American Outdoor Brands, Inc.

Good day, everyone, and welcome to American Outdoor Brands, Inc. Third Quarter Fiscal 2026 Financial Results Conference Call. This call is being recorded. At this time, I would like to turn the call over to Liz Sharp, Vice President of Investor Relations, for some information about today's call.

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. A few important items to note about our comments on today's call. First, we referenced certain non-GAAP financial measures Our non-GAAP results exclude amortization of acquired intangible assets, stock compensation, emerging growth transition costs, non-recurring inventory reserve adjustments, impairment of assets held for sale, technology implementation costs, 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 will turn the call over to Brian.

Thanks, Liz, and thanks, everyone, for joining us today. I believe our third quarter performance demonstrates the disciplined execution of our strategy. In a period marked by shifting tariff policies, uneven retailer ordering patterns, and consumer uncertainty, our team remained focused on the fundamentals, delivering strong retail sell-through, advancing our innovation pipeline, and actively managing our portfolio to ensure our resources are concentrated behind the brands and product categories where we can create the most value. Despite the ongoing uncertainty that continues to characterize fiscal 2026, we believe our underlying operating model remains fully intact. Importantly, our results give us the confidence to reiterate our net sales and adjusted EBITDA guidance for fiscal 2026. With that, let's dig into the details. Net sales for the quarter were $56.6 million, down 3.3% on a year-over-year basis, but ahead of our expectations. To refresh everyone, there are a couple of elements creating tough sales comps in our current environment. One is an ongoing inventory reset taking place at our largest e-com retailer, and the other is the extended softness in the aiming solutions category. We believe these are near-term challenges and that our underlying business is performing very well. In fact, for the third quarter, when we adjust out for these elements, our net sales would have grown in the high single digits and our POS results would have grown in the mid-teens. Even without that adjustment, our POS results were still strong, with growth of 5% for the quarter. This marks the third consecutive quarter of favorable POS results which were led by strength in the outdoor lifestyle category. Ultimately, what matters most is what happens when consumers encounter our products at retail, and the continued strength we're seeing in POS reinforces that our innovation is resonating. The outdoor lifestyle category generated over 62% of net sales in the quarter and delivered year-over-year growth of 5.4%. driven by strength in our BOG and Meet Your Maker brands. The shooting sports category declined 15% in the quarter, largely due to softness and aiming solution products. Notably, our Caldwell brand delivered solid growth, reflecting strong retailer and consumer response to the innovative Claycopter platform. That momentum was reinforced at SHOT Show in January, where engagement around our new Claycopter and Claymore connected products was exceptionally strong. Increasingly, retail partners are seeking differentiated innovation to drive traffic and strengthen consumer engagement, allowing us to take share following our entry into the shotgun sports category. Turning to innovation. Investments we've made in our new product pipeline continue to bear fruit, with new products representing over 26% of our net sales in the quarter. Looking ahead, As we enter peak fishing season, we're preparing an initial rollout in April of ScoreTracker Live, a platform that integrates Major League Fishing ScoreTracker technology into our Bubba app to deliver real-time tournament hosting and live scoring to anglers and organizers everywhere. ScoreTracker Live brings the intensity and excitement once reserved for professional MLF bass tournaments to events of any size, from neighborhood competitions and school teams to local clubs and regional circuits. It also supports the growing adoption of catch and release tournament formats that promote sustainable fisheries, aligning competitive excitement with responsible stewardship. These new products from Caldwell and Bubba demonstrate that we are executing on a strategy that pairs two things in a novel way in our markets. And that is by combining innovative hardware with integrated digital capabilities, especially in categories where connectivity enhances the consumer experience. By building connected product ecosystems around select growth brands, we're deepening engagement, creating differentiated value for our retail partners, and supporting recurring revenue opportunities that increase customer lifetime value. The momentum we're seeing with brands like Caldwell and Bubba reflects the impact of directing our capital and innovation priorities toward areas where our capabilities can create meaningful differentiation at long-term value. There are just two examples between what we consider to be our highest growth brands, which include BOG, Bubba, Caldwell, Grilla, and Meet Your Maker. We invest in them accordingly. And that same discipline also guides how we evaluate the rest of our portfolio. We continually assess where our proven innovation engine can have the greatest impact, and just as importantly, where it cannot. During the quarter, we took two actions that reflect that disciplined approach to capital allocation and portfolio management. First, we made the decision to divest our camping and survival brand. UST was originally acquired by our former parent company in 2016 and was included in our brand portfolio when we spun off in 2020. Since then, the camping accessories category has become increasingly price-driven and more brand agnostic, with retailers de-emphasizing traditional camping products and dedicating that shelf space to other product categories. And while we evaluated opportunities to introduce differentiated innovation in the camping category, we ultimately concluded that the UST brand is unlikely to benefit from our innovation capabilities. An additional investment would be unlikely to generate returns consistent with our expectations. Therefore, we will continue fulfilling customer orders from existing inventory while we evaluate opportunities to transition the brand and its remaining inventory to an appropriate buyer. Second, and as I mentioned earlier, Weak trends in aiming solutions stand out in contrast to the balance of our shooting sports category. While we believe this market will rebound at some point, we also believe there is a greater near-term opportunity to redeploy capital into higher growth categories. As we prepare to accelerate the sell-through of a portion of this inventory, we took a reserve in the quarter that Andy will detail later. Together, These actions demonstrate our focus on investing in the brands and product categories where innovation and differentiation can drive stronger long-term growth, while reinforcing our commitment to disciplined working capital management. And lastly, I want to touch briefly on tariffs, which continue to represent a dynamic and evolving element of the operating environment for many companies, including ours. As we've discussed in prior quarters, and as we all continue to experience, The policy landscape around tariffs can change quickly, requiring us to remain agile and thoughtful in how we proceed. Our teams have done a great job staying close to these developments, evaluating the potential impacts, and positioning the business so that we can respond appropriately as conditions evolve. It's clear that the current environment requires us to remain disciplined and agile. Accordingly, we remain focused on the priorities that continue to strengthen our business, investing in innovation, refining our brand portfolio, and allocating capital with discipline. With a strong set of brands and a well-performing operating model, we believe we are well-positioned to navigate the current environment while continuing to build enduring long-term value for our shareholders. And with that, I'll turn it over to Andy to walk through the financial results.