GrabAGun Digital Holdings (PEW) risk factors, FY2025 10-K

Business and Operational Risks

1. 01Our business depends on our vendors relationships, the availability of their products and the terms of the agreements governing those relationships, and if we lose those relationships, our product offerings would be limited and less desirable to our customers
2. 02Our sales are dependent on continued innovations in the firearms and ammunition offerings by our vendors, the competitiveness of their offerings and our ability to develop relationships with new and emerging firearms and ammunition makers
3. 03We sell products that create exposure to potential product liability, warranty liability or personal injury claims and litigation
4. 04Gun violence prevention and legislative advocacy organizations that oppose sales of firearms and ammunition could inhibit sales of our products
5. 05Substantial competition could reduce our market share and significantly harm our financial performance
6. 06Our business model relies on a network of active FFL holders to facilitate the final transfer of firearms to our customers, and the breadth and reliability of this network is a critical component of our value proposition
7. 07GrabAGun’s growth to date may not be sustainable or indicative of future performance
8. 08expand the number of consumers using our website
9. 09general administration, including increased finance, legal, compliance and accounting expenses associated with being a public company
10. 10We are exposed to inventory risks, which could result in our products becoming obsolete or no longer in demand
11. 11We may in the future make selective acquisitions and such acquisitions could disrupt our operations and may have an adverse effect on our financial results
12. 12The success of our business depends on the continuing development, maintenance and operation of our information technology systems
13. 13maintain our cost-efficient operating model while scaling our business
14. 14Breaches of data security and the failure to protect our information technology systems from cybersecurity threats could adversely impact our business
15. 15Issues relating to the use or capabilities of AI, including social and ethical issues, in our eCommerce platform or offerings may result in reputational harm and liability and increased costs
16. 16Real or perceived errors, failures or bugs in GrabAGun’s website could materially and adversely affect its operating results and growth prospects
17. 17Changes in tax rates, changes in tax treatment of companies engaged in e-commerce, or the adoption of new tax legislation may adversely impact GrabAGun’s financial results
18. 18If we lose any of our executive officers or key personnel, are unable to attract and retain the talent required for our business, our labor costs significantly increase or our approach to workforce management is ineffective, our business could be disrupted, and our financial performance could suffer
19. 19Negative publicity or media coverage about GrabAGun or persons or businesses associated with GrabAGun could adversely affect GrabAGun’s reputation and its business, results of operations and future growth prospects
20. 20A natural disaster or other adverse occurrence at our warehouse and fulfillment facility or a third-party provider location could damage our business
21. 21Increases in the cost of commercial delivery services or disruptions of those services could materially adversely impact our business
22. 22GrabAGun’s ability to implement our business plan successfully depends in part on our ability to further build brand recognition using our trademarks, service marks, proprietary products, trade secrets and other intellectual property, including our name and logos
23. 23GrabAGun’s issuance of additional capital stock in connection with financings, acquisitions, investments, our incentive plan, or otherwise, will dilute all other shareholders
24. 24GrabAGun may require additional funding to finance its operations, but adequate additional financing may not be available when it needs it, on acceptable terms, or at all
25. 25Our failure to have sufficient capital to do any of these things could harm our business operations, financial condition and results of operations
26. 26Because many of our products are used for seasonal outdoor sporting activities, our operating results may be significantly impacted by unseasonable weather conditions. Accordingly, our operating results could suffer when weather patterns do not conform to seasonal norms
27. 27Our future operating results may fluctuate significantly, which may result in volatility in the market price of our stock and could impact on our ability to operate our business effectively

Macroeconomic and Industry Risks

1. 28National and regional economic, social and political conditions may have an adverse impact on our business
2. 29The interruption of the flow of firearms and ammunition from suppliers could disrupt our supply chain
3. 30restrictions on the transfer of funds

Legal and Regulatory Risks

1. 31The sale and purchase of firearms and ammunition are subject to extensive federal, state, local and foreign governmental laws, violations of which could result in the revocation of our licenses
2. 32Failures in our FFL validation or shipment processes could lead to regulatory violations, customer dissatisfaction, and material harm to our business
3. 33We may become subject to intellectual property infringement claims against us in the ordinary course of our business because of the software, systems and processes we use to sell our products, in the form of cease-and-desist letters, licensing inquiries, lawsuits and other communications and demands
4. 34Failure to comply with complex and evolving laws and regulations applicable to our operations or failure to meet stakeholder expectations on corporate responsibility matters could adversely affect our business, results of operations or cash flows
5. 35The requirements of being a publicly reporting company have the potential to strain GrabAGun’s resources and divert its management’s attention
6. 36GrabAGun may be exposed to risk if it cannot enhance and maintain its internal controls and procedures
7. 37As disclosed under Item 9A, Controls and Procedures, management concluded that material weakness in our internal control over financial reporting existed as of December 31, 2025