The PennZone

BEVERLY HILLS, Calif. - PennZone -- AXIL Brands (N Y S E American: AXIL) is emerging as a compelling small-cap growth story at the intersection of consumer electronics, personal safety, and premium lifestyle products. With a newly signed national retail distribution agreement with Walmart (N A S D A Q: WMT), the rollout of its next-generation SonicShieldX™ hearing technology, and accelerating profitability, AXIL enters 2026 with multiple catalysts aligned for expansion.

A Milestone Partnership with the World's Largest Retailer

In December, AXIL announced a national retail distribution agreement with Walmart, representing the largest single retail placement in the company's history. Beginning February 2026, AXIL® X30 LT in-ear hearing protection products are expected to launch in over 3,700 Walmart stores across the United States.

This agreement dramatically expands AXIL's retail footprint and positions its patented hearing enhancement technology in front of millions of consumers nationwide. Walmart's selection process often favors brands with strong margins, product differentiation, and proven consumer demand—making the partnership a notable validation of AXIL's product portfolio and execution.

The AXIL X30 LT offers advanced dual-mode hearing protection and enhancement, allowing users to seamlessly switch between full noise protection and hear-through modes. With up to 25 dB of noise reduction, water and sweat resistance, and customizable comfort options, the product is designed for concerts, construction sites, sporting events, motorsports, and outdoor recreation—categories with broad mass-market appeal.

SonicShieldX™: A Proprietary Technology Platform Driving Differentiation

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At the core of AXIL's product innovation is its newly introduced SonicShieldX™ technology platform, designed to deliver superior hearing protection while preserving situational awareness and comfort.

In December, the company announced the upcoming launch of its MX II Series next-generation electronic earmuffs, marking a significant evolution of its over-ear product line. The flagship MX II PRO model will be available for preorder in January 2026, with deliveries expected in February 2026.

Key features of the MX II Series include:

• Advanced automatic sound compression for impulse noises above 85 dB
• Ambient sound amplification up to 6X for safe listening levels
• Bluetooth connectivity (MX II PRO) with customizable sound profiles
• Lightweight, sweat- and water-resistant design built for all-day wear
• Modular, customizable components with eco-friendly packaging

Additional MX II Electronic and Passive variants are scheduled for release in May 2026, broadening the product family and price points.

The MX II Series reflects AXIL's strategy of offering dual-function hearing solutions—products that protect hearing without sacrificing awareness, communication, or comfort.

GS Extreme 3.0: Strengthening a Proven Best-Seller

AXIL continues to build on its legacy products as well. In October, the company launched the GS Extreme 3.0 Tactical Earbuds, the third generation of AXIL's original and still best-selling product line.

The GS Extreme 3.0 incorporates SonicShieldX™ intellectual property and delivers:

• Advanced impulse noise filtering with enhanced voice clarity
• 15-hour battery life, more than double the previous generation
• IP65 water resistance and IP64 dust resistance
• Secure Lock-n-Loaded fit system for active use
• Improved bass and audio performance without sacrificing awareness

This launch strengthens AXIL's presence in tactical, industrial, and outdoor segments while reinforcing brand loyalty among its existing customer base.

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Financial Momentum and Improving Profitability

AXIL's operational progress is reflected in its most recent financial results for the first quarter of fiscal year 2026, ended August 31, 2025.

Key highlights include:

• Net sales of $6.9 million, up 17.2% year-over-year
• Gross margin of 67.6%, supporting strong unit economics
• Operating income of $0.4 million, compared to an operating loss in the prior year
• Net income of $0.3 million, versus a net loss a year earlier
• Earnings per share of $0.05 (basic), reflecting a return to profitability

With expanding retail distribution, new product launches, and improving operating leverage, AXIL appears positioned to build on this momentum throughout 2026.

An Emerging Global Consumer Brand with a Tight Share Structure

AXIL Brands operates globally, with sales across the United States, Canada, the European Union, and Asia, and maintains a diversified portfolio that also includes premium hair and skincare products under its Reviv3® brand.

Notably, AXIL has a relatively tight share structure, with approximately 6.75 million shares outstanding, a factor often watched closely by growth-oriented investors as revenue and earnings scale.

Looking Ahead

The combination of a transformational Walmart rollout, proprietary technology innovation, expanding product lines, and improving profitability places AXIL Brands at an important inflection point. As SonicShieldX™ products reach mass-market shelves in early 2026, AXIL's brand visibility and revenue potential could expand meaningfully.

For investors seeking exposure to a differentiated consumer technology company with increasing retail validation and financial traction, AXIL Brands is one to watch closely as 2026 unfolds.

More information:
www.axilbrands.com
www.reviv3.com

Company Contact:
AXIL Brands (N Y S E American: AXIL)
Jeff Toghraie, Chief Executive Officer
investors@goaxil.com
(801) 566-0240

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