AXIL Brands, Inc. (AXIL) reported third-quarter fiscal 2026 net sales of $7.3 million, a 5.4% increase from $6.9 million a year earlier. Despite revenue growth, net income fell to $0.2 million (2 cents per diluted share) from $0.6 million (7 cents per diluted share) in the same period last year, highlighting profitability challenges amid increasing operating costs. The company’s gross margin decreased to 69.1% compared to 71.7% a year ago.
Operating expenses rose 10.1% year-over-year to $4.8 million, driven by significant investments in sales and marketing, contributing to an income from operations decline to $214,239. Additionally, AXIL ended the period with $5.5 million in cash, up from $4.8 million at the end of May 2025. Looking ahead, the company anticipates fourth-quarter revenues between $8 million and $10 million, representing a year-over-year growth of 39-74%.
