Business Overview
Byrna Technologies Inc. is a personal defense technology company that specializes in the development, manufacture, and sale of innovative less-lethal personal security solutions. The Company’s core product lineup includes the Byrna CL, Byrna LE, and Byrna SD personal security devices. These devices are state-of-the-art, handheld, CO2-powered launchers designed to provide a less-lethal alternative to traditional firearms. The Company targets a diverse set of end markets, encompassing consumer, private security, and law enforcement segments. Byrna operates a domestic manufacturing footprint and distributes its products through multiple channels, including an e-commerce store, dealer networks, and chain retail partners.
Executive and Organizational Updates
During the fiscal first quarter of 2026, Byrna underwent significant leadership transitions intended to drive its next phase of growth and operational execution:
- Chief Executive Officer: Conn Davis was appointed as the new CEO, succeeding retiring CEO Bryan Ganz. Davis’s background includes deep experience in scaling consumer brands, with expertise spanning product innovation, distribution, e-commerce, and mergers and acquisitions.
- Board of Directors: TJ Kennedy was elevated to the position of Chair of the Board. Kennedy brings extensive experience from his background scaling mission-critical public safety technologies and as a former public company CEO.
- President: Luan Pham was promoted to President, a move recognizing his central role in scaling the Company’s revenue from $17 million in 2020 to $118 million in 2025. In this role, Pham will oversee marketing, brand strategy, and distribution.
- Research & Development: Robert Holmes was appointed as the Vice President of New Product Development and R&D, bringing deep technology and hardware innovation experience from previous consumer company roles.
Key Financial Performance Highlights
The financial results compare the fiscal first quarter ended February 28, 2026 (Q1 2026) to the fiscal first quarter ended February 28, 2025 (Q1 2025).
Income Statement Analysis:
- Revenue Growth: Net revenue for Q1 2026 was reported at $29.0 million, representing an 11% year-over-year increase from the $26.2 million generated in Q1 2025. This top-line growth was primarily driven by continued sales expansion across both dealer and chain store channels. The growth was partially offset by a typical post-holiday seasonal moderation during the quarter. The Company reported ending the quarter with approximately $1.1 million in backlog, which was slightly above typical first-quarter levels due to the timing of shipments at the quarter’s end.
- Gross Profit and Margins: Gross profit for the quarter was $17.4 million, up from $15.9 million in Q1 2025. However, gross margin contracted slightly, landing at 60% of net revenue compared to 61% in the prior-year period. This modest shift in margin profile was primarily attributed to the greater revenue contribution from dealer and chain store sales. Cost of goods sold for Q1 2026 was $11.6 million, an increase from $10.3 million in Q1 2025.
- Operating Expenses: Operating expenses experienced a 16% year-over-year increase, reaching $16.5 million compared to $14.2 million in Q1 2025. This expansion in operating costs reflects higher advertising and marketing expenditures deployed to support revenue growth through retail distribution expansion, alongside broader initiatives aimed at increasing brand awareness and customer conversion. Additionally, the Company incurred elevated costs related to legal and other professional expenses during the quarter.
- Profitability Metrics: Income from operations declined to $0.9 million from $1.7 million in the prior year. Net income for Q1 2026 was $0.8 million, down from $1.7 million in Q1 2025. Basic and diluted net income per share were $0.04 and $0.03, respectively, compared to $0.07 for both metrics in Q1 2025.
Non-GAAP Metrics:
- Adjusted EBITDA: The Company reported Adjusted EBITDA of $2.2 million for Q1 2026, representing a decline from the $3.0 million reported in Q1 2025. The reconciliation from net income ($0.8 million) to Adjusted EBITDA included adjustments for depreciation and amortization ($0.6 million), stock-based compensation expense ($0.5 million), severance/officer transition costs ($0.3 million), and minor adjustments for interest income and income taxes.
Balance Sheet and Capital Position:
- Liquidity: As of February 28, 2026, Byrna’s cash, cash equivalents, and marketable securities totaled $9.6 million, a decrease from the $15.5 million reported at the end of the previous fiscal year on November 30, 2025. Cash and cash equivalents specifically stood at $7.5 million. Total current assets were $59.3 million, down from $63.7 million at the end of November 2025.
- Working Capital and Inventory: Inventory levels rose slightly to $33.1 million from $32.7 million at the close of fiscal 2025. Management noted a strategic focus on lowering inventory levels over time and improving overall working capital efficiency. Accounts receivable increased to $11.6 million from $10.8 million at the end of November 2025.
- Liabilities and Equity: Total current liabilities decreased to $12.0 million from $17.1 million at November 30, 2025, largely driven by a reduction in accounts payable and accrued liabilities. Total stockholders’ equity improved to $66.5 million from $65.8 million.
Operational Metrics and Sales Channel Expansion
The Company made several notable operational advancements during the quarter aimed at broadening its retail distribution and enhancing its product lineup:
- Retail and Brick-and-Mortar Footprint: Byrna initiated a partnership with Academy Sports + Outdoors, significantly expanding its market presence in Texas and the Southeast U.S.. This expansion features an initial launch in approximately 50 stores, with a phased rollout targeting between 200 and 250 stores by the end of the year. Furthermore, the Company expanded its footprint in the Mountain West region by adding 14 Murdoch’s Ranch & Home Supply locations, with an internal target to reach 30 stores across that region by year-end.
- Direct-to-Consumer (E-commerce) Enhancements: The Company launched a new digital experience dubbed “Find the Right Launcher” on Byrna.com. This tool is explicitly designed to assist consumers in identifying the most suitable product for their specific needs and geographic location, ultimately aiming to improve consumer education and conversion rates.
- Product Line Expansion: Byrna introduced the Byrna CL-XL launcher to the market, an addition intended to address expanding customer preferences within its product lineup.
Management Commentary and Strategic Updates
CEO Conn Davis articulated a clear strategic roadmap, emphasizing that the next phase of value creation for Byrna will require sharper execution across marketing, e-commerce, retail productivity, and operating discipline. Davis identified three core near-term priorities:
- Retail Penetration: Driving deeper penetration across retail and dealer channels, which management views as the single largest growth opportunity over the ensuing 12 to 18 months.
- Brand Messaging Expansion: Broadening the brand message to engage a wider array of customer segments. Management believes that the less-lethal personal defense category can resonate with a much broader audience if the product is merchandised, presented, and explained effectively, moving beyond the narrower slice of the market it has historically captured.
- Financial Algorithm Establishment: Creating a clear financial framework to ensure that top-line growth flows through to stronger EBITDA, robust cash generation, and improved working capital efficiency.
Near-Term Operating Outlook: Management provided candid commentary regarding current operational challenges. Despite healthy website traffic on Byrna.com, conversion rates have declined, and average order values have faced downward pressure in recent months. The Company views this not as an issue of demand generation, but rather of demand conversion. To combat this, Byrna is actively investing in the website experience to clarify the purchasing path.
Furthermore, Davis noted that early indications for fiscal Q2 show development below management’s expectations and below the sequential improvement anticipated for the business. Due to these dynamics, coupled with ongoing internal structural changes to demand generation, inventory discipline, website conversion, and internal forecasting, management has suspended formal quarterly guidance for the near term. The Company states these changes create near-term variability but are necessary to position the business for stronger long-term performance.
Looking toward the second half of the year, the Company anticipates gross margin expansion. This projection is based on anticipated changes in product mix, modest price increases that were implemented late in the first quarter, and continued efficiency improvements within its manufacturing operations.
Notable Risks and Challenges
The Company outlined a comprehensive set of risks and forward-looking contingencies that could materially impact its operational execution and financial performance. Key highlighted risks include:
- Execution Risk: Challenges stemming from the transition to the new executive leadership team and their ability to execute newly established strategic priorities.
- E-commerce and Marketing Efficacy: The potential that investments in digital capabilities and e-commerce enhancements on Byrna.com fail to yield anticipated improvements in customer acquisition, conversion rates, or total revenue. Furthermore, there is a risk that heightened marketing expenditures may not result in expected revenue increases , and that efforts to broaden the brand message to new customer segments fail to achieve desired market penetration.
- Supply Chain and Manufacturing Dynamics: Potential delays, disruptions, or constraints regarding inventory, parts, and materials, particularly those sourced from limited or sole-source providers. Furthermore, anticipated improvements in manufacturing efficiency may not materialize or could be completely offset by rising overhead, labor, or input costs.
- Distribution and Retail Risks: The possibility that determinations by third-party-controlled distribution channels (such as Amazon) to reduce or eliminate Byrna product inventory could negatively impact sales. Additionally, the planned expansion of up to 250 new retail locations could face delays, scope reductions, or a failure to execute by retail partners.
- Regulatory and Platform Vulnerabilities: Operations remain sensitive to potential determinations by advertising platforms, social media companies, or legislative bodies that may prevent or restrict the marketing of Byrna products. The Company also faces risks related to international trade policies, tariffs, export controls, and broader litigation or enforcement proceedings.
- Pricing and Market Dynamics: The risk that the modest price increases implemented late in the first quarter may not be sustained, might be reversed due to competitive pressures, or could fail to deliver the expected gross margin improvements. General changes in political or consumer sentiment can also materially affect product demand.