Executive Summary
Outdoor Holding Company’s QQ2 2024 results show a revenue decline against the prior-year period, accompanied by meaningful losses and negative operating leverage, but with a solid liquidity backdrop and positive operating cash flow. In the quarter, revenue was $34.37 million, gross profit $8.29 million (gross margin 24.1%), and the company posted an operating loss of $8.82 million and a net loss of $7.50 million, translating to EPS of -$0.07. EBITDA was negative at -$4.34 million, underscoring a mismatch between fixed cost structure and current revenue levels.
Despite the earnings volatility, balance sheet strength is evident: cash and cash equivalents stood at $49.56 million, total assets were $402.65 million, and total liabilities were $39.67 million, yielding a robust liquidity profile with current ratio of 4.69 and a quick ratio of 2.77. Net debt remained negative (net cash position), with cash flow from operations of $5.15 million and free cash flow of $3.85 million for the quarter, driven in part by favorable working capital movements. The company maintains a sizable intangible asset base (goodwill and intangible assets of roughly $213.10 million) and a moderate debt load (short-term debt $1.79 million, long-term debt $11.58 million). The favorable cash generation and minimal near-term debt service obligations provide a cushion for ongoing strategic initiatives, but the sustained profitability challenge necessitates closer attention to cost structure and revenue quality.
Looking ahead, management commentary and formal guidance were not disclosed in the provided data. As a result, the investment case hinges on the ability to convert cash flow strength into sustained profitability, manage the auto-regressive cost base, and monitor regulatory and competitive dynamics in the online marketplace and aerospace/defense-adjacent segments. The POWWP instrument itself will be sensitive to the issuer’s overall capital allocation and distributions, which should be watched for any changes that could affect preferred-share investors.
Key Performance Indicators
QoQ: -40.91% | YoY:-35.43%
QoQ: -425.25% | YoY:-1 649.80%
QoQ: -585.73% | YoY:-832.21%
QoQ: -250.00% | YoY:-600.00%
Key Insights
Revenue: $34,372,000; YoY -28.82%; QoQ +0.34%. Gross Profit: $8,288,000; YoY -35.43%; QoQ -40.91%; Gross Margin: 24.1%. Operating Income: -$8,819,000; YoY change not explicitly provided but implied large deterioration; Operating Margin: -25.66%. Net Income: -$7,495,000; YoY -832.21%; QoQ -585.73%. EPS: -$0.07; YoY -600%; QoQ -250%.
Key cash flow and balance sheet indicators: Net cash provided by operating activities: $5,155,000; Free cash flow: $3,850,732. Total assets: $402,654,983; Total liab...
Financial Highlights
Revenue: $34,372,000; YoY -28.82%; QoQ +0.34%. Gross Profit: $8,288,000; YoY -35.43%; QoQ -40.91%; Gross Margin: 24.1%. Operating Income: -$8,819,000; YoY change not explicitly provided but implied large deterioration; Operating Margin: -25.66%. Net Income: -$7,495,000; YoY -832.21%; QoQ -585.73%. EPS: -$0.07; YoY -600%; QoQ -250%.
Key cash flow and balance sheet indicators: Net cash provided by operating activities: $5,155,000; Free cash flow: $3,850,732. Total assets: $402,654,983; Total liabilities: $39,667,322; Total stockholders’ equity: $362,987,661. Cash and cash equivalents: $49,564,868; short-term debt: $1,794,702; long-term debt: $11,575,279; net debt: -$36,194,887 (net cash position). Current ratio: 4.69; Quick ratio: 2.77; Cash ratio: 1.793. Revenue efficiency metrics show asset turnover 0.0854 and operating cash flow per share $0.0436; price-to-book 8.02; price-to-sales 84.67; dividend yield effectively negligible at 0.000269.
Note: All figures are in USD and reflect the QQ2 2024 period data provided in the source document.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
34.37M |
-28.82% |
0.34% |
| Gross Profit |
8.29M |
-35.43% |
-40.91% |
| Operating Income |
-8.82M |
-1 649.80% |
-425.25% |
| Net Income |
-7.50M |
-832.21% |
-585.73% |
| EPS |
-0.07 |
-600.00% |
-250.00% |
Key Financial Ratios
operatingProfitMargin
-25.7%
operatingCashFlowPerShare
$0.04
freeCashFlowPerShare
$0.03
dividendPayoutRatio
-10.4%
priceEarningsRatio
-97.08
Management Commentary
No earnings transcript was provided in the supplied data. Consequently, no management quotes or thematic insights from an earnings call are available to summarize. When a transcript or management commentary becomes available, the highlights typically sought would cover strategy shifts (e.g., monetization of the GunBroker platform, cost optimization, channel strategies), operational performance (traffic, take rate, and customer acquisition), market conditions (regulatory environment, firearms marketplace dynamics), and capital allocation decisions (dividends, share repurchases, and debt management).
N/A - No earnings transcript provided in the dataset.
— N/A
N/A - No earnings transcript provided in the dataset.
— N/A
Forward Guidance
No formal forward guidance is present in the provided data. Inferences about the outlook rely on the quantitative result set and sector context rather than explicit company-guided targets. Given the negative earnings trajectory and negative EBITDA, the near-term risk remains tied to improving top-line growth and operating leverage. Investors should monitor: (1) any management commentary on sustainable revenue growth in the GunBroker marketplace or related platforms, (2) changes in SG&A or cost-structure optimization programs, (3) regulatory developments that could impact online firearms marketplaces, and (4) the company’s ability to maintain or enhance free cash flow and preserve its net cash position. Absent explicit guidance, the probability-weighted outlook hinges on whether the business can stabilize revenue and reduce fixed-cost pressures while preserving liquidity.