AXIL Brands Reports Q3 Financial Results with Decrease in Net Income but Revenue Growth

AXIL Brands, Inc., formerly known as Reviv3 Procare Company, reported its financial results for the third quarter and nine months ended February 28, 2025, revealing a net income of $576,662 for the quarter, a decrease from $781,091 in the same period last year. For the nine-month period, the company recorded a net income of $1,100,563, down from $1,953,618 in the prior year. The company’s revenue for the third quarter was $6,922,367, reflecting a 7% increase from $6,469,343 in the same quarter of the previous year. However, total revenue for the nine months decreased slightly to $20,506,213 from $20,997,289.

The company’s operating expenses for the third quarter decreased to $4,383,319 from $4,728,205 year-over-year, primarily due to reductions in sales and marketing expenses, which fell from $3,398,949 to $2,994,052. This reduction in expenses contributed to a positive income from operations of $583,109, compared to a loss of $103,879 in the same quarter last year. The decrease in net income for the nine-month period was attributed to a significant drop in revenue compared to the previous year, despite a reduction in operating expenses.

In terms of strategic developments, AXIL Brands completed a name change from Reviv3 Procare Company to AXIL Brands, Inc. on February 14, 2024, as part of its rebranding efforts. The company also successfully uplisted to the NYSE American stock exchange during the same month. The company continues to focus on its core business of manufacturing and marketing high-tech hearing and audio enhancement products, alongside professional quality hair and skin care products.

Operationally, AXIL Brands reported an increase in cash reserves, with cash at the end of the reporting period totaling $4,743,470, up from $3,253,876 at the end of the previous fiscal year. Accounts receivable also increased to $801,390 from $509,835, while inventory decreased to $2,744,436 from $3,394,023. The company’s total assets rose to $12,950,947, compared to $10,974,361 in the prior period, indicating a strengthening balance sheet. The company’s employee headcount remained stable, supporting its operational capabilities.

Looking ahead, AXIL Brands expressed intentions to expand its offline retail presence and enter international markets, although these plans are subject to various risks and uncertainties, including market conditions and economic factors. The company is also considering the potential divestiture of its hair and skin care business, which may impact future operations. The management remains cautious about the economic environment, including inflationary pressures and supply chain challenges, which could affect financial performance in the upcoming quarters.