AXIL Brands secures Walmart distribution, posts 5.2% revenue growth to $8.1M
AXIL Brands reported Q2 net sales of $8.1M, up 5.2% year-over-year, with adjusted EBITDA rising 13.9% to $1.2M as operating expenses fell to 57% of revenue; cash stood at $5.0M. The company secured national distribution of X30i LT hearing protection products with Walmart across ~3,700 US stores beginning early 2026.
1. Revenue Growth and Profitability Improvement
AXIL reported net sales of $8.1 million for the quarter ended November 30, 2025, representing a 5.2% year-over-year increase from $7.7 million in the prior year period. Gross profit held steady at $5.5 million, equating to a 68.1% gross margin compared to 71.1% a year earlier. Net income rose to $704,833 from $633,706, while basic and diluted earnings per share were $0.10 and $0.09, respectively, up from $0.10 and $0.08 in the prior year period. Adjusted EBITDA reached $1.2 million, a 13.9% increase over the prior year, translating to 14.2% of net sales versus 13.1% a year ago.
2. Operating Efficiency and Cost Management
AXIL reduced operating expenses to $4.6 million, or 57.0% of net sales, down from $4.8 million and 62.4% of sales in the prior year period. Sales and marketing expenses declined by 7.5%, while compensation and related taxes increased modestly as the Company invested in new product launches. The company highlighted non-recurring forgiveness of accounts payable in the prior year of approximately $0.2 million; excluding that benefit, normalized Adjusted EBITDA improved by approximately $0.4 million, underscoring operating leverage as revenue grew.
3. Retail Distribution and Product Innovation
During the quarter AXIL secured a national distribution agreement with Walmart covering an initial rollout in approximately 3,700 U.S. locations beginning early in calendar 2026. The Company also launched its GS Extreme 3.0 tactical earbuds—featuring proprietary sound-filter technology, enhanced water resistance and over 24 hours of battery life—and expanded its Reviv3 hair and skin care line through Chatters, Canada’s largest salon retailer with more than 115 locations. These initiatives aim to diversify revenue streams and accelerate sell-through with major retail partners.
4. Strong Cash Position and Balance Sheet
AXIL ended the quarter with $5.0 million in cash on hand, up from $4.8 million as of May 31, 2025. Accounts receivable grew to $2.4 million and inventory to $4.7 million, reflecting increased retail placements and product rollouts. Total current assets reached $12.6 million against current liabilities of $4.6 million, providing ample liquidity to fund ongoing retail expansion and product development efforts without the need for external financing.