{"success":true,"data":{"pressRelease":{"id":"162464","rtpr_id":"nGNXKBHSb-20261006","ticker":"AXIL","exchange":"NYSE American","all_tickers":["AXIL"],"title":"AXIL Brands, Inc. Reports First Quarter Fiscal 2027 Financial Results","author":"Globe Newswire","published_at":"2026-10-06T20:20:00.339Z","article_body":"LOS ANGELES, Oct. 06, 2026 (GLOBE NEWSWIRE) -- AXIL Brands, Inc. (“AXIL,”\n“we,” “us,” “our,” or the “Company”) (NYSE American: AXIL), an\nemerging global consumer products company for AXIL® hearing protection and\nenhancement products and Reviv3® hair and skin care products, and marketing\nservices for third-party brands today announced financial and operational\nresults for the first fiscal quarter ended August 31, 2026.\n\nFirst Quarter Financial Highlights (Period-ended August 31, 2026)\n\n(All comparisons are to the three months ended August 31, 2025 unless\notherwise stated)\n* Net revenues were $6.1 million, compared with $6.9 million in the prior-year\nperiod, a decrease of 11.2%. The comparison reflects the planned transition\nfrom XCOR to XCOR II and a material prior-year big-box order that did not\nrepeat in the quarter. Direct-to-consumer revenue in the hearing segment was\ndown less than 1%\n* Gross profit was $5.0 million, or 82.6% of sales, compared with $4.6\nmillion, or 67.6% of sales. The current-quarter margin included a\nnon-recurring $0.55 million benefit from IEEPA customs duty refunds recognized\nas a reduction of cost of revenues. Excluding that item, gross margin was\napproximately 73.6%\n* Income from operations was $437,000, compared with $412,000 in the\nprior-year period\n* Net income was $0.4 million, or $0.05 per diluted share, compared with $0.3\nmillion, or $0.04 per diluted share\n* Adjusted EBITDA was $0.8 million, compared with $0.7 million\n* Net cash provided by operating activities was $3.8 million, compared with\n$739,000 used in the prior-year period\n* Cash was $7.9 million as of August 31, 2026, compared with $4.5 million as\nof May 31, 2026, with no outstanding borrowings\nFirst Quarter Operational Update\n* On August 26, 2026, the Company announced XCOR II, the next-generation\nsuccessor to its flagship AXIL wireless earbud line, with availability\nbeginning September 15, 2026.\n* Initial XCOR II orders exceeded $2.8 million as of August 26, 2026 and $3.6\nmillion as of September 30, 2026. Shipments are underway in the second quarter\nof fiscal 2027.\n* First-quarter results included advertising costs of approximately $360,000\nand inventory staging related to XCOR II launch. That spend and those\nshipments did not benefit first-quarter revenue; the Company anticipates they\nwill convert to revenue in the second quarter.\n* The Company brought three strategic partners into Reviv3 ProCare Company\n(“Reviv3”) to lead the planned global relaunch of the Reviv3 hair and skin\ncare brand. In exchange for services, the partners received an approximately\n25% ownership interest in Reviv3 in the aggregate. AXIL retains approximately\n75% of Reviv3’s ownership interest and continues to consolidate Reviv3\nresults. The shares were valued at $137,511, which was recorded as a non-cash\nexpense in the first quarter of fiscal 2027.\n* The Company received $0.9 million in IEEPA customs duty refunds, including\ninterest, from U.S. Customs and Border Protection. Of this amount, $0.55\nmillion related to duties on products already sold and was recognized as a\nreduction of cost of revenues, $0.32 million related to products still in\ninventory and was recorded as a reduction of inventory, and $0.04 million was\ninterest included in other income. No IEEPA refund claims remain outstanding.\nManagement Commentary\n\n“The principal development of the quarter was the launch of XCOR II,” said\nJeff Toghraie, Chairman and Chief Executive Officer. “XCOR II was announced\nin August, became available on September 15, and generated orders exceeding\n$3.6 million through September 30 across retail, distribution, and\ndirect-to-consumer, the strongest early demand we have seen for an AXIL\nproduct. First-quarter revenue does not yet reflect that launch. The quarter\nincluded the expected slowing of first generation XCOR, the advertising and\ninventory required to bring XCOR II to market, and a prior-year big-box order\nthat did not repeat. Direct-to-consumer revenue in hearing enhancement and\nprotection was down less than 1 percent. We expect that launch investment and\nthose orders will be reflected in second quarter revenue and beyond.”\n\n“Reported gross margin included a non-recurring customs duty refund.\nUnderlying margin was 73.6 percent, in line with our history. Those refunds\nhave been collected, and no claims remain outstanding. We ended the quarter\nwith $7.9 million of cash and no debt, and by September 30, 2026, we had\nfulfilled the majority of the XCOR II order backlog. On Reviv3, we brought in\nexperienced partners, retained control, and did so without deploying AXIL\ncash. We are optimistic about fiscal 2027 and focused on building long-term\nvalue for shareholders.”\n\nUse of Non-GAAP Financial Measures\n\nThe Company calculates EBITDA by taking net income calculated in accordance\nwith accounting principles generally accepted in the United States\n(“GAAP”), and adjusting for income taxes, interest income or expense, and\ndepreciation and amortization. The Company calculates adjusted EBITDA as\nEBITDA, further adjusted for stock-based compensation. Adjusted EBITDA is also\npresented as a percentage of revenue, which is calculated by dividing the\nnon-GAAP Adjusted EBITDA for a period by revenue for the same period. Other\ncompanies may calculate EBITDA and adjusted EBITDA differently, limiting the\nusefulness of these measures for comparative purposes. The Company believes\nthat these non-GAAP measures of financial results provide useful information\nregarding certain financial and business trends relating to the Company’s\nfinancial condition and results of operations, and management considers EBITDA\nand adjusted EBITDA important indicators in evaluating the Company’s\nbusiness on a consistent basis across various periods for trend analyses.\nThese non-GAAP financial measures exclude significant expenses and income that\nare required by GAAP to be recorded in the Company’s financial statements\nand are subject to inherent limitations as they reflect the exercise of\njudgments by management about which expenses and income are excluded or\nincluded in determining these non-GAAP financial measures. Investors should\nnot rely on any single financial measure to evaluate our business. A\nreconciliation of EBITDA and Adjusted EBITDA to the most comparable financial\nmeasure, net income, calculated in accordance with GAAP is included in a\nschedule to this press release.\n\nAXIL BRANDS, INC. AND SUBSIDIARIES\nCONSOLIDATED EBITDA and ADJUSTED EBITDA\nFOR THE THREE MONTHS ENDED AUGUST 31, 2026 AND 2025\n\n(UNAUDITED)\n\n For the Three Months Ended \n August 31, 2026 August 31, 2025 \n Net income (GAAP) $ 420,571 $ 334,294 \n Provision for income taxes 99,590 115,058 \n Interest income, net (81,251 ) (36,296 ) \n Depreciation and amortization 65,538 62,087 \n Total EBITDA (Non-GAAP) 504,448 475,143 \n \n Adjustments: \n \n Stock-based compensation 322,393 199,212 \n \n Total adjusted EBITDA (Non-GAAP) $ 826,841 $ 674,355 \n \n Revenues, net (GAAP) $ 6,090,383 $ 6,856,218 \n \n Adjusted EBITDA as a percentage of Revenues, net (Non-GAAP) 13.6 % 9.8 % \n\n\n\nAXIL BRANDS, INC. AND SUBSIDIARIES\nCONSOLIDATED BALANCE SHEETS\n\n \n August 31, 2026 May 31, 2026 \n (Unaudited) \n ASSETS \n CURRENT ASSETS: \n Cash and cash equivalents $ 7,928,587 $ 4,462,040 \n Accounts receivable, net 1,326,395 4,748,966 \n Inventory, net 4,438,940 4,419,628 \n Due from related party 78,822 — \n Prepaid expenses and other current assets 956,930 712,214 \n \n Total Current Assets 14,729,674 14,342,848 \n \n OTHER ASSETS: \n Property and equipment, net 418,684 389,733 \n Intangible assets, net 460,470 389,747 \n Right of use assets 310,828 360,512 \n Deferred tax asset 491,119 301,460 \n Other assets 20,720 20,720 \n Goodwill 2,152,215 2,152,215 \n \n Total Other Assets 3,854,036 3,614,387 \n \n TOTAL ASSETS $ 18,583,710 $ 17,957,235 \n \n LIABILITIES AND EQUITY \n \n CURRENT LIABILITIES: \n Accounts payable $ 2,440,224 $ 1,989,048 \n Contract liabilities, current 297,724 389,333 \n Due to related party — 152,177 \n Lease liabilities, current 191,297 195,563 \n Income tax liability 958,744 688,150 \n Other current liabilities 566,284 1,088,262 \n \n Total Current Liabilities 4,454,273 4,502,533 \n \n LONG TERM LIABILITIES: \n Lease liabilities 161,179 209,105 \n Contract liabilities 81,077 101,380 \n \n Total Long Term Liabilities 242,256 310,485 \n \n Total Liabilities 4,696,529 4,813,018 \n \n Commitments and contingencies \n \n EQUITY: \n Series A Preferred Stock, $0.0001 par value; 27,773,500 shares designated; 24,873,500 and 24,873,500 shares issued and outstanding as of August 31, 2026 and May 31, 2026, respectively 2,487 2,487 \n Common stock, $0.0001 par value: 15,000,000 shares authorized; 6,822,681 and 6,822,681 shares issued and outstanding as of August 31, 2026 and May 31, 2026, respectively 682 682 \n Additional paid-in capital 9,892,683 9,720,981 \n Retained Earnings 3,841,659 3,420,067 \n Total stockholders' equity attributable to AXIL Brands, Inc. 13,737,511 13,144,217 \n Noncontrolling interests 149,670 — \n Total Equity 13,887,181 13,144,217 \n TOTAL LIABILITIES AND EQUITY $ 18,583,710 $ 17,957,235 \n\nAXIL BRANDS, INC. AND SUBSIDIARIES\nCONSOLIDATED STATEMENTS OF OPERATIONS\nFOR THE THREE MONTHS ENDED AUGUST 31, 2026 AND 2025\n\n(UNAUDITED)\n\n For the Three Months Ended August 31, \n \n 2026 2025 \n \n Revenues, net $ 6,090,383 $ 6,856,218 \n \n Cost of revenues 1,058,654 2,221,284 \n \n Gross profit 5,031,729 4,634,934 \n \n OPERATING EXPENSES: \n Sales and marketing 2,837,371 2,759,757 \n Compensation and related taxes 373,599 396,706 \n Research and development 459,631 — \n General and administrative 924,101 1,066,733 \n \n Total Operating Expenses 4,594,702 4,223,196 \n \n INCOME FROM OPERATIONS 437,027 411,738 \n \n OTHER INCOME (EXPENSE): \n Other income 1,883 1,318 \n Interest income 81,251 37,579 \n Interest expense and other finance charges — (1,283 ) \n \n Other income, net 83,134 37,614 \n \n INCOME BEFORE PROVISION FOR INCOME TAXES 520,161 449,352 \n \n Provision for income taxes 99,590 115,058 \n \n NET INCOME $ 420,571 $ 334,294 \n \n Less: Net loss of subsidiary attributable to noncontrolling interests (1,021 ) — \n \n Net income attributable to the stockholders of the Company $ 421,592 $ 334,294 \n \n NET INCOME PER COMMON SHARE: \n Basic $ 0.06 $ 0.05 \n Diluted $ 0.05 $ 0.04 \n \n WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: \n Basic 6,805,199 6,638,785 \n Diluted 8,252,165 8,243,025 \n\n  \n\nAXIL BRANDS, INC. AND SUBSIDIARIES\nCONSOLIDATED STATEMENTS OF CASH FLOWS\nFOR THE THREE MONTHS ENDED AUGUST 31, 2026 AND 2025\n\n(UNAUDITED)\n\n For the Three Months Ended \n August 31, \n 2026 2025 \n \n CASH FLOWS FROM OPERATING ACTIVITIES \n Net income $ 420,571 $ 334,294 \n Adjustments to reconcile net income to net cash provided by (used in) operating activities: \n Depreciation and amortization 65,538 62,087 \n Provision (Recovery) for credit losses (32,014 ) (158 ) \n Stock-based compensation and stock option expense 322,393 199,212 \n Deferred income taxes (189,659 ) (75,943 ) \n Change in operating assets and liabilities: \n Accounts receivable 3,454,585 (1,774,648 ) \n Inventory (19,312 ) (1,355,804 ) \n Prepaid expenses and other current assets (244,716 ) 12,290 \n Accounts payable 451,176 1,525,180 \n Other current liabilities (353,891 ) 383,246 \n Contract liabilities (111,912 ) (48,950 ) \n \n NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 3,762,759 (739,194 ) \n \n CASH FLOWS FROM INVESTING ACTIVITIES \n Purchases of intangibles (109,880 ) (86,130 ) \n Purchases of property and equipment (55,333 ) (8,367 ) \n \n NET CASH USED IN INVESTING ACTIVITIES (165,213 ) (94,497 ) \n \n CASH FLOWS FROM FINANCING ACTIVITIES \n Repayment of note payable — (1,030 ) \n Advances from a related party 56,453 1,207,693 \n Repayments to a related party (187,452 ) (1,056,202 ) \n \n NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (130,999 ) 150,461 \n \n NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3,466,547 (683,230 ) \n \n CASH AND CASH EQUIVALENTS - Beginning of period 4,462,040 4,769,854 \n \n CASH AND CASH EQUIVALENTS - End of period $ 7,928,587 $ 4,086,624 \n \n SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: \n Cash paid during the period for: \n Interest $ — $ 1,134 \n Income taxes $ 18,656 $ — \n \n\nAXIL Brands will host a conference call to discuss results and provide a\ncorporate update for investors, including a Q&A session, starting at 5:00 PM\nET today (October 6, 2026). To access the live event, dial 1-877-425-9470\n(Domestic) or 1-201-389-0878 (International), or via webcast at\nhttps://viavid.webcasts.com/starthere.jsp?ei=1777813&tp_key=7330938b30. The\ncall will be available via telephone replay for seven days following the call\nby dialing 1-844-512-2921 (Domestic) or 1-412-317-6671 (International) with\naccess code 13762995. A webcast (audio stream) replay will also be available\non demand at www.goaxil.com in the investor relations section.\n\nQuestions may be submitted in advance to investors@goaxil.com\n\nAbout AXIL Brands\n\nAXIL Brands (NYSE American: AXIL) is an emerging global consumer products\ncompany. The Company is a manufacturer and marketer of premium hearing\nenhancement and protection products, including ear plugs, earmuffs, and ear\nbuds, under the AXIL(®) brand, premium hair and skincare products under its\nin-house Reviv3(®) brand - selling products in the United States, Canada,\nthe European Union, and throughout Asia and provides marketing services to\nthird-party brands.\n\nTo learn more, please visit the Company's AXIL(®) website\nat www.axilbrands.com and its Reviv3(®) website at www.reviv3.com.  \n\nForward-Looking Statements\n\nThis press release contains a number of forward-looking statements within the\nmeaning of the federal securities laws. The use of words such as\n“anticipate,” “believe,” “expect,” “continue,” “will,”\n“may,” “prepare,” “should,” and “focus,” among others,\ngenerally identify forward-looking statements. These forward-looking\nstatements are based on currently available information, and management’s\nbeliefs, projections, and current expectations, and are subject to a number of\nsignificant risks and uncertainties, many of which are difficult to predict\nand beyond management’s control and may cause the Company’s results,\nperformance or achievements to differ materially from any future results,\nperformance or achievements expressed or implied by these forward-looking\nstatements. Factors that could cause actual results to differ materially from\nthose in the forward-looking statements include, among other things: (i) the\nCompany’s ability to grow its net revenues and operations, including\ndeveloping new and improved products, diversifying and expanding its\ndistribution and retail channels, expanding the marketing services business,\nand growing internationally; (ii) the Company’s ability to perform in\naccordance with any guidance provided by management, which may differ from the\nCompany’s actual operating results; (iii) the Company’s ability to\ngenerate sufficient revenue to support the Company’s operations and to raise\nadditional funds or obtain other forms of financing as needed on acceptable\nterms, or at all; (iv) potential difficulties or delays the Company may\nexperience in implementing its cost savings and efficiency initiatives; (v)\nthe Company’s ability to compete effectively with other companies in its\nindustries; (vi) the concentration of the Company’s customers, potentially\nincreasing the negative impact to the Company by changing purchasing or\nselling patterns; (vii) changes in laws or regulations in the United States\nand/or in other major markets, such as China, in which the Company operates,\nincluding, without limitation, with respect to taxes, tariffs, trade policies\nor product safety, which may increase the Company’s product costs and other\ncosts of doing business, and reduce the Company’s earnings; (viii) continued\nuncertainty with respect to U.S. trade policies and tariffs; (ix) the\nCompany’s ability to engage in acquisitions, investments,  partnerships,\nstrategic alliances or dispositions when desired; (x) the Company’s ability\nto successfully accelerate its supply chain transition strategy and achieve\nthe intended benefits; (xi) the impact of unstable market and general economic\nconditions on the Company’s business, financial condition and stock price,\nincluding inflationary cost pressures, the possibility of an economic\nrecession and other macroeconomic factors, geopolitical events, and\nuncertainty, increased tariffs and other trade restrictions and barriers,\nunemployment rates, decreased discretionary consumer spending, supply chain\ndisruptions and constraints, labor shortages, ongoing economic disruption, the\nUkraine-Russia conflict and conflicts in the Middle East, and other downturns\nin the business cycle or the economy; and (xii) the success of new product and\nbranding initiatives, including the XCOR II launch, including the conversion\nof orders into revenue, which may be affected by order cancellations and\nreturns, and the planned relaunch of the Reviv3 brand. There can be no\nassurance as to any of these matters, and potential investors are urged to\nconsider these factors carefully in evaluating the forward-looking statements.\nOther important factors that may cause actual results to differ materially\nfrom those expressed in the forward-looking statements are discussed in the\nCompany’s filings with the U.S. Securities and Exchange Commission. These\nforward-looking statements speak only as of the date hereof. Except as\nrequired by law, the Company does not assume any obligation to update or\nrevise these forward-looking statements for any reason, even if new\ninformation becomes available in the future.\n\nInvestor Relations:\ninvestors@goaxil.com \n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/71f0cd10-0754-4b1f-9c44-7b4c357b5f3e)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNXKBHSb-20261006","title":"AXIL Brands, Inc. Reports First Quarter Fiscal 2027 Financial Results","author":"Globe Newswire","ticker":"AXIL","created":"2026-10-06T20:20:00.339Z","tickers":["AXIL"],"exchange":"NYSE American","article_body":"LOS ANGELES, Oct. 06, 2026 (GLOBE NEWSWIRE) -- AXIL Brands, Inc. (“AXIL,”\n“we,” “us,” “our,” or the “Company”) (NYSE American: AXIL), an\nemerging global consumer products company for AXIL® hearing protection and\nenhancement products and Reviv3® hair and skin care products, and marketing\nservices for third-party brands today announced financial and operational\nresults for the first fiscal quarter ended August 31, 2026.\n\nFirst Quarter Financial Highlights (Period-ended August 31, 2026)\n\n(All comparisons are to the three months ended August 31, 2025 unless\notherwise stated)\n* Net revenues were $6.1 million, compared with $6.9 million in the prior-year\nperiod, a decrease of 11.2%. The comparison reflects the planned transition\nfrom XCOR to XCOR II and a material prior-year big-box order that did not\nrepeat in the quarter. Direct-to-consumer revenue in the hearing segment was\ndown less than 1%\n* Gross profit was $5.0 million, or 82.6% of sales, compared with $4.6\nmillion, or 67.6% of sales. The current-quarter margin included a\nnon-recurring $0.55 million benefit from IEEPA customs duty refunds recognized\nas a reduction of cost of revenues. Excluding that item, gross margin was\napproximately 73.6%\n* Income from operations was $437,000, compared with $412,000 in the\nprior-year period\n* Net income was $0.4 million, or $0.05 per diluted share, compared with $0.3\nmillion, or $0.04 per diluted share\n* Adjusted EBITDA was $0.8 million, compared with $0.7 million\n* Net cash provided by operating activities was $3.8 million, compared with\n$739,000 used in the prior-year period\n* Cash was $7.9 million as of August 31, 2026, compared with $4.5 million as\nof May 31, 2026, with no outstanding borrowings\nFirst Quarter Operational Update\n* On August 26, 2026, the Company announced XCOR II, the next-generation\nsuccessor to its flagship AXIL wireless earbud line, with availability\nbeginning September 15, 2026.\n* Initial XCOR II orders exceeded $2.8 million as of August 26, 2026 and $3.6\nmillion as of September 30, 2026. Shipments are underway in the second quarter\nof fiscal 2027.\n* First-quarter results included advertising costs of approximately $360,000\nand inventory staging related to XCOR II launch. That spend and those\nshipments did not benefit first-quarter revenue; the Company anticipates they\nwill convert to revenue in the second quarter.\n* The Company brought three strategic partners into Reviv3 ProCare Company\n(“Reviv3”) to lead the planned global relaunch of the Reviv3 hair and skin\ncare brand. In exchange for services, the partners received an approximately\n25% ownership interest in Reviv3 in the aggregate. AXIL retains approximately\n75% of Reviv3’s ownership interest and continues to consolidate Reviv3\nresults. The shares were valued at $137,511, which was recorded as a non-cash\nexpense in the first quarter of fiscal 2027.\n* The Company received $0.9 million in IEEPA customs duty refunds, including\ninterest, from U.S. Customs and Border Protection. Of this amount, $0.55\nmillion related to duties on products already sold and was recognized as a\nreduction of cost of revenues, $0.32 million related to products still in\ninventory and was recorded as a reduction of inventory, and $0.04 million was\ninterest included in other income. No IEEPA refund claims remain outstanding.\nManagement Commentary\n\n“The principal development of the quarter was the launch of XCOR II,” said\nJeff Toghraie, Chairman and Chief Executive Officer. “XCOR II was announced\nin August, became available on September 15, and generated orders exceeding\n$3.6 million through September 30 across retail, distribution, and\ndirect-to-consumer, the strongest early demand we have seen for an AXIL\nproduct. First-quarter revenue does not yet reflect that launch. The quarter\nincluded the expected slowing of first generation XCOR, the advertising and\ninventory required to bring XCOR II to market, and a prior-year big-box order\nthat did not repeat. Direct-to-consumer revenue in hearing enhancement and\nprotection was down less than 1 percent. We expect that launch investment and\nthose orders will be reflected in second quarter revenue and beyond.”\n\n“Reported gross margin included a non-recurring customs duty refund.\nUnderlying margin was 73.6 percent, in line with our history. Those refunds\nhave been collected, and no claims remain outstanding. We ended the quarter\nwith $7.9 million of cash and no debt, and by September 30, 2026, we had\nfulfilled the majority of the XCOR II order backlog. On Reviv3, we brought in\nexperienced partners, retained control, and did so without deploying AXIL\ncash. We are optimistic about fiscal 2027 and focused on building long-term\nvalue for shareholders.”\n\nUse of Non-GAAP Financial Measures\n\nThe Company calculates EBITDA by taking net income calculated in accordance\nwith accounting principles generally accepted in the United States\n(“GAAP”), and adjusting for income taxes, interest income or expense, and\ndepreciation and amortization. The Company calculates adjusted EBITDA as\nEBITDA, further adjusted for stock-based compensation. Adjusted EBITDA is also\npresented as a percentage of revenue, which is calculated by dividing the\nnon-GAAP Adjusted EBITDA for a period by revenue for the same period. Other\ncompanies may calculate EBITDA and adjusted EBITDA differently, limiting the\nusefulness of these measures for comparative purposes. The Company believes\nthat these non-GAAP measures of financial results provide useful information\nregarding certain financial and business trends relating to the Company’s\nfinancial condition and results of operations, and management considers EBITDA\nand adjusted EBITDA important indicators in evaluating the Company’s\nbusiness on a consistent basis across various periods for trend analyses.\nThese non-GAAP financial measures exclude significant expenses and income that\nare required by GAAP to be recorded in the Company’s financial statements\nand are subject to inherent limitations as they reflect the exercise of\njudgments by management about which expenses and income are excluded or\nincluded in determining these non-GAAP financial measures. Investors should\nnot rely on any single financial measure to evaluate our business. A\nreconciliation of EBITDA and Adjusted EBITDA to the most comparable financial\nmeasure, net income, calculated in accordance with GAAP is included in a\nschedule to this press release.\n\nAXIL BRANDS, INC. AND SUBSIDIARIES\nCONSOLIDATED EBITDA and ADJUSTED EBITDA\nFOR THE THREE MONTHS ENDED AUGUST 31, 2026 AND 2025\n\n(UNAUDITED)\n\n For the Three Months Ended \n August 31, 2026 August 31, 2025 \n Net income (GAAP) $ 420,571 $ 334,294 \n Provision for income taxes 99,590 115,058 \n Interest income, net (81,251 ) (36,296 ) \n Depreciation and amortization 65,538 62,087 \n Total EBITDA (Non-GAAP) 504,448 475,143 \n \n Adjustments: \n \n Stock-based compensation 322,393 199,212 \n \n Total adjusted EBITDA (Non-GAAP) $ 826,841 $ 674,355 \n \n Revenues, net (GAAP) $ 6,090,383 $ 6,856,218 \n \n Adjusted EBITDA as a percentage of Revenues, net (Non-GAAP) 13.6 % 9.8 % \n\n\n\nAXIL BRANDS, INC. AND SUBSIDIARIES\nCONSOLIDATED BALANCE SHEETS\n\n \n August 31, 2026 May 31, 2026 \n (Unaudited) \n ASSETS \n CURRENT ASSETS: \n Cash and cash equivalents $ 7,928,587 $ 4,462,040 \n Accounts receivable, net 1,326,395 4,748,966 \n Inventory, net 4,438,940 4,419,628 \n Due from related party 78,822 — \n Prepaid expenses and other current assets 956,930 712,214 \n \n Total Current Assets 14,729,674 14,342,848 \n \n OTHER ASSETS: \n Property and equipment, net 418,684 389,733 \n Intangible assets, net 460,470 389,747 \n Right of use assets 310,828 360,512 \n Deferred tax asset 491,119 301,460 \n Other assets 20,720 20,720 \n Goodwill 2,152,215 2,152,215 \n \n Total Other Assets 3,854,036 3,614,387 \n \n TOTAL ASSETS $ 18,583,710 $ 17,957,235 \n \n LIABILITIES AND EQUITY \n \n CURRENT LIABILITIES: \n Accounts payable $ 2,440,224 $ 1,989,048 \n Contract liabilities, current 297,724 389,333 \n Due to related party — 152,177 \n Lease liabilities, current 191,297 195,563 \n Income tax liability 958,744 688,150 \n Other current liabilities 566,284 1,088,262 \n \n Total Current Liabilities 4,454,273 4,502,533 \n \n LONG TERM LIABILITIES: \n Lease liabilities 161,179 209,105 \n Contract liabilities 81,077 101,380 \n \n Total Long Term Liabilities 242,256 310,485 \n \n Total Liabilities 4,696,529 4,813,018 \n \n Commitments and contingencies \n \n EQUITY: \n Series A Preferred Stock, $0.0001 par value; 27,773,500 shares designated; 24,873,500 and 24,873,500 shares issued and outstanding as of August 31, 2026 and May 31, 2026, respectively 2,487 2,487 \n Common stock, $0.0001 par value: 15,000,000 shares authorized; 6,822,681 and 6,822,681 shares issued and outstanding as of August 31, 2026 and May 31, 2026, respectively 682 682 \n Additional paid-in capital 9,892,683 9,720,981 \n Retained Earnings 3,841,659 3,420,067 \n Total stockholders' equity attributable to AXIL Brands, Inc. 13,737,511 13,144,217 \n Noncontrolling interests 149,670 — \n Total Equity 13,887,181 13,144,217 \n TOTAL LIABILITIES AND EQUITY $ 18,583,710 $ 17,957,235 \n\nAXIL BRANDS, INC. AND SUBSIDIARIES\nCONSOLIDATED STATEMENTS OF OPERATIONS\nFOR THE THREE MONTHS ENDED AUGUST 31, 2026 AND 2025\n\n(UNAUDITED)\n\n For the Three Months Ended August 31, \n \n 2026 2025 \n \n Revenues, net $ 6,090,383 $ 6,856,218 \n \n Cost of revenues 1,058,654 2,221,284 \n \n Gross profit 5,031,729 4,634,934 \n \n OPERATING EXPENSES: \n Sales and marketing 2,837,371 2,759,757 \n Compensation and related taxes 373,599 396,706 \n Research and development 459,631 — \n General and administrative 924,101 1,066,733 \n \n Total Operating Expenses 4,594,702 4,223,196 \n \n INCOME FROM OPERATIONS 437,027 411,738 \n \n OTHER INCOME (EXPENSE): \n Other income 1,883 1,318 \n Interest income 81,251 37,579 \n Interest expense and other finance charges — (1,283 ) \n \n Other income, net 83,134 37,614 \n \n INCOME BEFORE PROVISION FOR INCOME TAXES 520,161 449,352 \n \n Provision for income taxes 99,590 115,058 \n \n NET INCOME $ 420,571 $ 334,294 \n \n Less: Net loss of subsidiary attributable to noncontrolling interests (1,021 ) — \n \n Net income attributable to the stockholders of the Company $ 421,592 $ 334,294 \n \n NET INCOME PER COMMON SHARE: \n Basic $ 0.06 $ 0.05 \n Diluted $ 0.05 $ 0.04 \n \n WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: \n Basic 6,805,199 6,638,785 \n Diluted 8,252,165 8,243,025 \n\n  \n\nAXIL BRANDS, INC. AND SUBSIDIARIES\nCONSOLIDATED STATEMENTS OF CASH FLOWS\nFOR THE THREE MONTHS ENDED AUGUST 31, 2026 AND 2025\n\n(UNAUDITED)\n\n For the Three Months Ended \n August 31, \n 2026 2025 \n \n CASH FLOWS FROM OPERATING ACTIVITIES \n Net income $ 420,571 $ 334,294 \n Adjustments to reconcile net income to net cash provided by (used in) operating activities: \n Depreciation and amortization 65,538 62,087 \n Provision (Recovery) for credit losses (32,014 ) (158 ) \n Stock-based compensation and stock option expense 322,393 199,212 \n Deferred income taxes (189,659 ) (75,943 ) \n Change in operating assets and liabilities: \n Accounts receivable 3,454,585 (1,774,648 ) \n Inventory (19,312 ) (1,355,804 ) \n Prepaid expenses and other current assets (244,716 ) 12,290 \n Accounts payable 451,176 1,525,180 \n Other current liabilities (353,891 ) 383,246 \n Contract liabilities (111,912 ) (48,950 ) \n \n NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 3,762,759 (739,194 ) \n \n CASH FLOWS FROM INVESTING ACTIVITIES \n Purchases of intangibles (109,880 ) (86,130 ) \n Purchases of property and equipment (55,333 ) (8,367 ) \n \n NET CASH USED IN INVESTING ACTIVITIES (165,213 ) (94,497 ) \n \n CASH FLOWS FROM FINANCING ACTIVITIES \n Repayment of note payable — (1,030 ) \n Advances from a related party 56,453 1,207,693 \n Repayments to a related party (187,452 ) (1,056,202 ) \n \n NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (130,999 ) 150,461 \n \n NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 3,466,547 (683,230 ) \n \n CASH AND CASH EQUIVALENTS - Beginning of period 4,462,040 4,769,854 \n \n CASH AND CASH EQUIVALENTS - End of period $ 7,928,587 $ 4,086,624 \n \n SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: \n Cash paid during the period for: \n Interest $ — $ 1,134 \n Income taxes $ 18,656 $ — \n \n\nAXIL Brands will host a conference call to discuss results and provide a\ncorporate update for investors, including a Q&A session, starting at 5:00 PM\nET today (October 6, 2026). To access the live event, dial 1-877-425-9470\n(Domestic) or 1-201-389-0878 (International), or via webcast at\nhttps://viavid.webcasts.com/starthere.jsp?ei=1777813&tp_key=7330938b30. The\ncall will be available via telephone replay for seven days following the call\nby dialing 1-844-512-2921 (Domestic) or 1-412-317-6671 (International) with\naccess code 13762995. A webcast (audio stream) replay will also be available\non demand at www.goaxil.com in the investor relations section.\n\nQuestions may be submitted in advance to investors@goaxil.com\n\nAbout AXIL Brands\n\nAXIL Brands (NYSE American: AXIL) is an emerging global consumer products\ncompany. The Company is a manufacturer and marketer of premium hearing\nenhancement and protection products, including ear plugs, earmuffs, and ear\nbuds, under the AXIL(®) brand, premium hair and skincare products under its\nin-house Reviv3(®) brand - selling products in the United States, Canada,\nthe European Union, and throughout Asia and provides marketing services to\nthird-party brands.\n\nTo learn more, please visit the Company's AXIL(®) website\nat www.axilbrands.com and its Reviv3(®) website at www.reviv3.com.  \n\nForward-Looking Statements\n\nThis press release contains a number of forward-looking statements within the\nmeaning of the federal securities laws. The use of words such as\n“anticipate,” “believe,” “expect,” “continue,” “will,”\n“may,” “prepare,” “should,” and “focus,” among others,\ngenerally identify forward-looking statements. These forward-looking\nstatements are based on currently available information, and management’s\nbeliefs, projections, and current expectations, and are subject to a number of\nsignificant risks and uncertainties, many of which are difficult to predict\nand beyond management’s control and may cause the Company’s results,\nperformance or achievements to differ materially from any future results,\nperformance or achievements expressed or implied by these forward-looking\nstatements. Factors that could cause actual results to differ materially from\nthose in the forward-looking statements include, among other things: (i) the\nCompany’s ability to grow its net revenues and operations, including\ndeveloping new and improved products, diversifying and expanding its\ndistribution and retail channels, expanding the marketing services business,\nand growing internationally; (ii) the Company’s ability to perform in\naccordance with any guidance provided by management, which may differ from the\nCompany’s actual operating results; (iii) the Company’s ability to\ngenerate sufficient revenue to support the Company’s operations and to raise\nadditional funds or obtain other forms of financing as needed on acceptable\nterms, or at all; (iv) potential difficulties or delays the Company may\nexperience in implementing its cost savings and efficiency initiatives; (v)\nthe Company’s ability to compete effectively with other companies in its\nindustries; (vi) the concentration of the Company’s customers, potentially\nincreasing the negative impact to the Company by changing purchasing or\nselling patterns; (vii) changes in laws or regulations in the United States\nand/or in other major markets, such as China, in which the Company operates,\nincluding, without limitation, with respect to taxes, tariffs, trade policies\nor product safety, which may increase the Company’s product costs and other\ncosts of doing business, and reduce the Company’s earnings; (viii) continued\nuncertainty with respect to U.S. trade policies and tariffs; (ix) the\nCompany’s ability to engage in acquisitions, investments,  partnerships,\nstrategic alliances or dispositions when desired; (x) the Company’s ability\nto successfully accelerate its supply chain transition strategy and achieve\nthe intended benefits; (xi) the impact of unstable market and general economic\nconditions on the Company’s business, financial condition and stock price,\nincluding inflationary cost pressures, the possibility of an economic\nrecession and other macroeconomic factors, geopolitical events, and\nuncertainty, increased tariffs and other trade restrictions and barriers,\nunemployment rates, decreased discretionary consumer spending, supply chain\ndisruptions and constraints, labor shortages, ongoing economic disruption, the\nUkraine-Russia conflict and conflicts in the Middle East, and other downturns\nin the business cycle or the economy; and (xii) the success of new product and\nbranding initiatives, including the XCOR II launch, including the conversion\nof orders into revenue, which may be affected by order cancellations and\nreturns, and the planned relaunch of the Reviv3 brand. There can be no\nassurance as to any of these matters, and potential investors are urged to\nconsider these factors carefully in evaluating the forward-looking statements.\nOther important factors that may cause actual results to differ materially\nfrom those expressed in the forward-looking statements are discussed in the\nCompany’s filings with the U.S. Securities and Exchange Commission. These\nforward-looking statements speak only as of the date hereof. Except as\nrequired by law, the Company does not assume any obligation to update or\nrevise these forward-looking statements for any reason, even if new\ninformation becomes available in the future.\n\nInvestor Relations:\ninvestors@goaxil.com \n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/71f0cd10-0754-4b1f-9c44-7b4c357b5f3e)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-10-06T20:20:00.408426229Z","server_sent_at_ms":1791318000408},"received_at":"2026-10-06T20:20:00.577Z","source_url":null},"analysis":{"id":"150949","press_release_id":"162464","analysis_json":{"industry":{"label":"Household Durables","sector":"Consumer Discretionary"},"redFlags":["revenue down 11.2% YoY on product transition and lost big-box order","gross margin flattered by non-recurring $0.55M customs refund; underlying margin 73.6%","Reviv3 minority partners received ~25% ownership stake"],"eventType":"earnings","narrative":"AXIL Brands reported Q1 FY2027 revenue of $6.1 million, down 11.2% year-over-year, reflecting the planned XCOR-to-XCOR II transition and a non-repeating prior-year big-box order.\n\nProfitability improved despite the revenue decline: net income rose to $0.4 million ($0.05 diluted EPS), adjusted EBITDA reached $0.8 million at a 13.6% margin, and operating cash flow swung to $3.8 million, ending the quarter with $7.9 million in cash and no debt.\n\nXCOR II, launched September 15, generated over $3.6 million in orders through September 30; management says launch spend and orders will convert to Q2 revenue, and the majority of the backlog has shipped.\n\nAXIL also collected $0.9 million in IEEPA customs duty refunds and diluted Reviv3 by roughly 25% to strategic partners while retaining ~75% ownership and consolidation, with no cash deployed.","sentiment":"mixed","agentHooks":{"shouldPost":true,"suggestedAngle":"Transition-quarter revenue dip masks profit inflection and a $3.6M XCOR II order book shifting into fiscal Q2."},"keyFigures":{"eps":0.05,"revenue":6090383,"guidance":"No formal guidance; management expects XCOR II launch spend and orders to convert to revenue in fiscal Q2 2027","revenueYoy":"-11.2%","customDimensions":{"cash":7928587,"net_income":420571,"gross_margin":"82.6%","gross_profit":5031729,"adjusted_ebitda":826841,"operating_income":437027,"operating_cash_flow":3762759,"xcor2_initial_orders":"over $2.8 million as of August 26, 2026 and $3.6 million as of September 30, 2026","reviv3_stake_retained":"approximately 75%","adjusted_ebitda_margin":"13.6%","ieepa_customs_duty_refunds":"$0.9 million","underlying_gross_margin_ex_refunds":"73.6%"}},"quotedText":"generated orders exceeding $3.6 million through September 30 across retail, distribution, and direct-to-consumer, the strongest early demand we have seen for an AXIL product","namedEntities":{"people":[{"name":"Jeff Toghraie","role":"Chairman and CEO"}],"products":["XCOR","XCOR II","AXIL hearing protection and enhancement products","Reviv3 hair and skin care products"],"companies":[{"name":"AXIL Brands, Inc.","ticker":"AXIL","relationship":"filer"},{"name":"Reviv3 ProCare Company","relationship":"majority-owned subsidiary"}],"dollarAmounts":[{"amount":"$6.1 million","context":"Q1 FY2027 net revenues"},{"amount":"$5.0 million","context":"Q1 gross profit"},{"amount":"$437,000","context":"income from operations"},{"amount":"$0.4 million","context":"net income"},{"amount":"$0.8 million","context":"adjusted EBITDA"},{"amount":"$3.8 million","context":"net cash provided by operating activities"},{"amount":"$7.9 million","context":"cash at August 31, 2026"},{"amount":"$3.6 million","context":"XCOR II orders as of September 30, 2026"},{"amount":"$2.8 million","context":"XCOR II initial orders as of August 26, 2026"},{"amount":"$0.9 million","context":"IEEPA customs duty refunds received"},{"amount":"$0.55 million","context":"non-recurring IEEPA refund benefit to gross margin"},{"amount":"$137,511","context":"non-cash expense for ~25% Reviv3 ownership granted to strategic partners"}]},"materialImpact":{"score":3,"reasoning":"Revenue declined 11.2% YoY to $6.1M due to the XCOR-to-XCOR II transition and a non-repeating big-box order, but net income, EBITDA, and operating cash flow all improved and XCOR II orders exceeded $3.6M by September 30. A transition quarter with strong forward indicators but a headline revenue miss."},"tickerRelevance":{"others":[],"primary":"AXIL"},"globalImportance":22,"audienceRelevance":18,"eventTypeSecondary":["product_launch"],"importanceComponents":{"tickerTier":"micro-cap","eventGravity":"routine earnings with product launch catalyst","revenueTrend":"declining headline, improving profitability"}},"event_type":"earnings","event_type_secondary":["product_launch"],"sentiment":"mixed","material_impact_score":3,"narrative":"AXIL Brands reported Q1 FY2027 revenue of $6.1 million, down 11.2% year-over-year, reflecting the planned XCOR-to-XCOR II transition and a non-repeating prior-year big-box order.\n\nProfitability improved despite the revenue decline: net income rose to $0.4 million ($0.05 diluted EPS), adjusted EBITDA reached $0.8 million at a 13.6% margin, and operating cash flow swung to $3.8 million, ending the quarter with $7.9 million in cash and no debt.\n\nXCOR II, launched September 15, generated over $3.6 million in orders through September 30; management says launch spend and orders will convert to Q2 revenue, and the majority of the backlog has shipped.\n\nAXIL also collected $0.9 million in IEEPA customs duty refunds and diluted Reviv3 by roughly 25% to strategic partners while retaining ~75% ownership and consolidation, with no cash deployed.","key_figures":{"eps":0.05,"revenue":6090383,"guidance":"No formal guidance; management expects XCOR II launch spend and orders to convert to revenue in fiscal Q2 2027","revenueYoy":"-11.2%","customDimensions":{"cash":7928587,"net_income":420571,"gross_margin":"82.6%","gross_profit":5031729,"adjusted_ebitda":826841,"operating_income":437027,"operating_cash_flow":3762759,"xcor2_initial_orders":"over $2.8 million as of August 26, 2026 and $3.6 million as of September 30, 2026","reviv3_stake_retained":"approximately 75%","adjusted_ebitda_margin":"13.6%","ieepa_customs_duty_refunds":"$0.9 million","underlying_gross_margin_ex_refunds":"73.6%"}},"named_entities":{"people":[{"name":"Jeff Toghraie","role":"Chairman and CEO"}],"products":["XCOR","XCOR II","AXIL hearing protection and enhancement products","Reviv3 hair and skin care products"],"companies":[{"name":"AXIL Brands, Inc.","ticker":"AXIL","relationship":"filer"},{"name":"Reviv3 ProCare Company","relationship":"majority-owned subsidiary"}],"dollarAmounts":[{"amount":"$6.1 million","context":"Q1 FY2027 net revenues"},{"amount":"$5.0 million","context":"Q1 gross profit"},{"amount":"$437,000","context":"income from operations"},{"amount":"$0.4 million","context":"net income"},{"amount":"$0.8 million","context":"adjusted EBITDA"},{"amount":"$3.8 million","context":"net cash provided by operating activities"},{"amount":"$7.9 million","context":"cash at August 31, 2026"},{"amount":"$3.6 million","context":"XCOR II orders as of September 30, 2026"},{"amount":"$2.8 million","context":"XCOR II initial orders as of August 26, 2026"},{"amount":"$0.9 million","context":"IEEPA customs duty refunds received"},{"amount":"$0.55 million","context":"non-recurring IEEPA refund benefit to gross margin"},{"amount":"$137,511","context":"non-cash expense for ~25% Reviv3 ownership granted to strategic partners"}]},"model_name":"glm-5.3-flashx","prompt_hash":"sha256:5c812bd9e28b810d","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-10-06T20:20:09.011Z","global_importance":22,"audience_relevance":18,"importance_components":{"tickerTier":"micro-cap","eventGravity":"routine earnings with product launch catalyst","revenueTrend":"declining headline, improving profitability"}},"durationMs":8337,"modelName":"glm-5.3-flashx"}}