The company reported a negative 10.2% operating margin, driven by SG&A expenses that significantly outpaced the $2.8M in gross profit generated during 2026Q1.
| Sales/Revenue | 25.93M | 96.45M |
| Revenue Growth % | - | - |
| Cost of Goods Sold | 23.16M | 85.12M |
| COGS % of Revenue | - | 88.26% |
| Gross Profit | 2.77M | 11.33M |
| Gross Margin % | 10.67% | 11.74% |
| Gross Profit Growth % | - | - |
| Operating Expenses | 5.41M | 15.69M |
| OpEx % of Revenue | - | 16.27% |
| Selling, General & Admin | 5.41M | 15.69M |
| SG&A % of Revenue | - | 16.27% |
| Research & Development | 0 | 0 |
| R&D % of Revenue | - | - |
| Other Operating Expenses | 0 | 0 |
| Operating Income | -2.64M | -4.36M |
| Operating Margin % | -10.19% | -4.52% |
| Operating Income Growth % | - | - |
| EBITDA | -2.64M | -4.34M |
| EBITDA Margin % | -10.19% | -4.5% |
| EBITDA Growth % | - | - |
| D&A (Non-Cash Add-back) | 0 | 19K |
| EBIT | -2.64M | 0 |
| Net Interest Income | 0 | 0 |
| Interest Income | 0 | 0 |
| Interest Expense | 0 | 0 |
| Other Income/Expense | 806K | 1.87M |
| Pretax Income | -1.83M | -2.5M |
| Pretax Margin % | -7.08% | -2.59% |
| Income Tax | 0 | 12K |
| Effective Tax Rate % | 0% | -0.48% |
| Net Income | -1.83M | -2.51M |
| Net Margin % | -7.08% | -2.6% |
| Net Income Growth % | - | - |
| Net Income (Continuing) | -1.83M | -2.51M |
| Discontinued Operations | 0 | 0 |
| Minority Interest | 0 | 0 |
| EPS (Diluted) | - | -0.13 |
| EPS Growth % | - | - |
| EPS (Basic) | - | -0.13 |
| Diluted Shares Outstanding | 29.65M | 19.53M |
| Basic Shares Outstanding | 29.65M | 19.53M |
| Dividend Payout Ratio | - | - |
Operating margin insolvency risk
As reported in the 2026Q1 financial statements, GrabAGun Digital Holdings Inc. WT generated a gross margin of only 10.7%, which significantly trails industry peers like American Outdoor Brands, suggesting that the company lacks the necessary pricing power to cover its underlying cost of goods sold effectively.
The thin gross margin profile indicates that the company is likely struggling with high production or procurement costs relative to its revenue base. This structural weakness leaves little room for error, as any minor fluctuation in input costs could further erode the already negative operating margins.
Based on the 2026Q1 income statement, the company reported $5.4M in SG&A expenses against a gross profit of only $2.8M, demonstrating a clear lack of operating leverage that forces the firm into a negative operating income position of $2.6M for the current quarter.
The current expense structure appears unsustainable, as SG&A costs are nearly double the gross profit generated. Investors should monitor whether management can rationalize these overhead costs, as the current trajectory suggests that the business model is not yet optimized for scalable profitability.
According to the 2026Q1 filing, the company recorded $503.0K in stock-based compensation, which represents a significant portion of the reported $1.8M net loss, highlighting that non-cash expenses are compounding the underlying operational deficits and complicating the assessment of true cash-based earnings performance.
The reliance on stock-based compensation while the company is in a net loss position warrants further investigation into management's incentive alignment. This practice may be artificially inflating the cost base without providing a clear path toward achieving positive net income in the near term.
Data from the 2026Q1 income statement reveals a negative 10.2% operating margin, which suggests that the company is currently burning capital to maintain operations, raising serious questions about the sustainability of its business model without a significant infusion of external financing or drastic cost reductions.
Short-sellers would likely focus on the inability of the company to achieve positive operating income despite its revenue scale. The combination of low gross margins and high fixed costs suggests that the company may face liquidity constraints if it cannot reach an inflection point in the coming quarters.
Quick answers to the most common questions about buying PEW-WT stock.
For fiscal year 2025, GrabAGun Digital Holdings Inc. WT (PEW-WT) reported total revenue of $96.4M. This represents a 0.0% increase compared to $96.4M in 2025.
GrabAGun Digital Holdings Inc. WT (PEW-WT) reported a net loss of $2.5M for the fiscal year ending 2025.
GrabAGun Digital Holdings Inc. WT (PEW-WT) reported an operating income of $-4.4M, resulting in an operating profit margin of -4.5%. This margin reflects the operational efficiency of the business before interest and taxes.
GrabAGun Digital Holdings Inc. WT (PEW-WT) generated $11.3M in gross profit for the year, representing a gross profit margin of 11.7%. This demonstrates the company's core pricing power and production efficiency.