AXIL Brands (AXIL) Q1 2027 earnings summary

Executive summary

• Q1 FY2027 revenue fell 11.2% YoY to $6.09M amid the XCOR-to-XCOR II transition and a prior-year big-box order that did not recur; XCOR II orders exceeded $3.6M by Sept. 30.

• Net income rose to $421K from $334K; quarter-end cash reached $7.9M with no outstanding borrowings.

Financial highlights

• Net revenue was $6.09M vs. $6.86M; gross profit was $5.03M vs. $4.63M.

• Adjusted EBITDA rose to $827K from $674K, with margin of 13.6% vs. 9.8%.

• Operating income increased to $437K from $412K; diluted EPS was $0.05 vs. $0.04.

• Operating cash flow was $3.76M, compared with $739K of cash use in the prior-year quarter.

Outlook and guidance

• FY2027 net revenue and net income growth are expected, with the impact becoming more evident from Q2; growth drivers include XCOR II, broader retail and wholesale coverage, and Reviv3.

• XCOR II orders exceeded $3.6M by Sept. 30; most of the backlog had been fulfilled, with sales expected to contribute from Q2 onward.

• Gross margin excluding customs refunds is expected to remain within the historical 67%–74% range through FY2027.

• Reviv3 distributor and retailer onboarding could begin as early as next quarter.