Name: Axil Brands, Inc. Q1 2025 Earnings Call
Start: 2025-11-20 09:20:25.437809+00

Executive Summary

Q1 FY2025 revenue was $5.85M, down year over year from $6.11M, with gross margin at 71.0% versus 76.1% a year ago, and a net loss of $0.11M versus net income of $0.15M in Q1 FY2024 .
Sequentially vs Q4 FY2024 (derived from FY minus 9M), revenue declined from ~$6.50M to $5.85M and net income swung from ~$0.05M to a $0.11M loss; gross margin was roughly stable at ~71.7% in Q4 FY2024 vs 71.0% in Q1 FY2025 .
Management highlighted expansion into new channels and international markets and continued investment in innovation; operating cash flow improved to $0.90M (vs $0.40M in the prior-year quarter) .
No formal quantitative guidance or earnings call transcript was found in the company documents reviewed; investor focus is likely on sustaining growth while managing margin pressure and operating efficiency .

What Went Well and What Went Wrong

What Went Well
- Operating cash flow strengthened: Q1 FY2025 cash from operations was $0.90M vs $0.40M in Q1 FY2024, improving liquidity despite softer sales .
- Strategic execution: “We achieved significant progress by expanding into new channels and diversifying our business mix… continued investment in innovation… for both domestic and international markets” (CEO) .
- Share structure/dilution progress since FY2024: weighted average diluted shares fell to 6.17M in Q1 FY2025 from 18.62M in the prior-year quarter; FY2024 actions included a preferred stock buyback and NYSE American uplist (context for reduced dilution) .
What Went Wrong
- Top-line softness and margin compression: revenue fell to $5.85M from $6.11M YoY and gross margin declined to 71.0% from 76.1% .
- Operating loss vs prior-year profit: operating loss of $0.14M vs operating income of $0.17M in Q1 FY2024, driven by lower gross profit and similar opex/sales ratio .
- Higher professional and consulting spend: $0.95M in Q1 FY2025 vs $0.43M in Q1 FY2024, contributing to negative operating leverage at current sales levels .

Metric	Q1 FY2024 (Aug 31, 2023)	Q3 FY2024 (Feb 29, 2024)	Q4 FY2024 (May 31, 2024)	Q1 FY2025 (Aug 31, 2024)
Revenue ($USD Millions)	$6.11	$6.47	$6.50 (derived)	$5.85
Gross Profit ($USD Millions)	$4.65	$4.62	$4.66 (derived)	$4.15
Gross Margin %	76.1%	71.5%	71.7% (derived)	71.0%
Operating Expenses ($USD Millions)	$4.47	$4.73	$4.49 (derived)	$4.29
Operating Income ($USD Millions)	$0.17	$(0.10)	$0.17 (derived)	$(0.14)
Net Income ($USD Millions)	$0.15	$0.78	$0.05 (derived)	$(0.11)
Diluted EPS ($)	$0.01	$0.04	N/A	$(0.02)

Notes:

Q4 FY2024 figures are computed from FY2024 (year ended 5/31/24) less 9M FY2024 (nine months ended 2/29/24) and are presented for directional sequential context .
Q1 FY2025 gross margin and prior-year gross margin are stated explicitly in the press release .

KPIs (selected)

KPI	Q1 FY2024	Q1 FY2025
Cash from Operations ($USD Millions)	$0.40	$0.90
Net Cash Increase ($USD Millions)	$0.23	$0.89
Inventory ($USD Millions, period-end)	N/A	$3.27
Accounts Receivable ($USD Millions, period-end)	N/A	$0.60

Segment/Mix context (FY2024): Hearing protection and enhancement accounted for ~95% of revenue (annual context, not quarter-specific) .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue, EPS, margins, OpEx, tax rate, segment metrics	FY2025 / near-term	None disclosed	None disclosed	No formal quantitative guidance provided in Q1 FY2025 or FY2024 press releases

Note: No earnings call transcript identified in the document set. The table reflects themes from recent press releases.

Topic	Previous Mentions (Q-2: Q3 FY2024)	Previous Mentions (Q-1: FY2024 release)	Current Period (Q1 FY2025)	Trend
Channel/distribution expansion	Focus on expanding distribution and retail channels noted with rebranding/uplist milestones	FY narrative attributes revenue growth to expanded distribution and retail channels	“Expanding into new channels and diversifying our business mix” (CEO)	Continuing expansion
International growth	Noted focus on expansion into new markets in corporate update	Emphasis on enhancing global presence and partnerships	Continued investment in new products for domestic and international markets	Building momentum
Gross margin trajectory	Q3 GM 71.5% vs 74.6% prior-year quarter (pressure)	FY GM 73.4% (down YoY) due to expansion into new channels	Q1 FY2025 GM 71.0% vs 76.1% prior-year (pressure persists)	Pressure continues
Capital markets/structure	Name change, uplist to NYSE American, preferred share repurchase highlighted	Record FY revenue; share count reduction context	Weighted avg diluted shares down materially YoY in Q1	Reduced dilution vs PY

“The first quarter marked a strong start to the fiscal year for AXIL… expanding into new channels and diversifying our business mix… continued investment in innovation… for both domestic and international markets” — Jeff Toghraie, Chairman & CEO .
“We are making continued progress in areas that should contribute to our sustainable, long-term growth and profitability… enhancing our global presence, fostering strategic partnerships…” — FY2024 release .
“Our successful listing on the NYSE American… and repurchase of our Series A preferred shares enhances our ability to execute our enterprise growth strategy” — Q3 FY2024 release .

Not applicable; no Q&A content was included in the company press materials reviewed for Q1 FY2025 .

Wall Street consensus (S&P Global) for RVIV was unavailable; comparisons to estimates and beat/miss analysis are not included. If you want, we can attempt alternative data sources or update once S&P Global mapping becomes available.

Revenue dipped to $5.85M and gross margin fell to 71.0% YoY, indicating continued mix/expansion-related pressure on margins at current scale .
Sequential revenue and earnings softened vs derived Q4 FY2024, while gross margin held near prior-quarter levels (~71–72%), highlighting the need for volume growth to drive operating leverage .
Operating cash generation improved markedly YoY in Q1, a positive sign for funding growth initiatives without incremental balance sheet strain .
Strategic priorities remain intact: channel expansion, international growth, and product innovation underpin the medium-term thesis despite near-term margin pressure .
Reduced diluted share count versus the prior-year quarter mitigates dilution and could enhance per-share metrics as profitability scales .
No formal guidance was provided; in the absence of consensus estimates, investors should track quarterly revenue trajectory, gross margin stabilization, and operating expense discipline as near-term catalysts .

References