Byrna Technologies Reports 40.6% Revenue Growth to $28.5 Million in Latest Quarter

Byrna Technologies Inc. reported significant financial growth in its latest quarterly filing, with net revenue reaching $28.5 million for the three months ended May 31, 2025, a 40.6% increase from $20.3 million in the same period last year. For the first half of the fiscal year, the company generated $54.7 million in revenue, up 48.1% from $36.9 million in the prior year. The increase in revenue is attributed to a new marketing strategy that shifted focus from social media to celebrity endorsements, which has positively impacted direct-to-consumer sales and wholesale distribution.

The company's gross profit for the second quarter was $17.6 million, representing a gross margin of 61.6%, slightly down from 62.0% in the previous year. This decrease is primarily due to a higher proportion of sales through wholesale channels, which typically yield lower margins compared to e-commerce sales. Operating expenses also rose to $14.2 million, an increase of $3.6 million from the prior year, driven by higher marketing costs and employee compensation.

Byrna's operational metrics indicate a strong performance in customer engagement, with direct sales via Amazon and its website increasing by 12.2% to $16.6 million. Sales to domestic dealers surged by 121.1%, reaching $8.4 million, while international sales rose to $2.8 million. The company also recognized $0.8 million in royalty revenue from its LATAM Licensing Agreement, which allows Byrna LATAM to manufacture and sell Byrna products in South America.

Despite the positive revenue growth, Byrna's cash and cash equivalents decreased to $7.0 million as of May 31, 2025, down from $16.8 million at the end of the previous fiscal year. The company reported cash used in operating activities of $9.2 million for the first half of 2025, compared to cash provided by operations of $5.9 million in the prior year. This shift is attributed to increased inventory levels and accounts receivable, reflecting the company's growth strategy and expansion efforts.

Looking ahead, Byrna Technologies aims to leverage its brand and product line to capture a larger share of the growing less-lethal market. The company plans to continue its focus on marketing and expanding its distribution channels while managing operational costs effectively. Byrna's future success will depend on its ability to generate sufficient revenue to cover ongoing expenses and to navigate market conditions effectively.