Outdoor Holding Company (Nasdaq: POWW), the parent of the GunBroker.com online firearms marketplace, disclosed in its annual report that it has settled a lawsuit with payment processor Digital Cash Processing (DCP) for $4.4 million. The agreement resolves all claims related to a past payment processing and services contract.
The settlement was disclosed in the company's Form 10-K for the fiscal year ended March 31, 2026, filed June 22. The payment was made on or before February 27, 2026, according to an earlier 8-K filing. The case, previously disclosed as pending in the U.S. District Court for the District of Minnesota, has been dismissed with prejudice, meaning it cannot be refiled.
What the settlement covers
The lawsuit stemmed from a prior agreement between the company and DCP for payment processing services. Under the settlement, Outdoor Holding paid $4.4 million in exchange for a full and final release of all claims. Neither party admitted any liability or wrongdoing. The mutual releases do not extend to certain non-affiliate third-party contractors.
A leaner company moving forward
The settlement arrives during a period of significant transformation for Outdoor Holding. The company completed the sale of its ammunition manufacturing business to Olin Winchester, LLC in April 2025 for net proceeds of roughly $42.9 million. Following that sale, the company changed its name from AMMO, Inc. to Outdoor Holding Company and now operates exclusively as the owner of GunBroker.com.
With the ammunition segment classified as a discontinued operation, the 10-K focuses entirely on the marketplace business. GunBroker reported approximately 8.8 million registered users and averaged 4.43 million daily listings as of March 31, 2026.
Financial context
The $4.4 million settlement represents a one-time cost that the company has already absorbed. For a business that generated net proceeds of $42.9 million from its ammunition segment sale, the settlement payment is material but manageable. The resolution eliminates the distraction and ongoing legal expense of litigation, allowing management to direct its attention to platform improvements, including a recently launched AI-powered listing tool and an integration with the Master FFL dealer verification network.
Investors should note that the company remains a smaller reporting company with just 63 employees as of mid-June 2026. The concentrated nature of the business around a single marketplace platform means that legal, regulatory, or competitive pressures carry outsized weight relative to more diversified companies.