Good afternoon, and thank you for joining us. We started fiscal year 2026 with momentum.

Our Q1 results show a business model that's working, and they reflect our commitment to supporting Americans' Second Amendment rights. Our first quarter results reflect disciplined execution across our operation and our continued commitment to serving a growing customer base that values constitutional freedoms and lawful access to a wide selection of premium firearms and accessories.

First, the headline numbers. Q1 revenue increased 11.1% year-over-year to $25.9 million.

Driven by a 10.5% increase in firearm sales, our growth continued to outpace the broader industry, as adjusted NICS background checks were up by 1.6% during that same period. We are continuing to take share in a challenging environment, and we believe we are just scratching the surface of what this platform can do.

Our growth is impressive against that backdrop. The strength of the business model shows up most clearly in our customer metrics.

Customer lifetime value continued to grow, up 4.2% year-over-year, reflecting deep relationships with our expanding base of loyal customers. Repeat purchase momentum remained strong, with our repeat rate holding steady as customers continue to return to GrabAGun for their firearms and accessory needs.

Mobile engagement continued to be a significant driver of our business as well, accounting for approximately 67% of traffic and 64% of revenue in the first quarter. Mobile drives higher conversion rates, and our digital model runs at a structurally lower cost per transaction than traditional retail.

These conversion rates, this customer lifetime value, this repeat purchase behavior, none of it is accidental. It's the result of over 15 years of compounding investment in technology, supplier relationships, and customer trust.

As I mentioned on our fourth quarter call, 2025 was an inflection point for GrabAGun. We completed our public listing, expanded our strategic capabilities, and laid the foundation for the next phase of growth.

We entered 2026 with momentum, and this quarter, we continued to execute against our strategic priorities. We had a significant milestone this quarter: the launch and continued development of Pugilistics, our white-labeled direct-to-consumer fulfillment solution, purpose-built for firearm manufacturers.

For those who may be newer to this part of our story, let me provide some context on why this is important. The firearm industry has a friction gap that has persisted for decades.

Manufacturers have historically been locked out of direct-to-consumer commerce, not because they lack the products or brand equity, but because of regulatory complexity, FFL processing requirements, and a fragmented fulfillment infrastructure that creates barriers most cannot overcome on their own. The result is referral leakage.

Manufacturers drive demand through marketing and brand building, only to watch that demand get captured by third-party retailers who own the customer relationship and the data. Pugilistics solves this problem.

We engineered a platform that allows manufacturers to launch branded, direct-to-consumer storefronts with full ATF-compliant FFL workflows, end-to-end fulfillment, and first-party customer data. All of it is powered by over 15 years of infrastructure investment at GrabAGun.

Manufacturers can launch in weeks, not months, with no major capital outlay and no need to build out compliance, IT, customer service, or logistics teams. We launched Pugilistics in January with KelTec Weapons as our first implementation.

KelTec is a 35-year American firearms manufacturer with a loyal customer base, and their collaboration validated the platform's value proposition from day one. In March, we added Derya Arms as our second manufacturer client.

Derya is a global manufacturer with over 200,000 firearms produced and products trusted by professionals in more than 50 countries. The addition of Derya demonstrates growing industry momentum for the platform and validates its appeal across both domestic and international manufacturer profiles.

We are also making progress on our new headquarters and fulfillment facility, which we acquired in the fourth quarter. At approximately 2.5 times our current footprint, this purpose-built facility provides the operational capacity to support our growth well beyond 2026, including the anticipated needs as we aggressively scale Pugilistics.

We are currently outfitting the space and remain on track to be fully operational in the fourth quarter of 2026. This is a long-term infrastructure investment that reflects our conviction in where the business is headed.

Since launch, Pugilistics has processed $1.3 million in gross merchandise value. Our network of FFL holders that puts a licensed dealer within 15 miles of 97% of the US population ensures fast, compliant delivery nationwide, resulting in an average checkout-to-delivery time of just under three business days.

Pugilistics continues to outpace traditional online firearms retail benchmarks. The early results are encouraging, and we see significant runway ahead as we onboard additional manufacturers throughout the year.

Beyond Pugilistics, we continue to strengthen our core D2C e-commerce business. Our shoot-and-subscribe ammunition subscription service, which we launched in the fourth quarter, continues to build momentum.

The service introduced something the firearms e-commerce category had not historically had: a predictable, recurring revenue model built upon a loyal, contracted customer relationship, instead of relying upon a series of one-time transactions with the same customer. Early adoption has continued to build, now contributing 15% of our ammo revenue line, and the model is architected to expand across additional product categories over time.

Looking ahead, we remain focused on scaling Pugilistics with additional manufacturers, driving continued market share gains in our core D2C business, and deploying capital towards accretive opportunities that strengthen our platform. Regarding capital deployment specifically, outside of directly growing Pugilistics and our D2C channel, we remain focused on finding accretive opportunities and are taking a disciplined approach focused on long-term shareholder value.

We continue to evaluate both potential M&A and internal build possibilities. Our M&A pipeline remains active, but our priority remains disciplined, and our approach to M&A is straightforward.

We're not in the business of overpaying to hit arbitrary growth targets. The strength of our balance sheet gives the luxury of patience.

We can wait for the right assets at the right price, rather than chasing deals that don't make strategic or financial sense. Our framework is built on acquisitions in the tens of millions, where they enhance our platform capabilities and meet our return thresholds, focusing on long-term shareholder value.

When we find those targets, we will move quickly. Until then, we are comfortable staying disciplined and letting our organic growth engines, both D2C and Pugilistics, compound.

Overall, our first quarter results demonstrate that the strategy is working. We continue to outperform the broader firearms industry, we are building a promising new growth vector through Pugilistics, and we are doing so while maintaining a fortress balance sheet and returning capital to shareholders.

The next generation of firearm consumers is already here. They transact on mobile, they transact with Bitcoin, they expect frictionless experiences, and they hold GrabAGun to the same standard as the best retail platforms on the internet.

We are built for this customer, we are winning today, we are taking more market share every quarter. Before I turn it over to Justin, one regulatory item worth flagging that could reshape this industry: the ATF has proposed new regulations that would allow certain firearm transfers to occur remotely, with federal background check requirements still met through secure identity verification.

If finalized, lawful consumers could complete the full compliance process remotely. That includes direct-to-home firearm delivery within an approved framework.

This could be the most significant change to firearms retail distribution in decades. Importantly, the infrastructure required to operate in this environment is complex.

As currently proposed, the new regulations require remote identity verification meeting federal standards, seamless NICS integration, advanced compliance systems, secure record keeping, and the operational ability to execute all of it accurately at scale. GrabAGun is uniquely positioned for this opportunity.

For more than 15 years, we have built the digital infrastructure and compliance foundation required to support highly regulated online firearm transactions. Few companies are positioned to adapt this quickly if the rules change.

Regardless of regulatory outcome, the long-term strategy that we have been building on for years positions us to continue to drive the evolution of firearms commerce. With that, I'll pass it over to Justin.

Thank you, Marc. I will now dive into our financials in more detail.

First quarter net sales were $25.9 million, an increase of 11.1% compared to $23.3 million in the first quarter of fiscal 2025. Firearms product sales increased 10.5% year-over-year to $21.7 million, significantly outperforming adjusted NICS background checks during the quarter.

The strength in firearms was driven by continued market share gains, favorable product mix, and the ongoing effectiveness of our AI-powered pricing and demand forecasting capabilities. Non-firearms product sales were $4.1 million, an increase of 10.4% year-over-year, despite widespread softness in ammunition demand that has been consistent across the 2A industry.

Gross profit for the first quarter was $2.8 million, or 10.7% of net sales, compared to $2.2 million, or 9.6% of net sales, in the prior year period. Favorable mix towards higher margin firearms categories, plus continued benefit from our pricing optimization, drove the 107 basis point improvement in gross margin.

We remain focused on driving sustainable margin improvement while maintaining our competitive price positioning. Total operating expenses for the first quarter were $5.4 million, compared to $2.2 million in the prior year period.

The increase reflects planned investments in public company infrastructure, the launch and scaling of Pugilistics, and incremental headcount to support our growth initiatives. As a reminder, the first quarter of fiscal 2025 was a pre-public company period, the year-over-year comparison reflects the full impact of incremental costs associated with operating as a public company.

Net loss for the first quarter was $1.8 million. The $3.2 million increase in year-over-year SG&A expenses were primarily attributable to approximately $1.5 million in incremental headcount to support our growth initiatives, about $500,000 in stock-based compensation, and approximately $800,000 in insurance costs and professional fees associated with operating as a public company.

Adjusted EBITDA for the first quarter was a $2 million loss, compared to half a million dollars in the prior year period. The decrease reflects the increased operating expenses I just mentioned, partially offset by higher gross profit from our revenue growth and margin expansion.

Turning to the balance sheet, we ended the quarter with $106.4 million in cash and minimal debt. Our business model is built so that we can collect from our customers before we pay our suppliers.

With $9.2 million in inventory against $13 million in accounts payable, our suppliers are effectively co-funding our growth. As a reminder, while our results today primarily reflect our core direct-to-consumer business, over time, we expect Pugilistics to begin contributing to our diversified revenue model in an even more meaningful way.

This business carries a structurally higher margin profile than our core direct-to-consumer business, driven by its software-like revenue share model and highly scalable economics that leverage our existing infrastructure with minimal incremental fulfillment costs. As Pugilistics scales and contributes more significantly to our revenue mix, we expect it to be accretive to overall margins over time.

During the first quarter, we repurchased approximately $2.4 million of our common stock under our $20 million share repurchase authorization. We have just under $9 million remaining under the current authorization, and we'll continue to evaluate opportunistic share repurchases while maintaining a disciplined approach to capital allocation and preserving balance sheet flexibility to support our long-term growth initiatives.

Looking ahead, we expect to continue investing in our strategic growth initiatives, including expanding Pugilistics through additional manufacturers and driving continued market share gains within our core direct-to-consumer business. We remain focused on disciplined expense management while making the investments necessary to capture the significant opportunities ahead of us.

With that, I'll turn the call back to Marc before we move into Q&A. Marc?

Thank you, Justin. I would like to quickly reiterate the key themes from today's discussion.

We delivered a solid first quarter with 11% revenue growth and continued market share gains in a flat industry environment. We made meaningful progress scaling Pugilistics, with two manufacturers now on the platform, and we maintained our fortress balance sheet with over $106 million in cash and minimal debt, providing us with significant flexibility to pursue our growth initiatives and return capital to shareholders.

We at GrabAGun continue to lead the generational shift towards digitally native commerce in the firearms industry. With the potentially large regulatory changes by the ATF, we believe we are uniquely positioned to capitalize on the next industry evolution.

Our 15 years of compounding investment in technology, supplier relationships, and customer trust have built competitive advantages that widen as the market evolves. We are confident in our strategy, we're executing against our priorities, and we are excited about the opportunities ahead.

With that, operator, please open the line for questions.

Hey, thanks guys. Nice work on the outperformance versus NICS again.

Just wanted to hear a little bit more on the outgrowth as it pertains to units versus average order value on firearms this quarter. Then anything you can share on just cadence of the quarter.

Obviously we had some geopolitical disruption in March. Just wanted to hear how that might have impacted results intra-quarter and what you've seen in terms of demand trends since then, if you're willing to share sort of April or May trend that you've seen in terms of firearm demand.

Hey, thanks Matt for joining. I think most of the growth that we can attribute to this is the consistency of our platform.

Obviously we've spent a lot of time making sure that there's as much reduced friction as possible. A lot of it also attributable to our product mix.

We're continuing to purchase the right items at these right prices to help consumers purchase what they want, as well as you've probably seen our expanded marketing capabilities. Now we're driving I think a lot more traffic, a lot more consumer demand into our platform through all the changes we've done in marketing, whether that's social media or other marketing channels.

Then in terms of intra-quarter stuff, the quarter month-by-month, it's pretty stable across the line. That growth is a upward trend and that trend is continuing through the first quarter and beyond.

It's been pretty stable. I don't see that many peaks and spikes because of geopolitical events.

There may be some, but they're not massive in any duration. The platform and the revenue that is generating has all been fairly stable and growing linearly.

All right, appreciate that, Marc. Then just maybe on the Pugilistics solution.

Good to see the second customer added there. How should we think about the funnel of opportunity I guess as it pertains to maybe manufacturing partners that could sign up, how you're attacking the market overall, and how growth should unfold as that kind of ramps from a standing start?

I think we'll get more manufacturers on a much quicker cadence after they start seeing some of these metrics and revenue that's being driven by some of the partners we have on there already. As we just launched this in mid-January with our first customer, KelTec, and then Derya came on board and that website launched I think about a week or two ago.

It's all still very new. The more time we have under our belt with that and the more results that we show, these manufacturers I believe will start to see kind of the option that they have to leverage a platform like this to grow their gross margin, and again to kind of work on that funnel of customer information that they're losing out on because of the way that they don't have a direct purchasing capability currently.

Okay. Then on the margins front on Pugilistics, I guess it's fair to say given this is service revenue and maybe there's a little bit of logistics cost associated with it, it should come at a significantly higher gross margin than the core e-commerce platform.

Is that a fair assumption?

The platform is significantly higher. As you said, it's a rev share model.

In addition to those pick pack ship fees, gross margin profile there is upwards of 70%, which is much higher compared to that of the hard goods e-commerce platform.

All right, got it. Then on the M&A funnel, I guess I didn't particularly detect a different tone from you guys.

It seems like you're just remaining patient there and we'll look for opportunistic M&A as it becomes available. Just any update on the funnel and maybe level of urgency as we kind of think about deploying capital on the M&A front?

I would say the funnel is still full. We are actively reviewing and looking through several potential deals.

As I mentioned also, we are very, very disciplined in our approach. We're not going to overpay for an asset just for the sake of making a deal.

We have a pretty rigid framework, and if a acquisition is accretive in revenue and income, then we'll act on that quickly. We want to make sure that we have all that cash to deploy whenever that target comes up, but as well we want to leverage that cash for organic growth as well, growing out GrabAGun and Pugilistics.

We're not just going to throw money away just for the sake of closing a deal.

Okay. Then in the meantime in terms of cash deployment, organically I guess, are there any chunkier expenses or capital expenses we should be thinking about as you ramp the distribution center and move in there fully through the end of the year or with Pugilistics and getting that up and running?

How should we think about I guess the capital outlay organically from a cash perspective through the rest of the year for those items?

Obviously we're building out the new facility, and then once we're into that facility, we'll have a lot more space for inventory, our own inventory as well as the Pugilistics inventory. There likely will be some capital deployment by increasing our overall inventory capabilities, which again helps us drive better pricing, better margins, but still the lion's share of the capital deployment is around M&A, and we're going to still focus on that for the duration of the year and beyond.

Got it. I'll leave it there, guys.

Thanks so much.

Thank you, operator, and thank you to everyone who joined us today. Before we sign off, I would like to thank our employees whose dedication and hard work continues to drive our success every day.

I also want to thank our shareholders for your continued support and confidence in GrabAGun as we execute our long-term vision. We look forward to speaking with you on our next earnings call.