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What changed in American Outdoor Brands, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of American Outdoor Brands, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+84 added−104 removedSource: 10-K (2025-06-26) vs 10-K (2024-06-27)

Top changes in American Outdoor Brands, Inc.'s 2025 10-K

84 paragraphs added · 104 removed · 70 edited across 5 sections

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeFor more information about these risks, see the risk factor titled “Our business is subject to the risk of terrorism, cyberattacks, or failure of key information technology systems,” “Breaches of our information systems could adversely affect our reputation, disrupt our operations, and result in increased costs and loss of revenue,” and “If our efforts to protect the security of personal information related to any of our customers, consumers, vendors, or employees are unsuccessful and unauthorized access to that personal information is obtained, or we experience a significant disruption in our computer systems or a cyber security breach, we could experience an adverse effect on our operations, we could be subject to costly government enforcement action and private litigation, and our reputation could suffer” under Item 1A.
Biggest changeDetailed activities include: • Continuous Monitoring and Detection: Leveraging industry leading technologies to detect and alert on any suspicious activity across the enterprise to prevent and minimize cybersecurity attacks; • Information Security Assessments: Collaborating with internal and external partners to evaluate our data and network security; • Vulnerability Scanning and Penetration Testing: Engaging third-party service providers to assess internal and external vulnerabilities and potential threats; • Cyber Risk Register Reviews: Regularly reviewing our internal risk register to remain fully informed and prepared to address potential and identified risks; • Risk Prioritization: Prioritizing and addressing risks through our dedicated cybersecurity risk management program and cybersecurity council; • Annual Third-Party SOC Reviews: Ensuring that our financially critical service partners maintain effective internal controls, including access controls, change management, backup, and disaster recovery planning; and • Tabletop Exercises and Event Simulations: Engaging all employees across the company to build awareness, education, and enhance our cyber response posture and the collective team decision-making processes. 43 Table of Contents For more information about these risks, see the risk factor titled “Our business is subject to the risk of terrorism, cyberattacks, or failure of key information technology systems,” “Breaches of our information systems could adversely affect our reputation, disrupt our operations, and result in increased costs and loss of revenue,” and “If our efforts to protect the security of personal information related to any of our customers, consumers, vendors, or employees are unsuccessful and unauthorized access to that personal information is obtained, or we experience a significant disruption in our computer systems or a cyber security breach, we could experience an adverse effect on our operations, we could be subject to costly government enforcement action and private litigation, and our reputation could suffer” under Item 1A.
The individual incident response team members represent expertise in IT, cybersecurity, and operations that has been obtained generally from a combination of education and awareness, including relevant degrees and/or certifications, and work experience.
The individual incident response team members represent expertise in IT, cybersecurity, finance, and operations that has been obtained generally from a combination of education and awareness, including relevant degrees and/or certifications, and work experience.
Governance Our Board of Directors has assigned oversight of cybersecurity risk management to the Audit Committee. The Audit Committee regularly receives reports from management, including information technology (“IT”) leadership, and third parties on cybersecurity matters.
Governance Our Board of Directors has assigned oversight of cybersecurity risk management to the Audit Committee. The Audit Committee regularly receives reports from management, including IT leadership, and third parties on cybersecurity matters.
The individual incident response team members are informed by their respective cybersecurity teams about, and monitor, the prevention, detection, mitigation and remediation of cybersecurity incidents as part of the cybersecurity programs described above.
The individual incident response team members are informed by their respective cybersecurity teams regarding the monitoring, prevention, detection, mitigation and remediation of cybersecurity incidents as part of the cybersecurity programs described above.
The head of IT has served in various roles in information technology and information security for over 28 years, including serving in technical management and leadership positions in multiple verticals for 19 years. The head of IT holds undergraduate and graduate degrees in computer science and has attained the several recognized network and security certifications throughout their career.
The Director of IT has served in various roles in information technology and information security for 30 years, including serving in technical management and leadership positions in multiple verticals. The Director of IT holds undergraduate and graduate degrees in computer science and has attained several recognized network and security certifications throughout their career.
Risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have not materially affected and are not reasonably likely to materially affect our company, including our business strategy, results of operations, or financial condition.
Risks from cybersecurity threats, including as a result of any previous cybersecurity incidents, have not materially affected and are not reasonably likely to materially affect us, including our business strategy, results of operations, or financial condition. 44 Table of Contents
Information regarding cybersecurity risks may be elevated by IT leadership through a variety of channels, including discussions between or among key leaders and our management and reports to the Company’s Board of Directors and/or certain Board committees. As noted above, the Audit Committee regularly receives reports on cybersecurity matters from senior IT leadership.
Information regarding cybersecurity risks may be elevated by IT leadership through a variety of channels, including discussions between or among key leaders and our management and reports to the Company’s Board of Directors and/or certain Board committees. When a cybersecurity incident is detected, we conduct an immediate assessment, determine materiality, and take appropriate actions as described above.
Item 1C. Cybersecurity Risk management and Strategy We have processes for assessing, identifying, and managing material risks from cybersecurity threats, which are integrated into the Company’s overall risk management systems, as overseen by the Company’s Board of Directors, primarily through its Audit Committee.
Our cybersecurity program is designed to identify, assess, and proactively manage material risk from cybersecurity threats, which are integrated into our overall risk management systems, as overseen by the Company’s Board of Directors, primarily through its Audit Committee.
This includes the coordination and creation of an Incident Response Policy, Incident Response Team, and Incident Response Plan in the event of a cybersecurity event. The AOB incident response policy covers our internal program and guidelines.
IT leadership is responsible for developing appropriate cybersecurity programs, including as may be required by applicable law or regulation. This includes the coordination and creation of an Incident Response Policy, Incident Response Team, and Incident Response Plan in the event of a cybersecurity event. The AOB Incident Response policy covers our internal program and guidelines.
In addition, our full Board of Directors receives reports addressing cybersecurity as part of our overall enterprise risk management program and to the extent cybersecurity matters are addressed in regular business updates. IT leadership is responsible for developing appropriate cybersecurity programs, including as may be required by applicable law or regulation.
In addition, our full Board of Directors receives reports addressing cybersecurity as part of our overall enterprise risk management program and to the extent cybersecurity matters are addressed in regular business updates. We periodically engage third-party audit and legal firms with industry-recognized expertise on cybersecurity matters to review specific aspects of our cybersecurity enterprise risk management framework and controls.
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These processes also include overseeing and identifying risks from cybersecurity threats associated with the use of third-party service providers. We have established monitoring procedures in our effort to mitigate risks related to data breaches or other security incidents originating from third parties.
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Item 1C. Cybersecurity Risk management and Strategy We have implemented a set of comprehensive cybersecurity and data protection policies and procedures placing special interest in addressing cybersecurity threats and effectively managing associated risks.
Removed
We engage third-party consultants and legal advisors in evaluating and testing our risk management systems and assessing and remediating certain potential cybersecurity incidents as appropriate. We have a Written Information Security Program (“WISP”) to protect personal and proprietary information in compliance with applicable federal and state requirements.
Added
Risks from cybersecurity threats are regularly evaluated as a part of our broader risk management activities and as a fundamental component of our internal control system. Our information technology, or IT, program is led by our Director of Information Technology, who strives to monitor and mitigate risks from cybersecurity threats and provides reporting to the Audit Committee.
Removed
WISP is designed to: 43 • Ensure the security and confidentiality of personal information; • Protect against any anticipated threats or hazards to the security or integrity of personal information; and • Protect against unauthorized access to or use of such personal information in a manner that creates a substantial risk of identity theft or fraud.
Added
Our approach to cybersecurity is not a one-time effort but an ongoing process.
Added
We engage in monitoring, risk assessments, and robust security measures designed to ensure the confidentiality, integrity, and availability of our information systems, including critical computer networks, hosted services, communication systems, hardware, and software and to protect critical data, including our employees’ and customers’ data, intellectual property, confidential and proprietary data, and strategic competitive information.
Added
We address cybersecurity challenges and enhance our overall risk management efforts by adopting and working to integrate recognized best practices, standards, and controls utilizing guidelines from the National Institute of Standards and Technology Cybersecurity Framework (NIST CSF) for our protection and prevention of cybersecurity, risk management, data backup, and disaster recovery.
Added
Our cybersecurity program includes some key aspects such as (i) a Cybersecurity Leader who oversees our day-to-day program, (ii) outsourced information technology firm and consultants with significant expertise in cybersecurity (iii) an incident response team comprised of a cross-section of management with oversight over our programs, (iv) incident detection and response policies, and (v) ongoing security awareness training programs for all employees.
Added
We maintain a practical approach to cybersecurity. Our cybersecurity risk management program (an integral part of our overall Enterprise Risk Management Program) is designed to incorporate guidance from NIST CSF and other industry best practices. Within our program, we conduct internal and external security-based activities, including reviews and assessments of our third-party service providers and vendors.
Added
Our employees receive a formal cybersecurity awareness training on an annual basis, including specific topics related to social engineering and email frauds.
Added
This process is also followed when we are notified that a supplier has a cybersecurity incident. As noted above, the Audit Committee regularly receives reports on cybersecurity matters from senior IT leadership.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeLocation Facility Columbia, Missouri Corporate Office and Warehouse Chicopee, Massachusetts Administrative Office Shenzhen, Peoples Republic of China Office Yangjiang, Peoples Republic of China Office 44 I tem 3. Legal Proceedings Information regarding our legal proceedings is discussed in Note 15 to our consolidated financial statements, which is incorporated herein by reference. I tem 4.
Biggest changeLocation Facility Columbia, Missouri Corporate Office and Warehouse Chicopee, Massachusetts Administrative Office Shenzhen, Peoples Republic of China Office Yangjiang, Peoples Republic of China Office Item 3. Legal Proceedings Information regarding our legal proceedings is discussed in Note 14 to our consolidated financial statements, which is incorporated herein by reference. Item 4.
Item 2. P roperties The following table sets forth information regarding our principal operating properties and other significant properties as of April 30, 2024. All the properties listed below are leased. In general, our operating properties are well maintained, suitably equipped, and in good operating condition.
Item 2. Properties The following table sets forth information regarding our principal operating properties and other significant properties as of April 30, 2025. All the properties listed below are leased. In general, our operating properties are well maintained, suitably equipped, and in good operating condition.
Mine Safety Disclosures Not applicable. 45 P ART II
Mine Safety Disclosures Not applicable. 45 Table of Contents PART II

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe following table sets forth certain information relating to the purchases of our common stock by us and any affiliated purchasers within the meaning of Rule 10b-18(a)(3) under the Exchange Act during the fiscal year ended April 30, 2024 (dollars in thousands, except per share data): Total # of Average Total # of Shares Purchased as Part of Publicly Announced Maximum Dollar Value of Shares that May Yet Be Purchased Shares Price Paid Plan or Under the Plan Period Purchased Per Share (2) Program (1) or Program Total first quarter fiscal year 2024 267,991 $ 8.43 267,991 $ 4,217 Total second quarter fiscal year 2024 157,536 9.46 425,527 9,537 Total third quarter fiscal year 2024 209,548 8.53 635,075 7,747 February 1, 2024 to February 29, 2024 40,751 8.66 675,826 7,396 March 1, 2024 to March 31, 2024 13,591 8.16 689,417 7,283 Total fourth quarter fiscal year 2024 54,342 8.50 689,417 7,283 Total year-to-date fiscal year 2024 689,417 $ 8.75 689,417 $ 7,283 (1) On September 30, 2022, our Board of Directors authorized the repurchase of up to $10.0 million of our common stock, subject to certain conditions, in the open market, in block purchases, or in privately negotiated transactions, executable through September 29, 2023.
Biggest changeThe following table sets forth certain information relating to the purchases of our common stock by us and any affiliated purchasers within the meaning of Rule 10b-18(a)(3) under the Exchange Act during the fiscal year ended April 30, 2025 (dollars in thousands, except per share data): Period Total # of Shares Purchased Average Price Paid Per Share (2) Total # of Shares Purchased as Part of Publicly Announced Plan or Program (1) Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plan or Program Total first quarter fiscal year 2025 42,017 $ 9.06 731,434 $ 6,902 Total second quarter fiscal year 2025 111,480 9.00 842,914 9,571 Total third quarter fiscal year 2025 117,090 10.03 960,004 8,398 February 1, 2025 to February 29, 2025 9,549 16.68 969,553 8,239 March 1, 2025 to March 31, 2025 21,369 13.11 990,922 7,959 April 1, 2025 to April 30, 2025 72,941 10.83 1,063,863 7,169 Total fourth quarter fiscal year 2025 103,859 11.84 1,063,863 7,169 Total year-to-date fiscal year 2025 374,446 $ 10.11 1,063,863 $ 7,169 (1) On September 30, 2022, our Board of Directors authorized the repurchase of up to $10.0 million of our common stock, subject to certain conditions, in the open market, in block purchases, or in privately negotiated transactions, executable through September 29, 2023.
Securities Authorized for Issuance under Equity Compensation Plans For equity compensation plan information, refer to Item 12 (Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters) in Part III of this Annual Report on Form 10-K. 46 Performance Graph The following graph compares the cumulative total stockholder returns for the period from August 25, 2020 (the effective date of the registration of AOUT Common Stock) to April 30, 2024 for (i) our common stock; (ii) the Russell 2000 Index; and (iii) the S&P 500 Index.
Securities Authorized for Issuance under Equity Compensation Plans For equity compensation plan information, refer to Item 12 (Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters) in Part III of this Annual Report on Form 10-K. 46 Table of Contents Performance Graph The following graph compares the cumulative total stockholder returns for the period from August 25, 2020 (the effective date of the registration of AOUT Common Stock) to April 30, 2025 for (i) our common stock; (ii) the Russell 2000 Index; and (iii) the S&P 500 Index.
Item 5. Market for Registrant’s Common Equity, Related Stoc kholder Matters and Issuer Purchases of Equity Securities Market Information Our common stock trades on the Nasdaq Global Select Market under the symbol “AOUT.” The holders of our common stock are entitled to one vote per share on any matter to be voted upon by the stockholders.
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information Our common stock trades on the Nasdaq Global Select Market under the symbol “AOUT.” The holders of our common stock are entitled to one vote per share on any matter to be voted upon by the stockholders.
The performance graph above will not be deemed incorporated by reference into any filing of our company under the Securities Act of 1933, as amended, or the Securities Act. Recent Sales of Unregistered Securities None. 47 Repurchases of Common Stock As of April 30, 2024, we had one open authorized share repurchase program.
The performance graph above will not be deemed incorporated by reference into any filing of our company under the Securities Act of 1933, as amended, or the Securities Act. Recent Sales of Unregistered Securities None. 47 Table of Contents Repurchases of Common Stock As of April 30, 2025, we had one open authorized share repurchase program.
Holders On June 24, 2024, there were 258 record holders of our common stock. A substantially greater number of holders of common stock are “street name” or beneficial holders, whose shares are held of record by banks, brokers, and other financial institutions. Dividend Policy We have never declared or paid cash dividends on our common stock.
Holders On June 24, 2025, there were 223 record holders of our common stock. A substantially greater number of holders of common stock are “street name” or beneficial holders, whose shares are held of record by banks, brokers, and other financial institutions. Dividend Policy We have never declared or paid cash dividends on our common stock.
The graph assumes an investment of $100 on August 25, 2020 (first day of trading activity) through the last trading day of fiscal 2024.
The graph assumes an investment of $100 on August 25, 2020 (first day of trading activity) through the last trading day of fiscal 2025.
During the fiscal years ended April 30, 2024 and 2023, under these authorizations, we repurchased 689,417 and 377,034 shares, respectively, of our common stock in the open market for $6.0 million and $3.5 million, respectively, utilizing cash on hand. (2) The average price per share excludes fees paid to acquire the shares. Item 6. RESERVED Not Applicable. 48
During the years ended April 30, 2025 and 2024, under these authorizations, we repurchased a total of 374,446 and 689,417 shares, respectively, of our common stock for $3.8 million and $6.0 million, respectively, utilizing cash on hand. As of April 30, 2025, we have $7.2 million of available funds to repurchase our common stock under the current authorization.
Added
On September 25, 2024, our Board of Directors approved a program to purchase up to $10.0 million of our common stock, subject to certain conditions, in the open market, in block purchases, or in privately negotiated transactions, commencing on October 1, 2024 and executable through September 30, 2025.
Added
(2) The average price per share excludes fees paid to acquire the shares. Item 6. RESERVED Not Applicable. 48 Table of Contents

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeFiscal 2024 Cost of Sales and Gross Profit Compared with Fiscal 2023 Gross margin for fiscal 2024 decreased 210 basis points from the prior fiscal year, primarily from higher tariff, freight, and duty expenses from increased inventory purchases earlier in fiscal 2024, increased promotional product discounts, and a tariff drawback adjustment due to an audit of a claim submitted in fiscal 2022. 50 Operating Expenses The following table sets forth certain information regarding operating expenses for the fiscal years ended April 30, 2024 and 2023 (dollars in thousands): 2024 2023 $ Change % Change Research and development $ 6,851 $ 6,361 $ 490 7.7 % Selling, marketing, and distribution 55,050 51,791 3,259 6.3 % General and administrative 39,022 42,612 (3,590 ) -8.4 % Total operating expenses $ 100,923 $ 100,764 $ 159 0.2 % % of net sales 50.2 % 52.7 % Fiscal 2024 Operating Expenses Compared with Fiscal 2023 Operating expenses in fiscal 2024 increased $159,000 compared with the prior fiscal year.
Biggest changeOperating Expenses The following table sets forth certain information regarding operating expenses for the fiscal years ended April 30, 2025 and 2024 (dollars in thousands): 2025 2024 $ Change % Change Research and development $ 7,710 $ 6,851 $ 859 12.5 % Selling, marketing, and distribution 55,563 55,050 513 0.9 % General and administrative 36,145 39,022 (2,877) -7.4 % Total operating expenses $ 99,418 $ 100,923 $ (1,505) -1.5 % % of net sales 44.7 % 50.2 % Fiscal 2025 Operating Expenses Compared with Fiscal 2024 Operating expenses in fiscal 2025 decreased $1.5 million from the prior fiscal year.
We determined in the prior fiscal period that it was more likely than not that the benefit from our net deferred tax assets will not be realized and accordingly we established a full valuation allowance recorded as an increase to income tax expense.
We determined in a prior fiscal period that it was more likely than not that the benefit from our net deferred tax assets will not be realized and accordingly we established a full valuation allowance recorded as an increase to income tax expense.
Inflation We have been impacted by changes in prices of finished product inventory from our suppliers and logistics as well as other inflationary factors, such as increased interest rates and increased labor and overhead costs. We evaluate the need for price changes to offset these inflationary factors while taking into account the competitive landscape.
Inflation We have been impacted by changes in prices of finished product inventory from our suppliers and logistics as well as other inflationary factors, such as increased interest rates, tariffs, and increased labor and overhead costs. We evaluate the need for price changes to offset these inflationary factors while taking into account the competitive landscape.
Our e-commerce channels also include our direct-to-consumer sales. Our traditional channels include customers that primarily operate out of physical 49 brick-and-mortar stores and generate the large majority of revenue from consumer purchases in their brick-and-mortar locations. We sell our products worldwide.
Our e-commerce channels also include our direct-to-consumer sales. Our traditional channels include customers that primarily operate out of physical brick-and-mortar stores and generate the large majority of revenue from consumer purchases in their brick-and-mortar locations. We sell our products worldwide.
Additionally, inflation may cause consumers to reduce discretionary spending, which could cause decreases in demand for our products. 54 Critical Accounting Estimates Revenue Recognition We recognize revenue for the sale of our products at the point in time when the control of ownership has transferred to the customer, which is generally upon shipment but could be delayed until the receipt of customer acceptance.
Additionally, inflation may cause consumers to reduce discretionary spending, which could cause decreases in demand for our products. 54 Table of Contents Critical Accounting Estimates Revenue Recognition We recognize revenue for the sale of our products at the point in time when the control of ownership has transferred to the customer, which is generally upon shipment but could be delayed until the receipt of customer acceptance.
We are required to make interest payments for the unused portion of our revolving line of credit in accordance with the financing arrangement. Future unused loan fee obligations are not included above, which could accumulate up to approximately $185,000 per year, under certain circumstances, until the maturity date in fiscal 2026.
We are required to make interest payments for the unused portion of our revolving line of credit in accordance with the financing arrangement. Future unused loan fee obligations are not included above, which could accumulate up to approximately $185,000 per year, under certain circumstances, until the maturity date in fiscal 2027.
We use Adjusted EBITDAS, which is a non-GAAP financial metric, as a supplemental measure of our performance in order to provide investors with an improved understanding of underlying performance trends, and it should be considered in addition to, but not instead of, the financial statements prepared in accordance with GAAP.
We use Adjusted EBITDA, which is a non-GAAP financial metric, as a supplemental measure of our performance in order to provide investors with an improved understanding of underlying performance trends, and it should be considered in addition to, but not instead of, the financial statements prepared in accordance with GAAP.
Adjusted EBITDAS is a non-GAAP measure and may not be comparable to similar measures reported by other companies. In addition, non-GAAP measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP.
Adjusted EBITDA is a non-GAAP measure and may not be comparable to similar measures reported by other companies. In addition, non-GAAP measures have limitations as analytical tools, and you should not consider them in isolation or as a substitute for analysis of our results as reported under GAAP.
We will continue to assess the adequacy of the valuation allowance on a quarterly basis. 55 Recent Accounting Pronouncements The nature and impact of recent accounting pronouncements is discussed in Note 2 — Summary of Significant Accounting Policies to our consolidated financial statements, which is incorporated herein by reference.
We will continue to assess the adequacy of the valuation allowance on a quarterly basis. 55 Table of Contents Recent Accounting Pronouncements The nature and impact of recent accounting pronouncements is discussed in Note 2 — Summary of Significant Accounting Policies to our consolidated financial statements, which is incorporated herein by reference.
We believe that Adjusted EBITDAS is useful to understanding our operating results and the ongoing performance of our underlying business, as Adjusted EBITDAS provides information on our ability to meet our capital expenditure and working capital requirements, and is also an indicator of profitability. We believe this reporting provides additional transparency and comparability to our operating results.
We believe that Adjusted EBITDA is useful to understanding our operating results and the ongoing performance of our underlying business, as Adjusted EBITDA provides information on our ability to meet our capital expenditure and working capital requirements, and is also an indicator of profitability. We believe this reporting provides additional transparency and comparability to our operating results.
We also use Adjusted EBITDAS to supplement GAAP measures of performance to evaluate our performance in connection with compensation decisions. We believe it is useful to investors and analysts to evaluate this non-GAAP measure on the same basis as we use to evaluate our operating results.
We also use Adjusted EBITDA to supplement GAAP measures of performance to evaluate our performance in connection with compensation decisions. We believe it is useful to investors and analysts to evaluate this non-GAAP measure on the same basis as we use to evaluate our operating results.
The Lease covers approximately 632,000 square feet of building and surrounding property located at 1800 North Route Z, Columbia, Boone County, Missouri. We lease the entire building and the Lease provides us with an option to expand the Building by up to 491,000 additional square feet.
The Lease covers approximately 632,000 square feet of building and surrounding property located at 1800 North Route Z, Columbia, Missouri. We lease the entire building and the Lease provides us with an option to expand the Building by up to 491,000 additional square feet.
Although we do not believe that inflation had a material impact on us during fiscal 2024, increased inflation in the future may have a negative effect on our ability to achieve certain expectations in gross margin and operating expenses.
Although we do not believe that inflation had a material impact on us during fiscal 2025, increased inflation in the future may have a negative effect on our ability to achieve certain expectations in gross margin and operating expenses.
We use Adjusted EBITDAS to supplement GAAP measures of performance to evaluate the effectiveness of our business strategies, to make budgeting decisions, and to neutralize our capitalization structure to compare our performance against that of other peer companies using similar measures, especially companies that are private.
We use Adjusted EBITDA to supplement GAAP measures of performance to evaluate the effectiveness of our business strategies, to make budgeting decisions, and to neutralize our capitalization structure to compare our performance against that of other peer companies using similar measures, especially companies that are private.
We expect our inventory balance to increase in our first quarter of fiscal 2025 because of increased inventory purchases to support the fall hunting and winter holiday shopping seasons as well as inventory for new products that we expect to launch later in the year.
We expect our inventory balance to increase in our first quarter of fiscal 2026 because of increased inventory purchases to support the fall hunting and winter holiday shopping seasons as well as inventory for new products that we expect to launch later in the year.
Interest on debt is based on outstanding debt as of April 30, 2024, and includes debt issuance costs to be amortized over the life of the financing arrangement. Operating lease obligations represent required minimum lease payments during the noncancelable lease term.
Interest on debt is based on outstanding debt as of April 30, 2025, and includes debt issuance costs to be amortized over the life of the financing arrangement. Operating lease obligations represent required minimum lease payments during the noncancelable lease term.
Adjusted EBITDAS is defined as GAAP net income/(loss) before interest, taxes, depreciation, amortization, and stock compensation expense. Our Adjusted EBITDAS calculation also excludes certain items we consider non-routine.
Adjusted EBITDA is defined as GAAP net income/(loss) before interest, taxes, depreciation, amortization, and stock compensation expense. Our Adjusted EBITDA calculation also excludes certain items we consider non-routine.
We believe that the presentation of Adjusted EBITDAS is useful to investors because it is frequently used by analysts, investors, and other interested parties to evaluate companies in our industry.
We believe that the presentation of Adjusted EBITDA is useful to investors because it is frequently used by analysts, investors, and other interested parties to evaluate companies in our industry.
We address the limitations of non-GAAP measures through the use of various GAAP measures. In the future, we may incur expenses or charges such as those added back to calculate Adjusted EBITDAS.
We address the limitations of non-GAAP measures through the use of various GAAP measures. In the future, we may incur expenses or charges such as those added back to calculate Adjusted EBITDA.
Set forth below is a comparison of the results of operations and changes in financial condition for the fiscal years ended April 30, 2024 and 2023.
Set forth below is a comparison of the results of operations and changes in financial condition for the fiscal years ended April 30, 2025 and 2024.
The comparison of, and changes between, the fiscal years ended April 30, 2023 and 2022 can be found within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Form 10-K for the fiscal year ended April 30, 2023 filed with the SEC on June 28, 2023. Background We operate as one reporting segment.
The comparison of, and changes between, the fiscal years ended April 30, 2024 and 2023 can be found within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in our Form 10-K for the fiscal year ended April 30, 2024 filed with the SEC on June 27, 2024. Background We operate as one reporting segment.
New products, defined as any new SKU introduced over the prior two fiscal years, represented 23.2% of net sales for fiscal 2024 compared to 25.5% of net sales for fiscal 2023. We have a history of introducing over 200 new SKUs each year.
New products, which we define as any SKU introduced over the prior two fiscal years, represented 21.5% of net sales for fiscal 2025 compared to 23.2% of net sales for fiscal 2024. We have a history of introducing over 200 new SKUs each year.
Operating Loss The following table sets forth certain information regarding operating loss for the fiscal years ended April 30, 2024 and 2023 (dollars in thousands): 2024 2023 $ Change % Change Operating loss $ (12,497 ) $ (12,700 ) $ 203 -1.6 % % of net sales (operating margin) -6.2 % -6.6 % Fiscal 2024 Operating Loss Compared with Fiscal 2023 We had a decrease of $203,000 in operating loss from the prior fiscal year primarily because of increased net sales and lower operating expenses partially offset from an increased in cost of goods sold.
Operating Loss The following table sets forth certain information regarding operating loss for the fiscal years ended April 30, 2025 and 2024 (dollars in thousands): 2025 2024 $ Change % Change Operating loss $ (154) $ (12,497) $ 12,343 98.8 % % of net sales (operating margin) — % -6.2 % Fiscal 2025 Operating Loss Compared with Fiscal 2024 We had a decrease of $12.2 million in operating loss from the prior fiscal year primarily because of increased net sales and lower operating expenses partially offset from an increase in cost of goods sold.
Research and development expenses increased $490,000, primarily from increased depreciation for new product tooling compared to the prior fiscal year. Selling, marketing, and distribution expenses increased $3.3 million from the prior fiscal year, primarily because of higher sales volume-related expenses, including higher freight costs, labor, and commissions.
Research and development expenses increased $859,000, primarily from increased depreciation for new product tooling compared to the prior fiscal year. Selling, marketing, and distribution expenses increased $513,000 over the prior fiscal year, primarily because of higher sales volume-related expenses, including higher freight costs and commissions, and higher rent expenses.
Net Loss The following table sets forth certain information regarding net loss and the related per share data for the fiscal years ended April 30, 2024 and 2023 (dollars in thousands, except per share data): 2024 2023 $ Change % Change Net loss $ (12,248 ) $ (12,024 ) $ (224 ) 1.9 % Net loss per share Basic $ (0.94 ) $ (0.90 ) $ (0.04 ) 4.4 % Diluted $ (0.94 ) $ (0.90 ) $ (0.04 ) 4.4 % Fiscal 2024 Net Loss Compared with Fiscal 2023 We had a net loss of $12.2 million, or ($0.94) per diluted share in fiscal 2024 compared to $12.0 million, or ($0.90) per diluted share in fiscal 2023.
Net Loss The following table sets forth certain information regarding net loss and the related per share data for the fiscal years ended April 30, 2025 and 2024 (dollars in thousands, except per share data): 2025 2024 $ Change % Change Net loss $ (77) $ (12,248) $ 12,171 -99.4 % Net loss per share Basic $ (0.01) $ (0.94) $ 0.93 -98.9 % Diluted $ (0.01) $ (0.94) $ 0.93 -98.9 % Fiscal 2025 Net Loss Compared with Fiscal 2024 We had a net loss of $77,000, or ($0.01) per diluted share in fiscal 2025 compared to $12.2 million, or ($0.94) per diluted share in fiscal 2024.
Cash generated in operating activities was $24.5 million for fiscal 2024 compared to cash generation of $30.7 million for the prior fiscal year.
Cash generated in operating activities was $1.4 million for fiscal 2025 compared to cash generation of $24.5 million for the prior fiscal year.
This obligation excludes the amount included in accounts payable at April 30, 2024 related to inventory purchases. Other obligations represent other binding commitments for the expenditure of funds, including (i) amounts related to contracts not involving the purchase of inventories, such as the noncancelable portion of service or maintenance agreements for management information systems, (ii) capital spending, and (iii) advertising.
This obligation excludes the amount included in accounts payable at April 30, 2025 related to inventory purchases. Other obligations, included in our purchase obligations represent other binding commitments for the expenditure of funds, including (i) amounts related to contracts not involving the purchase of inventories, such as operating expenses, (ii) capital spending, and (iii) advertising.
We had $29.7 million and $22.0 million of cash equivalents on hand as of April 30, 2024 and 2023, respectively.
We had $23.4 million and $29.7 million of cash equivalents on hand as of April 30, 2025 and 2024, respectively.
See non-GAAP financial measure disclosures below for our reconciliation of Non-GAAP Adjusted EBITDAS. • We repurchased a total of 689,417 shares of our common stock, in the open market, for $6.0 million during fiscal 2024.
See non-GAAP financial measure disclosures below for our reconciliation of Non-GAAP Adjusted EBITDA. • We repurchased a total of 374,446 shares of our common stock, in the open market, for $3.8 million during fiscal 2025.
Results of Operations Net Sales and Gross Profit The following table sets forth certain information regarding consolidated net sales for the fiscal years ended April 30, 2024 and 2023 (dollars in thousands): 2024 2023 $ Change % Change Net sales $ 201,099 $ 191,209 $ 9,890 5.2 % Cost of sales 112,673 103,145 9,528 9.2 % Gross profit $ 88,426 $ 88,064 $ 362 0.4 % % of net sales (gross margin) 44.0 % 46.1 % The following table sets forth certain information regarding trade channel net sales for the fiscal years ended April 30, 2024 and 2023 (dollars in thousands): 2024 2023 $ Change % Change e-commerce channels net sales $ 84,313 $ 87,219 $ (2,906 ) -3.3 % Traditional channels net sales 116,786 103,990 12,796 12.3 % Total net sales $ 201,099 $ 191,209 $ 9,890 5.2 % Our e-commerce channels include net sales from customers that do not traditionally operate physical brick-and-mortar stores, but generate the majority of their revenue from consumer purchases from their retail websites.
Results of Operations Net Sales and Gross Profit The following table sets forth certain information regarding consolidated net sales for the fiscal years ended April 30, 2025 and 2024 (dollars in thousands): 2025 2024 $ Change % Change Net sales $ 222,322 $ 201,099 $ 21,223 10.6 % Cost of sales 123,058 112,673 10,385 9.2 % Gross profit $ 99,264 $ 88,426 $ 10,838 12.3 % % of net sales (gross margin) 44.6 % 44.0 % 49 Table of Contents The following table sets forth certain information regarding trade channel net sales for the fiscal years ended April 30, 2025 and 2024 (dollars in thousands): 2025 2024 $ Change % Change e-commerce channels $ 84,391 $ 84,313 $ 78 0.1 % Traditional channels 137,931 116,786 21,145 18.1 % Total net sales $ 222,322 $ 201,099 $ 21,223 10.6 % Our e-commerce channels include net sales from customers that do not traditionally operate physical brick-and-mortar stores, but generate the majority of their revenue from consumer purchases from their retail websites.
Income Taxes The following table sets forth certain information regarding income tax expense for the fiscal years ended April 30, 2024 and 2023 (dollars in thousands): 2024 2023 $ Change % Change Income tax (benefit) $ (70 ) $ (249 ) $ 179 -71.9 % % of income from operations (effective tax rate) 0.6 % 2.0 % -1.4 % 51 Fiscal 2024 Income Tax Benefit Compared with Fiscal 2023 We recorded an income tax benefit of $70,000 for fiscal 2024 as compared to income tax benefit of $249,000 for fiscal 2023.
We had no borrowings on our revolving line as of April 30, 2025. 51 Table of Contents Income Taxes The following table sets forth certain information regarding income tax expense for the fiscal years ended April 30, 2025 and 2024 (dollars in thousands): 2025 2024 $ Change % Change Income tax (benefit) $ 123 $ (70) $ 193 275.7 % % of income from operations (effective tax rate) 267.4 % 0.6 % 266.8 % Fiscal 2025 Income Tax Benefit Compared with Fiscal 2024 We recorded an income tax expense of $123,000 for fiscal 2025 as compared to income tax benefit of $70,000 for fiscal 2024.
The following table sets forth certain cash flow information for the fiscal years ended April 30, 2024 and 2023 (dollars in thousands): 2024 2023 $ Change % Change Operating activities $ 24,491 $ 30,706 $ (6,215 ) -20.2 % Investing activities (5,976 ) (4,826 ) (1,150 ) 23.8 % Financing activities (10,767 ) (23,451 ) 12,684 -54.1 % Total cash flow $ 7,748 $ 2,429 $ 5,319 219.0 % 53 Operating Activities Operating activities represent the principal source of our cash flow.
The following table sets forth certain cash flow information for the fiscal years ended April 30, 2025 and 2024 (dollars in thousands): 2025 2024 $ Change % Change Operating activities $ 1,359 $ 24,491 $ (23,132) -94.5 % Investing activities (3,896) (5,976) 2,080 -34.8 % Financing activities (3,738) (10,767) 7,029 -65.3 % Total cash flow $ (6,275) $ 7,748 $ (14,023) -181.0 % 53 Table of Contents Operating Activities Operating activities represent the principal source of our cash flow.
Interest Income/(Expense), Net The following table sets forth certain information regarding interest income/(expense), net for the fiscal years ended April 30, 2024 and 2023 (dollars in thousands): 2024 2023 $ Change % Change Interest income/(expense), net $ 39 $ (761 ) $ 800 -105.1 % Fiscal 2024 Interest Income/(Expense) Compared with Fiscal 2023 Interest income was $39,000 compared to interest expense of $761,000 in the prior fiscal year because of lower interest on a reduced level of borrowings on our revolving line of credit during fiscal 2024.
Interest Income/(Expense), Net The following table sets forth certain information regarding interest income/(expense), net for the fiscal years ended April 30, 2025 and 2024 (dollars in thousands): 2025 2024 $ Change % Change Interest income/(expense), net $ 60 $ 39 $ 21 53.8 % Fiscal 2025 Interest Income/(Expense) Compared with Fiscal 2024 Interest income was $60,000 compared to interest income of $39,000 in the prior fiscal year.
Fiscal 2024 Highlights Our operating results for fiscal 2024 included the following: • Net sales were $201.1 million, an increase of $9.9 million, or 5.2%, over the prior fiscal year, reflecting an increase in net sales for our traditional channel partially offset by a decrease in net sales for our e-commerce channels. • Gross margin was 44.0%, a decrease of 210 basis points from the prior fiscal year. • Net loss was $12.2 million, or ($0.94) per diluted share, compared with a net loss of $12.0 million, or ($0.90) per diluted share, for the prior fiscal year. • Non-GAAP Adjusted EBITDAS was $9.8 million, compared with $12.8 million for the prior fiscal year.
Fiscal 2025 Highlights Our operating results for fiscal 2025 included the following: • Net sales were $222.3 million, an increase of $21.2 million, or 10.6%, over the prior fiscal year, primarily because of an increase in net sales in our traditional channel. • Gross margin was 44.6%, an increase of 60 basis points over the prior fiscal year. • Net loss was $77,000, or ($0.01) per diluted share, compared with a net loss of $12.2 million, or ($0.94) per diluted share, for the prior fiscal year. • Non-GAAP Adjusted EBITDA was $17.7 million, compared with $9.8 million for the prior fiscal year.
The increase in cash used in investing activities is because of the lease assignment mentioned below as we now lease the entire facility at our Columbia, Missouri location and required additional racking and equipment in our warehouse.
The decrease in cash used in investing activities is because of the lease assignment in the prior fiscal year, as mentioned below, that required additional racking and equipment in our warehouse in fiscal 2024.
Contractual Obligations and Commercial Commitments The following table sets forth a summary of our material contractual obligations and commercial commitments as of April 30, 2024 (in thousands): Less Than More Than Total 1 Year 1-3 Years 3-5 Years 5 Years Interest on debt $ 280 $ 96 $ 184 $ — $ — Operating lease obligations 52,611 3,372 6,568 6,754 35,917 Purchase obligations 32,738 32,738 — — — Total obligations $ 85,629 $ 36,206 $ 6,752 $ 6,754 $ 35,917 As of April 30, 2024, we had no borrowings outstanding on our revolving line of credit.
Contractual Obligations and Commercial Commitments The following table sets forth a summary of our material contractual obligations and commercial commitments as of April 30, 2025 (in thousands): Total Less Than 1 Year 1-3 Years 3-5 Years More Than 5 Years Interest on debt $ 184 $ 96 $ 88 $ — $ — Operating lease obligations 49,771 3,379 10,359 7,106 28,927 Purchase obligations 30,131 30,131 — — — Total obligations $ 80,086 $ 33,606 $ 10,447 $ 7,106 $ 28,927 As of April 30, 2025, we had no borrowings outstanding on our revolving line of credit.
Cash used in financing activities in fiscal 2023 was because of $20.2 million of payments on our revolving line of credit and $3.5 million of payments to repurchase our common stock under our authorized stock repurchase program.
Financing Activities Cash used in financing activities was $3.7 million in fiscal 2025 compared with cash used in financing activities of $10.8 million in the prior fiscal year. Cash used in financing activities in fiscal 2025 was because of $3.8 million of payments to repurchase our common stock under our authorized stock repurchase program.
Our presentation of Adjusted EBITDAS should not be construed as an inference that our future results will be unaffected by these items. 52 The following table sets forth our calculation of non-GAAP Adjusted EBITDAS for the fiscal years ended April 30, 2024 and 2023 (dollars in thousands): For the Years Ended April 30, 2024 2023 (Unaudited) GAAP net loss $ (12,248 ) $ (12,024 ) Interest (income)/expense (39 ) 761 Income tax (benefit)/expense (70 ) (249 ) Depreciation and amortization 16,005 16,048 Stock compensation 4,075 4,050 Technology implementation 465 2,138 Tariff drawback adjustment (a) 1,113 — Acquisition costs — 47 Facility consolidation costs — 866 Stockholder cooperation agreement costs — 1,177 Other 468 — Non-GAAP Adjusted EBITDAS $ 9,769 $ 12,814 (a) During our fourth quarter of fiscal 2024, an incorrect submission was identified as a result of an audit of a tariff drawback claim that was submitted to US Customs Border Protection in fiscal 2022.
Our presentation of Adjusted EBITDA should not be construed as an inference that our future results will be unaffected by these items. 52 Table of Contents The following table sets forth our calculation of non-GAAP Adjusted EBITDA for the fiscal years ended April 30, 2025 and 2024 (dollars in thousands): For the Years Ended April 30, 2025 2024 (Unaudited) GAAP net loss $ (77) $ (12,248) Interest (income) (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 adjustment 444 — Emerging growth status transition costs 458 — Other 100 468 Non-GAAP Adjusted EBITDA $ 17,667 $ 9,769 Liquidity and Capital Resources Historically, we have generated strong annual cash flow from operating activities.
The following table sets forth certain information regarding geographic makeup of net sales included in the above table for the fiscal years ended April 30, 2024 and 2023 (dollars in thousands): 2024 2023 $ Change % Change Domestic net sales $ 189,027 $ 182,299 $ 6,728 3.7 % International net sales 12,072 8,910 3,162 35.5 % Total net sales $ 201,099 $ 191,209 $ 9,890 5.2 % The following table sets forth certain information regarding net sales categories for the fiscal years ended April 30, 2024 and 2023 (dollars in thousands): 2024 2023 $ Change % Change Shooting sports net sales $ 91,716 $ 88,885 $ 2,831 3.2 % Outdoor lifestyle net sales 109,383 102,324 7,059 6.9 % Total net sales $ 201,099 $ 191,209 $ 9,890 5.2 % Fiscal 2024 Net Sales Compared with Fiscal 2023 Total net sales increased $9.9 million, or 5.2%, from the prior fiscal year.
The following table sets forth certain information regarding geographic makeup of net sales included in the above table for the fiscal years ended April 30, 2025 and 2024 (dollars in thousands): 2025 2024 $ Change % Change Domestic $ 207,834 $ 189,027 $ 18,807 9.9 % International 14,488 12,072 2,416 20.0 % Total net sales $ 222,322 $ 201,099 $ 21,223 10.6 % The following table sets forth certain information regarding net sales categories for the fiscal years ended April 30, 2025 and 2024 (dollars in thousands): 2025 2024 $ Change % Change Shooting sports $ 95,200 $ 91,716 $ 3,484 3.8 % Outdoor lifestyle 127,122 109,383 17,739 16.2 % Total net sales $ 222,322 $ 201,099 $ 21,223 10.6 % Fiscal 2025 Net Sales Compared with Fiscal 2024 Total net sales increased $21.2 million, or 10.6%, over the prior fiscal year primarily because of an increase in hunting, shooting accessories, meat processing, and fishing product net sales in our domestic channel as well as an increase in shooting accessories product net sales to international retailers.
Our international net sales increased $3.2 million, or 35.5%, over the prior fiscal year as a result of increased sales in Canada because of increased orders in the region as we focus on introducing more outdoor lifestyle products in Canada.
In addition, our international net sales increased $2.4 million, or 20.0%, over the prior fiscal year as a result of increased sales in Canada and European countries.
The effective tax rates were 0.6% and 2.0% for fiscal 2024 and 2023, respectively.
Fiscal 2024 income tax benefit was primarily because of the impact of refundable state tax credits. The effective tax rates were 267.4% and 0.6% for fiscal 2025 and 2024, respectively.
Net sales in our traditional channels increased $12.8 million, or 12.3%, over the prior fiscal year. Traditional channel net sales for our shooting sports category increased primarily because of higher net sales of certain shooting accessories and selling slow moving personal protection products at a discount.
E-commerce channel net sales increased primarily because of higher hunting and fishing product net sales in our outdoor lifestyle category, partially offset by lower net sales in our shooting sports category. Net sales in our traditional channels increased $21.1 million, or 18.1%, over the prior fiscal year.
Cash generated in operating activities for fiscal 2024 was primarily impacted by $6.4 million of reduced inventory because of sales of slower moving inventory items during the year and increased orders, $2.9 million higher accounts payable due to timing of vendor payments and inventory purchases, a $2.4 million increase in accrued payroll and incentives from higher management incentive accruals, and a decrease in accounts receivable of $1.2 million as a result of timing of customer shipments and a mix between traditional term customers and direct to consumer sales during our fourth fiscal quarter.
Cash generated in operating activities for fiscal 2025 was primarily impacted from a $12.2 million lower net loss than the prior fiscal year, $4.2 million higher accrued expenses from increased tariff costs, lower prepaid and other current assets of $2.4 million as a result of lower deposits on inventory, and $1.7 million of increased accrued payroll and incentives because of higher compensation-related accruals, partially offset by an increase in accounts receivable of $13.6 million as a result of timing of customer shipments as we believe certain customers accelerated orders into our fourth fiscal quarter, which we believe was due to increased costs associated with tariffs imposed by the U.S. administration.
General and administrative expenses decreased $3.6 million from the prior fiscal year primarily because of $1.2 million lower legal and advisory fees associated with a cooperation agreement with a stockholder that occurred in fiscal 2023, $1.7 million of reduced enterprise resource planning system-implementation-related expenses, and lower rent expense as result of the facility consolidations we completed in the prior fiscal year, partially offset by higher compensation-related expenses.
General and administrative expenses decreased $2.9 million from the prior fiscal year primarily because of $3.4 million of lower acquired intangible amortization and $613,000 of lower legal and advisory fees, partially offset by higher compensation-related expenses.
Investing Activities Cash used in investing activities was $6.0 million for fiscal 2024 compared with cash usage of $4.8 million for the prior fiscal year.
In addition, we believe our inventory balances will increase as a result of the impact of additional tariffs imposed by the U.S. administration. Investing Activities Cash used in investing activities was $3.9 million for fiscal 2025 compared with cash usage of $6.0 million for the prior fiscal year.
Traditional channel net sales for our outdoor lifestyle category increased primarily as a result of higher net sales for hunting and fishing products. In addition, our traditional channel net sales increased because we began selling one of our outdoor lifestyle direct-to-consumer only brands at retail.
During our fourth fiscal quarter, we experienced increased orders resulting in higher shipments of our products to our traditional channel customers. Traditional channel net sales increased primarily because of higher net sales of shooting accessories in our shooting sports category and higher net sales of our hunting, fishing, and meat processing products in our outdoor lifestyle category.
Our order backlog as of April 30, 2024 was $4.0 million, or $3.0 million lower than at the end of fiscal 2023. Although we generally fulfill the majority of our order backlog, we allow orders received that have not yet shipped to be cancelled, and therefore, our backlog may not be indicative of future sales.
Our order backlog as of April 30, 2025 was $2.6 million, or $1.4 million lower than at the end of fiscal 2024.
Removed
Net sales in our e-commerce channel decreased $2.9 million, or 3.3%, from the prior fiscal year, primarily because of lower net sales to the world's largest e-commerce retailer as a result of reduced orders. E-commerce channel net sales for our shooting sports category decreased because of lower net sales for certain personal protection products.
Added
We believe a portion of the traditional channel increase was a result of certain customers accelerating orders that we had originally planned to receive in our first fiscal quarter of 2026, which we believe was due to the anticipated increased costs associated with tariffs imposed by the U.S. administration in March and April of 2025.
Removed
E-commerce channel net sales for our outdoor lifestyle category was relatively flat as compared to the prior fiscal year primarily from higher net sales for certain hunting and rugged outdoor products as a result of additional promotional activity, partially offset by lower net sales for our outdoor cooking products as a result of closing our retail location in Michigan in the first quarter of fiscal 2024 to consolidate operations into our Columbia, Missouri facility.
Added
Although we generally fulfill the majority of our order backlog, we allow orders received that have not yet shipped to be cancelled, and therefore, our backlog may not be indicative of future sales. 50 Table of Contents Fiscal 2025 Cost of Sales and Gross Profit Compared with Fiscal 2024 Gross margin for fiscal 2025 increased 60 basis points over the prior fiscal year, primarily from higher net sales volumes, partially offset by product and customer mix and higher tariff, freight, and duty expenses from increased inventory purchases earlier in fiscal 2025.
Removed
Total direct-to-consumer net sales for the year ended April 30, 2024 were $29.1 million, or 34.6%, of total e-commerce net sales compared to $29.3 million, or 33.5%, of total e-commerce net sales for the year ended April 30, 2023.
Added
In addition, we increased our inventory by $11.4 million to plan for new product introductions that will be released in our next fiscal year and increased inbound freight associated with heightened tariff costs.
Removed
We had no borrowings on our revolving line as of April 30, 2024.
Removed
Fiscal 2024 income tax benefit was primarily because of the impact of refundable state tax credits. Fiscal 2023 income tax benefit was primarily because of recording return to provision adjustments relating to the Federal and State tax returns filed for the prior fiscal year and the impact of refundable state tax credits.
Removed
We recorded an immaterial adjustment of $1.1 million resulting from this audit in fiscal 2024, when identified. We included this adjustment as a non-GAAP Adjusted EBITDAS adjustment because of the nonrecurring nature as well as the importance to promote comparability in our operating results. Liquidity and Capital Resources Historically, we have generated strong annual cash flow from operating activities.
Removed
Financing Activities Cash used in financing activities was $10.8 million in fiscal 2024 compared with cash usage by financing activities of $23.5 million in the prior fiscal year.

Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

3 edited+0 added−24 removed1 unchanged
Biggest changeAs of April 30, 2024, we had no borrowings outstanding under the revolving line of credit. I tem 8. Financial Statements and Supplementary Data Reference is made to the financial statements, the notes thereto, and the report thereon, commencing on page F-1 of this report, which financial statements, notes, and report are incorporated herein by reference. I tem 9.
Biggest changeAs of April 30, 2025, we had no borrowings outstanding under the revolving line of credit. Item 8. Financial Statements and Supplementary Data Reference is made to the financial statements, the notes thereto, and the report thereon, commencing on page F-1 of this report, which financial statements, notes, and report are incorporated herein by reference. Item 9.
Item 7A. Quantitative and Qualitat ive Disclosures about Market Risk We do not enter into any market risk sensitive instruments for trading purposes. We are exposed to risks in the ordinary course of business. We regularly assess and manage exposures to these risks through operating and financing activities.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk We do not enter into any market risk sensitive instruments for trading purposes. We are exposed to risks in the ordinary course of business. We regularly assess and manage exposures to these risks through operating and financing activities.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None. I tem 9A.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None. 56 Table of Contents
Removed
Controls and Procedures Evaluation of Disclosure Controls and Procedures We maintain disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the reports we file or submit under the Exchange Act, is recorded, processed, summarized, and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and 56 communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.
Removed
Our management, under the supervision of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of the end of the period covered by this Annual Report on Form-10-K.
Removed
Based on that evaluation, we have concluded that, as of the end of the period covered by this Annual Report on Form-10-K, our disclosure controls and procedures were effective to provide such reasonable assurance.
Removed
Management’s Annual Report on Internal Control over Financial Reporting Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act.
Removed
Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company; provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the company’s assets that could have a material effect on the financial statements.
Removed
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in condition, or that the degree of compliance with the policies may deteriorate.
Removed
Management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the 2013 framework established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Tradeway Commission (the COSO Framework). Based on that evaluation, management believes that our internal control over financial reporting was effective as of April 30, 2024.
Removed
This annual report does not include an attestation report of our registered public accounting firm on our internal control over financial reporting due to an exemption established by the JOBS Act for “emerging growth companies.” Inherent Limitations on the Effectiveness of Controls and Procedures In designing and evaluating our disclosure controls and procedures, we recognize that any controls and procedures, no matter how well designed and operated, can provide only reasonable, not absolute, assurance of achieving the desired control objectives.
Removed
In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints, and we are required to apply judgment in evaluating the benefits of possible controls and procedures relative to their costs.
Removed
The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.
Removed
Changes to Internal Control over Financial Reporting There have been no changes in our internal control over financial reporting during our most recent fiscal quarter ended April 30, 2024 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. I tem 9B.
Removed
Other Information During the quarter ended April 30, 2024, no ne of our directors or officers adopted or terminated a "Rule 10b5-1 trading arrangement" or a "non-Rule 10b5-1 trading arrangement" (in each case, as defined in item 408 of Regulation S-K). Ite m 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections Not applicable. 57 P ART III I tem 10.
Removed
Directors, Executive Officers and Corporate Governance The information required by this Item relating to our directors and corporate governance is incorporated herein by reference to the definitive Proxy Statement to be filed pursuant to Regulation 14A of the Exchange Act for our 2024 Annual Meeting of Stockholders.
Removed
The information required by this Item relating to our executive officers is included in Item 1, “Business — Executive Officers” of this report. I tem 11.
Removed
Executive Compensation The information required by this Item is incorporated herein by reference to the definitive Proxy Statement to be filed pursuant to Regulation 14A of the Exchange Act for our 2024 Annual Meeting of Stockholders. I tem 12.
Removed
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters The information required by this Item is incorporated herein by reference to the definitive Proxy Statement to be filed pursuant to Regulation 14A of the Exchange Act for our 2024 Annual Meeting of Stockholders. I tem 13.
Removed
Certain Relationships and Related Transactions, and Director Independence The information required by this Item is incorporated herein by reference to the definitive Proxy Statement to be filed pursuant to Regulation 14A of the Exchange Act for our 2024 Annual Meeting of Stockholders. I tem 14.
Removed
Principal Accountant Fees and Services The information required by this Item is incorporated herein by reference to the definitive Proxy Statement to be filed pursuant to Regulation 14A of the Exchange Act for our 2024 Annual Meeting of Stockholders. 58 P ART IV I tem 15.
Removed
Exhibits and Financial Statement Schedules (a) Financial Statements and Financial Statement Schedules (1) Consolidated Financial Statements are listed in the Index to Consolidated Financial Statements on page F-1 of this report.
Removed
(2) All schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission have been omitted because of the absence of the conditions under which they are required or because the information required is shown in the financial statements or notes above.
Removed
The following Exhibits are hereby filed as part of this Annual Report on Form 10-K: Incorporated by Reference Exhibit Number Exhibit Form Exhibit Filing Date 3.1 Amended and Restated Certificate of Incorporation 8-K 3.1 8/26/2020 3.2 Third Amended and Restated Bylaws 8-K 3.2(a) 4/12/2024 4.2 # Description of Securities 10.1 * Amended and Restated Trademark License Agreement, dated as of April 11, 2024, by and between Smith & Wesson Inc. and AOB Products Company, a wholly owned subsidiary of the Registrant. 8-K 10.1 4/16/2024 10.2 * Trademark License Agreement, dated as of August 24, 2020, by and between Smith & Wesson Inc. and AOB Products Company, a wholly owned subsidiary of the Registrant. 8-K 10.2 4/16/2024 10.3 * Sublease, dated as of August 24, 2020, by and between Smith & Wesson Sales Company and the Registrant 8-K 10.5 8/26/2020 10.4 * Assignment and Assumption of Lease Agreement, dated as of January 31, 2023, by and between Smith & Wesson Sales Company (f/k/a Smith & Wesson Corp.) and the Registrant, and consented to by Smith & Wesson Brands, Inc. 8-K 10.1 2/1/2023 10.5 * Lease Agreement, dated as of October 26, 2017, by and between Ryan Boone County, LLC and Smith & Wesson Corp. 8-K 10.1 1/4/2024 10.6 * First Amendment to Lease Agreement, dated October 25, 2018, by and among Ryan Boone County, LLC, Smith & Wesson Corp., and American Outdoor Brands Corporation 8-K 10.2 1/4/2024 10.7 * Second Amendment to Lease Agreement, dated as of January 31, 2019, by and among Ryan Boone County, LLC, American Outdoor Brands Sales Company (f/k/a Smith & Wesson Corp.), and American Outdoor Brands Corporation 8-K 10.3 1/4/2024 10.8 + 2020 Incentive Compensation Plan 8-K 10.8 8/26/2020 10.9 + Form of Non-Qualified Stock Option Award Grant Notice and Agreement to the 2020 Incentive Compensation Plan 8-K 10.9 8/26/2020 10.10 + Form of Restricted Stock Unit Award Grant Notice and Agreement to the 2020 Incentive Compensation Plan 8-K 10.10 8/26/2020 10.11 + Form of Performance Stock Unit Award Grant Notice and Agreement to the 2020 Incentive Compensation Plan 8-K 10.11 8/26/2020 10.12 + 2020 Employee Stock Purchase Plan 8-K 10.12 8/26/2020 10.13 + Employment Agreement by and between the Registrant and Brian D.
Removed
Murphy 8-K 10.13 8/26/2020 10.14 + Executive Severance Pay Plan 8-K 10.14 8/26/2020 10.15 Form of Indemnification Agreement entered into between the Registrant and the following directors and executive officers: As of August 24,2020 with Brian D. Murphy, H. Andrew Fulmer, Mary E. Gallagher, Gregory J. Gluchowski, Jr., Barry M. Monheit, and I.
Removed
Marie Wadecki 8-K 10.15 8/26/2020 59 10.16 Loan and Security Agreement, dated as of August 24, 2020, by and among AOB Products Company, Crimson Trace Corporation, American Outdoor Brands, Inc., Battenfeld Acquisition Company Inc., BTI Tools, LLC, Ultimate Survival Technologies, LLC, AOBC Asia Consulting, LLC, TD Bank, N.A., and the other banks, financial institutions, and other entities from time to time parties thereto 8-K 10.16 8/26/2020 10.17 Amendment No. 1 to Loan and Security Agreement, dated as of March 25, 2022, by and among AOB Products Company, Crimson Trace Corporation, American Outdoor Brands, Inc., Battenfeld Acquisition Company Inc., BTI Tools, LLC, Ultimate Survival Technologies, LLC, AOBC Asia Consulting, LLC, TD Bank, N.A., and the other banks, financial institutions, and other entities from time to time parties thereto 8-K 10.1 3/28/2022 19.1 # Inside Information and Insider Trading Policy of American Outdoor Brands, Inc. 21.1 # Subsidiaries of the Registrant 23.1 # Consent of Grant Thornton LLP, an Independent Registered Public Accounting Firm 31.1 # Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer 31.2 # Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer 32.1 ## Section 1350 Certification of Principal Executive Officer 32.2 ## Section 1350 Certification of Principal Financial Officer 97.1 # Clawback Policy of American Outdoor Brands, Inc. 101.INS Inline XBRL Instance Document – the instance document does not appear in the Interactive Data File because XBRL tags are embedded within the Inline XBRL document. 101.SCH Inline XBRL Taxonomy Extension Schema With Embedded Linkbase Documents 104 Cover Page Interactive Data File (embedded within the Inline XBRL document) * Certain schedules and exhibits have been omitted pursuant to Item 601(b)(2) of Regulation S-K.
Removed
The registrant agrees to furnish supplementally a copy of any omitted schedule or exhibit to the SEC upon request; provided, however, that the registrant may request confidential treatment pursuant to Rule 24b-2 of the Exchange Act for any document so furnished. + Management contract or compensatory arrangement. # Filed herewith ## Furnished herewith

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