AXIL Brands reported fiscal 2027 first-quarter net revenue of $6.1 million compared with $6.9 million a year earlier, a decline of 11.2%.
The decrease reflected the planned transition from XCOR to the next-generation XCOR II product and a large prior-year big-box order that did not repeat.
Direct-to-consumer revenue in the hearing segment declined less than 1%.
Gross profit increased to $5 million from $4.6 million.
Reported gross margin expanded to 82.6% from 67.6%, aided by a $550,000 non-recurring customs duty refund benefit.
Excluding the refund, gross margin was approximately 73.6%.
Operating income increased to $437,000 from $412,000.
Net income reached approximately $400,000, or $0.05 per diluted share, compared with $300,000, or $0.04 per share, a year earlier.
Adjusted EBITDA increased to $800,000 from $700,000.
Operating cash flow reached $3.8 million compared with a use of $739,000 in the prior-year quarter.
AXIL ended the quarter with $7.9 million in cash and no outstanding borrowings.
XCOR II became available September 15.
Orders for the product exceeded $2.8 million as of August 26 and increased to more than $3.6 million by September 30.
AXIL expects the associated shipments to contribute to second-quarter revenue and beyond.
KEY QUOTES:
“XCOR II was announced in August, became available on September 15, and generated orders exceeding $3.6 million through September 30 across retail, distribution, and direct-to-consumer, the strongest early demand we have seen for an AXIL product.”
“We ended the quarter with $7.9 million of cash and no debt, and by September 30, 2026, we had fulfilled the majority of the XCOR II order backlog.”
Jeff Toghraie, Chairman and CEO of AXIL Brands
