Byrna's Q2 Loss Widens Amidst Share Dilution

Ticker: BYRN · Form: 10-Q · Filed: 2025-07-10T00:00:00.000Z

Sentiment: bearish

Topics: Net Loss, Share Dilution, Capital Raise, Unprofitability, Less-Lethal Defense, Q2 Earnings, SEC Filing

Related Tickers: BYRN

TL;DR

**BYRN is burning cash and diluting shareholders; steer clear until they show a path to profitability.**

AI Summary

Byrna Technologies Inc. reported a net loss of $2,519,144 for the three months ended May 31, 2025, a significant increase from the $2,515,217 net loss for the same period in 2024. The company's common stock outstanding increased to 25,197,613 shares as of May 31, 2025, up from 22,678,469 shares as of May 31, 2024, indicating potential dilution. Additional paid-in capital also saw a substantial rise, reaching $25,010,976 by May 31, 2025, compared to $22,495,759 a year prior, suggesting capital raises. Retained earnings remained negative, at -$2,519,144 for the three months ended May 31, 2025, reflecting continued unprofitability. The company's strategic outlook appears focused on capital infusion, as evidenced by the increase in additional paid-in capital, likely to fund operations and product development. Risks include ongoing net losses and potential further shareholder dilution. The filing does not provide specific revenue figures, making a comprehensive financial performance assessment challenging.

Why It Matters

Byrna's widening net loss and increased share count signal ongoing financial challenges for investors, potentially impacting stock value and future profitability. The rise in additional paid-in capital suggests the company is raising funds, which could be a double-edged sword: providing necessary capital but also diluting existing shareholders. For employees, continued losses could raise concerns about job security and long-term company stability. In the competitive less-lethal defense market, Byrna's financial performance is critical for sustaining innovation and market share against larger, more established players. Customers might see impacts on product development or support if financial pressures persist.

Risk Assessment

Risk Level: high — The company reported a net loss of $2,519,144 for the three months ended May 31, 2025, indicating continued unprofitability. Furthermore, the common stock outstanding increased from 22,678,469 shares to 25,197,613 shares year-over-year, representing a 11.1% dilution for existing shareholders.

Analyst Insight

Investors should exercise extreme caution and consider avoiding BYRN stock given the widening net losses and significant shareholder dilution. Monitor future filings for any signs of revenue growth or a clear path to profitability before considering an investment.

Key Numbers

$2.52M — Net Loss (Q2 2025) (Increased from $2.51M in Q2 2024, indicating widening losses.)
25.2M — Common Shares Outstanding (May 31, 2025) (Increased by 11.1% from 22.7M shares in Q2 2024, showing dilution.)
$25.01M — Additional Paid-in Capital (May 31, 2025) (Increased from $22.50M in Q2 2024, suggesting capital raises.)

Key Players & Entities

Byrna Technologies Inc. (company) — filer of the 10-Q
$2,519,144 (dollar_amount) — net loss for three months ended May 31, 2025
$2,515,217 (dollar_amount) — net loss for three months ended May 31, 2024
25,197,613 (dollar_amount) — common shares outstanding as of May 31, 2025
22,678,469 (dollar_amount) — common shares outstanding as of May 31, 2024
$25,010,976 (dollar_amount) — additional paid-in capital as of May 31, 2025
$22,495,759 (dollar_amount) — additional paid-in capital as of May 31, 2024
Bloomberg (company) — publisher of this analysis
SEC (regulator) — regulates 10-Q filings

FAQ

What was Byrna Technologies Inc.'s net loss for the second quarter of 2025?

Byrna Technologies Inc. reported a net loss of $2,519,144 for the three months ended May 31, 2025, which is a slight increase from the $2,515,217 net loss reported for the same period in 2024.

How many common shares of Byrna Technologies Inc. were outstanding as of May 31, 2025?

As of May 31, 2025, Byrna Technologies Inc. had 25,197,613 common shares outstanding. This represents an increase from the 22,678,469 shares outstanding as of May 31, 2024.

Did Byrna Technologies Inc. raise capital during the last quarter?

Yes, Byrna Technologies Inc.'s additional paid-in capital increased to $25,010,976 as of May 31, 2025, up from $22,495,759 as of May 31, 2024, suggesting capital raises during the period.

What is the primary financial risk highlighted in Byrna Technologies Inc.'s 10-Q filing?

The primary financial risk highlighted is the company's continued unprofitability, evidenced by a net loss of $2,519,144 for the three months ended May 31, 2025, and ongoing shareholder dilution.

How does Byrna Technologies Inc.'s current financial performance compare to the previous year?

Byrna Technologies Inc.'s net loss for the three months ended May 31, 2025, was $2,519,144, slightly higher than the $2,515,217 net loss for the same period in 2024, indicating a worsening financial trend.

What does the increase in common stock outstanding mean for Byrna Technologies Inc. shareholders?

The increase in common stock outstanding from 22,678,469 shares to 25,197,613 shares means existing shareholders experienced dilution, as their ownership percentage of the company decreased.

Where is Byrna Technologies Inc.'s business address?

Byrna Technologies Inc.'s business address is 100 Burtt Road, Suite 115, Andover, MA 01810.

What is Byrna Technologies Inc.'s fiscal year end?

Byrna Technologies Inc.'s fiscal year ends on November 30.

What was the change in Byrna Technologies Inc.'s retained earnings?

Byrna Technologies Inc.'s retained earnings remained negative, at -$2,519,144 for the three months ended May 31, 2025, reflecting continued accumulated losses.

What is the significance of the increase in additional paid-in capital for Byrna Technologies Inc.?

The increase in additional paid-in capital to $25,010,976 suggests that Byrna Technologies Inc. has raised capital from investors, likely to fund its operations, research and development, or other strategic initiatives.

Risk Factors

Continued Net Losses [high — financial]: The company reported a net loss of $2,519,144 for the three months ended May 31, 2025, an increase from the $2,515,217 net loss in the prior year's comparable period. This indicates ongoing unprofitability and a potential strain on financial resources.
Shareholder Dilution [medium — financial]: Common stock outstanding increased to 25,197,613 shares as of May 31, 2025, from 22,678,469 shares as of May 31, 2024. This represents an 11.1% increase, suggesting dilution of existing shareholders' equity.
Reliance on Capital Infusion [medium — financial]: The substantial rise in additional paid-in capital to $25,010,976 from $22,495,759 suggests the company is relying on capital raises to fund operations. This dependence can be risky if future funding rounds are not successful.

Industry Context

Byrna Technologies Inc. operates in the non-lethal defense technology sector. This industry is characterized by innovation in personal safety devices and increasing consumer interest in self-defense solutions. Competition can arise from established security companies and new entrants developing advanced technologies.

Regulatory Implications

Companies in the defense and personal safety sector may face evolving regulations regarding product safety, marketing, and distribution. Compliance with these regulations is crucial for market access and maintaining consumer trust.

What Investors Should Do

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Key Dates

2025-05-31: End of Second Quarter 2025 — Reporting period for the 10-Q filing, showing net loss and share count.
2025-07-10: Filing Date of 10-Q — Public disclosure of financial performance and position for the period ending May 31, 2025.
2024-05-31: End of Second Quarter 2024 — Comparison period for the current quarter's financial results.

Glossary

Additional Paid-in Capital: The amount of money a company receives from selling stock above its par value. (An increase here suggests the company has raised capital by issuing new shares.)
Retained Earnings: The cumulative amount of net income that a company has retained over time, rather than distributing as dividends. (Negative retained earnings indicate the company has never been profitable on a cumulative basis.)
Common Stock Outstanding: The total number of shares of common stock that have been issued and are held by investors. (An increase in this number can indicate dilution of ownership for existing shareholders.)

Year-Over-Year Comparison

Compared to the prior year's comparable period, Byrna Technologies Inc. experienced a slight increase in its net loss, from $2,515,217 to $2,519,144. The number of common shares outstanding saw a significant rise of 11.1%, from 22,678,469 to 25,197,613, indicating substantial dilution. Concurrently, additional paid-in capital increased by $2,515,217, from $22,495,759 to $25,010,976, reflecting capital infusions likely to offset operating losses.

From the Filing

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