Byrna Technologies (BYRN) investor relations material

Executive summary

• Q3 FY2026 revenue fell 45.7% YoY to $15.3M as e-commerce sales and dealer and chain-store reorders slowed after Q1 restocking and weaker-than-expected sell-through.

• Nine-month revenue declined 26.7% to $60.7M; net loss was $12.2M versus net income of $6.3M, with $3.5M used in operating cash flow.

• Transition initiatives included the HERO Defense Systems acquisition, creator and media marketing, refurbished-product sales, and outsourced ammunition production.

Financial highlights

• Q3 net revenue was $15.3M, gross profit $12.2M, operating loss $2.9M and net loss $2.911M; diluted loss per share was $0.13.

• Q3 reported gross margin was 79.5%, including a $2.282M tariff refund; adjusted gross profit was $9.9M and adjusted gross margin 64.5%.

• Operating expenses increased 7% YoY to $15.1M, including $1.7M of bad-debt expense tied to two large international customers and higher marketing costs.

• Adjusted EBITDA was a loss of $1.360M versus income of $4.082M YoY; excluding tariff refunds and the Scottsdale lease gain, Q3 adjusted EBITDA loss was $3.8M.

• Nine-month revenue was $60.733M versus $82.874M; net loss was $12.198M versus net income of $6.324M.

Outlook and guidance

• Management expects sequential improvement toward fiscal year-end; Q4 faces a difficult YoY comparison, with holiday sell-through and maturing marketing and dealer initiatives expected to support conversion and productivity.

• Adjusted gross margin in the mid-60% range is expected to continue, supported by operational efficiencies and further initiatives.

• Inventory is expected to decline by $2M–$3M in Q4 and normalize in subsequent quarters, improving working-capital efficiency and cash generation.

• HERO products are planned for relaunch under the Byrna brand at SHOT Show in January 2027; a redesigned mobile-native website is planned for Q1.

• Longer-term priorities include broader brand distribution, international and professional-security markets, operational efficiency and durable growth; an Investor Day is planned for H1 next year.