AXIL Brands Inc. reported fiscal fourth-quarter 2026 net income of $1.5 million, or $0.18 per diluted share, exceeding Wall Street's $0.14 per share estimate by 28.6%. Revenue totaled $8.56 million, missing the $9.13 million forecast by 6.2% though up 48.9% from the prior-year period.
For the full fiscal year 2026, the company achieved a record $30.8 million in net revenue, a 17.5% increase year-over-year. Gross profit reached $21.4 million, with a full-year gross margin of 69.3%, down from 71% in fiscal 2025. Operating income rose 156.3% to $3.0 million, while adjusted EBITDA increased 66.2% to $4.0 million, representing 13.1% of net revenue compared with 9.3% a year earlier.
CEO Jeff Toghraie highlighted the company's strengthened position entering fiscal 2027, noting progress in expanding product lines and retail distribution. The company received approximately $980,000 in tariff refunds, including $910,000 after May 31, which supported gross margin improvement to 72% in the quarter.
Retail and wholesale revenue grew 136.9% to $9.9 million, accounting for 33% of consolidated revenue, while the hearing segment contributed $29.6 million, up 19.5%. Direct-to-consumer revenue within the segment declined 4.3% to $19.7 million. Operating expenses totaled $18.4 million, up 5.3%, with sales and marketing expenses at $12.2 million.
As of August 14, AXIL held $7.4 million in cash and equivalents, down from $4.5 million at fiscal year-end. The company maintained zero debt, with a current ratio of 3.66. Shares rose 5.56% to $6.65 in regular trading and an additional 3.76% in after-hours, bringing the total gain to 9.5% from the prior close of $6.30.
