AXIL Brands, Inc. reported second‑quarter 2025 results that showed a 5.2% year‑over‑year increase in net sales to $8.1 million, up from $7.7 million in the same period a year earlier. Operating income rose to $0.90 million from a loss of $140,702 in the prior year, while operating expenses fell to $4.6 million, a 1.7% decline from $4.8 million a year ago.
The company’s hearing protection and enhancement segment was the primary growth driver, generating $7.76 million in sales—an increase of roughly 24% from the prior year. In contrast, the hair and skin care division posted $362,947 in sales, a decline that reflects a 49.9% contraction in that legacy business. The sharp drop in the hair and skin care segment is consistent with management’s focus on divesting lower‑margin, lower‑growth product lines.
Gross margin contracted to 68.1% from 71.1% year‑over‑year, largely due to a lower mix of high‑margin hearing products and a one‑time accounts‑payable forgiveness that reduced operating income in the prior year. Operating expenses as a percentage of sales fell to 57.0% from 62.4% a year earlier, indicating disciplined cost control as the company scales its hearing portfolio.
"Our Q2 results demonstrate the effectiveness of our strategic pivot toward hearing protection," said CEO Jeff Toghraie. "The strong performance of the hearing segment, combined with disciplined expense management, has turned a prior‑year loss into a healthy operating profit. We remain confident that our expanding retail partnerships, including the upcoming Walmart rollout, will sustain this momentum.”
The earnings release underscores AXIL’s transition from a legacy hair‑care business to a high‑growth hearing‑technology company. While the company faces a margin compression headwind from the legacy segment, the robust performance of the hearing line and the scale of its retail expansion position AXIL for continued profitability. The results also validate the company’s investment in domestic manufacturing and supply‑chain resilience, which are expected to support future growth in the hearing market.
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