Outdoor Holding Company

Thank you for joining us and welcome to Outdoor Holding Company's first quarter earnings call for fiscal year 2027. At this time, all participants are in listen-only mode. After today's prepared marks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. Participants on this call are advised that the audio of this conference call is being broadcast live over the internet and is also being recorded for playback purposes. I would now like to turn the call over to Michael Beckel of Darrow Associates, the company's investor relations firm. Please go ahead, sir.

Good morning and thank you for participating in today's conference call. Joining me from Outdoor Holding Company's leadership team are Steve Urvan, Chairman and Chief Executive Officer, Paul Kasowski, Chief Financial Officer and Jordan Christensen, Chief Legal Officer and Corporate Secretary. During this call, management will be making forward-looking statements within the meaning of the federal securities laws, including statements that address outdoor holding companies' expectations, strategy, future performance, operational results, margins, cost structure, legal matters, capital allocation, and other matters. Forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied by such statements. For more information about these risks and uncertainties, please refer to the risk factors and other cautionary statements described in Outdoor Holding Company's most recently filed annual report on Form 10-K, quarterly report on Form 10-Q, and the company's earnings press release issued in advance of this call. Today's conference includes non-GAAP financial measures that the company believes can be useful in evaluating its performance, including adjusted EBITDA. These measures should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. For reconciliation of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the reconciliation table located in the company's earnings press release and 10Q and previously released financial reporting. The information discussed on this call is current as of today, August 10th, 2026. Except as required by law, Outdoor Holding Company disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to Outdoor Holding Company's Chairman and CEO, Steve Urvan.

Good morning, everyone, and thanks for joining us. Over the past year, we substantially stabilized and simplified the company and established a much leaner and more focused operating foundation. The stabilization phase is substantially behind us, but operational improvement is continuous. Our operating philosophy is simple, continuous improvement and disciplined growth. Continuous improvement means operating the business better every quarter, simplifying processes, improving efficiency, applying technology where it creates measurable value and allocating capital to its highest and best use. Disciplined growth means investing in initiatives that strengthen the platform, expand monetization through value-added services and create durable long-term shareholder value, not simply by charging customers more, but by making the platform more valuable and monetizing more of each transaction. This quarter demonstrates the earnings power of that philosophy. Four numbers capture the quarter. Net revenues increased 22.1% to 14.5 million, marking our fourth consecutive quarter of year-over-year revenue growth. Net income from continuing operations improved by 9.4 million from a 5.9 million loss to income of $3.6 million. Adjusted EBITDA increased 152% to $7.9 million. And operating cash flow improved by $11.1 million from a deficit of $6.7 million last year to positive $4.4 million this year. Just as importantly, improvement was broad-based. Traffic, conversion, average order value, and firearm unit sales all increased while our leaner operating structure converted that growth into meaningful earnings and cash flow. Paul will walk through the financial bridge, so I will focus on the three principal operating drivers. First, marketplace productivity. Conversion improved and average item values rose with gains across both new and used products. Firearm units sold increased 11.6% against a 5.3% increase in adjusted NICs. Our FSL required units represented approximately 6.4% of adjusted NICs, an increase of 41 basis points year over year. That performance indicates that GunBroker grew faster than the broader market during the quarter. Second, FSL transfer revenue. The FSL integration launched at the beginning of the fiscal year, created a new revenue stream, expanded our dealer network, centralized verification and compliance, and streamlined the transfer process. It contributed meaningfully to both revenue and take rate in its first quarter of operation. Paul will discuss the financial contribution and the initial implementation costs in more detail. Third, Virginia provided a meaningful but temporary tailwind. Buying in Virginia driven by proposed legislation banning high-capacity firearms contributed to a meaningful portion of our year-over-year GMV increase. We are not assuming that demand pulled forward into the first quarter will repeat in the second quarter. Enforcement of the new law is currently subject to preliminary injunctions and the litigation continues. However, excluding Virginia, GMV still increased approximately $23 million year over year, supported by improvements in traffic, conversion, and average order value. That broader marketplace performance is the more important indicator of the underlying health of the business, despite a slowdown in June velocity. One category worth highlighting before I turn the call over to Paul is silencers and suppressed firearms, where GMV increased approximately 71% year over year. Effective January 1, the federal making and transfer taxes were reduced to zero for most NFA items, including silencers. while the application and registration requirements remained in place. We believe the lower transaction costs should support demand in this category, although quarterly growth may be uneven and this remains smaller than firearms overall. With that, let me turn it over to Paul.