AXIL Brands (AXIL) Q3 2025 earnings summary

Executive summary

• Q3 FY2025 net sales rose 7.0% to $6.92M; operating income was $583K versus a $104K loss, and Adjusted EBITDA was $891K versus an $11K loss.

• 9M net sales fell 2.3% to $20.51M and net income declined to $1.10M from $1.95M, as weaker first-half DTC sales offset Q3 strength.

Financial highlights

• Q3 gross profit was $4.97M versus $4.62M; net income was $577K versus $781K.

• 9M gross profit fell to $14.62M from $15.53M.

• Q3 operating expenses declined 7.3% to $4.38M; 9M operating expenses declined 4.9% to $13.50M, including $861K of non-cash stock-based compensation.

• Q3 basic/diluted EPS was $0.09/$0.07 versus $0.13/$0.04; 9M EPS was $0.17/$0.13 versus $0.33/$0.11.

Outlook and guidance

• Management expects FY ending May 31, 2025 net income and positive operating cash flow; cash and anticipated operating cash flow are expected to fund working capital for at least one year from issuance.

• Tariffs are expected to raise near-term product costs; inventory and mitigation efforts are expected to limit disruption, while sourcing, pricing and supply-chain measures are reviewed.

• Plans include expanding offline retail and international markets, growing existing products and introducing new ones; benefits and timing remain uncertain.

• A potential hair and skin care divestiture is under consideration but may not occur or deliver benefits.