AXIL Brands, Inc. (AXIL) reported net sales of $8.1 million for Q2 of fiscal 2026, a 5.2% increase from $7.7 million the previous year, largely driven by a significant order from a national membership-based retail chain. The company’s net income rose to $704,883, up from $633,706 a year earlier, with diluted earnings per share increasing from 8 cents to 9 cents. AXIL’s stock has surged 15.6% since the earnings report, outperforming the S&P 500’s 0.1% gain over the same period.
The gross profit for the quarter was $5.5 million, but the gross margin declined to 68.1% from 71.1%, attributed to a shift towards lower-margin products. Operating income expanded by 34.2% to $903,071, aided by lower operating costs. AXIL’s cash reserves increased to $5 million, with accounts receivable rising to $2.4 million and inventory climbing to $4.7 million, indicating growth investment.
Management expressed confidence in sustaining profitable growth through operational cash flows while noting that retail channel expansion and e-commerce execution are progressing well. Upcoming developments include a national distribution agreement with Walmart for the X30i LT product and the launch of the GS Extreme 3.0 tactical earbud.
