Outdoor Holding Company Q4 FY2026 earnings call

### Financial & Cost Improvement Outcomes - Delivered on the two core 2026 fiscal year goals set in August 2025: substantial SG&A overhead reduction and adjusted EBITDA growth, exceeding targets ahead of schedule - Reduced recurring ordinary course operating expenses by $5.4 million, cut corporate overhead, reduced physical footprint, and achieved $5 million in total SG&A reductions following corporate restructuring, alongside lower legal and bad debt expenses - Dramatically reduced net loss from continuing operations: to $2.7 million (2 cents per share) in Q4 FY2026 from $27 million (23 cents per share) in Q4 FY2025; to $4.9 million (4 cents per share) full-year FY2026 from $65.2 million (55 cents per share) full-year FY2025 - Generated positive cash flow from operations for full-year FY2026, ending the year with a cash balance of $68.1 million, up from $30.2 million at the end of FY2025 - Achieved an annualized adjusted EBITDA run rate exceeding the $25 million goal set 10 months prior

### Operational & Strategic Milestones - Successfully completed remediation of all previously identified material weaknesses in internal control over financial reporting by the end of FY2026, meeting the key priority ahead of schedule - Resolved the legacy DCP litigation matter with a one-time $4.4 million settlement payment, closing out most inherited legacy legal matters - Completed integration of a compliant FFL transfer platform to reduce transaction friction, improve user experience, and generate incremental revenue - Maintained a streamlined pure-play e-commerce marketplace operating model, with total operating expenses declining significantly YoY in Q4 FY2026

### New Strategic Initiatives - Launched an AI-powered standardized product listing tool in March 2026 to reduce seller listing time, improve consistency, and increase conversion rates - Hired Eric Berger as Director of AI Strategy and Implementation to lead company-wide AI initiatives; an AI-driven 24/7 virtual customer service tool is scheduled for launch within one month of the call - Commenced a disciplined share repurchase program, purchasing over 500,000 shares for $1 million in Q4 FY2026, with plans to continue repurchases going forward - Selectively invests in high-return platform enhancements to increase traffic, transaction volume, conversion, and revenue

Outdoor Holding Company operates a single core product segment: the GunBroker.com e-commerce firearms marketplace. For Q4 FY2026: net sales totaled $13.9 million, a 10.1% year-over-year (YoY) increase; gross margin was 87.6%; gross merchandise value (GMV) reached $229 million, an 11.8% YoY increase; adjusted EBITDA was $7.7 million, more than double the $2.9 million adjusted EBITDA in Q4 FY2025, representing 55% of Q4 net sales. For full-year FY2026: net sales totaled $51.5 million, a 3.5% YoY increase; gross margin improved to 87.2% from 86.9% in FY2025; full-year GMV was $823.5 million, up 3.2% YoY; take rate improved modestly to 6.21% from 6.19% in FY2025; adjusted EBITDA increased 46% YoY to $22.3 million from $15.3 million. Firearms represent the majority of GMV, with non-firearms posting a slight YoY increase in Q4 FY2026; firearms unit sales grew 8.7% YoY in Q4, and the company gained 40 basis points of share in adjusted NICs for the quarter and 41 basis points for the full year. A new incremental revenue stream from integrated FFL transfer services launched in Q4, and will begin contributing meaningfully to revenue in FY2027.

• Management maintains optimistic guidance for FY2027, noting that strong margins, efficient operations, and positive operating cash flow mean incremental revenue will generate meaningful profitability and shareholder value • The new FFL services revenue stream launching in FY2027 is expected to be accretive to sales, though it will not carry the same 87% profitability margin as core marketplace revenue • Management expects to continue gaining firearms market share relative to broader industry trends, driving organic growth • No formal downward or upward numeric revision to full-year guidance was provided, but management confirmed ongoing momentum from three consecutive quarters of sequential and YoY revenue growth

• Only open legacy legal matters are an interrelated shareholder derivative lawsuit and class action filed in Arizona; the ultimate outcome and related potential settlement costs are unknown • Ongoing legal indemnification expenses for former officers charged in the SEC Arizona matter remain, with costs varying in chunky waves depending on litigation activity, though these are the last expected buckets of legacy legal expenses • Firearms demand is dependent on external factors including political events, social unrest, and regulatory changes that cannot be predicted, and current demand levels are not comparable to the extreme peak levels seen in 2020-2021 • The company operates in a cautious consumer spending environment, which may impact overall transaction growth

Q: Analyst asked for details on Q4 FY2026 demand shape, and early FY2027 Q1 demand trends from April to June. / A: Management confirmed the company continues to outperform broader industry firearms demand, gaining market share by improving the buyer and seller experience on GunBroker. Management noted broader firearms demand is improved over the past two years, driven in part by built-up suppressor demand following the elimination of the silencer tax and upcoming midterm elections, though demand has not returned to the extreme peak levels of 2020-2021. Management declined to preview detailed financial results for periods after Q4 FY2026.

Q: Analyst asked for the priority focus areas of the new Director of AI Strategy, after the launch of the AI listing tool and upcoming customer service launch. / A: Management noted the new director started in June 2026, and his first step is to assess opportunities across the business. Existing near-term priorities include the upcoming launch of 24/7 AI-powered virtual customer service, which will improve response times for off-hours inquiries. Longer-term opportunities include better leveraging 20+ years of pricing and product data to improve search, pricing, and marketing, as well as automating repetitive tasks to improve efficiency. The director will formalize focus areas and implement specific AI solutions across the platform.

Q: Analyst asked about remaining core operating expenses after resolving the DCP litigation and settling the SEC matter, and how to model future legacy legal costs. / A: Management confirmed all legacy legal matters are resolved except the Arizona class action and shareholder derivative suit, and no additional large one-time settlements are currently expected. Ongoing indemnification costs for former officers will continue in variable waves depending on litigation activity, and these costs are explicitly excluded from adjusted EBITDA and called out as non-core one-time items in the adjusted EBITDA bridge.

Q: Analyst asked what key organic growth opportunities management sees for the business beyond core market share gains. / A: Management highlighted three key incremental opportunities: growing the advertising business, which was much larger previously and is a separate, complementary high-profit revenue line that does not impact core marketplace take rates; rolling out universal payment processing to allow buyers to use credit cards with sellers that do not currently accept cards, which will reduce transaction friction and drive substantial incremental GMV; and continued growth of the new FFL transfer service revenue stream, which is now generating revenue after incurring implementation costs in prior quarters.