POWWP

• Fiscal Q3 2026 was strong operationally and financially with net sales up 7%. • Gross margin was 87% for the quarter. • GMV increased to nearly $216 million and take rate improved to 6.2%. • Operating expenses declined significantly year over year by about $22M, with a large portion due to lower litigation-related costs and recurring ordinary course corporate operating expenses down ~$1.4M. • Net income before discontinued operations in Q3 was $1.465M vs a loss last year. • Adjusted EBITDA was $6.5M, a 54% increase from the prior year's Q3. • Cash position was nearly $69.9M as of 02/09/2026. • First nine months of fiscal 2026 net sales were $37.2M vs $36.8M prior year, gross margin 87.1% vs 86.7% prior year, adjusted EBITDA per share $0.12 vs $0.10 prior year. • Focus on cost optimization and targeted investments to improve user experience on gunbroker.com.

• Near-term objective to achieve a $25 million adjusted EBITDA run rate before sales growth over the next twelve months. • Announced a stock repurchase program in January, looking to deploy it when in the open trading window over the next couple of months. • Continued focus on cost optimization alongside targeted investments to improve user experience on gunbroker.com.

Net sales for fiscal Q3 2026 were $13.4 million, an increase of 7% or about $900,000. Gross margin remained strong at 87%. Gross merchandise value increased to nearly $216 million, and the take rate improved to 6.2% from 6.17% in the prior year period. Firearm unit sales were up over 8% from the previous quarter, while adjusted mix decreased by 3.7% resulting in a 56 basis point increase in adjusted mix share. Revenue contribution details: Net sales at $13.4M, GMV at nearly $216M, take rate at 6.2%.

• Legal costs may temper results in the short term as remaining issues are resolved. • Complexity in payments implementation including licensing, compliance, KYC, AML, and dealing with banks which are slow moving. • Banks being slow to offer traditional financing for the gun industry due to historical regulatory challenges.

Q: Matt Koranda asked about what's driving good performance in firearm sales vs NICS, enhanced seller tools, and used industry shift.

A: Steve Urban said focus on buyer experience, streamlined processes, and improved fulfillment with Master FFL partnership.

Q: Matt Koranda asked about universal payments implementation timeline and impact on GMV.

A: Steve Urban said universal payments could increase take rate and GMV but complex with banks, engineering team working diligently.

Q: Mark Smith asked about Florida tax holiday impact and NSA items tax stamp going away.

A: Paul Kaczowski said Florida tax holiday wasn't a large driver, both new and used firearms up; Steve Urban said NSA items tax going away could drive interest.

Q: Mark Smith asked about operating expenses normalization and cash generation/capital allocation.

A: Steve Urban said operating expenses still have elements to reduce over time, investing in website and platform, looking at AI initiatives, and planning to execute share repurchase plan.

Q: David Cannon asked about Master FFL investment impact on COGS, bank regulation, take rate levers, and used GMV target.

A: Paul Kaczowski said Master FFL investment impacted COGS ~$60k - $120k per month; Steve Urban talked about bank regulation changes opening debt avenues; Steve Urban and Paul Kaczowski discussed take rate levers and no internal target for used GMV.