AXIL Brands (AXIL) Q4 2026 Financial Results Summary
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AXIL Brands, Inc. (AXIL) Q4 2026: Record Revenue and Profitability — Strong Growth Momentum
AXIL Brands, Inc. reported a remarkable fourth quarter for fiscal 2026, with net revenues increasing by $2,811,154, or 48.9%, to a record $8,562,463 compared to $5,751,309 in the prior-year period. This significant growth reflects the company's successful execution of its strategic initiatives and expansion into major retail channels.
Key Financial Metrics
- Net Revenues: $8,562,463, up $2,811,154 or +48.9% YoY
- Net Income: $1,457,126, compared to a net loss of $245,575 in Q4 2025
- Diluted EPS: $0.18, compared to a loss of $0.04 in Q4 2025
- Gross Profit: $6,166,755, up $2,143,310 or +53.3% YoY
- Gross Margin: 72.0%, compared to 70.0% in Q4 2025
- Adjusted EBITDA: $1,738,909, up $1,385,397 or +391.9% YoY
This quarter marks a significant turnaround for AXIL, transitioning from a loss in the same period last year to a profitable quarter, which is a positive indicator for shareholders. The increase in net income and EPS demonstrates effective cost management and revenue generation strategies.
Analyst View
This quarter is undoubtedly a positive outcome for shareholders. The substantial revenue growth and return to profitability signal that AXIL is effectively executing its growth strategy. The company has expanded its retail footprint significantly, now reaching approximately 6,000 locations, up from about 1,800 at the end of the previous fiscal year. This expansion, particularly into big box retail chains, has been a key driver of revenue growth.
The gross margin improvement to 72.0% indicates that AXIL is managing its costs effectively, despite the challenges posed by tighter margins in the retail segment. The company’s ability to achieve a gross profit increase of 53.3% YoY further underscores its operational efficiency.
Operational Highlights
- Retail Expansion: AXIL expanded its partnership with Walmart to approximately 1,250 locations and entered Sportsman’s Warehouse with around 70 specialty retail locations.
- Product Development: The launch of new products, including the MX II Series and AXIL CRX, has diversified the product portfolio and enhanced market competitiveness.
- Balance Sheet Strength: The company reported a stronger balance sheet with no outstanding borrowings, positioning it well for future growth.
Future Outlook
Looking ahead, investors should monitor AXIL's continued expansion into new retail channels and the performance of its new product launches. The company has indicated that it is entering fiscal 2027 with a robust growth trajectory, and the anticipated refunds from customs duties could further enhance gross margins in the upcoming quarters.
Additionally, the upcoming conference call will provide further insights into management's strategic direction and operational plans, which could be pivotal for investor sentiment moving forward.
In summary, AXIL Brands has delivered a strong quarter, showcasing its potential for sustained growth and profitability, making it an attractive prospect for investors looking for opportunities in the consumer products sector.
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three and Twelve Months Ended May 31, 2026 and 2025
Note: All amounts are in thousands.
| For the Three Months Ended | For the Year Ended | |||
|---|---|---|---|---|
| May 31, 2026 | 2025 | May 31, 2026 | 2025 | |
| Revenues, net | $ 8,562,463 | $ 5,751,309 | $ 30,827,370 | $ 26,254,000 |
| Cost of revenues | 2,395,708 | 1,727,864 | 9,461,001 | 7,610,936 |
| Gross profit | 6,166,755 | 4,023,445 | 21,366,369 | 18,643,064 |
| Operating expenses | 4,718,760 | 3,977,358 | 18,406,084 | 17,446,965 |
| Income from operations | 1,447,995 | 46,087 | 2,960,285 | 1,196,099 |
| Other income (expense) | (3,605) | (3,511) | 30,435,000 | 11,513 |
| Interest income | 31,943 | 39,615 | 134,109 | 139,449 |
| Interest expense and other | (1,435) | (1,358) | (2,561) | (3,858) |
| Other income | 36,958 | 41,825 | 162,956 | 147,400 |
| Net income before provision | 1,482,028 | 87,906 | 3,136,335 | 1,306,910 |
| for income tax | ||||
| Provision for income tax | 27,831 | 333 | 440,000 | 453,800 |
| Net income | $ 1,457,126 | ($ 245,575) | $ 2,699,349 | $ 854,988 |
| Net income per common share | ||||
| Basic | $ 0.21 | ($ 0.04) | $ 0.40 | $ 0.13 |
| Diluted | $ 0.18 | ($ 0.04) | $ 0.33 | $ 0.10 |
| Weighted-average shares | ||||
| Basic | 6,800,000 | 6,630,000 | 6,740,000 | 6,440,000 |
| Diluted | 8,290,000 | 8,270,000 | 8,250,000 | 8,210,000 |
CONSOLIDATED BALANCE SHEETS
May 31, 2026 and May 31, 2025
Note: All amounts are in thousands.
| May 31, 2026 | May 31, 2025 | |
|---|---|---|
| ASSETS | ||
| CURRENT ASSETS: | ||
| Cash and cash equivalents | $ 4,462,040 | $ 4,769,854 |
| Accounts receivable, net | 4,748,966 | 1,003,945 |
| Inventory, net | 4,419,628 | 2,533,658 |
| Due from related party | — | 222 |
| Prepaid expenses and other | 712,214 | 947,969 |
| current assets | ||
| Total Current Assets | 14,342,848 | 9,255,648 |
| OTHER ASSETS: | ||
| Property and equipment, net | 389,733 | 412,261 |
| Intangible assets, net | 389,747 | 403,591 |
| Right of use assets | 360,512 | 579,121 |
| Deferred tax asset | 301,460 | 46,239 |
| Other assets | 20,720 | 20,720 |
| Goodwill | 2,152,215 | 2,152,215 |
| Total Other Assets | 3,614,387 | 3,614,147 |
| TOTAL ASSETS | $ 17,957,235 | $ 12,869,795 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| CURRENT LIABILITIES: | ||
| Accounts payable | $ 1,989,048 | $ 866,573 |
| Contract liabilities, current | 389,333 | 707,207 |
| Note payable, current | — | 3,574 |
| Due to related party | 152,177 | — |
| Lease liabilities, current | 195,563 | 212,543 |
| Income tax liability | 688,150 | 310,369 |
| Other current liabilities | 1,088,262 | 362,558 |
| Total Current Liabilities | 4,502,533 | 2,462,824 |
| LONG TERM LIABILITIES: | ||
| Lease liabilities | 209,105 | 404,669 |
| Note payable | — | 136,655 |
| Contract liabilities | 101,380 | 205,939 |
| Total Long Term Liabilities | 310,485 | 747,263 |
