American Outdoor Brands, Inc.

American Outdoor Brands, Inc. operates in the outdoor lifestyle and shooting sports markets, serving consumers who participate in hunting, fishing, meat processing, outdoor cooking, shooting, and personal security and defense activities. The company believes the outdoor lifestyle market represents a significantly larger addressable market opportunity than the shooting sports market due to its broader consumer participation base and exposure to multiple outdoor recreation verticals. Outdoor recreation participation trends have remained favorable since 2020, resulting in approximately 14.5 million new participants since January 2020. A report issued in 2025 by the Outdoor Industry Association noted that the outdoor recreation participant base grew by 3.0 percent in calendar 2024 to a record 181.1 million participants, representing 58.6 percent of the United States population ages six and older. According to industry studies, participation has increased across a range of outdoor activities, including camping, fishing, and hunting. As of 2024, the Outdoor Foundation and Recreational Boating & Fishing Foundation estimated there were approximately 57.9 million anglers over the age of six in the United States, including more than 43 million freshwater anglers and 15 million saltwater anglers. The company's acquisition of Grilla in March 2022 provided entry into the estimated $7 billion outdoor cooking industry comprised of approximately 92 million outdoor cooking households. Participation trends in shooting sports have also remained strong. According to the National Shooting Sports Foundation, firearm ownership growth since 2020 contributed to approximately 26.2 million new entrants into shooting sports. In a 2025 study, the NSSF economic impact report estimates 3.9 million new gun owners in 2024 alone. In a 2022 study, the NSSF estimated that participation in sport shooting increased from 34 million adults in 2009 to 63.5 million adults in 2022. Additionally, the Outdoor Industry Association estimated that approximately 15 million people participated in hunting activities in 2022.

The company competes in highly competitive markets characterized by competition from major and small domestic and international companies. Its competitors primarily include a large number of private companies that directly compete with its brands. Certain competitors may have more established brand names and stronger distribution channels, and may have access to financial and marketing resources that are greater than those possessed by the company. The company competes primarily based upon innovation, performance, price, quality, reliability, durability, consumer brand awareness, and customer service and support. The world's largest e-commerce retailer accounted for 18.3% of net sales for fiscal 2026 and 20.3% for fiscal 2025. The company believes it has built loyalty and brand recognition over its history by understanding its core consumers and delivering innovative products. It has 46 product designers, engineers, quality and sourcing specialists, and software developers situated across five in-house state-of-the-art product development labs who have demonstrated the capability of delivering over 200 new products annually. The company currently has more than 440 issued and pending patents and has registered and unregistered trademarks related to its products. New products, defined as any SKU introduced over the trailing 24 months, represented 29.4% of net sales for fiscal 2026. New products introduced since fiscal 2020 represented over 50% of fiscal 2026 net sales and delivered a compound average growth rate of over 34% during that time. For the fiscal year ended April 30, 2026, products protected by intellectual property accounted for approximately 54% of the company's $190.5 million in net sales.

The company generates revenue through the sale of outdoor lifestyle products and shooting sports accessories across two distribution channels: e-commerce and traditional. E-commerce channels include net sales from customers that do not traditionally operate a physical brick and mortar store but rather generate the majority of their revenues from consumer purchases from their retail websites, including the company's own e-commerce platform. Traditional channels include net sales from customers that primarily operate out of physical brick and mortar stores, including sports specialty stores, sporting goods stores, dealers and distributors, mass market, home and auto retailers, and original equipment manufacturers. In fiscal 2026, the direct-to-consumer channel represented 14.3% of total net sales. The company does not have long-term supply or binding contracts or guarantees of minimum purchase arrangements with its customers; instead, customers generally purchase through individual purchase orders. The company grants payment terms to most commercial customers ranging from 30 to 90 days, though in some instances it provides longer payment terms.

The company's products are organized under two categories: outdoor lifestyle and shooting sports. The outdoor lifestyle category includes brands such as BOG (hunting accessories), BUBBA (fishing knives and tools), Grilla (outdoor cooking products), Hooyman (land management tools), Imperial (knives and tools), MEAT! Your Maker (meat processing equipment), Old Timer (knives and tools), Schrade (knives and tools), and Uncle Henry (knives and tools), as well as licensed brands M&P Accessories, Performance Center by Smith & Wesson, and Smith & Wesson Accessories for knives and tools. The shooting sports category includes brands such as Caldwell (shooting range and marksman products), Crimson Trace (aiming solutions), Frankford Arsenal (reloading products), LaserLyte (training systems), Lockdown (security and storage solutions), Tipton (cleaning and maintenance products), and Wheeler (gunsmithing tools), as well as licensed brands M&P Accessories (flashlights and various accessories), Performance Center by Smith & Wesson (cleaning kits and various accessories), and Smith & Wesson Accessories (flashlights, hearing and eye protection, and cleaning kits). The company's product development teams leverage a 'cross-pollination' approach, as exemplified by the BUBBA Pro Series Smart Fish Scale, which incorporates lithium battery pack technology from the Caldwell brand, Bluetooth connection capability from the Lockdown brand, interactive LCD screen and menu system from the BOG brand, and waterproof storage system and Non-Slip Grip technology from the BUBBA brand.

The company's product development process includes the Caldwell ClayCopter platform, a target shooting ecosystem centered around proprietary launchers, biodegradable target consumables, and connected software. The original handheld launcher weighs just three pounds yet delivers the power of a traditional thrower in a compact motorized design, while ClayCopter target discs are approximately 70% lighter than traditional clays. During fiscal 2026, the company expanded the platform with the introduction of the Caldwell ClayCopter Surface-to-Air launcher, a portable ground-based system capable of holding up to 50 target discs, as well as the Caldwell Claymore Connect, a Bluetooth-enabled electronic thrower for traditional clay targets. Both products integrate with the new Caldwell Clays mobile app, which allows users to wirelessly control up to ten launchers simultaneously from up to 100 yards away. The company also partnered with Major League Fishing to develop SCORETRACKER LIVE, a connected tournament management and real-time scoring platform that supports entry into a new product category within the tournament fishing market. In fiscal 2025, the company launched the BUBBA SFS Lite, which offers professional grade features and gamification capabilities for casual fishing trips. The company's outdoor cooking products under the Grilla brand include barbecue grills, Wi-Fi-enabled wood pellet grills, smokers, accessories, and modular outdoor kitchens.

On December 12, 2025, the company's Board of Directors approved a plan to divest the ust branded product line, which consists primarily of inventory and long-lived intangible assets associated with the brand. The company expects to complete the divestiture within twelve months. During fiscal 2026, the company repurchased a total of 551,283 shares of its common stock in the open market for $5.1 million, utilizing cash on hand. As of April 30, 2026, the company had $8.1 million of available funds to repurchase its common stock under the current authorization. The company's Board of Directors authorized the repurchase of up to $10.0 million of common stock on September 30, 2025, commencing on October 1, 2025 and executable through September 30, 2026. The company also recognized an IEEPA tariff refund receivable under the loss recovery accounting model of $15.2 million as of April 30, 2026, recorded in other current assets. During the year ended April 30, 2026, the company recognized a benefit of $4.4 million related to expected recoveries of previously paid IEEPA tariffs, recorded as a reduction of cost of goods sold, and reduced the carrying value of inventory on hand by $10.7 million for tariffs previously capitalized as cost of inventory.

Net sales for the fiscal year ended April 30, 2026 totaled $190.5 million, a decrease of $31.8 million, or 14.3%, from $222.3 million in the prior fiscal year. Gross profit was $85.2 million, compared to $99.3 million in the prior year, with gross margin of 44.7%, an increase of 10 basis points over the prior fiscal year's 44.6%. Net loss was $9.2 million, or $(0.73) per diluted share, compared with a net loss of $77,000, or $(0.01) per diluted share, for the prior fiscal year. Non-GAAP Adjusted EBITDA was $10.2 million, compared with $17.7 million for the prior fiscal year. Total assets were $226.6 million as of April 30, 2026, compared to $246.4 million as of April 30, 2025.

The company plans to continue introducing a continuing stream of innovative new and differentiated rugged outdoor products and product extensions that appeal to consumers. It intends to leverage its innovation advantage to gain market share, enter new product categories, enter new consumer markets, and expand distribution. The company believes its Caldwell ClayCopter platform, including the new Surface-to-Air launcher and Claymore Connect, contributed to increased product distribution with the nation's largest mass-market retailer during fiscal 2026. The company also expects its BUBBA Pro Series SFS and SFS Lite to represent its organic entry into the large freshwater fishing 'catch and release' market. The company's partnership with Major League Fishing to develop SCORETRACKER LIVE supports entry into a new product category and expands reach to new consumers within the tournament fishing market. The company believes its innovative Hooyman brand seed spreaders represent its organic expansion in the farm, home, and hardware distribution channels.

The company plans to cultivate and enhance direct relationships with consumers through its digital platforms, addressing the growing desire of consumers to engage directly with the product and brand source. It has established dedicated websites for all of its key brands, and each brand has access to marketing and e-commerce resources that work to support online marketing and delivery methods that foster direct-to-consumer efforts. The company expects that its direct-to-consumer efforts will generate pull-through for its products at retail locations for those consumers who prefer a traditional retail approach. The company's e-commerce platform and digital systems also provide opportunities to support the launch of entirely new brands and products, as demonstrated by the organic entry into the meat processing market with the MEAT! Your Maker brand and the sale of Grilla branded products directly to consumers through its websites.

The company's gross margin for fiscal 2026 was 44.7%, an increase of 10 basis points over the prior fiscal year. The company recognized a benefit of $4.4 million related to expected recoveries of previously paid IEEPA tariffs, which was recorded as a reduction of cost of goods sold. The company also reduced the carrying value of inventory on hand as of April 30, 2026 by $10.7 million for tariffs previously capitalized as cost of inventory. The company continues to monitor tariff-related developments and assess their potential impact on its business, financial condition, and results of operations.

The company maintains a flexible and resilient supply chain by identifying, qualifying, attracting, and maintaining contract manufacturers in various locations and other suppliers of finished products and components. Most of its third-party contract manufacturers and suppliers are in Asia, primarily China, and to a lesser extent, Taiwan, Thailand, Cambodia, Vietnam, Myanmar, and the Philippines. The company generally provides these suppliers with short-term advance forecasts of its production requirements, but when it anticipates delays in its supply chain or congestion at shipping ports, it will order in advance to mitigate supply chain risk. For certain products and components, the company utilizes a dual sourcing supply chain to mitigate risks associated with sourcing key components from any one supplier. The company does not have long-term contractual arrangements with any of its suppliers but has long-standing working relationships. The company leases approximately 632,000 square feet of building and surrounding property located at 1800 North Route Z, Columbia, Missouri, with a lease term ending on November 26, 2038 and an option to expand the building by up to 491,000 additional square feet. The company also leases 2,500 square feet of office space in Shenzhen, People's Republic of China and 2,500 square feet of office space in Yanjiang, People's Republic of China.

The company's gross spending on research and development activities relating to the development of new products was $6.1 million for fiscal 2026, compared to $7.7 million for fiscal 2025 and $6.9 million for fiscal 2024. The company expects to continue to utilize its cash flows to invest in its business, including research and development for new product initiatives, hire additional employees, fund growth strategies including any potential acquisitions, repay any indebtedness, and repurchase its common stock if authorized. As of April 30, 2026, the company had $8.1 million of available funds to repurchase its common stock under the current authorization, which was authorized on September 30, 2025 for up to $10.0 million, commencing on October 1, 2025 and executable through September 30, 2026. The company does not anticipate paying any cash dividends on its common stock in the foreseeable future.

The company faces headwinds from the dynamic tariff landscape. In 2025, the U.S. Administration imposed a series of tariffs on nearly all U.S. trading partners pursuant to the International Emergency Economic Powers Act of 1977. On February 20, 2026, the United States Supreme Court issued a ruling striking down tariffs previously imposed under IEEPA. Immediately following the Supreme Court ruling, the U.S. government initiated new tariffs under Section 122 of the Trade Act which have been in effect since February 24, 2026. The company recognized an IEEPA tariff refund receivable of $15.2 million as of April 30, 2026, but the ultimate timing and amount of recoveries remain subject to review and processing by governmental authorities and could be affected by future legal, regulatory, or administrative developments. The U.S. Administration has indicated it intends to contest refund claims. There continues to be uncertainty regarding existing and proposed tariff regimes, including the potential imposition, modification, suspension, or invalidation of tariffs under various statutory authorities. The company also faces risks related to its dependence on a small number of large customers, as the world's largest e-commerce retailer accounted for 18.3% of net sales for fiscal 2026.

The company's business is subject to seasonal fluctuations, with sales typically highest between August and January due to demand relating to prime hunting season, seasonal cutlery promotions, the timing of industry trade shows, and holiday season demand, as well as heightened demand for fishing and outdoor cooking products during the spring and early summer months. The company also faces risks from potential disruptions in its supply chain, including the failure of suppliers to perform to expectations, which could result in supply shortages or delays. The company's reliance on third-party contract manufacturers and suppliers in Asia exposes it to political and economic instability in those countries, as well as risks related to tariffs, currency exchange rates, transport availability and cost, and inflation.

The company is exposed to significant risk from the dynamic tariff landscape, having recognized an IEEPA tariff refund receivable of $15.2 million ¹ as of April 30, 2026, with the ultimate timing and amount of recoveries subject to review and processing by governmental authorities and the U.S. Administration indicating it intends to contest refund claims. The company relies on a small number of large customers, with the world's largest e-commerce retailer accounting for 18.3% ² of net sales for fiscal 2026, and does not have long-term supply or binding contracts with its customers, who generally purchase through individual purchase orders. The company sources a significant portion of its finished products and components from third-party contract manufacturers and other suppliers located primarily in Asia, exposing it to risks from political and economic instability, tariffs, currency exchange rates, and supply disruptions. The company's business is subject to seasonal fluctuations, with sales typically highest between August and January, and its operating results may vary from quarter to quarter due to factors including market acceptance of new products, changes in sales mix, and pricing pressures. The company faces risks related to its ability to protect its intellectual property, as it currently has more than 440 ³ issued and pending patents, and any failure to enforce or protect its intellectual property rights could impair its competitive advantage.

Management's message emphasizes the company's focus on innovation, brand development, and strategic growth through its brand lane structure and multi-channel distribution. The company's senior management team has substantial knowledge and experience in the rugged outdoor industry and has completed a total of 34 transactions over the last 18 years, ranging from $1 million to approximately $1 billion in enterprise value. Key strategic priorities include introducing a continuing stream of innovative new products, leveraging the innovation advantage to gain market share and enter new product categories, cultivating consumer relationships through digital platforms, maintaining a flexible and resilient supply chain, maintaining an asset-light operating model, and pursuing acquisitions that financially and strategically complement the current business. The company believes its brand lanes and sales organization provide a leverageable platform from which to integrate acquisitions quickly, achieve cost savings, provide immediate brand support, and add sales expertise to drive brand penetration within its customer base.