0001193125-26-104172
SEC filingGrabAGun Digital Holdings Inc. reported FY 2025 net revenues of $96.4 million, a 3.6% increase from $93.1 million in FY 2024. However, the company swung to a net loss of $2.5 million from net income of $4.5 million in the prior year. Gross profit improved to $11.3 million (11.7% margin) from $9.7 million (10.4% margin), driven by a 10% increase in firearm sales. Operating expenses surged 180% to $15.7 million, primarily due to $3.8 million in stock-based compensation and higher public company costs following the July 2025 Business Combination. The company ended the year with $110.4 million in cash and cash equivalents, bolstered by $180.6 million in proceeds from the reverse recapitalization. Key strategic initiatives include the formation of PEW Logistics for third-party fulfillment services and expansion of marketing programs with manufacturers.
GrabAGun Digital Holdings Inc. reported FY 2025 net revenues of $96.4 million, representing a 3.6% increase from $93.1 million in FY 2024. Despite revenue growth, the company recorded a net loss of $2.5 million, a significant reversal from net income of $4.5 million in the prior year. The decline in profitability was primarily driven by a 180% increase in operating expenses to $15.7 million, which included $3.8 million in stock-based compensation expense and higher public company costs following the Business Combination completed in July 2025. Gross profit improved to $11.3 million (11.7% margin) from $9.7 million (10.4% margin), reflecting a favorable product mix shift toward higher-margin firearm categories. The company ended the period with $110.4 million in cash and cash equivalents, a substantial increase from $7.9 million at the end of FY 2024, largely due to $180.6 million in proceeds from the reverse recapitalization.
Revenue growth was driven by a 10% increase in firearm sales to $78.1 million, partially offset by a 20% decline in non-firearm sales to $18.3 million. Within firearm categories, handguns remained the largest contributor at $47.8 million (51% of total revenue), up from $40.3 million (45%) in FY 2024. Long guns contributed $30.3 million (33% of revenue), relatively flat from $30.7 million in the prior year. Non-firearm categories showed mixed performance: ammunition sales declined 41% to $5.5 million, magazines decreased 19% to $2.9 million, while optics grew 40% to $2.1 million and accessories remained flat at $4.2 million. The company's eCommerce platform recorded approximately 191,000 completed customer transactions in FY 2025, down from 203,000 in FY 2024, with mobile devices accounting for approximately 67% of transactions and 64% of revenue.
Gross profit margin improved to 11.7% in FY 2025 from 10.4% in FY 2024, primarily due to a 3.4% increase in firearm sales volume and favorable pricing dynamics. However, operating margin deteriorated to -4.5% from +4.4% as operating expenses surged to $15.7 million. The expense increase was driven by $3.8 million in stock-based compensation (including $2.9 million related to shares issued to a consultant in connection with the Business Combination), $1.1 million in non-recurring transaction costs, and higher public company expenses. General and administrative expenses increased 192% to $14.8 million, while sales and marketing expenses grew 69% to $917,000 as the company expanded marketing programs with manufacturers. Adjusted EBITDA, which excludes interest income, taxes, depreciation, amortization, stock-based compensation, and non-recurring costs, was $753,000 (0.8% margin) compared to $4.7 million (5.0% margin) in FY 2024.
Net cash used in operating activities was $417,000 in FY 2025, compared to net cash provided by operating activities of $1.8 million in FY 2024. The change reflects the net loss, increased inventory levels, and higher prepaid expenses. Net cash used in investing activities was $9.0 million, primarily for the purchase of property and equipment ($8.5 million) and additions to capitalized software ($511,000). Net cash provided by financing activities was $111.9 million, driven by $180.6 million in proceeds from the reverse recapitalization, partially offset by $50.0 million in cash consideration for the Business Combination, $13.2 million in transaction costs, $8.8 million for stock repurchases, and $3.6 million in distributions to former owners. The balance sheet shows total assets of $131.3 million, including $120.7 million in current assets. Total liabilities were $23.7 million, including $16.8 million in current liabilities and $6.9 million in long-term debt. Shareholders' deficit was $107.6 million, reflecting treasury stock of $8.9 million and accumulated deficit of $4.7 million.
The company's growth strategy focuses on building a technology-driven firearms ecosystem through sector consolidation, including organic development of services like PEW Logistics (formed in October 2025) and potential strategic acquisitions. Management intends to enhance advertising and marketing strategies, having expanded manufacturer marketing programs in 2025. The company faces significant risks including dependence on vendor relationships (92% of products purchased from wholesale distributors in 2025), exposure to product liability claims, intense competition, regulatory compliance requirements, and potential negative publicity affecting the firearms industry. The company believes its cash balance of $110.4 million will be sufficient to fund operations for at least 12 months. No specific financial guidance was provided for 2026, though management expects handguns to continue generating the largest portion of total revenues.