Byrna Technologies (BYRN) investor relations material

Executive summary

• New CEO Conn Davis emphasizes retail execution, broader customer reach, improved conversion, and operational leverage to drive growth and profitability.

• Company aims to broaden its customer base and improve brand messaging for wider market appeal, supported by new product launches and digital experiences.

• Retail and dealer channels are expanding rapidly, with proactive physical store growth and new partnerships with Academy Sports + Outdoors and Murdoch's Ranch & Home Supply.

• E-commerce conversion rates and average order values have declined, prompting targeted improvements and new digital tools.

• Gross margin decreased to 59.9% from 60.8% year-over-year, primarily due to a higher proportion of wholesale sales and increased manufacturing costs.

Financial highlights

• Q1 2026 net revenue was $29 million, up 11% year-over-year from $26.2 million, driven by wholesale gains.

• Gross profit was $17.4 million (60% margin), compared to $15.9 million (61%) in Q1 2025.

• Operating expenses rose 16% to $16.5 million, mainly from higher advertising, marketing, professional fees, and credit loss allowances.

• Net income was $0.8 million, down from $1.7 million in Q1 2025; adjusted EBITDA was $2.2 million vs. $3 million.

• Cash and equivalents were $9.6 million at quarter-end, down from $15.5 million at prior year-end.

Outlook and guidance

• Q2 2026 is expected to be materially below both year-over-year and sequentially, with revenue likely around $25 million.

• No formal quarterly guidance provided due to operational changes and variability in near-term results.

• Gross margin expected to improve modestly in the back half of the year due to product mix, price increases, and manufacturing efficiencies.

• Free cash flow targeted in the mid-teens (millions), driven by EBITDA and working capital improvements.

• Management expects to fund operations primarily from cash generated by operations and has access to a $20 million credit facility, with no borrowings outstanding as of quarter-end.