AXIL Brands (AXIL) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 marked a transformative year, shifting from a direct-to-consumer e-commerce model to a multi-channel consumer products platform, with significant expansion into retail and wholesale channels.

• Achieved record Q4 net revenues of $8.6 million, up 48.9% year-over-year, and net income of $1.5 million, reversing a prior year loss.

• Fiscal 2026 annual net income reached $2.7 million, or $0.33 diluted EPS, compared to $0.10 in fiscal 2025.

• Operational highlights included major product launches and a retail footprint expansion to approximately 6,000 stores, including Walmart, Sportsman's Warehouse, and U.S. Marine Corps Exchange.

• The company ended the year debt-free, with $4.5 million in cash and $7.4 million as of August 14, 2026.

Financial highlights

• Q4 gross margin expanded to 72% from 70%, exceeding guidance; full-year gross margin was 69.3%, down from 71% due to channel mix and tariffs.

• Q4 income from operations was $1.45 million (vs. $46,000 prior year); adjusted EBITDA was $1.74 million (20.3% margin).

• Full-year net income was $2.7 million, up 216% from $855,000, with diluted EPS of $0.33 (vs. $0.10 prior year).

• Adjusted EBITDA for the year was $4 million (13.1% margin), up 66.2% year-over-year.

• Operating expenses as a percentage of revenue fell nearly 700 basis points to 59.7%; Q4 operating margin was 16.9%.

Outlook and guidance

• Targeting continued top and bottom-line growth in fiscal 2027, with a focus on expanding retail presence and advancing product lines.

• No specific quarterly or annual guidance provided due to variability in timing of large retail orders; expects this effect to moderate as retail scales.

• Significant investment planned in marketing and R&D, with a major product launch (XCOR 2.0) scheduled for September.

• Management believes the company is in the early stages of a multi-year growth trajectory.