Byrna Technologies Reports 57% Revenue Growth to $26.2 Million in Latest Quarter

Byrna Technologies Inc. reported significant financial growth in its latest quarterly filing, with net revenue reaching $26.2 million for the three months ended February 28, 2025, a 57% increase from $16.7 million in the same period last year. The company attributed this growth primarily to a new marketing strategy that shifted focus from social media to celebrity endorsements, which boosted direct-to-consumer sales via Amazon and its website by 52% to $19.5 million. Additionally, sales to domestic dealers surged by 80%, contributing to the overall revenue increase.

The company's gross profit for the quarter was $15.9 million, representing a gross margin of 60.8%, up from 57.9% in the prior year. This improvement was driven by increased sales volumes and better absorption of fixed costs due to heightened production. However, operating expenses also rose to $14.2 million, an increase of $4.4 million compared to the previous year, largely due to higher marketing costs and employee compensation. Despite these rising costs, Byrna achieved a net income of $1.7 million, a substantial improvement from a mere $17,000 in the same quarter of the previous year.

In terms of operational developments, Byrna Technologies has been actively expanding its geographic footprint. The company previously established a joint venture in South America, Byrna LATAM, which it sold in August 2024 for $1, while entering into a licensing agreement that allows Byrna LATAM to manufacture its products in certain South American countries. This strategic move is expected to enhance Byrna's presence in international markets, although the financial impact of the licensing agreement remains minimal at this time.

The company’s cash and cash equivalents decreased to $7.7 million as of February 28, 2025, down from $16.8 million at the end of the previous fiscal year. Cash used in operating activities was $3.8 million, contrasting with cash provided by operations of $3.9 million in the prior year. Byrna anticipates generating cash in subsequent quarters, although it may pursue additional financing options to support its operations and growth initiatives. The company has also initiated a stock buyback program, approved in July 2024, allowing for the repurchase of up to $10 million in shares to return capital to shareholders.

Looking ahead, Byrna Technologies aims to capitalize on the growing demand for less-lethal products in both consumer and professional markets. The company plans to continue expanding its product line and enhancing its marketing strategies to drive sales growth. Management remains optimistic about the future, emphasizing the importance of maintaining sufficient capital to support ongoing operations and product development.