LOS ANGELES, Jan. 08, 2026 (GLOBE NEWSWIRE) — AXIL Brands, Inc. (“AXIL,” “we,” “us,” “our,” or the “Company”) (NYSE:AXIL), an emerging global consumer products company for AXIL® hearing protection and enhancement products and Reviv3® 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® 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) |
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| For the Three Months Ended November 30, |
For the Six Months Ended November 30, |
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| 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 |
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| 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 | ||||||