Byrna Technologies Stock Earnings Reports

Key investor takeaways: Byrna reported strong Q3 fiscal 2025 results with net revenue of $28.2M, up 35% year-over-year, driven by expanded dealer/chain sales and new AI-enabled advertising. Adjusted EBITDA was positive at $3.7M and GAAP net income was $2.2M. Management is guiding full-year revenue growth of 35–40% and expects a strong finish to the year driven by holiday promotions. Gross margin was 60% in Q3 (down from 62% year-over-year) due to channel mix, one-time compact launcher startup costs, and the ammo manufacturing ramp; management targets 63–65% gross margins next year as production efficiency improves. Cash and liquidity: cash, cash equivalents, and marketable securities were $9.0M at 8/31/25 (down from $25.7M in 11/2024) but management says cash has been improving since quarter end and expects inventory drawdown and further cash build into Q4. Inventory increased to $34.1M and accounts receivable rose to $8.9M due to dealer expansion. The company has no debt. Operations/marketing: AI-driven creative and ad placement materially increased web traffic (sessions rose from ~33k/day to 50k–70k/day), growing the opt-in email list to ~1.9M; conversion rates are temporarily lower but expected to re-accelerate toward historical levels (~1%, seasonally higher during holidays). Retail expansion: Byrna is now in 1,000+ stores with strong conversion in venues that offer shooting demos (shooting pods), and company-owned stores show promising sales run-rates. Product roadmap & strategy: management is building a connected safety platform (SOS integration/connected accessories) and plans new lower-price launchers (61-caliber) and portable protection devices plus lower-cost practice ammo to broaden the addressable market and create recurring revenue opportunities. Key risks/considerations: near-term margin pressure from new-product and ammo ramp, elevated inventory and receivables, seasonal timing of holiday fulfillment that could shift some revenue into FY2026, and uncertainty around how newly acquired broader ad audiences will convert at historical rates.