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AXIL Brands Reports Third Quarter Fiscal Year 2025 Financial Results

LOS ANGELES, April 08, 2025 (GLOBE NEWSWIRE) -- AXIL Brands, Inc. (鈥淎XIL鈥� or the 鈥淐ompany鈥�) (NYSE American: AXIL), an emerging global consumer products company for AXIL庐 hearing protection and enhancement products and Reviv3庐 hair and skin care products, announces financial and operational results for the third quarter ended February 28, 2025 (3Q25).

Financial Highlights for the Quarter Ended February 28, 2025

• Revenue in 3Q25 was $6.9 million, as compared to $6.5 million in the prior year period

• Gross profit as a percentage of sales was 71.7% in 3Q25, as compared to 71.5% for the prior year period

• Operating expenses as a percentage of sales were 63.3% in 3Q25, as compared to 73.1% for the prior year period

• Net income in 3Q25 was $0.6 million, as compared to $0.8 million in the prior year period

• Adjusted EBITDA in 3Q25 was $0.9 million, as compared Adjusted EBITDA loss of $11 thousand for the prior year period

• Net cash provided by operating activities for the nine months ended February 28, 2025 was $1.7 million, as compared to $0.3 million for the nine months ended February 29, 2024

• Cash as of February 28, 2025 was $4.7 million, as compared to $3.3 million as of May 31, 2024

• Basic and diluted earnings per share for 3Q25 were $0.09 and $0.07, respectively, compared to $0.13 and $0.04, respectively, in the prior year period
  

鈥淨325 was a strong quarter for AXIL as we continued to execute on our multi-channel growth strategy. We expanded into new geographic markets, deepened our retail distribution, and capitalized on Cyber Monday鈥檚 timing shift to drive meaningful growth in direct-to-consumer revenue,鈥� said Jeff Toghraie, AXIL Chairman and Chief Executive Officer.

鈥淓qually important, this quarter marked a meaningful inflection point in our operational performance. We delivered $0.9 million positive Adjusted EBITDA, a notable improvement from a loss in the prior-year period. We also drove a substantial reduction in operating expenses as a percentage of revenue and generated significantly higher operating cash flow. These results reflect our commitment to disciplined execution and continued progress in strengthening our core business.鈥�

鈥淲e鈥檝e also taken decisive action to proactively address risks tied to evolving U.S. trade policy. With new tariffs now in effect, we are accelerating our supply chain transition strategy鈥攔elocating key operational leadership to the U.S. and initiating plans to build out domestic manufacturing capabilities. These moves are designed not just to manage near-term disruptions, but to enhance AXIL鈥檚 long-term resilience and control over its cost structure. We believe these steps will better position the company to navigate volatility and capitalize on future growth opportunities.鈥�

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 (鈥淕AAP鈥�), 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鈥檚 financial condition and results of operations, and management considers EBITDA and adjusted EBITDA important indicators in evaluating the Company鈥檚 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鈥檚 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.

About AXIL Brands

AXIL Brands (NYSE American: AXIL) is an emerging global consumer products company. The Company is a manufacturer and marketer of premium hearing enhancement and protection products, including ear plugs, earmuffs, and ear buds, under the AXIL庐 brand and premium hair and skincare products under its in-house Reviv3庐 brand - selling products in the United States, Canada, the European Union, and throughout Asia.

To learn more, please visit the Company's AXIL庐 website at听听and its Reviv3庐 website at听.

Forward-Looking Statements
This press release contains a number of forward-looking statements within the meaning of the federal securities laws. The use of words such as 鈥渁nticipate,鈥� 鈥渂elieve,鈥� 鈥渆xpect,鈥� 鈥渃ontinue,鈥� 鈥渨ill,鈥� 鈥減repare,鈥� 鈥渟hould,鈥� and 鈥渇ocus,鈥� among others, generally identify forward-looking statements. These forward-looking statements are based on currently available information, and management鈥檚 beliefs, projections, and current expectations, and are subject to a number of significant risks and uncertainties, many of which are beyond management鈥檚 control and may cause the Company鈥檚 results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things: (i) the Company鈥檚 ability to grow its net sales and operations, including developing new and improved products, diversifying and expanding its distribution and retail channels, and expanding internationally, and perform in accordance with any guidance; (ii) the Company鈥檚 ability to generate sufficient revenue to support the Company鈥檚 operations and to raise additional funds or obtain other forms of financing as needed on acceptable terms, or at all; (iii) potential difficulties or delays the Company may experience in implementing its cost savings and efficiency initiatives; (iv) the Company鈥檚 ability to compete effectively with other hair and skincare companies and hearing enhancement and protection companies; (v) the concentration of the Company鈥檚 customers, potentially increasing the negative impact to the Company by changing purchasing or selling patterns; (vi) changes in laws or regulations in the United States and/or in other major markets, such as China, in which the Company operates, including, without limitation, with respect to taxes, tariffs, trade policies or product safety, which may increase the Company鈥檚 product costs and other costs of doing business, and reduce the Company鈥檚 earnings; (vii) the Company鈥檚 ability to engage in acquisitions, investments, partnerships, strategic alliances or dispositions when desired, including the potential divestiture of the Company鈥檚 hair and skin care business; (viii) the Company鈥檚 ability to successfully accelerate its supply chain transition strategy and achieve the intended benefits; and (ix) the impact of unstable market and general economic conditions on the Company鈥檚 business, financial condition and stock price, including inflationary cost pressures, the possibility of an economic recession and other macroeconomic factors, geopolitical events, and uncertainty, increased tariffs and other trade restrictions and barriers, decreased discretionary consumer spending, supply chain disruptions and constraints, labor shortages, ongoing economic disruption, including the effects of the Ukraine-Russia conflict and conflict in the Middle East, and other downturns in the business cycle or the economy. There can be no assurance as to any of these matters, and potential investors are urged to consider these factors carefully in evaluating the forward-looking statements. Other important factors that may cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company鈥檚 filings with the U.S. Securities and Exchange Commission. These forward-looking statements speak only as of the date hereof. Except as required by law, the Company does not assume any obligation to update or revise these forward-looking statements for any reason, even if new information becomes available in the future.

Investor Relations:
Todd McKnight
(917) 349-2175