Byrna Technologies Reports Strong Q1 Growth and Expansion

Byrna Technologies Inc Us ((BYRN)) has held its Q1 earnings call. Read on for the main highlights of the call.

Byrna Technologies Inc. recently held its earnings call, revealing a positive outlook with significant revenue growth and improved profitability. The company is strategically expanding its business, which appears to outweigh challenges such as increased operating expenses and potential margin impacts from tariffs.

Strong Revenue Growth

Byrna Technologies reported an impressive 57% year-over-year increase in net revenue, rising from $16.7 million in Q1 2024 to $26.2 million in Q1 2025. This growth was driven by strong sales momentum, channel expansion, and broader brand adoption, highlighting the company’s successful strategies in capturing market share.

Improved Profitability

The company’s profitability saw a substantial boost, with net income climbing to $1.7 million in Q1 2025 from a mere $17,000 in Q1 2024. Additionally, Byrna’s gross profit improved to 61% of net revenue, up from 58% in the previous year, showcasing enhanced operational efficiency and cost management.

Expansion into Retail and Amazon

Byrna’s expansion into retail and online platforms has been fruitful, with Amazon sales representing 32.6% of total direct-to-consumer sales by the end of Q1 2025, up from 19.3% in Q1 2024. The company also strengthened its retail presence through partnerships with major chains like Sportsman’s Warehouse.

Operational Efficiency and U.S. Sourcing

The company has increased its U.S. content in the supply chain to 87-92%, reducing reliance on foreign suppliers and mitigating tariff impacts. This strategic move enhances Byrna’s operational efficiency and aligns with its long-term growth objectives.

New Product Launches

Byrna is set to launch its Compact Launcher, a smaller and more powerful product, which is anticipated to drive significant sales growth. This new product reflects the company’s commitment to innovation and meeting consumer demand.

Increased Operating Expenses

Operating expenses rose to $14.2 million in Q1 2025 from $9.8 million in Q1 2024, primarily due to increased payroll costs, marketing spend, and variable selling expenses. Despite this rise, the company continues to focus on strategic investments to support its growth trajectory.

Cash and Marketable Securities Decrease

Byrna reported a decrease in cash, cash equivalents, and marketable securities to $19.3 million at the end of Q1 2025 from $25.7 million in Q4 2024. This decrease was attributed to planned increases in inventory and seasonal working capital movements.

Potential Margin Impact from Tariffs and Cost Increases

Despite efforts to mitigate tariff impacts through domestic sourcing, the cost of launchers increased by approximately 16%. This potential margin impact highlights the challenges Byrna faces in maintaining profitability amidst rising costs.

Forward-Looking Guidance

Byrna anticipates continued growth, with a 57% year-over-year increase in net revenue to $26.2 million. Direct-to-consumer sales through Byrna.com and Amazon.com saw significant growth, with Amazon sales outpacing other channels. Dealer sales also rose, with contributions from major chains like Bass Pro Shops. The company expects a 23% effective tax rate in 2025 due to its transition to full taxpayer status.

In summary, Byrna Technologies Inc.’s earnings call reflected a positive sentiment with strong revenue growth and improved profitability. The company’s strategic expansions and new product launches are expected to drive future growth, despite challenges from increased operating expenses and potential margin impacts from tariffs. Byrna’s focus on operational efficiency and market expansion positions it well for continued success.