Byrna Technologies Inc (NASDAQ:BYRN) stock fell 5.15% (As on July 11, 11:22:46 AM UTC-4, Source: Google Finance) after the company reported better-than-expected second quarter results, as the personal defense technology company saw strong demand for its new compact launcher and expanded retail presence. The company’s strong performance was primarily driven by the launch of its new Byrna Compact Launcher (CL) and a 106% increase in dealer sales compared to the same period last year. The expansion of Byrna’s partnership with Sportsman’s Warehouse contributed significantly to the growth in dealer channel revenue. Gross profit for the quarter increased to $17.6 million, representing 62% of net revenue, unchanged from the same margin in the year-ago period. Operating expenses rose to $14.2 million from $10.6 million a year earlier, primarily due to higher variable selling expenses, payroll costs, and increased marketing spend. The company’s cash position decreased to $13.0 million from $25.7 million at the end of November 2024, reflecting planned inventory increases ahead of the Compact Launcher release. Inventory at May 31, 2025 totaled $32.3 million, compared to $20.0 million at November 30, 2024. Byrna maintains no current or long-term debt. Net income for Q2 2025 was $2.4 million, an increase from $2.1 million for Q2 2024, driven by an overall increase in product sales.
Moreover, the company expanded Byrna’s store-within-a-store concept with Sportsman’s Warehouse, now operating in 12 stores with an additional 10 stores expected to open in the third quarter. The company has successfully ramping company-owned retail locations launched earlier this year. Byrna’s five locations combined averaged $69,000 in sales during May. Notably, the Scottsdale location reached a sales run rate comparable to Byrna’s long-established Las Vegas store within just a few months of opening.
The company has added Tucker Carlson to the roster of celebrity influencers to amplify brand awareness and promote the normalization of less-lethal solutions.
BYRN in the second quarter of FY25 has reported the adjusted earnings per share of 10 cents, beating the analysts’ estimates for the adjusted earnings per share of 5 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 41 percent to $28.51 million in the second quarter of FY25, beating the analysts’ estimates for revenue by 0.02%.
Looking ahead, management expects the new compact launcher to become a larger part of its sales mix, especially with its recent availability on Amazon. The company also plans to add 10 more store-within-a-store locations with Sportsman’s Warehouse in the third quarter.