American Outdoor Brands, Inc.
For the period ended Oct 31, 2025. Filed Dec 9, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Oct 31, 2025 · Filed Dec 9, 2025
AOUT$17.31+0.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-07-31; filed 2025-09-04.
0001808997-25-000035
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-10-31; filed 2025-12-09.
0001808997-25-000065
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 57 previous paragraphs and 78 current paragraphs.
29 unchanged; 21 reworded; 16 added; 6 removed; 1 previous and 12 current paragraphs rearranged.
Tables are not compared: 10 previous and 18 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (16)
Current report
Second Quarter Fiscal 2026 Highlights
Current report
•Gross margin was 45.6%, a decrease of 240 basis points, from the comparable quarter last year.
Current report
•Net income was $2.1 million, or $0.16 per diluted share, compared with net income of $3.1 million, or $0.24 per diluted share, for the comparable quarter last year.
Current report
•Net sales were $86.9 million, a decrease of $15.0 million or 14.7%, from the prior year comparable period.
Current report
•Gross margin was 46.0%, a decrease of 100 basis points, from the prior year comparable period.
Current report
Net sales in our e-commerce channel decreased $3.9 million, or 15.9%, from the comparable quarter last year, primarily because of lower net sales to the world's largest online retailer. We believe this decline reflects their inventory management actions, which reduced net sales across most of our products. In addition, we had lower direct-to-consumer net sales for products sold on our websites due to reduced consumer demand.
Current report
Net sales in our traditional channel increased by $828,000, or 2.3%, compared to the same quarter last year, driven primarily by stronger hunting and outdoor cooking product sales within our outdoor lifestyle category. This growth was partially offset by lower sales of our meat processing equipment.
Current report
Gross margin for the three months ended October 31, 2025 decreased 240 basis points over the comparable quarter last year, primarily because of higher promotional activity, including sales of slow-moving inventory at low margins; increased depreciation expense; and higher inbound freight and tariff costs.
Current report
Gross margin for the six months ended October 31, 2025 decreased 100 basis points from the prior year comparable period, primarily because of higher promotional activity as well as higher depreciation, freight, and tariff costs.
Current report
Research and development expenses decreased $363,000 from the prior year comparable period, primarily from lower depreciation expense. Selling, marketing, and distribution expenses decreased $1.5 million from the prior year comparable period mainly because of lower sales-volume related expenses, including compensation-related expenses. General and administrative expenses decreased $784,000 from the prior year comparable period, primarily because of lower variable compensation-related expenses and acquired intangible amortization expense, partially offset by higher public company costs.
Current report
Operating Income/(Loss)
Current report
The following table sets forth certain information regarding operating income for the three months ended October 31, 2025 and 2024 (dollars in thousands):
Current report
The following table sets forth certain information regarding operating (loss)/income for the six months ended October 31, 2025 and 2024 (dollars in thousands):
Current report
We recorded an operating loss of $4.7 million for the six months ended October 31, 2025 as compared to operating income of $497,000 in the prior year comparable period. The decrease in operating income is primarily because of lower net sales volume that resulted in $7.9 million of lower gross profit, partially offset by $2.7 million of lower operating expenses.
Current report
Net Income/(Loss)
Current report
Net loss was $4.8 million, or $0.37 loss per diluted share, for the six months ended October 31, 2025 compared with net income of $746,000, or $0.06 per diluted share, for the prior year comparable period. The net loss was primarily related to lower net sales volume and lower gross profit during the six months ended October 31, 2025 as compared to the six months ended October 31, 2024.
Removed paragraphs (6)
Previous report
First Quarter Fiscal 2026 Highlights
Previous report
•Gross margin was 46.7%, an increase of 130 basis points, over the comparable quarter last year.
Previous report
Gross margin for the three months ended July 31, 2025 increased 130 basis points over the comparable quarter last year, primarily because of the price increases mentioned above.
Previous report
Operating Loss
Previous report
The following table sets forth certain information regarding operating loss for the three months ended July 31, 2025 and 2024 (dollars in thousands):
Reworded paragraphs (21)
Previous wording
The following discussion and analysis of our financial condition and results of operations for the three months ended July 31, 2025 and 2024 should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for fiscal year ended April 30, 2025. This discussion and analysis should also be read in conjunction with our unaudited condensed consolidated financial statements and the notes thereto included in Item 1 of this Quarterly Report on Form 10-Q.
Current wording
The following discussion and analysis of our financial condition and results of operations for the three and six months ended October 31, 2025 and 2024 should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for fiscal year ended April 30, 2025. This discussion and analysis should also be read in conjunction with our unaudited condensed consolidated financial statements and the notes thereto included in Item 1 of this Quarterly Report on Form 10-Q.
Previous wording
•Net sales were $29.7 million, a decrease of $11.9 million or 28.7%, from the comparable quarter last year.
Current wording
•Net sales were $57.2 million, a decrease of $3.0 million or 5.0%, from the comparable quarter last year.
Previous wording
•Non-GAAP Adjusted EBITDA was a loss of $3.3 million for the three months ended July 31, 2025 compared with earnings of $748,000 for the three months ended July 31, 2024. See non-GAAP financial measure disclosures below for our reconciliation of non-GAAP Adjusted EBITDA.
Current wording
•Non-GAAP Adjusted EBITDA was $6.5 million for the three months ended October 31, 2025 compared with $7.5 million for the three months ended October 31, 2024. See non-GAAP financial measure disclosures below for our reconciliation of non-GAAP Adjusted EBITDA.
Previous wording
•Net loss was $6.8 million, or $(0.54) per diluted share, compared with a net loss of $2.4 million, or $(0.18) per diluted share, for the comparable quarter last year.
Current wording
•Net loss was $4.8 million, or $(0.37) per diluted share, compared with net income of $746,000, or $0.06 per diluted share, for the prior year comparable period.
Previous wording
Our e-commerce channels include net sales from customers that do not traditionally operate physical brick-and-mortar stores, but generate the majority of their revenue from consumer purchases from their retail websites. Our e-commerce channels also include our direct-to-consumer sales. Our traditional channels include customers that primarily operate out of physical brick-and-mortar stores and generate the large majority of revenue from consumer purchases in their brick-and-mortar locations. We sell our products worldwide.
Current wording
Our e-commerce channel include net sales from customers that do not traditionally operate physical brick-and-mortar stores, but generate the majority of their revenue from consumer purchases from their retail websites. Our e-commerce channel also include our direct-to-consumer sales. Our traditional channel include customers that primarily operate out of physical brick-and-mortar stores and generate the large majority of revenue from consumer purchases in their brick-and-mortar locations. We sell our products worldwide.
Previous wording
New products, which we define as any SKU introduced over the prior two fiscal years, represented 28.8% of net sales for the three months ended July 31, 2025.
Current wording
New products, which we define as any SKU introduced over the prior two fiscal years, represented 31.4% of net sales for the three months ended October 31, 2025.
Previous wording
For the three months ended July 31, 2025, total net sales decreased $11.9 million, or 28.7%, from the comparable quarter last year. We believe the decrease in net sales was primarily a result of certain customers in our traditional channel accelerating into our fourth fiscal quarter of 2025 orders that we had originally planned to receive in our first fiscal quarter of 2026, which we believe was due to the anticipated increased costs associated with tariffs imposed by the U.S. administration in March and April of 2025. The decrease in net sales was partially offset by price increases on our products to mitigate the additional tariff costs.
Current wording
For the six months ended October 31, 2025, total net sales decreased $15.0 million, or 14.7%, from the prior year comparable period. We believe the decrease in net sales was primarily a result of certain customers in our traditional channel accelerating into our fourth fiscal quarter of 2025 orders that we had originally planned to receive in our first fiscal quarter of 2026, which we believe was due to the anticipated increased costs associated with tariffs imposed by the U.S. Administration in March and April of 2025. The decrease in net sales was partially offset by price increases on our products to mitigate the additional tariff costs.
Previous wording
Net sales in our e-commerce channel decreased $5.8 million, or 35.2%, from the comparable quarter last year, primarily because of lower net sales to the world's largest online retailer that resulted in lower net sales for the majority of our product categories.
Current wording
Net sales in our e-commerce channel decreased $9.7 million, or 23.7%, from the prior year comparable period, primarily because of lower net sales to the world's largest online retailer that resulted in lower net sales for the majority of our product categories.
Previous wording
Net sales in our traditional channels decreased $6.1 million, or 24.4%, from the comparable quarter last year, which we believe is from acceleration of orders into our fourth fiscal quarter of 2025, as mentioned above. Traditional channel net sales decreased primarily because of lower net sales of the majority of our product categories, partially offset by higher personal protection product sales in our shooting sports category and meat processing product sales in our outdoor lifestyle category.
Current wording
Net sales in our traditional channel decreased $5.3 million, or 8.7%, from the prior year comparable period, which we believe is from acceleration of orders into our fourth fiscal quarter of 2025, as mentioned above. Traditional channel net sales decreased primarily because of lower net sales of the majority of our product categories, partially offset by higher personal protection product sales in our shooting sports category and outdoor cooking product sales in our outdoor lifestyle category.
Previous wording
Research and development expenses increased $281,000 over the comparable quarter last year, primarily from higher depreciation and employee compensation-related expenses. Selling, marketing, and distribution expenses decreased $863,000 from the comparable quarter last year mainly because of lower sales-volume related expenses. General and administrative expenses decreased $241,000 from the comparable quarter last year, primarily because of lower depreciation and acquired intangible amortization expense.
Current wording
Research and development expenses decreased $644,000 from the comparable quarter last year, primarily from lower depreciation expense. Selling, marketing, and distribution expenses decreased $642,000 from the comparable quarter last year mainly because of lower sales-volume related expenses, including compensation-related expenses. General and administrative expenses decreased $545,000 from the comparable quarter last year, primarily because of lower variable compensation-related expenses and acquired intangible amortization expense, partially offset by higher public company costs.
Previous wording
Operating loss for the three months ended July 31, 2025 was $4.3 million higher as compared to the comparable quarter last year primarily from lower net sales volume and lower gross profit.
Current wording
Operating income for the three months ended October 31, 2025 was $979,000 lower as compared to the comparable quarter last year primarily from lower net sales volume that resulted in $2.8 million of lower gross profit, partially offset by $1.8 million of lower operating expenses.
Previous wording
We recorded income tax expense of $58,000 for the three months ended July 31, 2025 compared with income tax expense of $13,000 for the prior year comparable period. The income tax expense recorded for the three months ended July 31, 2025 and 2024 was primarily due to a full valuation allowance recorded against our deferred tax assets.
Current wording
We recorded income tax expense of $53,000 for the six months ended October 31, 2025 compared with income tax expense of $34,000 for the prior year comparable period. The income tax expense recorded for the six months ended October 31, 2025 and 2024 was primarily due to a full valuation allowance recorded against our deferred tax assets.
Previous wording
The following table sets forth certain information regarding net loss and the related per share data for the three months ended July 31, 2025 and 2024 (dollars in thousands, except per share data):
Current wording
The following table sets forth certain information regarding net income and the related per share data for the three months ended October 31, 2025 and 2024 (dollars in thousands, except per share data):
Previous wording
Net loss was $6.8 million, or $0.53 loss per diluted share, for the three months ended July 31, 2025 compared with a net loss of $2.4 million, or $0.23 loss per diluted share, for the comparable quarter last year. The higher net loss was primarily related to lower net sales volume and lower gross profit during the three months ended July 31, 2025 as compared to the three months ended July 31, 2024.
Current wording
Net income was $2.1 million, or $0.16 per diluted share, for the three months ended October 31, 2025 compared with net income of $3.1 million, or $0.24 per diluted share, for the comparable quarter last year. The lower net income was primarily related to lower net sales volume and lower gross profit during the three months ended October 31, 2025 as compared to the three months ended October 31, 2024.
Previous wording
The following table sets forth our calculation of non-GAAP Adjusted EBITDA for the three months ended July 31, 2025 and 2024, respectively (dollars in thousands):
Current wording
The following table sets forth our calculation of non-GAAP Adjusted EBITDA for the three and six months ended October 31, 2025 and 2024, respectively (dollars in thousands):
Previous wording
The following table sets forth certain cash flow information for the three months ended July 31, 2025 and 2024 (dollars in thousands):
Current wording
The following table sets forth certain cash flow information for the six months ended October 31, 2025 and 2024 (dollars in thousands):
Previous wording
Cash used in operating activities was $1.7 million for the three months ended July 31, 2025 compared with cash used in operating activities of $4.4 million for the three months ended July 31, 2024. Cash used by operating activities for the three months ended July 31, 2025 was primarily impacted by $5.0 million of lower accrued payroll and incentives because of timing of payroll accruals and the annual payment of management incentives and $21.1 million of increased inventory. The increase in inventory was a result of planned increase in purchases to prepare for the fall and winter hunting and holiday seasons as well as new product launches later in the fiscal year. In addition, we capitalized higher tariff costs into inventory for tariffs imposed on inventory purchases for product manufactured in China. The cash usage for the three months ended July 31, 2025 was partially offset by a $17.6 million increase in accounts receivable because of the timing of customer shipments, $7.2 million increase in accounts payable due to the timing of inventory purchases as we built our inventory balances higher during our first fiscal quarter, and $3.0 million of increase accrued expenses primarily related to the timing of outbound freight accruals and higher tariff expense imposed on inventory purchases for product manufactured in China.
Current wording
Cash used in operating activities was $15.0 million for the six months ended October 31, 2025 compared with cash used in operating activities of $12.3 million for the six months ended October 31, 2024. Cash used by operating activities for the six months ended October 31, 2025 was primarily impacted by $4.1 million of lower accrued payroll and incentives because of timing of payroll accruals and the annual payment of management incentives and $19.3 million of increased inventory. The increase in inventory was a result of planned increase in purchases to prepare for the fall and winter hunting and holiday seasons as well as new product launches later in the fiscal year. In addition, we capitalized higher tariff costs into inventory for tariffs imposed on inventory purchases for product manufactured in China. The cash usage for the six months ended October 31, 2025 was partially offset by a $3.4 million increase in accounts payable due to the timing of inventory purchases as we built our inventory balances higher during our first fiscal quarter, and $2.4 million of increase accrued expenses primarily related to the higher tariff expense imposed on inventory purchases for product manufactured in China.
Previous wording
Cash used in investing activities was $370,000 during the three months ended July 31, 2025, a decrease of $735,000 as compared to the prior year comparable period. We expect to spend approximately $4.0 million to $4.5 million of capital expenditures in fiscal 2026, an increase of $100,000 to $600,000 from the $3.9 million we spent in fiscal 2025.
Current wording
Cash used in investing activities was $1.4 million during the six months ended October 31, 2025, a decrease of $217,000 as compared to the prior year comparable period. We expect to spend approximately $4.0 million to $4.5 million of capital expenditures in fiscal 2026, compared to the $3.9 million we spent in fiscal 2025.
Previous wording
Cash used in financing activities was $3.6 million for the three months ended July 31, 2025, primarily from $2.5 million used to repurchase 240,437 shares of our common stock.
Current wording
Cash used in financing activities was $4.0 million for the six months ended October 31, 2025, primarily from $3.2 million used to repurchase 314,376 shares of our common stock.
Previous wording
We had $17.8 million of cash equivalents on hand as of July 31, 2025 and had $23.4 million in cash and cash equivalents on hand as of April 30, 2024.
Current wording
We had $3.1 million of cash equivalents on hand as of October 31, 2025 and had $23.4 million in cash and cash equivalents on hand as of April 30, 2025.
Previous wording
The preparation of our condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Significant accounting policies are summarized in Note 2 of the Notes to the consolidated and combined financial statements in our Annual Report on Form 10-K for the fiscal year ended April 30, 2025. Our critical accounting policies are described in Management’s
Current wording
The preparation of our condensed consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. Significant accounting policies are summarized in Note 2 of the Notes to the consolidated and combined financial statements in our Annual Report on Form 10-K for the fiscal year ended April 30, 2025. Our critical accounting policies are described in Management’s Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended April 30, 2025, to which there have been no material changes. Actual results could differ from our estimates.
Rearranged current paragraphs (12)
Current report — wording carried from elsewhere
Our operating results for the six months ended October 31, 2025 included the following:
Current report — wording carried from elsewhere
•Non-GAAP Adjusted EBITDA was $3.4 million for the six months ended October 31, 2025 compared with $9.5 million for the six months ended October 31, 2024. See non-GAAP financial measure disclosures below for our reconciliation of non-GAAP Adjusted EBITDA.
Current report — wording carried from elsewhere
For the three months ended October 31, 2025, total net sales decreased $3.0 million, or 5.0%, from the comparable quarter last year with lower net sales in both our shooting sports and outdoor lifestyle categories, primarily from lower e-commerce channel net sales. The decrease in net sales was partially offset by price increases on our products to mitigate additional tariff costs associated with tariffs imposed by the U.S. Administration in March and April of 2025.
Current report — wording carried from elsewhere
The following table sets forth certain information regarding consolidated net sales and gross profit for the six months ended October 31, 2025 and 2024 (dollars in thousands):
Current report — wording carried from elsewhere
The following table sets forth certain information regarding trade channel net sales for the six months ended October 31, 2025 and 2024 (dollars in thousands):
Current report — wording carried from elsewhere
The following table sets forth certain information regarding geographic makeup of net sales included in the above table for the six months ended October 31, 2025 and 2024 (dollars in thousands):
Current report — wording carried from elsewhere
The following table sets forth certain information regarding net sales categories for the six months ended October 31, 2025 and 2024 (dollars in thousands):
Current report — wording carried from elsewhere
New products, which we define as any SKU introduced over the prior two fiscal years, represented 30.5% of net sales for the six months ended October 31, 2025.
Current report — wording carried from elsewhere
The following table sets forth certain information regarding operating expenses for the six months ended October 31, 2025 and 2024 (dollars in thousands):
Current report — wording carried from elsewhere
We recorded no income tax expense for the three months ended October 31, 2025 compared with income tax expense of $12,000 for the comparable quarter last year. The income tax expense recorded for the three months ended October 31, 2025 and 2024 was primarily due to a full valuation allowance recorded against our deferred tax assets.
Current report — wording carried from elsewhere
The following table sets forth certain information regarding income tax benefit for the six months ended October 31, 2025 and 2024 (dollars in thousands):
Current report — wording carried from elsewhere
The following table sets forth certain information regarding net (loss)/income and the related per share data for the six months ended October 31, 2025 and 2024 (dollars in thousands, except per share data):
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Discussion and Analysis of Financial Condition and Results of Operations in our Annual Report on Form 10-K for the fiscal year ended April 30, 2025, to which there have been no material changes. Actual results could differ from our estimates.