American Outdoor Brands, Inc. (AOUT) Q4 2026: Revenue Decline, Margins Improve — Cautiously Optimistic

American Outdoor Brands, Inc. (NASDAQ: AOUT) reported its fourth quarter and full fiscal year 2026 financial results, revealing a significant decline in revenue compared to the prior year. Quarterly net sales were $47.1 million, a decrease of $14.9 million, or 24.0%, from $61.9 million in the same quarter last year. Adjusted for $10.0 million of orders that were accelerated by retailers from the first quarter of fiscal 2026 into the fourth quarter of fiscal 2025, net sales declined by 9.2%.

This quarter reflects a disappointing performance for shareholders, primarily due to the substantial drop in revenue. However, the company did manage to improve its gross margin, which rose to 46.9% from 40.9% in the comparable quarter last year. This improvement in margins indicates that while sales are down, the company is managing its costs more effectively.

Key Financial Metrics:

• Quarterly Net Sales: $47.1 million, down $14.9 million or 24.0% YoY
• Adjusted Quarterly Net Sales: Declined by 9.2% after adjusting for accelerated orders
• Quarterly Gross Margin: 46.9%, up from 40.9% YoY
• Quarterly GAAP Net Loss: $381,000, or $(0.03) per diluted share, compared to a loss of $989,000, or $(0.08) per diluted share last year
• Quarterly Non-GAAP Net Income: $1.7 million, or $0.13 per diluted share, unchanged from the prior year
• Quarterly Non-GAAP Adjusted EBITDA: $3.5 million, or 7.5% of net sales, compared to $3.5 million, or 5.6% of net sales last year

Full Year Highlights:

• Full Year Net Sales: $190.5 million, a decrease of $31.8 million, or 14.3%, from $222.3 million in the prior year
• Full Year GAAP Gross Margin: 44.7%, slightly up from 44.6% YoY
• Full Year GAAP Net Loss: $9.2 million, or $(0.73) per diluted share, compared to a loss of $77,000, or $(0.01) per diluted share last year
• Full Year Non-GAAP Net Income: $3.7 million, or $0.28 per diluted share, down from $10.0 million, or $0.76 per diluted share in the prior year
• Full Year Adjusted EBITDA: $10.2 million, or 5.3% of net sales, compared to $17.7 million, or 7.9% of net sales last year

Shareholder Returns and Guidance:

The company repurchased over $5 million of its common stock during the year, which reflects a commitment to returning value to shareholders despite the operational challenges faced. Looking ahead, American Outdoor Brands has provided guidance for fiscal 2027, expecting net sales to be in the range of $200.0 million to $210.0 million, representing growth of approximately 5% to 10% compared to fiscal 2026. Additionally, they anticipate Adjusted EBITDA for fiscal 2027 to be in the range of 6.5% to 7.5% of net sales, which at the midpoints, would represent an increase of more than 40% over the prior year.

Analyst View:

While the decline in revenue is concerning, the improvement in gross margins and the company's proactive steps in managing inventory and costs are positive signs. The commitment to innovation, as highlighted by new product launches and partnerships, positions the company for potential recovery. However, the significant net loss and overall revenue decline indicate that shareholders should remain cautious.

Forward Catalyst:

Investors should closely monitor the company's performance in the upcoming quarters, particularly how effectively they can execute their growth strategies and manage the evolving retail landscape. The anticipated product launches and the impact of improving retail inventory conditions will be critical factors to watch as American Outdoor Brands aims to return to growth in fiscal 2027.

AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

Note: All amounts are in thousands.

For the Three Months Ended	For the Twelve Months Ended
April 30, 2026	April 30, 2025
Net sales: $47,059	$190,536
Cost of sales: 25,000	105,342
Gross profit: 22,059	85,194
Operating expenses:
Research and development expenses: 1,578	6,087
Selling, marketing and distribution expenses: 12,528	51,748
General and administrative expenses: 8,312	32,926
Impairment of assets held for sale: —	3,433
Total operating expenses: 22,418	94,194
Operating loss: -359	-9,000
Other income (expense), net:
Other income, net: 12	113
Interest expense, net: -43	-276
Total other expense, net: -31	-163
Loss from operations before income taxes: -390	-9,163
Income tax benefit: -9	45
Net loss: $-381	$-9,208
Net loss per share: Basic and diluted: $-0.03	$-0.73

AMERICAN OUTDOOR BRANDS, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In thousands, except par value and share data)

Note: All amounts are in thousands.

As of: April 30, 2026	April 30, 2025
ASSETS
Current assets:
Cash and cash equivalents: $21,436	$23,423
Inventories: 91,889	104,717
Assets held for sale: 734	—
Prepaid expenses: 2,268	2,435
Other current assets: 16,978	1,535
Income tax receivable: 156	143
Total current assets: 162,694	171,590
Property, plant, and equipment, net: 9,327	11,231
Intangible assets, net: 23,527	31,411
Right-of-use assets: 30,710	31,896
Other assets: 362	227
Total assets: $226,620	$246,355
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable: $13,432	$15,717
Accrued expenses: 13,212	13,872
Accrued payroll and incentives: 1,700	5,871
Lease liabilities, current: 1,569	1,336
Total current liabilities: 29,913	36,796
Lease liabilities, net of current portion: 30,814	31,949
Total liabilities: 60,727	68,745
Commitments and contingencies:
Equity:
Common stock: $15	$15
Additional paid in capital: 283,327	280,711
Retained deficit: -83,908	-74,700
Total equity: 165,893	177,610
Total liabilities and equity: $226,620	$246,355

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