By FFL Search - December 2025

The firearms industry is navigating a period of significant change as 2025 draws to a close. From regulatory shifts and market adjustments to product innovations and policy developments, FFLs and industry stakeholders face both challenges and opportunities. Here's what you need to know about the latest developments affecting the gun industry.

Historic DOJ Second Amendment Division Launched

In a landmark development, the Department of Justice has established a dedicated Second Amendment Rights Section within its Civil Rights Division. The office, which opened on December 4, 2025, represents the first time the federal government has created a department specifically tasked with investigating state and local infringements on gun rights.

Assistant Attorney General Harmeet Dhillon announced the new section with a clear message: gun rights enforcement will see significantly more federal action. The section will focus on investigating jurisdictions with excessive concealed carry permit costs, unreasonable delays in permit processing, and laws that restrict commonly-used firearms contrary to recent Supreme Court precedent.

Already, the DOJ has taken action, filing lawsuits against the Los Angeles County Sheriff's Department for permit delays exceeding 18 months and the Virgin Islands Police Department for unconstitutional permitting processes. This represents a major shift from previous administrations and signals a more proactive federal stance on protecting Second Amendment rights.

Market Conditions: Stabilization After the Surge

The firearms market is experiencing what industry analysts describe as a "normalization" period following the historic surge that began in 2020. NSSF-adjusted NICS background checks for the first five months of 2025 totaled 6,063,240, representing a 3.6% decrease from the same period in 2024.

However, this "decline" requires important context. The industry has maintained an incredible streak of more than 1 million NSSF-adjusted NICS checks per month for 70 consecutive months, starting in August 2019. Before this period, such numbers were rare. Even with the current slowdown, November 2025's figures of 1,408,230 checks represent a 27.4% increase over November 2019's pre-pandemic "boom" numbers.

What's changed is the buying motivation. Fear-based purchasing that characterized 2020-2024 has largely subsided with a Republican administration in place. Consumer decisions now hinge on fine margins—product quality, innovation, customer service, and value proposition matter more than ever.

Leadership Changes at Major Manufacturers

The industry saw significant executive transitions in 2025. In January, Ruger announced that President and CEO Chris Killoy would retire on March 1, 2025, transitioning to a short-term advisory role for incoming President and CEO Todd Kuck. Such leadership changes at major publicly-traded manufacturers often signal strategic shifts as companies adapt to evolving market conditions.

Product Trends to Watch

Several distinct trends are emerging in firearms manufacturing. Classic revivals are making a comeback, with manufacturers bringing back discontinued firearms from previous generations. Heritage's affordable Roscoe five-shot .38 Special and Colt's expanded snake gun lineup, including red-dot-ready versions, exemplify this trend. Smith & Wesson has reintroduced classic Model 10, Model 36, and Model 19 revolvers in traditional blued frame configurations with wood grips.

The industry has moved beyond "optics-ready" to "optics-included," with manufacturers partnering with red-dot sight makers to offer pistols with pre-mounted optics straight from the factory. Integral compensators are becoming standard features across product lines, reflecting consumer demand for enhanced shootability.

In the suppressor space, established firearms manufacturers are entering the market. Spanish riflemaker Bergara launched the BTi30, a 3D-printed titanium suppressor with HUB mounting, showcasing the innovation happening across product categories.

Challenges Facing FFLs

Many dealers are still working through excess inventory accumulated during the boom years. Capital management has become critical as the market demands greater efficiency. Potential tariff increases on raw materials and imported products could create additional cost pressures, affecting both manufacturer margins and consumer demand.

With inventory replenished and multiple purchasing options available, consumers have more choices than ever. Fine margins in pricing, service, and customer experience now determine whether customers complete purchases. Success in this environment requires FFLs to prioritize customer service and relationship-building above all else.

International Developments

Beretta Holding made waves in October 2025 by acquiring 7.8% of Ruger Firearms common stock, making the Italian firearms giant the second-largest shareholder of the American manufacturer. This cross-continental investment reflects the increasingly global nature of the firearms industry.

The Bottom Line for FFLs

Success in 2025's market requires adaptation. Industry consultants emphasize that customer service and relationship-building are paramount. As one dealer noted, firearms and accessories are largely discretionary purchases—if customers already have their defensive and hunting needs met, everything else is a "want," not a "need."

FFLs that prioritize customer experience, maintain competitive pricing, stay current with product innovations, and build lasting relationships with their communities are best positioned to thrive. The dramatic fear-based buying cycles may be over, but the expanded base of gun owners created during 2020-2024 represents a significant long-term opportunity for dealers who focus on service, education, and engagement.

Looking Ahead

With 70 consecutive months of million-plus NICS checks, a dedicated federal office protecting Second Amendment rights, and continued product innovation from manufacturers, the fundamentals of the firearms industry remain strong. While the market has cooled from pandemic highs, current sales levels would have been considered exceptional just six years ago.

For FFLs, the key to success lies in adapting to a market driven by value and service rather than fear and urgency. Those who embrace this shift and focus on building lasting customer relationships will find plenty of opportunity in the year ahead. Stay informed about the latest industry developments by visiting fflsearch.net regularly for news, resources, and tools to help your firearms business succeed.

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