AXIL Brands Reports Third Quarter Fiscal Year 2025 Financial Results
LOS ANGELES, April 08, 2025 (GLOBE NEWSWIRE) -- AXIL Brands, Inc. ("AXIL" or the "Company") (NYSE:AXIL), an emerging global consumer products company for AXIL® hearing protection and enhancement products and Reviv3® 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
"Q325 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's timing shift to drive meaningful growth in direct-to-consumer revenue," said Jeff Toghraie, AXIL Chairman and Chief Executive Officer.
"Equally 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."
"We've 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—relocating 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's 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."
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 loss, calculated in accordance with GAAP is included in a schedule to this press release.
AXIL BRANDS, INC. AND SUBSIDIARY
CONSOLIDATED EBITDA and ADJUSTED EBITDA
FOR THE THREE AND NINE MONTHS ENDED FEBRUARY 28, 2025 AND FEBRUARY 29, 2024
(UNAUDITED)
For the Three Months Ended
For the Nine Months Ended
February 28, 2025
February 29, 2024
February 28, 2025
February 29, 2024
Net income (GAAP)
$
576,662
$
781,091
$
1,100,563
$
1,953,618
Provision (benefit) for income taxes
53,085
(827,436
)
120,335
(397,054
)
Interest income, net
(42,920
)
(51,420
)
(97,595
)
(124,454
)
Depreciation and amortization
45,666
27,614
93,001
83,634
Total EBITDA (Non-GAAP)
632,493
(70,151
)
1,216,304
1,515,744
Adjustments:
Stock-based compensation
258,053
59,099
860,517
161,314
Total Adjusted EBTIDA (Non-GAAP)
$
890,546
$
(11,052
)
$
2,076,821
$
1,677,058
Sales, net (GAAP)
$
6,922,367
$
6,469,343
$
20,506,213
$
20,997,289
Adjusted EBITDA as a percentage of Sales, net (Non-GAAP)
12.9
%
(0.2
)%
10.1
%
8.0
%
AXIL BRANDS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
February 28, 2025
May 31, 2024
(Unaudited)
ASSETS
CURRENT ASSETS:
Cash
$
4,743,470
$
3,253,876
Accounts receivable, net
801,390
509,835
Inventory, net
2,744,436
3,394,023
Prepaid expenses and other current assets
961,876
809,126
Total Current Assets
9,251,172
7,966,860
OTHER ASSETS:
Property and equipment, net
375,035
260,948
Intangible assets, net
357,793
309,104
Right of use asset
672,221
36,752
Deferred tax asset
121,791
231,587
Other assets
20,720
16,895
Goodwill
2,152,215
2,152,215
Total Other Assets
3,699,775
3,007,501
TOTAL ASSETS
$
12,950,947
$
10,974,361
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable
$
896,365
$
967,596
Customer deposits
38,586
