AXIL Brands, Inc. Reports Strong Fiscal Year 2025 Financial Results

Core Insights - AXIL Brands, Inc. reported solid financial results for fiscal year ended May 31, 2025, achieving a net income of $0.9 million and a 21% increase in Adjusted EBITDA year-over-year, despite global trade challenges [4][7] - The company is focusing on relocating a significant portion of its manufacturing to the United States to reduce tariff exposure and enhance operational stability [5] - A major wholesale partnership with a leading national retailer is expected to drive top-line growth starting in fiscal 2026, expanding brand visibility and market reach [6] Financial Highlights - Net sales for fiscal 2025 were $26.3 million, a decrease from $27.5 million in fiscal 2024 [7] - Gross profit margin was 71.0% in fiscal 2025, down from 73.4% in the prior year [7] - Operating expenses improved to 66.6% of net sales in fiscal 2025 from 67.9% in fiscal 2024 [7] - Adjusted EBITDA for fiscal 2025 was $2.4 million, reflecting a 21.3% increase from $2.0 million in fiscal 2024 [7][12] - Cash on hand increased to $4.8 million as of May 31, 2025, up from $3.3 million in the previous year [7] Operational Developments - The company appointed a veteran contractor to lead its hair and skin care division, aiming to accelerate brand growth [6] - AXIL launched Sharper Vision Marketing, a subsidiary to leverage internal digital marketing expertise and reduce customer acquisition costs [8] - The supply chain transition plan is on track, with advancements in domestic manufacturing to mitigate tariff pressures [8] Market Positioning - AXIL Brands is recognized in military publications, enhancing its reputation in the hearing protection market [7] - The company is positioned to scale its multi-channel distribution and product innovation to create long-term shareholder value [10]