Overview

Byrna Technologies Inc. (NASDAQ:BYRN) is a technology company specializing in the development, manufacture, and sale of innovative less-lethal personal security solutions. The company has demonstrated remarkable financial performance, positioning itself as a leader in the less-lethal industry.

Business Overview

Byrna is a technology company that specializes in the development, manufacture, and sale of innovative less-lethal personal security solutions. The company's flagship product, the Byrna SD, is a state-of-the-art handheld CO2-powered launcher designed to provide a less-lethal alternative to firearms for consumers, private security, and law enforcement markets.

Byrna's core mission is to empower individuals to safely and fully engage in life and adventure by providing easy-to-use self-defense tools that enhance the safety of its customers and their loved ones. The company's strategy is to establish the Byrna brand as a consumer lifestyle brand associated with the confidence people can achieve by knowing they can protect themselves, their loved ones, and those around them.

Byrna's business strategy is twofold: (1) to fulfill the growing demand for less-lethal products in the law enforcement, correctional services, and private security markets, and (2) to provide civilians, including those whose work or daily activities may put them at risk of being a victim, with easy access to an effective, non-lethal way to protect themselves and their loved ones from threats to their person or property.

Financials

Financial Highlights

Byrna's recent financial results showcase its strong momentum. In the fiscal year 2023, the company reported annual revenue of $42.6 million, a testament to its growing market presence. Despite the challenging economic environment, Byrna reported an annual net loss of $8.2 million. The company's annual operating cash flow stood at $3.9 million, while its annual free cash flow reached $3.0 million, underscoring its financial discipline and cash-generating capabilities.

Quarterly Performance

Byrna's fiscal second quarter of 2024 was particularly impressive, with the company reporting record-breaking results. Net revenue for the quarter reached $20.3 million, a remarkable 76% increase from the $11.5 million reported in the same period of the previous year. This surge in revenue was primarily driven by the company's transformational shift in its advertising strategy, which included the successful implementation of a celebrity endorsement program.

Gross profit for the quarter was $12.6 million, or 62% of net revenue, up from $6.2 million, or 54% of net revenue, in the prior-year period. The improvement in gross profit margin was attributed to the increased proportion of high-margin direct-to-consumer (DTC) sales, as well as the company's efforts to optimize component costs and benefit from economies of scale.

Net income for the quarter was $2.1 million, a significant improvement from the net loss of approximately $1.1 million reported in the same quarter of the previous year. Adjusted EBITDA, a non-GAAP metric, totaled $2.9 million, compared to a negative $0.8 million in the prior-year period.

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