GrabAGun Posts Loss Amid Growth, Bets on Logistics and Future Tech

COPPELL, TX – May 13, 2026 – GrabAGun Digital Holdings Inc. (NYSE:PEW) announced a strong start to its fiscal year with double-digit revenue growth that significantly outpaced the broader firearms market. However, the impressive top-line performance was coupled with a net loss, a direct result of planned, heavy investments in new business ventures, public company infrastructure, and a strategic expansion of its workforce.

The online firearms retailer reported an 11.1% year-over-year increase in net revenue to $25.9 million for the first quarter ended March 31, 2026. This growth story is underscored by the company's aggressive push into new territory with the January launch of PEW Logistics, a business-to-business fulfillment service, and its careful positioning for potential shifts in federal firearms regulations.

Outpacing the Market, Investing in Growth

In a clear sign of growing market share, GrabAGun's firearms sales surged 10.5% to $21.7 million. This performance stands in stark contrast to the modest 1.6% increase in Adjusted NICS background checks, a key industry barometer for gun sales, during the same period. The company's ability to capture a larger slice of the market highlights the success of its technology-focused approach.

Marc Nemati, Chief Executive Officer of GrabAGun, commented on the performance, stating, “We delivered a solid start to fiscal 2026 with firearms sales increasing 10.5% year-over-year, well above the 1.6% increase in Adjusted NICS background checks during the first quarter. These results reflect continued market share gains as well as the strength of our technology-driven platform and the loyalty of our growing customer base.”

Further bolstering its performance metrics, the company saw its overall Customer Lifetime Value increase by 4.2% to $906. Site traffic also grew by 12.6%, with the company’s mobile-first strategy paying significant dividends. Mobile sessions drove approximately 67% of site traffic and were responsible for 70% of all transactions, contributing 64% of net revenue. This demonstrates a successful alignment between the company's strategic focus and evolving consumer shopping habits.

The Price of Expansion: A Look at the Bottom Line

While revenue and customer metrics painted a rosy picture, the company’s bottom line tells a story of strategic investment. GrabAGun reported a Q1 net loss of $1.8 million, a sharp reversal from the $0.1 million net income recorded in the same quarter of 2025. Similarly, Adjusted EBITDA swung to a loss of $2.0 million from an income of $0.5 million in the prior-year period.

The primary driver of this loss was a more than doubling of operating expenses, which ballooned to $5.4 million from $2.2 million year-over-year. A detailed look reveals these costs are tied directly to the company's growth ambitions. General and administrative expenses surged to $5.1 million, encompassing approximately $500,000 in stock-based compensation, $1.5 million in costs for new hires to support growth, and around $800,000 in insurance and professional fees related to operating as a public company since its transition in mid-2025.

Despite the quarterly loss, the company's financial foundation remains solid. As of March 31, 2026, GrabAGun held over $106 million in cash and cash equivalents with minimal debt. This substantial liquidity provides a crucial runway for the company to continue executing its investment-heavy strategy without immediate financial pressure.

Building a New Arsenal: The Launch of PEW Logistics

A cornerstone of GrabAGun’s investment strategy is the launch of PEW Logistics, a wholly-owned subsidiary offering white-label, direct-to-consumer fulfillment solutions for firearms manufacturers. This move marks a significant diversification from its core retail business into a B2B service model.

“Importantly, we launched PEW Logistics, our white-label direct-to-consumer fulfillment solution for firearms manufacturers, in January 2026,” Nemati stated. “This marked a major milestone in GrabAGun's journey as we continue to expand our B2B offerings and open new revenue streams for the Company.”

The new venture is already gaining traction. PEW Logistics secured KelTec® Weapons as its inaugural partner and quickly added a second, Derya Arms, in March. The service generated its first revenue in the quarter, contributing $0.1 million to the top line. The company has committed significant capital, including an estimated $8 million in expenditures, to expand the fulfillment and logistics infrastructure needed to scale this new business.

Positioning for a Regulatory Revolution

Beyond its current business lines, GrabAGun is strategically positioning itself for a potential paradigm shift in the firearms industry. The company is closely watching proposed amendments from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) that could, under an approved framework, permit remote firearm transfers with secure identity verification and even direct-to-home delivery.

Management believes the company is uniquely prepared for such a future. “For over 15 years, we have invested in building the digital infrastructure, compliance systems and regulatory expertise required to operate in this complex regulatory environment at scale,” Nemati explained. “Few companies have spent that long building the operational foundation that this kind of regulatory evolution would demand.”

This long-term focus on technology and compliance could provide a formidable competitive advantage if regulations evolve to favor digitally native, logistically sophisticated operators, potentially transforming the entire firearms distribution model.

Underscoring management’s confidence in its long-term strategy, the company executed a $2.4 million share repurchase during the first quarter. With $8.7 million remaining in its authorized $20 million buyback program, the move signals a strong belief in the company's fundamentals and a commitment to delivering shareholder value, even as it navigates a period of transformative investment.