Byrna Technologies reports Q2 EPS 10c vs. 9c last year

Reports Q1 revenue $28.5M, consensus $28.47M. Byrna CEO Bryan Ganz stated: “The launch of the Byrna CL in May helped us deliver a record $28.5 million in revenue for the second quarter. Despite overall softness in consumer spending, our focused marketing and retail expansion strategies allowed us to continue growing our total addressable market and reach new milestones. Looking ahead, we expect that the CL will be a larger part of our sales mix, especially now that it is available to customers on Amazon. Our dealer channel is also becoming a larger percentage of total sales, increasing 106% in the second quarter, supported by our partnership with Sportsman’s Warehouse. We’ve successfully rolled out the first 12 store-within-a-store locations and plan to add another 10 stores in the third quarter in addition to 38 stores with a point of sale display. Our company-owned stores continue to outperform expectations, with five locations collectively averaging $69,000 in sales during May. Our Scottsdale location, which has only been open for a few months, is already performing at levels similar to our longstanding retail store in Las Vegas. We believe our company-owned stores will continue to perform well and become strong contributors as we further increase local and national brand awareness. On the marketing front, we continue to diversify our approach. We recently added Tucker Carlson to our roster of celebrity influencers, and while it is still early, initial web traffic trends have been encouraging. Additionally, we’ve begun integrating AI tools into our content production, which is already helping us accelerate creative testing and expand our marketing reach. Operationally, we have adjusted production to align with current demand following the CL launch and elevated inventory build. Ahead of the CL debut, production was running heavy in an effort to prepare for the launch. We are now producing at a steady state pace of 15,000 units per month and have implemented a more efficient assembly structure that allows us to maintain output with a smaller, more agile workforce. Looking ahead, we expect consumer sentiment to remain subdued, which may continue to limit near-term revenue upside. However, we are confident that the growing momentum of the CL and our expanding retail presence position us well to deliver strong year-over-year growth in the second half of the year. We also expect our cash position to increase as our heightened inventory levels normalize over the coming quarters. While the third quarter is typically a seasonally slower period for Byrna, we remain focused on executing against our operational priorities, expanding market awareness, and setting the stage for a strong finish to the year.”