AXIL Brands (AXIL Quick QuoteAXIL - Free Report) shares have jumped 29.7% since reporting second-quarter fiscal 2026 results on Jan. 8. The upside was driven by solid top-line growth, expanding operating income and improved profitability metrics, supported by accelerating retail momentum. Higher revenues from a large national retail order and disciplined cost control primarily backed the outperformance. Read our earnings blog: AXIL Shares Jump 15.6% as Q2 Revenues and Profitability Improve

Consumer Products Business of AXIL Brands

AXIL Brands is an emerging global consumer products company engaged in the manufacturing, marketing and sale of hearing protection and enhancement products under the AXIL brand, along with professional-quality hair and skin care products marketed under its Reviv3 brand. The company operates through two reportable segments — Hearing Enhancement and Protection, and Hair and Skin Care — and sells approximately 96% of net sales to U.S. customers with additional exposure to Canada and select international markets.

AXIL continues to expand its retail footprint alongside its direct-to-consumer platform. During the quarter, the company made notable progress in its wholesale strategy by securing large national retail partnerships, positioning the business for broader product visibility and incremental volume growth.

AXIL’s Q2 Revenues Rise

For the quarter ended Nov. 30, 2025, AXIL reported net sales of $8.1 million, up 5.2% from $7.7 million in the year-ago quarter. The rise was primarily driven by a material order from a leading national membership-based retail chain, partially offset by the timing of Thanksgiving sales events.

Gross profit totaled $5.5 million, rose modestly year over year, though the gross margin declined to 68.1% from 71.1%. The margin contraction reflected a higher mix of lower-margin wholesale and retail volumes compared with the company’s higher-margin direct-to-consumer sales.

Operating Performance Improves

Despite margin pressure, AXIL delivered a substantial improvement in the operating performance. Operating income increased 34.2% year over year to $903,071, aided by operating leverage and lower expense intensity.

Total operating expenses declined to $4.6 million from $4.8 million and fell to 57% of net sales from 62.4% in the prior-year quarter. The reduction was driven by lower sales and marketing costs tied to a shift toward retail distribution, reduced professional and consulting expenses, and lower stock-based compensation.

Net income rose to $704,883 from $633,706 in the year-ago period. On a per-share basis, basic EPS was 10 cents, flat year over year, while diluted EPS improved to 9 cents from 8 cents.

On a non-GAAP basis, the adjusted EBITDA increased 13.9% to $1.16 million, with the adjusted EBITDA margin expanding to 14.2% from 13.1% a year ago, reflecting improved cost discipline and operating efficiency.

Balance Sheet Improves

AXIL ended the quarter with cash of $5 million, up from $4.8 million as of May 31, 2025. Accounts receivable increased to $2.4 million, while inventory rose to $4.7 million, reflecting working capital investments to support growth initiatives and expanded retail channels. The operating cash flow for the first six months of fiscal 2026 totaled $0.2 million compared with $1.9 million in the prior-year period due to higher receivables and inventory builds.

Retail Momentum Remains Key Driver

The company highlighted accelerating retail momentum as a major growth catalyst. In the second quarter of fiscal 2026, AXIL announced the national distribution of its new X30i LT hearing protection product through Walmart, with an initial rollout expected across approximately 3,700 U.S. locations beginning in early 2026. The company also launched GS Extreme 3.0, the latest generation of its flagship tactical earbuds, and expanded the Reviv3 brand through a rollout with Chatters, Canada’s largest salon retailer.