Grabagun Digital | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 25.93 M

Revenue: As of FY2026 Q1, the actual value is USD 25.93 M, beating the estimate of USD 24.5 M.

EPS: As of FY2026 Q1, the actual value is USD -0.06.

EBIT: As of FY2026 Q1, the actual value is USD -3.443 M.

GrabAGun Digital Holdings Inc. operates as a single segment, disaggregating its revenue by category .

Segment Revenue

• Net Revenues: For the three months ended March 31, 2026, net revenues were $25,928 thousand, an 11.1% increase from $23,331 thousand for the three months ended March 31, 2025 .
  • Firearm Sales: Increased by $2,100 thousand, or 10%, to $21,659 thousand for the three months ended March 31, 2026, compared to $19,602 thousand for the same period in 2025, driven by an 8% increase in average sales price and a 2% increase in sales volumes .
  • Non-Firearm Sales: Increased by $400 thousand, or 10%, to $4,116 thousand for the three months ended March 31, 2026, compared to $3,729 thousand for the same period in 2025, primarily due to a 23% increase in average sales price, partially offset by a 10% decrease in sales volumes .
  • Service Sales: Totaled $153 thousand for the three months ended March 31, 2026, as PEW Logistics began generating revenue during this quarter .

Operational Metrics

• Gross Profit: Increased by $500 thousand, or 23%, to $2,766 thousand for the three months ended March 31, 2026, compared to $2,240 thousand for the same period in 2025, primarily due to an increase in firearm sales .
• Gross Profit Percentage: Was 11% for the three months ended March 31, 2026, up from 10% for the same period in 2025 .
• Cost of Goods Sold: Increased by $2,100 thousand, or 10%, to $23,162 thousand for the three months ended March 31, 2026, compared to $21,091 thousand for the same period in 2025, primarily due to the increase in net revenues .
• Sales and Marketing Expense: Increased by $41 thousand, or 17%, to $280 thousand for the three months ended March 31, 2026, compared to $239 thousand for the same period in 2025, due to increased marketing activities .
• General and Administrative Expense: Increased by $3,200 thousand, or 162%, to $5,127 thousand for the three months ended March 31, 2026, compared to $1,959 thousand for the same period in 2025, mainly due to increased employee and director-related expenses, stock-based compensation, and professional services related to public company costs .
• Total Operating Expenses: Were $5,407 thousand for the three months ended March 31, 2026, compared to $2,198 thousand for the same period in 2025 .
• Income (Loss) from Operations: Was - $2,641 thousand for the three months ended March 31, 2026, a decrease from $42 thousand for the same period in 2025 .
• Net Income (Loss): Was - $1,835 thousand for the three months ended March 31, 2026, compared to $95 thousand for the same period in 2025 .
• Interest Income, Net: Increased by $700 thousand, or 1,413%, to $802 thousand for the three months ended March 31, 2026, compared to $53 thousand for the same period in 2025, due to an increase in daily cash sweep balances .

Cash Flow

• Net Cash Provided by (Used in) Operating Activities: Was - $1,660 thousand for the three months ended March 31, 2026, compared to $1,280 thousand provided by operating activities for the same period in 2025 .
• Net Cash Used in Investing Activities: Was - $1,251 thousand for the three months ended March 31, 2026, compared to - $82 thousand for the same period in 2025, primarily for property and equipment purchases and capitalized software additions .
• Net Cash Used in Financing Activities: Was - $1,056 thousand for the three months ended March 31, 2026, compared to - $1,667 thousand for the same period in 2025, mainly due to stock repurchases, partially offset by borrowings .
• Cash and Cash Equivalents (End of Period): Totaled $106,428 thousand as of March 31, 2026, compared to $7,418 thousand as of March 31, 2025 .

Unique Metrics (Non-GAAP)

• Adjusted EBITDA: Was - $2,042 thousand for the three months ended March 31, 2026, compared to $546 thousand for the same period in 2025 .
• Adjusted EBITDA Margin: Was -8% for the three months ended March 31, 2026, compared to 2% for the same period in 2025 .

Future Outlook and Strategy

GrabAGun Digital Holdings Inc. plans to accelerate growth and consolidate the firearms, ammunition, and related accessories industry by leveraging its tech-forward approach . The company aims to optimize procurement and order fulfillment through proprietary software to reduce costs, scale operations nationwide, and potentially acquire related businesses . Management anticipates that operating expenses and cost of goods sold as a percentage of net revenues will decrease over time as the business grows and scales, with existing cash resources expected to fund operations for at least the next 12 months .