as predictions of future events. All forward looking statements that we make on this call are based on management's assumptions and beliefs as the date hereof and GrabAGun disclaims any obligation to update any forward looking statements except as required by law. Our discussion today will include non GAAP financial measures, including adjusted ebitda. These non GAAP measures should be considered in addition to and not as a substitute for or in isolation from our GAAP results. Information regarding our non GAAP financial measures, including a reconciliation of our non GAAP financial measures to our most comparable historical GAAP financial measures, may be found in our earnings release which we filed with the SEC earlier today and is available on the Company's Investor Relations site. I will now turn the call over to Mark Nemati. Mark, please go ahead. Mark Nemati (Chief Executive Officer) Good afternoon and thank you for joining us. We started fiscal year 2026 with momentum. Our Q1 results shows a business model that's working and they reflect our commitment to supporting American Second Amendment rights. Our first quarter results reflect disciplined execution across our operation and our continued commitment to serving a growing customer base that values constitutional freedoms and lawful access to a wide selection of premium firearms and accessories. First, the headline numbers Q1 Revenue increased 11.1% year over year to 25.9 million, driven by a 10.5% increase in firearm sales. Our growth continued to outpace the broader industry as adjusted NICS background checks were up by 1.6% during that same period. We're continuing to take share in a challenging environment. We believe we are just scratching the surface of what this platform can do. Our growth is impressive. Against that backdrop, the strength of the business model shows up most clearly in our customer metrics. Customer lifetime value continue to grow up 4.2% year over year, reflecting deep relationships with our expanding base of loyal customers. Repeat purchase momentum remains strong with our repeat rate holding steady as customers continue to return to GrabAGun for their firearms and accessory needs. Mobile engagements continue to be a significant driver of our business as well, accounting for approximately 67% of traffic and 64% of revenue in the first quarter. Mobile drives higher conversion rates and our digital model runs at a structurally lower cost per transaction than traditional retail. These conversion rates, this customer lifetime value, this repeat purchase behavior, none of it is accidental. It's a result of over 15 years of compounding investment in technology, supplier relationships and customer trust. As I mentioned on our fourth quarter call, 2025 was an inflection point for Grabigun. We completed our public listing, expanded our strategic capabilities and laid the foundation for the next phase of growth. We entered 2026 with momentum and this quarter we continued to execute against our strategic priorities. We had a significant milestone this quarter, the launch and continued development of Pew Logistics, our white labeled direct consumer fulfillment solution. Purchase purpose built for Firearm Manufacturers for those who may be newer to this part of our story, let me provide some context on why this is important. The firearm industry has a friction gap that has persisted for decades. Manufacturers have historically been locked out of direct consumer commerce not because they lack the products or brand equity, but because the regulatory complexity, FFL processing requirements and a fragmented fulfillment infrastructure that creates barriers most cannot overcome on their own. The result is referral leakage. Manufacturers drive demand through marketing and brand building only to watch that demand get captured by third party retailers who own the customer relationship and the data. Pew Logistics solves this problem. We engineered a platform that allows manufacturers to launch branded direct to consumer storefronts with full ATF compliant FL workflows, end to end fulfillment and first party customer data. All of it is powered by over 15 years of infrastructure investment. At Grabigun, manufacturers can launch in weeks, not months with no major capital outlay and no need to build out compliance it customer service or logistics teams. We launched P Logistics in January with Keltec weapons as our first implementation. Kel Tec is a 35 year American firearms manufacturer with a loyal customer base and their collaboration validated the platform's value proposition from day one. In March we added Daria Arms as our second manufacturer client. Daria is a global manufacturer with over 200,000 farms produced and products trusted by professionals in more than 50 countries. The addition of Daria demonstrates growing industry momentum for the platform and validates its appeal across both domestic and international manufacturer profiles. We are also making progress on our new headquarters and fulfillment facility which we acquired in the fourth quarter. At approximately two and a half times our current footprint, this purpose built facility provides operational capacity to support our growth well beyond 2026, including the anticipated needs as we aggressively scale P Logistics. We are currently outfitting the space and remain on track to be fully operational in the fourth quarter of 2026. This is a long term infrastructure investment that reflects our conviction and where the business is headed. Since launch, P logistics has processed $1.3 million in gross merchandise value. Our network of FL holders that puts a licensed dealer within 15 miles of 97% of the US population ensures fast compliant delivery nationwide resulting in an average checkout to delivery time of just under three business days. P Logistics continues to outpace traditional online farms retail benchmarks. The early results are encouraging and we see significant Runway ahead as we onboard additional manufacturers throughout the year. Beyond P Logistics, we continue to strengthen our core DTC E Commerce business. Our Shoot and Subscribe ammunition subscription service which we launched in the fourth quarter continues to build momentum. The service introduced something the firearms E Commerce category had not historically had a predictable recurring revenue model built upon a loyal contracted customer relationship instead of relying upon a series of one time transactions with the same customer. Early adoption has continued to build, now contributing 15% of our ammo revenue line and the model is architected to expand across additional product categories over time. Looking ahead, we remain focused on scaling Pew Logistics with traditional manufacturers driving continued market share gains in our core DTC business and deploying capital towards accretive opportunities that strengthen our platform regarding capital deployment. Specifically, outside of directly growing Pew logistics in our D2C channel, we remain focused on finding accretive opportunities and are taking a disciplined approach focused on long term shareholder value. We continue to evaluate both potential M and A and internal build possibilities. Our M and A pipeline remains active but our priority remains disciplined and our approach to M and A is straightforward. We're not in the business of overpaying to hit arbitrary growth targets. The strength of our balance sheet gives the luxury of patience. We can wait for the right assets at the right price rather than chasing deals that don't make strategic or financial sense. Our framework is built on acquisitions in the tens of millions where they enhance our platform capabilities and meet our return thresholds, focusing on long term shareholder value. When we find those targets, we will move quickly. Until then, we are comfortable staying disciplined and letting our organic growth engines, both D2C and P logistics, compound. Overall, our first quarter results demonstrate that the strategy is working. We continue to outperform the broader firearms industry and we are building a promising new growth vector through P Logistics and we are doing so while maintaining a fortress balance sheet and returning capital to shareholders. The next generation of firearm consumers is already here. They transact on mobile, they transact with Bitcoin, they expect frictionless experiences and they hold GrabAGun to the same standard as the best retail platforms on the Internet. We are built for this customer. We're winning today. We're taking more market share every quarter Before I turn it over to Justin One regulatory item worth flagging that could reshape this industry the ATF has proposed new regulations that would allow certain firearm transfers to occur remotely with federal background check requirements still met through secure identity verification. If finalized, lawful consumers could complete the full compliance process remotely. That includes direct to home firearm delivery within an approved framework. This could be the most significant change to firearms retail distribution in decades. Importantly, infrastructure required to operate in this environment is complex. As currently proposed, the new regulations require remote identity verification, meeting federal standards, seamless NICS integration, advanced compliance systems, secure record keeping, and the operational ability to execute all of it accurately at scale. Grabigun is uniquely positioned for this opportunity. For more than 15 years we have built the digital infrastructure and compliance foundation required to support highly regulated online firearm transactions. Few companies are positioned to adapt this quickly if the rules change. Regardless of regulatory outcome. The long term strategy that we have been building on for years positions us to continue to drive the evolution of firearms commerce. With that, I'll pass it over to Justin. Justin Hilty (Chief Financial Officer) Thank you Mark. I will now dive into our financials in more detail. First quarter net sales were 25.9 million, an increase of 11.1% compared to 23.3 million in the first quarter of fiscal 2025. Firearms product sales increased 10.5% year over year to 21.7 million, significantly outperforming adjusted NICS background checks during the quarter. The strength in firearms was driven by continued market share gains, favorable product mix and the ongoing effectiveness of our AI powered pricing and demand forecasting capabilities. Non firearms product sales were 4.1 million, an increase of 10.4% year over year despite widespread softness in ammunition demand that has been consistent across the two a industry gross profit for the first quarter was 2.8 million or 10.7% of net sales compared to 2.2 million or 9.6% of net sales in the prior year period. Favorable mix towards higher margin firearms categories plus continued benefit from our pricing optimization drove the 107 basis point improvement in gross margin. We remain focused on driving sustainable margin improvement while maintaining our competitive price positioning. Total operating expenses for the first quarter were 5.4 million compared to 2.2 million in the prior year period. The increase reflects planned investments in public company infrastructure, the launch and scaling of Pew Logistics and incremental headcount to support our growth initiatives. As a reminder, the first quarter of fiscal 2025 was a pre public company period, so the year over year comparison reflects the full impact of incremental costs associated with operating as a public company. Net loss for the first quarter was 1.8 million. The $3.2 million increase in year over year SGA expenses were primarily attributable to approximately 1.5 million in incremental headcount to support our growth initiatives, about 500,000 in stock based compensation and approximately 800,000 in insurance costs and professional fees associated with operating as a public company. Adjusted EBITDA for the first quarter was a $2 million loss compared to half a million dollars in the prior year period. The decrease reflects the increased operating expenses I just mentioned, partially offset by higher gross profit from our revenue growth and margin expansion. Turning to the balance sheet, we ended the quarter with 106.4 million in cash and minimal debt. Our business model is built so that we can collect from our customers before we pay our suppliers. With 9.2 million in inventory against 13 million in accounts payable, our suppliers are effectively co funding our growth. As a reminder, while our results today primarily reflect our core direct to consumer business, over time we expect Pew Logistics to begin contributing to our diversified revenue model in an even more meaningful way. This business carries a structurally higher margin profile than our core direct to consumer business driven by its software like revenue share model and highly scalable economics that leverage our existing infrastructure with minimal incremental fulfillment costs. As Pew Logistics scales and contributes more significantly to our revenue mix, we expect it to be accretive to overall margins over time. During the first quarter we repurchased approximately $2.4 million of our common stock under our $20 million share repurchase authorization, we have just under 9 million remaining under the current authorization will continue to evaluate opportunistic share repurchases while maintaining a disciplined approach to capital allocation and preserving balance Sheet flexibility to support our long term growth initiatives. Looking ahead, we expect to continue investing in our strategic growth initiatives including expanding Pew Logistics through additional manufacturers and driving continued market share gains within our core direct to consumer business. We remain focused on disciplined expense management while making the investments necessary to capture these significant opportunities ahead of us. With that, I'll turn the call back to Mark before we move into Q and A. Mark Nemati (Chief Executive Officer) Mark, thank you Justin. I would like to quickly reiterate the key themes from today's discussion. We delivered a solid first quarter with 11% revenue growth and continued market share gains in a flat industry environment. We made meaningful progress scaling Pew Logistics with two manufacturers now on the platform and we maintained our fortress balance sheet with over $106 million in cash and minimal debt, providing us with significant flexibility to pursue our growth initiatives and return capital to shareholders. We at GrabAGun continue to lead the generational shift towards digitally native commerce in the firearms industry. With the potentially large regulatory changes by the atf, we believe we are uniquely positioned to capitalize on the next industry evolution. Our 15 years of compounding investment in technology, supplier relationships and customer trust have built competitive advantages that widen as the market evolves. We are confident in our strategy. We are executing against our priorities. We are excited about the opportunities ahead with that. Operator, Please open the line for questions. OPERATOR We will now begin the question and answer session. Your line will remain open for follow ups. If you would like to ask a question, please press Star one to raise your hand. To withdraw your question, press Star one. Again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally. Please remember to unmute your device. Please stand by while we compile the Q and A roster. Your first question comes from the line of Matt Karanda with Roth Capital. Matt, your line is open. Please go ahead. Matt Karanda (Equity Analyst) Thanks guys. Nice work on the outperformance versus nics. Again, just wanted to hear a little bit more on the outgrowth as it pertains to units versus average order value on firearms this quarter then anything you can share on just add on to the quarter. Obviously we had some geopolitical disruption in March. Just wanted to hear how that might have impacted results intra quarter and what you've seen in terms of demand trends since then. If you're willing to share sort of April or May trend that you've seen in terms of firearms demand. Mark Nemati (Chief Executive Officer) Hey, thanks Matt for joining. Yeah, so I think most of the growth that we can attribute to this is the consistency of our platform. Obviously we, we Spend a lot of time making sure that there's as much reduced friction as possible. A lot of it also attributable to our product mix. You know, we're continuing to purchase the right items at these right prices to help consumers purchase what they want as well. As you've probably seen our expanded marketing capabilities. So now we're driving, I think, a lot more traffic, a lot more consumer demand into our platform through all the change we've done in marketing, whether that's social media or other marketing channels. And then in terms of like inter quarter stuff, I mean the, the quarter, month by month, you know, it's pretty, pretty stable across the line. You know that growth is, is a upward trend and that trend is continuing through the first quarter and beyond and it's been pretty stable. I don't see that many like peaks and spikes because of geopolitical events. There may be some, but they're not, not massive in any duration. The platform and the revenue that is generating has all been fairly stable and linear. Growingly growing linearly. Matt Karanda (Equity Analyst) Okay. All right, appreciate that, Mark. And then just maybe on the Pew logistics solution, good to see the second customer added there. How should we think about the funnel of opportunity, I guess as it pertains to maybe manufacturing partners that could sign up, how you're attacking the market overall and how growth should unfold as that kind of ramps from a standing start? Mark Nemati (Chief Executive Officer) Yeah, I think we'll get more manufacturers on a much quicker cadence after they start seeing some of these metrics and revenue that's being driven by some of the partners we have on there already. As you know, we just launched this in mid January with our first customer, Kel Tec. And then Diria came on board and that website launched I think about a week or two ago. So it's all still very new. The more time we have under our belt with that and the more results that we show, these manufacturers, I believe will start to see kind of the op. The option that they have to leverage a platform like this to grow their gross margin and again to kind of work on that funnel of customer information that they're losing out on because of the way that they don't have a direct purchasing capability currently. Matt Karanda (Equity Analyst) Okay. And then on the margin front on few logistics, I mean, I guess it's fair to say, given this is service revenue and maybe there's a little bit of logistics cost associated with it, should come at a significantly higher gross margin than the core E commerce platform. Is that a fair assumption? Mark Nemati (Chief Executive Officer) Yeah, the platform is significantly higher. Yeah. Like you said it's a rev share model. So in addition to those pick pack fees, gross margin profile there is upwards of 70%, which is much higher compared to that of the hard goods e commerce platform. Matt Karanda (Equity Analyst) Okay, all right, got it. And then on the M and A funnel, I guess I didn't particularly detect like a different tone from you guys. It seems like you're just remaining patient there. And we'll look for opportunistic M and A as it becomes available. But just any update on the funnel and maybe level of urgency as we kind of think about deploying capital on the M and A front? Mark Nemati (Chief Executive Officer) Yeah, I would say the funnel is still full. We are actively reviewing and looking through several potential deals. But as I mentioned also we are very, very disciplined in our approach. We're not going to overpay for an asset just for the sake of making a deal. We have a pretty rigid framework and if a acquisition is accretive in revenue and income, then we'll act on that quickly. We want to make sure that we have all that cash to deploy whenever that target comes comes up. But as well, we want to leverage that cash for organic growth as well. Growing out Grab a Gun and pew logistics. So we're not just going to throw money away just for the sake of closing a deal. Matt Karanda (Equity Analyst) Yeah. Okay. And then in the meantime, in terms of cash deployment organically, I guess are there any chunkier expenses or capital expenses that we should be thinking about as you ramp the distribution center and move in there fully through the end of the year or with few logistics and getting that up and running, how should we think about, I guess, the capital outlay organically from a cash perspective through the rest of the year for those items? Mark Nemati (Chief Executive Officer) Yeah, yeah. Obviously we're building out that new facility and then once we're into that facility, we'll have a lot more space for inventory, our own inventory as well as the pelogistics inventory. So there likely will be some capital deployment by increasing our overall inventory capabilities, which again helps us drive better pricing, better margins. But still, the lion's share of the capital deployment is around M and A and we're going to still focus on that throughout the duration of the year and beyond. Matt Karanda (Equity Analyst) Okay, got it. I'll leave it there, guys. Thanks so much. OPERATOR There are no further questions at this time. I will now turn the call back to Mark Nemati for closing remarks. Mark, please go ahead. Mark Nemati (Chief Executive Officer) Thank you, operator. And thank you to everyone who joined us today. Before we sign off, I would like to thank our employees whose dedication and hard work continues to drive our success every day. I also want to thank our shareholders for your continued support and confidence in Grab a gun as we execute our long term vision. We look forward to speaking with you on our next earnings call. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice. UNLOCKED: 5 NEW TRADES EVERY WEEK. Click now to get top trade ideas daily, plus unlimited access to cutting-edge tools and strategies to gain an edge in the markets. Get the latest stock analysis from Benzinga: GRABAGUN DIGITAL HLDGS (PEW): Free Stock Analysis Report This article GrabAGun Digital Hldgs Q1 2026 Earnings Call Transcript originally appeared on Benzinga.com ﾩ 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

First Quarter Revenues Increased 11.1% to $25.9 million Firearms Sales Increased 10.5%, Well Ahead of the 1.6% Increase in Adjusted NICS Background Checks Launched PEW Logistics; Investing in Logistics Infrastructure to Drive Next Phase of Growth with Two Manufacturing Partners Onboard to Date COPPELL, Texas, May 13, 2026--(BUSINESS WIRE)--GrabAGun Digital Holdings Inc. ("GrabAGun" or the "Company") (NYSE:PEW), an online retailer of firearms, ammunition and related accessories, today reported first quarter 2026 financial results for the three months ended March 31, 2026. Marc Nemati, Chief Executive Officer of GrabAGun, commented, "We delivered a solid start to fiscal 2026 with firearms sales increasing 10.5% year-over-year, well above the 1.6% increase in Adjusted NICS background checks1 during the first quarter. These results reflect continued market share gains as well as the strength of our technology-driven platform and the loyalty of our growing customer base. "Importantly, we launched PEW Logistics, our white-label direct-to-consumer fulfillment solution for firearms manufacturers, in January 2026. This marked a major milestone in GrabAGun's journey as we continue to expand our B2B offerings and open new revenue streams for the Company. We are proud of the early success we have seen with partners Derya Arms and KelTec® Weapons which have validated PEW Logistics' value proposition and look forward to continuing to grow this business alongside our direct-to-consumer platform. Looking ahead, we remain well-positioned to execute on our growth strategy with over $106 million in cash, minimal debt, and a proven track record of outperforming and leading innovation in our industry. "The ATF has proposed amendments that could allow remote firearm transfers with secure identity verification and direct-to-home delivery under an approved framework, and we believe GrabAGun is uniquely positioned to capitalize on this potential opportunity. For over 15 years, we have invested in building the digital infrastructure, compliance systems and regulatory expertise required to operate in this complex regulatory environment at scale. Few companies have spent that long building the operational foundation that this kind of regulatory evolution would demand." First Quarter Financial Highlights Net revenue was $25.9 million, up 11.1% year-over-year, compared to $23.3 million in the prior-year quarter. Firearms sales increased 10.5% to $21.7 million. Non-firearms sales increased 10.4% to $4.1 million. Service sales totaled $0.1 million as PEW Logistics started generating revenue during the current quarter. Gross profit margin of 10.7% compared with 9.6% gross profit margin in the prior year's quarter. Loss from operations was $2.6 million compared to income from operations of $42 thousand in the prior-year quarter, driven by stock-based compensation expense, public company expenses, and increased personnel costs associated with headcount additions. Net loss was $1.8 million compared to net income of $0.1 million in the prior-year quarter. Adjusted EBITDA2 totaled a loss of $2.0 million for the quarter compared to income of $0.5 million in the prior-year quarter. Cash and cash equivalents of $106 million, or $3.62 per share, with minimal debt, as of March 31, 2026. Business Highlights Overall Customer Lifetime Value3 increased by 4.2% to $906. In Q1 2026, total site traffic grew 12.6% year-over-year with Mobile Sessions4 continuing to be a core driver attributing approximately 67.0% of site traffic, accounting for 70.0% of transactions, and 64.0% of net revenue, demonstrating a beneficial channel mix that aligns with the Company’s mobile-first strategy. For the three months ended March 31, 2026, Company net revenue increased 11.1% compared to the same period in 2025, significantly outpacing the broader industry, as the Adjusted NICS background checks increase of 1.6% during the same period, highlighting the competitive advantages of GrabAGun’s frictionless eCommerce experience. Launched PEW Logistics in January 2026, a wholly-owned subsidiary offering white-label direct-to-consumer fulfillment solutions for firearms manufacturers. Onboarded KelTec® Weapons as the platform's first implementation partner. Added Derya Arms as the second manufacturer partner in March 2026. Executed $2.4 million of share repurchases during the first quarter, with $8.7 million remaining of the Company’s previously authorized $20.0 million share repurchase program, reflecting management’s strong conviction in the Company’s fundamentals and an efficient capital allocation strategy to maximize shareholder value. First Quarter 2026 Conference Call and Webcast Management will host a conference call at 4:30 PM ET today to discuss its first quarter 2026 results. The live webcast and replay will be accessible under the Events & Presentations section of the Company’s Investor Relations website at investors.grabagun.com. About GrabAGun We are defenders. We are sportsmen. We are outdoorsmen. We believe that it is our American duty to help everyone, from first-time buyers to long-time enthusiasts, understand and legally secure their firearms and accessories. That’s why our arsenal is fully packed, consistently refreshed, and always loaded with high-quality, affordable firearms and accessories. Industry-leading brands that GrabAGun works with include Smith & Wesson Brands, Sturm, Ruger & Co., SIG Sauer, Glock, Springfield Armory and Hornady Manufacturing, among others. GrabAGun is a fast growing, digitally native and multi-brand eCommerce retailer of firearms, ammunition and related accessories, and other outdoor enthusiast products. Building on its proprietary software expertise, GrabAGun’s eCommerce site has become one of the leading firearm retail websites. In addition to its eCommerce excellence, GrabAGun has developed industry-leading solutions that transform supply chain management, combining dynamic inventory and order management with AI-powered pricing and demand forecasting. These advancements enable seamless logistics, efficient regulatory compliance and a streamlined experience for customers. Forward-Looking Statements This news release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve risks and uncertainties. Any statements other than historical facts contained herein are forward-looking statements. Forward-looking statements reflect our beliefs and expectations based on current estimates and projections. While we believe these expectations, and the estimates and projections on which they are based, are reasonable and were made in good faith, these statements are subject to numerous risks and uncertainties. Forward-looking statements can also be identified by words such as "future," "anticipates," "forecasts," "estimates," "budgets," "projects," "strategy," "guidance," "outlook," "believes," "expects," "intends," "plans," "predicts," "potential," "seek," "continue," "target," "goal," "will," "would," "should," "could," "can," "may," and similar terms, although not all forward-looking statements contain these identifying words. Forward-looking statements are not guarantees of future performance and the Company’s actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to, those discussed under the heading "Risk Factors" in the Company’s Annual Report on Form 10-K for the period ending December 31, 2025 as filed with the Securities and Exchange Commission ("SEC") on March 12, 2026, and other documents filed or to be filed by GrabAGun from time to time with the SEC. We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA. Recipients are cautioned not to put undue reliance on forward-looking statements. The forward-looking statements included herein are only made as of the date of this report, or if earlier, as of the date they were made, and we undertake no obligation to correct, update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws. Non-GAAP Financial Information We utilize Adjusted EBITDA and Adjusted EBITDA margin, non-GAAP financial measures, to supplement GAAP measures of performance as a tool to evaluate our historical financial and operational performance, identify trends affecting our business, and formulate business plans and make strategic decisions. We believe that Adjusted EBITDA provides users of our financial information with useful supplemental information that enables a better comparison of our performance across periods. We believe Adjusted EBITDA provides visibility to the underlying continuing operating performance by excluding the impact of interest income, net, income tax, and non-cash expenses, including depreciation, amortization, stock compensation, and certain non-recurring costs, as management does not believe these to be representative of our core earnings. We also provide Adjusted EBITDA margin, which is calculated as Adjusted EBITDA divided by revenue. The non-GAAP financial measures have not been calculated in accordance with GAAP and should be considered in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. We caution investors that non-GAAP financial information, by its nature, departs from traditional accounting conventions. Adjusted EBITDA is not a liquidity measure and should not be considered as discretionary cash available to us to reinvest in the growth of our business or to distribute to shareholders or as a measure of cash that will be available to us to meet our obligations. We define Adjusted EBITDA as net income (loss) excluding interest income, net, income tax, and non-cash expenses, including depreciation and amortization, stock-based compensation, and certain non-recurring costs. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of revenue. The following table reconciles our GAAP and non-GAAP financial measures for the three months ended March 31, 2026 and 2025 (in thousands, except percentages): View source version on businesswire.com: https://www.businesswire.com/news/home/20260513305210/en/ Contacts Investors & Media [email protected]