Core Insights - AXIL Brands, Inc. reported strong financial and operational results for the third quarter ended February 28, 2025, highlighting a successful execution of its multi-channel growth strategy [3][4] - The company achieved a positive Adjusted EBITDA of $0.9 million, a significant improvement from a loss in the prior-year period, indicating a meaningful inflection point in operational performance [4][6] - AXIL is proactively addressing risks associated with evolving U.S. trade policy by accelerating its supply chain transition strategy and enhancing domestic manufacturing capabilities [4] Financial Performance - Revenue for 3Q25 was $6.9 million, compared to $6.5 million in the prior year period, reflecting a year-over-year increase [6] - Gross profit margin improved slightly to 71.7% in 3Q25 from 71.5% in the prior year period [6] - Operating expenses as a percentage of sales decreased significantly to 63.3% in 3Q25 from 73.1% in the prior year period [6] - Net income for 3Q25 was $0.6 million, down from $0.8 million in the prior year period [6] - Adjusted EBITDA for 3Q25 was $0.9 million, compared to an Adjusted EBITDA loss of $11 thousand in the prior year period [6][8] Cash Flow and Balance Sheet - Net cash provided by operating activities for the nine months ended February 28, 2025, was $1.7 million, up from $0.3 million for the same period in the prior year [6][12] - Cash as of February 28, 2025, was $4.7 million, an increase from $3.3 million as of May 31, 2024 [6][9] - Total assets increased to $12.95 million as of February 28, 2025, compared to $10.97 million as of May 31, 2024 [9][10] Operational Strategy - The company is focusing on expanding into new geographic markets and deepening retail distribution to drive growth [3][4] - AXIL is taking decisive actions to enhance long-term resilience and control over its cost structure in response to new tariffs [4]
AXIL Brands Reports Third Quarter Fiscal Year 2025 Financial Results