Byrna Reports Q3 Earnings with Revenue Drop but Improved Margins
Byrna Technologies (BYRN) reported a net revenue of $15.3 million for the third quarter, reflecting a significant year-over-year decline driven by reduced e-commerce sales and slower retail reorder activity. Despite this drop in revenue, adjusted gross margin improved to 64.5%, up from 62% in Q2 and an increase of 500 basis points compared to last year. The company also noted a one-time $2.3 million tariff refund contributing positively to its financials. The firm reported a net loss of $2.9 million, or $0.13 per diluted share, contrasting with a profit in the same period last year. Operating expenses rose by 7% due to new marketing initiatives and bad debt costs totaling $1.7 million from two international customers. However, digital engagement showed improvement, including increased website sessions and social media activity driven by an expanded influencer network. Byrna is focusing on operational efficiency and shifting its marketing strategy toward mainstream platforms like national radio in addition to expanding its creator ecosystem. The company aims for further inventory reduction during the fourth quarter as it continues navigating challenges related to partner inventory levels affecting reorder activity.