Earnings call transcript: AXIL Brands posts higher profit in Q1 2026

AXIL Brands posted a higher profit in fiscal first-quarter 2027, despite revenue falling 11.2% from the previous year. Earnings per share increased to $0.05 from $0.04, and net income rose to $420,000. The company's stock saw a 1.31% increase during regular trading, but then dropped 3.08% after hours due to concerns over revenue and product transition effects.

Analysts note that gross margin improved to 82.6% due to a $907,000 customs refund. Operating cash flow reached $3.8 million, a significant improvement from the previous year's $739,000 outflow. The company ended the quarter with $7.9 million in cash and no debt. AXIL's sales decline was attributed to a shift from XCOR I to XCOR II, the next-generation wireless platform, and the absence of a significant retail order.

Direct-to-consumer revenue remained strong, rising to $3.9 million, or 64.2% of total revenue. Management highlighted the company's focus on higher-margin direct sales and diversification efforts. AXIL's outlook for fiscal 2027 includes expected top-line and bottom-line growth, driven by XCOR II's commercial availability and an expanding order book.