American Outdoor Brands, Inc.

At this time, I would like to turn the call over to Liz Sharpe, Vice President of Investor Relations, for some information about today's call.

Liz Sharpe Thank you and good afternoon. Our comments today may contain predictions, estimates, and other forward-looking statements. Our use of words like anticipate, project, estimate, expect, intend, should, could, indicate, suggest, believe, and other similar expressions is intended to identify those forward-looking statements. Forward-looking statements also include statements regarding our product development, focus, objectives, strategies, and vision, our strategic evolution, our market share and market demand for our products, market and inventory conditions related to our products and in our industry in general, and growth opportunities and trends. Our forward-looking statements represent our current judgment about the future, and they are subject to various risks and uncertainties. Risk factors and other considerations that could cause our actual results to be materially different are described in our securities filings. You can find those documents, as well as a replay of this call, on our website at AOB.com. Today's call contains time-sensitive information that is accurate only as of this time. and we assume no obligation to update any forward-looking statements. Our actual results could differ materially from our statements today. I have a few important items to note about our comments on today's call. First, we reference certain non-GAAP financial measures. Our non-GAAP results exclude amortization of acquired intangible assets, stock compensation, technology implementation, non-recurring inventory reserve adjustments, other costs, and income tax adjustments. The reconciliation of GAAP financial measures to non-GAAP financial measures, whether they are discussed on today's call, can be found in our filings as well as today's earnings press release, which are posted on our website. Also, when we reference EPS, we are always referencing fully diluted EPS. Joining us on today's call is Brian Murphy, President and CEO, and Andy Fulmer, CFO. And with that, I'll turn the call over to Brian.

Thanks, Liz, and thanks, everyone, for joining us today. Fiscal 2025 marked a pivotal chapter in the American outdoor brand story. Our performance not only exceeded expectations, it delivered compelling evidence that the roots of our long-term strategy have taken hold. Across all key metrics, we saw outperformance fueled by innovation, disciplined execution, and leveraging our agile platform. Perhaps most importantly, we continue to demonstrate that our brands have significant runway for growth, expanding their reach into new categories, customers, and geographies. At the core of everything we do is our mission, to deliver innovative solutions for the moments that matter. This could be on the lake, in the woods, or at home on the patio. This mission is anchored in a clear and compelling vision to reshape how consumers engage with and experience their favorite outdoor activities. Since our spinoff in 2020, we've been dedicated to building a focused, agile business that brings our mission and vision to life. We've done this by creating repeatable innovation, expanding distribution, elevating awareness of our brands, strengthening margins, and laying the groundwork for long-term sustainable value, even in the face of a dynamic external environment. We believe fiscal 2025 clearly demonstrated the result of that focus. We achieved net sales growth of over 10%, gross margin growth of 60 basis points, adjusted EBITDA growth of 81%, double-digit growth in our outdoor lifestyle category, and double-digit growth in our traditional and international sales channels. Our performance this year is the direct result of our relentless commitment to innovation. By continually introducing differentiated IP-protected products that resonate with outdoor consumers, we have not only fortified the strength of our brands, but also deepened our partnerships with key retailers. who seek instant turnkey access to a portfolio of brands that drive foot traffic and pull-through. Over the course of the year, we launched a range of standout new products that reflect both the strength and breadth of our innovation pipeline. Here are three highlights. Bubba SFS Lite. Our latest Smart Fish Scale introduces Bubba's gamification platform to a broader market of everyday anglers at an attractive price point. Designed to enhance Bubba's appeal as a lifestyle brand that crosses both freshwater and saltwater markets, the SFS Lite extends the reach of our subscription model to over 50 million anglers in the U.S. Caldwell ClayCopter. This revolutionary new target system for shotgun sports combines a handheld electric thrower with biodegradable discs, making range visits easier, more exciting, and more environmentally friendly. Lastly, the Grilla Pyro. Grilla's first pizza oven expands the brand into a new product category. The Pyro is the first self-monitoring, pellet-fed, outdoor pizza oven with a rotating stone that eliminates burn spots and delivers true wood-fired flavor and perfectly balanced baking with the push of a button, all in as little as two minutes. The momentum we experienced in fiscal 2025 wasn't isolated to any one product. It was consistent and broad-based. The new products I just mentioned, combined with continued demand for established product offerings from our other leading brands, such as Meet Your Maker and BOG, drove our net sales results throughout the year. This demand proved especially meaningful as the year progressed and broader concerns emerged around inflation, shifting consumer behavior, and the impact of tariff-driven price increases. We believe these external pressures prompted many retailers to accelerate order placements in the last few weeks of our fiscal year in April. These actions occurred after several new tariff policies were put into place that would likely lead to near-term price adjustments across our markets. While some of this activity reflects a degree of demand pull forward, we believe this dynamic also underscores the confidence retailers have in our ability to deliver innovation that drives store traffic and category growth. Despite certain macroeconomic factors, we believe the momentum from fiscal 2025 points to something deeper than short-term market noise. It reflects a durable consumer affinity for our brands and a growing recognition of the differentiated value we bring to the outdoor market. This August, We celebrate five years as a standalone public company, a milestone that reflects not just the passage of time, but the transformation we've achieved. Looking back, I'm incredibly proud of how far we've come. When we first set out on this journey, we were largely concentrated in the shooting sports industry, selling almost exclusively to the U.S. domestic market. And we distributed the bulk of our products through traditional brick-and-mortar retailers. We set a bold strategy to evolve into an innovation-driven company that delivers sustained growth with expanded reach into diverse markets and across multiple distribution channels. So let's look at where we are today. Outdoor lifestyle versus shooting sports. Outdoor lifestyle has grown from 46% of net sales in FY20 to 57% today. International versus domestic. International has grown from 4% of net sales in FY20 to 6.5% today. Ecom versus traditional. Ecom has grown from 32% in FY20 to 38% today. We've added two new brands to our portfolio, Meet Your Maker and Gorilla. One developed and launched entirely in-house. The other we acquired online. and both of which significantly grew our D2C sales from roughly 3% to now representing over 13% of our total net sales. New products have proven to be a critical driver of growth. Sales from new products introduced after FY20 have delivered a five-year compound annual growth rate of over 40%, while combining to represent roughly 50% of our net sales in FY25. We took steps to protect future revenue, securing 170 new patents, growing our patent portfolio by over 65%. We have generated what I believe is the strongest new product pipeline in our company's history. And lastly, our business model, designed to be agile and asset-light, is yielding meaningful operating leverage. So, as we look ahead, We acknowledge that the tariff landscape continues to evolve. While the broader policy environment remains fluid, we are proactively mitigating potential risks through a disciplined, multi-pronged approach, much like the playbook we developed to navigate the 301 tariffs first introduced in 2018. We've partnered with our vast supply chain network to identify flexible sourcing solutions designed to preserve both product quality and margin integrity, At the same time, we've implemented selective pricing adjustments to help offset cost pressures where appropriate. We believe these efforts have not only strengthened our supplier relationships, but also enhanced our ability to adapt to an increasingly complex global trade environment. As we noted last quarter, the core strengths of our operating model, namely our innovation velocity, operational agility, and deep vendor partnerships, position us well to manage uncertainty and near-term turbulence while staying focused on long-term execution. We remain committed to controlling what we can control, and we believe this mindset will continue to serve us well as we navigate fiscal 2026. Before I close, I want to recognize the people behind our achievements. At AOB, our values of honesty, respect, Responsibility, discipline, collaboration, open-mindedness, and resourcefulness are more than just words. These values shape how we operate, how we lead, and how we show up for one another and for our customers. I'm proud of our team's resilience, commitment, and drive to build something enduring. I believe their passion and purpose has created a unique culture of extreme ownership and performance. I've never been more energized by the talent around me, the values we share, and the breakthroughs we're preparing to deliver. With that, I'll turn it over to Andy to walk through the financial results.