Byrna Technologies (BYRN) Q3 2026 Financial Results Summary
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Byrna Technologies (BYRN) Q3 2026: Revenue Decline Signals Challenges Ahead — Cautiously Concerned
Byrna Technologies Inc. reported its fiscal third quarter 2026 results, revealing a significant decline in revenue compared to the previous year. Net revenue for Q3 2026 was $15.3 million, down from $28.2 million in Q3 2025, representing a decrease of approximately $12.9 million or -46%. This stark drop was primarily attributed to a decline in e-commerce sales and slower reorder activity from dealers and chain stores.
This quarter is disappointing for shareholders, as the substantial revenue decline indicates ongoing challenges in the company's sales strategy and market conditions. Despite some operational improvements, the overall financial performance raises concerns about Byrna's ability to regain momentum.
Key Financial Metrics:
- Net Revenue: $15.3 million in Q3 2026 vs. $28.2 million in Q3 2025 (down $12.9 million or -46% YoY)
- Gross Profit: $12.2 million (79% of net revenue) in Q3 2026 vs. $16.9 million (60% of net revenue) in Q3 2025
- Adjusted Gross Profit: $9.9 million (approximately 65% adjusted gross margin) in Q3 2026 vs. 60% in Q3 2025
- Operating Expenses: $15.1 million in Q3 2026 vs. $14.1 million in Q3 2025 (up $1 million or +7%)
- Net Loss: $(2.9) million in Q3 2026 vs. net income of $2.2 million in Q3 2025
- Adjusted EBITDA: $(1.4) million in Q3 2026 vs. $4.1 million in Q3 2025
- Cash, Cash Equivalents, and Marketable Securities: $9.4 million as of August 31, 2026, compared to $9.0 million at the same time last year
Operational Highlights:
- Byrna completed the acquisition of HERO Defense Systems, LLC, which is expected to expand its product portfolio.
- The company onboarded over 50 influencers with a combined following of 3.8 million to enhance brand awareness.
- A successful transition to an outsourced ammunition production model improved gross margins by approximately 1,200 basis points.
- Gross margin expanded from 60% to 79% year-over-year, aided by a one-time $2.3 million tariff refund.
Despite these operational highlights, the financial results indicate that Byrna is struggling to convert these initiatives into sustainable revenue growth. The increase in operating expenses, driven by marketing investments and one-time costs, further complicates the financial outlook.
Shareholder Returns and Guidance:
There were no announcements regarding dividends or share buybacks in this quarter. The management commentary suggests a cautious optimism about future performance, with expectations for sequential improvement as the company approaches the holiday sales season. However, the significant revenue drop raises questions about the effectiveness of current strategies.
Forward-Looking Catalysts:
Investors should closely monitor Byrna's performance in the upcoming quarters, particularly during the critical holiday sales period. Key areas to watch include:
- The effectiveness of new marketing initiatives and partnerships in driving sales.
- The impact of the HERO Defense Systems acquisition on product offerings and revenue.
- Progress in inventory normalization and cash generation as the company aims to improve working capital efficiency.
In conclusion, while Byrna Technologies is taking steps to enhance its operational efficiency and brand presence, the substantial revenue decline this quarter is a significant concern for shareholders. The company must demonstrate its ability to translate operational improvements into financial performance to regain investor confidence.
Here are the extracted tables from the press release in markdown format:
Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)
(Amounts in thousands except share and per share data)
Note: All amounts are in thousands.
| For the Three Months Ended | August 31 2026 | August 31 2025 | For the Nine Months Ended | August 31 2026 | August 31 2025 |
|---|---|---|---|---|---|
| Net Revenue | $ 15,235 | $ 28,204 | $ 60,205 | $ 82,853 | $ 34,445 |
| Cost of Goods Sold | $ 3,142 | $ 11,612 | $ 29,346 | $ 32,414 | $ 28,277 |
| Gross Profit | $ 12,093 | $ 16,592 | $ 30,859 | $ 50,439 | $ 6,168 |
| Operating Expenses | $ 15,055 | $ 14,114 | $ 46,437 | $ 42,539 | $ 44,550 |
| Income (Loss) from Operations | $(2,962) | $ 2,478 | $(14,155) | $ 7,885 | $ 38,485 |
| Other Income | --- | --- | --- | --- | --- |
| Income Before Income Taxes | $(2,962) | $ 2,478 | $(14,155) | $ 7,990 | $ 48,785 |
| Income Tax Benefit | $ 0 | $(628) | $ 2,670 | $(1,620) | $(6,785) |
| Net Income (Loss) | $(2,962) | $ 2,220 | $(12,634) | $ 6,324 | $ 41,175 |
| For the Current Period Adjustments for the Per Share | |
|---|---|
| Basic Net Income (Loss) per Share | $(0.13) |
| Diluted Net Income (Loss) per Share | $(0.13) |
| Weighted Average Shares Used to Compute Net Income per Share, Basic | 22,945 |
| Weighted Average Shares Used to Compute Net Income per Share, Diluted | 24,188 |
Condensed Consolidated Balance Sheets
(Amounts in thousands except share and per share data)
Note: All amounts are in thousands.
| August 31 2026 | November 30, 2025 | |
|---|---|---|
| ASSETS | ||
| CURRENT ASSETS | ||
| Cash and Cash | $ 8,418 | $ 13,727 |
| Equivalents | ||
| Marketable Securities | $ 1,001 | $ 1,754 |
| Accounts Receivable, Net | $ 2,538 | $ 10,840 |
| Inventory, Net | $ 29,974 | $ 32,694 |
| Prepaid Expenses and Other Current Assets | $ 3,821 | $ 4,681 |
| Total Current Assets | $ 45,752 | $ 63,696 |
| LONG TERM ASSETS | ||
| Deposits for Equipment | $ 245 | $ 1,495 |
| Right-of-use-Asset, Net | $ 1,051 | $ 2,042 |
| Property and Equipment, Net | $ 3,869 | $ 7,726 |
| Intangible Assets, Net | $ 3,944 | $ 3,086 |
| Goodwill | $ 2,714 | $ 2,258 |
| Deferred Tax Asset | $ 6,855 | $ 4,134 |
| Other Assets | $ 153 | $ 51 |
| TOTAL ASSETS | $ 64,583 | $ 84,488 |
| LIABILITIES | ||
| CURRENT LIABILITIES | ||
| Accounts Payable and Accrued Liabilities | $ 7,374 | $ 15,864 |
| Operating Lease Liabilities, Current | $ 705 | $ 734 |
| Deferred Revenue, Current | $ 186 | $ 496 |
| Total Current Liabilities | $ 8,265 | $ 17,094 |
| LONG TERM LIABILITIES | ||
| Deferred Revenue, Non-Current | $ 18 | $ 25 |
| Operating Lease Liabilities, Non-Current | $ 532 | $ 1,612 |
| Contingent Consideration Liability, Non-Current | $ 649 | $ 0 |
| Total Liabilities | $ 9,464 | $ 18,731 |
| STOCKHOLDERS’ EQUITY | ||
| Preferred Stock | $ 0 | $ 0 |
| Common Stock | $ 25 | $ 25 |
| Additional Paid-in Capital | $ 138,107 | $ 135,870 |
| Treasury Stock | $(23,308) | $(22,355) |
| Accumulated Deficit | $(59,294) | $(47,096) |
| Accumulated Other Comprehensive Loss | $(411) | $(687) |
| Total Stockholders’ Equity | $ 55,119 | $ 65,757 |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 64,583 | $ 84,488 |
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