Axil Brands Posts Solid Fiscal Q3 Results; Sets Plan to Move Production to U.S.

Axil Brands, Inc., the manufacturer and marketer of hearing enhancement and protection products for the sporting goods and shooting sports markets under the Axil and Sig Sauer brand names, posted revenue of $6.9 million in the fiscal 2025 third quarter ended February 28, compared to $6.5 million in the prior-year fiscal Q3 period.

Gross margin was 71.7 percent of sales in the third quarter, up 20 basis points from 71.5 percent for the prior-year third quarter. Operating expenses as a percentage of sales were 63.3 percent in Q3, compared to 73.1 percent for the prior-year Q3 period.

Net income was $0.6 million, or 7 cents per diluted share, in the quarter, compared to $0.8 million, or 4 cents per diluted share, in the prior-year Q3 period.

Adjusted EBITDA was $0.9 million in Q3, as compared to an Adjusted EBITDA loss of $11,000 for the prior-year period.

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

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

“Q325 was a strong quarter for Axil as we continued to execute on our multi-channel growth strategy,” said Axil Chairman and CEO Jeff Toghraie. “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.”

Toghraie said the company has also taken decisive action to address risks tied to evolving U.S. trade policy proactively.

“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,” the CEO shared. “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.”

Image courtesy Axil Brands, Inc.