Byrna Technologies Inc. (NASDAQ: BYRN) reported fiscal 2025 revenue of $118.1 million, a 38% increase from $85.8 million in 2024, driven by a 26% rise in net revenue to $35.2 million in the fourth quarter. The company posted a net income of $9.7 million for the full year and $3.4 million in Q4, translating to earnings per share of $0.14—an $0.01 beat over the consensus estimate of $0.13, or a 7.7% upside. The EPS beat was largely attributable to disciplined cost management that offset the impact of a $5.6 million tax benefit received in the prior year and higher operating expenses in the current quarter.
Gross profit for Q4 2025 was $21.1 million, or 60% of net revenue, down from 63% in Q4 2024. The compression reflects a shift toward lower‑margin dealer and chain‑store sales and the startup costs associated with the new Compact Launcher and the Fort Wayne ammunition facility. Management noted that once the Fort Wayne plant reaches full production capacity, the incremental cost of ammunition is expected to decline, which should help restore gross margins to 62%–63% in fiscal 2026.
The company announced a 4%–5% price increase effective February 1 2026 and the launch of the Byrna CL XL launcher, which is projected to improve margins as production scales. Byrna also secured a $20 million credit facility with Texas Capital to support strategic acquisitions and working capital needs. While the company did not provide new revenue guidance, it reiterated its confidence in maintaining profitability through cost discipline and the expected margin recovery from the CL XL launch and the completion of the Fort Wayne facility.
Market reaction to the earnings was muted, with the stock falling 14.6% on the day of the release. Investors cited the mixed picture—revenue beat but net income lower than the prior year due to the tax benefit and higher operating costs—as well as a build‑up in inventory to $32.7 million and a decline in cash to $15.5 million. The market’s focus on the short‑term profitability hit, despite the strong top‑line growth, underscored the importance of margin dynamics to investors.
CEO Bryan Ganz said the company “has scaled from a direct‑to‑consumer model to a diversified multi‑platform strategy, expanding from roughly 300 chain‑store locations at the start of 2025 to more than 1,500 retail outlets nationwide.” CFO Laurilee Kearns added that “the 26% revenue growth in Q4 was driven by a robust expansion of dealer and chain‑store sales, while operating expenses rose to $17.1 million as we invested in marketing and the rollout of 500 new chain‑store locations.” The executives emphasized that the company remains focused on achieving margin recovery in fiscal 2026 as the new product launches mature and the Fort Wayne facility reaches full capacity.
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