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].

Core Insights - Byrna Technologies Inc. reported a 57% year-over-year revenue growth in Q1 2025, reaching $26.2 million, up from $16.7 million in Q1 2024, driven by sales momentum, channel expansion, and brand adoption [3][7][8] - The gross profit for Q1 2025 increased to $15.9 million, representing 61% of net revenue, compared to $9.6 million (58% of net revenue) in Q1 2024, attributed to reduced component costs and economies of scale [4][5] - Operating expenses rose to $14.2 million in Q1 2025 from $9.8 million in Q1 2024, primarily due to higher selling expenses, payroll, and marketing costs [5] - Net income for Q1 2025 was $1.7 million, a significant increase from $17,000 in Q1 2024, reflecting overall product sales growth [5] - Byrna's cash and cash equivalents totaled $19.3 million as of February 28, 2025, down from $25.7 million at the end of November 2024, due to planned inventory increases [6] Financial Performance - Net revenue for Q1 2025 was $26.2 million, a 57% increase from $16.7 million in Q1 2024 [3] - Gross profit increased to $15.9 million (61% of net revenue) from $9.6 million (58% of net revenue) in Q1 2024 [4] - Operating expenses were $14.2 million in Q1 2025, compared to $9.8 million in Q1 2024 [5] - Adjusted EBITDA for Q1 2025 was $2.8 million, up from $1.2 million in Q1 2024 [5] Operational Highlights - Byrna launched its first store-within-a-store concept at Sportsman's Warehouse, with plans for 12 additional locations by early May [8][10] - Three company-owned retail stores opened in high-traffic areas, generating daily sales between $1,000 and $1,700 in their first month [12] - Monthly production capacity for launchers increased by 33% to 24,000 units, with new ammunition production capabilities established [13][14] - The company achieved 92% domestic sourcing for its flagship model, the Byrna SD, as part of its 'Made in America' initiative [15] Strategic Initiatives - Byrna partnered with celebrity influencers to enhance brand visibility and promote less-lethal solutions [16] - The company anticipates continued cash generation in the second half of 2025, despite expected working capital investments in Q2 [17] - Byrna's management expressed confidence in executing growth strategies through 2025 and beyond, supported by scalable partnerships and new product launches [18]

Core Viewpoint - Byrna Technologies Inc. is expected to report a year-over-year decline in earnings despite higher revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is anticipated to show earnings of $0.02 per share, reflecting a 50% decrease year-over-year, while revenues are projected to be $26.15 million, representing a 57.1% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised 12.5% higher in the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate aligns with the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%, which complicates predictions of an earnings beat [10][11]. Historical Performance - Byrna Technologies has consistently beaten consensus EPS estimates in the past four quarters, with a notable surprise of +240% in the last reported quarter [12][13]. Market Reaction Factors - The stock's movement may not solely depend on earnings results, as other factors can influence investor sentiment and stock performance [14][16].

Core Viewpoint - Byrna Technologies Inc. will hold a conference call on April 10, 2025, to discuss its financial results for the fiscal first quarter ended February 28, 2025 [1] Group 1: Conference Call Details - The conference call is scheduled for April 10, 2025, at 9:00 a.m. Eastern time [2] - Participants can join via toll-free dial-in at 877-709-8150 or international dial-in at +1 201-689-8354, with a conference ID of 13752594 [2] - The call will be broadcast live and available for replay on Byrna's website [3] Group 2: Company Overview - Byrna Technologies specializes in developing, manufacturing, and selling innovative less-lethal personal security solutions [4] - The company produces the Byrna® SD personal security device, a handheld CO2 powered launcher designed as a less-lethal alternative to firearms [4]

Core Viewpoint - Byrna Technologies Inc. has experienced a significant stock price decline of 39% over the past three months, contrasting with a 2.7% decline in the broader industry, indicating potential challenges in the small-cap service provider sector [1] Company Performance - Byrna achieved a record $28.0 million in sales for Q4 of fiscal 2024, driven by a successful celebrity endorsement program that yielded over 5X return on ad spend [3] - The company reported a remarkable 79% year-over-year sales growth for Q4, with net income improving from a loss of $0.8 million to a profit of $9.7 million, marking a $10.5 million increase [4] Growth Initiatives - Byrna is ramping up production, increasing launcher production by 33% to 24,000 units per month to meet rising market demand [5] - The company is expanding its retail presence and strengthening its footprint in Latin America through partnerships with law enforcement [6][7] Financial Health - Byrna's return on equity (ROE) stands at 15.39%, significantly higher than the industry average of 5.44%, indicating effective management and strong profitability [9] - The company has a robust liquidity position with a current ratio of 3.3, compared to the industry's 0.1, providing financial flexibility for growth investments [10] Future Outlook - Sales are projected to grow by 29.4% in fiscal 2025 and 17.2% in fiscal 2026, with the Zacks Consensus Estimate for fiscal 2025 earnings at 31 cents, remaining flat year-over-year [11][14] - Recent upward revisions in earnings estimates for fiscal 2025 and 2026 suggest a positive outlook, with a 10.7% increase for 2025 and a 29% increase for 2026 [16][17] Investment Potential - Byrna is positioned as a compelling growth investment due to its strong brand momentum, expanding market presence, and strategic initiatives [18][19] - The company is recognized with a Zacks Rank 1 (Strong Buy), indicating strong indicators of continued success and growth potential [20]

Industry Overview - The technology services industry is maturing with strong demand for services, and revenues, income, and cash flows are expected to gradually return to pre-pandemic levels, supporting stable dividends for industry players [2][3] - The global shift towards digitization is creating opportunities in markets such as 5G, blockchain, and artificial intelligence (AI), with the U.S. positioned for growth in smart technologies and security investments [4] - Companies are rapidly adopting generative AI, machine learning (ML), and data science to gain competitive advantages, with generative AI projected to grow at a 42% CAGR over the next decade, reaching a $1.3 trillion market by 2032 [5] Company Highlights Byrna Technologies Inc. (BYRN) - Byrna Technologies specializes in less-lethal self-defense technology, offering products like handheld personal security devices and shoulder-fired launchers [8][9] - The average short-term price target for BYRN shares indicates a potential increase of 93.2% from the last closing price of $19.03, with a target range of $33-$38 [11] - Expected revenue growth rate for BYRN is 29.4% for the current year, with earnings growth projected at 0% [12] LiveRamp Holdings Inc. (RAMP) - LiveRamp operates as a marketing technology company, providing data foundation and digital transformation services [13][14] - The average short-term price target for RAMP shares suggests a potential increase of 53.3% from the last closing price of $27.15, with a target range of $25-$50 [16] - Expected revenue and earnings growth rates for LiveRamp are 8.7% and 34.3%, respectively, for the next year [17] Dave Inc. (DAVE) - Dave offers various financial products, including personal financial management tools and digital banking services [18][19] - The average short-term price target for DAVE shares indicates a potential increase of 44.5% from the last closing price of $87.79, with a target range of $110-$142 [21] - Expected revenue and earnings growth rates for Dave are 22.3% and 26.9%, respectively, for the current year [21] Smiths Group plc (SMGZY) - Smiths Group operates in industrial technology across multiple segments, including mechanical seals and detection systems [22][23] - The average short-term price target for SMGZY shares suggests a potential increase of 19.7% from the last closing price of $26.18, with a target range of $32-$32 [25] - Expected revenue and earnings growth rates for Smiths Group are 14.4% and 12.8%, respectively, for the current year [26] UiPath Inc. (PATH) - UiPath provides an automation platform with robotic process automation solutions, incorporating AI and ML capabilities [27][28] - The average short-term price target for PATH shares indicates a potential increase of 10.8% from the last closing price of $10.82, with a target range of $10-$15 [29] - Expected revenue growth rate for UiPath is 6.8%, while earnings are projected to decline by 7.6% for the current year [30]

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 is thriving in 2024, with continued momentum into the first quarter of 2025 [1][3] - The global shift towards digitization is creating opportunities in markets such as 5G, blockchain, and artificial intelligence (AI), with the United States leading in IT sector growth [3] Growth Drivers - Companies are rapidly adopting generative AI, machine learning (ML), blockchain, and data science to gain competitive advantages [4] - The worldwide generative AI market is projected to grow at a 42% CAGR over the next decade, reaching $1.3 trillion by 2032 [4] - There is robust demand for multi-cloud-enabled software solutions as businesses transition from legacy platforms to modern cloud-based infrastructures [4][5] Stock Recommendations - Five mid and small-cap technology services stocks are recommended for their strong short-term upside potential: Byrna Technologies Inc. (BYRN), LiveRamp Holdings Inc. (RAMP), Dave Inc. (DAVE), Smiths Group plc (SMGZY), and UiPath Inc. (PATH) [2][6] Company Highlights Byrna Technologies Inc. (BYRN) - Engaged in developing and selling less-lethal personal security solutions globally [9] - Average short-term price target indicates a potential increase of 93.2% from the last closing price of $19.03, with a target range of $33-$38 [11] - Expected revenue growth rate of 29.4% for the current year [12] LiveRamp Holdings Inc. (RAMP) - Operates as a marketing technology company providing data foundation and digital transformation services [13] - Average short-term price target suggests a potential increase of 53.3% from the last closing price of $27.15, with a target range of $25-$50 [16] - Expected revenue growth rate of 8.7% for next year [17] Dave Inc. (DAVE) - Provides various financial products and services, including personal financial management tools [18] - Average short-term price target indicates a potential increase of 44.5% from the last closing price of $87.79, with a target range of $110-$142 [20] - Expected revenue growth rate of 22.3% for the current year [20] Smiths Group plc (SMGZY) - Operates in industrial technology across multiple segments, including safety and security [21] - Average short-term price target suggests a potential increase of 19.7% from the last closing price of $26.18, with a target range of $32-$32 [24] - Expected revenue growth rate of 14.4% for the current year [25] UiPath Inc. (PATH) - Provides an end-to-end automation platform with a focus on robotic process automation solutions [26] - Average short-term price target indicates a potential increase of 10.8% from the last closing price of $10.82, with a target range of $10-$15 [28] - Expected revenue growth rate of 6.8% for the current year [29]

Group 1 - The article discusses the investment research service The Aerospace Forum, which focuses on the aerospace, defense, and airline industries, providing insights and data analytics to identify investment opportunities [1] - The analyst, Dhierin, has a background in aerospace engineering and covers nearly 90 companies in the aerospace and defense sector, highlighting the industry's significant growth prospects [1] - The service aims to offer context to industry developments and their potential impact on investment theses, driven by data-informed analysis [1] Group 2 - The article emphasizes that the analyst has no current stock or derivative positions in the companies mentioned, ensuring an unbiased perspective [1] - It clarifies that the views expressed are personal opinions and not influenced by any compensation from companies mentioned [1]

Core Insights - Byrna Technologies Inc. has launched its first U.S.-based ammunition production facility in Fort Wayne, Indiana, enhancing domestic manufacturing capabilities and supply chain reliability [1][3] - The new facility is expected to produce 8 million rounds of proprietary less-lethal ammunition annually, with initial production powered by three SAM machines and one Amtek machine [2] - The operational schedule includes 116 hours per week, with plans to potentially add two more SAM machines to increase monthly output by approximately 150,000 rounds [2][3] Company Overview - Byrna specializes in developing, manufacturing, and selling innovative less-lethal personal security solutions, including the Byrna® SD personal security device [4] - The company aims to consolidate all production in the United States, aligning with its long-term strategic goals [3]

Core Insights - Sportsman's Warehouse has announced an exclusive partnership with Byrna Technologies to create dedicated in-store and e-commerce shop-in-shops featuring Byrna's less-lethal personal security solutions [1][2][3] - The partnership aims to enhance customer experience by providing live-fire demonstrations and expert training in select locations, thereby increasing customer engagement and driving store traffic [2][3] Company Overview - Sportsman's Warehouse is an outdoor specialty retailer with 146 stores across 32 states, focusing on providing gear and exceptional service to a diverse customer base [4] - The company is committed to meeting year-round personal protection needs, positioning itself to expand its share in the personal protection market through this partnership [2][3] Partnership Details - The partnership includes an exclusive shop-in-shop experience in big box specialty retail, with a focus on markets with high consumer interest in personal protection [2] - Byrna's products have shown an 80% conversion rate when customers demo them live, indicating strong potential for customer acquisition through this initiative [3]