Shares of AXIL Brands, Inc. AXIL have inched up 1.3% since reporting results for the first quarter of fiscal 2027. This compares with the S&P 500 index’s 0.6% return over the same time frame. Over the past month, the stock has edged down 0.2% against the S&P 500’s 1.2% advance.
For the quarter ended Aug. 31, 2026, AXIL reported net revenues of $6.1 million, down 11.2% from $6.9 million in the prior-year period. Net income increased 25.8% to $420,571 from $334,294, while earnings per share rose to 5 cents from 4 cents. Gross profit increased 8.6% to $5 million, with the gross margin expanding to 82.6% from 67.6%. Excluding a non-recurring customs-duty refund benefit, the gross margin was 73.6%.
AXIL Brands, Inc. Price, Consensus and EPS Surprise
AXIL Brands, Inc. price-consensus-eps-surprise-chart | AXIL Brands, Inc. Quote
AXIL’s Segmental & Operating Metrics
Hearing enhancement and protection remained AXIL’s largest business, generating $5.76 million in revenues compared with $6.58 million a year earlier. Within the segment, direct-to-consumer revenues were $3.85 million versus $3.88 million, while retail and wholesale revenues declined to $1.91 million from $2.70 million. Hair and skin care revenues increased to $308,338 from $276,552, while the newer marketing-services segment contributed $20,000. Approximately 94% of consolidated revenues came from U.S. customers during the quarter.
Adjusted EBITDA increased to $826,841 from $674,355, with adjusted EBITDA representing 13.6% of revenues compared with 9.8% a year earlier. The operating cash flow improved substantially to $3.8 million from a $739,000 outflow. AXIL ended Aug. 31 with $7.9 million in cash, up from $4.5 million as of May 31, 2026, and reported no outstanding borrowings.
Management Highlights XCOR II Demand
Management identified the XCOR II launch as the quarter’s principal operating development. The next-generation wireless earbud product was announced on Aug. 26 and became available on Sept. 15. Orders exceeded $2.8 million by Aug. 26 and reached more than $3.6 million by Sept. 30 across retail, distribution and direct-to-consumer channels. Management said that the fiscal first-quarter results did not yet reflect the new product’s revenue contribution and noted that the majority of the XCOR II backlog had been fulfilled by Sept. 30.
Product Transition & Refund Lift Results
The revenue decline primarily reflected the planned transition from first-generation XCOR to XCOR II and the absence of a material big-box retail order recorded in the year-ago quarter. AXIL said that first-generation XCOR orders slowed as customers prepared for the new model, while big-box order timing can cause quarter-to-quarter volatility.
Profitability benefited from $550,929 of refunded IEEPA customs duties recognized as a reduction of cost of revenues. At the same time, operating expenses increased 8.8% to $4.6 million, reflecting higher sales and marketing spending tied to XCOR II, a Reviv3-related non-cash charge, increased compensation and $459,631 of research and development expenses, for which there was no comparable prior-year amount. Income from operations nevertheless increased 6.1% to $437,027.
AXIL Projects FY27 Growth
AXIL expects fiscal 2027 net revenues and net income to increase from the fiscal 2026 reported levels, with the improvement becoming more evident beginning in the fiscal second quarter. Management cited XCOR II, broader retail and wholesale coverage, and the planned Reviv3 relaunch with additional domestic and international distributors and retailers as the principal drivers.
Other Developments
AXIL brought three strategic partners into Reviv3 ProCare Company to support the planned global relaunch of its hair and skin care business. The partners collectively received about a 25% ownership interest in exchange for services, while AXIL retained approximately 75% and continues to consolidate Reviv3. The transaction resulted in non-cash expenses of $137,511 in the quarter.
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AXIL Brands, Inc. (AXIL): Free Stock Analysis Report
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