BYRN

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance fell short of expectations due to a 13% decline in website traffic and elevated retail inventory levels following Q1 restocking. Management is pivoting from a narrow core audience to a systematic demand generation model targeting 50 million potential buyers across new consumer segments. The company separated marketing and sales functions to increase accountability and improve the speed of response to changing demand environments. Operational discipline is being reinforced through a new rolling financial model that connects real-time e-commerce trends and retail sell-through directly to production. Manufacturing was streamlined by reducing launcher assembly lines from four to two and outsourcing ammunition production to lower-cost external suppliers. The acquisition of Hero Defense Systems provides a 'product ladder' with more accessible price points and discreet form factors to attract entry-level consumers. Fiscal 2026 is no longer expected to be a revenue growth year as the company executes a strategic transition against current demand signals. Q3 is characterized as a transition period with new marketing initiatives ramping, while Q4 is expected to show improvement driven by holiday seasonality. Management expects to exit the year with adjusted gross margins at or above 62% and a $5 million reduction in physical inventory. Core brand repositioning is scheduled for the 2026 holiday season, followed by a complete brand and website overhaul in Q1 2027. The Hero acquisition is expected to close within 30 days, with integration into the Byrna digital ecosystem planned for late Q3 and Q4. Recorded a $10.4 million non-cash charge related to the closure of the Fort Wayne ammunition facility and strategic product rationalization. Shifted ammunition sourcing to external suppliers after a make-versus-buy analysis confirmed lower fully loaded costs compared to internal operations. Reported a $1.1 million tariff refund which partially offset inventory write-downs and impairment losses in the cost of goods sold. Inventory levels were reduced to $30.4 million, primarily reflecting the write-down of raw materials and equipment from discontinued manufacturing processes. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Q2 serves as the baseline for OpEx, but management expects an incremental investment of approximately $250,000 per month for new marketing agencies. These investments in commercial and consumer acquisition programs will precede their full potential revenue contributions. Hero fills a portfolio gap between $20 sprays and $400 launchers with a target price point around $250. The product's less 'gun-forward' form factor is intended to appeal to consumers who are not yet ready for a full launcher system. Management plans to reduce Hero's build cost through re-engineering while maintaining margins similar to Byrna's core products. Wholesale revenue was pressured by slow reorders as partners worked through high inventory levels following the holiday season. A pilot program moving products from gun cases to dedicated end caps in 20 stores resulted in monthly purchases increasing from $81,000 to $200,000. The Academy Sports rollout shifted from Q2 into Q3 due to timing adjustments on the partner's side. The decision to stop in-house ammunition production is a permanent shift driven by new external supply availability that was not present when the facility was built. The move is expected to improve gross margins by sourcing at a lower cost than internal production while maintaining quality standards.

This article first appeared on GuruFocus. Revenue: $16.4 million for Q2 2026, down from $28.5 million in the prior-year period. E-commerce Sales: Decreased by $5.8 million or 35% year-over-year. Domestic Dealer Channel: Decreased by $3.5 million or 47%. International Dealer and Distributor Channel: Decreased by $1.2 million or 43%. Gross Profit: $1.8 million or 11% of net revenue, compared to $17.6 million or 62% in Q2 2025. Adjusted Gross Profit: $10.1 million, representing an adjusted gross margin of approximately 62%. Operating Expenses: $14.6 million, up 3% from $14.2 million in Q2 2025. Net Loss: $10.1 million, compared to net income of $2.4 million in Q2 2025. Adjusted EBITDA: Negative $600,000, compared to $4.3 million in Q2 2025. Cash and Equivalents: $10.4 million as of May 31, 2026. Inventory: $30.4 million as of May 31, 2026, down from $33.1 million at February 28, 2026. Website Traffic: Byrna.com sessions down 13% year-over-year. Conversion Rate: Averaged 0.59%, down from 1% in Q2 2025. Average Order Value: Declined 19% to approximately $302. Warning! GuruFocus has detected 3 Warning Signs with BYRN. Is BYRN fairly valued? Test your thesis with our free DCF calculator. Release Date: July 06, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Byrna Technologies Inc (NASDAQ:BYRN) is implementing tactical changes to demand generation and cost structure, aiming to return to growth. The company has established three key near-term priorities: improving consumer conversion and retail productivity, changing demand generation strategies, and connecting demand more tightly to production and inventory. Byrna's 'Try Before You Buy' program has shown strong conversion rates near 30%, indicating potential for increased consumer engagement. The company is expanding its retail presence with dedicated Byrna in caps, which has led to increased purchases from retail partners. Byrna Technologies Inc (NASDAQ:BYRN) has entered into a definitive agreement to acquire HERO Defense Systems, which will expand its product offerings and potentially attract a broader consumer base. Q2 2026 revenue of $16.4 million was significantly lower than the prior-year period's $28.5 million, reflecting challenges in e-commerce and retail channels. E-commerce sales decreased by 35% due to reduced website traffic and lower conversion rates. The company reported a net loss of $10.1 million for Q2 2026, compared to a net income of $2.4 million in Q2 2025. Gross profit margin dropped to 11% from 62% in the prior year, impacted by inventory write-downs and impairment losses. Byrna Technologies Inc (NASDAQ:BYRN) anticipates fiscal 2026 will not be a revenue growth year, with Q3 expected to remain a transition quarter. Q: Can you discuss how you're managing your operating expense structure given the lower revenue expectations and the need to reformulate marketing and realign the organization? A: Laurilee Kearnes, CFO: We are using Q2 as a baseline for operating expenses but will make some investments in marketing agencies, which will precede revenue. These investments are estimated at $250,000 per month. Variable selling expenses will fluctuate with sales, especially in Q4 due to the holiday season. We aim to hold other operating expenses steady while hiring for new sales and marketing positions. Q: Can you provide an update on the rollout with Academy and feedback from retail partners regarding retail sell-through? A: Conn Davis, CEO: We are focusing on enhancing consumer education and product visibility in retail environments. Retail partners remain excited about Byrna, but high inventory levels from last year's holiday restocking affected reordering. The Academy rollout shifted from Q2 to Q3 due to timing on their side. Q: What are the expected annual revenues from the HERO acquisition, and how does it fit with Byrna's pricing strategy? A: Conn Davis, CEO: HERO products are priced lower than Byrna's, filling a gap between our sprays and launchers. We aim to reduce HERO's build cost to offer a solution around $250, opening new consumer opportunities. HERO's form factor and price point will attract a broader audience. Q: How have e-commerce traffic and conversion trended recently, and when will HLK's new messaging impact traffic? A: Conn Davis, CEO: Traffic and conversion have remained consistent from Q2 into Q3. HLK's new messaging is in early stages and will ramp up in Q3, with full impact expected by Q4. Increased engagement in our "find the right launcher" quiz and "try-before-you-buy" program are positive indicators. Q: How will the HERO acquisition be integrated into Byrna's offerings, and what is the timeline for this integration? A: Conn Davis, CEO: Initially, we will promote HERO's existing product line. Integration into byrna.com is expected by Q3/Q4, with full brand alignment by Q1 2027. This will create a unified consumer experience and broaden our product offerings. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

ANDOVER, Mass., July 09, 2026 (GLOBE NEWSWIRE) -- Byrna Technologies Inc. (“Byrna” or the “Company”) (Nasdaq: BYRN), a personal defense technology company specializing in the development, manufacture, and sale of innovative less-lethal personal security solutions, today reported select financial results for its fiscal second quarter (“Q2 2026”) ended May 31, 2026. Fiscal Second Quarter 2026 and Recent Operational Highlights Entered into a binding agreement to purchase HERO Defense Systems, LLC, a complementary less-lethal self-defense company, expanding Byrna’s product portfolio across additional price points and everyday-carry form factors. Initiated and recently expanded its “try before you buy” pilot program, following early results achieving an approximately 30% conversion rate among participating customers who received a demo unit, with most conversions occurring in the second week of the two-week trial period. Generated over 150,000 responses on the “Find the Right Launcher” guided shopping experience on Byrna.com since it was introduced in April. Customers who used the product education tool converted at approximately twice the conversion rate of the overall website. Reduced launcher assembly operations from four lines at the end of fiscal Q1 to two lines by May and ceased in-house ammunition manufacturing to better align production with current demand, improve cost efficiency, and support the reduction of finished goods inventory over time. Activated its Fox Sports media partnership through iHeartMedia in June, expanding Byrna’s reach to a broad, highly engaged sports audience across radio and digital platforms. Realigned sales and marketing functions and initiated a search for dedicated leaders to support retail growth and brand expansion. Appointed HLK as agency of record to strengthen brand messaging, customer acquisition, and product education initiatives. Appointed Acceleration Partners as its influencer and affiliate marketing agency to build a broader social creator program, relaunch Byrna’s affiliate marketing program and improve the Company’s ability to measure customer acquisition across its e-commerce channels. Promoted industry veteran Matthew Campagni to Chief Strategy Officer to lead the Company’s strategic planning initiatives and support cross-functional execution. Fiscal Second Quarter 2026 Financial ResultsResults compare Q2 2026 to the 2025 fiscal second quarter ended May 31, 2025, unless otherwise indicated. Net revenue for Q2 2026 was $16.4 million, compared to $28.5 million in the fiscal second quarter of 2025 (“Q2 2025”). The approximately 43% year-over-year decrease was driven primarily by a decrease in e-commerce sales and slower reorder activity from dealers and chain stores following substantial restocking in fiscal Q1 and slower-than-expected sell-through. Gross profit for Q2 2026 was $1.8 million (11% of net revenue), down from $17.6 million (62% of net revenue) in Q2 2025. Reported gross margin included a one-time $5.9 million inventory write-down and a $3.5 million impairment of equipment, this was partially offset by a $1.1 million tariff refund recorded in cost of goods sold. Excluding these items, adjusted gross profit was $10.1 million, representing adjusted gross margin of approximately 62%. Operating expenses for Q2 2026 were $14.6 million, compared to $14.2 million for Q2 2025, an increase of 2.7%. The increase primarily reflected an impairment charge of $1 million as well as continued investment in marketing, partially offset by the change in variable selling expenses associated with a decrease in sales. Net income (loss) for Q2 2026 was $(10.1) million, compared to $2.4 million for Q2 2025. Net loss included non-cash impairment and inventory write-down charges of $10.4 million related to the shutdown of our ammunition manufacturing facility in Fort Wayne and strategic product rationalization. A tax benefit of $2.7 million was also recorded for the quarter. Adjusted EBITDA1, a non-GAAP metric reconciled below, for Q2 2026 totaled $(0.6) million, compared to $4.3 million in Q2 2025. Cash, cash equivalents and marketable securities as of May 31, 2026 totaled $10.4 million, compared to $15.5 million at November 30, 2025. Inventory on May 31, 2026 totaled $30.4 million, compared with $32.7 million on November 30, 2025. The Company is focused on lowering inventory over time and improving working capital efficiency. Management Commentary“Our second quarter results did not reflect the level of performance we believe Byrna can deliver,” said Byrna CEO Conn Davis. “We expected the quarter to begin a transition period, but continued softness in our direct-to-consumer channel as well as a slower pace of reorders across retail partners led to a steeper reset than we initially expected. “In e-commerce, web traffic remained weak, and while conversion rates showed modest improvement as a result of our website changes, overall conversion levels and average order value were below where we expected. In retail, our partners entered the quarter with elevated inventory levels following meaningful post-holiday restocking in Q1. Sell-through during the quarter did not occur at a pace that supported consistent reorder activity, which impacted revenue across both dealer and big box channels. “From an operational standpoint, we took actions during the quarter to better align production and operating costs with current demand. We reduced production capacity in our launcher facility and exited in-house ammo manufacturing where we were not cost competitive. These actions reduce costs, operating complexity, and establish a more balanced operating baseline that should allow us to work down physical inventory through the second half of the year. “We also advanced a number of initiatives designed to improve demand over both the near and longer term. Our top operational priority is improving customer conversion and retail productivity across all channels. “We are seeing encouraging early results from our “try before you buy” program, which is attracting new customers to the brand and generating conversion rates of approximately 30%. This represents a meaningful improvement versus traditional e-commerce and provides a scalable pathway to reaccelerate direct-to-consumer growth over time. “On the retail side, we are focused on continuing our store expansion while also working closely with our partners to improve customer discovery and sell-through. Initiatives such as in-store training, enhanced merchandising, including end-cap displays, and expanded demo experiences are producing stronger results in the locations where they have been implemented. Our focus now is applying those learnings more consistently across the wider footprint. “In parallel, our messaging pivot is underway, as we work to broaden our reach and engage a wider set of customer segments. This includes partnerships such as Fox Sports, along with new social and influencer programs designed to introduce Byrna to previously underpenetrated audiences while continuing to build on the existing foundation with our core customers. We believe this approach will expand our addressable market while supporting more consistent and durable demand over time. We are also in the process of bringing on experienced leaders across marketing and retail to strengthen execution, improve accountability and support the next phase of growth. “Based on current expectations, fiscal 2026 will not be a revenue-growth year. Q2 reset the revenue baseline, and we are planning the business around current demand trends rather than assuming a quick return to prior growth rates. We expect improvement from the first half of the fiscal year to the second half, as retailers prepare for the holidays and more of our marketing, conversion and customer-acquisition initiatives enter the market. “We are building from a more realistic baseline, with the opportunity to improve as these initiatives begin to contribute. Our focus is on improving website traffic and conversion, strengthening retail sell-through and reorder cadence, reducing inventory and improving working capital efficiency. We believe the actions underway position Byrna to finish fiscal 2026 on stronger footing and enter fiscal 2027 with a business capable of delivering more consistent growth.” Conference CallThe Company’s management will host a conference call today, July 9, 2026, at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss these results, followed by a question-and-answer period. Toll-Free Dial-In: 877-709-8150International Dial-In: +1 201-689-8354Confirmation: 13761119 Please call the conference telephone number 5-10 minutes prior to the start time of the conference call. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 949-574-3860. The conference call will be broadcast live and available for replay here and via the Investor Relations section of Byrna’s website. About Byrna Technologies Inc.Byrna is a personal defense technology company specializing in the development, manufacture, and sale of innovative less-lethal personal security solutions. For more information on the Company, please visit the corporate website here or the Company’s investor relations site here. The Company is the manufacturer of the Byrna® CL, Byrna® LE and Byrna® SD personal security devices, state-of-the-art handheld CO2 powered launchers designed to provide a less-lethal alternative to a firearm for the consumer, private security, and law enforcement markets. To purchase Byrna products, visit the Company’s e-commerce store. Forward-Looking StatementsThis news release contains "forward-looking statements" within the meaning of the federal securities laws. All statements contained in this news release, other than statements of current and historical fact, are forward-looking statements. Often, but not always, forward-looking statements can be identified by the general use of words such as "plans," "expects," "intends," "anticipates," and "believes" and statements that certain actions, events or results "may," "could," "would," "should," "might," "occur," or "be achieved," or "will be taken." Forward-looking statements in this news release include but are not limited to our statements related to our expected net revenue and top-line performance during the transition period and in future periods, and our expectation that our operating results will continue to reflect the transition we are working through; our expectation that the operational and cost actions taken during the quarter, including the reduction of launcher assembly from four lines to two and the decision to cease in-house ammunition manufacturing, will reduce costs, operating complexity, and finished goods inventory over time and establish a more balanced and cash-efficient operating baseline; our plans to reduce inventory levels over time and improve working capital efficiency, including our expectation of working down physical inventory during the second half of fiscal 2026; the anticipated benefits and integration of our recently completed acquisition, including the expansion of the Company’s price points and product form factors; the early results, conversion rates, and scalability of our “try before you buy” program, and its potential to reaccelerate direct-to-consumer growth over time; the anticipated impact of our “Find the Right Launcher” guided shopping experience on website conversion; our plans to improve customer conversion, retail productivity, and sell-through across our e-commerce, dealer, and big-box channels, including through in-store training, enhanced merchandising and end-cap displays, and expanded demonstration experiences, and our intention to apply those initiatives more consistently across our retail footprint; our continued retail store expansion and our ability to collaborate with retail partners and grow productivity per store; our brand and messaging pivot and related marketing initiatives intended to broaden our reach and expand our addressable market, including our Fox Sports partnership activated through iHeartMedia, the appointment of HLK as our agency of record, and the engagement of Acceleration Partners for our influencer and affiliate marketing programs; our ability to attract, onboard, and retain experienced marketing and retail leaders, including the contributions of Matthew Campagni as Chief Strategy Officer, and to align the organization around near-term execution priorities while building toward our long-term strategic vision; brand awareness of Byrna and continued acceptance of the less-lethal personal defense market; our expectation that meaningful operational changes currently underway in demand generation, website conversion, retail productivity, and internal forecasting will, over time, result in improved operating performance; our expectation that we will emerge from this transition year with a more scalable and cash-efficient operating model; and, Byrna’s positioning for sustained and durable growth in future fiscal years. Forward-looking statements are not, and cannot be, a guarantee of future results or events. Forward-looking statements are based on, among other things, opinions, assumptions, estimates, and analyses that, while considered reasonable by the Company at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies, and other factors that may cause actual results and events to be materially different from those expressed or implied. Any number of risk factors could affect our actual results and cause them to differ materially from those expressed or implied by the forward-looking statements in this news release, including, but not limited to, disappointing market responses to current or future products or services; prolonged, new, or exacerbated disruption of our supply chain; the further or prolonged disruption of new product development; production or distribution disruption or delays in entry or penetration of sales channels due to inventory constraints, competitive factors, increased transportation costs or interruptions, including due to weather, flooding or fires; prototype, parts and material shortages, particularly of parts sourced from limited or sole source providers; determinations by third party controlled distribution channels, including Amazon, not to carry or reduce inventory of the Company’s products; determinations by advertisers or social media platforms, or legislation that prevents or limits marketing of some or all Byrna products; the loss of marketing partners; challenges arising from the transition to the new executive leadership and execution of new strategic priorities by the Company’s new management team; the risk that the anticipated benefits of our recently completed acquisition are not realized, or that we are unable to integrate the acquired business on the anticipated timeline or at all; the risk that our decision to cease in-house ammunition manufacturing increases our reliance on third-party ammunition suppliers, disrupts supply, or does not achieve anticipated cost savings; the risk that our “try before you buy” program does not convert participants at anticipated rates, is not scalable, or does not prove economically accretive; the risk that our planned reductions in inventory do not materialize on the anticipated timeline or result in additional inventory write-downs or reserves; investments in e-commerce enhancements or digital capabilities, including improvements to Byrna.com, do not yield anticipated improvements in conversion rates, customer acquisition, or revenue; the risk that efforts to broaden brand messaging or expand into new customer segments do not achieve anticipated market penetration or revenue results; increases in marketing expenditure may not yield expected revenue increases; potential cancellations of existing or future orders including as a result of any fulfillment delays, introduction of competing products, negative publicity, or other factors; product design or manufacturing defects or recalls; litigation, enforcement proceedings or other regulatory or legal developments; changes in consumer or political sentiment affecting product demand; regulatory factors including the impact of commerce and trade laws and regulations; changes in domestic or international trade policy, including the imposition of new or increased tariffs, export controls or other trade restrictions, that could result in an increase in the cost of materials, components or finished goods used or sold by the Company, and/ or that could disrupt the Company’s supply chain, or otherwise adversely affect the Company’s costs, revenues, or results of operations; the risk that price increases implemented in the first quarter are not sustained, are reversed in response to market or competitive conditions, or otherwise fail to contribute to gross margin improvement as anticipated; the risk that anticipated manufacturing efficiency improvements do not materialize or are offset by increases in input, labor, or overhead costs; the risk that planned retail store launches, including the targeted addition of up to 250 new retail locations, are delayed, reduced in scope, or not executed by retail partners on the anticipated timeline; and, future restrictions on the Company’s cash resources, increased costs and other events that could potentially reduce demand for the Company’s products or result in order cancellations. The order in which these factors appear should not be construed to indicate their relative importance or priority. We caution that these factors may not be exhaustive; accordingly, any forward-looking statements contained herein should not be relied upon as a prediction of actual results. Investors should carefully consider these and other relevant factors, including those risk factors in Part I, Item 1A, ("Risk Factors") in the Company’s most recent Form 10-K, and should understand it is impossible to predict or identify all such factors or risks, and should not consider the foregoing list, or the risks identified in the Company’s SEC filings, to be a complete discussion of all potential risks or uncertainties, and should not place undue reliance on forward-looking information. The Company assumes no obligation to update or revise any forward-looking information, except as required by applicable law. Investor Contact:Tom Colton and Alec WilsonGateway Group, [email protected] Non-GAAP Financial Measures In addition to providing financial measurements based on generally accepted accounting principles in the United States (GAAP), we provide an additional financial metric that is not prepared in accordance with GAAP (non-GAAP) with presenting non-GAAP adjusted EBITDA. Management uses this non-GAAP financial measure, in addition to GAAP financial measures, to understand and compare operating results across accounting periods, for financial and operational decision making, for planning and forecasting purposes and to evaluate our financial performance. We believe that this non-GAAP financial measure helps us to identify underlying trends in our business that could otherwise be masked by the effect of certain expenses that we exclude in the calculations of the non-GAAP financial measure. Accordingly, we believe that this non-GAAP financial measure reflects our ongoing business in a manner that allows for meaningful comparisons and analysis of trends in the business and provides useful information to investors and others in understanding and evaluating our operating results, enhancing the overall understanding of our past performance and future prospects. This non-GAAP financial measure does not replace the presentation of our GAAP financial results and should only be used as a supplement to, not as a substitute for, our financial results presented in accordance with GAAP. There are limitations in the use of non-GAAP measures, because they do not include all the expenses that must be included under GAAP and because they involve the exercise of judgment concerning exclusions of items from the comparable non-GAAP financial measure. In addition, other companies may use other non-GAAP measures to evaluate their performance, or may calculate non-GAAP measures differently, all of which could reduce the usefulness of our non-GAAP financial measure as a tool for comparison. Adjusted EBITDA Adjusted EBITDA is defined as net (loss) income as reported in our condensed consolidated statements of operations and comprehensive (loss) income excluding the impact of (I) depreciation and amortization; (ii) income tax provision (benefit); (iii) interest income (expense); (iv) stock-based compensation expense, (v) impairment loss, and (vi) one time, non-recurring other expenses or income. Our Adjusted EBITDA measure eliminates potential differences in performance caused by variations in capital structures (affecting finance costs), tax positions, the cost and age of tangible assets (affecting relative depreciation expense) and the extent to which intangible assets are identifiable (affecting relative amortization expense). We also exclude certain one-time and non-cash costs. Reconciliation of Adjusted EBITDA to net (loss) income, the most directly comparable GAAP measure, is as follows (in thousands): Adjusted Cost of goods sold and gross profit Adjusted cost of goods sold is defined as cost of goods sold as reported in our condensed consolidated statements of operations and comprehensive (loss) income excluding the impact of (i)impairment loss; (ii) write down of ammunition inventory; (iii) inventory reserve due to strategic product rationalization, and (iv) refunds of previously paid tariffs. Our Adjusted cost of goods sold measure eliminates potential differences in performance caused by certain one-time or unusual events. Adjusted gross profit is defined as revenue as reported in our condensed consolidated statement of operations and comprehensive (loss) income less Adjusted cost of goods sold. Reconciliation of Adjusted cost of goods sold to Cost of goods sold, as well as a reconciliation of Adjusted Gross profit to Gross profit, the most directly comparable GAAP measures, are as follows (in thousands): ________________________________1 See non-GAAP financial measures at the end of this press release for a reconciliation and a discussion of non-GAAP financial measures.

Interested in Byrna Technologies Inc.? Here are five stocks we like better. Byrna Technologies reported a sharp Q2 revenue decline to $16.4 million from $28.5 million a year earlier, with management calling the quarter a “reset” caused by weaker e-commerce traffic, lower conversion rates, and slower retail reorders. The company’s reported profitability was hit by one-time charges, including inventory write-downs and equipment impairments tied to the Fort Wayne facility closure, leading to a $10.1 million net loss and negative adjusted EBITDA of $600,000. Management outlined a broad turnaround plan focused on improving digital conversion, expanding retail productivity, shifting marketing strategy, and acquiring HERO Defense Systems, while warning that fiscal 2026 will not be a revenue growth year. MarketBeat Week in Review – 07/28 - 08/01 Byrna Technologies (NASDAQ:BYRN) reported a steep year-over-year decline in fiscal second-quarter revenue as weaker e-commerce traffic, lower conversion rates and slower retail reorders weighed on results, while management described the period as a “reset” tied to a broader overhaul of the company’s marketing, retail and operating structure. Chief Executive Officer Conn Davis said the company’s fiscal second quarter ended May 31, 2026, “came in below our expectations” and did not reflect what management believes Byrna can deliver. Revenue was $16.4 million, down from $28.5 million in the prior-year period. → SK Hynix’s Nasdaq Listing Could Reset the AI Memory Trade Why Byrna Could Be the Top Defense Stock to Watch Now Davis said two factors drove the shortfall: continued pressure in e-commerce, where website traffic declined 13% year over year, and elevated inventory levels at retail partners after post-holiday restocking in the fiscal first quarter. Sell-through at retail did not support the level of reorders Byrna had expected, he said. “The quarter ultimately became a steeper reset than we originally expected,” Davis said. “The results reinforced why the transformation underway is necessary and why we are moving with urgency.” → 2 Short Squeezes for Summer Speculation: What the Bears Are Getting Wrong 5 aerospace and defense stocks under $5 Chief Financial Officer Lauri Kearnes said e-commerce sales through Byrna’s website and Amazon fell by $5.8 million, or 35%, compared with the prior-year period, due to reduced traffic and lower conversion rates. Domestic dealer channel sales, including dealers, distributors and chain stores, declined $3.5 million, or 47%, driven mainly by slower reorder activity after substantial fiscal first-quarter restocking and weaker-than-expected sell-through. International dealer and distributor product sales fell $1.2 million, or 43%, due to large orders in the prior-year quarter that did not repeat in the current year. → How TeraWulf’s Anthropic Deal Booted Up a $19B AI Empire Davis provided additional detail on e-commerce trends, saying byrna.com generated about 2.6 million sessions in the quarter, down 13% year over year. Conversion averaged 0.59%, compared with 1% in the year-ago quarter, while average order value declined 19% to about $302. Sessions fell from about 1.1 million in March to roughly 783,000 in April and 779,000 in May. During the quarter, Davis said Byrna continued to spend through historical media and influencer relationships, but those channels produced less traffic and fewer purchases. He said the company is now working to address both customer acquisition and the on-site experience after consumers arrive at byrna.com. Byrna reported gross profit of $1.8 million, or 11% of net revenue, compared with $17.6 million, or 62% of net revenue, in the prior-year period. Kearnes said reported gross margin included a one-time $3.6 million inventory write-down, a $3.5 million impairment loss on manufacturing equipment and a $2.3 million inventory reserve tied to strategic product rationalization. Those items were partly offset by a $1.1 million tariff refund recorded in cost of goods sold. Excluding those items, adjusted gross profit was $10.1 million, representing adjusted gross margin of about 62%. Kearnes said Byrna expects adjusted gross margin to remain near or above that level through the balance of the year. The $3.6 million inventory write-down and $3.5 million impairment loss were directly related to the closure of Byrna’s Fort Wayne ammunition manufacturing facility, Kearnes said. The $2.3 million inventory reserve involved finished goods and raw materials that will either be end-of-lifed or not used because of engineering process changes. Operating expenses were $14.6 million, up 3% from $14.2 million in the prior-year quarter. The increase primarily reflected a $1 million impairment charge and continued marketing investment, partly offset by lower variable selling expenses tied to lower sales. Byrna posted a net loss of $10.1 million, compared with net income of $2.4 million in the prior-year quarter. Adjusted EBITDA was negative $600,000, compared with positive $4.3 million a year earlier. Cash, cash equivalents and marketable securities totaled $10.4 million at quarter end, compared with $9.6 million at Feb. 28, 2026, and $15.5 million at Nov. 30, 2025. Kearnes said accounts receivable collections supported cash during the quarter. Byrna ended the quarter with no debt. Davis said Byrna’s near-term priorities are improving consumer conversion and retail productivity, changing how the company builds demand, and linking demand more closely to production, inventory and cash generation. On the digital side, Davis highlighted Byrna’s “Find the Right Launcher” online experience, which has generated more than 150,000 completed responses. He said consumers who complete the quiz convert at about twice the rate of the overall website, and Byrna is using the data to improve product comparisons, landing pages, onboarding and follow-up communications. The company expects to launch personalized guided product selection experiences across byrna.com within two weeks, he said. Davis also discussed Byrna’s limited “Try Before You Buy” program, under which consumers pay $50 to receive a demonstration unit, training ammunition, CO2 and educational materials for a two-week trial. The fee becomes a purchase credit. Davis said the program has generated conversion near 30%, though it has been small and has not yet meaningfully contributed to revenue. Byrna is expanding the next phase to allow eight times as many consumers to participate. In retail, Davis cited a test with one premier chain partner that moved Byrna from basic shelf placement to dedicated end caps in more than 20 stores. Before the change, the partner averaged about $81,000 in monthly purchases. Purchases rose to about $200,000 in April, the first full month after the rollout and expanded assortment, Davis said. Davis said Byrna has historically relied too heavily on a narrow audience and lacked visibility into which messages, media channels and partnerships created customers. With support from HLK, the company has identified priority consumer segments including personal safety-minded urban professionals, security-minded suburban homeowners and preparedness-focused outdoor enthusiasts. Davis said those segments represent more than 50 million likely buyers Byrna has not historically addressed in a focused way. The company is shifting toward safety- and use-case-first messaging across areas such as home protection, outdoor activity, travel and small business activity. Davis said Byrna separated its marketing and sales functions in June to create clearer accountability and faster responses to performance issues. Byrna also discussed its definitive agreement to acquire HERO Defense Systems. Davis said HERO would add complementary less-lethal products that sit below and adjacent to Byrna’s launcher platform, including the HERO 2020 irritant launcher and AIIRO pepper gel platform. The transaction includes $625,000 in cash, $625,000 in restricted Byrna shares and a performance-based royalty tied to future net sales of HERO products and derivative products. Byrna expects the deal to close within about 30 days, subject to customary conditions. In response to analyst questions, Davis said HERO products could help Byrna address a gap between its roughly $20 sprays and its SD launcher at about $400, with a potential product solution around the $250 range after cost reductions. Kearnes said HERO had been profitable as a small company and that margins were similar to Byrna’s, though integration work remains ahead. Davis said fiscal 2026 “will not be a revenue growth year,” adding that the second quarter reset the revenue baseline. Management expects improvement from the first half to the second half as retailers prepare for the holidays and new marketing and consumer acquisition initiatives enter the market. He said the third quarter remains a transition period, while the company expects the fourth quarter to improve with holiday season activity and broader deployment of its marketing, conversion and retail initiatives. Byrna reduced launcher assembly from four production lines to two in May and stopped manufacturing ammunition in-house after determining that qualified external suppliers can produce ammunition at lower fully loaded cost. Davis said the company is now producing below the current sales rate to reduce inventory while preserving the ability to add capacity if demand improves. Kearnes said Byrna expects cash to hold through the third quarter and is targeting a $5 million inventory reduction in the fourth quarter to generate cash. She said the company expects to end the year with more cash than it currently has, while remaining debt-free. Byrna Technologies, Inc (NASDAQ: BYRN) designs, develops and markets non-lethal personal security devices and accessories intended to provide an alternative to traditional firearms. The company's flagship offerings deploy impact projectiles and chemical irritants in a compact, pistol-style form factor. Its product portfolio includes the Byrna SD and Byrna HD launchers, which utilize proprietary kinetic and irritant cartridges, as well as the lightweight Byrna Air, a CO₂-powered variant optimized for close-quarters defense. In addition to its core self-defense launchers, Byrna Technologies supplies a range of consumables and support products, including cartridges loaded with pepper-based irritants, inert training rounds, holsters, safe-carry cases and speed loaders. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Byrna Technologies Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Byrna (NASDAQ:BYRN) and the rest of the aerospace and defense stocks fared in Q1. Emissions and automation are important in aerospace, so companies that boast advances in these areas can take market share. On the defense side, geopolitical tensions–whether it be Russia’s invasion of Ukraine or China’s aggression toward Taiwan–have highlighted the need for consistent or even elevated defense spending. As for challenges, demand for aerospace and defense products can ebb and flow with economic cycles and national defense budgets, which are unpredictable and particularly painful for companies with high fixed costs. The 32 aerospace and defense stocks we track reported a very strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.8% while next quarter’s revenue guidance was 3.6% above. Thankfully, share prices of the companies have been resilient as they are up 6.4% on average since the latest earnings results. Providing civilians with tools to disable, disarm, and deter would-be assailants, Byrna (NASDAQ:BYRN) is a provider of non-lethal weapons. Byrna reported revenues of $29.05 million, up 10.9% year on year. This print fell short of analysts’ expectations by 2.3%. Overall, it was a softer quarter for the company with a significant miss of analysts’ adjusted operating income estimates. Management CommentaryByrna CEO Conn Davis stated: “Byrna has important strengths already in place, including a differentiated product offering, a strong balance sheet, a domestic manufacturing footprint, and a growing retail and dealer presence. At the same time, it is clear to me that the next phase of value creation will be defined by sharper execution across marketing, e-commerce, retail productivity, and operating discipline. That is where our focus is today. The market seems disappointed with the results as the stock is down 26.1% since reporting and currently trades at $6.80. Is now the time to buy Byrna? Access our full analysis of the earnings results here, it’s free. Becoming the first private company in the Southern Hemisphere to reach space, Rocket Lab (NASDAQ:RKLB) offers rockets designed for launching small satellites. Rocket Lab reported revenues of $200.3 million, up 63.5% year on year, outperforming analysts’ expectations by 4.9%. The business had an incredible quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates. Rocket Lab achieved the highest guidance raise among its peers. The market seems happy with the results as the stock is up 27.2% since reporting. It currently trades at $99.98. Is now the time to buy Rocket Lab? Access our full analysis of the earnings results here, it’s free. Providing a one-stop shop that integrates multiple services and product offerings, AerSale (NASDAQ:ASLE) delivers full-service support to mid-life commercial aircraft. AerSale reported revenues of $70.61 million, up 7.4% year on year, falling short of analysts’ expectations by 18.9%. It was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates and EPS in line with analysts’ estimates. AerSale delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 10.6% since the results and currently trades at $6.56. Read our full analysis of AerSale’s results here. One of the companies that forms a duopoly in the commercial aircraft market, Boeing (NYSE:BA) develops, manufactures, and services commercial airplanes, defense products, and space systems. Boeing reported revenues of $22.22 billion, up 14% year on year. This number beat analysts’ expectations by 2.9%. It was an exceptional quarter as it also logged a beat of analysts’ EPS estimates and adjusted operating income in line with analysts’ estimates. The stock is flat since reporting and currently trades at $218.20. Read our full, actionable report on Boeing here, it’s free. Established with a commitment to supporting national security, Kratos (NASDAQ:KTOS) is a provider of advanced engineering, technology, and security solutions tailored for critical national security applications. Kratos reported revenues of $371 million, up 22.6% year on year. This result surpassed analysts’ expectations by 8.1%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ organic revenue and EBITDA estimates. Kratos had the weakest guidance update among its peers. The stock is down 13.4% since reporting and currently trades at $53.28. Read our full, actionable report on Kratos here, it’s free. Late in 2025 into early 2026, there was hand-wringing around artificial intelligence. For software companies, the fear was that AI would erode pricing power and compress margins as new tools made it easier to replicate what once required expensive enterprise platforms. Crypto investors had their own version of the same anxiety: if AI agents could trade, allocate capital, and manage wallets autonomously, what exactly was the long-term value of today’s crypto infrastructure? These concerns triggered a noticeable rotation away from these sectors and into safer havens. But markets rarely dwell on one narrative for long. Spring 2026 came, and the focus shifted abruptly from technological disruption to geopolitical risk. The US’ conflict with Iran became the dominant driver of market psychology, and when geopolitics takes center stage, the script changes quickly. Investors stop debating growth rates and start worrying about oil supply, inflation, and global stability. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Shareholders of Byrna would probably like to forget the past six months even happened. The stock dropped 66.9% and now trades at $6.29. This was partly due to its softer quarterly results and may have investors wondering how to approach the situation. Is there a buying opportunity in Byrna, or does it present a risk to your portfolio? See what our analysts have to say in our full research report, it’s free. Even though the stock has become cheaper, we don’t have much confidence in Byrna. Here are three reasons you should be careful with BYRN, plus one stock we’d rather own. If you’ve followed StockStory for a while, you know we emphasize free cash flow. Why, you ask? We believe that in the end, cash is king, and you can’t use accounting profits to pay the bills. Byrna’s demanding reinvestments have drained its resources over the last five years, putting it in a pinch and limiting its ability to return capital to investors. Its free cash flow margin averaged negative 5.5%, meaning it lit $5.47 of cash on fire for every $100 in revenue. Growth gives us insight into a company’s long-term potential, but how capital-efficient was that growth? Enter ROIC, a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). Byrna’s five-year average ROIC was negative 3.1%, meaning management lost money while trying to expand the business. Its returns were among the worst in the industrials sector. As long-term investors, the risk we care about most is the permanent loss of capital, which can happen when a company goes bankrupt or raises money from a disadvantaged position. This is separate from short-term stock price volatility, something we are much less bothered by. Byrna burned through $7.82 million of cash over the last year. With $9.61 million of cash on its balance sheet, the company has around 15 months of runway left (assuming its $2.17 million of debt isn’t due right away). Unless the Byrna’s fundamentals change quickly, it might find itself in a position where it must raise capital from investors to continue operating. Whether that would be favorable is unclear because dilution is a headwind for shareholder returns. We remain cautious of Byrna until it generates consistent free cash flow or any of its announced financing plans materialize on its balance sheet. Byrna’s business quality ultimately falls short of our standards. Following the recent decline, the stock trades at 25.6× forward EV-to-EBITDA (or $6.29 per share). While this valuation is fair, the upside isn’t great compared to the potential downside. We’re pretty confident there are more exciting stocks to buy at the moment. Let us point you toward one of our top software and edge computing picks. ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively. Find out which 5 stocks it’s flagging this month — FREE. Get Our Top 5 Growth Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

Byrna’s first quarter saw sales climb year-over-year, but the company missed Wall Street’s revenue expectations and the market reacted sharply to the underperformance. Management attributed the results to solid demand through expanding retail and dealer channels, while acknowledging weaker e-commerce conversion rates and pressure on average order values. CEO Conn Davis was candid about these challenges, noting that “conversion did not perform to our expectations in the quarter,” with Byrna.com’s online performance lagging as the company’s focus shifted toward brick-and-mortar growth. The leadership team also cited elevated marketing and legal costs as contributors to lower operating margins compared to last year. Is now the time to buy BYRN? Find out in our full research report (it’s free). Revenue: $29.05 million vs analyst estimates of $29.75 million (10.9% year-on-year growth, 2.3% miss) Adjusted EPS: $0.07 vs analyst estimates of $0.05 (40% beat) Adjusted EBITDA: $2.21 million vs analyst estimates of $3.33 million (7.6% margin, 33.6% miss) Operating Margin: 3.2%, down from 6.5% in the same quarter last year Market Capitalization: $151.8 million While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jeremy Hamblin (Craig-Hallum Capital Group) asked about the expected year-over-year decline in Q2 sales, with CFO Laurilee Kearnes confirming that both overall and online sales are forecast to be down significantly, primarily due to lower retail load-in orders and weaker e-commerce conversion. Jeremy Hamblin (Craig-Hallum Capital Group) pressed for clarity on falling online average order values. CEO Conn Davis explained that the CL platform’s mix is lower online than in retail stores and returning visitors are purchasing more accessories rather than new launchers. Jeff Van Sinderen (B. Riley Securities) inquired about the move to end-cap displays at retail partners and how this impacts customer engagement. Davis responded that end-caps allow for more self-discovery and reduce purchase barriers, while in-store merchandising supports education without requiring a salesperson’s involvement. Jeff Van Sinderen (B. Riley Securities) questioned plans for recurring revenue products. Davis indicated that while the focus remains on the launcher platform, a new head of R&D with connected device experience has been hired, and the company will pursue organic development in this area over the next year. Eric Wold (Texas Capital Securities) asked why not all retailers implement in-store shooting experiences, given their success. Davis clarified that space constraints, rather than cost, are the main barrier, but interest is growing as positive data accumulates. Looking ahead, the StockStory team will be monitoring (1) the pace and effectiveness of e-commerce conversion improvements and digital marketing shifts, (2) the impact of new retail partnerships and experiential merchandising on in-store sales growth, and (3) progress in inventory reduction and manufacturing efficiency initiatives. Additional attention will be paid to any advancements in connected devices and the success of new product launches as indicators of longer-term trajectory. Byrna currently trades at $6.69, down from $9.20 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

Byrna Technologies Inc. has released its first-quarter 2026 results, reporting sales of US$29.05 million versus US$26.19 million a year earlier, while net income declined to US$0.801 million from US$1.66 million and diluted earnings per share from continuing operations eased to US$0.03 from US$0.07. The combination of higher sales but lower earnings highlights rising cost pressures or mix effects, which could be particularly relevant given Byrna’s focus on improving margins through product and supply chain initiatives. We’ll now examine how this mix of rising revenue but softer earnings shapes Byrna Technologies’ existing investment narrative around margin improvement and growth. Find 62 companies with promising cash flow potential yet trading below their fair value. To own Byrna Technologies, you need to believe its less-lethal self-defense products can grow into a durable, profitable niche, even as costs rise and competition remains intense. The latest quarter’s higher sales but weaker earnings keep margin pressure front and center and suggest that the key short term catalyst is evidence that onshoring and product initiatives can stabilize profitability. For now, the Q1 2026 numbers highlight those margin risks but do not fundamentally change that near term focus. Among recent developments, the most relevant alongside Q1 results is Byrna’s ongoing share repurchase program, with about 391,786 shares bought back for roughly US$4.6 million since launch. Against a backdrop of rising revenue but softer net income, this capital allocation choice sits alongside other priorities such as managing higher U.S. production costs and potential tariff impacts, and may influence how much flexibility Byrna has to fund its growth and margin improvement efforts. Yet beneath the revenue growth, investors should be aware that rising U.S. production costs and tariffs could leave Byrna more exposed if... Read the full narrative on Byrna Technologies (it's free!) Byrna Technologies' narrative projects $199.0 million revenue and $25.2 million earnings by 2029. Uncover how Byrna Technologies' forecasts yield a $29.00 fair value, a 357% upside to its current price. The lowest estimate analysts paint a tougher picture for Byrna, stressing risks like weaker consumer demand even as they once expected revenue near US$207.6 million and earnings around US$27.1 million, reminding you that this Q1 miss on profitability could prompt very different revisions to both optimistic and pessimistic views. Explore 5 other fair value estimates on Byrna Technologies - why the stock might be worth over 6x more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Byrna Technologies research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision. Our free Byrna Technologies research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Byrna Technologies' overall financial health at a glance. Markets shift fast. These stocks won't stay hidden for long. Get the list while it matters: Capitalize on the AI infrastructure supercycle with our selection of the 36 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. Invest in the nuclear renaissance through our list of 93 elite nuclear energy infrastructure plays powering the global AI revolution. We've uncovered the 11 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BYRN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]