GrabAGun Digital Holdings Reports Fourth Quarter and Full Year 2025 Financial Results

Fourth Quarter Revenues Increased 14.1% to $29.6 million

Full Year Revenues Increased 3.6% to $96.4 million

Company Invests in Logistics Infrastructure to Drive Next Phase of Growth

GrabAGun Digital Holdings Inc. ("GrabAGun" or the "Company") (NYSE:PEW), an online retailer of firearms, ammunition and related accessories, today reported fourth quarter and full year 2025 financial results for the three and twelve months ended December 31, 2025.

Marc Nemati, Chief Executive Officer of GrabAGun, commented, "Fourth quarter results were outstanding, underscoring the power of our unique model and digitally native strategy to serve the growing community of Americans wishing to exercise their Second Amendment rights. Our strong performance was driven by increasing customer engagement and platform utilization and we continue to significantly outperform the broader industry. For the quarter, we delivered firearms sales volume growth of 11.5% versus the 3.7% decline in Adjusted NICS background checks¹, demonstrating the competitive advantages of our frictionless e-commerce platform that provides unmatched convenience and selection. We remain encouraged by the evolving demographics of firearms buyers and the sustained strength in our digital channels, which aligns with our long-term marketing and growth strategies."

Nemati continued, "Additionally, the launch of PEW Logistics represents a significant strategic milestone, providing firearm and outdoor brands with a fully outsourced, end-to-end solution that enables them to drive direct-to-consumer growth and margin expansion while maintaining complete control of the customer journey. As part of this initiative, we have recently invested approximately $8 million in capital expenditures to expand our logistics and fulfillment infrastructure to support the growth of the PEW Logistics platform. Our focus remains on building scale, driving operational efficiency and creating lasting value for our shareholders while continuing to invest in technology enhancements, supplier relationships, and customer experience improvements. Even after these investments, we ended the year with over $110 million in cash and cash equivalents, we remain well positioned as we enter 2026, and we are encouraged by the operating trends we are seeing so far in the first quarter."

Fourth Quarter Financial Highlights

• Net revenue was $29.6 million, up 14.1% year-over-year, compared to $26.0 million in the prior-year quarter.
  • Firearms sales increased 19.1% to $25.7 million, reflecting volume growth of 11.5%.
  • Non-firearms sales declined 10.3% to $3.9 million, reflecting 34.7% lower unit volume.
• Gross profit margin of 15.9% compared with 13.0% gross profit margin in the prior year quarter.
• Loss from operations was $0.4 million compared to income from operations of $1.9 million in the prior year quarter, driven by stock-based compensation expense and public company expenses.
• Net income was $0.4 million compared to net income of $2.0 million in the prior-year quarter.
• Adjusted EBITDA² was $0.2 million for the quarter compared to $2.1 million in Q4 2024.

Full Year Financial Highlights

• Net revenue was $96.4 million, up 3.6% year-over-year, compared to $93.1 million in FY 2024.
  • Firearms sales increased 9.7% to $81.2 million reflecting volume growth of 3.4%.
  • Non-firearms sales declined 20.1% to $15.2 million, reflecting 38.8% lower unit volume.
• Gross profit margin of 11.7% compared with 10.4% gross profit margin in the prior year.
• Loss from operations was $4.4 million compared to income from operations of $4.1 million in the prior year, driven by stock-based compensation expense and higher public company expenses following the Business Combination, including certain transaction-related expenses.
• Net loss was $2.5 million compared to net income of $4.5 million in the prior year.
• Adjusted EBITDA² was $0.8 million in 2025 compared to $4.7 million in 2024.
• Cash and cash equivalents of $110.4 million, or $3.68 per share, as of December 31, 2025.

Business Highlights

• Overall Customer Lifetime Value³ increased by 8.9% year-over-year to $875.
• In FY 2025, Mobile Sessions⁴ held constant at 72.0% year-over-year and accounted for 67.4% of transactions and 64.4% of net revenue, respectively, demonstrating a beneficial channel mix that aligns with the Company's mobile-first strategy.
• Company net revenue increased 3.6% year-over-year, significantly outpacing the broader industry as Adjusted NICS background checks declined 4.1% year-over-year during 2025, highlighting the competitive advantages of GrabAGun's frictionless eCommerce experience.
• Launched PEW Logistics, the Company's direct-to-consumer logistics solution for firearms and outdoor brands, with KelTec® Weapons already implementing the turnkey, white-label platform and suite of software and services enabling brand-owned, mobile-friendly digital storefronts.
• Became the first major firearms retailer to accept cryptocurrency payments, adding Bitcoin, USDC, and USDT across the full product catalog in December to strategically access younger, crypto-native consumers representing one of the fastest-growing firearms market segments.
• Executed $8.9 million of share repurchases during 2025, with $11.1 million remaining of the Company's previously authorized $20.0 million share repurchase program, reflecting management's strong conviction in the Company's fundamentals and an efficient capital allocation strategy to maximize shareholder value.
• Launched Shoot and Subscribe^TM, an ammunition subscription service providing significant savings and convenient recurring delivery options for customers.

Fourth Quarter and Full Year 2025 Conference Call and Webcast

Management will host a conference call at 4:30 PM ET today to discuss its fourth quarter and full year 2025 results. The live webcast and replay will be accessible under the Events & Presentations section of the Company's Investor Relations website at investors.grabagun.com.

About GrabAGun

We are defenders. We are sportsmen. We are outdoorsmen. We believe that it is our American duty to help everyone, from first-time buyers to long-time enthusiasts, understand and legally secure their firearms and accessories. That's why our arsenal is fully packed, consistently refreshed, and always loaded with high-quality, affordable firearms and accessories. Industry-leading brands that GrabAGun works with include Smith & Wesson Brands, Sturm, Ruger & Co., SIG Sauer, Glock, Springfield Armory and Hornady Manufacturing, among others.

GrabAGun is a fast growing, digitally native and multi-brand eCommerce retailer of firearms, ammunition and related accessories, and other outdoor enthusiast products. Building on its proprietary software expertise, GrabAGun's eCommerce site has become one of the leading firearm retail websites. In addition to its eCommerce excellence, GrabAGun has developed industry-leading solutions that transform supply chain management, combining dynamic inventory and order management with AI-powered pricing and demand forecasting. These advancements enable seamless logistics, efficient regulatory compliance and a streamlined experience for customers.

Forward-Looking Statements

This news release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), that involve risks and uncertainties. Any statements other than historical facts contained herein are forward-looking statements. Forward-looking statements reflect our beliefs and expectations based on current estimates and projections. While we believe these expectations, and the estimates and projections on which they are based, are reasonable and were made in good faith, these statements are subject to numerous risks and uncertainties. Forward-looking statements can also be identified by words such as "future," "anticipates," "forecasts," "estimates," "budgets," "projects," "strategy," "guidance," "outlook," "believes," "expects," "intends," "plans," "predicts," "potential," "seek," "continue," "target," "goal," "will," "would," "should," "could," "can," "may," and similar terms, although not all forward-looking statements contain these identifying words. Forward-looking statements are not guarantees of future performance and the Company's actual results may differ significantly from the results discussed in the forward-looking statements. Factors that might cause such differences include, but are not limited to, those discussed under the heading "Risk Factors" in the Company's the Registration Statement on Form S-4, as amended, filed by GrabAGun, including the definitive proxy/prospectus declared effective by the United States Securities and Exchange Commission ("SEC") on June 20, 2025 and other documents filed or to be filed by GrabAGun from time to time with the SEC. We intend that all forward-looking statements be subject to the safe-harbor provisions of the PSLRA. Recipients are cautioned not to put undue reliance on forward-looking statements. The forward-looking statements included herein are only made as of the date of this report, or if earlier, as of the date they were made, and we undertake no obligation to correct, update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except to the extent required under federal securities laws.

Revision of Previously Issued Financial Statements

The Company has revised certain prior-period financial statements to correct immaterial adjustments identified during the preparation of its consolidated financial statements. These adjustments include recognition of inventory, cost of goods sold, prepaid expenses, and presentation of specific line items in the statements of cash flows and statements of operations. These revisions were not material to the prior periods and do not affect the ongoing operations of the Company or Adjusted EBITDA. A quantification of the impact of these adjustments on each financial statement line item will be included in the Company's Form 10-K for the year ended December 31, 2025. The adjustments affecting the previously reported year ended December 31, 2024 are also included in the section Revision of Prior Period Financial Statements below.

Non-GAAP Financial Information

We utilize Adjusted EBITDA and Adjusted EBITDA margin, non-GAAP financial measures, to supplement GAAP measures of performance as a tool to evaluate our historical financial and operational performance, identify trends affecting our business, and formulate business plans and make strategic decisions. We believe that Adjusted EBITDA provides users of our financial information with useful supplemental information that enables a better comparison of our performance across periods. We believe Adjusted EBITDA provides visibility to the underlying continuing operating performance by excluding the impact of interest income, net, income tax, and non-cash expenses, including depreciation, amortization, stock compensation, and certain non-recurring costs, as management does not believe these to be representative of our core earnings. We also provide Adjusted EBITDA margin, which is calculated as Adjusted EBITDA divided by revenue.

The non-GAAP financial measures have not been calculated in accordance with GAAP and should be considered in addition to results prepared in accordance with GAAP and should not be considered as a substitute for, or superior to, GAAP results. We caution investors that non-GAAP financial information, by its nature, departs from traditional accounting conventions. Adjusted EBITDA is not a liquidity measure and should not be considered as discretionary cash available to us to reinvest in the growth of our business or to distribute to shareholders or as a measure of cash that will be available to us to meet our obligations.

We define Adjusted EBITDA as net income (loss) excluding interest income, net, income tax, and non-cash expenses, including depreciation and amortization, stock-based compensation, and certain non-recurring costs. Adjusted EBITDA margin represents Adjusted EBITDA as a percentage of revenue.

The following table reconciles our GAAP and non-GAAP financial measures for the three and twelve months ended December 31, 2025 and 2024 (in thousands, except percentages):

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¹ Adjusted NICS background checks refer to data from the National Instant Criminal Background Check System (NICS) that has been modified by the National Shooting Sports Foundation (NSSF) to exclude checks related to concealed carry permits and permit rechecks. This adjusted data is often used to provide a clearer picture of the firearms market, as the NICS system includes a significant number of checks for permit applications that do not directly correspond to a new firearm sale.

² Adjusted EBITDA is a non-GAAP financial measure. See the supplementary schedules in this press release for a discussion of how the Company defines and calculates this measure and a reconciliation thereof to net income (loss), the most directly comparable GAAP measure.

³ Customer Lifetime Value is an estimate of the present value of revenue expected from each customer, including the first order plus projected repeat orders.

⁴ Mobile Session is a period of user interaction with an app or website, initiated when a user opens your app in the foreground or views a page on your website using a mobile device.

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