Outdoor Holding Company Reaches Settlement with Digital Cash Processing
Rhea-AI Summary
Outdoor Holding Company (Nasdaq: POWW) reached a settlement with Digital Cash Processing resolving litigation in U.S. District Court for the District of Minnesota. The company will pay $4.4 million as a full and final settlement and expects to file a dismissal with prejudice upon payment.
The Board said the settlement removes uncertainty, avoids further litigation costs, and lets management focus on operations. The company will record a one-time charge of approximately $4.4 million this quarter, partially offset by reduced budgeted legal expense over the next several years, and does not expect a material impact on liquidity or ongoing operations.
Positive
- Eliminates ongoing litigation uncertainty with DCP
- Reduces budgeted operational legal expense over several years
Negative
- One-time charge of approximately $4.4 million recorded this quarter
Key Figures
Market Reality Check
Peers on Argus
POWW was up 4% while peers were mixed: ISSC (-0.04%), SPAI (-12.35%), SPCE (-2.38%), VWAV (+4.99%), DPRO (+3.41%). This pattern points to company-specific drivers rather than a broad Aerospace & Defense move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 12 | Preferred dividend | Positive | -2.1% | Announced cash dividend on 8.75% Series A preferred shares. |
| Feb 09 | Earnings results | Positive | +7.1% | Reported continued profitability with higher adjusted EBITDA and net income. |
| Jan 20 | Operational integration | Positive | -3.4% | Announced Master FFL integration to streamline GunBroker marketplace workflows. |
| Jan 13 | Earnings call notice | Neutral | +0.5% | Scheduled Q3 FY2026 earnings release and conference call details. |
| Jan 05 | Share repurchase | Positive | +5.4% | Board authorized up to $15M common share repurchase over 12 months. |
Recent news has often been shareholder-friendly (buyback, dividend, profitability), with mixed immediate price reactions but a slight tilt toward alignment on positive operational updates.
Over the last few months, Outdoor Holding Company has focused on capital returns and operational execution. A $15 million share repurchase authorization on Jan 5, 2026 and a Series A preferred dividend of $0.546875 per share on Feb 12, 2026 highlighted capital allocation. The company reported continued profitability in Q3 FY2026 with $6.55 million adjusted EBITDA and $1.46 million net income before discontinued operations on Feb 9, 2026. Today’s litigation settlement fits into this pattern of clearing legacy issues after earlier SEC and operational resolutions.
Market Pulse Summary
This announcement resolves previously disclosed litigation through a $4.4 million payment and related one-time charge, which the company says should not materially affect liquidity or operations. It continues a broader effort to clear legacy legal matters following earlier SEC and operational milestones. Investors may watch upcoming quarters for how quickly legal expenses decline, how profitability trends after absorbing this charge, and whether strategic initiatives like platform integration and buybacks continue to support long-term execution.
Key Terms
dismissal with prejudice regulatory
AI-generated analysis. Not financial advice.
Atlanta, GA., Feb. 23, 2026 (GLOBE NEWSWIRE) -- Outdoor Holding Company (Nasdaq: POWW, POWWP) (“OHC,” “we,” “us,” “our” or the “Company”), the owner of GunBroker.com, the largest online marketplace for firearms, hunting and related products, today announced that it has entered into a settlement agreement with Innovative Computer Professionals, Inc., d/b/a Digital Cash Processing (“DCP”), resolving the previously disclosed litigation pending in the United States District Court for the District of Minnesota.
Under the terms of the agreement, the Company agreed to pay
After careful evaluation, the Board of Directors determined that resolving the matter at this stage eliminates ongoing uncertainty and substantial future legal costs. While the Company was prepared to continue defending the case, further litigation would have required significant time, expense, and executive attention. By bringing the matter to a close, the Company eliminates uncertainty and allows its leadership team to devote its full focus to operational execution, strategic initiatives, and long-term value creation.
“We have spent a lot of time, energy, and effort resolving legacy disputes, which has been a distraction from our core mission,” said Steve Urvan, the Company’s Chairman and CEO. “While we were prepared to vigorously defend these claims through trial, removing the distraction and uncertainty and ending the substantial associated legal expense is in the Company’s best interest. Reaching this resolution allows us to dedicate our time and resources to areas that improve shareholder value: streamlining operations, reducing transaction friction, strategic innovation, and growth.
The Company expects to record a one-time charge of approximately
Outdoor Holding Company remains committed to disciplined capital allocation, operational rigor, and expanding its leadership position in its core markets to enhance marketplace performance and improve shareholder returns.
About Outdoor Holding Company
Outdoor Holding Company is the publicly traded parent and operator of GunBroker.com, the largest online marketplace dedicated to firearms, hunting, shooting and related products. Third-party sellers list items on the site and federal and state laws govern the sale of firearms and other restricted items. Ownership policies and regulations are followed by using licensed firearms dealers as transfer agents. Launched in 1999, the GunBroker.com website is an informative, secure and safe way to buy and sell firearms, ammunition, shooting accessories and outdoor gear online. GunBroker promotes responsible ownership of firearms. For more information, visit: www.gunbroker.com.
Cautionary Statement Concerning Forward-Looking Statements
Statements contained in this press release that are not historical are considered “forward-looking statements” within the meaning of the federal securities laws and are presented pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “target,” “believe,” “expect,” “will,” “may,” “anticipate,” “estimate,” “would,” “positioned,” “future,” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, among others, statements about the Company’s settlement and its impact on the Company’s liquidity, capital resources, or ongoing operations, the business strategy, plans, objectives, expectations and intentions, and other statements that are not historical facts. Instead, they are based only on Company management’s current beliefs, expectations and assumptions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control. Important factors that could cause actual results to differ materially from those described in forward-looking statements include, but are not limited to, the Company’s ability to maintain and expand its e-commerce business, the Company’s ability to introduce new features on its e-commerce platform that match consumer preferences, the Company’s ability to retain and grow its customer base, the impact of lawsuits, including securities class action lawsuits, stockholder derivative suits and enforcement actions by regulatory authorities, the impact of adverse economic market conditions, including from social and political factors, and the occurrence of any other event, change or other circumstances that could give rise to impacts on operating results. Therefore, investors should not rely on any of these forward-looking statements and should review the risks and uncertainties described under the caption “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended March 31, 2025, filed with the Securities and Exchange Commission (“SEC”) on June 16, 2025, and additional disclosures the Company makes in its other filings with the SEC, which are available on the SEC’s website at www.sec.gov. Forward-looking statements are made as of the date of this press release, and except as provided by law, the Company expressly disclaims any obligation or undertaking to any updated forward-looking statements.
Contacts
For investors:
Darrow Associates
Phone: (917) 886-9071
IR@outdoorholding.com
Source: Outdoor Holding Company
FAQ
What did Outdoor Holding Company (POWW) agree to pay in the DCP settlement on February 23, 2026?
How will the $4.4 million settlement affect POWW's quarterly financials and reporting?
Does the DCP settlement mean Outdoor Holding Company admitted liability (POWW)?
Will the settlement with Digital Cash Processing change POWW's operations or strategy?
When will the litigation be dismissed after POWW pays the settlement to DCP?
