Byrna Technologies Inc. (BYRN) - Q1 2026 Filing Summary
Business Context and Reporting Period
This Form 10-Q covers the quarterly period ended February 28, 2026. Byrna Technologies Inc. is a less-lethal defense technology company manufacturing personal security devices, projectiles, and accessories for consumer, law enforcement, and institutional markets. The company operates through two primary sales channels: Direct-to-Consumer (DTC) and Wholesale. As of April 9, 2026, the company had 22,685,654 outstanding shares of common stock.
Key Financial Metrics
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Net Revenue | $29.0 million | $26.2 million |
| Gross Profit | $17.4 million | $15.9 million |
| Gross Margin | 59.9% | 60.8% |
| Operating Income | $0.9 million | $1.7 million |
| Net Income | $0.8 million | $1.7 million |
| Diluted EPS | $0.03 | $0.07 |
| Cash & Equivalents | $7.5 million | $13.7 million (Nov 2025) |
| Operating Cash Flow | ($4.4 million) used | ($3.8 million) used |
| Adjusted EBITDA | $2.2 million | $3.0 million |
Material Changes vs. Prior Period
- Revenue Growth: Net revenue increased 10.7% year-over-year, driven primarily by a 70% increase in Wholesale revenue ($10.7M vs $6.3M). This was partially offset by an 8.9% decline in DTC revenue ($18.1M vs $19.9M).
- Profitability Decline: Net income decreased 52% to $0.8 million. Operating expenses rose 15.8% to $16.5 million due to increased marketing spend ($1.3M increase), higher professional fees, and a $0.4M increase in credit loss allowances.
- Margin Compression: Gross margin decreased 90 basis points to 59.9%, attributed to a sales mix shift toward lower-margin wholesale channels and production variances.
- Liquidity: Cash and cash equivalents decreased by $6.2 million from the prior quarter end, primarily due to operating cash outflows and $1.0 million in stock repurchases.
Outlook, Risks, and Unusual Items
- Credit Facility: On February 3, 2026, the company secured a $20.0 million credit facility (comprising a $5.0M revolving line and $15.0M delayed draw term loan) with Texas Capital Bank. No borrowings were outstanding as of February 28, 2026.
- Stock Buyback: The company repurchased 58,905 shares for approximately $1.0 million during the quarter under its $10 million buyback program.
- Related Party Transactions: A loan to Byrna LATAM was amended subsequent to the period end, restating the principal balance to approximately $0.6 million with a new repayment schedule.
- Risks: The company faces foreign currency risk (South African Rand and Canadian Dollar) and credit risk, with two customers accounting for approximately 50% of total accounts receivable. Management noted no material legal proceedings but acknowledged inherent uncertainties in litigation.
- Guidance: The filing does not provide specific forward-looking financial guidance for the full fiscal year 2026.
Investor Verification Checklist
- Verify the sustainability of the Wholesale channel growth, which drove revenue but compressed overall margins.
- Monitor the $4.4 million operating cash burn rate against the $7.5 million cash balance to assess runway without drawing on the new credit facility.
- Review the concentration risk regarding the two customers representing 50% of accounts receivable.
- Assess the impact of the $0.4 million increase in credit loss allowances on future profitability.
- Confirm the status of the Byrna LATAM loan repayment following the post-period amendment.