AXIL Brands Reports Decrease in Q2 Revenue

AXIL Brands Inc. reported a decrease in net income to $633,706 for the second quarter ended November 30, 2024, down from $1,018,075 in the previous year, primarily due to lower sales and increased stock-based compensation. Revenue fell to $7.73 million compared to $8.42 million in the same quarter last year, impacted by the timing of holiday sales events and reduced advertising spending. The gross profit margin also decreased, with gross profit at $5.5 million, reflecting higher costs associated with sales to distributors. Operating expenses decreased slightly, but the overall cost of sales rose, contributing to a lower adjusted EBITDA of $1.01 million. The company maintains a working capital of over $10 million and expects to meet its financial requirements for at least the next year. AXIL is focusing on enhancing its direct-to-consumer campaigns and strategic partnerships to regain market share.