Welcome back to another episode of Gun Industry Insider, where we bring you the latest developments shaping the firearms industry. I’m your host, Ray Toofan, and today is May 16, 2025. In this episode, we dive into a proposed change to eliminate the NFA suppressor tax stamp fee, a Texas bill banning taxpayer-funded gun buybacks, and the latest financial insights from Sturm Ruger and Vista Outdoor. Let’s get into today’s episode.

First off, a significant legislative development is underway that could reshape the suppressor market. A provision in a reconciliation bill, known as Trump’s Big, Beautiful Bill, aims to eliminate the $200 tax stamp fee for Form 4 transfers, which as you may already be aware, are used when purchasing suppressors from dealers. Under the proposed change, the $200 fee would be waived, potentially making suppressors more affordable for customers. 

When the NFA was first enacted in 1934, the $200 fee, the equivalent of $4,800 today, made suppressors prohibitively expensive. But since this fee hasn’t changed in over 90 years, nowadays, the $200 tax stamp is more reasonable for consumers, although as many would agree, there shouldn’t be an NFA in the first place. Also, it’s important to note that this alteration in the bill leaves Form 1 suppressors unaffected, meaning individuals crafting their own suppressors at home will still face the $200 fee and the associated registration process.

This change could lead to increased demand for suppressors, as the reduced cost might encourage more customers to make purchases. Shop owners could see a boost in sales, while gunsmiths might experience higher demand for suppressor-related services, such as threading barrels or installing mounts. With the tax stamp fee removed, shop owners might consider expanding their inventory of suppressors and related accessories. Manufacturer reps could promote suppressor-ready firearms, emphasizing the cost savings consumers will experience. If the bill passes, the total cost of purchasing a suppressor will decrease by at least $200, making them more appealing to a broader range of customers, which will increase sales for dealers and manufacturers alike.

However, the NFA's registration requirements and background checks will still apply. While the financial barrier is lowered, the administrative process remains unchanged. The continued requirement for ATF paperwork and background checks could deter some customers, particularly those new to the suppressor market or unfamiliar with the NFA process. Shop owners and gunsmiths will need to be proactive in educating customers about the requirements and guiding them through the steps. The distinction between Form 4 and Form 1 suppressors could also create a divide in the market. While Form 4 transfers will become more affordable, Form 1 suppressors will remain subject to the $200 fee, potentially leading to a preference for pre-made suppressors over DIY kits.

Recently the approval times of form 4 transfers have decreased, especially compared to the COVID-era when it was normal for approval times to exceed 12 months. However, if this $200 tax stamp is eliminated, then we could see a surge in the approval times of form 4 transfers increase again. It’s tough to say how much they will increase, hopefully we won’t return to the approval times that stretch out longer than 12 months.

This proposed change to the NFA represents a positive first step in making suppressors more accessible. By eliminating the $200 fee for Form 4 transfers, it reduces one of the key financial hurdles for customers, potentially expanding the market. Yet, the NFA remains fully intact, preserving its regulatory framework. Many in the industry argue that suppressors are safety tools, not dangerous devices, and should be treated like other firearm accessories. For example, in Finland, using suppressors is encouraged not only for the personal hearing protection benefits, but also as a courtesy to the others around you. The retention of registration and background checks continues to be a point of contention, as it maintains an administrative burden that many view as unnecessary and seen as the equivalent of an illegal firearm registry. While this development lowers costs, it does not address the broader regulatory structure, which might limit its overall impact on the industry. The industry should continue to push forward with the passage of the Hearing Protection Act and the SHUSH Act.

Another significant legislative development, this time in Texas, could reshape the landscape of gun buyback programs across the United States. On May 14, the Texas House passed House Bill 3053, which prohibits local governments from using taxpayer funds for gun buyback initiatives. If enacted by the Senate, Texas would become the first state to implement such a ban, potentially paving the way for other states to reconsider these programs. This move highlights a growing skepticism about the value of buybacks in addressing gun-related issues.

Research consistently shows that gun buyback programs lack evidence of reducing gun crime. A 2023 study by the National Bureau of Economic Research analyzed multiple buyback events and found no measurable decrease in gun violence or crime rates. The firearms surrendered in these programs are often old or non-functional, rarely matching the profile of weapons used in criminal activities. This raises serious doubts about their effectiveness, suggesting that the resources spent might not contribute to public safety in any meaningful way.

The financial burden on taxpayers becomes even more apparent when considering how these programs are exploited. Individuals have turned in 3D-printed firearms—cheaply made and often non-functional—to profit from buybacks. In 2022, a man in Houston exchanged 62 such firearms for $3,000, while another in New York received $21,000 for 110 small 3D-printed guns. These examples demonstrate how buybacks can be manipulated, draining public funds without removing dangerous weapons from circulation. For industry professionals, this underscores a broader issue: taxpayer money is wasted on a system that can be gamed for personal gain rather than achieving tangible safety outcomes. As Texas weighs this prohibition, the debate centers on prioritizing policies that deliver results over those that merely appear proactive.

The final topic for today, recent financial statements from Sturm Ruger and Vista Outdoor provide a clear picture of the firearms industry’s current state, particularly regarding sales and consumer purchasing patterns. With summer approaching, a typically slower period, these insights help shop owners and manufacturers anticipate market trends. Sturm Ruger’s first quarter 2025 results, released on April 30, show net sales of $135.7 million, a slight 0.8% decrease from $136.8 million in the same period last year. Despite this dip, diluted earnings per share rose to 46 cents from 40 cents, reflecting improved profitability through cost management. New products contributed $15.3 million in sales, with top performers including the Wrangler, LCP, 10/22, PC Carbine, and Security-380, signaling steady demand for these models.

Vista Outdoor’s fourth quarter fiscal 2025 results, released May 10, report net sales of $650 million, down 5% from the prior year. For those that may not be aware, some of Vista’s brands include Federal, CCI, Bushnell, and Remington Ammo. Full-year sales reached $2.75 billion, a 3% decline. Stable adjusted EBITDA margins of 18% highlight effective operational strategies, with the ammunition segment performing strongly, offsetting weaker outdoor product sales. This gives us some hints that consumers are prioritizing consumables over other categories, a trend worth noting for inventory planning.

These results align with broader industry patterns. The NSSF reported the industry’s economic impact grew to $91.7 billion in 2024, up from $90.5 billion in 2023, despite a slight decline in background checks. Retail firearm unit sales fell 11.5% in Q1 2025, indicating softer consumer purchasing for firearms. However, the resilience shown by both companies suggests the industry is adapting. 

Shop owners might consider stocking popular models like Ruger’s top sellers and emphasizing ammunition, which continues to drive sales. Manufacturer reps can highlight these stable financials to promote new product lines. As summer typically brings slower sales, these results indicate a market holding steady, encouraging strategic inventory management to capitalize on ongoing consumer interest.

Wrapping up today’s episode, we covered the proposed elimination of the NFA suppressor tax stamp fee, the Texas bill to ban taxpayer-funded gun buybacks, and the latest financial results from Sturm Ruger and Vista Outdoor. These developments matter to shop owners, gunsmiths, and manufacturer reps, offering insights into industry trends and opportunities. Got thoughts or topics you’d like us to look into? Email us at insider@gunindustryinsider.com or reach out on X at @GunInsider. Stay tuned for the next episode—we’ll bring you more updates that matter to your shop or next sales call. Thanks for listening. Until next time!