Byrna Technologies Inc.

What they do

Byrna designs, manufactures and sells less-lethal personal security solutions, including handheld CO2-powered launchers and chemical irritant projectiles, under its own brand. The company sells primarily through its Byrna.com direct-to-consumer e-commerce channel and through dealers, chain stores and retail partners. It operates from Andover, Massachusetts, with manufacturing and assembly operations that the company has been consolidating. Byrna also runs product education and guided shopping tools on its website to drive customer acquisition.

Revenue drivers

• Direct-to-consumer e-commerce (Byrna.com) — The company's own website is the primary sales channel; management attributed the Q2 2026 revenue decline primarily to softness in e-commerce, and reported that a 'Find the Right Launcher' guided shopping tool generated over 150,000 responses since its April introduction with conversion roughly twice the overall site rate.
• Dealer and chain store channel — Sales through dealers and chain stores are a second channel; Q2 2026 weakness was partly attributed to slower reorder activity from dealers and chain stores following substantial restocking in fiscal Q1 and slower-than-expected sell-through.
• Launchers and ammunition (product portfolio) — Revenue comes from launcher devices and related ammunition; the company ceased in-house ammunition manufacturing in the quarter and reduced launcher assembly from four lines at the end of fiscal Q1 to two lines by May, citing demand alignment.
• Pending HERO Defense Systems acquisition — Byrna entered a binding agreement to purchase HERO Defense Systems, LLC, a complementary less-lethal self-defense company, which management says would expand the portfolio across additional price points and everyday-carry form factors.

Recent performance

Q2 2026 net revenue was $16.4 million, down about 43% from $28.5 million in Q2 2025, driven primarily by lower e-commerce sales and slower dealer and chain store reorders. Gross profit was $1.8 million (11% of revenue) versus $17.6 million (62%) a year earlier, including a $5.9 million inventory write-down and $3.5 million equipment impairment, partly offset by a $1.1 million tariff refund; adjusted gross profit was $10.1 million, or about 62% margin. Operating expenses rose 2.7% to $14.6 million, and net loss was $(10.1) million versus net income of $2.4 million in Q2 2025, including $10.4 million of non-cash impairment and inventory write-down charges and a $2.7 million tax benefit. Adjusted EBITDA was $(0.6) million versus $4.3 million a year earlier, and cash, cash equivalents and marketable securities totaled $10.4 million at May 31, 2026, down from $15.5 million at November 30, 2025, with inventory of $30.4 million versus $32.7 million.

Strategy

Management is consolidating production, having cut launcher assembly from four lines to two and ceased in-house ammunition manufacturing to align output with demand and reduce finished goods inventory. The company is investing in demand generation, including a 'try before you buy' pilot program that showed an approximately 30% conversion rate among participating customers, and new agency relationships with HLK for brand messaging and Acceleration Partners for influencer and affiliate marketing. It activated a Fox Sports media partnership through iHeartMedia in June and is realigning sales and marketing functions while searching for dedicated leaders for retail growth and brand expansion. It also agreed to acquire HERO Defense Systems to broaden price points and everyday-carry form factors, and promoted Matthew Campagni to Chief Strategy Officer.

Risks

• Direct-to-consumer demand softness — Q2 2026 revenue fell about 43% year over year, which management primarily attributed to continued softness in the direct-to-consumer channel.
• Channel inventory and reorder volatility — Slower-than-expected sell-through and reduced dealer and chain store reorders followed substantial restocking in fiscal Q1, leaving inventory at $30.4 million at May 31, 2026.
• Inventory and asset impairment charges — Q2 2026 included a $5.9 million inventory write-down, a $3.5 million equipment impairment and a $1 million operating expense impairment tied to the Fort Wayne ammunition manufacturing shutdown and product rationalization.
• Cash decline and acquisition integration — Cash, cash equivalents and marketable securities fell to $10.4 million at May 31, 2026 from $15.5 million at November 30, 2025, while the company pursues the binding agreement to purchase HERO Defense Systems.

Outlook

Management said Q2 2026 results 'did not reflect the level of performance we believe Byrna can deliver' and characterized the quarter as the start of a transition period. The company is focused on lowering inventory over time and improving working capital efficiency. It is also investing in marketing, product education and the pending HERO Defense Systems acquisition to broaden its product portfolio.