American Outdoor Brands Swings to $4.1M Net Loss as Q3 Revenue Falls 3.3%

American Outdoor Brands, Inc. (NASDAQ: AOUT), a provider of outdoor lifestyle products and shooting sports accessories, reported a net loss of $4.1 million for the three months ending January 31, 2026, compared to net income of $169,000 in the year-earlier quarter. Revenue for the third quarter of fiscal 2026 fell 3.3% to $56.6 million from $58.5 million a year ago. Read more earnings reports.

The company posted an operating loss of $3.9 million for the quarter, a sharp reversal from operating income of $303,000 in the prior-year period. Gross profit declined to $23.2 million from $26.1 million, while operating expenses rose to $27.1 million from $25.8 million. Cost of goods sold increased to $33.4 million from $32.4 million despite the lower revenue.

For the nine months ending January 31, 2026, American Outdoor Brands reported a net loss of $8.8 million, compared to net income of $915,000 in the same period of fiscal 2025. Nine-month revenue dropped 10.5% to $143.5 million from $160.4 million. The company's operating loss for the nine-month period widened to $8.6 million from operating income of $799,000 a year earlier.

Balance Sheet Deterioration

Total assets fell to $224.9 million as of January 31, 2026, down from $246.4 million at the end of the prior fiscal year on April 30, 2025. Cash and cash equivalents declined sharply to $10.4 million from $23.4 million. Accounts receivable dropped to $32.9 million from $39.3 million, while inventory increased to $110.2 million from $104.7 million.

Stockholders' equity decreased to $165.7 million from $177.6 million as of April 30, 2025. The company's retained deficit expanded to $83.5 million from $74.7 million. Total liabilities fell to $59.3 million from $68.7 million, driven by a decline in current liabilities to $28.1 million from $36.8 million.

Cash Flow and Operations

American Outdoor Brands reported negative cash flow from operations of $5.1 million for the nine months ending January 31, 2026, though this represented an improvement from negative $6.4 million in the prior-year period. Cash used in investing activities totaled $2.6 million, down from $3.4 million. Cash used in financing activities increased to $5.4 million from $2.8 million a year earlier.

Research and development expenses declined to $1.3 million in the third quarter from $1.9 million a year ago. For the nine-month period, R&D spending fell to $4.5 million from $5.5 million.

Per Share Performance

The company reported a loss of $0.32 per diluted share for the third quarter of fiscal 2026, compared to earnings of $0.01 per diluted share in the prior-year quarter. For the nine-month period, the loss per diluted share was $0.70, versus earnings of $0.07 per share a year earlier. Weighted average diluted shares outstanding decreased to 12.5 million from 13.1 million in the third quarter.

The company's product portfolio encompasses hunting, fishing, meat processing, outdoor cooking, camping, shooting, and personal security products. As of January 31, 2026, American Outdoor Brands had 12.6 million shares outstanding, down from 12.7 million at the end of fiscal 2025.