Outdoor Holding Company, through its AMMO Inc segment historically, reported QQ4 2024 results showing a revenue base of approximately $40.4 million and a net loss of about $5.33 million, reflecting ongoing margin pressures from a shift in sales mix and ongoing capacity infill in the ammunition manufacturing division. The quarterly gross margin of 14.8% was dragged lower by weaker mix despite GunBroker’s steady, margin-rich contribution. Management stressed that margins in the rifle casing/large-caliber production are being optimized through a 30+ week operations-improvement engagement designed to increase throughput and reduce overhead absorption as capacity scales. Net cash from operations of roughly $4.3 million for the quarter, plus a robust ending cash balance of about $55.6 million, supported a free cash flow generation of approximately $1.85 million and a net cash position of roughly $42.5 million (net debt negative) at period end, highlighting strong liquidity amidst a backdrop of profitability normalization efforts.
Strategically, the company highlighted a multi-year transformation centered on GunBroker expansion and ammunition manufacturing capacity upgrades. Notably, GunBroker’s ecosystem enhancements included the Collector's Elite platform, a broadened financing pathway via Gearfire Capital, and a 71% Net Promoter Score (NPS) signaling strong community engagement. In ammunition, management indicated early signs of margin improvement as rifle casing production ramps, with an expected 30-40% uplift in rifle casing manufacturing by year-end, anticipated to materialize in Q2-Q3 2025. Management underscored a disciplined pathway to profitability for the Ammunition division, while remaining cautious on near-term guidance, reiterating that no formal forecast was provided but a constructive profitability trajectory is expected as production capacity comes online and overhead is absorbed more efficiently.