Executive Summary
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.
Key Performance Indicators
QoQ: -45.19% | YoY:-49.84%
QoQ: -139.05% | YoY:-76.70%
QoQ: -224.39% | YoY:-81.21%
QoQ: -49.67% | YoY:-78.88%
Key Insights
Revenue: $40.42 million (QoQ +12.26%; YoY -7.47%)
Gross Profit: $5.97 million; Gross Margin: 14.78% (YoY -49.84%; QoQ -45.19%)
Operating Income: $(6.16) million; Operating Margin: (−15.24%) (YoY −76.70%; QoQ −139.05%)
Net Income: $(5.33) million; Net Margin: (−13.19%) (YoY −81.21%; QoQ −224.39%)
EPS (Diluated): $(0.0449)
EBITDA: $(1.82) million; EBITDA Margin: (−4.51%)
Cash Flow: Operating Cash Flow $4.31 million; Free Cash Flow $1.85 million; Capex $(2.46) million
Liquidity: Cash ...
Financial Highlights
Revenue: $40.42 million (QoQ +12.26%; YoY -7.47%)
Gross Profit: $5.97 million; Gross Margin: 14.78% (YoY -49.84%; QoQ -45.19%)
Operating Income: $(6.16) million; Operating Margin: (−15.24%) (YoY −76.70%; QoQ −139.05%)
Net Income: $(5.33) million; Net Margin: (−13.19%) (YoY −81.21%; QoQ −224.39%)
EPS (Diluated): $(0.0449)
EBITDA: $(1.82) million; EBITDA Margin: (−4.51%)
Cash Flow: Operating Cash Flow $4.31 million; Free Cash Flow $1.85 million; Capex $(2.46) million
Liquidity: Cash and cash equivalents $55.59 million; Total debt $13.10 million; Net debt $(42.49) million; Current ratio 4.25; Quick ratio 2.78; Cash ratio 1.80
Balance Sheet: Total assets $399.90 million; Total liabilities $43.35 million; Total stockholders’ equity $356.56 million; Intangibles $115.59 million; Goodwill $90.87 million; Total intangible assets and goodwill $206.46 million
Valuation/Multiples (POWWP): Price-to-book around 8.51; Price-to-sales around 75.08; Negative earnings drive a negative P/E (-142.27); Enterprise value multiple negative driven by net cash position; Dividend yield per dataset near 0.0255%
Working Capital/Operational Metrics: DSO 62.84 days; DIO 119.04 days; DPO 60.50 days; CCC ~121 days; Cash flow coverage ~0.33x; Interest coverage negative (−37.89x) due to negative EBITDA
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
40.42M |
-7.47% |
12.26% |
| Gross Profit |
5.97M |
-49.84% |
-45.19% |
| Operating Income |
-6.16M |
-76.70% |
-139.05% |
| Net Income |
-5.33M |
-81.21% |
-224.39% |
| EPS |
-0.04 |
-78.88% |
-49.67% |
Key Financial Ratios
operatingProfitMargin
-15.3%
operatingCashFlowPerShare
$0.04
freeCashFlowPerShare
$0.02
dividendPayoutRatio
-14.5%
priceEarningsRatio
-142.27
Management Commentary
No earnings call transcript data provided in the supplied materials. As a result, transcript-based highlights are not available. If transcripts become accessible, themes typically cover strategy execution, platform monetization (GunBroker), cost discipline, and market conditions in e-commerce and firearms-related commerce.
Forward Guidance
No formal forward guidance was provided in the materials. Given the QQ4 2024 results, a cautious but constructive outlook would center on: (1) monetization and take-rate improvements on GunBroker and related banner advertising, (2) margin expansion through cost discipline and optimization of operating expenses (G&A and selling/marketing), (3) continued preservation of liquidity and a levered-free balance sheet with ample cash to fund growth initiatives and any modest capex, (4) potential impairment risk considerations given substantial goodwill and intangible assets, and (5) monitoring regulatory developments affecting firearm-related commerce. In the absence of explicit targets, investors should watch trajectory in revenue growth (QoQ and YoY), gross margin stabilization or improvement, and free cash flow generation as early indicators of turning profitability, while maintaining the strong liquidity position evidenced by cash of $55.59 million and net cash of $(42.49) million.