Revenue growth remains highly erratic, oscillating from a 25.1% expansion in 2024Q2 to an 11.5% contraction by 2025Q4, while operating margins have struggled to exceed 2.9% as of 2026Q3.
| Sales/Revenue | 28.04M | 26.26M | 27.5M | 23.52M | 2.34M | 1.63M | 1.01M | 992.67K | 933.22K | 582K | 475.76K | 475.76K |
| Revenue Growth % | 3.81% | -4.51% | 16.91% | 906.78% | 43.01% | 61.31% | 2.02% | 6.37% | 60.35% | 22.33% | - | - |
| Cost of Goods Sold | 8.8M | 7.62M | 7.3M | 5.81M | 843.72K | 636.52K | 526.98K | 582.71K | 606.76K | 368.71K | 403.99K | 403.99K |
| COGS % of Revenue | - | 29% | 26.56% | 24.7% | 36.11% | 38.96% | 52.04% | 58.7% | 65.02% | 63.35% | 84.92% | 84.92% |
| Gross Profit | 19.24M | 18.64M | 20.19M | 17.71M | 1.49M | 997.09K | 485.73K | 409.96K | 326.46K | 213.29K | 71.77K | 71.77K |
| Gross Margin % | 68.61% | 71% | 73.44% | 75.3% | 63.89% | 61.04% | 47.96% | 41.3% | 34.98% | 36.65% | 15.08% | 15.08% |
| Gross Profit Growth % | - | -7.69% | 14.02% | 1086.62% | 49.69% | 105.28% | 18.48% | 25.58% | 53.05% | 197.21% | - | - |
| Operating Expenses | 17.66M | 17.48M | 18.67M | 15.73M | 1.7M | 1.32M | 656.85K | 559.6K | 665.3K | 751.5K | 786.45K | 786.45K |
| OpEx % of Revenue | - | 66.57% | 67.91% | 66.86% | 72.93% | 80.69% | 64.86% | 56.37% | 71.29% | 129.12% | 165.3% | 165.3% |
| Selling, General & Admin | 15.92M | 16.63M | 17.72M | 14.38M | 1.7M | 1.32M | 703.05K | 559.6K | 665.3K | 751.5K | 786.45K | 786.45K |
| SG&A % of Revenue | - | 63.35% | 64.46% | 61.13% | 72.93% | 80.69% | 69.42% | 56.37% | 71.29% | 129.12% | 165.3% | 165.3% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 1.72M | 847.15K | 949.39K | 1.35M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 1.58M | 1.16M | 1.5M | 1.98M | -211.4K | -321.05K | -171.12K | -149.64K | -338.84K | -538.21K | -714.68K | -714.68K |
| Operating Margin % | 5.62% | 4.42% | 5.47% | 8.44% | -9.05% | -19.65% | -16.9% | -15.07% | -36.31% | -92.48% | -150.22% | -150.22% |
| Operating Income Growth % | - | -22.75% | -24.23% | 1038.6% | 34.15% | -87.62% | -14.35% | 55.84% | 37.04% | 24.69% | - | - |
| EBITDA | 1.81M | 1.31M | 1.63M | 2.08M | -205.24K | -309.37K | -158.95K | -143.71K | -335.81K | -536.82K | -714.19K | -714.19K |
| EBITDA Margin % | 6.47% | 4.99% | 5.94% | 8.84% | -8.79% | -18.94% | -15.7% | -14.48% | -35.98% | -92.24% | -150.12% | -150.12% |
| EBITDA Growth % | 27.35% | -19.84% | -21.42% | 1113.14% | 33.66% | -94.63% | -10.61% | 57.21% | 37.44% | 24.83% | - | - |
| D&A (Non-Cash Add-back) | 239.47K | 148.5K | 130.61K | 95.18K | 6.16K | 11.68K | 12.17K | 5.93K | 3.03K | 1.39K | 490 | 490 |
| EBIT | 1.75M | 1.31M | 1.79M | 2.06M | -176.37K | -291.68K | -171.01K | -149.5K | -338.73K | -538.2K | -708.13K | -708.13K |
| Net Interest Income | 139.96K | 135.91K | 177.83K | 3.95K | -6.5K | -6.03K | -1.65K | -335 | -3.69K | -571 | 0 | 0 |
| Interest Income | 142.45K | 139.81K | 182.22K | 6.47K | 36 | 44 | 104 | 136 | 118 | 5 | 0 | 0 |
| Interest Expense | 2.48K | 3.9K | 4.39K | 2.52K | 6.54K | 6.08K | 1.75K | 471 | 3.81K | 576 | 65.53K | 65.53K |
| Other Income/Expense | 167.49K | 147.45K | 279.55K | 71.28K | 28.5K | 23.3K | -1.65K | -335 | -3.69K | -571 | -58.98K | -58.98K |
| Pretax Income | 1.74M | 1.31M | 1.78M | 2.06M | -182.9K | -297.75K | -172.77K | -149.97K | -342.54K | -538.78K | -773.66K | -773.66K |
| Pretax Margin % | 6.22% | 4.98% | 6.48% | 8.74% | -7.83% | -18.23% | -17.06% | -15.11% | -36.71% | -92.57% | -162.62% | -162.62% |
| Income Tax | 745.97K | 453.83K | -220.21K | 230.91K | 0 | 0 | 0 | -3 | 0 | 4 | 0 | 0 |
| Effective Tax Rate % | 42.81% | 34.67% | -12.35% | 11.23% | 0% | 0% | 0% | 0% | 0% | -0% | 0% | 0% |
| Net Income | 996.65K | 854.99K | 2M | 1.82M | -182.9K | -297.75K | -172.77K | -149.97K | -342.54K | -538.78K | -773.66K | -773.66K |
| Net Margin % | 3.55% | 3.26% | 7.28% | 7.76% | -7.83% | -18.23% | -17.06% | -15.11% | -36.71% | -92.57% | -162.62% | -162.62% |
| Net Income Growth % | -13.34% | -57.32% | 9.79% | 1097.56% | 38.57% | -72.34% | -15.2% | 56.22% | 36.42% | 30.36% | - | - |
| Net Income (Continuing) | 996.65K | 854.99K | 2M | 1.82M | -182.9K | -297.75K | -172.77K | -149.97K | -342.54K | -538.78K | -773.66K | -773.66K |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.12 | 0.10 | 0.21 | 0.10 | -0.09 | -0.14 | -0.08 | -0.07 | -0.17 | -0.27 | -0.38 | -0.38 |
| EPS Growth % | -52.44% | -52.38% | 110% | 214.68% | 37.71% | -67.26% | -14.19% | 56.88% | 37.04% | 28.95% | - | - |
| EPS (Basic) | - | 0.13 | 0.57 | 0.32 | -0.09 | -0.14 | -0.08 | -0.07 | -0.17 | -0.27 | -0.38 | -0.38 |
| Diluted Shares Outstanding | 8.26M | 8.22M | 16.17M | 17.87M | 2.1M | 2.08M | 2.06M | 2.05M | 2.03M | 2.03M | 2.03M | 2.03M |
| Basic Shares Outstanding | 6.8M | 6.44M | 5.87M | 5.64M | 2.1M | 2.08M | 2.06M | 2.05M | 2.03M | 2.03M | 2.03M | 2.03M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - |
High customer acquisition costs
According to the quarterly income statements, AXIL's revenue trajectory remains highly volatile, oscillating between a 25.1% growth peak in 2024Q2 and an 11.5% contraction by 2025Q4, suggesting that the company's transition toward hearing technology has yet to establish a consistent, predictable top-line expansion trend.
The erratic revenue performance implies that the company's reliance on direct-to-consumer channels may be subject to significant seasonal or marketing-driven fluctuations. Investors should monitor whether the recent pivot to the AXIL brand can stabilize demand, as the current lack of sustained growth suggests potential challenges in scaling the new product portfolio.
As reported in financial filings, AXIL maintains a robust gross margin profile averaging near 70%, yet operating margins have frequently dipped into low single digits or negative territory, indicating that the company's premium pricing power is being largely offset by heavy operational and marketing expenditures.
The significant spread between gross and operating margins suggests that the business model is highly sensitive to customer acquisition costs. If the company cannot achieve greater operating leverage, the high gross margin may prove insufficient to support long-term profitability in a competitive consumer electronics landscape.
Based on the provided income statement data, AXIL's operating income has failed to scale proportionally with gross profit, as evidenced by the 2026Q3 operating margin of only 2.9% despite generating $5.0 million in gross profit, highlighting a persistent inability to achieve meaningful economies of scale.
The data suggests that SG&A expenses remain stubbornly high, effectively absorbing the majority of the gross profit generated by the hearing and haircare segments. This lack of operating leverage warrants further investigation into whether the company's current marketing-heavy strategy is sustainable without a more efficient conversion of revenue into bottom-line earnings.
Analysis of recent financial statements reveals that stock-based compensation, which reached $180.4K in 2026Q3, represents a meaningful portion of net income, suggesting that reported earnings may be somewhat inflated by non-cash equity grants rather than purely operational efficiency or organic growth.
The reliance on equity-based incentives to manage cash outflows may mask the underlying difficulty in generating consistent GAAP profitability. Investors should scrutinize the impact of these non-cash charges on the quality of earnings, as they may obscure the true cash-generating capability of the core business segments.
While AXIL currently commands high gross margins, the competitive threat from larger consumer electronics firms suggests that these margins may be vulnerable to commoditization, as indicated by the company's struggle to maintain consistent revenue growth despite its premium positioning in the hearing protection market.
Short-term margin stability may be misleading if the company is forced to increase promotional activity to defend its market share against better-capitalized competitors. The current income statement trends suggest that the market may be overestimating the durability of these margins if the company cannot successfully differentiate its product offerings beyond current levels.
Quick answers to the most common questions about buying AXIL stock.
For fiscal year 2025, AXIL Brands, Inc. (AXIL) reported total revenue of $26.3M. This represents a 5419.1% increase compared to $0.5M in 2015.
AXIL Brands, Inc. (AXIL) is profitable, generating $0.9M in net income for the fiscal year ending 2025 with a net profit margin of 3.3%.
AXIL Brands, Inc. (AXIL) reported an operating income of $1.2M, resulting in an operating profit margin of 4.4%. This margin reflects the operational efficiency of the business before interest and taxes.
AXIL Brands, Inc. (AXIL) generated $18.6M in gross profit for the year, representing a gross profit margin of 71.0%. This demonstrates the company's core pricing power and production efficiency.