Byrna's Revenue Soars 43% as Net Income Doubles

TL;DR

**Byrna's financials are looking strong with double-digit growth, but watch that cash burn and inventory build-up closely.**

AI Summary

Byrna Technologies Inc. reported robust financial performance for the nine months ended August 31, 2025, with net revenue surging to $82.874 million, a significant increase from $57.777 million in the prior year. Net income more than doubled to $6.324 million, up from $3.120 million in the same period last year, demonstrating improved profitability. Gross profit also saw substantial growth, reaching $50.410 million compared to $35.211 million. However, the company experienced a notable decrease in cash and cash equivalents, falling from $16.829 million at November 30, 2024, to $6.495 million by August 31, 2025, primarily due to increased inventory and accounts receivable. Inventory, net, rose to $34.106 million from $19.972 million, and accounts receivable, net, increased to $8.872 million from $2.630 million. The company also ceased manufacturing operations at its Pretoria, South Africa facility during the third quarter of 2025, indicating a strategic shift in its production footprint. Despite the cash outflow, total assets increased to $78.562 million from $71.922 million, and total stockholders' equity grew to $63.143 million from $54.369 million.

Why It Matters

Byrna's impressive revenue and net income growth signal strong market demand for its non-lethal self-defense products, potentially attracting new investors seeking exposure to the personal security sector. The significant increase in inventory and accounts receivable, while supporting growth, could strain liquidity if not managed effectively, impacting short-term operational flexibility. For employees, the cessation of manufacturing in South Africa suggests a consolidation of operations, which could lead to shifts in global staffing and production strategies. Customers benefit from a growing company with potentially more resources for product development and distribution, but the competitive landscape for personal safety tools remains intense, requiring Byrna to innovate continuously.

Risk Assessment

Risk Level: medium — The company's cash and cash equivalents decreased significantly from $16.829 million to $6.495 million, a 61.4% drop, primarily due to a $14.134 million increase in inventory and a $6.242 million increase in accounts receivable. This substantial cash outflow from operating activities, totaling $11.503 million, indicates potential liquidity challenges despite strong revenue growth.

Analyst Insight

Investors should monitor Byrna's next earnings report for signs of improved cash flow management and inventory turnover. While the revenue and net income growth are positive, the significant cash burn and inventory build-up warrant caution; consider holding or initiating a small position if future reports show better working capital efficiency.

Financial Highlights

revenue

$82.874M

total Assets

$78.562M

net Income

$6.324M

eps

$0.28

gross Margin

60.8%

cash Position

$6.495M

revenue Growth

+43.4%

Key Numbers

• $82.874M — Net Revenue (Increased 43.4% for the nine months ended August 31, 2025, from $57.777M in 2024.)
• $6.324M — Net Income (More than doubled for the nine months ended August 31, 2025, from $3.120M in 2024.)
• $6.495M — Cash and Cash Equivalents (Decreased 61.4% from $16.829M at November 30, 2024, to August 31, 2025.)
• $34.106M — Inventory, net (Increased 70.8% from $19.972M at November 30, 2024, to August 31, 2025.)
• $8.872M — Accounts Receivable, net (Increased 237.3% from $2.630M at November 30, 2024, to August 31, 2025.)
• $11.503M — Net Cash Used in Operating Activities (A significant outflow for the nine months ended August 31, 2025, compared to $4.479M provided in 2024.)
• $50.410M — Gross Profit (Increased 43.1% for the nine months ended August 31, 2025, from $35.211M in 2024.)
• $0.28 — Basic Net Income Per Share (Increased from $0.14 for the nine months ended August 31, 2024, to August 31, 2025.)

Key Players & Entities

• Byrna Technologies Inc. (company) — registrant
• $82.874 million (dollar_amount) — net revenue for nine months ended August 31, 2025
• $57.777 million (dollar_amount) — net revenue for nine months ended August 31, 2024
• $6.324 million (dollar_amount) — net income for nine months ended August 31, 2025
• $3.120 million (dollar_amount) — net income for nine months ended August 31, 2024
• $6,495 (dollar_amount) — cash and cash equivalents as of August 31, 2025
• $16,829 (dollar_amount) — cash and cash equivalents as of November 30, 2024
• Pretoria, South Africa (location) — manufacturing facility that ceased operations
• $34,106 (dollar_amount) — inventory, net as of August 31, 2025
• $8,872 (dollar_amount) — accounts receivable, net as of August 31, 2025

FAQ

Risk Factors

• Manufacturing Facility Closure [medium — operational]: The company ceased manufacturing operations at its Pretoria, South Africa facility during the third quarter of 2025. This strategic shift may impact production capacity, supply chain reliability, and associated costs.
• Deteriorating Cash Position [high — financial]: Cash and cash equivalents decreased by 61.4% from $16.829 million at November 30, 2024, to $6.495 million by August 31, 2025. This significant outflow is primarily driven by substantial increases in inventory and accounts receivable.
• Inventory and Accounts Receivable Growth [high — financial]: Inventory, net, increased by 70.8% to $34.106 million, and accounts receivable, net, surged by 237.3% to $8.872 million. These increases tie up significant working capital and could indicate slower inventory turnover or collection issues.
• Increased Net Cash Used in Operations [high — financial]: The company experienced a significant outflow of $11.503 million in net cash used in operating activities for the nine months ended August 31, 2025, a substantial increase from $4.479 million provided in the prior year. This trend exacerbates the declining cash position.
• Market Acceptance and Competition [medium — market]: The company's success depends on the market acceptance of its non-lethal defense products. Competition from established players and potential new entrants could impact market share and pricing power.
• Evolving Regulations [medium — regulatory]: The regulatory landscape for non-lethal defense products is subject to change. New or stricter regulations could impact product design, manufacturing, distribution, and sales, potentially increasing compliance costs.

Industry Context

Byrna Technologies operates in the non-lethal defense and security market, a sector experiencing growth driven by increasing consumer interest in personal safety and law enforcement demand for less-lethal alternatives. The competitive landscape includes established players in the security and defense industries, as well as emerging companies offering innovative solutions. Trends include advancements in projectile technology, smart device integration, and evolving regulatory frameworks.

Regulatory Implications

The company faces regulatory scrutiny related to the sale and use of its products, which can vary by jurisdiction. Changes in laws governing non-lethal weapons, import/export restrictions, or product safety standards could impact Byrna's ability to manufacture, distribute, and sell its products globally, potentially requiring significant compliance efforts and investments.

What Investors Should Do

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Key Dates

• 2025-08-31: Nine months ended August 31, 2025 — Reporting period showing significant revenue and net income growth, but also a sharp decline in cash and substantial increases in inventory and receivables.
• 2025-08-31: Cessation of manufacturing operations in Pretoria, South Africa — Indicates a strategic shift in production footprint, potentially impacting future costs and supply chain dynamics.
• 2024-11-30: Balance sheet date for prior year comparison — Provides the baseline for significant changes in cash, inventory, and accounts receivable observed by August 31, 2025.

Glossary

Net Revenue

The total revenue of a company after deducting returns, allowances, and discounts. (Key indicator of sales performance and market demand for Byrna's products.)

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products (Cost of Goods Sold). (Measures the efficiency of production and pricing strategy.)

Cash and Cash Equivalents

Includes cash on hand, bank deposits, and short-term, highly liquid investments that are readily convertible to cash. (Crucial for operational liquidity and short-term financial health.)

Inventory, net

The cost of raw materials, work-in-progress, and finished goods that a company has on hand, net of any write-downs. (Represents capital tied up in goods awaiting sale; significant increases can signal production issues or slower sales.)

Accounts Receivable, net

The money owed to a company by its customers for goods or services delivered but not yet paid for, net of any allowance for doubtful accounts. (Indicates credit sales and the effectiveness of the company's credit and collection policies.)

Net Cash Used in Operating Activities

The net amount of cash spent or generated by a company's normal business operations over a period. (Shows the cash-generating ability of the core business; a significant outflow can be a concern.)

Total Stockholders' Equity

The residual interest in the assets of an entity after deducting all its liabilities. (Represents the net worth of the company belonging to its shareholders.)

Year-Over-Year Comparison

Byrna Technologies has demonstrated impressive top-line growth, with net revenue increasing by 43.4% to $82.874 million for the nine months ended August 31, 2025, compared to the prior year. Net income has more than doubled, indicating improved profitability. However, this growth has come at the cost of a significantly reduced cash position, down 61.4%, driven by a substantial 70.8% increase in inventory and a dramatic 237.3% rise in accounts receivable. Furthermore, net cash used in operating activities has surged, contrasting with a positive inflow in the previous year, highlighting a shift in working capital management and operational cash flow.

Key Financial Figures

• $0 — ange on which registered Common stock, $0.001, par value per share BYRN Nasda

Filing Documents

• byrn20250831_10q.htm (10-Q) — 1288KB
• ex_838104.htm (EX-31.1) — 13KB
• ex_838105.htm (EX-31.2) — 13KB
• ex_838106.htm (EX-32.1) — 6KB
• 0001437749-25-030736.txt ( ) — 7146KB
• byrn-20250831.xsd (EX-101.SCH) — 66KB
• byrn-20250831_cal.xml (EX-101.CAL) — 55KB
• byrn-20250831_def.xml (EX-101.DEF) — 435KB
• byrn-20250831_lab.xml (EX-101.LAB) — 359KB
• byrn-20250831_pre.xml (EX-101.PRE) — 479KB
• byrn20250831_10q_htm.xml (XML) — 1232KB

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 25 Item 4.

Controls and Procedures

Controls and Procedures 25

– OTHER INFORMATION

PART II – OTHER INFORMATION 26 Item 1.

Legal Proceedings

Legal Proceedings 26 Item 1A.

Risk Factors

Risk Factors 26 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 26 Item 3. Defaults Upon Senior Securities 26 Item 4. Mine Safety Disclosures 26 Item 5. Other Information 26 Item 6. Exhibits 27

SIGNATURES

SIGNATURES 28 1 PART 1 – FINANCIAL INFORMATION ITEM 1. Condensed Consolidated Financial Statements BYRNA TECHNOLOGIES INC. Condensed Consolidated Balance Sheets (Amounts in thousands, except share and per share data) August 31, November 30, 2025 2024 Unaudited ASSETS CURRENT ASSETS Cash and cash equivalents $ 6,495 $ 16,829 Accounts receivable, net 8,872 2,630 Inventory, net 34,106 19,972 Prepaid expenses and other current assets 5,402 2,623 Marketable debt securities 2,501 8,904 Total current assets 57,376 50,958 LONG TERM ASSETS Deposits for equipment 2,642 2,665 Right-of-use-assets, net 2,117 2,452 Property and equipment, net 6,780 3,408 Intangible assets, net 3,151 3,337 Goodwill 2,258 2,258 Deferred tax asset 4,187 5,837 Other assets 51 1,007 TOTAL ASSETS $ 78,562 $ 71,922 LIABILITIES CURRENT LIABILITIES Accounts payable and accrued liabilities $ 12,698 $ 13,108 Operating lease liabilities, current 672 539 Deferred revenue, current 249 1,791 Total current liabilities 13,619 15,438 LONG TERM LIABILITIES Deferred revenue, non-current 40 17 Operating lease liabilities, non-current 1,760 2,098 Total liabilities 15,419 17,553 COMMITMENTS AND CONTINGENCIES (NOTE 21) STOCKHOLDERS' EQUITY Preferred stock, $ 0.001 par value, 5,000,000 shares authorized, no shares issued — — Common stock, $ 0.001 par value, 50,000,000 shares authorized. 25,214,110 shares issued and 22,694,966 shares outstanding as of August 31, 2025, and 25,010,976 shares issued and 22,495,759 outstanding as of November 30, 2024 25 25 Additional paid-in capital 135,480 133,029 Treasury stock ( 2,519,144 and 2,515,217 shares purchased as of August 31, 2025 and November 30, 2024, respectively) ( 21,308 ) ( 21,253 ) Accumulated deficit ( 50,459 ) ( 56,783 ) Accumulated other comprehensive loss ( 595 ) ( 649 ) Total Stockholders' Equity 63,143 54,369 TOTAL LIABILITIES AND STOCKHOLDERS' EQ