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Axil Brands, Inc. (AXIL)·Q4 2025 Earnings Summary

Executive Summary

  • Q4 FY2025 (ended May 31, 2025) was seasonally softer, with revenue of $5.75M*, gross margin ~70.0%, EBITDA ~$0.10M, and a net loss of ~$0.25M*, reflecting a post-holiday normalization and ongoing tariff-related cost pressures. The prior quarters were stronger: Q2 revenue $7.73M and diluted EPS $0.08, Q3 revenue $6.92M and diluted EPS $0.07 .
  • No quantitative guidance was provided; strategically, AXIL accelerated its supply chain transition to U.S. manufacturing to reduce tariff exposure and secured a major wholesale partnership with a leading membership-based national retailer, with an initial PO in Q1 FY2026 — a near-term revenue catalyst .
  • Cash ended FY2025 at $4.77M, with FY operating cash flow of $1.93M, supporting growth investments without reliance on external capital .
  • Street consensus for Q4 FY2025 EPS and revenue was not published in S&P Global, limiting beat/miss assessment; estimates appear unavailable for AXIL’s coverage universe.*

What Went Well and What Went Wrong

What Went Well

  • Multi-channel progress and retail expansion: “We are in over 1,000 retail locations, including Bass Pro Shops, Scheel’s, and select Walmart stores,” underpinning broader channel diversification and margin discipline .
  • Operational execution improved in Q3: Adjusted EBITDA turned positive to $0.89M (12.9% of sales) vs a slight loss in the prior-year period, and OpEx as a % of sales fell to 63.3% .
  • Strategic catalysts for FY2026: Secured a significant wholesale agreement with a leading membership-based national retailer (initial PO in Q1 FY2026) and accelerated domestic manufacturing to mitigate tariffs and build resilience .

What Went Wrong

  • Q4 softness and profitability pressure: Q4 revenue ~$5.75M*, diluted EPS ~$(0.04), and EBITDA ~$0.10M point to post-holiday deceleration and margin compression vs Q2/Q3.*
  • FY gross margin compression: FY2025 gross margin was 71.0%, down from 73.4% in FY2024, reflecting higher costs and tariff headwinds .
  • Lower FY net income despite higher Adjusted EBITDA: FY2025 net income was $0.85M vs $2.00M in FY2024; adjusted EBITDA rose to $2.43M (+21% YoY), highlighting higher stock-based comp and other non-operating items .

Financial Results

Quarterly P&L Summary

MetricQ2 2025Q3 2025Q4 2025
Revenue ($)$7,732,574 $6,922,367 $5,751,309*
Net Income ($)$633,706 $576,662 $(245,575)*
Diluted EPS ($)$0.08 $0.07 $(0.04)*
Gross Profit Margin (%)71.1% 71.7% 70.0%*
EBITDA ($)$707,311*$628,775*$101,584*
EBITDA Margin (%)9.1%*9.1%*1.8%*
EBIT Margin (%)8.7%*8.4%*0.8%*

Values with an asterisk are retrieved from S&P Global.

Adjusted EBITDA (Non-GAAP)

MetricQ2 2025Q3 2025Q4 2025
Adjusted EBITDA ($)$1,013,952 $890,546 N/A

QoQ Change

MetricQ2 2025Q3 2025Q4 2025
Revenue QoQ (%)—−10.5% (from $7.73M to $6.92M) −16.9%* (from $6.92M to $5.75M)
Diluted EPS QoQ—−$0.01 (from $0.08 to $0.07) −$0.11* (from $0.07 to $(0.04))

Values with an asterisk are retrieved from S&P Global.

KPIs and Liquidity

KPIQ2 2025Q3 2025Q4 2025
Cash & Equivalents (end of period)$5,213,897 $4,743,470 $4,769,854
Operating Cash Flow (period-to-date)$1,904,174 (six months) $1,734,230 (nine months) $1,928,661 (full year)
Gross Margin (%)71.1% 71.7% 71.0% (FY)

Segment Breakdown

  • The company reports consolidated figures; no segment revenue breakout disclosed in Q2/Q3/Q4 press releases .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Wholesale channel ramp with leading membership-based retailerFY2026Not providedInitial purchase order received in Q1 FY2026New disclosure
Supply chain transition (domestic manufacturing)FY2026Not providedAccelerating U.S. manufacturing to reduce tariff exposureNew/Expanded initiative
Product pipeline (TRACKR successor earmuffs)H1 CY2025Not providedExpect launch in H1 2025Maintained timing update
Quantitative revenue/EPS/margin guidanceFY2026Not providedNot providedMaintained: no quantitative guidance

Earnings Call Themes & Trends

No Q4 FY2025 earnings call transcript was found; themes below reflect press release narratives.

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q4 FY2025)Trend
Retail channel expansion“Over 1,000 retail locations” in Bass Pro, Scheel’s, select Walmart; focus on efficient profitability Major wholesale partnership secured; initial PO in Q1 FY2026 Positive acceleration
International distributionAnnounced relationships; expecting more agreements for targeted markets Continued multi-channel strategy; global sales presence reiterated Steady expansion
Tariffs and supply chain“New tariffs now in effect” and accelerating supply chain transition; relocating leadership to U.S.; building domestic manufacturing Advancing domestic manufacturing development to reduce tariff exposure; operational realignment Active mitigation
Cash discipline and fundingStrong cash position enabling internal funding of growth “Invest in growth without relying on outside capital” Maintained discipline
Product innovationTRACKR successor earmuffs planned H1 2025 Focus on innovation across hearing protection portfolio Ongoing R&D execution

Management Commentary

  • “We enter fiscal 2026 with strong momentum, a solid balance sheet, and the flexibility to invest in growth without relying on outside capital.” — Jeff Toghraie, CEO .
  • “Secured a major wholesale partnership with one of the nation’s largest membership-based retailers — a milestone that we expect will drive meaningful top-line growth beginning in fiscal 2026.” .
  • “We are accelerating our supply chain transition strategy—relocating key operational leadership to the U.S. and initiating plans to build out domestic manufacturing capabilities.” .
  • “We are in over 1,000 retail locations, including Bass Pro Shops, Scheel’s, and select Walmart stores... we expect to be able to recognize a healthy margin contribution.” .

Q&A Highlights

  • No Q4 FY2025 earnings call transcript was available; therefore, no Q&A session could be analyzed. Key clarifications derive from press releases regarding wholesale partnership timing (Q1 FY2026 initial PO) and domestic manufacturing acceleration .

Estimates Context

  • S&P Global consensus for Q4 FY2025 EPS and revenue was not available; no “# of estimates” were published. Beat/miss cannot be determined given lack of coverage.*
  • Actuals used for context: Q4 FY2025 revenue ~$5.75M*, EBITDA ~$0.10M*, diluted EPS ~$(0.04)*.

Values retrieved from S&P Global.

Key Takeaways for Investors

  • Near-term catalyst: Scaling of the new wholesale partnership in FY2026 (initial PO in Q1) should lift top-line and broaden reach .
  • Tariff mitigation: Accelerated transition to U.S. manufacturing should improve supply chain resilience and reduce tariff exposure over time .
  • Channel diversification: Retail presence (>1,000 locations) complements DTC; management emphasizes “efficient profitability,” aiming to preserve margins .
  • Profitability trajectory: Q3 Adjusted EBITDA inflection and improved OpEx ratio were encouraging, but Q4 softness underscores seasonality and cost pressure; watch margin trends as domestic manufacturing scales .
  • Liquidity supports self-funded growth: FY cash $4.77M and FY operating cash flow $1.93M reduce reliance on external capital .
  • Estimate vacuum: Limited Street coverage (no published Q4 consensus) may increase volatility around prints; focus on company-provided operational milestones.*
  • Execution risks: Gross margin compression vs FY2024 and lower FY net income highlight sensitivity to costs and tariffs; monitor stock-based comp and operating leverage .