Byrna Technologies (BYRN) AI Stock Analysis

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Byrna Technologies

(NASDAQ:BYRN)

76Outperform

Byrna Technologies scores well due to strong financial performance with robust revenue growth and profitability improvements. However, challenges such as declining operating cash flow and high valuation metrics temper the overall outlook. Positive earnings call sentiment supports the score, despite technical indicators showing mixed signals.

Positive Factors

Financial Health

Byrna has a good balance sheet with ~$25mn in cash, no debt, and the ability to self-fund growth.

Market Potential

Byrna is viewed as a leader in non-lethal consumer products for self-defense, with a large potential addressable market and the ability to scale both category awareness and sales.

Negative Factors

Market Adoption Risks

Key risks include limited adoption or acceptance of less-lethal products among consumers and challenges in scaling marketing dollars or implementing the store growth strategy.

Byrna Technologies (BYRN) vs. S&P 500 (SPY)

Market Cap

$525.20M

Dividend YieldN/A

Average Volume (3M)709.01K

Price to Earnings (P/E)38.1

Beta (1Y)1.22

Revenue Growth87.26%

EPS GrowthN/A

CountryUS

Employees167

SectorIndustrials

Sector Strength70

IndustryAerospace & Defense

Share Statistics

EPS (TTM)0.61

Shares Outstanding22,667,234

10 Day Avg. Volume797,349

30 Day Avg. Volume709,007

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)4.81

Price to Cash Flow (P/CF)14.20

P/FCF Ratio14.20

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$35.50

Price Target Upside53.22% Upside

Rating ConsensusModerate Buy

Number of Analyst Covering2

Byrna Technologies Business Overview & Revenue Model

Company DescriptionByrna Technologies Inc., a less-lethal defense technology company, develops and manufactures less-lethal munitions. It offers a Byrna line of handheld personal security devices, including the Byrna SD and Byrna SD .68 caliber handheld personal security devices that are designed to be used by civilians and private security professionals, as well as Byrna HD magazines, shoulder-fired launchers, and projectiles. The company also offers accessories and related safety products, including the Byrna Banshee, Byrna Shield, compressed carbon dioxide canisters, sighting systems, holsters, and Byrna-branded apparels. It operates in the United States and South Africa. The company was formerly known as Security Devices International, Inc. and changed its name to Byrna Technologies Inc. in March 2020. Byrna Technologies Inc. was incorporated in 2005 and is headquartered in Andover, Massachusetts.

How the Company Makes MoneyByrna Technologies generates revenue primarily through the sale of its non-lethal personal security devices and related accessories. The key revenue streams include direct sales to consumers via their e-commerce platform, sales to retailers and distributors, and contracts with law enforcement agencies. Byrna also earns revenue from the sale of consumables, such as projectiles and chemical cartridges, which are used with their devices. The company leverages partnerships with retailers and distributors to expand its market reach and increase sales volume, while also focusing on direct-to-consumer sales to capture a larger share of the market.

Byrna Technologies Financial Statement Overview

Summary

Byrna Technologies demonstrates strong revenue growth and improved profitability, with efficient cost management reflected in better margins. The balance sheet is solid, with low leverage and a high equity base, providing financial stability. Despite these strengths, the decline in operating cash flow and negative free cash flow indicate potential liquidity challenges that need monitoring.

Income Statement

Very Positive

Byrna Technologies shows a robust revenue growth with a significant increase from $42.64 million in 2023 to $95.29 million in TTM (Trailing-Twelve-Months) 2025. Gross profit margin has improved to 61.96% in TTM 2025, indicating strong operational efficiency. The net profit margin stands at a healthy 15.15% for TTM 2025, reflecting profitability improvements. EBIT and EBITDA margins have also improved, suggesting better cost management and operational leverage.

Balance Sheet

Positive

The company's debt-to-equity ratio remains low at 0.04, indicating minimal leverage, which reduces financial risk. Return on equity improved to 25.41% in TTM 2025, showing strong profitability relative to shareholders' equity. The equity ratio is robust at 79.99%, signifying a strong equity base with limited liabilities, enhancing financial stability.

Cash Flow

Positive

Operating cash flow decreased significantly in TTM 2025 compared to the previous year, reflecting operational cash generation challenges. However, the company maintains a positive Operating Cash Flow to Net Income ratio of 0.28, indicating efficiency in converting net income to cash. The free cash flow is negative, suggesting potential liquidity constraints if this trend persists.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
95.29M	85.76M	42.64M	48.04M	42.16M	16.57M
	Gross Profit
59.06M	52.77M	23.65M	26.28M	22.89M	7.51M
	EBIT
8.54M	6.67M	-7.79M	-7.46M	-3.29M	-4.31M
	EBITDA
9.31M	6.67M	-6.53M	-6.88M	-2.80M	-11.03M
	Net Income Common Stockholders
14.44M	12.79M	-8.19M	-7.88M	-3.28M	-12.55M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
19.29M	25.73M	20.50M	20.07M	56.31M	3.18M
	Total Assets
71.04M	71.92M	52.31M	57.05M	75.31M	21.22M
	Total Debt
2.54M	2.64M	1.90M	2.55M	1.09M	1.28M
	Net Debt
-5.13M	-14.19M	-18.60M	-17.52M	-55.21M	-1.90M
	Total Liabilities
14.21M	17.55M	9.99M	11.05M	9.22M	12.81M
	Stockholders Equity
56.83M	54.37M	42.32M	45.99M	66.10M	8.41M
Cash Flow		Free Cash Flow
-822.00K	9.39M	2.99M	-17.08M	-6.28M	1.03M
	Operating Cash Flow
4.02M	11.74M	3.89M	-13.83M	-4.44M	2.54M
	Investing Cash Flow
-16.35M	-11.23M	-2.98M	-5.14M	-5.88M	-2.00M
	Financing Cash Flow
-4.54M	-4.55M	-422.00K	-17.04M	57.25M	7.77M

Byrna Technologies Technical Analysis

Technical Analysis Sentiment

Positive

Last Price23.17

Price Trends

50DMA

21.57

Positive

100DMA

24.36

Negative

200DMA

19.22

Positive

Market Momentum

MACD

0.62

Negative

RSI

63.14

Neutral

STOCH

92.13

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BYRN, the sentiment is Positive. The current price of 23.17 is above the 20-day moving average (MA) of 18.76, above the 50-day MA of 21.57, and above the 200-day MA of 19.22, indicating a bullish trend. The MACD of 0.62 indicates Negative momentum. The RSI at 63.14 is Neutral, neither overbought nor oversold. The STOCH value of 92.13 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BYRN.

Byrna Technologies Risk Analysis

Byrna Technologies disclosed 52 risk factors in its most recent earnings report. Byrna Technologies reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Byrna Technologies Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYRN	76 Outperform	$525.20M	38.14	28.88%	―	87.26%	―
CDRE	71 Outperform	$1.24B	33.58	14.21%	1.19%	17.62%	-12.37%
RGR	70 Outperform	$667.66M	22.76	9.39%	1.74%	-1.49%	-34.38%
Sector *	63 Neutral	$4.28B	11.33	5.43%	214.88%	4.12%	-8.65%
NPK	62 Neutral	$602.05M	14.44	11.45%	1.19%	13.88%	19.64%
SWBI	62 Neutral	$418.03M	14.77	8.05%	5.47%	-5.77%	14.45%
POWW	49 Neutral	$211.39M	―	-4.37%	―	-14.06%	-102.73%

* Industrials Sector Average

Performance Comparison

BYRN

Byrna Technologies

23.17

10.29

79.89%

NPK

National Presto

84.28

3.09

3.81%

SWBI

Smith & Wesson Brands

9.50

-6.78

-41.65%

RGR

Sturm Ruger & Company

40.33

-5.15

-11.32%

POWW

AMMO

1.78

-0.80

-31.01%

CDRE

Cadre Holdings

30.45

-3.12

-9.29%

Byrna Technologies Earnings Call Summary

Earnings Call Date: Apr 10, 2025 | % Change Since: 39.75% | Next Earnings Date: Jul 15, 2025

Earnings Call Sentiment Positive

The earnings call reflects a positive sentiment, with significant revenue growth, improved profitability, and strategic business expansions outweighing the challenges of increased operating expenses and potential margin impacts from tariffs.

Highlights

Strong Revenue Growth

Byrna reported a 57% year-over-year increase in net revenue, from $16.7 million in Q1 2024 to $26.2 million in Q1 2025, driven by sales momentum, channel expansion, and broader brand adoption.

Improved Profitability

Net income for Q1 2025 was $1.7 million, a substantial increase from $17,000 in Q1 2024. Gross profit also improved to 61% of net revenue compared to 58% in Q1 2024.

Expansion into Retail and Amazon

Significant growth in Amazon sales, which represented 32.6% of total DTC sales by the end of Q1 2025, up from 19.3% in Q1 2024. The company also expanded its presence with retail partnerships such as the Sportsman's Warehouse collaboration.

Operational Efficiency and U.S. Sourcing

Byrna has significantly increased its U.S. content to 87-92% in its supply chain, reducing reliance on foreign suppliers and mitigating tariff impacts.

New Product Launches

The anticipated release of the Compact Launcher, a smaller and more powerful product, is expected to drive significant sales growth.

Lowlights

Increased Operating Expenses

Operating expenses rose to $14.2 million in Q1 2025 from $9.8 million in Q1 2024, driven by increased payroll costs, marketing spend, and variable selling expenses.

Cash and Marketable Securities Decrease

Cash, cash equivalents, and marketable securities decreased to $19.3 million at the end of Q1 2025 from $25.7 million in Q4 2024, due to planned increases in inventory and seasonal working capital movements.

Potential Margin Impact from Tariffs and Cost Increases

Despite efforts to mitigate tariff impacts, the shift to domestic suppliers has increased the cost of launchers by approximately 16%.

Company Guidance

During Byrna's Fiscal First Quarter 2025 earnings call, the company reported a 57% year-over-year increase in net revenue, totaling $26.2 million. Direct-to-consumer sales through Byrna.com and Amazon.com increased by $6.7 million, with Amazon sales growing at a faster rate. Dealer sales rose by $1.9 million, with significant contributions from chain stores like Bass Pro Shops. Gross profit improved to $15.9 million, or 61% of net revenue, compared to 58% in the previous year, due to enhanced manufacturability and production volumes. Operating expenses increased to $14.2 million, driven by higher selling expenses, marketing spend, and payroll costs. The company achieved net income of $1.7 million and adjusted EBITDA of $2.8 million. Byrna effectively managed its inventory and reported cash and marketable securities of $19.3 million. The company anticipates a 23% effective tax rate due to the transition to full taxpayer status in 2025, resulting from the release of a valuation allowance in Q4 2024.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.