Grabagun Digital (NYSE:PEW) reported lower third-quarter revenue as firearm sales volumes fell, but wider gross margins helped narrow its net loss. The company also outlined plans to integrate wholesale distributor Camfour, which it acquired after the quarter ended.
Revenue fell 4.7% to $21.2 million from $22.3 million a year earlier. Gross margin expanded to 14.4% from 9.6%, while the net loss narrowed to $3 million from $3.8 million. Adjusted EBITDA, a non-GAAP measure, worsened to a loss of $2.1 million from a loss of $0.9 million.
Chairman and CEO Marc Nemati said higher selling prices, improved sourcing and growth in the company’s higher-margin PEW Logistics platform contributed to the margin improvement. It was the company’s third consecutive quarter of year-over-year gross margin expansion.
Lower volumes offset higher prices
Firearms product sales declined 4.5% to $17.3 million. A 14% drop in unit volume was partially offset by a 10% increase in average selling price. Non-firearms sales fell 11.8% to $3.7 million, as a 27% decline in units outweighed a 20% increase in average selling price.
Nemati said orders moderated from the second quarter, when demand had surged amid suppressor-related regulatory changes. He also cited a difficult comparison with demand following the company’s July 2025 public listing. The company redirected marketing investment toward search engine optimization and organic customer acquisition during the quarter, Chief Financial Officer Jonathan Terry said.
Gross profit increased to $3.1 million from $2.1 million. Operating expenses were $6.8 million, compared with $6.9 million a year earlier. Terry said investments in staff and public-company infrastructure, along with acquisition-related costs, added approximately $2.5 million in expenses, offset by a $2.6 million decrease in stock-based compensation.
Asked about early fourth-quarter demand, Nemati declined to comment on current-quarter trends. He said the company would continue to monitor traffic, conversion and unit volumes.
Camfour adds wholesale distribution
GrabAGun completed its acquisition of Camfour on October 26 for approximately $34 million in cash, without external financing or issuing shares. Camfour, a distributor of firearms, ammunition and outdoor products to independent dealers, generated approximately $77 million in audited net revenue in 2025.
Some of Camfour’s sales were to GrabAGun and will be eliminated in consolidation. Terry said the company was not yet in a position to disclose the breakdown between those intercompany sales and Camfour’s external revenue. GrabAGun expects to file Camfour’s audited financial statements and pro forma information in an amended Form 8-K in early January.
Nemati said Camfour will continue operating under its own name, with its own sales team and dealer terms. GrabAGun plans to apply its technology, including demand forecasting, automated pricing and procurement systems, to the wholesale business. He said the company’s existing retail model and product catalog would not change significantly as a result of the acquisition.
Logistics growth and cash position
PEW Logistics, GrabAGun’s white-label direct-to-consumer platform for manufacturers, generated approximately $300,000 in third-quarter service revenue, up 28% from the second quarter. The platform had processed more than $3.1 million in gross merchandise value, according to Nemati.
The platform added SAR, through its exclusive U.S. importer SAR USA, as its fourth manufacturer in October. GrabAGun also launched a new website for KelTec, expanding its work for the manufacturer from fulfillment into full e-commerce operations. Nemati said the expanded services do not change the platform’s pricing model but broaden the assortment available to customers.
GrabAGun ended the third quarter with $96 million in cash, before the Camfour purchase. During the quarter, it generated $1.3 million in operating cash flow and spent $2.8 million on capital expenditures, primarily for its new headquarters. For the first nine months of the year, it used $7.3 million in operating activities and spent $2.4 million on share repurchases.
No shares were repurchased in the third quarter, and the company’s previous $20 million repurchase plan expired in early August. Nemati said liquidity remains the first priority in capital allocation, followed by funding the core business, organic growth and potential acquisitions. The company may also consider repurchases when it believes its shares trade below intrinsic value, he said.
About Grabagun Digital (NYSE:PEW)
GrabAGun.com is an online retailer of firearms, ammunition and related accessories. GrabAGun.com, formerly known as Colombier Acquisition Corp. II, is based in COPPELL, Texas.
