Byrna Technologies Inc (NASDAQ:BYRN), a personal defense technology company specializing in the development, manufacture, and sale of innovative less-lethal personal security solutions, stock fell 8.76% (As on July 10, 11:17:36 AM UTC-4, Source: Google Finance) after the company posted mixed result for the second quarter of FY 24. Gross profit for Q2 2024 was $12.6 million (62% of net revenue), up from $6.2 million (54% of net revenue) in Q2 2023. The increase in gross profit was driven by the increase in the proportion of sales made through the high-margin direct-to-consumer (DTC) channels (Byrna.com and Amazon.com) as well as a reduction in component costs driven through an intensive cost reduction effort focused on “design for manufacturability” spearheaded by Byrna’s engineering team as well as the economies of scale resulting from increased production volumes. Net income for Q2 2024 was $2.1 million compared to a loss of approximately $(1.1) million for Q2 2023. Adjusted EBITDA, a non-GAAP metric reconciled below, for Q2 2024 totaled $2.9 million, compared to $0.8 million in Q2 2023. Cash and cash equivalents at May 31, 2024 totaled $24.8 million compared to $20.5 million at November 30, 2023. Inventory at May 31, 2024 totaled $15.5 million compared to $13.9 million at November 30, 2023. The Company has no current or long-term debt.

Moreover, the company has expanded launcher production capacity to 18,000 units per month on a single shift, allowing Byrna to successfully work through its backlog and build inventory ahead of the holiday season. The company has received an order for 2,500 Byrna SD launchers from the armed forces of a prominent Central American country, with 1,500 units delivered so far and the rest due in the third quarter. The company has added Dan Bongino, Dana Loesch, and Mike Gallagher to its roster of celebrity influencers. The celebrity endorsement program continues to deliver more than a 5X return on ad spend (ROAS), driving strong year-over-year growth and record Q2 2024 results.

BYRN in the second quarter of FY 24 has reported the adjusted earnings per share of 13 cents, beating the analysts’ estimates for the adjusted loss per share of 1 cent, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 76 percent to $20.27 million in the second quarter of FY 24, missing the analysts’ estimates for revenue by 0.10%. The 76% year-over-year increase is primarily due to the transformational shift in Byrna’s advertising strategy that the Company started to implement last September.