Byrna Technologies (NASDAQ:BYRN) detailed fiscal fourth-quarter and full-year 2025 results that showed continued revenue growth and profitability, while management emphasized an ongoing shift toward a broader retail footprint, new product introductions, and manufacturing changes intended to lift margins in fiscal 2026.
Financial results: revenue growth, margin headwinds, and profitability
CFO Lori Kearns said fiscal Q4 2025 net revenue rose to $35.2 million, up 26% from $28.0 million in fiscal Q4 2024. She attributed the $7.2 million increase primarily to strong performance in dealer and chain store channels, with direct-to-consumer (DTC) and international sales also contributing year-over-year growth. Kearns noted the comparison came against a “particularly strong” fiscal Q4 2024, when demand was elevated around the U.S. election.
Gross profit in Q4 2025 was $21.1 million, or 60% of net revenue, compared with $17.6 million, or 63%, in Q4 2024. Kearns said the margin decline was driven mainly by a greater mix of dealer and chain store sales and ongoing amortization of startup costs tied to the CL introduction and the transfer of an ammunition factory from South Africa to Fort Wayne, Indiana. For the full year, gross profit was $71.5 million (a 61% margin), compared with $52.8 million (a 62% margin) in 2024.
Operating expenses increased as the company invested in growth initiatives. Q4 2025 operating expenses were $17.1 million versus $13.5 million in Q4 2024, driven by higher advertising and marketing spending to support the rollout of more than 500 additional chain store locations during the quarter, along with increased headcount in marketing and engineering. Full-year operating expenses were $59.6 million versus $46.1 million in 2024, reflecting a 29% increase year over year.
Net income in Q4 2025 was $3.4 million, down from $9.7 million in Q4 2024, primarily due to a $5.6 million income tax benefit in the prior-year quarter related to the release of valuation allowances. Full-year net income was $9.7 million, down from $12.8 million in 2024; excluding the prior-year tax benefit, Kearns said net income improved by $2.5 million. Adjusted EBITDA totaled $6.0 million in Q4 2025 (vs. $5.0 million a year earlier) and $16.8 million for the full year (vs. $11.5 million in 2024).
Balance sheet, inventory build, and new credit facility
Byrna ended fiscal 2025 with $15.5 million in cash, cash equivalents, and marketable securities, down from $25.7 million at November 30, 2024. Inventory rose to $32.7 million from $20.0 million a year earlier. Kearns said the company expected the end of fiscal Q1 to be a “low point” for inventory, followed by a rebuild to support ramp-up.
Subsequent to quarter-end, the company entered into a $20 million credit facility with Texas Capital Bank, consisting of a $5 million revolving line of credit and a $15 million delayed term draw. Kearns said the facility was intended to support strategic growth initiatives, including potential acquisitions.
Retail expansion drives growth, led by chain stores and experiential selling
CEO Bryan Ganz characterized fiscal 2025 as a “landmark year,” saying the company scaled from a largely DTC model to a “more diversified multi-platform model” emphasizing a nationwide dealer base and expanded advertising opportunities.
Ganz said brick-and-mortar sales more than doubled, rising from $15.2 million in fiscal 2024 to $31.0 million in fiscal 2025. He broke out growth across the dealer base, citing increases in Show Dealers (up 20.9%), Premier Dealers (up 40.4%), traditional dealers including chain and independent dealers (up 73.4%), and company-owned retail stores (up 186.5%).
Chain store sales were described as the largest contributor, with Byrna expanding from about 200 chain store locations at the start of 2025 to approximately 900 locations by year-end. Ganz highlighted Sportsman’s Warehouse as a key partner, particularly because of a “Try Before You Buy” program that allows customers to test-fire Byrna launchers. He said Sportsman’s planned to roll out the Byrna program to nearly all of its locations in 2026 and that Byrna expected to roughly double the number of Sportsman’s stores outfitted with its enclosed shooting pods during the year.
Byrna said it ended the year with a total footprint of more than 1,500 retail locations where consumers can “touch, feel, and often shoot” before buying, and management expects that number to grow to approximately 2,000 locations in 2026. Ganz also said the company received verbal commitments at SHOT Show from large chains representing 500+ additional locations, including regions where it has limited coverage, “most importantly” Texas.
DTC and international channels, advertising, and brand awareness efforts
While emphasizing retail growth, Ganz said DTC channels still grew, with Byrna.com and Amazon.com up 18.4% for the year. Amazon grew 46.9% year over year and represented 28.6% of DTC sales, up from 23.2% in the prior year. Ganz said the company was “somewhat agnostic” about where the sale occurs because net margins are “somewhat similar,” citing savings in advertising, freight, and payment processing, along with Amazon’s delivery advantages near the holidays.
International sales, though “still a small part” of the business, increased 66% from the prior year, according to Ganz.
On marketing, Ganz pointed to “AI-enabled advertising campaigns,” including the “We Don’t Sell Bananas” commercial, saying they helped Byrna adapt content for cable and streaming networks where it previously could not advertise. He also said Byrna secured a regional Super Bowl ad spot in the Pittsburgh market as a test case, with potential expansion in 2027 if it proves cost-effective. He added that the company’s celebrity and influencer strategy remains important and that Dan Bongino returned to the roster after stepping away during his time in an administration.
Ganz also discussed product placement efforts, including an unsolicited cameo appearance on an HBO show and a decision to help finance a small independent film that will prominently feature Byrna launchers. He said the company is focused less on the film’s box office success and more on the “advertising capabilities it provides,” including behind-the-scenes content and interviews hosted on the movie site.
New products, manufacturing changes, and 2026 margin focus
Management emphasized several product and operational initiatives:
- Byrna CL XL: Ganz said the company will introduce a second CL variant, the CL XL, priced at $579.99 (about $30 above the current CL). He said margins should be “essentially identical” to the CL due to minimal cost differences. The CL XL will accept a 12-gram CO2 cartridge and a 7+1 magazine; he also expects aftermarket demand for the new magazine among existing CL owners.
- Modular next-generation launcher: Ganz said Byrna assembled the first production prototype of a modular launcher and expected to test-fire it the following week. He said the design should have fewer parts and cost about 40% less to produce based on current bill-of-materials estimates. Management expects to release a “price point” version toward the end of 2026, followed by mid- and high-level variants.
- Byrna Cam accessory: Ganz said the company plans to bring out a rail-mounted camera accessory in late Q2 or Q3 of 2026, targeting a price below $200. He said it is being developed with a third-party vendor and will not be a connected device, describing it as a camera that records video and audio and can be downloaded.
- Connected and subscription-based products: Ganz said connected devices are more complex and it is “premature” to provide timing or pricing, though the company is considering subscription revenue models that could potentially subsidize upfront product pricing.
On manufacturing, Ganz said the company is increasing monthly production by 33% and is moving from an assembly line to production cells to improve quality and efficiency. He said the Fort Wayne facility can increase output via additional shifts and flex production across launcher models. He also said the Fort Wayne ammunition factory is now producing in “lights-off” clean rooms and that 12-gauge payload rounds are expected to go into production “this month.”
Looking ahead, Kearns said Byrna expects gross margin improvement as startup costs wind down, with the company targeting 63% to 65% gross margins by the end of fiscal 2026. She also noted a broad-based 4% to 5% price increase implemented on February 1, 2026. Management said it was not providing revenue guidance, but emphasized expectations for continued growth and EBITDA margin expansion through operating leverage.
Ganz also said Q1 is typically seasonally softer than Q4, and he expects fiscal Q1 2026 to be above the prior-year Q1 but below Q4.
Finally, Ganz disclosed that his contract is up later in 2026 and that the board is conducting a process to identify his successor. He said he plans to remain involved “for as long as the company needs” and intends to support a smooth transition when the time comes.
About Byrna Technologies (NASDAQ:BYRN)
Byrna Technologies, Inc (NASDAQ: BYRN) designs, develops and markets non-lethal personal security devices and accessories intended to provide an alternative to traditional firearms. The company’s flagship offerings deploy impact projectiles and chemical irritants in a compact, pistol-style form factor. Its product portfolio includes the Byrna SD and Byrna HD launchers, which utilize proprietary kinetic and irritant cartridges, as well as the lightweight Byrna Air, a CO₂-powered variant optimized for close-quarters defense.
In addition to its core self-defense launchers, Byrna Technologies supplies a range of consumables and support products, including cartridges loaded with pepper-based irritants, inert training rounds, holsters, safe-carry cases and speed loaders.
