Executive Summary

Q3 FY2024 revenue was $6.47M, up 14.4% YoY, with gross margin contracting to 71.5% and operating expenses rising to 73.1% of sales; operating loss was offset by a large tax benefit, yielding net income of $0.78M and diluted EPS of $0.04 .
Sequentially, revenue declined from Q2’s $8.42M and margins compressed (Q2 gross margin 74.3%), highlighting tougher operating leverage in Q3 versus Q2’s stronger operating income profile .
Corporate actions: the company rebranded to Axil Brands (ticker “AXIL”), uplisted to NYSE American, and repurchased preferred shares equivalent to ~55% of fully diluted shares—potentially simplifying the capital structure and improving float dynamics .
No quantitative guidance was issued in the Q3 press release, and no earnings call transcript was available in filings; focus appears to remain on market expansion and operational optimization .

What Went Well and What Went Wrong

What Went Well

Double‑digit top-line growth: Net sales increased 14.4% YoY to ~$6.47M in Q3; management cited continued execution and expansion initiatives .
Positive bottom line vs. prior year: Q3 net income rose to $0.78M (vs. $0.16M YoY) with diluted EPS of $0.04 (vs. $0.01), aided by an $0.83M tax benefit .
Strategic milestones: name change to Axil Brands, uplisting to NYSE American, and repurchase of preferred shares (reducing ~55% of fully diluted shares); CEO: “enhances our ability to execute our enterprise growth strategy and unlock value for our shareholders” .

What Went Wrong

Margin compression: Gross margin fell to 71.5% from 74.6% YoY and also declined from Q2’s 74.3%, signaling less favorable mix and/or pricing vs. costs in the quarter .
Higher operating intensity: Operating expenses rose to 73.1% of revenue (vs. 70.7% YoY), driving an operating loss of $0.10M despite revenue growth .
Sequential slowdown: Revenue decreased from Q2’s $8.42M to Q3’s $6.47M, while Q2 delivered $1.26M in operating income—highlighting an unfavorable QoQ swing in operating leverage .

Financial Results

Quarterly P&L (oldest → newest)

Metric	Q1 FY2024 (Aug 31, 2023)	Q2 FY2024 (Nov 30, 2023)	Q3 FY2024 (Feb 29, 2024)
Net Sales ($USD Millions)	$6.11	$8.42	$6.47
Gross Profit ($USD Millions)	$4.65	$6.26	$4.62
Gross Margin %	76.1%	74.3%	71.5%
Operating Expenses ($USD Millions)	$4.47	$4.99	$4.73
Operating Expenses % of Sales	73.3%	59.3%	73.1%
Income from Operations ($USD Millions)	$0.17	$1.26	-$0.10
Other Income (Net) ($USD Millions)	$0.05	$0.12	$0.06
Income (Loss) Before Taxes ($USD Millions)	$0.22	$1.38	-$0.05
Income Tax (Provision)/Benefit ($USD Millions)	-$0.07	-$0.36	$0.83
Net Income ($USD Millions)	$0.15	$1.02	$0.78
Basic EPS ($)	$0.00	$0.01	$0.13
Diluted EPS ($)	$0.00	$0.00	$0.04

Note: $USD Millions are rounded from reported figures; see citations for exact reported amounts.

Q3 YoY Comparison

Metric	Q3 FY2023 (Feb 28, 2023)	Q3 FY2024 (Feb 29, 2024)	YoY Change
Net Sales ($USD Millions)	$5.66	$6.47	+14.4%
Gross Margin %	74.6%	71.5%	-3.1 pp
Operating Expenses % of Sales	70.7%	73.1%	+2.4 pp
Income from Operations ($USD Millions)	$0.22	-$0.10	-$0.32
Income Tax (Provision)/Benefit ($USD Millions)	-$0.06	$0.83	+$0.89
Net Income ($USD Millions)	$0.16	$0.78	+$0.62
Diluted EPS ($)	$0.01	$0.04	+$0.03

No segment or KPI breakdowns were provided in the Q3 press release; the company markets AXIL hearing protection/enhancement and Reviv3 hair/skin care across the U.S., Canada, EU and Asia .

Guidance Changes

No quantitative guidance (revenue, margins, OpEx, OI&E, tax rate, or segment-specific) was included in the Q3 FY2024 press release .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	N/A	—	—	—
Gross Margin	N/A	—	—	—
Operating Expenses	N/A	—	—	—
Tax Rate	N/A	—	—	—

Earnings Call Themes & Trends

No earnings call transcript was available in filings; themes below reflect press releases.

Topic	Previous Mentions (Q1, Q2)	Current Period (Q3)	Trend
Market expansion / distribution	Q1: “continued expansion of our global retail presence through onboarding of new domestic and international vendors and distributors” ; Q2: growth via “market expansion and product innovation”	“committed to expansion into new markets”	Consistent focus on distribution-led growth
Profitability focus	Q1: “pragmatic revenue growth and a disciplined approach to managing operating costs and expenses” (CFO)	Q2: sixth consecutive profitable quarter	Q3: operating loss but positive net income via tax benefit
Capital markets / structure	—	—	Rebrand to AXIL; uplisting to NYSE American; preferred share repurchase reducing ~55% of fully diluted shares
Macro / tariffs / supply chain	Risks cited: inflation, discretionary spending, supply chain constraints	Risks reiterated (inflation, tariffs, macro uncertainty)	Risks reiterated (inflation, tariffs, geopolitical)

Management Commentary

“We are extremely pleased with our business performance and the significant objectives achieved during this quarter. Our successful listing on the NYSE American stock exchange and recent repurchase of our Series A preferred shares enhances our ability to execute our enterprise growth strategy and unlock value for our shareholders… we remain committed to expansion into new markets, optimizing operations and creating sustainable long term growth.” — Jeff Toghraie, Chairman & CEO (Q3) .
“We delivered another strong quarter, growing our net sales by approximately twenty-five percent and net income by approximately forty percent… This quarter marks our sixth consecutive profitable quarter…” — CEO (Q2) .
“We are 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) .
“Our focus during the first quarter was continued expansion of our global retail presence through the onboarding of new domestic and international vendors and distributors…” — CEO (Q1) .

Q&A Highlights

No Q&A transcript was available in the company filings reviewed; no additional clarifications beyond press release commentary could be sourced for Q3 .

Estimates Context

S&P Global/Wall Street consensus estimates were not available for RVIV/AXIL at the time of analysis; as a result, no vs‑consensus comparisons are presented.
Investors should treat Q3’s positive EPS as non‑recurring in nature given the $0.83M tax benefit; absent estimates, the operational miss vs. Q2 is evident in lower revenue and margin compression .

Key Takeaways for Investors

Q3 showed solid YoY revenue growth but weaker sequential performance; operating loss reflects higher operating intensity and margin compression vs. Q2 .
Net income and diluted EPS benefited significantly from a one‑time tax benefit; underlying operating trends were softer QoQ, warranting caution on run‑rate profitability .
Strategic actions (rebrand, uplist, preferred share repurchase cutting ~55% of fully diluted shares) may improve capital markets profile and shareholder alignment near term .
Lack of explicit guidance and limited disclosure beyond press releases raise the importance of monitoring upcoming filings/events for visibility into margin drivers and revenue cadence .
Watch for evidence of sustained distribution expansion and mix/pricing improvements to stabilize gross margins back toward Q2 levels (74.3%) .
Macro risks (inflation, tariffs, weakening discretionary spend) remain a backdrop; management’s emphasis on operational optimization is appropriate given the environment .
Near‑term trading: stock may react to capital structure simplification and uplisting catalysts; medium‑term thesis hinges on converting distribution wins into consistent operating leverage.

Supporting documents: Q3 FY2024 8‑K (press release) ; Q2 FY2024 8‑K (press release) ; Q1 FY2024 8‑K (press release) .

Axil Brands, Inc. (RVIV)·Q3 2024 Earnings Summary