GrabAGun Digital Hldgs reports Q2 revenue growth, margin expansion

GrabAGun Digital Hldgs (NYSE: PEW ) released second-quarter financial results and hosted an earnings call on Thursday.

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For comprehensive financial data and transcripts, visit Access the full call at Summary GrabAGun Digital Hldgs reported a 9% year-over-year increase in net revenue to $23 million for the second quarter, with firearm sales rising by 8%.

Gross margin improved to 13.5% from 10.6% a year ago, driven by AI-driven pricing optimization and a favorable product mix.

Pew Logistics, a new strategic initiative, processed over $1.9 million in GMV, with three manufacturers onboarded, contributing to revenue diversification.

Operating expenses increased to $5.7 million, reflecting investments in public company infrastructure and expansion efforts, resulting in a net loss of $1.8 million.

The company maintains a strong balance sheet with $97.5 million in cash and minimal debt, supporting ongoing growth initiatives.

Future guidance includes continuing to expand Pew Logistics, leveraging existing infrastructure, and disciplined capital allocation for potential M&A opportunities.

Mobile engagement rose to 71% of traffic, indicating a shift toward digital channels and a structurally lower cost-per-transaction.

Justin Hilty announced his retirement as CFO, with Jonathan Terry from YETI named as his successor.

Full Transcript OPERATOR Earnings Conference Call.

On today's call are Mark Nemati, Chief Executive Officer, and Justin Hilty, Chief Financial Officer.

A recording of this conference call will be available on the GrabAGun Digital Hldgs investor relations website shortly after this call has ended.

After today's prepared remarks, we will host a question-and-answer session.

If you would like to ask a question, please press star-one to raise your hand.

I'd like to take this opportunity to remind you that during the call we will be making certain forward-looking statements.

This includes statements relating to the operating performance of our business, future financial results and guidance, strategy, long-term growth, and overall future prospects.

We may also make statements regarding regulatory or compliance matters.

These statements are subject to known and unknown risks and uncertainties that could cause our actual results to differ materially from those projected or implied during this call, in particular those described in our risk factors included in the Form 10-K for the fiscal year ended December 31, 2025, filed by the Company with the SEC on March 12, 2026, as well as the current uncertainty and unpredictability in our business, the markets, and the global economy generally.

You should not rely on our forward-looking statements as predictions of future events.

All forward-looking statements that we make on this call are based on management's assumptions and beliefs as of the date hereof, and GrabAGun Digital Hldgs disclaims any obligation to update any forward-looking statements except as required by law.

Our discussion today will include non-GAAP financial measures, including adjusted EBITDA.

These non-GAAP measures should be considered in addition to and not as a substitute for, or in isolation from, our GAAP results.

Information regarding our non-GAAP financial measures, including a reconciliation of our non-GAAP financial measures to our most comparable historical GAAP financial measures, may be found in our earnings release, which we filed with the SEC earlier today and is available on the Company's investor relations site.

I'll now turn the call over to Mark Nemati.

Mark, please go ahead.

Mark Nemati, Chief Executive Officer Good afternoon and thank you for joining us.

The second quarter reflected continued execution along the long-term strategy we've been building over the past several years.

We grew ahead of the industry, expanded margins meaningfully, and continued extending the capabilities we've built into new opportunities like Pew Logistics, which we believe will define the next era of firearms commerce, all while maintaining the operating discipline and balance sheet strength that sets us apart.

Looking at the second quarter, net revenue increased 9% year over year to $23 million, with firearm sales up 8%, while gross margin expanded to approximately 13.5%.

Firearm sales growth was primarily driven by an increase in average order value and a continued shift in mix towards higher price point products, reflecting the strength of our customer value proposition.

We're especially pleased with our disciplined approach to driving profitability.

While revenue increased 9%, cost of goods sold increased by only 6%, resulting in a 39% increase in gross profit and the gross margin expansion I mentioned a moment ago to approximately 13.5% compared to 10.6% a year ago.

Those results reflect the benefits of our AI-driven pricing optimization, a favorable product mix, our sourcing capabilities, and the initial contribution of Pew Logistics as we continue to scale the platform.

Just as important is how efficiently we acquire and serve customers.