Byrna Technologies (BYRN) Q2 2026 earnings summary

Executive summary

• Q2 2026 net revenue was $16.4 million, down 42–43% year-over-year, driven by e-commerce and wholesale declines, with a net loss of $10.1 million due to significant inventory write-downs and impairment charges.

• The company is undergoing a strategic transformation, including operational discipline, cost controls, and a focus on consumer conversion and retail productivity.

• Entered a binding agreement to acquire HERO Defense Systems, expanding product offerings and price points.

• Ceased in-house ammunition manufacturing and reduced launcher assembly lines to align production with demand and improve cost efficiency.

• Launched new marketing partnerships, realigned sales and marketing functions, and piloted a "try before you buy" program with a 30% conversion rate.

Financial highlights

• Net revenue for Q2 2026 was $16.4 million, down from $28.5 million year-over-year.

• Gross profit was $1.8 million (11% margin), impacted by $9.4 million in one-time charges; adjusted gross margin was 62%.

• Net loss was $10.1 million, compared to net income of $2.4 million in Q2 2025.

• Adjusted EBITDA was -$600,000, down from $4.3 million in the prior year.

• Cash and equivalents at quarter-end were $10.4 million, with no debt.

Outlook and guidance

• Fiscal 2026 is not expected to be a revenue growth year; Q3 will be transitional, with improvement anticipated in Q4 due to holiday season and new initiatives.

• Gross margins are expected to remain near or above 62% for the remainder of the year.

• Inventory turns are targeted to approach 2x by year-end, with a $5 million reduction in inventory planned.

• Management expects to fund operations primarily from cash generated by operations and has access to a $20 million credit facility, with no current borrowings.