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CirTran Corporation Achieves Profitability in First Quarter 2026: Revenue Soars 152%, Company Swings to $2.2 Million Net Income

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CirTran (OTC:CIRX) reported a profitable first quarter 2026, swinging to net income of $2,220,701 ($0.45 per share) from a $155,436 loss a year earlier.

Net sales rose 152% to $1,161,353, gross profit increased 71.4% to $463,382 with a 39.9% margin, and income from operations reached $36,122 versus a prior operating loss.

According to CirTran, income from discontinued operations of $2,286,438, driven by extinguishment of $2,324,279 in time-barred debt, contributed significantly to results. Operating expenses grew 36.3% to $427,260, including flat employee costs and higher SG&A to support HUSTLER-branded vapor product growth.

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Positive

  • Net income of $2,220,701 vs. $155,436 loss year earlier
  • Diluted EPS improved to $0.45 from a $0.03 loss
  • Net sales grew 152% to $1,161,353 year-over-year
  • Gross profit increased 71.4% to $463,382
  • Income from operations of $36,122 vs. $43,273 operating loss
  • Extinguishment of $2,324,279 in time-barred debt obligations
  • Income from discontinued operations of $2,286,438
  • Operating expenses up 36.3%, well below 152% revenue growth

Negative

  • Net loss from continuing operations of $65,737, despite overall profitability
  • Gross profit growth 71.4% lagged 152% net sales growth
  • Selling, general and administrative expenses rose 61.0% to $297,240
  • Majority of net income driven by discontinued operations, not core business

News Market Reaction – CIRX

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In the May 21 session, CIRX gained 77.55%, reflecting a significant positive market reaction.

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LAS VEGAS, May 21, 2026 /PRNewswire/ -- CirTran Corporation (OTC: CIRX), a diversified consumer products company specializing in the manufacturing and distribution of HUSTLER®-branded products, today announced financial results for the first quarter ended March 31, 2026. The Company achieved a landmark quarter, reporting net income of $2,220,701, or $0.45 per share, compared to a net loss of $155,436, or ($0.03) per share, in the prior-year period.

Net sales reached $1,161,353 for the first quarter of 2026, up 152% from $460,816 in the same period last year. The growth was driven by increased demand for the Company's vapor product line and expanded retail distribution. Gross profit grew 71.4% to $463,382, up from $270,294 in the prior-year quarter, reflecting a 39.9% gross margin.

In a milestone achievement, CirTran generated income from operations of $36,122, compared to an operating loss of $43,273 in the first quarter of 2025—marking the Company's turn to operating profitability. Total operating expenses increased just 36.3% to $427,260, well below the 152% revenue growth rate, demonstrating strong operating leverage. Employee costs remained essentially flat at $130,020 (up only 0.9%), while the 61.0% increase in selling, general, and administrative expenses to $297,240 reflects strategic promotional investments to support higher sales volumes.

Net loss from continuing operations narrowed 39.3% to $65,737, from $108,272 in the prior-year quarter. The Company also recognized income from discontinued operations of $2,286,438, driven by the extinguishment of $2,324,279 in time-barred debt obligations. Together, these factors produced net income of $2,220,701 ($0.45 per share), compared to a net loss of $155,436 ($0.03 per share loss) in the first quarter of 2025.

"This was a defining quarter for CirTran," said Iehab Hawatmeh, Chairman and Chief Executive Officer. "We turned the corner to operating profitability, our revenue more than doubled for the second consecutive comparable period, and we achieved meaningful net income. The extinguishment of legacy debt obligations further strengthened our financial position. We are building on strong momentum and remain focused on scaling our HUSTLER®-branded product lines to drive sustained, profitable growth."

ABOUT CIRTRAN CORPORATION

CirTran Corporation (OTC: CIRX) Celebrating its 32nd anniversary, CirTran has evolved from its origins as an electronics contract manufacturer into a global producer and distributor of products serving the adult lifestyle and entertainment marketplace. Leveraging strategic partnerships and targeted initiatives, the Company continues to diversify its product portfolio and expand its international footprint. With a renewed focus on innovation and market responsiveness, CirTran is building a platform for sustainable growth in high-demand consumer segments. For more information, visit the Company's SEC filings at www.sec.gov.

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements involve known and unknown risks, uncertainties, and other factors that may cause actual results to differ materially from those expressed or implied. The Company undertakes no obligation to update forward-looking statements. Past performance is not indicative of future results.

Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/cirtran-corporation-achieves-profitability-in-first-quarter-2026-revenue-soars-152-company-swings-to-2-2-million-net-income-302778846.html

SOURCE CirTran Corporation

FAQ

How did CirTran (OTC:CIRX) perform financially in Q1 2026?

CirTran reported net income of $2,220,701, or $0.45 per share, in Q1 2026. According to CirTran, this compares with a net loss of $155,436, or $0.03 per share loss, in the first quarter of 2025.

What was CirTran (CIRX) Q1 2026 revenue and growth rate?

CirTran generated Q1 2026 net sales of $1,161,353, up 152% year-over-year. According to CirTran, growth was driven by higher demand for its vapor product line and expanded retail distribution of HUSTLER-branded consumer products.

Did CirTran achieve operating profitability in the first quarter 2026?

CirTran reported income from operations of $36,122 in Q1 2026, turning profitable at the operating level. According to CirTran, this compares with an operating loss of $43,273 in the first quarter of 2025.

How did extinguishment of debt affect CirTran’s Q1 2026 net income?

Debt extinguishment significantly boosted CirTran’s Q1 2026 results. According to CirTran, income from discontinued operations of $2,286,438 was driven by extinguishing $2,324,279 in time-barred debt, contributing heavily to total net income of $2,220,701.

What were CirTran’s gross profit and margin in Q1 2026?

CirTran reported Q1 2026 gross profit of $463,382 with a 39.9% gross margin. According to CirTran, gross profit increased 71.4% from $270,294 in the prior-year quarter, reflecting higher sales of its HUSTLER-branded products.

How did CirTran’s operating expenses change in Q1 2026?

Total operating expenses rose to $427,260 in Q1 2026, a 36.3% increase year-over-year. According to CirTran, employee costs were $130,020, up 0.9%, while selling, general and administrative expenses grew 61.0% to $297,240.

What was CirTran’s continuing operations result in Q1 2026?

CirTran recorded a net loss from continuing operations of $65,737 in Q1 2026. According to CirTran, this represents a 39.3% improvement versus a $108,272 loss from continuing operations in the first quarter of 2025.