AXIL · AXIL Brands, Inc.

AXIL Brands reported Q3 FY2026 financial results reflecting a period of strategic investment and retail expansion. Net sales increased 5.4% to $7.3 million, primarily driven by growth in the hearing enhancement and protective equipment segment, which offset a decline in the hair and skin care segment due to the absence of a significant distributor order from the prior year. Gross margin contracted 260 basis points to 69.1%, attributed to increased tariffs and customs duties. Operating expenses rose 10.1% to $4.8 million, largely due to a $400,000 increase in sales and marketing investments aimed at brand awareness and retail channel diversification. Consequently, net income declined to $0.2 million from $0.6 million in the prior year period. Management highlighted significant operational milestones, including announced distribution deals with Home Depot, Sportsman's Warehouse, and a 3,700-store rollout with Walmart. The company estimates its retail store count has expanded to approximately 6,000 stores from less than 1,800 at the end of the prior fiscal year. Looking forward, management provided Q4 FY2026 revenue guidance of $8–$10 million and full-year FY2026 revenue guidance of $30.2–$32.2 million, citing continued retail expansion as a key growth driver.