AXIL Brands announced a nationwide distribution agreement with Walmart that will place its X30 LT in‑ear hearing protection plugs in more than 3,700 Walmart stores across the United States, with a launch scheduled for February 2026.
The deal represents AXIL’s largest single retail placement to date and expands the reach of its patented hearing‑enhancement technology beyond its existing wholesale and direct‑to‑consumer channels. By leveraging Walmart’s extensive footprint, AXIL aims to accelerate top‑line growth while managing the margin compression that typically accompanies large‑scale retail partnerships.
In its first quarter of fiscal 2026, AXIL reported total revenue of $6.9 million, up 17.2% year‑over‑year, and a 25% increase in revenue from AXIL‑branded hearing products. Gross margin fell to 67.6% from 71% in the prior year, a modest decline driven by a shift toward wholesale retail channels and the associated cost structure of large‑volume distribution.
CEO Jeff Toghraie said the partnership “will make our best‑in‑class hearing protection and enhancement technology available to millions of consumers who shop at Walmart every day.” He also noted that the company sees its Reviv3 hair and skincare line as a “hidden asset” that could grow beyond its current status as a dormant segment.
The announcement triggered a sharp market reaction, with the stock surging between 90% and 150% in pre‑market trading on December 11. The rally was driven by the scale of the Walmart deal, AXIL’s return to profitability and positive EBITDA in Q1 FY2026, and investor confidence in the company’s ability to execute a high‑volume retail expansion.
The Walmart rollout positions AXIL for accelerated growth and higher brand visibility in 2026 and beyond. While the shift to wholesale channels is expected to compress margins, the company’s operating leverage and cost controls are projected to offset the impact, and the Reviv3 segment offers an additional growth avenue as management seeks to unlock its potential.
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