Byrna Technologies (BYRN)·Q4 2025 Earnings Summary

Byrna Stock Plunges 14% Despite Strong Q4 Beat as CEO Announces Succession Plan

February 5, 2026 · by Fintool AI Agent

Byrna Technologies (NASDAQ: BYRN) delivered a strong Q4 2025, beating both revenue and EPS estimates, yet shares plummeted 14% as CEO Brian Ganz disclosed that the board is actively searching for his successor . The less-lethal weapons maker posted $35.2 million in quarterly revenue (+26% YoY) and adjusted EBITDA of $6 million, capping a transformational year that saw full-year revenue surge 38% to $118.1 million .

Did Byrna Beat Earnings?

Yes — decisively on EPS, modestly on revenue.

Values retrieved from S&P Global

Q4 revenue of $35.2 million represented 26% growth versus Q4 2024's $28 million . This was particularly impressive given the tough comparison—Q4 2024 benefited from elevated demand around the U.S. election .

Full Year 2025 Results:

*Q4 2024 included a $5.6M one-time tax benefit; excluding this, net income improved $2.5M

How Did the Stock React?

BYRN shares opened at $13.89 on earnings day but collapsed to close at $11.92, down 14.2%. The stock is now trading near its 52-week low of $11.29, having fallen from a high of $34.78.

The selloff appears driven by:

1. CEO Succession Announcement: Brian Ganz, turning 68, disclosed that he and the board are "conducting a process to identify my successor"
2. Profit-Taking: Stock had run up significantly in prior periods
3. Q1 Seasonality Warning: Management noted Q1 is "clearly a very soft quarter as people are kind of spent from Christmas"

Ganz emphasized he remains "100% committed" and will ensure a "smooth and seamless" transition .

What Changed From Last Quarter?

Retail Expansion Acceleration: The biggest story is Byrna's brick-and-mortar transformation. Channel sales doubled from $15.2M in FY 2024 to $31M in FY 2025 .

Key retail milestones:

• Chain store locations: 200 → 900 during FY 2025
• Target for FY 2026: 2,000+ total retail locations
• Verbal commitments from SHOT Show: 500+ additional locations, primarily in Texas
• Sportsman's Warehouse rolling out to nearly all locations in 2026

New Products Launched:

• Byrna CL XL: Larger compact launcher with 7+1 round magazine, $579.99 price point (+$30 vs CL), same margins
• Modular Launcher: First prototype being built this week, expected launch late 2026 with 40% lower manufacturing cost
• Byrna Cam: Camera accessory launching Q2/Q3 2026 for under $200

What Did Management Guide?

Byrna did not provide specific revenue or EPS guidance but offered several directional comments:

Profitability Trajectory:

• Expects to remain "well above" the Rule of 40 in FY 2026
• Gross margins expected to reach 63-65% by end of 2026 (vs 60% in Q4)
• Implemented 4-5% price increase effective February 1, 2026

Growth Drivers:

• Q1 2026 will be "well above last year's Q1" but "well below Q4" due to seasonality
• Strong post-holiday dealer restocking orders
• Super Bowl commercial in Pittsburgh market this Sunday—first major TV placement

Margin Improvement Levers:

1. Higher-margin CL launcher becoming larger share of sales
2. Manufacturing efficiencies and economies of scale
3. Price increases now in effect
4. South Africa factory closure saving $1.5M annually

Values retrieved from S&P Global

Key Management Quotes

On CEO Succession:

"Let me assure everyone that I plan to remain involved, for as long as the company needs me. As a significant shareholder, I have and will continue to have for some time, a substantial personal and financial stake in the future success of Byrna." — Brian Ganz, CEO

On the Modular Launcher:

"The BOM that we have today is 40% less than the BOM for our current launchers... it's a much simpler design to build, so we expect to see both a savings in labor and an improvement in first pass yield." — Brian Ganz, CEO

On Retail Strategy:

"Setting up these stores is expensive and time-consuming... Through our strategic partnerships with big box retailers, such as Sportsman's, we have been able to scale rapidly with minimal capital investment." — Brian Ganz, CEO

Q&A Highlights

On CL XL Pricing & Margins (Jeremy Hamblin, Craig-Hallum): The CL XL will be priced at $579.99, just $30 more than the standard CL. With only a 5/8-inch barrel extension and slightly larger magazine, costs are nearly identical, so "margins will be essentially identical to the current CL" .

On Connected Devices (Matt Koranda, Roth Capital): Management was cagey on timing but noted connected devices could open new advertising channels since accessories can be advertised on platforms where weapons cannot. They're exploring subscription-based products and even considering "giving away the product for free if there is subscription-based revenue attached" .

On the Movie Initiative (John Hickman, Ladenburg Thalmann): Byrna is co-financing a small independent film featuring their launchers. The goal is advertising capability—they'll have behind-the-scenes footage and actor interviews they can use in promotions that would otherwise be restricted .

Forward Catalysts

Risks to Watch

1. CEO Transition Risk: Ganz has been instrumental in Byrna's turnaround; execution could slip during transition
2. Valuation Compression: Stock down ~65% from 52-week high; sentiment fragile
3. Seasonality: Q1 historically weak; management explicitly warned of sequential decline
4. Margin Pressure: Gross margin down 300 bps YoY in Q4 due to channel mix shift toward lower-margin dealers
5. Cash Position: Cash declined from $25.7M to $15.5M YoY due to inventory build ($32.7M vs $20M)

Historical Performance

Values retrieved from S&P Global

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This analysis was generated by Fintool AI Agent based on Byrna Technologies' Q4 2025 earnings call transcript and SEC filings. For the full transcript, visit BYRN Documents.