AXIL Brands(AXIL) - 2026 Q2 - Quarterly Results

Financial Performance - Net sales increased to $8.1 million, a 5.2% increase from $7.7 million in the prior year period[5] - Gross profit was $5.5 million, representing 68.1% of sales, compared to 71.1% in the prior year period[5] - Operating expenses declined to $4.6 million, or 57.0% of net sales, down from 62.4% in the prior year period[5] - Net income rose to $704,833, compared to $633,706 in the prior year period[5] - Adjusted EBITDA increased to $1.2 million, a 13.9% increase from $1.0 million in the prior year period[5] - For the three months ended November 30, 2025, net sales increased to $8,134,859, a 5.2% increase from $7,732,574 in the same period of 2024[15] - Gross profit for the six months ended November 30, 2025, was $10,171,171, up 5.4% from $9,651,695 in 2024[15] - Operating expenses decreased to $8,856,362 for the six months ended November 30, 2025, compared to $9,119,526 in 2024, reflecting a reduction of 2.9%[15] - Net income for the six months ended November 30, 2025, was $1,039,177, representing a significant increase of 98.5% from $523,901 in 2024[15] - Basic net income per share for the six months ended November 30, 2025, was $0.16, compared to $0.08 in 2024, marking a 100% increase[15] Cash and Assets - Cash on hand as of November 30, 2025, was $5.0 million, up from $4.8 million as of May 31, 2025[5] - Total assets increased to $16.24 million as of November 30, 2025, compared to $12.87 million as of May 31, 2025[13] - Total stockholders' equity rose to $11.08 million as of November 30, 2025, compared to $9.66 million as of May 31, 2025[14] - Cash provided by operating activities for the six months ended November 30, 2025, was $195,607, a decrease of 89.7% from $1,904,174 in 2024[17] - The company reported a net increase in cash of $206,114 for the six months ended November 30, 2025, compared to $1,960,021 in 2024[17] Product Development and Expansion - AXIL announced a national distribution agreement with Walmart, with an initial rollout expected in approximately 3,700 U.S. locations starting in early 2026[5] - The launch of GS Extreme 3.0 tactical earbuds features improved technology and more than double the battery life of the previous generation[5] - AXIL Brands is focused on expanding its product offerings in hearing enhancement and protection, as well as hair and skincare products, targeting markets in the U.S., Canada, EU, and Asia[18] - The company is actively pursuing strategies for international expansion and diversifying its distribution channels[19] Risks and Challenges - Forward-looking statements indicate potential challenges in achieving growth targets due to market conditions and operational risks[19]