A Strategic Pivot Pays Off for Outdoor Holding Company

Ammo US00175J1079

Outdoor Holding Company, formerly known as AMMO Inc., has completed a significant corporate transformation, with its shares closing the week at $1.94. The company's strategic exit from ammunition manufacturing and a return to profitability in its second fiscal quarter of 2026 have successfully repositioned it as a profitable e-commerce entity. A recent two-week rally of approximately 19% in the share price underscores investor confidence in this new direction.

The cornerstone of this renewed optimism is the company's performance for the second quarter of fiscal year 2026, ended September 30, 2025. Outdoor Holding reported net income from continuing operations of $1.40 million. This result marks a dramatic reversal from the $5.87 million loss recorded in the same period the previous year.

Key Financial Metrics (Q2 FY 2026):
* Net Sales: $11.98 million
* Gross Margin: 87.1%
* Adjusted EBITDA: $4.91 million
* Diluted Earnings Per Share: $0.01

The exceptionally high gross margin of 87.1% validates the strategic decision to divest the capital-intensive ammunition production business in April 2025.

Market Analysts Respond to the New Focus

Following the company's complete shift to operating the online marketplace platform GunBroker.com, analyst sentiment has turned positive. The current consensus price target stands at $2.38, suggesting an upside potential of roughly 22% from the current trading level. In November 2025, Roth Capital upgraded the stock to a "Buy" rating and raised its price target, signaling a resurgence of institutional interest.

From a technical perspective, the equity is currently testing support levels between $1.80 and $1.85 after declining 0.52% on Friday, December 5. However, the confirmed quarterly profit provides a fundamental foundation that distinguishes the current valuation framework from the speculative lows of 2024. The company's operational fresh start was finalized with its corporate relocation to Atlanta in October 2025. The next significant price level to watch is the recent peak of $2.13.