AXIL Brands Q3 Sales Up 5.4% to $7.3M, Secures 3,700-Store Walmart Rollout
AXIL Brands reported Q3 net sales of $7.3 million, a 5.4% increase year-over-year, while gross margin narrowed to 69.1% from 71.7% and adjusted EBITDA fell to $0.5 million. The company secured new distribution agreements with Home Depot, Sportsman’s Warehouse and a 3,700-store Walmart rollout, boosting total store count to 6,000.
1. Financial Performance Q3 2026
AXIL Brands delivered net sales of $7.3 million in Q3 2026, up 5.4% from $6.9 million a year earlier, while gross profit remained at $5.0 million, yielding a 69.1% margin. Net income declined to $0.2 million, or $0.02 per share, and adjusted EBITDA fell to $0.5 million due to higher costs.
2. Margin and Expense Trends
Cost of sales rose 15.1% to $2.25 million, pushing the gross margin down from 71.7% to 69.1% as a result of higher tariffs. Operating expenses increased by $444,000 to $4.8 million, or 66.2% of sales, driven by approximately $400,000 in additional sales and marketing investments.
3. Retail Distribution Expansion
The company announced a new Home Depot online order for three high-performance products, Sportsman’s Warehouse availability at 70 national stores, and a 3,700-store rollout with Walmart starting in the first half of 2026. It also expanded its Monster Jam licensing agreement to support broader market reach.
4. Cash Position and Future Outlook
AXIL generated $0.8 million in operating cash flow over the nine months ended February 28 and held $5.5 million in cash as of quarter end, up $700,000 year-over-year. Management expects current investments in marketing and customer experience to drive long-term revenue growth and expand store count from 1,800 to 6,000.