LOS ANGELES, Jan. 08, 2026 (GLOBE NEWSWIRE) -- AXIL Brands, Inc. ("AXIL, " "we," "us," "our," or the "Company") (NYSE American: AXIL), an emerging global consumer products company for AXIL$(R)$ hearing protection and enhancement products and Reviv3(R) hair and skin care products, today announced financial and operational results for the second quarter ended November 30, 2025 (2Q26).
Financial Highlights (Quarter Ended November 30, 2025)
-- Net sales increased to $8.1 million, compared to $7.7 million in the
prior year period, an increase of 5.2%
-- Gross profit of $5.5 million, or 68.1% of sales, compared to $5.5 million,
or 71.1% in the prior year period
-- Operating expenses declined to $4.6 million, or 57.0% of net sales
compared to $4.8 million, or 62.4% of net sales in the prior year period
-- Net income increased to $704,833, compared to $633,706 in the prior year
period
-- Adjusted EBITDA was $1.2 million, representing a 13.9% increase from $1.0
million in the prior year period
-- Cash on hand as of November 30, 2025 was $5.0 million, compared to $4.8
million as of May 31, 2025
-- Basic and diluted earnings per share for 2Q26 were approximately $0.10
and $0.09, respectively, compared to $0.10 and $0.08 in prior year period
Recent Business Highlights
-- AXIL announced national distribution of the new X30i LT with Walmart, the
world's largest mass-market retailer; initial product rollout expected
across approximately 3,700 U.S. locations beginning in early calendar
2026
-- AXIL launched GS Extreme 3.0, the next evolution of its flagship tactical
earbuds, incorporating proprietary sound-filter technology, improved
water resistance, and more than double the battery life of the prior
generation
-- Launched Reviv3(R) products through Chatters, Canada's largest salon
retailer, with over 115 locations throughout the country
"Fiscal 2026 is shaping up to be a strong year for Axil, driven by the continued execution of our strategic plan to invest in retail channel expansion while strengthening our proven e-commerce model," said Jeff Toghraie, Chairman and Chief Executive Officer of Axil. "In the quarter, we delivered solid top-line growth alongside meaningful bottom-line progress. Net sales increased year over year, operating expenses declined notably as a percentage of revenue, and key profitability metrics improved, positioning us for continued progress for the remainder of the year."
"EBITDA increased approximately $0.2 million year over year. Importantly, when excluding a non-recurring forgiveness of accounts payable of approximately $0.2 million recorded in the prior year period, normalized Adjusted EBITDA improved by approximately $0.4 million for the quarter. This improvement reflects meaningful optimization across our operating structure and demonstrates our ability to generate operating leverage as revenue grows.
Our retail momentum continues to accelerate, driven by stronger sell-through and improved product visibility with major retail partners announced in 2025. We remain focused on diversifying our revenue streams and expanding our market presence by reaching new end-users and categories. A key milestone is our recently announced national distribution agreement with Walmart, which will introduce AXIL products to thousands of retail locations nationwide starting in early 2026.
The initial rollout will showcase our next-generation in-ear hearing protection technology, featuring advanced sound control, dual-mode noise protection, and all-day comfort across a broad range of applications. While this partnership is still in its early stages and not yet generating revenue, we see it as powerful validation of both our product innovation and growing brand strength.
As we progress through the second half of fiscal 2026, we remain focused on expanding our revenue streams and strengthening and expanding key retail partnerships. We believe we can sustain profitable growth through cash generated from operations while continuing to build lasting, durable value for our shareholders. We believe all current strategic initiatives can be funded through our existing cash flow at this time," concluded Mr. Toghraie.
Use of Non-GAAP Financial Measures
The Company calculates EBITDA by taking net income calculated in accordance with accounting principles generally accepted in the United States ("GAAP"), and adjusting for income taxes, interest income or expense, and depreciation and amortization. The Company calculates adjusted EBITDA as EBITDA, further adjusted for stock-based compensation. Adjusted EBITDA is also presented as a percentage of revenue, which is calculated by dividing the non-GAAP Adjusted EBITDA for a period by revenue for the same period. Other companies may calculate EBITDA and adjusted EBITDA differently, limiting the usefulness of these measures for comparative purposes. The Company believes that these non-GAAP measures of financial results provide useful information regarding certain financial and business trends relating to the Company's financial condition and results of operations, and management considers EBITDA and adjusted EBITDA important indicators in evaluating the Company's business on a consistent basis across various periods for trend analyses. These non-GAAP financial measures exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements and are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Investors should not rely on any single financial measure to evaluate our business. A reconciliation of EBITDA and Adjusted EBITDA to the most comparable financial measure, net income, calculated in accordance with GAAP is included in a schedule to this press release.
AXIL BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED EBITDA and ADJUSTED EBITDA
FOR THE THREE AND SIX MONTHS ENDED NOVEMBER 30, 2025
AND 2024
(Unaudited)
For the Three Months Ended For the Six Months Ended
November 30, November 30,
-------------------------- ----------------------------
2025 2024 2025 2024
---------- ---------- ----------- -----------
Net income (GAAP) $ 704,883 $ 633,706 $ 1,039,177 $ 523,901
Provision for
income taxes 233,115 67,250 348,173 67,250
Interest
income, net (31,181) (26,044) (67,477) (54,675)
Depreciation
and
amortization 67,514 34,440 129,601 47,335
--------- --------- ---------- ----------
Total EBITDA
(Non-GAAP) 974,331 709,352 1,449,474 583,811
Adjustments:
Stock-based
compensation 181,022 304,600 380,234 602,464
Total Adjusted
EBITDA
(Non-GAAP) $1,155,353 $1,013,952 $ 1,829,708 $ 1,186,275
========= ========= ========== ==========
Sales, net (GAAP) $8,134,859 $7,732,574 $14,991,077 $13,583,846
Adjusted EBITDA
as a percentage
of Sales, net
(Non-GAAP) 14.2% 13.1% 12.2% 8.7%
AXIL BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
November 30, 2025 May 31, 2025
------------------- --------------
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash $ 4,975,968 $ 4,769,854
Accounts receivable, net 2,439,850 1,003,945
Inventory, net 4,719,150 2,533,658
Due from related party - 222
Prepaid expenses and other
current assets 471,003 947,969
--------------- ----------
Total Current Assets 12,605,971 9,255,648
--------------- ----------
OTHER ASSETS:
Property and equipment, net 398,582 412,261
Intangible assets, net 423,012 403,591
Right of use assets 466,820 579,121
Deferred tax asset 172,334 46,239
Other assets 20,720 20,720
Goodwill 2,152,215 2,152,215
--------------- ----------
Total Other Assets 3,633,683 3,614,147
--------------- ----------
TOTAL ASSETS $ 16,239,654 $ 12,869,795
=============== ==========
LIABILITIES AND STOCKHOLDERS'
EQUITY
CURRENT LIABILITIES:
Accounts payable $ 1,843,104 $ 866,573
Customer deposits 668,101 67,412
Contract liabilities, current 630,924 757,355
Notes payable, current 3,488 3,574
Due to related party 147,550 -
Lease liabilities, current 203,367 212,543
Income tax liability 718,505 310,369
Other current liabilities 364,433 244,998
--------------- ----------
Total Current Liabilities 4,579,472 2,462,824
--------------- ----------
LONG TERM LIABILITIES:
Lease liabilities, long term 301,012 404,669
Note payable, long term 134,817 136,655
Contract liabilities, long
term 145,234 205,939
--------------- ----------
Total Long Term Liabilities 581,063 747,263
--------------- ----------
Total Liabilities 5,160,535 3,210,087
--------------- ----------
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Preferred stock, $0.0001 par
value; 28,000,000 shares
authorized; 24,873,500 and
27,773,500 shares issued
and outstanding as of
November 30, 2025 and May
31, 2025, respectively 2,487 2,777
Common stock, $0.0001 par
value: 15,000,000 shares
authorized; 6,802,717 and
6,657,717 shares issued and
outstanding as of November
30, 2025 and May 31, 2025,
respectively 681 666
Additional paid-in capital 9,316,056 8,935,547
Retained Earnings 1,759,895 720,718
--------------- ----------
Total Stockholders' Equity 11,079,119 9,659,708
--------------- ----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 16,239,654 $ 12,869,795
=============== ==========
AXIL BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDED NOVEMBER 30, 2025
AND 2024
(UNAUDITED)
For the Three Months
Ended For the Six Months Ended
----------------------- -------------------------
November 30, November 30,
2025 2024 2025 2024
---------- ---------- ----------- -----------
Sales, net $8,134,859 $7,732,574 $14,991,077 $13,583,846
Cost of sales 2,598,622 2,234,527 4,819,906 3,932,151
--------- --------- ---------- ----------
Gross profit 5,536,237 5,498,047 10,171,171 9,651,695
--------- --------- ---------- ----------
OPERATING
EXPENSES:
Sales and
marketing 3,125,270 3,377,760 5,911,139 6,047,231
Compensation and
related taxes 336,990 276,674 541,518 467,322
Professional and
consulting 676,730 736,169 1,476,244 1,684,018
General and
administrative 494,176 434,573 927,461 920,955
--------- --------- ---------- ----------
Total Operating
Expenses 4,633,166 4,825,176 8,856,362 9,119,526
--------- --------- ---------- ----------
INCOME FROM
OPERATIONS 903,071 672,871 1,314,809 532,169
--------- --------- ---------- ----------
OTHER INCOME
(EXPENSE):
Other income 3,746 2,041 5,064 4,307
Interest income 32,485 27,340 70,064 55,971
Interest expense
and other
finance
charges (1,304) (1,296) (2,587) (1,296)
--------- --------- ---------- ----------
Other income,
net 34,927 28,085 72,541 58,982
--------- --------- ---------- ----------
INCOME BEFORE
PROVISION FOR
INCOME TAXES 937,998 700,956 1,387,350 591,151
Provision for
income taxes 233,115 67,250 348,173 67,250
--------- --------- ---------- ----------
NET INCOME $ 704,883 $ 633,706 $ 1,039,177 $ 523,901
========= ========= ========== ==========
NET INCOME PER
COMMON SHARE:
Basic $ 0.10 $ 0.10 $ 0.16 $ 0.08
========= ========= ========== ==========
Diluted $ 0.09 $ 0.08 $ 0.13 $ 0.06
========= ========= ========== ==========
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
Basic 6,744,444 6,450,226 6,691,326 6,303,002
========= ========= ========== ==========
Diluted 8,234,071 8,168,657 8,238,259 8,194,882
========= ========= ========== ==========
AXIL BRANDS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 2025 AND 2024
(UNAUDITED)
2025 2024
----------- -----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $ 1,039,177 $ 523,901
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation and amortization 129,601 47,335
Provision for credit losses 37,979 27,954
Stock-based compensation 380,234 602,464
Gain on forgiveness of account
payable - (218,699)
Deferred income taxes (126,095) 109,796
Change in operating assets and
liabilities:
Accounts receivable (1,473,884) (962,337)
Inventory (2,185,492) 729,534
Prepaid expenses and other
current assets 476,966 80,524
Accounts payable 976,529 870,357
Other current liabilities 1,127,728 165,959
Contract liabilities (187,136) (72,614)
---------- ----------
NET CASH PROVIDED BY OPERATING
ACTIVITIES 195,607 1,904,174
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of intangibles (98,530) (41,840)
Purchase of property and equipment (36,811) (65,783)
---------- ----------
NET CASH USED IN INVESTING ACTIVITIES (135,341) (107,623)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of note payable (1,924) (3,252)
Repayments to a related party (3,071,300) (3,865,430)
Advances from a related party 3,219,072 4,032,152
---------- ----------
NET CASH PROVIDED BY FINANCING
ACTIVITIES 145,848 163,470
---------- ----------
NET INCREASE IN CASH 206,114 1,960,021
CASH - Beginning of period 4,769,854 3,253,876
---------- ----------
CASH - End of period $ 4,975,968 $ 5,213,897
========== ==========
About AXIL Brands
AXIL Brands (NYSE American: AXIL) is an emerging global consumer products company. The Company is a manufacturer and marketer of premium hearing enhancement and protection products, including ear plugs, earmuffs, and ear buds, under the AXIL(R) brand and premium hair and skincare products under its in-house Reviv3(R) brand - selling products in the United States, Canada, the European Union, and throughout Asia.
To learn more, please visit the Company's AXIL(R) website at www.axilbrands.com and its Reviv3(R) website at www.reviv3.com
Forward-Looking Statements
This press release contains a number of forward-looking statements within the meaning of the federal securities laws. The use of words such as "anticipate," "believe," "expect," "continue," "will," "may," "prepare," "should," and "focus," among others, generally identify forward-looking statements. These forward-looking statements are based on currently available information, and management's beliefs, projections, and current expectations, and are subject to a number of significant risks and uncertainties, many of which are beyond management's control and may cause the Company's results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things: (i) the Company's ability to grow its net sales and operations, including developing new and improved products, diversifying and expanding its distribution and retail channels, and expanding internationally, and
(MORE TO FOLLOW) Dow Jones Newswires
January 08, 2026 08:05 ET (13:05 GMT)
Comments