Byrna reports weaker fiscal Q2 results as revenue fell sharply and losses widened beyond expectations.
Stock Earnings Results
July 9, 2026
Table of Contents
July 9, 2026
Byrna Technologies Inc. (NASDAQ: BYRN) reported fiscal second-quarter 2026 results below expectations, with revenue falling sharply, losses widening, and management saying fiscal 2026 will not be a revenue-growth year.
Byrna is a personal defense technology company that develops, manufactures, and sells less-lethal personal security products and related accessories.
The company reported a loss of $0.44 per share, below estimates for a loss of $0.10, representing a negative 340.0% earnings surprise. Revenue came in at $16.39 million, below estimates of $22.91 million, with revenue declining 42.5%.
Net revenue fell to $16.4 million from $28.5 million in the prior-year quarter.
The decline was driven mainly by weaker e-commerce sales and slower reorder activity from dealers and chain stores after substantial restocking in the first quarter.
Gross profit fell to $1.8 million, or 11% of revenue, compared with $17.6 million, or 62% of revenue, a year earlier.
The reported gross margin was hurt by a one-time $5.9 million inventory write-down and a $3.5 million equipment impairment charge. These were partly offset by a $1.1 million tariff refund.
Excluding those items, adjusted gross profit was $10.1 million, representing adjusted gross margin of about 62%.
Operating expenses increased 2.7% to $14.6 million, reflecting an impairment charge and continued marketing investment, partly offset by lower variable selling expenses tied to reduced sales.
Net loss was $10.1 million, compared with net income of $2.4 million a year earlier.
Adjusted EBITDA was a loss of $0.6 million, compared with positive adjusted EBITDA of $4.3 million in the prior-year quarter.
Management said the quarter was weaker than expected due to softness in the direct-to-consumer channel and slower retail reorder activity.
Web traffic remained weak, while overall conversion levels and average order value were below expectations.
Retail partners also entered the quarter with elevated inventory after meaningful post-holiday restocking in the first quarter. Sell-through did not improve fast enough to support consistent reorders.
Byrna reduced launcher assembly operations from four lines to two and exited in-house ammunition manufacturing to better align production with demand and reduce inventory over time.
Byrna entered into a binding agreement to acquire HERO Defense Systems, a complementary less-lethal self-defense company. The deal is expected to expand Byrna’s product portfolio across more price points and everyday-carry form factors.
The company also expanded its “try before you buy” pilot program after early results showed an approximately 30% conversion rate among participating customers who received a demo unit.
Byrna said its “Find the Right Launcher” guided shopping experience generated more than 150,000 responses since launching in April, with customers using the tool converting at about twice the rate of the overall website.
The company also activated its Fox Sports media partnership through iHeartMedia, appointed HLK as agency of record, and selected Acceleration Partners to support influencer and affiliate marketing.
Byrna ended the quarter with $10.4 million in cash, cash equivalents, and marketable securities, down from $15.5 million at the end of November 2025.
Inventory was $30.4 million, compared with $32.7 million at the end of November 2025.
Management said fiscal 2026 will not be a revenue-growth year. The company expects improvement from the first half to the second half as retailers prepare for the holidays and more marketing, conversion, and customer-acquisition initiatives enter the market.
Byrna said it is planning around current demand trends rather than assuming a quick return to prior growth rates.
Investors are likely watching e-commerce traffic, website conversion, average order value, retail sell-through, reorder activity, inventory reduction, adjusted gross margin, cash burn, HERO Defense integration, and whether Byrna’s new marketing programs can restart demand.
The quarter showed a major reset in expectations, with management now focused on stabilizing demand and improving operating efficiency.
Byrna’s quarter was a demand and inventory reset.
Revenue missed expectations by a wide margin, net loss widened, and management acknowledged that fiscal 2026 will not be a growth year. The company is now cutting production capacity, exiting less efficient operations, working down inventory, and trying to rebuild demand through retail execution and customer acquisition programs.
The key question is whether these actions can turn weak sell-through into a more stable second half. Byrna still has brand awareness initiatives and new conversion tools in place, but investors will likely need evidence that traffic, conversion, and retail reorders are improving.
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