Grabagun Digital (NYSE:PEW) reported fourth quarter and full-year 2025 results that management said reflected market share gains, stronger customer engagement, and early traction from its newly launched PEW Logistics fulfillment platform.
Fourth-quarter growth outpaced broader industry trends
CEO Marc Nemati said the company delivered an “exceptional” fourth quarter, with revenue rising 14.1% year over year to $29.6 million. Firearm sales grew 19.1% to $25.7 million, driven by 11.5% volume growth and what management described as favorable pricing dynamics. Nemati contrasted the company’s growth with industry conditions, noting that adjusted NICS background checks declined 4.1% during the same period.
Margins improved, while operating income was pressured by public company costs
Hilty said gross profit margin expanded 290 basis points in the fourth quarter to 15.9%. He attributed the improvement primarily to select one-time purchasing opportunities, favorable product mix, strategic buying during the quarter, and progress in supplier relationships.
Operating expenses increased “primarily due to stock-based compensation and public company costs,” resulting in a loss from operations of $0.4 million compared with operating income of $1.8 million in the prior-year quarter. Net income remained positive at $0.4 million, and adjusted EBITDA was $231,000 for the quarter, which Hilty said reflected disciplined cost management while continuing to invest in growth and absorb incremental public company expenses.
For full-year 2025, the company reported revenue of $96.4 million, up 3.6% year over year. Gross margin improved to 11.7% from 10.4% in the prior year. The company posted a net loss of $2.5 million for the year, which Hilty attributed to stock-based compensation and higher public company expenses following the business combination, including transaction-related expenses. Adjusted EBITDA for the year was $753,000, which management said demonstrated an ability to maintain positive operating cash flow while investing for long-term growth.
Customer metrics and mobile engagement highlighted as key strategic drivers
Nemati emphasized customer engagement metrics as evidence of the company’s progress. He said customer lifetime value increased 8% year over year, reflecting what he called deeper relationships with a growing base of loyal customers.
Management also pointed to mobile usage as a central part of its strategy. Nemati said mobile sessions drove a majority of both transactions and revenue in 2025, with mobile accounting for 72% of traffic and 64% of revenue for the year, up 19% and 11%, respectively, from the prior year. He said mobile drives higher conversion rates and argued the company’s digital model carries a structurally lower cost per transaction than traditional retail.
PEW Logistics launch: early volume and a “software-style” pricing model
Nemati said the most significant milestone of the year was the commercial launch of PEW Logistics, a wholly owned, white-label direct-to-consumer fulfillment platform built for the firearms and outdoor industry. He said the platform operates on the same technology backbone used by GrabAGun’s e-commerce business, allowing the company to launch with minimal incremental cost. Nemati described PEW Logistics as using a “software-style pricing model with revenue share,” which he said produces economics more akin to a scalable software business than traditional logistics.
The company launched PEW Logistics with KelTec as its first implementation. Nemati said that in the first 30 days of transaction volume, the platform exceeded internal projections, delivering:
- Over 500 orders
- Approximately $400,000 in gross merchandise value
- An average delivery time of just over three business days from checkout to doorstep
Nemati also said a 1% e-commerce conversion rate on the new storefront was already outpacing a traditional online firearms retail benchmark in the first month.
Both Nemati and Hilty said the platform is intended to address friction that has historically limited manufacturers’ direct-to-consumer efforts, including compliance complexity and fragmented fulfillment infrastructure. Nemati said the company’s FFL dealer network enables a license transfer dealer to be within 15 miles of 97% of the U.S. population, supporting compliant nationwide fulfillment.
Hilty added that PEW Logistics generates revenue through setup fees for storefront customization, monthly platform fees, per-transaction fulfillment fees, and optional marketing services. Because the services leverage existing technology and logistics infrastructure, he said management believes the platform can carry a structurally higher margin profile than the core retail business as it scales.
Capital allocation: facility investment, crypto payments, subscriptions, and buybacks
Nemati said the company acquired a new headquarters and fulfillment facility in the fourth quarter for $8.25 million. He described the site as roughly 2.5 times the company’s current footprint and said it provides capacity to support growth beyond 2026, including anticipated needs as the company scales PEW Logistics. The company expects to be fully operational in the new space in the fourth quarter of 2026. In response to an analyst question, management said the building investment is intended to support both GrabAGun and PEW Logistics.
Nemati also highlighted several initiatives launched during 2025, including accepting cryptocurrency payments in December—Bitcoin, USDC, and USDT—across the company’s catalog, and the introduction of “Shoot to Subscribe,” an ammunition subscription service intended to add a recurring revenue model.
On share repurchases, Nemati said the company bought back $8.9 million of stock during 2025, and Hilty said this amounted to approximately 1.56 million shares. Management said $11.1 million remained under the current authorization at the start of 2026.
Hilty said the company ended 2025 with $110.4 million in cash and cash equivalents and minimal debt, which he said provides flexibility for organic investments, repurchases, and strategic acquisitions. Looking ahead, he said the company expects operations to be “approximately cash flow neutral” in 2026, with cash deployment directed toward share repurchases and “high return” opportunities including technology investments and potential strategic investments or acquisitions.
On M&A, Nemati said the pipeline remains active but emphasized valuation discipline, citing a disconnect between seller expectations and fundamentals. He said the company would only pursue acquisitions that are clearly accretive and strengthen the broader ecosystem it is building.
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.
