Industry Overview - The technology services industry is mature with strong demand for services, and revenues, income, and cash flows are expected to gradually return to pre-pandemic levels, supporting stable dividends for most players [1] - The industry thrived in 2024 and continued its momentum into the first quarter of 2025 [1] - The global shift towards digitization is creating opportunities in markets such as 5G, blockchain, and artificial intelligence (AI), with companies rapidly adopting generative AI, machine learning (ML), and data science to gain competitive advantages [4] Investment Outlook - The Zacks-defined Technology Services industry ranks within the top 26% of Zacks Ranked Industries, indicating an expectation to outperform the market over the next three to six months [2] - Five mid and small-sized technology services stocks with strong short-term upside potential are recommended: Byrna Technologies Inc. (BYRN), Climb Global Solutions Inc. (CLMB), Adeia Inc. (ADEA), Priority Technology Holdings Inc. (PRTH), and Ivanhoe Electric Inc. (IE) [2][3] Company Highlights Byrna Technologies Inc. (BYRN) - Engaged in developing and selling less-lethal personal security solutions across multiple regions [6] - Average short-term price target indicates a potential increase of 48.6% from the last closing price of $25.53, with a target range of $33-$38 [8] - Expected revenue and earnings growth rates for the current year are 30.2% and 12.9%, respectively [9] Climb Global Solutions Inc. (CLMB) - Operates as a value-added IT distribution and solutions company [10] - Average short-term price target suggests a potential increase of 26.2% from the last closing price of $110.28, with a target range of $136 [13] - Expected revenue and earnings growth rates for the current year are 5% and 2.7%, respectively [14] Adeia Inc. (ADEA) - Operates as a media and semiconductor intellectual property licensing company [16] - Average short-term price target indicates a potential increase of 25.2% from the last closing price of $13.75, with a target range of $17-$18 [18] - Expected revenue and earnings growth rates for the current year are 9.2% and 7.1%, respectively [18] Priority Technology Holdings Inc. (PRTH) - Functions as a payment technology company with multiple segments [20] - Average short-term price target suggests a potential increase of 71.6% from the last closing price of $7.46, with a target range of $10-$16 [24] - Expected revenue and earnings growth rates for the current year are 11.4% and over 100%, respectively [25] Ivanhoe Electric Inc. (IE) - Focuses on minerals exploration and development, particularly for electrification [27] - Average short-term price target indicates a potential increase of 105.9% from the last closing price of $6.85, with a target range of $10-$20 [28] - Expected revenue and earnings growth rates for the current year are 2.6% and 51.4%, respectively [28]

Group 1 - MAIA Biotechnology, Inc. has a Zacks Rank 1 with a 44.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - MAIA's shares gained 0.5% over the last three months, while the S&P 500 declined by 5.6% [1] - MAIA possesses a Momentum Score of A [1] Group 2 - Byrna Technologies Inc. has a Zacks Rank 1 with a nearly 25% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Byrna's shares gained 33.8% over the last six months, compared to the S&P 500's decline of 4.7% [2] - Byrna possesses a Momentum Score of B [2] Group 3 - OncoCyte Corporation has a Zacks Rank 1 with a 39.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - OncoCyte's shares gained 45.3% over the last three months, while the S&P 500 declined by 5.6% [3] - OncoCyte possesses a Momentum Score of B [3]

Core Viewpoint - Byrna Technologies Inc. (BYRN) has seen a 30.6% increase in share price over the past four weeks, closing at $22.39, with a potential upside of 61.6% based on Wall Street analysts' mean price target of $36.17 [1] Price Targets and Analyst Consensus - The mean estimate consists of three short-term price targets with a standard deviation of $2.75, indicating variability among analysts; the lowest estimate of $33 suggests a 47.4% increase, while the highest target of $38 implies a 69.7% surge [2] - A low standard deviation among price targets indicates strong agreement among analysts regarding the stock's price movement direction, serving as a starting point for further research [9] Earnings Estimates and Market Sentiment - Analysts have shown increasing optimism about BYRN's earnings prospects, as evidenced by a strong consensus in revising EPS estimates higher, which correlates with potential stock price increases [11] - Over the last 30 days, two earnings estimates for BYRN have been revised upward, leading to an 11.3% increase in the Zacks Consensus Estimate [12] Zacks Rank and Investment Potential - BYRN holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside in the near term [13]

Core Viewpoint - Byrna Technologies Inc. has officially launched the Byrna Compact Launcher, a new less-lethal personal security solution, with orders starting April 24 and shipments beginning May 1 [1][7]. Product Features - The Byrna Compact Launcher weighs 0.76 pounds and measures 6.81 inches in length, making it the most concealable less-lethal launcher available [2]. - It delivers the same energy density on impact as the Byrna LE model, despite being 38% smaller than the Byrna SD [3]. - The new .61 caliber projectile is exclusive to Byrna and will be produced at the company's new facility in Fort Wayne, Indiana, emphasizing onshore manufacturing [4]. Technical Specifications - Size: 6.81" L x 5.1" H x 1.18" W [5] - Projectile Speed: 400 feet per second [5] - Effective Range: 60 feet [5] - Caliber: Fires proprietary .61 caliber projectiles with energy density equivalent to .68 caliber rounds [5] - Shot Capacity: 15 rounds per 8g CO₂ cartridge [5] - Materials: Made from high-grade aluminum, steel, and brass [5] - Compatibility: Red dot ready and customizable with accessories [5]. Pricing and Availability - The base MSRP for the Byrna Compact Launcher is set at $549.99, with a waitlist available starting immediately [7]. - Customers can experience the product in select Byrna stores and Premier Dealers nationwide [7].

ANDOVER, Mass., April 22, 2025 (GLOBE NEWSWIRE) -- Byrna Technologies Inc. ("Byrna" or the "Company") (Nasdaq: BYRN), a personal defense technology company specializing in the development, manufacture, and sale of innovative less-lethal personal security solutions, today announced the official launch of its highly anticipated Byrna Compact Launcher ("CL"). The Company will begin accepting orders for this revolutionary new launcher on April 24, with product shipments beginning May 1. Weighing just 0.76 pound ...

Core Viewpoint - Both Arm Holdings plc (ARM) and Byrna Technologies Inc. (BYRN) are positioned as innovation-driven companies appealing to growth-oriented investors interested in disruptive technologies [1][2]. Group 1: Arm Holdings (ARM) - Arm Holdings is a leader in semiconductor design, particularly in mobile devices, with a strong focus on low-power architecture that has been essential for smartphones and tablets [3][4]. - The company is well-positioned to benefit from the growth of AI and IoT, as ARM-powered chips are increasingly integrated into smart devices and data centers, addressing the computational needs of AI workloads [4]. - Arm's unique licensing and royalty-based business model allows it to generate steady revenue without significant capital expenditure, maintaining relevance in key sectors like automotive and data centers [5]. - Following its IPO, Arm Holdings strengthened its balance sheet with $2.7 billion in cash and no debt, enhancing its ability to invest in R&D and strategic acquisitions [6]. - The Zacks Consensus Estimate for ARM's fiscal 2025 indicates a year-over-year sales growth of 24% and EPS growth of 28% [13]. Group 2: Byrna Technologies (BYRN) - Byrna has established itself as a leader in the non-lethal personal defense market, achieving significant brand visibility through innovative marketing strategies, including celebrity endorsements [7]. - In fiscal 2024, Byrna reported a 79% year-over-year sales increase in the fourth quarter, with net income turning from a loss of $0.8 million to a profit of $9.7 million [8]. - The company is ramping up production for its new Compact Launcher, with a 33% increase in production to 24,000 units per month to meet rising demand [9]. - Byrna is expanding its omnichannel strategy and enhancing its presence in Latin America through partnerships with law enforcement, including a training program in Mexico [10][11]. - The Zacks Consensus Estimate for BYRN's fiscal 2025 indicates a year-over-year sales growth of 30% and EPS growth of 13% [16]. Group 3: Valuation and Investment Outlook - Arm Holdings is trading at a forward earnings multiple of 49.31X, which is below its 12-month median of 127.41X, while Byrna's forward earnings multiple stands at 54.26X, also below its median of 96.9X [18]. - Byrna is rated as a Buy due to rapid revenue growth, a turnaround to profitability, and aggressive expansion, while Arm is rated a Hold due to flat analyst revisions and a more mature growth curve [19][20].

Core Viewpoint - Byrna Technologies Inc. (BYRN) has seen a 5.7% increase in stock price over the past four weeks, closing at $20.43, with a mean price target of $36.17 indicating a potential upside of 77% [1] Price Targets and Analyst Estimates - The mean estimate consists of three short-term price targets with a standard deviation of $2.75, where the lowest estimate of $33 suggests a 61.5% increase, and the highest estimate of $38 indicates an 86% surge [2] - A low standard deviation signifies strong agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [8] Earnings Estimates and Analyst Optimism - Analysts show strong agreement in revising earnings estimates higher, which correlates with potential stock price increases [10] - Over the last 30 days, two earnings estimates for BYRN have increased, leading to a Zacks Consensus Estimate rise of 11.3% [11] Zacks Rank and Investment Potential - BYRN holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [12]

Group 1 - Byrna Technologies Inc. reported quarterly earnings of $0.07 per share, exceeding the Zacks Consensus Estimate of $0.02 per share, and showing an increase from $0.04 per share a year ago, representing an earnings surprise of 250% [1] - The company achieved revenues of $26.19 million for the quarter ended February 2025, surpassing the Zacks Consensus Estimate by 0.15%, and up from $16.65 million year-over-year [2] - Byrna Technologies has surpassed consensus EPS estimates in all four of the last quarters and has topped consensus revenue estimates twice during the same period [2] Group 2 - The stock has underperformed, losing about 42.5% since the beginning of the year, compared to the S&P 500's decline of 7.2% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.05 on revenues of $25.55 million, and for the current fiscal year, it is $0.31 on revenues of $110.98 million [7] Group 3 - The Zacks Industry Rank indicates that the Technology Services sector is currently in the top 26% of over 250 Zacks industries, suggesting a favorable outlook for stocks within this industry [8] - Byrna Technologies holds a Zacks Rank of 1 (Strong Buy), indicating expectations for the stock to outperform the market in the near future [6]

Financial Data and Key Metrics Changes - Net revenue for Q1 2025 was $26.2 million, a 57% increase from $16.7 million in Q1 2024, driven by sales momentum, channel expansion, and broader brand adoption [7][11] - Gross profit for Q1 2025 was $15.9 million, or 61% of net revenue, compared to $9.6 million, or 58% of net revenue for Q1 2024, indicating improved gross margin [9] - Net income for Q1 2025 was $1.7 million compared to $17,000 for Q1 2024, reflecting an overall increase in product sales [11] - Adjusted EBITDA for Q1 2025 totaled $2.8 million compared to $1.2 million for Q1 2024 [12] Business Line Data and Key Metrics Changes - Direct-to-consumer revenues increased by $6.7 million through Burna.com and Amazon, with Amazon sales growing at a faster rate than Burna.com sales [7][8] - Sales to dealers increased by $1.9 million, or 78%, with significant contributions from chain stores, particularly Bass Pro Shops [9] Market Data and Key Metrics Changes - Amazon sales represented 26.9% of Burna's total direct-to-consumer sales in Q1 2025, up from 19.3% in Q1 2024, and climbed to 32.6% in March 2025 [17][18] - The company has seen improved daily sales trends in February and March compared to January, despite general market softness [15] Company Strategy and Development Direction - The company is focusing on expanding its retail presence through partnerships, such as the store-within-a-store program with Sportsman's Warehouse, which has expanded to 54 locations [23][24] - The upcoming launch of the compact launcher is expected to drive significant sales growth, with a production goal of over 25,000 units before the official release [54][59] - The company is transitioning its supply chain to domestic suppliers, which is expected to enhance quality control and reduce costs associated with inventory in transit [33][44] Management's Comments on Operating Environment and Future Outlook - Management anticipates that Q1 2025 was the low point for revenues in the year, with expectations for sequential growth in subsequent quarters driven by the new compact launcher [75] - The company is well-positioned to offset the impact of increased tax rates and tariffs through gross margin expansion and disciplined operating expense management [60] Other Important Information - The company has initiated production of its payload rounds at a new facility in Fort Wayne, Indiana, with an annual capacity of 8 million rounds [46] - The compact launcher is designed to appeal to a broader market, including women, due to its smaller size and ease of use [52] Q&A Session Summary Question: Can you provide insights on early sales trends for Q2 and ROAS management? - Management noted that ROAS is typically lower in the early part of the year, with expectations to focus on existing customer sales for the new compact launcher, reducing advertising spend until later in the year [66][67] Question: What is the rollout plan for the new compact launcher? - The company plans to have 25,000 to 30,000 units ready before the launch, with dealer orders starting to be fulfilled by April 21, leading up to the public release on May 1 [70][73] Question: What are the current operational stores and learnings from the Sportsman's partnership? - Currently, one store is operational, with 13 more set to open by May 1, and the company is optimistic about leveraging Sportsman's existing foot traffic to drive sales [80][82] Question: What is the MSRP for the new compact launcher compared to existing products? - The MSRP for the new compact launcher will be $549.99, compared to $479.99 for the LE and $379 for the SD [94] Question: Will the new compact launcher have different ammo margins? - The new 61 caliber ammo will have similar pricing and margins as existing products, with no significant cost differences anticipated [96]

Financial Performance - Total revenue for the three months ended February 28, 2025, was $26.19 million, a 57.3% increase from $16.65 million for the same period in 2024[44]. - E-commerce revenue (direct to consumers) reached $20.16 million, up 53.7% from $13.10 million in the prior year[44]. - Wholesale revenue (dealer/distributors) increased to $6.03 million, a 69.5% rise from $3.55 million in the previous year[44]. - For the three months ended February 28, 2025, the Company recorded net income of $1.662 million, compared to $17,000 for the same period in 2024[64]. - The Company reported total revenue of $26.190 million for the three months ended February 28, 2025, up from $16.654 million for the same period in 2024, representing a year-over-year increase of approximately 57.5%[83]. Advertising and Expenses - For the three months ended February 28, 2025, the company recorded advertising costs of approximately $4.0 million, compared to $2.8 million for the same period in 2024, representing a 42.9% increase[32]. - Total stock-based compensation expense for the three months ended February 28, 2025, was $0.8 million, a decrease from $0.9 million in the same period in 2024[57]. - Stock-based compensation expense for options granted was $0.4 million for both the three months ended February 28, 2025, and February 29, 2024[61]. - The total lease cost for the three months ended February 28, 2025, was $200,000, compared to $160,000 for the same period in 2024[77]. Assets and Investments - As of February 28, 2025, the total fair value of marketable debt securities was $15.954 million, up from $20.208 million as of November 30, 2024, indicating a decrease of 21.2%[28]. - The company classified its investments as available-for-sale, with total marketable securities valued at $11.620 million as of February 28, 2025[25]. - The Company loaned $1.6 million to Byrna LATAM in January 2023, with quarterly reviews to assess the need for credit loss estimates based on various financial factors[88]. - The Company's marketable debt securities include U.S. Treasury Securities and Corporate Bonds, with an investment policy that limits exposure to any one type of investment and requires a minimum rating of AA-/Aa3[89]. Liabilities and Revenue Recognition - The balance of deferred revenue decreased to $0.5 million as of February 28, 2025, down from $2.7 million in the prior year[42]. - The total allowance for expected credit losses was less than $0.1 million as of February 28, 2025, compared to $0.6 million in the same period last year[40]. - Accounts receivable as of February 28, 2025, was $2.9 million, consistent with the previous periods[39]. Ownership and Equity - The company acquired a 51% ownership interest in Byrna LATAM for $0.5 million in January 2023, which was later sold for $1 on August 19, 2024[29][30]. - The loan to Byrna LATAM was amended to a fixed amount of $1,431,112 plus accrued interest of $203,373, totaling $1,634,485, with repayment starting on August 19, 2025[31]. - The Company had 818,033 unvested and outstanding RSUs as of February 28, 2025, down from 915,230 as of November 30, 2024[60]. - The weighted-average number of shares used in computing diluted net income per share increased to 24,098,635 for the three months ended February 28, 2025, from 22,838,827 in the prior year[64]. Regulatory and Accounting Changes - The company anticipates that the adoption of ASU 2023-07 will not have a material impact on its consolidated financial statements[19]. - The company is currently evaluating the effect of ASU 2023-09 on its financial statements and disclosures, which is required to be effective for fiscal years beginning after December 15, 2024[20]. Foreign Operations - The Company recorded a translation adjustment loss of $0.1 million related to the South African rand during the three months ended February 28, 2025[85]. - The Company's South African subsidiary revenues, cost of goods sold, operating costs, and capital expenditures are denominated in South African rand, leading to increased volatility in sales and net earnings when translated into U.S. dollars[86]. Other Financial Metrics - The Company recorded interest income related to the loan receivable of less than $0.1 million for the three months ended February 28, 2025[31]. - Future lease payments under non-cancelable operating leases total $3.006 million as of February 28, 2025[78]. - The Company recorded an income tax expense of $0.1 million for the three months ended February 28, 2025, with an effective tax rate of 6.4%[80]. - The Company had deposits of $3.7 million with vendors for machinery and equipment as of February 28, 2025[47]. - Inventory increased to $23.18 million as of February 28, 2025, from $19.97 million as of November 30, 2024[45].