Axil Brands, Inc. (RVIV)·Q2 2024 Earnings Summary

Executive Summary

• Q2 net sales rose 25.1% year over year to a record $8.42M; gross margin remained robust at 74.3%, and operating expenses leveraged to 59.3% of sales; net income increased 40.1% to $1.02M .
• Sequentially, revenue grew from Q1’s $6.11M to $8.42M, while gross margin moderated from 76.1% to 74.3%; operating income expanded to $1.26M as OpEx efficiency improved .
• The company executed a 1-for-20 reverse split (Jan 16) and prepared for NYSE American uplisting and rebranding to AXIL Brands, Inc. (Feb 14), later reporting Q3 net income of $0.78M driven in part by a substantial tax benefit; share count changes affect per-share comparability across quarters .
• No formal quantitative guidance or consensus estimates were available via S&P Global for Q2; as a result, comparisons vs estimates are not provided and may need updating once coverage is established (S&P Global consensus unavailable).

What Went Well and What Went Wrong

What Went Well

• Strong topline growth: “Net sales… increased approximately twenty-five percent,” with Q2 net sales reaching $8.42M and net income up ~40% YoY to $1.02M, marking a sixth consecutive profitable quarter .
• Operating discipline: OpEx as a percentage of net sales fell to 59.3% vs 60.2% a year ago, supporting operating income expansion to $1.26M .
• Strategic milestones: Reverse split to facilitate listing, and corporate rebranding/uplisting plan to NYSE American, positioning for greater visibility and liquidity .

What Went Wrong

• Margin pressure: Gross margin dipped to 74.3% in Q2 from 74.9% YoY and from 76.1% in Q1; Q3 gross margin stepped down further to 71.5% .
• Volatility in operating profitability: Q3 showed a small operating loss (-$0.10M) despite revenue growth YoY; Q3 net income relied on a large tax benefit rather than core operations .
• Lack of formal guidance and limited external estimate coverage: No numeric guidance ranges were provided, and S&P Global consensus data was unavailable for Q2, limiting visibility for investors (S&P Global consensus unavailable).

Financial Results

Quarterly progression (oldest → newest)

Note: EPS comparability across periods is affected by the 1-for-20 reverse split effective Jan 16, 2024 .

Q2 Year-over-Year comparison

Estimates vs Actuals

S&P Global consensus for Q2 2024 EPS and revenue was unavailable for AXIL/RVIV at the time of this analysis; therefore, “vs. estimates” comparisons are not provided (Values not available from S&P Global).

Segment breakdown

No segment revenue disclosure provided in the Q2 press release; results reflect consolidated AXIL hearing products and Reviv3 hair/skin care brands .

Selected KPIs

• Gross Margin %: 74.3% in Q2; 76.1% in Q1; 71.5% in Q3 .
• OpEx as % of Net Sales: 59.3% in Q2; 73.3% in Q1; 73.1% in Q3 .

Guidance Changes

Earnings Call Themes & Trends

Note: No Q2 earnings call transcript was available in the document set; themes reflect press releases and filings for Q1–Q3.

Management Commentary

• “We delivered another strong quarter, growing our net sales by approximately twenty-five percent and net income by approximately forty percent… sixth consecutive profitable quarter… continued focus on profitability while maintaining aggressive growth through market expansion and product innovation.” — Jeff Toghraie, CEO (Q2 press release) .
• “Reviv3 had a strong start… 44.1% increase in Net Sales… committed to furthering our financial strength through pragmatic revenue growth and a disciplined approach to managing operating costs and expenses.” — Monica Diaz Brickell, CFO (Q1 press release) .
• “Our focus… was continued expansion of our global retail presence through the onboarding of new domestic and international vendors and distributors…” — Jeff Toghraie, CEO (Q1 press release) .
• “We are extremely pleased… successful listing… repurchase of our Series A preferred shares enhances our ability to execute our enterprise growth strategy and unlock value…” — Jeff Toghraie, Chairman & CEO (Q3 press release) .

Q&A Highlights

• No Q2 earnings call transcript was available in our document set; therefore, Q&A highlights and any guidance clarifications are not captured for Q2.

Estimates Context

• S&P Global consensus estimates for Q2 2024 (revenue and EPS) were unavailable at the time of analysis; result vs consensus and “beat/miss” cannot be determined. Values not available from S&P Global.
• Given the strong YoY growth and sequential OpEx leverage in Q2, we would expect upward bias to near-term profitability expectations pending formal Street coverage initiation .

Key Takeaways for Investors

• Q2 delivered a clean operating beat narrative operationally: revenue +25.1% YoY, OpEx % down, and net income +40.1% YoY; margin durability remains high despite modest compression .
• Sequential operating leverage in Q2 (vs Q1) suggests effective cost control and scale benefits ahead of the NYSE American uplist and brand transition to AXIL .
• The rebrand/uplist and reverse split are catalysts for liquidity and visibility; Q3’s preferred share repurchase materially reduces diluted share count and may support per-share metrics going forward .
• Monitor gross margin trajectory: Q1→Q2→Q3 shows step-down (76.1%→74.3%→71.5%); watch mix, input costs, and promotional intensity as drivers .
• Tax dynamics can be volatile; Q3 net income benefited from a sizable tax benefit despite an operating loss—focus on underlying operating earnings quality .
• Absence of formal guidance and limited consensus coverage increases uncertainty; near-term investor focus should be on execution in market expansion and product launches in the AXIL hearing portfolio .
• For traders, corporate actions (uplist, rebranding, share structure changes) and ensuing liquidity shifts are likely to be near-term stock reaction catalysts; for PMs, medium-term thesis hinges on scaling AXIL distribution and maintaining premium gross margins amid macro/tariff risks .