GrabAGun Digital Holdings — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net revenue for the three months ended September 30, 2026, was $21.2 million, a 4.7% decrease year-over-year from $22.3 million; firearms sales decreased 4.5% to $17.3 million, non-firearms sales decreased 11.8% to $3.7 million, and service sales totaled $0.3 million.
• Net revenue for the nine months ended September 30, 2026, was $70.4 million, a 5.3% increase year-over-year from $66.8 million; firearms sales increased 5.0% to $58.3 million, non-firearms sales increased 1.3% to $11.5 million, and service sales totaled $0.6 million.
• Gross profit increased 44% to $3.1 million for the three months ended September 30, 2026, with gross margin expanding 480 basis points to 14.4% from 9.6% in the prior year quarter.
• Gross profit margin for the nine months ended September 30, 2026, expanded 280 basis points to 12.7% from 9.9% in the prior year.
• Loss from operations was $3.8 million for the three months ended September 30, 2026, compared to $4.8 million in the prior year; for the nine months, loss from operations was $9.0 million compared to $3.9 million in the prior year.
• Net loss was $3.0 million for the three months ended September 30, 2026, compared to $3.8 million in the prior year; for the nine months, net loss was $6.7 million compared to $2.9 million in the prior year.
• Adjusted EBITDA totaled a loss of $2.1 million for the three months ended September 30, 2026, compared to a loss of $0.9 million in the prior year; for the nine months, Adjusted EBITDA totaled a loss of $5.8 million compared to income of $0.5 million in the prior year.
• Cash and cash equivalents were $96.0 million ($3.25 per share) as of September 30, 2026, with minimal debt.
• Long-term debt, net, increased to $7.6 million as of September 30, 2026, from $6.9 million as of December 31, 2025.
• Unearned revenue decreased to $1.3 million as of September 30, 2026, from $2.5 million as of December 31, 2025.

Business Segments and Product Lines:

• PEW Logistics, a wholly-owned subsidiary offering white-label e-commerce fulfillment solutions, onboarded KelTec Weapons as its first manufacturer in January 2026, followed by Derya Arms (March 2026), Backwoods Suppressors (July 2026), and SAR USA (October 2026).
• PEW Logistics launched KelTec's new website in Q3 2026, expanding its role from fulfillment partner to full e-commerce operator for KelTec firearms, accessories, and apparel.
• The Company completed the acquisition of Camfour, a New England-based wholesale distributor, subsequent to the quarter end, funded entirely with cash on hand without financing or share issuance.

Management Commentary and Tone:

• Chairman and CEO Marc Nemati stated that gross profit and margin improvements, driven by higher average selling prices, better sourcing, and disciplined purchasing, offset the impact of lower revenue caused by a difficult comparison to last year's elevated, IPO-driven demand.
• Management expressed confidence that combining Camfour's distribution capabilities with the Company's e-commerce and logistics platform will stimulate growth, expand the customer base, and improve purchasing economics.
• Management indicated a focus on disciplined investment to realize Camfour's potential, scale PEW Logistics, and strengthen the technology platform to create a durable competitive advantage.
• The Company affirmed it has ample cash and minimal debt following the Camfour acquisition and will continue to evaluate capital use based on its ability to create long-term shareholder value.

Other Key Points:

• Total site traffic increased 4% year-over-year in Q3 2026, with mobile sessions accounting for approximately 70% of traffic and 68% of revenue.
• New user growth increased 26% year-over-year, driven by Direct and Organic Social channels, while Customer Lifetime Value increased 4% year-over-year.
• Stock repurchases totaled $2.4 million for the nine months ended September 30, 2026, compared to $8.8 million in the prior year period.
• Capital expenditures for property and equipment were $5.2 million for the nine months ended September 30, 2026, compared to $34,000 in the prior year.
• Capitalized software additions were $471,000 for the nine months ended September 30, 2026, compared to $268,000 in the prior year.