On this page of StockholderLetter.com we present the latest annual shareholder letter from American Outdoor Brands, Inc. — ticker symbol AOUT. Reading current and past AOUT letters to shareholders can bring important insights into the investment thesis.
2025 ANNUAL REPORT The best just got better (again)
Dear Shareholders, Fiscal 2025 marked a pivotal chapter in the American Outdoor Brands story. Our performance not only exceeded expectations it delivered compelling evidence that the roots of our long-term strategy have taken hold. Across all key metrics, we saw outperformance fueled by innovation, disciplined execution, and the leveraging of our agile platform. Perhaps most importantly, we continued to demonstrate that our brands have significant runway for growth expanding their reach into new categories, customers, and geographies. Our performance this year is the direct result of our relentless commitment to innovation. By continually introducing differentiated, IP-protected products that resonate with outdoor consumers, we have not only fortified the strength of our brands, but also deepened our partnerships with key retailers who seek instant, turn-key access to a portfolio of brands that drives foot traffic and pull-through. Over the course of the year, we launched a range of standout new products that reflect both the strength and breadth of our innovation pipeline. At the core of everything we do is our mission to deliver innovative solutions for the moments that matter. This could be on the lake, in the woods, or at home on the patio. This mission is anchored in a clear and compelling vision to reshape how consumers engage with, and experience, their favorite outdoor activities. Since our spinoff in 2020, we have been dedicated to building a focused, agile business that brings our mission and vision to life. We have done this by creating repeatable innovation, expanding distribution, elevating awareness of our brands, strengthening margins, and laying the groundwork for long-term sustainable value even in the face of a dynamic external environment. We believe our achievements in fiscal 2025 clearly demonstrated the result of that focus: Net sales growth of over 10% Gross margin growth of 60 basis points Adjusted EBITDA growth of 81% Double digit growth in our Outdoor Lifestyle Category, and Double digit growth in our traditional and international sales channels The momentum we experienced in fiscal 2025 was not isolated to any one product it was consistent and broad-based. Our new products, combined with continued demand for established product offerings from our other leading brands, such as MEAT! Your Maker and BOG, drove our net sales results throughout the year. This demand proved especially meaningful as the year progressed and broader concerns emerged around inflation, shifting consumer behavior, and the impact of tariff-driven price increases. We believe external pressures, including newly enacted tariff policies, prompted many retailers to accelerate orders late in our fiscal year. These dynamics likely contributed to some demand pull-forward but also reflect their confidence in our ability to deliver innovation and drive category growth. Despite certain macroeconomic factors, we believe the momentum from fiscal 2025 points to something deeper than short-term market noise. It reflects a durable consumer affinity for our brands and a growing recognition of the differentiated value we bring to the outdoor market. This August, we celebrate five years as a standalone public Company a milestone that reflects not just the passage of time, but the transformation we have driven. Looking back, we are incredibly proud of how far we have come. When we first set out on this journey, our net sales came primarily from the shooting sports industry in the U.S. domestic market, and we distributed the bulk of our products through traditional brick and mortar retailers. PIE-RO TM Grilla s first pizza oven expands the brand into a new product category. The Grilla PIE-RO is the first self-monitoring, pellet-fed, outdoor pizza oven with a rotating stone that eliminates burn spots and delivers true wood-fired flavor and perfectly balanced baking with the push of a button all in as little as 2 minutes. We set a bold strategy to evolve into an innovation-driven Company that delivers sustained growth, with expanded reach into diverse markets and across multiple distribution channels. So, let s look at where we are today: Outdoor Lifestyle vs. Shooting Sports: Outdoor Lifestyle has grown from 46% of net sales in FY20 to 57% today International vs. Domestic: International has grown from 4% of net sales in FY20 to over 6% today e-Comm vs. Traditional: e-Comm has grown from 32% in FY20 to 38% today We have added two new brands to our portfolio: MEAT! Your Maker and Grilla. One developed and launched entirely in-house, the other acquired, and both of which significantly expanded our direct-to-consumer sales from roughly 3% in FY20 to over 13% of our total net sales today Sales from new products introduced since FY20 have delivered a five-year compound annual growth rate of over 40%, while combining to represent roughly 50% of our net sales in FY25
SFS LITE We took steps to protect future revenue, securing 170 new patents, growing our patent portfolio by over 65% We have generated what we believe is the strongest new product pipeline in our Company s history And, our business model designed to be agile and assetlight is yielding meaningful operating leverage Our latest smart fish scale introduces BUBBA s gamification platform to a broader market of everyday anglers at an attractive price point. Designed to enhance BUBBA s appeal as a lifestyle brand across both freshwater and saltwater markets, the SFS Lite extends the reach of our subscription model to over 50 million anglers in the U.S. These shifts reflect our evolution from a U.S.-centric, shooting sports Company to a diversified, innovation-led portfolio of outdoor lifestyle brands with expanded global reach. As we look ahead, we remain vigilant amid an evolving tariff landscape. Drawing from the playbook we developed in response to the 301 tariffs, which were first introduced in 2018, we are proactively addressing potential headwinds through flexible sourcing strategies, and close collaboration across our global supply chain actions designed to uphold our product quality and margin integrity. These efforts have fortified our supplier relationships and enhanced our agility in navigating a complex global environment. Our innovation velocity, operational discipline, and strong vendor partnerships form the foundation of our resilience and long-term value creation. With this foundation in place, we enter fiscal 2026 with confidence fueled by the strength of our innovation engine, supported by the agility of our business design, and grounded in a strategy built for sustainable value creation. Before closing, we would like to recognize the people behind our achievements. At AOB, our values of honesty, respect, responsibility, discipline, collaboration, open-mindedness, and resourcefulness are more than just words. These values shape how we operate, how we lead, and how we show up for one another and for our customers. We are proud of our team s resilience, commitment, and drive to build something enduring, and we believe their passion and purpose has created a unique culture of extreme ownership and performance. Together, their contributions throughout fiscal 2025 helped us deliver solid results and move toward an exciting future. We also thank you, our shareholders, for your continued support and confidence in our Company. CLAYCOPTER TM This revolutionary new target system for shotgun sports combines a handheld electric thrower with biodegradable discs, making range visits easier, more exciting, and more environmentally friendly, redefining the market for target shooting and adding a new consumable to our Caldwell lineup. Brian D. Murphy BRIA President, ND Chief . MU Executive Officer, RPH Y Director BAR RY M Barry M. Monheit BARRY M. MONHEIT Chairman of the Board TM MON HEIT
Fiscal 2025 Financial Highlights We achieved strong financial results in fiscal 2025, exceeding our expectations for both net sales and profitability. We benefited from healthy demand across our portfolio, driven by recent new product launches and strong retail engagement. Our performance throughout the year reflected consistent operating discipline, gross margin expansion, and improved profitability. In line with our commitment to shareholder value, we repurchased approximately 374,000 shares during the year. We ended fiscal 2025 with a very strong, debt-free balance sheet, $23.4 million in cash, and $113.4 million in available capital. Full year net sales were $222.3 million, an increase of $21.2 million, or 10.6%, compared with net sales of $201.1 million for the prior year. Our outdoor lifestyle sales increased by 16.2% and shooting sports sales increased by 3.8% compared to fiscal 2024, driven mainly by increased net sales in our hunting, shooting accessories, meat processing, and fishing product categories. We also delivered growth in every sales channel for fiscal 2025, including our traditional and e-commerce channels, as well as our domestic and international channels. Full year gross margin was 44.6%, an increase of 60 basis points, from gross margin of 44.0% for the prior year. The increase was mainly due to higher net sales volumes, partially offset by product and customer mix and higher tariff, freight, and duty expenses from increased inventory purchases early in the year. Our long-term target for gross margins remains in the mid-40 s, and our fiscal 2025 results were right on track. Full year GAAP net loss was $77,000, or ($0.01) per diluted share, compared with a GAAP net loss of $12.2 million, or ($0.94) per diluted share, last year. Full year non-GAAP net income was $10.0 million, or $0.76 per diluted share, compared with non-GAAP net income of $4.3 million, or $0.32 per diluted share, for the prior year. GAAP to non-GAAP adjustments for net income exclude acquired intangible amortization, stock compensation, technology implementation, non-recurring inventory reserve adjustment, emerging growth status transition costs, tariff drawback adjustment, and other costs. Full year Adjusted EBITDA was $17.7 million, or 7.9% of net sales, compared with Adjusted EBITDA of $9.8 million, or 4.9% of net sales, for the prior year. For a detailed reconciliation, see the schedules that follow. $23.4 M 44.6% $222.3 M $10.0 M Cash Balance FY25 Net Sales FY25 Gross Margin FY25 Non-GAAP Net Income The goal is simple leave the land better than you found it
Reconciliation of U.S. GAAP to Non-GAAP Financial Measures In this annual report, certain non-GAAP financial measures, including non-GAAP net income, non-GAAP income per share diluted, and Adjusted EBITDA are presented. From time-to-time, the Company considers and uses these non-GAAP financial measures as supplemental measures of operating performance in order to provide the reader with an improved understanding of underlying performance trends. The Company believes it is useful for itself and the reader to review, as applicable, both (1) GAAP measures that include (i) amortization of acquired intangible assets, (ii) stock compensation, (iii) technology implementation, (iv) non-recurring inventory reserve adjustment, (v) emerging growth status transition costs, (vi) tariff drawback adjustment, (vii) income tax adjustments, (viii) interest income, (ix) income tax expense/(benefit), and (x) depreciation and amortization; and (2) the non-GAAP measures that exclude such information. The Company presents these non-GAAP measures because it considers them an important supplemental measure of its performance and believes the disclosure of such measures provides useful information to investors because it is frequently used by analysts, investors, and other interested parties to evaluate companies in its industry. The Company uses non-GAAP measures to supplement GAAP measures of performance to evaluate the effectiveness of its business strategies, to make budgeting decisions, and to neutralize its capitalization structure to compare the Company s performance against that of other peer companies using similar measures, especially companies that are private. The Company also uses non-GAAP measures to supplement GAAP measures of performance to evaluate its performance in connection with compensation decisions. The Company believes it is useful to investors and analysts to evaluate this non-GAAP measure on the same basis used to evaluate its operating results. The Company s definition of these adjusted financial measures may differ from similarly named measures used by others. The Company believes these measures facilitate operating performance comparisons from period to period by eliminating potential differences caused by the existence and timing of certain expense items that would not otherwise be apparent on a GAAP basis. These non-GAAP measures have limitations as an analytical tool and should not be considered in isolation or as a substitute for the Company s GAAP measures. The principal limitations of these measures are that they do not reflect the Company s actual expenses and may thus have the effect of inflating its financial measures on a GAAP basis. American Outdoor Brands, Inc. and Subsidiaries Reconciliation of GAAP Net Loss to Non-GAAP Adjusted EBITDA (IN THOUSANDS) (UNAUDITED) For the years ended April 30, 2025 GAAP Net Loss Interest Income (77) 2024 (12,248) (60) (39) Income Tax Expense/(Benefit) 123 (70) Depreciation and Amortization 13,179 16,005 Stock Compensation 3,500 4,075 Technology Implementation 465 Tariff Drawback Adjustment 1,113 Non-Recurring Inventory Reserve 444 Emerging Growth Status Transition Costs 458 Other 100 468 NON-GAAP ADJUSTED EBITDA 17,667 9,769
 • shareholder letter icon 9/12/2025 Letter Continued (Full PDF)
 • stockholder letter icon 8/11/2023 AOUT Stockholder Letter
 • stockholder letter icon 8/12/2024 AOUT Stockholder Letter
 • stockholder letter icon More "Consumer Goods" Category Stockholder Letters
 • Benford's Law Stocks icon AOUT Benford's Law Stock Score = 80


AOUT Shareholder/Stockholder Letter Transcript:

2025
ANNUAL
REPORT
The best just got better (again)

Dear Shareholders,
Fiscal 2025 marked a pivotal chapter in the American Outdoor
Brands story. Our performance not only exceeded expectations   
it delivered compelling evidence that the roots of our long-term
strategy have taken hold. Across all key metrics, we saw
outperformance fueled by innovation, disciplined execution, and
the leveraging of our agile platform. Perhaps most importantly,
we continued to demonstrate that our brands have significant
runway for growth   expanding their reach into new categories,
customers, and geographies.
Our performance this year is the direct result of our relentless
commitment to innovation. By continually introducing
differentiated, IP-protected products that resonate with outdoor
consumers, we have not only fortified the strength of our brands,
but also deepened our partnerships with key retailers who seek
instant,    turn-key    access to a portfolio of brands that drives foot
traffic and pull-through. Over the course of the year, we launched
a range of standout new products that reflect both the strength
and breadth of our innovation pipeline.
At the core of everything we do is our mission   to deliver innovative
solutions for the moments that matter. This could be on the lake, in
the woods, or at home on the patio. This mission is anchored in a
clear and compelling vision   to reshape how consumers engage
with, and experience, their favorite outdoor activities. Since our
spinoff in 2020, we have been dedicated to building a focused, agile
business that brings our mission and vision to life. We have done this
by creating repeatable innovation, expanding distribution, elevating
awareness of our brands, strengthening margins, and laying the
groundwork for long-term sustainable value    even in the face of a
dynamic external environment. We believe our achievements in
fiscal 2025 clearly demonstrated the result of that focus:
    Net sales growth of over 10%
    Gross margin growth of 60 basis points
    Adjusted EBITDA growth of 81%
    Double digit growth in our Outdoor Lifestyle Category, and
    Double digit growth in our traditional and international
sales channels
The momentum we experienced in fiscal 2025 was not isolated to
any one product   it was consistent and broad-based. Our new
products, combined with continued demand for established
product offerings from our other leading brands, such as MEAT!
Your Maker and BOG, drove our net sales results throughout the
year. This demand proved especially meaningful as the year
progressed and broader concerns emerged around inflation,
shifting consumer behavior, and the impact of tariff-driven price
increases. We believe external pressures, including newly
enacted tariff policies, prompted many retailers to accelerate
orders late in our fiscal year. These dynamics likely contributed to
some demand pull-forward but also reflect their confidence in
our ability to deliver innovation and drive category growth.
Despite certain macroeconomic factors, we believe the
momentum from fiscal 2025 points to something deeper than
short-term market noise. It reflects a durable consumer affinity
for our brands and a growing recognition of the differentiated
value we bring to the outdoor market.
This August, we celebrate five years as a standalone public
Company   a milestone that reflects not just the passage of time,
but the transformation we have driven. Looking back, we are
incredibly proud of how far we have come. When we first set out
on this journey, our net sales came primarily from the shooting
sports industry in the U.S. domestic market, and we distributed the
bulk of our products through traditional brick and mortar retailers.
PIE-RO
TM
Grilla   s first pizza oven expands the brand into
a new product category. The Grilla PIE-RO   
is the first self-monitoring, pellet-fed, outdoor
pizza oven with a rotating stone that eliminates
burn spots and delivers true wood-fired flavor
and perfectly balanced baking with the push of
a button     all in as little as 2 minutes.
We set a bold strategy to evolve into an innovation-driven
Company that delivers sustained growth, with expanded reach
into diverse markets and across multiple distribution channels.
So, let   s look at where we are today:
    Outdoor Lifestyle vs. Shooting Sports: Outdoor Lifestyle has
grown from 46% of net sales in FY20 to 57% today
    International vs. Domestic: International has grown from 4%
of net sales in FY20 to over 6% today
    e-Comm vs. Traditional: e-Comm has grown from 32% in
FY20 to 38% today
    We have added two new brands to our portfolio: MEAT! Your
Maker and Grilla. One developed and launched entirely
in-house, the other acquired, and both of which significantly
expanded our direct-to-consumer sales from roughly 3% in
FY20 to over 13% of our total net sales today
    Sales from new products introduced since FY20 have
delivered a five-year compound annual growth rate of over
40%, while combining to represent roughly 50% of our net
sales in FY25



SFS LITE
We took steps to protect future revenue, securing 170 new
patents, growing our patent portfolio by over 65%
We have generated what we believe is the strongest new
product pipeline in our Company   s history
And, our business model   designed to be agile and assetlight   is yielding meaningful operating leverage
Our latest smart fish
scale introduces
BUBBA   s gamification
platform to a broader
market of everyday
anglers at an attractive
price point. Designed to
enhance BUBBA   s appeal
as a lifestyle brand
across both freshwater
and saltwater markets,
the SFS Lite extends the
reach of our subscription
model to over 50 million
anglers in the U.S.
These shifts reflect our evolution from a U.S.-centric, shooting
sports Company to a diversified, innovation-led portfolio of outdoor
lifestyle brands with expanded global reach.
As we look ahead, we remain vigilant amid an evolving tariff
landscape. Drawing from the playbook we developed in response
to the 301 tariffs, which were first introduced in 2018, we are
proactively addressing potential headwinds through flexible
sourcing strategies, and close collaboration across our global
supply chain   actions designed to uphold our product quality
and margin integrity. These efforts have fortified our supplier
relationships and enhanced our agility in navigating a complex
global environment. Our innovation velocity, operational
discipline, and strong vendor partnerships form the foundation of
our resilience and long-term value creation. With this foundation
in place, we enter fiscal 2026 with confidence   fueled by the
strength of our innovation engine, supported by the agility of our
business design, and grounded in a strategy built for sustainable
value creation.
Before closing, we would like to recognize the people behind our
achievements. At AOB, our values of honesty, respect,
responsibility, discipline, collaboration, open-mindedness, and
resourcefulness are more than just words. These values shape
how we operate, how we lead, and how we show up for one
another and for our customers. We are proud of our team   s
resilience, commitment, and drive to build something enduring,
and we believe their passion and purpose has created a unique
culture of extreme ownership and performance. Together, their
contributions throughout fiscal 2025 helped us deliver solid
results and move toward an exciting future. We also thank you,
our shareholders, for your continued support and confidence in
our Company.
CLAYCOPTER
TM
This revolutionary new target system for
shotgun sports combines a handheld electric
thrower with biodegradable discs, making
range visits easier, more exciting, and more
environmentally friendly, redefining the
market for target shooting and adding a new
consumable to our Caldwell lineup.
Brian D. Murphy
BRIA President,
ND
Chief
. MU Executive Officer,
RPH
Y
Director
BAR
RY M

Barry M. Monheit
BARRY M. MONHEIT
Chairman of the Board
TM
MON
HEIT

Fiscal 2025
Financial Highlights
We achieved strong financial results in fiscal 2025, exceeding our expectations for both net sales and profitability. We benefited from
healthy demand across our portfolio, driven by recent new product launches and strong retail engagement. Our performance
throughout the year reflected consistent operating discipline, gross margin expansion, and improved profitability. In line with our
commitment to shareholder value, we repurchased approximately 374,000 shares during the year. We ended fiscal 2025 with a very
strong, debt-free balance sheet, $23.4 million in cash, and $113.4 million in available capital.
Full year net sales were $222.3 million, an increase of $21.2 million, or 10.6%, compared with net sales of $201.1 million for the prior year. Our
outdoor lifestyle sales increased by 16.2% and shooting sports sales increased by 3.8% compared to fiscal 2024, driven mainly by
increased net sales in our hunting, shooting accessories, meat processing, and fishing product categories. We also delivered growth in
every sales channel for fiscal 2025, including our traditional and e-commerce channels, as well as our domestic and international channels.
Full year gross margin was 44.6%, an increase of 60 basis points, from gross margin of 44.0% for the prior year. The increase was
mainly due to higher net sales volumes, partially offset by product and customer mix and higher tariff, freight, and duty expenses from
increased inventory purchases early in the year. Our long-term target for gross margins remains in the mid-40   s, and our fiscal 2025
results were right on track.
Full year GAAP net loss was $77,000, or ($0.01) per diluted share, compared with a GAAP net loss of $12.2 million, or ($0.94) per diluted
share, last year. Full year non-GAAP net income was $10.0 million, or $0.76 per diluted share, compared with non-GAAP net income of
$4.3 million, or $0.32 per diluted share, for the prior year. GAAP to non-GAAP adjustments for net income exclude acquired intangible
amortization, stock compensation, technology implementation, non-recurring inventory reserve adjustment, emerging growth status
transition costs, tariff drawback adjustment, and other costs. Full year Adjusted EBITDA was $17.7 million, or 7.9% of net sales, compared
with Adjusted EBITDA of $9.8 million, or 4.9% of net sales, for the prior year. For a detailed reconciliation, see the schedules that follow.
$23.4 M
44.6%
$222.3 M
$10.0 M
Cash Balance
FY25 Net Sales
FY25 Gross Margin
FY25 Non-GAAP
Net Income
The goal is simple    
leave the land better
than you found it

Reconciliation of U.S. GAAP to
Non-GAAP Financial Measures
In this annual report, certain non-GAAP financial measures, including    non-GAAP net income,       non-GAAP income per share diluted,   
and    Adjusted EBITDA    are presented. From time-to-time, the Company considers and uses these non-GAAP financial measures as
supplemental measures of operating performance in order to provide the reader with an improved understanding of underlying
performance trends. The Company believes it is useful for itself and the reader to review, as applicable, both (1) GAAP measures that
include (i) amortization of acquired intangible assets, (ii) stock compensation, (iii) technology implementation, (iv) non-recurring
inventory reserve adjustment, (v) emerging growth status transition costs, (vi) tariff drawback adjustment, (vii) income tax adjustments,
(viii) interest income, (ix) income tax expense/(benefit), and (x) depreciation and amortization; and (2) the non-GAAP measures that
exclude such information. The Company presents these non-GAAP measures because it considers them an important supplemental
measure of its performance and believes the disclosure of such measures provides useful information to investors because it is
frequently used by analysts, investors, and other interested parties to evaluate companies in its industry. The Company uses non-GAAP
measures to supplement GAAP measures of performance to evaluate the effectiveness of its business strategies, to make budgeting
decisions, and to neutralize its capitalization structure to compare the Company   s performance against that of other peer companies
using similar measures, especially companies that are private. The Company also uses non-GAAP measures to supplement GAAP
measures of performance to evaluate its performance in connection with compensation decisions. The Company believes it is useful to
investors and analysts to evaluate this non-GAAP measure on the same basis used to evaluate its operating results. The Company   s
definition of these adjusted financial measures may differ from similarly named measures used by others. The Company believes these
measures facilitate operating performance comparisons from period to period by eliminating potential differences caused by the
existence and timing of certain expense items that would not otherwise be apparent on a GAAP basis. These non-GAAP measures
have limitations as an analytical tool and should not be considered in isolation or as a substitute for the Company   s GAAP measures.
The principal limitations of these measures are that they do not reflect the Company   s actual expenses and may thus have the effect of
inflating its financial measures on a GAAP basis.
American Outdoor Brands, Inc. and Subsidiaries Reconciliation of GAAP Net Loss to
Non-GAAP Adjusted EBITDA
(IN THOUSANDS) (UNAUDITED)
For the years ended April 30,
2025
GAAP Net Loss

Interest Income
(77)
2024

(12,248)
(60)
(39)
Income Tax Expense/(Benefit)
123
(70)
Depreciation and Amortization
13,179
16,005
Stock Compensation
3,500
4,075
Technology Implementation

465
Tariff Drawback Adjustment

1,113
Non-Recurring Inventory Reserve
444

Emerging Growth Status Transition Costs
458

Other
100
468
NON-GAAP ADJUSTED EBITDA

17,667

9,769


shareholder letter icon 9/12/2025 Letter Continued (Full PDF)
 

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