CirTran Corporation Delivers Record Second Quarter: Q2 Revenue Increases 596%, Operating Profitability Accelerates

Company reports second consecutive quarter of operating profitability; first-half revenue surges 271% as
its product demand continues to accelerate

LAS VEGAS, Aug. 19, 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 second quarter and six months ended June 30, 2026. The Company delivered its strongest quarterly performance on record, with Q2 net sales surging 595.6% year over year and the Company achieving operating income for the second consecutive quarter.

SECOND QUARTER 2026 HIGHLIGHTS

Net sales reached $1,171,666 for the second quarter of 2026, up 595.6% from $168,435 in the prior-year period, driven by accelerating demand for the Company's vapor product line and expanded retail distribution. Gross profit surged to $619,024, a 628.7% increase from $84,942 in Q2 2025, reflecting a robust 52.8% gross margin—a significant expansion from 50.4% in the year-ago quarter.

CirTran generated income from operations of $160,628 in the second quarter, compared to an operating loss of $193,258 in Q2 2025, marking the Company's second consecutive quarter of operating profitability. Total operating expenses increased 64.8% to $458,396—a fraction of the 595.6% revenue growth rate—demonstrating powerful operating leverage. Employee costs rose only 4.9% to $128,567, while the 111.9% increase in SG&A expenses to $329,829 reflects continued strategic investment in promotional activities to support the Company's rapidly expanding sales.

Net loss from continuing operations narrowed 81.8% to $95,517, or ($0.02) per share, from $524,489, or ($0.11) per share, in Q2 2025. Total other expense improved 22.7% to $256,145 from $331,231, driven by a significantly smaller loss on derivative valuation of $41,411 compared to $127,850 in the prior-year period.

FIRST HALF 2026 HIGHLIGHTS

For the six months ended June 30, 2026, net sales reached $2,333,019, up 270.8% from $629,251. Gross profit grew 204.7% to $1,082,406, up from $355,236, on a 46.4% gross margin. The Company achieved income from operations of $196,750 for the first half, compared to an operating loss of $236,531 in the prior-year period. Total operating expenses increased just 49.6% to $885,656 against the 270.8% revenue increase, reflecting disciplined cost management as the business scales.

Net loss from continuing operations improved 74.5% to $161,254 from $632,761. Including income from discontinued operations of $2,274,031—primarily from the extinguishment of $2,324,279 in time-barred debt—net income for the first half totaled $2,112,777, or $0.43 per share, compared to a net loss of $718,186, or ($0.14) per share, in the first half of 2025.

MANAGEMENT COMMENTARY

"Our second quarter results exceeded all expectations," said Iehab Hawatmeh, Chairman and Chief Executive Officer. "We nearly seven-times'd our year-ago quarterly revenue, posted a second consecutive quarter of operating profitability, and reduced our continuing-operations loss by over 80%. The vapor product category continues to drive extraordinary growth, and our cost discipline means more of every revenue dollar is falling to the bottom line.

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.

SOURCE CirTran Corporation