Byrna Technologies (BYRN) Q4 2024 earnings summary

Executive summary

• Achieved record FY 2024 revenue of $85.8 million, up 101% year-over-year, and Q4 revenue of $28 million, up 79% year-over-year.

• Net income for FY 2024 was $12.8 million, a $21 million improvement from FY 2023, with Q4 net income of $9.7 million, reversing a prior year loss.

• Surpassed 500,000 launchers sold milestone, expanded production capacity to 24,000 launchers per month, and opened a new U.S. ammunition facility.

• Expanded retail presence with new company-owned stores and a store-within-a-store pilot at Sportsman's Warehouse, aiming for rapid rollout and high conversion rates.

• Direct-to-consumer sales, especially via byrna.com, Amazon, and influencer partnerships, were key growth drivers.

Financial highlights

• FY 2024 gross profit was $52.8 million (62% margin), up from $23.6 million (56% margin) in FY 2023; Q4 gross profit was $17.6 million (63% margin), up from $9 million (58% margin) in Q4 2023.

• Adjusted EBITDA for FY 2024 was $11.5 million (vs. -$2 million prior year); Q4 adjusted EBITDA was $5.2 million (vs. $0.4 million prior year).

• Cash and equivalents at year-end were $16.8 million, with total cash and short-term securities at $25.7 million; no debt.

• Inventory increased to $20 million, up from $13.9 million, partly to support the upcoming Compact Launcher launch.

• Return on ad spend (ROAS) above 5.0X for 2024.

Outlook and guidance

• Expects strong double-digit revenue growth in 2025, though not at 2024's 100% rate; Q1 to be a record quarter except for Q4.

• Margins expected to improve further with cost reductions, economies of scale, and higher-margin new products.

• Plans to expand U.S. sourcing to nearly 100% by end of 2025, reducing reliance on China.

• Retail store ramp-up expected to take 4–6 months; Sportsman's Warehouse pilot to be evaluated over 3–4 months for broader rollout.

• Anticipates further expansion of retail presence and international sales, including a major order from Argentina.