Byrna Technologies Reports 42.5% Revenue Decline and $10.1 Million Net Loss in Q2 2026

Byrna Technologies Inc. reported a significant decline in financial performance for the second quarter and first half of fiscal 2026, as detailed in its latest 10-Q filing. For the three months ended May 31, 2026, the company generated net revenue of $16.4 million, a decrease of 42.5% from $28.5 million in the same period last year. The decline was attributed to reduced sales in both direct-to-consumer and wholesale channels, with direct sales dropping by 34.5% and wholesale sales decreasing by 53.8%. The company also noted a reversal of previously recognized royalty revenue under its LATAM Licensing Agreement, which negatively impacted international sales.

In terms of profitability, Byrna reported a net loss of $10.1 million for the second quarter, compared to a net income of $2.4 million in the prior year. The loss was exacerbated by a $5.9 million inventory write-down and a $3.5 million impairment charge related to the cessation of in-house ammunition production at its Fort Wayne, Indiana facility. Operating expenses remained relatively stable at $14.6 million, with a notable increase in marketing expenses aimed at supporting business growth.

Operationally, Byrna's total assets decreased to $68.4 million as of May 31, 2026, down from $84.5 million at the end of the previous fiscal year. The company’s cash and cash equivalents also fell to $9.4 million, a decrease of $4.3 million. Accounts receivable dropped significantly, reflecting a decrease in sales activity, while inventory levels were impacted by the aforementioned write-downs. The company’s employee headcount and customer engagement metrics were not disclosed in the filing.

Looking ahead, Byrna Technologies is focused on restructuring its operations and expanding its product offerings to meet the growing demand for less-lethal defense products. The company has initiated a stock buyback program to return capital to shareholders and minimize dilution from stock options. Additionally, Byrna is evaluating a recent asset purchase agreement with Hero Defense Systems, which could enhance its product portfolio and market presence. The company remains committed to improving its financial performance and operational efficiency in the coming quarters.