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Byrna Technologies Inc. (BYRN)·Q1 2025 Earnings Summary

Executive Summary

  • Q1 2025 revenue was $26.19M, up 57% year-over-year, with gross margin at 61% and diluted EPS at $0.07; adjusted EBITDA was $2.77M .
  • Results tracked seasonality (down ~6% vs record Q4), but still the second-highest quarter ever; management highlighted continued DTC momentum, accelerating Amazon mix, and retail expansion (Sportsman’s Warehouse store-within-a-store) as drivers .
  • Versus S&P Global consensus for Q1 2025, revenue modestly beat ($26.19M vs $26.15M*) and S&P “Primary EPS” actual was 0.106 (vs 0.07* estimate); note Byrna’s reported GAAP diluted EPS was $0.07, reflecting definitional differences between S&P “Primary EPS” and company-reported EPS* .
  • Catalysts: CL compact launcher May 1 public release with dealer shipments April 21–24, widening retail footprint, U.S. ammo production ramp (8M rounds/year capacity), and Made-in-America supply-chain transition reducing tariff risk .

What Went Well and What Went Wrong

What Went Well

  • 57% year-over-year revenue growth to $26.2M; gross margin expanded to 61% on design-for-manufacturability and scale .
  • DTC strength with rising Amazon contribution and strong ROAS; management: “Amazon sales represented 26.9% of total U.S. DTC in Q1 2025… last month 32.6%” and “ROAS on Amazon advertising was 18.5x” .
  • Retail expansion: launch of Sportsman’s Warehouse 13 store-within-a-store pilot plus 41 locations with kiosks and shooting lanes; CEO: “shooting is believing… conversion rates go up dramatically” .

What Went Wrong

  • Operating expenses rose to $14.2M (from $9.8M), driven by variable selling expenses, payroll/benefits, and discretionary marketing; CFO flagged ~$300K incremental benefits/401(k) match and new retail store ramp costs .
  • Tariff-related BOM inflation (+~16% since mid-2023) could reduce gross margin by ~5 points if sustained; mitigated near-term via inventory buffers and mix (CL higher margin) .
  • Working capital build: cash and equivalents plus marketable securities fell to $19.3M from $25.7M at FY-end due to inventory ahead of CL (inventory $23.2M vs $20.0M) .

Financial Results

MetricQ3 2024Q4 2024Q1 2025Q1 2025 Consensus
Revenue ($USD Millions)$20.854 $27.979 $26.190 $26.150*
Diluted EPS ($USD)$0.04 $0.41 $0.07 $0.07*
Gross Margin %62.4% 62.8% 61.0% —
Operating Income ($USD Millions)$0.828 $4.094 $1.696 —
Adjusted EBITDA ($USD Millions)$1.944 $5.157 $2.771 $1.970*
  • Values marked with * retrieved from S&P Global.
  • S&P Global “Primary EPS” actual for Q1 2025 was 0.106 vs 0.07* estimate; Byrna’s reported diluted EPS was $0.07, reflecting definitional differences* .

Segment/channel breakdown (Q1 2025 preliminary, company disclosure):

Sales Channel ($USD Millions)Q1 2024Q1 2025% Change
Web$12.7 $19.4 53%
Byrna Dedicated Dealers$2.5 $4.4 76%
Law Enforcement / Schools / Pvt Security$0.0 $0.0 0%
Retail Stores$0.2 $0.3 53%
International$1.3 $2.0 56%
Total Sales$16.7 $26.2 57%

KPIs and balance sheet snapshots:

KPIQ4 2024Q1 2025
Cash + Marketable Securities ($USD Millions)$25.7 $19.3
Inventory ($USD Millions)$20.0 $23.2
DebtNone None
Monthly launcher capacity24,000 units 24,000 units
Ammo annual capacity—8M rounds

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Effective Tax RateFY 2025N/A~23% New
CL Launch TimingQ2 2025N/ADealer shipments Apr 21–24; DTC orders Apr 24; public release May 1 New
Production Capacity (Launchers)Ongoing18k/month prior periods 24k/month; flexible mix across CL/SD/LE Raised
Ammo Production (U.S.)2025Sourced externally U.S. facility operational, 8M rounds/year capacity New
Supply Chain “Made in America”2025 YE targetIn-transition 92% U.S.-made components for SD; aim >90% across products by YE25 Raised %

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 2024 and Q4 2024)Current Period (Q1 2025)Trend
Amazon/DTC mixDTC 74% of sales; ROAS ≥5x; expanding influencers Amazon share of U.S. DTC rose to 26.9% in Q1; 32.6% last month; Amazon ROAS 18.5x; introducing Buy with Prime Strengthening
Retail expansionLOI with Sportsman’s (11 stores); company-owned stores ramp 13 store-within-a-store + 41 kiosks w/ shooting lanes; conversion rates 50–68% in owned stores Accelerating
CL Compact LauncherTarget “summer 2025”; production prep Serial production underway; >10.9k units in stock; MSRP $549.99; higher margin vs SD/LE; public release May 1 Imminent launch
Supply chain/tariffsOnshoring plan; minimal China dependence; tariff resilience 92% U.S. components for SD; tariff-driven BOM +16% mitigated by inventory and CL margin; ammo onshored De-risking
Manufacturing capacityShift expansion and lines added 24k/month launcher capacity; 1k CL/day, six days/week; flexible line mix Upgraded
InternationalLATAM royalty model; Argentina/Uruguay deployments International Q1 sales $2.0M (+56% YoY) Solid momentum

Management Commentary

  • CEO: “We delivered a strong start to the fiscal year with 57% revenue growth and our second-highest quarter ever, only 6% below our record $28 million Q4…” .
  • CFO: “Net revenue…$26.2 million…Gross profit…61%…Operating expenses…$14.2 million…Adjusted EBITDA…$2.8 million…Cash, cash equivalents and marketable securities…$19.3 million…The company has no current or long-term debt” .
  • CEO on Amazon shift: “In Q1 2024, Amazon sales represented 19.3% of Byrna’s total U.S. DTC… by Q1 2025…26.9%… last month…32.6%… ROAS… 18.5x” .
  • CEO on Sportsman’s Warehouse: “Each… installation will feature a dedicated area where customers can try shooting the launchers… shooting is believing… conversion rates go up dramatically” .
  • CEO on tariffs and margins: “Moving our supply chain to U.S. suppliers added ~14% to the cost… tariffs… add another ~2%… ~16% total… would translate into a loss of approximately 5 margin points… we do not expect… material margin hit for at least 1 year” .
  • CEO on CL: “Serial production… rate of 1,000 launchers a day… MSRP $549.99… margin… 7 to 8 percentage points higher than… current launchers” .

Q&A Highlights

  • Advertising and ROAS cadence: Q1 ROAS mid-3s (seasonal), plan to rely on 700k opt-in email base for CL launch and reduce ad spend near term, potentially ramp back in August .
  • CL rollout plan: 30k units target inventory; 10k allocated to dealers ship Apr 21–24; preorders from Apr 17; DTC orders from Apr 24; public release May 1 .
  • Revenue trajectory: Management expects Q1 to be the low point of the year and sequential growth thereafter contingent on CL success .
  • Sportsman’s pilot: 13 store-within-a-store by May 1; 41 more with kiosks and lanes; learnings emphasize foot-traffic and “Byrna Genius” staffing to drive conversion .
  • Pricing/mix: CL base price $549.99 vs LE $479.99 and SD $379; ammo margins similar, CL’s .61 caliber ammo exclusive to Byrna near-term .

Estimates Context

  • Q1 2025 vs S&P Global: Revenue $26.19M actual vs $26.15M estimate (beat); “Primary EPS” 0.106 actual vs 0.07 estimate (beat); EBITDA $2.136M actual vs $1.970M estimate (beat)*.
  • Note: Byrna reported diluted GAAP EPS of $0.07; S&P Global’s “Primary EPS” methodology produced a higher actual (0.106), highlighting definitional differences*.
  • Forward consensus suggests continued growth through FY 2025/early FY 2026, with rising revenue and EBITDA expectations into Q4 2025/Q2 2026*.
MetricQ1 2025 EstimateQ1 2025 Actual
Revenue ($USD Millions)$26.150*$26.190
Primary EPS ($USD)0.07*0.106*
EBITDA ($USD Millions)$1.970*$2.136*
  • Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Strong Q1 execution despite seasonality; DTC and Amazon mix, Sportsman’s retail presence, and CL launch provide multiple growth vectors .
  • Margin resilience: onshoring and design-for-manufacturability underpinned 61% GM; CL’s higher margin should offset tariff-related BOM pressure over time .
  • Working capital is front-loaded ahead of CL; expect cash conversion to improve in 2H as CL shipments ramp and inventory turns .
  • Near-term trading catalyst: May 1 CL release with built inventory and staged dealer/DTC timing; watch sell-through and early reorder velocity .
  • Medium-term thesis: Scaling retail experiences (conversion uplift), expanding ammo ecosystem (exclusive .61 caliber), and Made-in-America supply chain reduce operational/tariff risks .
  • Estimates likely need modest upward revision on EPS/EBITDA given the Q1 beat and mix tailwinds from CL; be mindful of opex ramp from store openings .
  • Risk monitor: tariff persistence beyond inventory buffer, ad platform access, store ramp productivity, and consumer macro sensitivity .

Citations:

  • Q1 2025 8-K press release and financials:
  • Q1 2025 press release:
  • Q1 2025 earnings call transcript:
  • Preliminary Q1 2025 press release:
  • Q4 2024 press release/transcript:
  • Q3 2024 press release/transcript:
  • U.S. ammo production (Fort Wayne) press release:

Note: Values marked with * retrieved from S&P Global.