Byrna Technologies Shares Jump 16% in 1 Day Since Earnings Call

Key highlights

• Net revenue fell 42.5% year over year to $16.4 million for the second quarter
• E-commerce sales declined by 35% while domestic dealer revenue saw a 47% drop
• Website traffic decreased by 13% with a reported conversion rate of 0.59%
• The company announced the closure of a manufacturing facility to streamline production and lower costs
• Management is targeting inventory turns of 2.0x by the conclusion of the fiscal year
• Domestic retail inventory gluts were identified as a primary headwind for dealer sales sell-in

Financial Performance

Byrna Technologies recorded significant revenue contraction in the second quarter of 2026, with net revenue settling at $16.4 million. This compares to $28.5 million in the same period last year, marking a 42.5% decline. The downturn was widespread across distribution channels; domestic dealer revenue fell 47%, and the e-commerce segment dropped 35%. Management noted that adjusted gross margins are being managed toward an exit rate of approximately 62% as the company works through current inventory challenges.

Up 12.3% since our story on 8 Oct: $4.05 when we broke it → $4.55 at the close on 13 Oct. Daily closing prices. Source: Yahoo Finance.

Show the prices

14 Sep	$3.73
15 Sep	$3.73
16 Sep	$3.71
17 Sep	$3.78
18 Sep	$3.68
21 Sep	$3.52
22 Sep	$3.47
23 Sep	$3.62
24 Sep	$3.62
25 Sep	$3.49
28 Sep	$3.37
29 Sep	$3.33
30 Sep	$3.27
1 Oct	$3.48
2 Oct	$3.48
5 Oct	$3.63
6 Oct	$3.69
7 Oct	$4.05
8 Oct	$4.73
9 Oct	$4.52
12 Oct	$4.56
13 Oct	$4.55

Management Outlook

The leadership team has designated fiscal 2026 as a transition and non-growth reset year. The primary objective is to right-size the company's cost structure and inventory levels following recent performance misses. While full-year revenue for fiscal 2026 is expected to be lower than the $118.1 million reported in fiscal 2025, management anticipates sequential quarterly improvements beginning in the fourth quarter. The company is also integrating assets from its $1.7 million acquisition of HERO Defense Systems to bolster its product portfolio.

Business Overview

Byrna Technologies Inc. operates in the Aerospace and Defense sector, specializing in the development and manufacture of non-lethal personal security solutions. The company's core product line includes handheld launchers and projectiles sold through a mix of direct-to-consumer e-commerce and a domestic retail network that includes approximately 2,000 store locations. Byrna is currently undergoing a structural shift to consolidate manufacturing to improve operational efficiency.

Sector Dynamics

The personal defense industry is experiencing a period of adjustment as retail partners manage excess inventory accumulated during previous high-demand cycles. Byrna's management highlighted that current sector headwinds include volatile sell-through rates at the retail level and a recent decline in consumer web traffic. These dynamics have forced companies in the sector to pivot from rapid expansion to operational stability and inventory optimization.

What to Watch

• Stabilization of website conversion rates which currently stand at 0.59%
• Progress toward the targeted 2.0x inventory turns by the end of fiscal 2026
• Impact of the manufacturing facility closure on quarterly operating expenses
• Revenue contributions from the newly acquired HERO Defense Systems assets
• Achievement of the projected sequential revenue growth in the fourth quarter

Byrna Technologies Inc. · financial snapshot

Share price	$4.05
Market cap	$92M
Revenue (annual)	$118M
1-month price change	+10.05%
Sector	IndustrialsAerospace & Defense

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.