| Metric | Value ($ M) | Q1 FY26 |
|---|---|---|
| Revenue | 6.09 | 11.2% |
| Total Income | 6.09 | 11.2% |
| Expenditure | 0.02 | 99.7% |
| PBT | 0.52 | 15.6% |
| Net Profit | 0.42 | 27.3% |
| OPM | 7.18% | 1.17pp |
| NPM | 6.91% | 2.03pp |
| EPS | 0.06 | 20.0% |
AXIL Brands Reports Q1 FY27 Results, Revenue Down 11.2% Amid Product Transition
07 Oct 2026 · 16h ago
Summary
AXIL Brands reported first quarter fiscal 2027 net revenues of $6.1 million, down 11.2% year-over-year, primarily due to a planned product transition and the absence of a large prior-year order. Despite the revenue decline, income from operations rose to $437,000 and net income increased to $0.4 million. The company highlighted strong initial orders for its new XCOR II product, exceeding $3.6 million, which are expected to drive revenue in the second quarter.
Key Highlights
- 1
Net revenues for the first fiscal quarter ended August 31, 2026, were $6.1 million, a decrease of 11.2% compared to the prior-year period.
- 2
Gross profit was $5.0 million, or 82.6% of sales, benefiting from a $0.55 million non-recurring customs duty refund.
- 3
Income from operations increased to $437,000 from $412,000 in the prior-year period.
- 4
Net income was $0.4 million, or $0.05 per diluted share, an improvement from $0.3 million, or $0.04 per diluted share in the prior year.
- 5
Adjusted EBITDA was $0.8 million, compared to $0.7 million in the prior-year period.
- 6
Net cash provided by operating activities was $3.8 million, a significant increase from $739,000 used in the prior-year period.
- 7
Initial orders for the next-generation XCOR II product exceeded $3.6 million as of September 30, 2026.
Management Comments
Jeff Toghraie
The principal development of the quarter was the launch of XCOR II. XCOR II was announced in August, became available on September 15, and generated orders exceeding $3.6 million through September 30 across retail, distribution, and direct-to-consumer, the strongest early demand we have seen for an AXIL product. First-quarter revenue does not yet reflect that launch. The quarter included the expected slowing of first generation XCOR, the advertising and inventory required to bring XCOR II to market, and a prior-year big-box order that did not repeat. Direct-to-consumer revenue in hearing enhancement and protection was down less than 1 percent. We expect that launch investment and those orders will be reflected in second quarter revenue and beyond. Reported gross margin included a non-recurring customs duty refund. Underlying margin was 73.6 percent, in line with our history. Those refunds have been collected, and no claims remain outstanding. We ended the quarter with $7.9 million of cash and no debt, and by September 30, 2026, we had fulfilled the majority of the XCOR II order backlog. On Reviv3, we brought in experienced partners, retained control, and did so without deploying AXIL cash. We are optimistic about fiscal 2027 and focused on building long-term value for shareholders.
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