Outdoor Holding Company Q1 FY2027 earnings call

• Overall Financial Performance • Net revenues increased 22.1% year-over-year to $14.5 million, marking the fourth consecutive quarter of year-over-year growth • Net income from continuing operations improved to $3.6 million, a $9.4 million reversal from a $5.9 million loss in the prior year quarter • Adjusted EBITDA rose 152% year-over-year to $7.9 million, with trailing 12-month adjusted EBITDA reaching ~$27 million, exceeding the prior $25 million annualized target • Operating cash flow improved by $11.1 million year-over-year to a positive $4.4 million • Cash balance increased $0.7 million to $68.8 million after completing $2 million in share repurchases, a $0.8 million preferred dividend, and a $1 million scheduled related party note payment

• Core Marketplace Performance • GMV increased 18.1% year-over-year to $223.7 million; even excluding the temporary Virginia legislative-driven demand pull-forward, GMV grew ~$23 million year-over-year • Key metrics: conversion improved 11 basis points to 1.76%, average order value rose 7.5% to $477, firearm units sold increased 11.6%, and first party engaged sessions grew 2.9% • Silencer and suppressed firearm GMV (NFA items) grew ~71% year-over-year after the federal transaction tax on most NFA items was eliminated, though quarterly growth is expected to remain uneven

• Operating Philosophy & Strategic Focus • Core operating philosophy: continuous improvement (drive efficiency, simplify processes, deploy technology for measurable value, optimize capital allocation) and disciplined growth (invest to strengthen the platform, expand monetization via value-added services, create long-term shareholder value without raising base fees) • Cost discipline: total operating expenses fell 45% year-over-year to $8.9 million, driven by completed legacy legal matters (Delaware litigation, SEC investigation, restatement), corporate restructuring, and the elimination of one-time prior year expenses; cost optimization is an ongoing process, not a one-time exercise

• Product & Technology Initiatives • FSL transfer service integration created a new revenue stream, expanded the dealer network, centralized compliance and verification, and streamlined the transfer process • Ongoing development: universal payment processing, an AI-powered listing tool to reduce listing time and improve searchability, and a piloted AI-supported customer service tool to improve response times for routine inquiries; all tools are only deployed after meeting quality and operational standards

• Capital Allocation • Priorities: maintain a strong balance sheet, make selective investments in high-return platform enhancements, return excess cash to shareholders • The company repurchased ~1 million shares for $2 million in Q1; since launching the program in January 2026, it has repurchased 1.5 million shares at an average of $1.97 per share, with $12 million remaining under the $15 million authorization

Outdoor Holding Company operates two core segments in Q1 FY27: the legacy GunBroker marketplace, and the new FSL/FFL transfer service segment. Consolidated net revenues were $14.5 million, up 22.1% year-over-year. The legacy marketplace segment contributed $13.6 million in net revenues (93.8% of total revenue), growing 14.3% year-over-year from increased transaction volume, final value fees, and marketplace service fees. The legacy marketplace had a 6.08% core take rate, a modest year-over-year decrease driven by a larger share of high-value items and top-seller discounted fee arrangements. The new FFL transfer service segment launched at the start of the fiscal year, contributing $0.9 million in net revenues (6.2% of total revenue) and adding 39 basis points to the company's overall 6.47% total take rate. Gross profit for the quarter was $12.2 million, with an 84.5% gross margin, down 260 basis points year-over-year due to one-time FSL implementation costs that are not expected to recur.

• Management does not expect the temporary, legislative-driven demand surge from Virginia to repeat in the second quarter, after demand was pulled forward into Q1 • FSL transfer service gross margin contribution is expected to improve as the service scales, with total company gross margins expected to stabilize above 85% after Q1's one-time implementation costs • Management maintains its operating philosophy and priorities for the remainder of fiscal 2027: grow marketplace activity and revenue, continue cost reduction and efficiency improvements, scale new transaction services, convert technology investments into measurable productivity, and convert earnings into cash and shareholder value • Management expects the gap between reported GAAP EBITDA and adjusted EBITDA to continue converging as legacy one-time costs are now largely in the past

• Legislative and political changes can create volatile demand shifts, including temporary demand pull-forwards or post-legislation slowdowns driven by consumer fear, uncertainty, and doubt • The broader consumer environment remains cautious, though firearms demand has been resilient to date • NFA category growth is expected to be uneven on a quarterly basis, and the category remains smaller than core firearms sales • Seasonal demand trends create typical slowdowns during the summer months, when consumer activity shifts away from online shopping

Q: What is the growth outlook for the new FFL transfer business, and what margin impact should be expected? / A: FFL transfer revenue tracks the count (not value) of required firearm transactions, so it will fluctuate with overall firearms transaction volume. One-time implementation costs tapered off at the end of Q1, so costs and profitability are expected to stabilize going forward, with the service delivering meaningful ongoing revenue and profit. The business contributed 39 basis points to the company's overall take rate, which gives a clear sense of its current scale.

Q: How has NFA item demand trended sequentially after the initial surge following the elimination of the federal transfer tax? / A: NFA item demand remains strong, with quarter-over-quarter growth of around 50% following the tax cut, on top of the 71% year-over-year GMV growth reported for the quarter.

Q: How has marketplace demand trended into July, after the Q1 Virginia demand surge? / A: July saw a typical seasonal slowdown, which aligns with the company's long-term historical pattern of lower summer activity as consumers prioritize outdoor activities and vacations over online shopping. After the Virginia legislative rush and subsequent court injunction putting the new law on hold, demand dipped back to normal levels, highlighting how regulatory changes can create short-term demand volatility independent of core marketplace trends.

Q: What is the status of AI initiatives, and what impact can they be expected to have? / A: The AI-powered customer service tool is recently live, so there is not enough data yet to measure meaningful performance. The company has hired an AI director and is evaluating all business processes to identify AI applications that can boost productivity, cut costs, improve the customer experience, and drive GMV growth. AI is expected to deliver significant operational leverage for the company's lean headcount structure.

Q: Now that the $25 million trailing 12-month adjusted EBITDA target has been exceeded, what are the next priorities for the business? / A: Q1 reflects a normalized run rate for the business, and the gap between adjusted EBITDA and GAAP EBITDA continues to close as legacy one-time costs (like legal settlements and investigation expenses) move into the past. The company will continue to make targeted investments in high-return growth and productivity initiatives like AI, with a continued focus on expanding profitability and cash flow.