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American Outdoor Brands (AOUT)
NASDAQ:AOUT
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American Outdoor Brands
(NASDAQ:AOUT)
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Select Model
Rating:49Neutral
Price Target:
$9.00
▲(0.56% Upside)
Action:ReiteratedDate:12/10/25
The overall stock score is primarily influenced by financial challenges, including declining revenues and profitability issues. Technical analysis provides mixed signals with short-term bullish momentum but longer-term bearish trends. Valuation is weak due to a negative P/E ratio and no dividend yield. The earnings call offers some optimism with strong POS performance and innovation, but these are countered by sales declines and e-commerce challenges.
Positive Factors
Margin Strength
Sustained gross margin of 45.6% and an adjusted EBITDA margin near 11% reflect durable profitability in the core product mix. This margin cushion supports continued investment in new products and retail expansion, helping absorb tariff and inventory pressures over multiple quarters.
Product Innovation
New product introductions contributing over 31% of sales and award recognition (Caldwell Claycopter) indicate a strong, sustainable product pipeline. High new-product contribution supports brand differentiation, repeat purchases and higher-margin direct channels across the medium term.
Conservative Balance Sheet
Having $3.1M in cash and zero debt demonstrates conservative capital structure and low leverage. This liquidity and balance-sheet flexibility allow the company to fund product launches, absorb tariff timing, and execute the $10M repurchase program without materially increasing financial risk.
Negative Factors
Top-line Decline
A 5% year-over-year Q2 sales decline and management guidance for a 13–14% full-year sales contraction point to structural demand weakness. Prolonged top-line pressure constrains operating leverage, reduces scale benefits and limits ability to restore margins without sustained revenue recovery.
E‑commerce Weakness
A near 16% decline in e-commerce sales, tied to the largest online-only partner, reveals channel concentration and execution gaps. Persistent online underperformance undermines diversification, increases volatility of revenue streams and weakens customer acquisition economics longer term.
Cash Conversion & Profitability
Negative operating cash flow and poor free cash flow growth, alongside negative net profit and EBIT margins, signal structural cash-conversion issues. Weak cash generation limits reinvestment, reduces buffers versus tariff/inventory shocks and constrains strategic flexibility over coming quarters.
American Outdoor Brands (AOUT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$114.29M
Dividend YieldN/A
Average Volume (3M)91.99K
Price to Earnings (P/E)―
Beta (1Y)0.98
Revenue Growth2.85%
EPS Growth24.82%
CountryUS
Employees289
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)0.29
Shares Outstanding12,587,111
10 Day Avg. Volume134,939
30 Day Avg. Volume91,990
Financial Highlights & Ratios
PEG Ratio18.80
Price to Book (P/B)0.81
Price to Sales (P/S)0.65
P/FCF Ratio-56.69
Enterprise Value/Market Cap1.27
Enterprise Value/Revenue0.70
Enterprise Value/Gross Profit1.59
Enterprise Value/Ebitda18.49
Forecast
1Y Price Target
$12.50Price Target Upside39.66% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
American Outdoor Brands Business Overview & Revenue Model
Company DescriptionAmerican Outdoor Brands, Inc. provides outdoor products and accessories for rugged outdoor enthusiasts in the United States and internationally. It offers hunting, fishing, camping, shooting, and personal security and defense products. The company also provides shooting sports accessories products include rests, vaults, and other related accessories; outdoor lifestyle products, such as premium sportsmen knives and tools for fishing and hunting; land management tools for hunting preparedness; harvesting products for post-hunt or post-fishing activities; outdoor cooking products; and camping, survival, and emergency preparedness products. In addition, it offers electro-optical devices, including hunting optics, firearm aiming devices, flashlights, and laser grips; and reloading, gunsmithing, and firearm cleaning supplies. The company sells its products through e-commerce and traditional distribution channels under the Adventurer, Harvester, Marksman, and Defender brand lanes. American Outdoor Brands, Inc. was incorporated in 2020 and is headquartered in Columbia, Missouri.
How the Company Makes MoneyAmerican Outdoor Brands generates revenue primarily through the sale of its core products, including firearms, ammunition, and outdoor-related accessories. The company's revenue model is based on direct sales to consumers through retail partners, online platforms, and direct-to-consumer channels. Key revenue streams include sales from established brands like Smith & Wesson, which contribute significantly to the overall earnings. Additionally, the company benefits from partnerships with various retailers, enhancing its distribution network and expanding market reach. Seasonal demand, particularly during hunting seasons and outdoor events, also plays a critical role in driving sales, along with the growing interest in outdoor activities among consumers.
American Outdoor Brands Key Performance Indicators (KPIs)
Any
Net Sales By Segment
Breaks down sales by business segments, revealing which product lines or services are driving revenue and indicating strategic focus areas or diversification efforts.
Breaks down sales by business segments, revealing which product lines or services are driving revenue and indicating strategic focus areas or diversification efforts.
Data provided by:
The Fly
The FlyAmerican Outdoor Brands Earnings Call Summary
Earnings Call Date:Dec 09, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with several positive aspects, such as strong POS performance, successful innovation, and strategic expansions, which are offset by declines in net sales, challenges in the e-commerce channel, and tariff impacts. The company maintains a strong balance sheet and is optimistic about future growth through innovation and strategic initiatives.Q2-2026 Updates
Positive Updates
Strong POS Performance
Total point-of-sale (POS) was up 4% year over year, marking the second consecutive quarter of favorable POS performance.
Innovation Success
New products drove over 31% of net sales, and the Caldwell Claycopter was named the 2025 innovation of the year by Guns and Ammo Magazine and the Industry Choice Awards.
Successful Black Friday and November Sales
Outdoor lifestyle category POS for November grew approximately 13%, reflecting the continued strength of growth brands like BOG, Meat, and Bubba.
Expansion with Major Retailer
Expanded product and brand offerings with a major mass-market retailer introducing Caldwell and BOG brands into thousands of stores.
Strong Balance Sheet
Ended the quarter with $3.1 million in cash and no debt, maintaining a strong balance sheet.
New Share Repurchase Program
Board of Directors approved a new $10 million share repurchase program.
Negative Updates
Decline in Net Sales
Net sales for Q2 were $57.2 million, a decrease of 5% compared to Q2 last year.
Shooting Sports Category Decline
Net sales declined 5.1% in the shooting sports category, driven by decreases in gun cleaning and personal protection products.
E-commerce Channel Challenges
E-commerce net sales decreased by 15.9%, attributed to lower sales to the largest online-only e-commerce partner.
Gross Margin Decline
Gross margin in Q2 was 45.6%, down from 48% in the previous year, affected by slow-moving inventory clearance.
Tariffs Impact
Incremental tariffs have increased inventory costs, with the impact expected to be fully mitigated only by fiscal 2027.
Company Guidance
During the American Outdoor Brands, Inc. Second Quarter Fiscal 2026 earnings call, several key financial metrics and strategic insights were shared. The company reported net sales of $57.2 million, a decrease of 5% compared to the previous year, while the outdoor lifestyle category generated $34.6 million in net sales. The traditional sales channel, which comprises about 65% of the business, saw a 2.3% increase, whereas the e-commerce channel experienced a decline of 15.9%. Despite this, the gross margin remained strong at 45.6%, albeit slightly lower than the previous year's 48%. The company's non-GAAP operating expenses for the quarter were $21.3 million, resulting in a non-GAAP EPS of $0.29. Adjusted EBITDA was $6.5 million, representing 11.3% of net sales. The call highlighted strong performance in direct-to-consumer sales and innovation, with new products contributing over 31% of net sales. Looking forward, the company anticipates a full fiscal year net sales decline of 13% to 14% compared to last year, but highlights a positive outlook for fiscal 2027 with expected benefits from tariff mitigation efforts and new product introductions.American Outdoor Brands Financial Statement Overview
Summary
American Outdoor Brands is facing financial challenges with declining revenues and profitability issues. The income statement shows negative growth and profitability, the balance sheet is stable but lacks profitability, and the cash flow statement highlights significant cash management challenges.Income Statement
American Outdoor Brands has faced declining revenues with a negative growth rate of -1.44% in the TTM period. The company is struggling with profitability, as evidenced by negative net profit and EBIT margins. Despite a relatively stable gross profit margin, the overall income statement reflects challenges in maintaining revenue growth and profitability.40
Negative
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio of 0.20, indicating manageable leverage. However, the return on equity is negative, reflecting ongoing losses. The equity ratio is stable, suggesting a solid asset base relative to equity. Overall, the balance sheet is stable but lacks profitability.55
Neutral
Cash Flow
The cash flow statement reveals significant challenges, with negative free cash flow growth and operating cash flow. The operating cash flow to net income ratio is low, indicating inefficiencies in converting income to cash. Despite a positive free cash flow to net income ratio, the overall cash flow position is weak.35
Negative
| Breakdown | TTM | Apr 2025 | Apr 2024 | Apr 2023 | Apr 2022 | Apr 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 207.35M | 222.32M | 201.10M | 191.21M | 247.53M | 276.69M |
| Gross Profit | 91.39M | 99.26M | 88.43M | 88.06M | 114.24M | 126.83M |
| EBITDA | 7.84M | 13.12M | 3.60M | 5.00M | -38.24M | 43.32M |
| Net Income | -5.58M | -77.00K | -12.25M | -12.02M | -64.88M | 18.41M |
Balance Sheet | ||||||
| Total Assets | 240.92M | 246.35M | 240.60M | 243.59M | 277.84M | 341.26M |
| Cash, Cash Equivalents and Short-Term Investments | 3.11M | 23.42M | 29.70M | 21.95M | 19.52M | 60.80M |
| Total Debt | 33.13M | 33.28M | 34.62M | 29.59M | 49.58M | 26.55M |
| Total Liabilities | 70.52M | 68.75M | 62.67M | 51.72M | 74.81M | 61.36M |
| Stockholders Equity | 170.40M | 177.61M | 177.93M | 191.86M | 203.03M | 279.90M |
Cash Flow | ||||||
| Free Cash Flow | -3.67M | -2.54M | 18.38M | 25.85M | -24.54M | 29.29M |
| Operating Cash Flow | -1.35M | 1.36M | 24.49M | 30.71M | -18.06M | 32.91M |
| Investing Cash Flow | -3.68M | -3.90M | -5.98M | -4.83M | -33.59M | -4.18M |
| Financing Cash Flow | -6.08M | -3.74M | -10.77M | -23.45M | 10.36M | 31.84M |
American Outdoor Brands Technical Analysis
Positive
8.95
Price Trends
8.69
Positive
7.96
Positive
9.11
Negative
Market Momentum
0.10
Positive
53.32
Neutral
69.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AOUT, the sentiment is Positive. The current price of 8.95 is below the 20-day moving average (MA) of 8.98, above the 50-day MA of 8.69, and below the 200-day MA of 9.11, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 53.32 is Neutral, neither overbought nor oversold. The STOCH value of 69.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AOUT.
American Outdoor Brands Risk Analysis
American Outdoor Brands disclosed 1 risk factors in its most recent earnings report. American Outdoor Brands reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
American Outdoor Brands Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $199.05M | 15.50 | 7.42% | 4.71% | -4.56% | -2.85% | |
66 Neutral | $522.34M | -22.90 | -7.78% | 3.22% | -0.07% | -31.45% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
52 Neutral | $257.85M | 26.19 | 4.03% | 5.97% | -16.49% | -81.62% | |
49 Neutral | $114.29M | -20.59 | -3.19% | ― | 2.85% | 24.82% | |
45 Neutral | $123.65M | -1.53 | -33.17% | 2.93% | 30.34% | -1749.06% |
* Consumer Cyclical Sector Average
AOUT
American Outdoor Brands
9.08
-7.30
-44.57%
CLAR
Clarus
3.22
-1.38
-30.00%
ESCA
Escalade
14.42
-0.66
-4.36%
JAKK
Jakks Pacific
22.88
-3.11
-11.97%
JOUT
Johnson Outdoors
50.50
24.05
90.90%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.