LOS ANGELES, Aug. 18, 2026 (GLOBE NEWSWIRE) -- AXIL Brands, Inc. ("AXIL, " "we," "us," "our," or the "Company") (NYSE American: AXIL), an emerging global consumer products company for AXIL$(R)$ hearing protection and enhancement products and Reviv3(R) hair and skin care products, and marketing services for third-party brands today announced financial and operational results for the fourth fiscal quarter ended May 31, 2026 ("Q4 2026") and for the fiscal year ended May 31, 2026 ("fiscal 2026").

Financial Highlights for the Quarter Ended May 31, 2026

   -- Net revenues increased 48.9% in Q4 2026 to a record $8.6 million, 
      compared to $5.8 million in the prior year period 
 
   -- Gross profit increased 53.3% in Q4 2026 to $6.2 million, compared to $4.0 
      million in the prior year period; gross margin expanded to 72.0% from 
      70.0% 
 
   -- Income from operations in Q4 2026 was $1.4 million, compared to $46 
      thousand in the prior year period 
 
   -- Net income in Q4 2026 was $1.5 million, or $0.21 per basic share and 
      $0.18 per diluted share, compared to a loss of $0.2 million, or $0.04 
      loss per basic and diluted share in the prior year period 
 
   -- Adjusted EBITDA in Q4 2026 was $1.7 million, or 20.3% of net revenues, 
      compared to $0.4 million, or 6.1% of net revenues, in the prior year 
      period 
 
   -- Cash on hand as of May 31, 2026 was $4.5 million compared to $4.8 million 
      as of May 31, 2025, with no outstanding borrowings 

Operational Highlights: Retail Expansion and Product Development

   -- Expanded Walmart partnership to include the MX PRO and MX Passive hearing 
      protection models across approximately 1,250 store locations nationwide 
 
   -- Introduced the GSX 3.0 and XCOR Pro products to Sportsman's Warehouse 
      across approximately 70 specialty retail locations and its e-commerce 
      platform 
 
   -- Launched the MX II Series earmuffs powered by the Company's proprietary 
      SonicShieldX$(TM)$ technology, featuring advanced Bluetooth connectivity 
      and automatic noise compression, with additional variants released in May 
      2026 
 
   -- Unveiled the AXIL CRX, an in-ear hearing protection solution with modular 
      connectivity options, available beginning May 2026 
 
   -- The Company's full product line became available at U.S. Marine Corps 
      Exchange $(MCX)$ locations in the first quarter of fiscal 2027, extending 
      its reach to military personnel, their families, and authorized patrons 
      across mass, specialty, and military channels 

"The strength of our fourth quarter financial results was in-line with our expectations, and the represents execution of our growth plan, from strategic investments we have made across the business, from distribution, to product innovation and operational infrastructure," said Jeff Toghraie, AXIL Chairman and Chief Executive Officer. "We exited the year with record sales of $8.6 million and gross margins of 72% in the fourth quarter, which was at the higher end of our historical range. The net income of $1.5 million, or $0.18 per diluted share for the quarter compared to a loss in last year's same period and compared to just a marginal profit in our last quarter, brought our full year net income to $2.7 million, or $0.33 in diluted EPS, compared to $0.10 for our full year of 2025."

"The quarter also reflects what was a defining year for our retail distribution strategy. We expanded our Walmart partnership to approximately 1,250 store locations, entered Sportsman's Warehouse across approximately 70 specialty retail locations, and subsequent to fiscal year end, announced that our full product line became available at U.S. Marine Corps Exchange locations beginning in July 2026. We estimate our total store count has grown to approximately 6,000 locations compared to approximately 1,800 at the end of last fiscal year. That growth, across mass, specialty, and now military channels, reflects the broadening appeal of the AXIL brand and the strength of the relationships we have built."

"We continued to invest in the product portfolio that underpins our long-term competitive position. The launch of the MX II Series, powered by our proprietary SonicShieldX(TM) technology, and the introduction of the AXIL CRX expand our offering across form factors and price points."

"We enter fiscal 2027 with a stronger balance sheet, no outstanding borrowings, a larger retail footprint and a deeper product portfolio. We believe AXIL is still in the early stages of a multi-year growth trajectory, and we remain focused on executing the strategy that will achieve consistent and sustainable returns for our shareholders," concluded Mr. Toghraie.

Quarterly Financial Review:

Net revenues increased by $2,811,154, or 48.9%, to $8,562,463 for the three months ended May 31, 2026, compared to $5,751,309 for the prior-year period, primarily driven by sales to big box retail chains in our hearing enhancement and protection equipment segment.

Cost of revenues increased by $667,844 or 38.7% from $1,727,864 in the three months ended May 31, 2025 to $2,395,708 in the three months ended May 31, 2026. Cost of revenues as a percentage of net revenues for the three months ended May 31, 2026 was 28.0% as compared to 30.0% for the three months ended May 31, 2025. The improvement in gross margin reflects lower customs duties and the benefit of customs duty refunds received during the period, partially offset by a higher mix of sales to big box retail chains, which carry tighter margins relative to our direct-to-consumer channel.

Gross profit increased by $2,143,310 or 53.3% from $4,023,445 in the three months ended May 31, 2025 to $6,166,755 for the three months ended May 31, 2026. Gross profit as a percentage of net revenues for the three months ended May 31, 2026 was 72.0%, as compared to 70.0% for the three months ended May 31, 2025. The increase in the gross profit margin for the three months ended May 31, 2026 was driven by lower customs duties including refunds, partially offset by lower margins related to material orders with big box retail chains.

Operating expenses increased by $741,402, or 18.6%, from $3,977,358 in the three months ended May 31, 2025 to $4,718,760 in the three months ended May 31, 2026, and decreased as a percentage of net revenues from 69.2% to 55.1, reflecting improved operating leverage. Non-cash stock-based compensation included in operating expenses was $224,557 and $248,417 for three months ended May 31, 2026 and 2025, respectively.

Income from operations for the three months ended May 31, 2026, was $1,447,995 compared to $46,087 for the three months ended May 31, 2025. The increase in income from operations of $1,401,908 was primarily driven by material orders from big box retail chains, partially offset by increased operating expenses and by a forgiveness of accounts payable of approximately $220,000 in fiscal 2025 that did not recur in the quarter ended May 31, 2026.

Net income was $1,457,126 for the three months ended May 31, 2026 and net loss was $245,575, for the three months ended May 31, 2025, respectively.

Adjusted EBITDA increased by $1,385,397 or 391.9% from $353,512 for the three months ended May 31, 2025 to $1,738,909 for the three months ended May 31, 2026. Adjusted EBITDA as a percentage of revenues, net for the three months ended May 31, 2026 and 2025, was 20.3% and 6.1%, respectively. Adjusted EBITDA increased primarily by material orders from big box retail chains, partially offset by increased operating expenses and by a forgiveness of accounts payable of approximately $220,000 in fiscal 2025, that did not recur in the quarter ended May 31, 2026.

The Company paid approximately $900,000 in IEEPA as of May 31, 2026. Subsequent to year end it received approximately $910,000 from CBP in refunds of those duties, together with interest, which were not recognized in fiscal 2026 and will be recorded in fiscal 2027. That benefit will favorably affect fiscal 2027 gross margin on a basis that is not indicative of underlying operating performance.

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 income, calculated in accordance with GAAP is included in a schedule to this press release.

 
                      AXIL BRANDS, INC. AND SUBSIDIARIES 
                    CONSOLIDATED EBITDA and ADJUSTED EBITDA 
               FOR THE THREE AND TWELVE MONTHS ENDED MAY 31, 2026 
                                    AND 2025