POWW Eyes Third Week Of Gains: Cost Cuts Fuel Outdoor Holding’s Profit Push

Stronger fiscal fourth-quarter results, lower expenses, improved cash flow and reduced losses helped bullish sentiment.

• Outdoor Holding’s operating expenses fell by $23 million year-on-year in Q4.
• The company also the company narrowed its loss from continuing operations to $2.7 million despite a $4.4 million settlement charge. 
• Roth Capital raised Outdoor Holding’s price target to $2.75 from $2.30.

Outdoor Holding (POWW) stock is heading for its third consecutive week of gains as the company capped its fiscal 2026 with stronger operating performance, improved cash generation and a smaller loss.

Expense Reductions Drive Results For POWW

During the fiscal fourth-quarter (Q4) earnings call, Outdoor Holding CEO Steve Urvan pointed to better profitability, stronger operational execution and advances beyond targets established last summer.

“In the fourth quarter, we made further progress reducing operating expenses. Total operating expenses declined significantly year-over-year to the tune of $23 million,” said Urvan.

Urvan said the company continued streamlining operations at GunBroker.com by eliminating overlapping functions and adjusting staffing levels to better reflect the business’s current needs.

“Even after absorbing the one-time $4.4 million settlement expense in the DCP matter, we dramatically reduced our net loss from continuing operations in the quarter to $2.7 million compared to a loss of $27 million in the same period last year, added Urvan. 

Urvan said the company continued to generate strong cash flow even while spending money on restructuring efforts, share buybacks and legal-related costs. Outdoor Holding ended fiscal 2026 with $68.1 million in cash and equivalents, compared with $30.2 million a year earlier.

Fourth-quarter revenue climbed 10% year-on-year to $13.9 million, beating the analysts’ consensus estimate of $12.70, according to Fiscal AI data. Operating costs fell dramatically to $15.1 million from $38 million, helping narrow the loss from continuing operations to $2.7 million. 

Outdoor Holding stock traded over 6% lower overnight, heading into Tuesday. Shares are already up 3.3% this week.

Roth Capital Raises POWW Price Target 

Following the earnings, Roth Capital lifted Outdoor Holding’s price target to $2.75 from $2.30 while maintaining a Buy recommendation. Analysts pointed to improving operating performance, accelerating business momentum, and ongoing shareholder-return initiatives as reasons for the revision.

Analysts cited management commentary indicating that marketplace activity remained healthy during April and May. Those observations suggested that customer engagement and transaction volumes have continued to hold up following the company's latest quarterly performance.

POWW Retail Traders View 

On Stocktwits, retail sentiment around the stock remained in ‘extremely bullish’ territory with a 2,000% surge in message volume in 24 hours. 

A user expressed optimism, saying, “Margins increased to 87.2% and they repurchased 513,925 shares at an average purchase price of $1.95 per share.” 

Another user said, “Numbers look good to be.”

POWW stock has gained over 29% year-to-date. 

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