Core Insights - AXIL Brands, Inc. reported a 17% year-over-year revenue growth in the first quarter of fiscal 2026, driven by a shift towards retail channels and initial shipments to a new national membership-based retail chain [3][4][6]. Financial Performance - Net sales for 1Q26 were $6.9 million, up from $5.9 million in the prior year, marking a 17.2% increase [6]. - Gross profit margin decreased to 67.6% in 1Q26 from 71.0% in the prior year [6]. - Operating expenses remained flat year-over-year at 61.6% of net sales, improving from 73.4% in the prior year [6]. - Operating income improved to $0.4 million (6.0% of revenue) in 1Q26, compared to an operating loss of $0.1 million (-2.4% of revenue) in the prior year [6]. - Net income was $0.3 million in 1Q26, a turnaround from a net loss of $0.1 million in the prior year [6]. - Adjusted EBITDA increased by 291.3% to $0.7 million in 1Q26 from $0.2 million in the prior year [6]. Business Strategy - The company has focused on diversifying its revenue channels, balancing online sales with offline retail and international distribution [5][8]. - The introduction of new products and expansion into retail distribution channels, such as Costco, is part of the strategy to enhance brand visibility and profitability [10][11]. Product Development - AXIL plans to launch several new products, including the next-generation GS Extreme 3.0, in the upcoming quarters [9]. - The company aims to strengthen its hair and skincare segment, which has been underdeveloped, by adding experienced leadership and expanding its product offerings [11]. Balance Sheet and Cash Flow - As of August 31, 2025, cash on hand was $4.1 million, down from $4.8 million as of May 31, 2025 [10]. - Inventory levels increased due to higher product supply for the wholesale segment, which is expected to normalize over time [10].

Core Insights - AXIL Brands, Inc. has launched its X30i filtered earplugs in a two-pack bundle available on Costco.com, expanding its product offerings on the Costco platform [1][2] - The X30i earplugs feature advanced technology to protect against continuous and impulse noise, making them suitable for various high-noise environments [3] Product Details - The X30i earplugs come in two colors: black and desert tan, and are designed for extreme noise environments such as concerts, air travel, and construction [2][3] - The earplugs provide up to 25dB SNR of noise reduction while allowing users to maintain situational awareness through a toggle switch to switch between modes [3] Company Overview - AXIL Brands is a global consumer products company specializing in hearing protection and enhancement products under the AXIL® brand, as well as hair and skincare products under the Reviv3® brand [5] - The company markets its products in the United States, Canada, the European Union, and Asia, indicating a broad international presence [5]

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]