AXIL Brands (AXIL) Q2 2026 earnings summary

Executive summary

• Q2 FY26 revenue rose 5.2% YoY to $8.135M; operating income increased to $903K and net income to $705K.

• H1 FY26 revenue grew 10.4% to $14.991M; operating income reached $1.31M and net income rose to $1.039M from $524K.

• Retail expansion is generating purchase orders and broader distribution, but retail and distributor sales carry tighter margins than direct-to-consumer sales.

Financial highlights

• Q2 gross profit was $5.536M vs. $5.498M; operating income was $903,071 vs. $672,871 and net income was $704,883 vs. $633,706.

• H1 gross profit was $10.17M vs. $9.65M; operating income was $1.31M vs. $532K and net income was $1.039M vs. $523,901.

• Adjusted EBITDA was $1.155M in Q2 vs. $1.014M and $1.83M in H1 vs. $1.19M; prior-year Q2 included a non-recurring AP-forgiveness gain.

• Q2 basic/diluted EPS was $0.10/$0.09 vs. $0.10/$0.08; H1 basic/diluted EPS was $0.16/$0.13 vs. $0.08/$0.06.

Outlook and guidance

• Management expects FY26 net income and positive cash flow, and says current strategic initiatives can be funded through operating cash generation.

• Walmart's initial X30i LT rollout across ~3,700 U.S. locations is expected to begin in early calendar 2026; the partnership was not yet generating revenue.

• A nationwide retail partnership is expected to bring a next-generation hearing-protection product to stores beginning in Q3 FY26.

• Current tariff levels are not expected to have a material ongoing FY26 effect; outlook may change with tariff rates or trade policies.