AXIL Brands, Inc. Reports First Quarter Fiscal 2027 Financial Results
Axil Brands, Inc. (AXIL) filed an SEC Form 8-K — Results of Operations and Financial Condition. AXIL Brands, Inc. Reports First Quarter Fiscal 2027 Financial Results LOS ANGELES, October 6, 2026 (GLOBE NEWSWIRE) – AXIL Brands, Inc. (“AXIL,” “we,” “us,” “our,” or the “Company”) (NYSE American: AXIL), an emerging global consumer products company for AXIL® hearing protection a
How this was made
The 30-second read
Why it matters
The earnings release provides fresh data on revenue trends, margin dynamics, cash balance, and product launch progress, all of which can influence short‑term price action.
Market read
First‑time disclosure of Q1 FY2027 results for a micro‑cap; provides new pricing inputs for traders.
What to watch
The $0.55M customs duty refund boosted gross margin; future shipments of XCOR II may significantly lift second‑quarter revenue.
AXIL Brands, Inc. Reports First Quarter Fiscal 2027 Financial Results
Net revenues declined 11.2% to $6,090,383, while gross profit, operating income, net income, adjusted EBITDA and operating cash flow increased. Reported gross margin included a non-recurring $0.55 million IEEPA customs duty refund benefit, and XCOR II orders are expected to convert to revenue in the second quarter.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenues, three months ended August 31, 2026GAAP | $ 6,090,383 | – | a decrease of 11.2% |
| Cost of revenues, three months ended August 31, 2026GAAP | 1,058,654 | – | – |
| Gross profit, three months ended August 31, 2026GAAP | 5,031,729 | – | – |
| Gross margin, three months ended August 31, 2026GAAP | 82.6% of sales | – | – |
| Gross margin excluding IEEPA customs duty refunds, three months ended August 31, 2026other | approximately 73.6% | – | – |
| Sales and marketing expense, three months ended August 31, 2026GAAP | 2,837,371 | – | – |
| Compensation and related taxes, three months ended August 31, 2026GAAP | 373,599 | – | – |
| Research and development expense, three months ended August 31, 2026GAAP | 459,631 | – | – |
| General and administrative expense, three months ended August 31, 2026GAAP | 924,101 | – | – |
| Total operating expenses, three months ended August 31, 2026GAAP | 4,594,702 | – | – |
| Income from operations, three months ended August 31, 2026GAAP | 437,027 | – | – |
| Other income, net, three months ended August 31, 2026GAAP | 83,134 | – | – |
| Income before provision for income taxes, three months ended August 31, 2026GAAP | 520,161 | – | – |
| Provision for income taxes, three months ended August 31, 2026GAAP | 99,590 | – | – |
| Net income, three months ended August 31, 2026GAAP | $ 420,571 | – | – |
| Net income attributable to the stockholders of the Company, three months ended August 31, 2026GAAP | $ 421,592 | – | – |
| Basic net income per common share, three months ended August 31, 2026GAAP | $ 0.06 | – | – |
| Diluted net income per common share, three months ended August 31, 2026GAAP | $ 0.05 | – | – |
| Total EBITDA, three months ended August 31, 2026non-GAAP | 504,448 | – | – |
| Total adjusted EBITDA, three months ended August 31, 2026non-GAAP | $ 826,841 | – | – |
| Adjusted EBITDA as a percentage of revenues, net, three months ended August 31, 2026non-GAAP | 13.6 % | – | – |
| Net cash provided by (used in) operating activities, three months ended August 31, 2026GAAP | 3,762,759 | – | – |
| Net cash used in investing activities, three months ended August 31, 2026GAAP | (165,213 ) | – | – |
| Net cash (used in) provided by financing activities, three months ended August 31, 2026GAAP | (130,999 ) | – | – |
| Net increase (decrease) in cash and cash equivalents, three months ended August 31, 2026GAAP | 3,466,547 | – | – |
| Cash and cash equivalents, end of periodGAAP | $ 7,928,587 | – | – |
What drove it
- The Company attributed the revenue comparison to the planned transition from XCOR to XCOR II and a material prior-year big-box order that did not repeat in the quarter.
- Direct-to-consumer revenue in the hearing segment was down less than 1%.
- XCOR II was announced on August 26, 2026, became available on September 15, 2026, and generated orders exceeding $3.6 million through September 30, 2026.
- Initial XCOR II orders exceeded $2.8 million as of August 26, 2026 and $3.6 million as of September 30, 2026.
- First-quarter results included advertising costs of approximately $360,000 and inventory staging related to the XCOR II launch.
- The Company received $0.9 million in IEEPA customs duty refunds, including interest. Of that amount, $0.55 million was recognized as a reduction of cost of revenues, $0.32 million was recorded as a reduction of inventory, and $0.04 million was interest included in other income.
- Reviv3 strategic partners received an approximately 25% ownership interest in the aggregate in exchange for services. AXIL retained approximately 75%, and the shares were valued at $137,511 and recorded as a non-cash expense.
Concerns
- Net revenues were $ 6,090,383, compared with $ 6,856,218 in the prior-year period, a decrease of 11.2%.
- Reported gross margin included a non-recurring $0.55 million benefit from IEEPA customs duty refunds.
- The Company stated that first-quarter advertising and inventory-staging spending related to XCOR II did not benefit first-quarter revenue.
- The Company stated that conversion of XCOR II orders into revenue may be affected by order cancellations and returns.
- No IEEPA refund claims remain outstanding.
What to watch
- Conversion of XCOR II orders exceeding $3.6 million through September 30, 2026 into second-quarter revenue.
- The Company stated that shipments are underway in the second quarter of fiscal 2027 and that it had fulfilled the majority of the XCOR II order backlog by September 30, 2026.
- Whether gross margin remains near the stated approximately 73.6% underlying level after the non-recurring IEEPA customs duty refund benefit.
- Execution of the planned global Reviv3 hair and skin care brand relaunch with the new strategic partners.
- The effect of the non-repeating prior-year big-box order and the transition from first-generation XCOR to XCOR II on revenue.
Balance sheet and cash flow
- Cash and cash equivalents were $ 7,928,587 as of August 31, 2026, compared with $ 4,462,040 as of May 31, 2026.
- Accounts receivable, net were 1,326,395 as of August 31, 2026, compared with 4,748,966 as of May 31, 2026.
- Inventory, net was 4,438,940 as of August 31, 2026, compared with 4,419,628 as of May 31, 2026.
- Total current assets were 14,729,674 as of August 31, 2026, compared with 14,342,848 as of May 31, 2026.
- Total assets were $ 18,583,710 as of August 31, 2026, compared with $ 17,957,235 as of May 31, 2026.
- Total current liabilities were 4,454,273 as of August 31, 2026, compared with 4,502,533 as of May 31, 2026.
- Total liabilities were 4,696,529 as of August 31, 2026, compared with 4,813,018 as of May 31, 2026.
- Total equity was 13,887,181 as of August 31, 2026, compared with 13,144,217 as of May 31, 2026.
- The Company reported no outstanding borrowings as of August 31, 2026.
- Accounts receivable contributed 3,454,585 to the change in operating assets and liabilities during the three months ended August 31, 2026.
- Accounts payable contributed 451,176 to the change in operating assets and liabilities during the three months ended August 31, 2026.
- Purchases of intangibles were (109,880 ) and purchases of property and equipment were (55,333 ) during the three months ended August 31, 2026.
Analysis
AXIL reported first-quarter fiscal 2027 net revenues of $ 6,090,383, versus $ 6,856,218 in the prior-year period, with the release characterizing the decline as 11.2%. Management attributed the comparison to the planned transition from XCOR to XCOR II and a material prior-year big-box order that did not repeat. Direct-to-consumer revenue in the hearing segment was down less than 1%, while first-quarter revenue did not yet reflect the September 15 availability of XCOR II.
Profitability improved on a reported basis. Gross profit was 5,031,729, compared with 4,634,934, and reported gross margin was 82.6% of sales, compared with 67.6% of sales. The current-quarter margin included a non-recurring $0.55 million IEEPA customs duty refund recognized as a reduction of cost of revenues; the Company reported gross margin excluding that item as approximately 73.6%. Income from operations was 437,027 versus 411,738, net income was $ 420,571 versus $ 334,294, and total adjusted EBITDA was $ 826,841 versus $ 674,355.
The quarter included investment ahead of the XCOR II launch. The Company reported advertising costs of approximately $360,000 and inventory staging related to XCOR II, stating that neither benefited first-quarter revenue. Initial XCOR II orders exceeded $2.8 million as of August 26, 2026 and $3.6 million as of September 30, 2026. The Company stated that shipments are underway in the second quarter of fiscal 2027 and that it had fulfilled the majority of the order backlog by September 30, 2026.
Cash flow strengthened materially, with net cash provided by operating activities of 3,762,759 compared with net cash used in operating activities of (739,194 ) in the prior-year period. Cash and cash equivalents ended the period at $ 7,928,587, compared with $ 4,462,040 as of May 31, 2026, and the Company reported no outstanding borrowings. AXIL also added Reviv3 partners in exchange for an approximately 25% aggregate ownership interest, retained approximately 75% ownership, and recorded a $137,511 non-cash expense.
The release did not provide quantitative fiscal 2027 or second-quarter guidance. Management instead stated that XCOR II launch investment and orders are expected to be reflected in second-quarter revenue and beyond. The key reported swing factors are the conversion of the XCOR II order pipeline into revenue, the sustainability of gross margin without the customs refund benefit, and execution of the Reviv3 relaunch.
Management, verbatim
“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.”
Jeff Toghraie, Chairman and Chief Executive Officer
“Reported gross margin included a non-recurring customs duty refund. Underlying margin was 73.6 percent, in line with our history.”
Jeff Toghraie, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Quantitative revenue guidance
- Quantitative gross-margin guidance
- Quantitative operating-expense guidance
- Quantitative tax-rate guidance
- Quantitative adjusted EBITDA guidance
- Prior outlook for comparison
- Segment revenue by hearing, Reviv3, or marketing services
- Segment profitability
- Free cash flow
- Share repurchases
- Dividends
- Quantitative debt balance beyond the statement that there were no outstanding borrowings
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
AXIL Brands, a NYSE American listed consumer‑products company, filed its quarterly 8‑K with detailed financials and operational updates.
Ticker impact
The 8‑K reports AXIL's Q1 FY2027 results, the first public disclosure of its revenue decline, margin details and cash position.
modest downside pressure as revenue decline may weigh on the stock, offset partially by higher margin and cash cushion
Revenue fell to $6.1M from $6.9M, while gross margin rose to 73.6% (ex‑refund). Investors may view the top‑line weakness negatively despite margin improvement.
Market effects
Shows pressure on consumer‑products niche focused on hearing protection, may prompt peers to highlight margin trends.
Limited to U.S. micro‑cap segment; no broader regional effect.
Low; the company is a small cap with niche exposure.
Counterpoint
Despite revenue decline, the strong cash position and upcoming XCOR II shipments could drive a rebound, making the stock undervalued.
Key entities
- CompanyAXIL Brands, Inc.
Issuer of the 8‑K and subject of the earnings report.
- ExecutiveJeff Toghraie
Chairman and CEO who commented on the XCOR II launch.
