Byrna Technologies (BYRN) Q2 2026 Financial Results Summary
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Byrna Technologies (BYRN) Q2 2026: Revenue Decline Signals Challenges Ahead — Cautiously Concerned
Byrna Technologies Inc. reported a disappointing fiscal second quarter for 2026, with net revenue of $16.4 million, down $12.1 million or approximately 43% from $28.5 million in the same quarter last year. This significant decline reflects ongoing challenges in e-commerce sales and slower reorder activity from retail partners, raising concerns for shareholders about the company's near-term growth prospects.
Key Financial Metrics
- Net Revenue: $16.4 million (Q2 2026) vs. $28.5 million (Q2 2025) — a decrease of $12.1 million or 43% YoY.
- Gross Profit: $1.8 million (11% of net revenue) vs. $17.6 million (62% of net revenue) in Q2 2025.
- Operating Expenses: $14.6 million, up from $14.2 million in Q2 2025, an increase of 2.7%.
- Net Loss: $(10.1) million compared to a net income of $2.4 million in Q2 2025.
- Adjusted EBITDA: $(0.6) million vs. $4.3 million in Q2 2025.
- Cash and Cash Equivalents: $10.4 million as of May 31, 2026, down from $15.5 million at the end of November 2025.
- Inventory: $30.4 million, compared to $32.7 million at the end of November 2025.
Analyst Opinion
This quarter's results are disappointing for shareholders, primarily due to the drastic revenue decline and the substantial net loss. The company has cited a combination of factors, including weak e-commerce performance and high inventory levels at retail partners, which have hindered reorder activity. The reported gross profit margin has also plummeted, reflecting operational inefficiencies and significant one-time charges, including a $5.9 million inventory write-down and a $3.5 million impairment of equipment.
Despite these challenges, Byrna's management remains optimistic about future initiatives, such as the "try before you buy" program, which has shown a 30% conversion rate among participants. However, the overall sentiment is cautious, as the company has indicated that fiscal 2026 will not be a revenue-growth year, and they are adjusting their expectations accordingly.
Operational Highlights
- Byrna has entered into a binding agreement to purchase HERO Defense Systems, which could enhance its product portfolio.
- The company has initiated a "try before you buy" pilot program, achieving a 30% conversion rate among customers who received demo units.
- Byrna has reduced its launcher assembly operations from four lines to two and ceased in-house ammunition manufacturing to align production with current demand.
Forward-Looking Statements
Management has indicated that they expect improvement in the second half of fiscal 2026 as they prepare for the holiday season and implement marketing initiatives aimed at boosting customer acquisition and conversion rates. Investors should closely monitor the effectiveness of these initiatives and the company's ability to stabilize revenue and improve operational efficiency in the upcoming quarters.
In conclusion, while Byrna Technologies is taking steps to address its current challenges, the significant revenue decline and net loss in Q2 2026 raise concerns about its short-term performance. Investors should watch for signs of recovery in the second half of the fiscal year, particularly in e-commerce sales and retail partnerships, as the company seeks to regain momentum.
Note: The amounts in the following tables are in thousands.
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
| For the Three Months Ended | May 31, 2026 | May 31, 2025 | For the Six Months Ended | May 31, 2026 | May 31, 2025 |
|---|---|---|---|---|---|
| Net revenue | $16,347 | $28,556 | $45,733 | $54,609 | $62,045 |
| Cost of goods sold | $14,564 | $10,949 | $26,570 | $21,233 | $28,640 |
| Gross profit | $1,783 | $17,607 | $19,163 | $33,969 | $33,405 |
| Operating expenses | $14,619 | $14,230 | $31,125 | $28,422 | $28,436 |
| Income (loss) from operations | $(12,836) | $3,377 | $(11,962) | $5,022 | $5,005 |
| Other income | |||||
| Foreign currency translation loss | $41 | $(135) | $(197) | $(215) | |
| Interest income | $42 | $116 | $130 | $303 | |
| Other income | $13 | $18 | $32 | $17 | |
| Income before income tax | $(12,836) | $3,377 | $(11,962) | $5,127 | $5,005 |
| Income tax benefit (expense) | $2,662 | $(898) | $2,619 | $(1,020) | |
| Net income (loss) | $(10,174) | $2,479 | $(9,343) | $4,089 | $4,117 |
| Adjusted for the unrealized gain on marketable securities | $(91) | $76 | $245 | $(54) | |
| Net income (loss) | $(10,174) | $2,574 | $(9,343) | $4,112 | $4,117 |
| Basic net income (loss) per share | $(0.44) | $0.11 | $(0.41) | $0.18 | |
| Diluted net income (loss) per share | $(0.44) | $0.10 | $(0.41) | $0.17 | |
| Weighted average shares used to compute net income per share, basic | 22,605 | 22,574 | 22,596 | 22,654 | |
| Weighted average shares used to compute net income per share, diluted | 22,605 | 23,120 | 22,596 | 24,016 |
Condensed Consolidated Balance Sheets
| May 31, 2026 | November 30, 2025 | |
|---|---|---|
| ASSETS | ||
| CURRENT ASSETS | ||
| Cash and cash equivalents | $9,436 | $13,727 |
| Marketable Securities | $1,002 | $1,754 |
| Accounts receivable, net | $4,437 | $10,840 |
| Inventory, net | $30,445 | $32,694 |
| Prepaid expenses and other current assets | $4,009 | $4,679 |
| Total current assets | $49,329 | $63,694 |
| LONG TERM ASSETS | ||
| Deposits for equipment | $541 | $1,495 |
| Right-of-use-asset, net | $1,714 | $2,042 |
| Property and equipment, net | $4,047 | $7,726 |
| Intangible assets, net | $2,956 | $3,085 |
| Goodwill | $2,258 | $2,258 |
| Deferred tax asset | $7,395 | $4,135 |
| Other assets | $177 | $51 |
| TOTAL ASSETS | $68,417 | $84,486 |
| LIABILITIES | ||
| CURRENT LIABILITIES | ||
| Accounts payable and accrued liabilities | $9,033 | $15,864 |
| Operating lease liabilities, current | $777 | $734 |
| Deferred revenue, current | $334 | $496 |
| Total current liabilities | $10,144 | $17,094 |
| LONG TERM LIABILITIES | ||
| Deferred revenue, non-current | $20 | $25 |
| Operating lease liabilities, non-current | $1,270 | $1,612 |
| Total liabilities | $11,434 | $18,731 |
| STOCKHOLDERS’ EQUITY | ||
| Preferred stock | $— | $— |
| Common stock | $25 | $25 |
| Additional paid-in capital | $137,075 | $135,870 |
| Treasury stock | $(23,308) | $(22,355) |
| Accumulated deficit | $(56,383) | $(47,096) |
| Accumulated other comprehensive loss | $(426) | $(689) |
| Total Stockholders’ Equity | $56,983 | $65,755 |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $68,417 | $84,486 |
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