Breaking Down Byrna Technologies Inc. (BYRN) Financial Health: Key Insights for Investors

You're looking at Byrna Technologies Inc. (BYRN) and seeing a growth story, but the financials tell a more nuanced tale of rapid expansion that's straining the balance sheet. The headline numbers are defintely strong: Q2 and Q3 2025 net revenue hit a record $28.5 million and $28.2 million, respectively, with net income totaling $2.4 million and $2.2 million for those same quarters, showing this isn't just a top-line play. Management expects full-year fiscal 2025 revenue growth to land between 35% and 40%, which is fantastic, but here's the quick math: inventory spiked to $34.1 million by August 31, 2025, from $20.0 million nine months earlier, and cash dropped to $9.0 million as a result of that working capital change. This company is growing fast, but growth eats cash. What this estimate hides is the risk of carrying too much stock if the holiday season doesn't deliver, still, the analyst consensus is a Strong Buy with an average price target around $39.50, giving the stock a predicted upside of over 128%. We need to look past the revenue surge and analyze if the inventory build is a smart strategic move for market share or a near-term liquidity risk.

Revenue Analysis

You're looking for a clear picture of where Byrna Technologies Inc. (BYRN)'s growth is coming from, and the answer is a strategic shift from pure e-commerce to a powerful retail expansion. The company is on track to deliver full-year fiscal 2025 revenue growth between 35% and 40%, a strong performance that is diversifying the sales channels.

The core of the business remains the sale of less-lethal personal security solutions, like the new Compact Launcher (CL), but the channel mix is where the real story is. The company has successfully transitioned from being overwhelmingly reliant on direct-to-consumer sales to a model heavily supported by wholesale partners. This is a critical move for long-term stability and market penetration.

Breakdown of Primary Revenue Sources

Byrna Technologies Inc. (BYRN)'s revenue streams are primarily segmented by sales channel, which gives us a look at their market strategy in action. The product mix drives the sales, but the channel dictates the volume and margin. For example, the new Compact Launcher (CL) launch was a key factor in the strong Q2 performance.

The introduction of Exploring Byrna Technologies Inc. (BYRN) Investor Profile: Who's Buying and Why? is also important to understand the broader context of investor interest in this channel shift.

• Products: Launchers (like the CL and Byrna SD) and high-margin consumables (ammunition and CO₂ cartridges).
• Channels: E-commerce (direct-to-consumer), Wholesale/Dealer, Company-owned Retail, and International.
• Services: The recent launch of ByrnaCare™, a protection plan, signals the first steps into a recurring, service-based revenue stream.

Year-over-Year Revenue Growth

The growth trajectory for Byrna Technologies Inc. (BYRN) in fiscal year 2025 has been robust, though the quarterly growth rate has moderated slightly as the company scales off a larger base. The trailing twelve months (TTM) revenue ending August 31, 2025, hit $110.85 million, reflecting a 50.99% year-over-year increase. This is defintely a high-growth environment.

Here's the quick math on the quarterly performance, which shows the momentum leading into the holiday season (Q4):

What this estimate hides is the underlying channel strength. The Q3 revenue of $28.2 million was largely driven by the expanding retail presence, which is a more sustainable growth engine than relying solely on e-commerce spikes.

Analysis of Significant Revenue Changes

The most significant change is the dramatic shift in channel mix. In Q1 2025, e-commerce sales accounted for 74% of total sales, or $19.4 million. By Q3 2025, however, the wholesale revenue segment surged to approximately 41% of total revenue, a huge jump from about 23% a year prior, while e-commerce sales were essentially flat.

This pivot is a direct result of expanding their physical footprint to over 1,000 retail locations nationwide, including a key partnership with Sportsman's Warehouse. This retail expansion, plus the successful launch of the Compact Launcher, is what fueled the Q2 dealer sales surge of 106% to $7.5 million. Also, don't overlook international sales, which grew 86% in Q2 2025 to $3.6 million, including $800,000 in royalty revenue from Byrna LATAM.

Profitability Metrics

You want to know if Byrna Technologies Inc. (BYRN) is making money and how efficiently. The direct takeaway is that Byrna is profitable and rapidly scaling, but its gross margin is facing near-term pressure from a shift to higher-volume, lower-margin wholesale channels, which is a common trade-off for growth.

For the trailing twelve months (T12M) ending August 31, 2025, Byrna's net profit margin was a strong 14.4%. This is a massive leap from the 3.1% net margin reported a year prior, showing significant operating leverage as sales scale. However, the most recent quarter, Q3 2025, tells a more nuanced story about the growth strategy.

Here's the quick math for Q3 2025, which ended August 31, 2025, on net revenue of $28.2 million:

• Gross Profit Margin: 60% ($16.9 million)
• Operating Profit (EBIT) Margin: Approximately 9.93% ($2.8 million)
• Net Profit Margin: Approximately 7.80% ($2.2 million)

The operating profit (EBIT) is your true measure of core business performance before interest and taxes. The $2.8 million operating profit in Q3 2025 comes from subtracting $14.1 million in operating expenses from the $16.9 million gross profit.

Trends and Operational Efficiency

The profitability trend shows a classic growth-stage tension. Gross margin dipped from 62% in Q3 2024 to 60% in Q3 2025. This is not a sign of poor cost management, but a strategic choice: wholesale revenue surged to about 41% of total revenue as the retail footprint expanded to over 1,000 stores. Wholesale sales carry lower margins than direct-to-consumer (DTC) sales, but they drive massive volume and brand awareness. That's a trade-off I defintely accept in a growth phase.

Still, operational efficiency is improving. Operating expenses (opex) as a percentage of sales dropped from about 58% last year to approximately 50% in Q3 2025. This is operating leverage in action-your fixed costs are spread over a much larger revenue base. Net income more than doubled in Q3 2025 to $2.2 million from $1.0 million in the prior year quarter, demonstrating this leverage.

Industry Comparison and Outlook

Compared to the broader Aerospace & Defense sector, where it operates, Byrna's profitability metrics are competitive, especially considering its high-growth profile. The company's gross margin of approximately 61.88% (T12M) is strong, indicating efficient cost of goods sold (COGS) management and pricing power in the non-lethal personal security market.

For a valuation perspective, Byrna's Price-to-Earnings (P/E) ratio of 37.4x is actually below the industry average of 39.2x, suggesting it may be undervalued relative to its peers based on earnings. A key competitor, Axon Enterprise, Inc. (TASER), trades at a much higher non-GAAP P/E ratio of 88.57x. This comparison suggests the market hasn't fully priced in the long-term margin benefits of Byrna's recurring consumables revenue, which carry structurally higher margins than the launchers themselves. You can read more about the long-term strategy here: Mission Statement, Vision, & Core Values of Byrna Technologies Inc. (BYRN).

What this estimate hides is the expected margin growth from the Compact Launcher (CL) and ammunition. Management anticipates that CL margins will continue to grow as production volume increases and manufacturing processes become more efficient.

Debt vs. Equity Structure

You want to know how Byrna Technologies Inc. (BYRN) is funding its impressive growth, and the short answer is: not with debt. The company operates with an exceptionally conservative capital structure, which is a major green flag for risk-averse investors. They are defintely prioritizing financial stability over the accelerated, but often riskier, path of high leverage.

As of the end of the fiscal third quarter of 2025 (August 31, 2025), Byrna Technologies Inc. has repeatedly stated it carries no current or long-term debt on its balance sheet. This is a rare position for a growth company in the Industrials sector, specifically Aerospace & Defense, where capital expenditures can be significant. The minimal liabilities that do exist, such as capital lease obligations, are negligible when compared to the company's overall financial base.

Here's the quick math on just how low the leverage is:

• Total Stockholders' Equity (Q3 2025): Approximately $63.143 million
• Debt-to-Equity (D/E) Ratio (Q3 2025): 0.04

A Debt-to-Equity ratio of 0.04 means that for every dollar of equity, the company uses only four cents of debt to finance its assets. For context, the average D/E ratio for the broader Industrials sector can often hover between 0.50 and 1.50, meaning Byrna Technologies Inc. is operating with a fraction of the leverage seen in its peer group. This low ratio underscores a strategy focused on organic growth and equity financing, which limits interest expense risk, especially in a rising rate environment.

The company's financing strategy is clear: fund expansion through cash flow from operations and equity, not through debt issuances. This approach is supported by a healthy cash position, with cash and marketable securities totaling $9.0 million as of August 31, 2025. This strong liquidity position, combined with a net income of $2.2 million in Q3 2025, allows management to be opportunistic with inventory builds and marketing spend without needing to tap credit markets.

You won't find any recent debt issuances, credit ratings, or refinancing activity to analyze because the company simply isn't playing that game. They are choosing to grow slower, perhaps, but with a rock-solid balance sheet. This capital structure is a key component of the overall financial analysis you can find in our full breakdown: Breaking Down Byrna Technologies Inc. (BYRN) Financial Health: Key Insights for Investors. It tells you that the primary risk to your investment is operational or market-driven, not a sudden liquidity crunch.

To summarize Byrna Technologies Inc.'s capital structure for the latest reported quarter:

Liquidity and Solvency

You want to know if Byrna Technologies Inc. (BYRN) has the cash to cover its near-term obligations and fund its aggressive growth plan. The short answer is yes, the company's liquidity position is defintely strong, primarily due to its debt-free balance sheet, but the cash flow statement shows a significant working capital drain that you need to watch closely.

As of August 31, 2025, Byrna Technologies Inc.'s current financial picture shows exceptional coverage. The Current Ratio, which measures current assets against current liabilities, sits at an impressive 4.21 ($57,376 thousand / $13,619 thousand). This means the company has over four dollars in liquid assets for every dollar of liability due within a year. That's a massive safety cushion.

The Quick Ratio (or Acid-Test Ratio) is a tighter measure that excludes inventory, as it's the least liquid current asset. Even excluding the substantial inventory, the Quick Ratio is a healthy 1.31. This suggests that even if sales suddenly stalled, the combination of cash, marketable securities, and accounts receivable is more than enough to cover all current liabilities without having to sell a single new product.

Here's the quick math on the key liquidity positions as of Q3 2025:

• Current Ratio: 4.21 (Strong liquidity position)
• Quick Ratio: 1.31 (Strong ability to meet immediate obligations)
• Total Current Assets: $57,376 thousand
• Total Current Liabilities: $13,619 thousand

What this estimate hides is the working capital trend. The company is in a heavy growth phase, and that requires cash upfront. Between November 30, 2024, and August 31, 2025, Byrna Technologies Inc. saw a huge increase in inventory, jumping from $20.0 million to $34.1 million. This strategic inventory build, combined with a rise in accounts receivable from $2.6 million to $8.9 million (as sales volume increased), created a significant use of cash in operating activities. This is normal for a rapidly growing company, but it's a cash-intensive strategy.

The cash flow statements for the nine months ended August 31, 2025, reflect this growth strategy. The cash, cash equivalents, and marketable securities decreased from $25.7 million at the end of fiscal 2024 to $9.0 million. This is a net decrease of $16.7 million in cash. While they did generate $0.1 million from financing activities (mostly from stock option exercises), the bulk of the cash drain came from a net use of cash in both operating and investing activities, which totaled approximately $16.8 million.

The core strength, and the reason there are no immediate liquidity concerns, is the balance sheet structure. Byrna Technologies Inc. carries no current or long-term debt. This is a huge advantage. It means all that cash is available for strategic investment, not for servicing debt payments. The risk here isn't solvency-it's cash burn rate. If the inventory build doesn't translate into the expected holiday sales revenue, the cash balance will continue to drop, forcing a capital raise. For a deeper dive into their strategy, check out the full post at Breaking Down Byrna Technologies Inc. (BYRN) Financial Health: Key Insights for Investors.

Valuation Analysis

You're looking at Byrna Technologies Inc. (BYRN) and asking the core question every savvy investor asks: Is this stock a bargain or a bubble? The short answer is that Wall Street analysts see a significant upside, but the current valuation ratios suggest the market is already pricing in a lot of that expected growth. It's a classic growth stock dilemma.

As of November 2025, Byrna Technologies Inc. (BYRN) has been trading around the $17.29 mark. Over the past 12 months, the stock has been a wild ride, with a 52-week low of $13.68 and a high of $34.78. Honestly, a 52-week change of -5.68% tells you there's been some serious volatility and a recent pullback from the highs, which gives us a chance to dig deeper.

Here's the quick math on the key valuation metrics for the 2025 fiscal year (FY2025):

• Price-to-Earnings (P/E) Ratio: The current trailing P/E is around 27.99x. For the full FY2025, the P/E ratio is forecasted to be higher at approximately 43.2x. This is a high multiple, indicating investors expect earnings per share (EPS) to grow aggressively, which is a hallmark of a growth company.
• Price-to-Book (P/B) Ratio: The current P/B is about 6.63x. A number this high suggests the market values the company at over six times its net asset value (book value). This is not a value stock; you are paying a premium for the non-lethal technology and brand equity.
• Enterprise Value-to-EBITDA (EV/EBITDA) Ratio: The current EV/EBITDA sits at roughly 29.52x, though the FY2025 forecast is a more palatable 21.8x. This ratio is a better measure for companies with varying debt or capital structures, and even the forecasted number is on the higher side, again signaling high growth expectations.

What this estimate hides is the company's aggressive expansion, which you can read more about in their Mission Statement, Vision, & Core Values of Byrna Technologies Inc. (BYRN).

The company does not pay a dividend, so the dividend yield and payout ratios are 0.00% (or N/A). They are clearly prioritizing reinvesting all profits back into the business for growth, which is typical for a company with a high P/E and a focus on expanding market share and product lines.

The Street's consensus is overwhelmingly positive. A group of Wall Street analysts have issued a consensus rating of Strong Buy or Buy for Byrna Technologies Inc. (BYRN). The average 12-month price target is approximately $40.88, which implies a potential upside of over 141% from the recent trading price. That's a huge vote of confidence, but you defintely need to watch for execution risk against those high expectations.

To summarize the analyst sentiment and key valuation metrics:

The stock is not cheap on traditional metrics, but the analyst community believes the company's growth trajectory justifies the premium. Your next step is to stress-test their revenue and EBITDA growth forecasts against the company's actual performance in the next few quarters.

Risk Factors

You're looking at Byrna Technologies Inc. (BYRN)'s impressive growth-net revenue up 35% to $28.2 million in Q3 2025-and wondering what could trip it up. That's the right mindset. While the company has no current or long-term debt, which is defintely a strength, several near-term risks could slow the momentum.

The biggest operational risk right now is the shift in their sales channel mix. Wholesale revenue surged to about 41% of total sales in Q3 2025, up from approximately 23% a year ago. That's great for volume, but wholesale is lower-margin. Here's the quick math: this shift, plus ramp-up costs for the new Compact Launcher, pushed the gross margin down to 60% in Q3 2025 from 62% in Q3 2024. If dealer sales stay above 40% longer than management expects, margin growth will stall, even with rising sales of higher-margin consumables.

Another strategic risk is tied to their core growth engine: the AI-driven marketing campaign. This initiative is a big deal; it cut the cost-per-visitor by roughly 43% and boosted daily web sessions to around 58,000 in September 2025. But if this cost efficiency doesn't continue, their operating expense (opex) assumptions for future quarters will be wrong. You simply can't rely on one marketing channel forever.

• Sales Mix Pressure: Wholesale growth to 41% of revenue in Q3 2025 cuts gross margin.
• AI Marketing Dependency: Opex efficiency relies on the new AI campaign's continued success.
• Inventory Build-up: Inventory hit $34.1 million (up from $20.0 million at Nov 30, 2024) for the holiday season; a demand slowdown would tie up working capital.

On the external front, regulatory changes are a constant threat for any non-lethal self-defense product. New laws affecting how these products are sold or marketed could immediately impact their expanding retail footprint of over 1,000 stores nationwide. Plus, the risk of product defects or litigation is always present, which could undermine customer confidence and lead to costly regulatory actions.

The company is mitigating these risks with clear actions. They anticipate a higher Direct-to-Consumer (DTC) percentage in Q4 2025, which should boost margins, and they plan to hold steady on major retail additions to manage the wholesale mix. They also launched ByrnaCare™, a protection plan, which is a smart first step toward building a recurring, higher-margin service revenue stream to complement product sales. This is how you diversify risk. For a deeper dive into the financials, check out Breaking Down Byrna Technologies Inc. (BYRN) Financial Health: Key Insights for Investors.

Here is a quick look at the operational risk/mitigation map:

Growth Opportunities

If you're looking at Byrna Technologies Inc. (BYRN), the core takeaway is simple: the company is executing a clear, multi-pronged strategy that management expects will deliver significant top-line growth. The official guidance for full-year fiscal 2025 revenue growth is robust, projected to land between 35% and 40%. That's a strong double-digit growth rate built on more than just product hype; it's a defintely a structural shift in their go-to-market strategy.

Here's the quick math on their recent performance: Fiscal Q3 2025 revenue hit $28.2 million, marking a 35% year-over-year increase. The momentum is real, and it's being driven by three clear, actionable levers: product innovation, strategic retail expansion, and a new digital marketing playbook.

Product and Recurring Revenue Levers

The biggest near-term product driver is the Compact Launcher (CL), which launched in the second quarter of 2025. This model is smaller, making it easier for daily carry, but it still delivers the same energy density as the law enforcement model. Crucially, the Compact Launcher is their first All-American product, with about 90% of components sourced domestically. This move mitigates supply chain risk and is expected to boost gross margins by an additional 7% to 8% compared to previous launchers.

Beyond the hardware, Byrna Technologies Inc. is building a recurring revenue stream-the true sign of a maturing business model. They introduced ByrnaCare™, a comprehensive protection plan for their launchers, which is their first step into service-based offerings. Plus, the Compact Launcher uses a new .61 caliber projectile that will be exclusively manufactured in-house, creating a closed ecosystem for higher-margin consumables. This is how you build a long-term economic moat.

• Launch Compact Launcher (CL): New product, higher margins.
• Introduce ByrnaCare™: First recurring revenue service.
• Expand international sales: Mexico and Canada projected at $1.8 million and $4 million, respectively, in 2025.

Distribution and Digital Advantage

The company's competitive edge isn't just in the product; it's in how they sell it. They've successfully blended direct-to-consumer (DTC) with a rapidly expanding physical retail presence. As of Q3 2025, Byrna Technologies Inc. products are in over 1,000 brick-and-mortar stores nationwide. This includes an expanding partnership with Sportsman's Warehouse, which is key to their 'Shooting is Believing' retail experience that drives high conversion rates.

On the digital front, an aggressive new AI-driven advertising campaign has been a game-changer. This initiative has dramatically improved efficiency, cutting customer acquisition costs by approximately 43%. The result? Average daily web sessions on Byrna.com surged from a baseline of about 33,000 to an average of 58,000 in September 2025. That kind of digital momentum is hard to ignore, and it provides a strong tailwind for their e-commerce channel.

The company also benefits from a strong balance sheet, reporting a current ratio of 3.63 and, importantly, having no current or long-term debt. This financial health gives them the flexibility to invest in these growth initiatives without undue pressure. To get a deeper dive into the valuation and risk profile that underpins these growth prospects, I recommend reading the full analysis: Breaking Down Byrna Technologies Inc. (BYRN) Financial Health: Key Insights for Investors. Your next step should be to model the impact of that 40% revenue growth on their cash flow for the next 12 months, specifically factoring in the margin uplift from the Compact Launcher and the new consumables revenue.