GrabAGun Q2 2026 revenue exceeds forecast despite widening losses

GrabAGun, a U.S.-based firearms retailer, reported second-quarter revenue for 2026 that surpassed analyst expectations, even as net losses widened compared with the prior year.

The company’s Q2 2026 financial results, outlined in a presentation, showed revenue of $185 million, exceeding the $175 million consensus estimate compiled by Refinitiv. Despite the revenue beat, GrabAGun’s net loss deepened to $12.3 million from $8.7 million in the same period last year, reflecting higher operating costs and intensified competition in the firearms market.

Gross margin contracted to 18.5% from 22.1% a year earlier, driven by pricing pressures and elevated inventory write-downs. The company attributed the margin decline to discounting strategies aimed at clearing excess stock and maintaining market share amid slowing consumer demand.

Management highlighted a 15% year-over-year decline in units sold, offset partially by a shift toward higher-margin premium products. However, the strategy has yet to reverse the trend of widening losses, with operating expenses rising 11% due to logistics and labor costs.

GrabAGun’s cash position remained stable at $42 million, though free cash flow turned negative for the quarter, pressured by higher capital expenditures and working capital needs. The company did not revise its full-year guidance, citing ongoing macroeconomic uncertainty and regulatory scrutiny in key markets.

Shares of GrabAGun were little changed in after-hours trading following the release, with investors focusing on the revenue beat amid broader concerns over profitability.