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)
		For the Three Months Ended November 30,								For the Six Months Ended November 30,
		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
		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			$	12,869,795
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable		$	1,843,104			$	866,573
Customer deposits			668,101				67,412
Contract liabilities, current			630,924				757,355
Notes payable, current			3,488				3,574
Due to related party			147,550				-
Lease liabilities, current			203,367				212,543
Income tax liability			718,505				310,369
Other current liabilities			364,433				244,998
Total Current Liabilities			4,579,472				2,462,824
LONG TERM LIABILITIES:
Lease liabilities, long term			301,012				404,669
Note payable, long term			134,817				136,655
Contract liabilities, long term			145,234				205,939
Total Long Term Liabilities			581,063				747,263
Total Liabilities			5,160,535				3,210,087
Commitments and contingencies
STOCKHOLDERS' EQUITY:
Preferred stock, $0.0001 par value; 28,000,000 shares authorized; 24,873,500 and 27,773,500 shares issued and outstanding as of November 30, 2025 and May 31, 2025, respectively			2,487				2,777
Common stock, $0.0001 par value: 15,000,000 shares authorized; 6,802,717 and 6,657,717 shares issued and outstanding as of November 30, 2025 and May 31, 2025, respectively			681				666
Additional paid-in capital			9,316,056				8,935,547
Retained Earnings			1,759,895				720,718
Total Stockholders' Equity			11,079,119				9,659,708
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	16,239,654			$	12,869,795

AXIL BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (UNAUDITED)
		For the Three Months Ended								For the Six Months Ended
		November 30,								November 30,
		2025				2024				2025				2024
Sales, net		$	8,134,859			$	7,732,574			$	14,991,077			$	13,583,846
Cost of sales			2,598,622				2,234,527				4,819,906				3,932,151
Gross profit			5,536,237				5,498,047				10,171,171				9,651,695
OPERATING EXPENSES:
Sales and marketing			3,125,270				3,377,760				5,911,139				6,047,231
Compensation and related taxes			336,990				276,674				541,518				467,322
Professional and consulting			676,730				736,169				1,476,244				1,684,018
General and administrative			494,176				434,573				927,461				920,955
Total Operating Expenses			4,633,166				4,825,176				8,856,362				9,119,526
INCOME FROM OPERATIONS			903,071				672,871				1,314,809				532,169
OTHER INCOME (EXPENSE):
Other income			3,746				2,041				5,064				4,307
Interest income			32,485				27,340				70,064				55,971
Interest expense and other finance charges			(1,304	)			(1,296	)			(2,587	)			(1,296	)
Other income, net			34,927				28,085				72,541				58,982
INCOME BEFORE PROVISION FOR INCOME TAXES			937,998				700,956				1,387,350				591,151
Provision for income taxes			233,115				67,250				348,173				67,250
NET INCOME		$	704,883			$	633,706			$	1,039,177			$	523,901
NET INCOME PER COMMON SHARE:
Basic		$	0.10			$	0.10			$	0.16			$	0.08
Diluted		$	0.09			$	0.08			$	0.13			$	0.06
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic			6,744,444				6,450,226				6,691,326				6,303,002
Diluted			8,234,071				8,168,657				8,238,259				8,194,882

AXIL BRANDS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED NOVEMBER 30, 2025 AND 2024 (UNAUDITED)
		2025				2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net income		$	1,039,177			$	523,901
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			129,601				47,335
Provision for credit losses			37,979				27,954
Stock-based compensation			380,234				602,464
Gain on forgiveness of account payable			-				(218,699	)
Deferred income taxes			(126,095	)			109,796
Change in operating assets and liabilities:
Accounts receivable			(1,473,884	)			(962,337	)
Inventory			(2,185,492	)			729,534
Prepaid expenses and other current assets			476,966				80,524
Accounts payable			976,529				870,357
Other current liabilities			1,127,728				165,959
Contract liabilities			(187,136	)			(72,614	)
NET CASH PROVIDED BY OPERATING ACTIVITIES			195,607				1,904,174
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of intangibles			(98,530	)			(41,840	)
Purchase of property and equipment			(36,811	)			(65,783	)
NET CASH USED IN INVESTING ACTIVITIES			(135,341	)			(107,623	)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayment of note payable			(1,924	)			(3,252	)
Repayments to a related party			(3,071,300	)			(3,865,430	)
Advances from a related party			3,219,072				4,032,152
NET CASH PROVIDED BY FINANCING ACTIVITIES			145,848				163,470
NET INCREASE IN CASH			206,114				1,960,021
CASH - Beginning of period			4,769,854				3,253,876
CASH - End of period		$	4,975,968			$	5,213,897

About AXIL Brands

AXIL Brands (NYSE:AXIL) is an emerging global consumer products company. The Company is a manufacturer and marketer of premium hearing enhancement and protection products, including ear plugs, earmuffs, and ear buds, under the AXIL^® brand and premium hair and skincare products under its in-house Reviv3^® brand - selling products in the United States, Canada, the European Union, and throughout Asia.

To learn more, please visit the Company's AXIL^® website at www.axilbrands.com and its Reviv3^® website at www.reviv3.com

Forward-Looking Statements

This press release contains a number of forward-looking statements within the meaning of the federal securities laws. The use of words such as "anticipate," "believe," "expect," "continue," "will," "may," "prepare," "should," and "focus," among others, generally identify forward-looking statements. These forward-looking statements are based on currently available information, and management's beliefs, projections, and current expectations, and are subject to a number of significant risks and uncertainties, many of which are beyond management's control and may cause the Company's results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things: (i) the Company's ability to grow its net sales and operations, including developing new and improved products, diversifying and expanding its distribution and retail channels, and expanding internationally, and perform in accordance with any guidance; (ii) the Company's ability to generate sufficient revenue to support the Company's operations and to raise additional funds or obtain other forms of financing as needed on acceptable terms, or at all; (iii) potential difficulties or delays the Company may experience in implementing its cost savings and efficiency initiatives; (iv) the Company's ability to compete effectively with other hair and skincare companies and hearing enhancement and protection companies; (v) the concentration of the Company's customers, potentially increasing the negative impact to the Company by changing purchasing or selling patterns; (vi) changes in laws or regulations in the United States and/or in other major markets, such as China, in which the Company operates, including, without limitation, with respect to taxes, tariffs, trade policies or product safety, which may increase the Company's product costs and other costs of doing business, and reduce the Company's earnings; (vii) the Company's ability to engage in acquisitions, investments,  partnerships, strategic alliances or dispositions when desired; (viii) the Company's ability to successfully accelerate its supply chain transition strategy and achieve the intended benefits; and (ix) the impact of unstable market and general economic conditions on the Company's business, financial condition and stock price, including inflationary cost pressures, the possibility of an economic recession and other macroeconomic factors, geopolitical events, and uncertainty, increased tariffs and other trade restrictions and barriers, unemployment rates, decreased discretionary consumer spending, supply chain disruptions and constraints, labor shortages, ongoing economic disruption, the Ukraine-Russia conflict and conflict in the Middle East, and other downturns in the business cycle or the economy. There can be no assurance as to any of these matters, and potential investors are urged to consider these factors carefully in evaluating the forward-looking statements. Other important factors that may cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company's filings with the U.S. Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. Except as required by law, the Company does not assume any obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.

Investor Relations:

investors@goaxil.com