PSQ Holdings (NYSE:PSQH) reported second-quarter 2026 revenue growth of 108% from a year earlier, while reducing operating expenses and cash burn as the company focuses more closely on its fintech operations.
Chairman and Chief Executive Officer Dusty Wunderlich, who said he assumed the role six months ago, described the quarter as the result of a strategy to reduce costs, narrow the company’s focus and emphasize businesses that generate revenue and margin. He said first-half revenue rose 136% year over year, while operating expenses declined about 12% after normalizing for a one-time stock compensation reduction in the prior-year quarter.
EveryLife Sale and Balance Sheet
The company announced it entered a definitive agreement to sell EveryLife to FreeHold Brands for $5.5 million in cash. The transaction is expected to close by the end of September.
Wunderlich said EveryLife had been classified within discontinued operations three quarters ago and characterized the sale as the execution of an existing divestiture strategy rather than a decision made in response to current conditions. He said the cash proceeds are expected to strengthen PSQ’s balance sheet and further concentrate the organization on its core operations.
During prepared remarks, Wunderlich initially cited $11.8 million of restricted cash and cash equivalents at quarter-end. In the question-and-answer session, Senior Vice President of Investor Relations and Corporate Affairs William Kent clarified that cash, including restricted cash, totaled $8.3 million as of June 30.
Wunderlich said operating cash burn was $2.3 million during the quarter, down 52% year over year. He also said the company had drawn $7.3 million from its $10 million revolving facility as of June 30 to fund Credova consumer loan and lease originations.
Payments and Credit Growth
PSQ’s payments platform processed $172.5 million of volume in the second quarter, compared with $68.2 million in the prior-year quarter, an increase of 153%. First-half payment volume rose 259% to $374.3 million from $104.2 million.
Payments revenue increased to $3 million in the quarter from $1 million a year earlier and reached $6.6 million for the first half, compared with $1.6 million in the prior-year period.
Credova generated $14.1 million of gross merchandise volume during the quarter, up 32% from $10.7 million a year earlier. First-half credit GMV increased 32% to $29.2 million. Credit revenue rose to $4.1 million in the quarter from $2.4 million, while first-half credit revenue increased to $8.7 million from $4.9 million.
Wunderlich said the firearms market has begun to stabilize and show signs of improvement, but he attributed Credova’s growth to approval rates, new borrowers and borrower reengagement rather than market conditions. He said credit losses and delinquencies remained within management’s expectations.
Sequentially, payments GMV declined from $186.2 million in the first quarter, while credit GMV declined from $15.1 million. Wunderlich said credit demand typically moderates after the first quarter and that payments volume faced a higher comparison following agreements signed in the second half of last year.
Outlook and Operating Cash Flow Goal
Management affirmed its full-year 2026 revenue outlook of approximately $32 million and expects positive non-GAAP operating income for the full year.
The company is targeting positive operating cash flow in 2027. In response to an analyst question, Wunderlich said management expects operating cash flow to turn positive sometime in the middle of next year, potentially during the second or third quarter, rather than reporting positive operating cash flow for all of 2027.
He distinguished operating cash flow from free cash flow because Credova uses its balance sheet to fund loans and leases. Management views positive operating cash flow as evidence that the company’s unit economics have become positive, he said, while free cash flow may vary based on whether receivables are retained or sold.
Customer Strategy and Future Expansion
Wunderlich said the firearms industry remains a primary market for PSQ because of what he described as limited access to financial services. The company also sees opportunities with related businesses, certain nonprofits and companies whose leaders or positions may affect their banking relationships, he said.
Management said merchant adoption of bundled payments and credit products has been strong, with only a small number of merchants using one offering but not the other. Wunderlich said the combination can improve pricing competitiveness and simplify integration for merchants.
While the company continues to review potential opportunities in stablecoins and niche e-commerce software, Wunderlich said PSQ is currently focused on improving its core business fundamentals rather than pursuing significant additions. He said payments has built an enterprise-oriented pipeline, though larger customers can require longer integration periods.
Wunderlich also said the company has used artificial intelligence tools to support operating efficiency. He expects AI to remain an important tool for the business, while noting that the company is still assessing how consumer adoption of agentic commerce could develop, particularly in non-commodity categories such as firearms.
PSQ expects its business to continue to reflect discretionary retail spending patterns. Wunderlich said the second and third quarters have historically been slower periods, while the fourth quarter is generally the largest quarter and the first quarter is also stronger.
About PSQ (NYSE:PSQH)
PSQ Holdings, Inc, together with its subsidiaries, operates an online marketplace through advertising and eCommerce in the United States. It operates through two segments, Marketplace and Brands segments. The PSQ platform is accessible through its mobile application and website. The company also sells diapers and wipes to mothers online under the EveryLife brand name. PSQ Holdings, Inc is headquartered in West Palm Beach, Florida.
