Summary of QQ4 2024 results for Outdoor Holding Company 875 Series A Cumulative Redeemable Perpetual Preferred Stock (POWWP): Revenue rose modestly QoQ to $40.42 million, but the quarter remained unprofitable with net income of $(5.33) million and EBITDA of $(1.82) million. The company reported a gross margin of 14.78% on $40.42 million of revenue, reflecting ongoing fixed-cost pressure alongside product and platform costs. On a favorable note, the company generated $4.31 million of cash from operating activities and delivered free cash flow of approximately $1.85 million, supported by a sizable cash balance of $55.59 million and a net cash position (net debt of $(42.49) million) despite a modest debt load ($13.10 million). Balance sheet strength is underscored by a current ratio of 4.25 and a quick ratio of 2.78, indicating ample liquidity to navigate near-term uncertainties.
However, profitability remains a material hurdle. YoY metrics show revenue down 7.5% versus the prior-year quarter while gross profit dropped about 50% YoY, and operating and net income declined sharply. The negative EBITDA and operating margin reflect a difficult fixed-cost structure and ongoing non-cash amortization from substantial intangible assets (Goodwill $90.9 million and Intangibles $115.6 million totaling $206.5 million). The company’s leverage remains low and liquidity robust, but near-term earnings power will hinge on margin expansion, disciplined cost control, and a sustainable path to cash-generative operations. Management commentary (where available) and strategic execution around GunBroker monetization and advertising revenue will be critical to establish a clearer earnings trajectory for the balance of 2024 into 2025.