AXIL Brands, Inc. Reports Strong Fiscal Year 2025 Financial Results
LOS ANGELES, Aug. 21, 2025 (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 fiscal year ended May 31, 2025.
Financial Highlights for Fiscal Year Ended May 31, 2025
All comparisons are to the full year of the prior year, unless otherwise noted.
Net sales in fiscal 2025 were $26.3 million, as compared to $27.5 million in fiscal 2024
Gross profit as a percentage of sales was 71.0% for fiscal 2025, compared to 73.4% in the prior year
Operating expenses were 66.6% of net sales in fiscal 2025, an improvement from 67.9% in fiscal 2024
Net income in fiscal 2025 was $0.9 million, as compared to $2.0 million in fiscal 2024.
Adjusted EBITDA in fiscal 2025 was $2.4 million, a 21.3% increase from $2.0 million in fiscal 2024
Net cash provided by operating activities for fiscal 2025 was $1.9 million, compared to $3 thousand in fiscal 2024
Cash on hand as of May 31, 2025 was $4.8 million, up from $3.3 million as of May 31, 2024
Basic and diluted earnings per share for fiscal 2025 were approximately $0.13 and $0.10, respectively, compared to $0.57 and $0.21, respectively, in the prior year
Recent Business Highlights
Secured a significant wholesale agreement with a leading membership-based national retailer, with an initial purchase order made in the first quarter of FY2026, a major step in expanding our retail footprint and consumer reach
Appointed a veteran contractor with deep industry experience to lead our hair and skin care division, strengthening our capabilities and working to accelerate brand growth
Remained on target with our supply chain transition plan, advancing domestic manufacturing development and operational realignment to reduce tariff exposure and build long-term resilience
Incorporated new subsidiary
Featured in leading military publications including Military Times, Air Force Times, Marine Corps Times, and Navy Times, spotlighting the brand's innovation in hearing protection and further strengthening its position among tactical and professional users
"Fiscal 2025 was a pivotal year for AXIL as we continued to execute our strategic plan and delivered solid results amid a dynamic operating environment," said Jeff Toghraie, Chairman and Chief Executive Officer of AXIL Brands, Inc. "Despite global trade challenges, we achieved our third consecutive year of profitability, generating $0.9 million in net income and an 21% increase in Adjusted EBITDA year-over-year. These results reflect our disciplined approach to growth, optimizing marketing and operating expenses without compromising on innovation or customer engagement. Our core business remained resilient, evidenced by gross margins of 71% and significantly improved operating cash flow.
"To reduce tariff exposure and enhance stability in our expansion plans, we have accelerated efforts to relocate a substantial portion of our manufacturing and operations to the United States. We believe these changes will deliver significant long-term benefits.
"Equally important, we secured a major wholesale partnership with one of the nation's largest membership-based retailers, a milestone that we expect will drive meaningful top-line growth beginning in fiscal 2026. Beyond the immediate financial impact, we believe this relationship will substantially expand our national reach and elevate brand visibility at scale, a powerful endorsement of our product strength and market readiness.
"We also launched Sharper Vision Marketing, a wholly-owned subsidiary designed with the intent to turn our internal digital marketing expertise into an external revenue stream while lowering our own customer acquisition costs. At the same time, we advanced our supply chain transition strategy, hitting key milestones in our shift toward U.S.-based manufacturing, which is already helping us offset new tariff pressures and reduce reliance on overseas suppliers.
"In our Reviv3® hair and skin care segment, we added seasoned leadership in an effort to accelerate expansion. Early traction is encouraging, and we expect that this segment will become an increasingly meaningful contributor to our growth story.
"We enter fiscal 2026 with strong momentum, a solid balance sheet, and the flexibility to invest in growth without relying on outside capital," concluded Mr. Toghraie. "While we remain mindful of broader macroeconomic uncertainty, we're focused on scaling our multi-channel distribution and product innovation to drive sustainable, long-term value for shareholders."
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 loss, calculated in accordance with GAAP is included in a schedule to this press release.
AXIL BRANDS, INC. AND SUBSIDIARIESCONSOLIDATED EBITDA and ADJUSTED EBITDAFOR THE YEARS ENDED MAY 31, 2025 and MAY 31, 2024
2025
2024
Net income (GAAP)
$
854,988
$
2,003,134
Provision (benefit) for income taxes
453,828
(220,205
)
Interest income, net
(135,915
)
(177,833
)
Depreciation and amortization
148,498
130,610
Total EBITDA (Non-GAAP)
1,321,399
1,735,706
Adjustments:
Stock-based compensation
1,108,934
267,183
Total Adjusted EBITDA (Non-GAAP)
$
2,430,333
$
2,002,889
Sales, net (GAAP)
$
26,257,522
$
27,498,539
Adjusted EBITDA as a percentage of Sales, net (Non-GAAP)
9.3
%
7.3
%
AXIL BRANDS, INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS
May 31, 2025
May 31, 2024
ASSETS
CURRENT ASSETS:
Cash
$
4,769,854
$
3,253,876
Accounts receivable, net
1,003,945
509,835
Inventory, net
2,533,658
3,394,023
Due from related party
222
—
Prepaid expenses and other current assets
947,969
809,126
Total Current Assets
9,255,648
7,966,860
OTHER ASSETS:
Property and equipment, net
412,261
260,948
Intangible assets, net
403,591
309,104
Right of use asset
579,121
36,752
Deferred tax asset
46,239
231,587
Other assets
20,720
16,895
Goodwill
2,152,215
2,152,215
Total Other Assets
3,614,147
3,007,501
TOTAL ASSETS
$
12,869,795
