Byrna Technologies Inc. reported first‑quarter 2026 revenue of $29.05 million, an 11% increase from $26.2 million in the same period a year earlier. The growth was driven by stronger demand in its retail and dealer channels, while e‑commerce conversion rates lagged behind the previous year, tempering the overall top‑line momentum.
Gross profit rose to $17.4 million, but the gross margin slipped to 60% from 61% in Q1 2025. The contraction reflects a shift toward lower‑margin dealer and chain‑store sales, which typically command lower average selling prices than online transactions. Management expects the margin to rebound in the second half of 2026 as the product mix shifts toward higher‑margin launches such as the new Byrna CL‑XL launcher.
Operating expenses climbed to $16.5 million, a 16% increase year‑over‑year, largely due to heightened advertising and marketing spend aimed at expanding the company’s retail and dealer footprint. The higher cost base contributed to the decline in operating income and ultimately to the net income drop.
Net income fell to $0.8 million, down from $1.7 million in Q1 2025, and adjusted EBITDA slipped to $2.2 million from $3.0 million. The earnings miss was driven by the combined effect of margin compression, higher operating costs, and weaker e‑commerce performance. Analysts had estimated EPS between $0.05 and $0.09; Byrna reported $0.03, a miss of up to $0.06. Revenue estimates ranged from $29.61 million to $30.1 million, so the company also missed revenue expectations by roughly $0.55 million.
Cash and cash equivalents stood at $9.6 million, while inventory rose to $33.1 million as the company built stock to support anticipated demand. The inventory build signals a focus on inventory reduction and working‑capital efficiency in the coming quarter, as management highlighted the need to improve cash flow amid the current earnings miss.
Management emphasized that the new CEO, Conn Davis, sees the next phase of value creation in sharper execution across marketing, e‑commerce, retail productivity, and operating discipline. The company did not provide formal guidance for Q2 2026, citing variability in near‑term results following leadership changes, but expressed optimism about gross‑margin expansion later in the year.
Market reaction was negative, with the stock falling 14% to 16.74% in pre‑market trading. The sharp decline was driven by the EPS miss, revenue shortfall, and margin contraction, all of which raised concerns about the company’s near‑term profitability and the effectiveness of its channel‑diversification strategy.
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