The Q1 revenue decline is a known transitional event tied to the XCOR II launch. The $3.6M in XCOR II orders and strong cash position ($7.9M, no debt) suggest a potential Q2 revenue rebound. Monitor Q2 FY2027 results for conversion of those orders and any updated guidance.
Price Chart
Executive Summary
AXIL Brands reported Q1 FY2027 revenue of $6.1M, down 11.2% YoY, missing the $8.1M consensus. EPS of $0.05 diluted beat the $0.13 estimate on a GAAP basis, but the top-line miss reflects the planned XCOR-to-XCOR II transition and a non-repeating prior-year big-box order. The XCOR II launch generated $3.6M in orders through September 30, which will benefit Q2 revenue, and the company ended the quarter with $7.9M cash and no debt. The prior quarter's guidance for Q4 FY2026 revenue of $8M-$10M provides a benchmark for the upcoming quarters.
Key Financial Metrics
Key Facts
- Net revenues were $6.1M, down 11.2% YoY from $6.9M.
- Gross profit was $5.0M (82.6% of sales), including a $0.55M non-recurring IEEPA customs duty refund; underlying gross margin was ~73.6%.
- Income from operations was $437,000 vs $412,000 in the prior-year period.
- Net income was $0.4M, or $0.05 per diluted share, vs $0.3M, or $0.04 per diluted share.
- Adjusted EBITDA was $0.8M vs $0.7M.
- Net cash provided by operating activities was $3.8M vs $739,000 used in the prior-year period.
- Cash was $7.9M as of August 31, 2026, up from $4.5M as of May 31, 2026, with no outstanding borrowings.
- XCOR II launch generated orders exceeding $3.6M through September 30, 2026, with shipments underway in Q2 FY2027.
- The company received $0.9M in IEEPA customs duty refunds, with no claims remaining outstanding.
- Three strategic partners received ~25% ownership in Reviv3 for services, valued at $137,511 as a non-cash expense.
Financial Impact
Revenue miss of ~$2M vs consensus; EPS beat of $0.05 vs $0.13 estimate on a GAAP basis. XCOR II orders of $3.6M will convert to Q2 revenue.
Risk Factors
- Revenue decline of 11.2% YoY, driven by product transition and a non-repeating big-box order.
- Underlying gross margin of 73.6% (excluding IEEPA refund) is down from 67.6% reported last year, but in line with historical levels.
- Dependence on successful XCOR II conversion to revenue; order cancellations or returns could impact Q2 results.
- Reviv3 relaunch is still early-stage and may not contribute materially.
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001520138-26-000411 |
| Document: axil-20261006_8k.htm | 0001520138-26-000411 |
| Document: 0001520138-26-000411-index-headers.html | 0001520138-26-000411 |
| Document: 0001520138-26-000411-index.html | 0001520138-26-000411 |
| Document: 0001520138-26-000411.txt | 0001520138-26-000411 |
| 8-K Data (Synthetic) | 0001520138-26-000411 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | DEFA14A | $5.70 | awaiting T+20 | — | $5.54 (−2.81%) |
Oct 22, 2026 4d ago | DEF 14A | $5.70 | awaiting T+20 | — | $5.54 (−2.81%) |
Oct 20, 2026 6d ago | SC 13D/A | $5.80 | awaiting T+20 | — | $5.54 (−4.50%) |
Oct 6, 2026 20d ago | 8-K | $5.98 | awaiting T+20 | — | $5.54 (−7.36%) |
Apr 8, 2026 28w ago | Press Release | $7.14 $6.74 | ▼ −5.60% | ▼ −14.15% | $5.54 (−22.41%) |
Apr 8, 2026 28w ago | 8-K | $7.14 $6.74 | ▼ −5.60% | ▼ −14.15% | $5.54 (−22.41%) |
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