Axil Brands, Inc., parent of the Axil hearing protection and enhancement products, reported that net sales for the fiscal year ended May 31, 2025, were $26.3 million, compared to $27.5 million in fiscal 2024.

“Fiscal 2025 was a pivotal year for Axil as we continued to execute our strategic plan and delivered solid results amid a dynamic operating environment,” said Jeff Toghraie, chairman and CEO, Axil Brands, Inc. “Despite global trade challenges, we achieved our third consecutive year of profitability, generating $0.9 million in net income and a 21 percent increase in Adjusted EBITDA year-over-year.”

Toghraie said in an earnings release that the results “reflect the company’s disciplined approach to growth, optimizing marketing and operating expenses without compromising on innovation or customer engagement.”

“Our core business remained resilient, evidenced by gross margins of 71 percent and significantly improved operating cash flow,” he added, while also noting that they were making moves to reduce the tariff impact.

“To reduce tariff exposure and enhance stability in our expansion plans, we have accelerated efforts to relocate a substantial portion of our manufacturing and operations to the United States. We believe these changes will deliver significant long-term benefits,” he announced in the release.

Profitability & Expenses Summary

  • Gross Profit as a percentage of sales was 71.0 percent for fiscal 2025, compared to 73.4 percent in the prior year.
  • Operating Expense margin was 66.6 percent of net sales in fiscal 2025, an improvement from 67.9 percent in fiscal 2024.
  • Net Income in fiscal 2025 was $0.9 million, or 10 cents per diluted share, compared to $2.0 million, or 21 cents per diluted share, in fiscal 2024.
  • Adjusted EBITDA in fiscal 2025 was $2.4 million, a 21.3 percent increase from $2.0 million in fiscal 2024.

Balance Sheet Summary
Cash-on-hand at year-end was $4.8 million, up from $3.3 million as of May 31, 2024.

Net cash provided by operating activities for fiscal 2025 was $1.9 million, compared to ~$3,000 in fiscal 2024.

Outlook
“We enter fiscal 2026 with strong momentum, a solid balance sheet, and the flexibility to invest in growth without relying on outside capital,” concluded Toghraie. “While we remain mindful of broader macroeconomic uncertainty, we’re focused on scaling our multi-channel distribution and product innovation to drive sustainable, long-term value for shareholders.”

The company announced that it has secured a “significant wholesale agreement” with a membership-based national retailer, with an initial purchase order made in the first quarter of FY2026. The company stated that the move was a “significant step in expanding its retail footprint and consumer reach.”

Additionally, the company reportedly remains on target with its supply chain transition plan, advancing domestic manufacturing development and operational realignment to reduce tariff exposure and build long-term resilience.

Image courtesy Axil Brands