Revenue Growth - Byrna Technologies reported preliminary revenue of $26.2 million for Q1 2025, a 57% increase from $16.7 million in Q1 2024[2]. - E-commerce sales contributed $19.4 million, accounting for 74% of total sales, with a 53% year-over-year increase[3]. - Dealer sales rose by $1.9 million year-over-year, indicating strong growth in this channel[3]. - Byrna's marketing strategies and increased production levels at its Fort Wayne factory were key drivers of revenue growth[2]. - The company experienced only a 6% sequential decrease in sales from its strongest quarter, demonstrating resilience in a traditionally slow period[4]. Production and Supply Chain - The company produced a record 68,916 launchers in Q1 2025, representing a 219% increase compared to the same quarter last year[3]. - The company plans to transition most of its supply chain to the United States in 2025, reducing tariff exposure and reinforcing domestic manufacturing[7]. Product Development and Partnerships - Byrna's new product, the Compact Launcher, and partnerships with celebrity influencers are expected to support continued growth throughout 2025[5]. - Byrna's retail store presence is expanding, including a partnership with Sportsman's Warehouse[5]. Future Outlook - The company anticipates reporting full financial results for Q1 2025 in April, followed by a conference call for investors and analysts[8].

Core Viewpoint - Byrna Technologies Inc. reported a significant 57% year-over-year revenue growth for the fiscal first quarter of 2025, driven by successful marketing strategies and increased production levels [2][4]. Financial Performance - Total revenue for Q1 2025 is expected to be $26.2 million, up from $16.7 million in Q1 2024, marking a 57% increase [2]. - E-commerce sales contributed $6.7 million, accounting for 74% of total sales for the quarter [3]. - A record 68,916 launchers were produced in Q1 2025, representing a 26% increase from Q4 2024 and a 219% increase year-over-year [3][5]. Sales Channel Breakdown - Web sales reached $19.4 million, a 53% increase from $12.7 million in Q1 2024 [5]. - Sales through Byrna Dedicated Dealers increased by 76%, from $2.5 million to $4.4 million [5]. - International sales grew by 56%, from $1.3 million to $2.0 million [5]. Management Insights - The CEO noted that Q1 2025 showed resilience with only a 6% sequential decrease from the strongest quarter, indicating growing brand awareness due to a revamped marketing strategy [4]. - The company is leveraging celebrity endorsements and expanding retail presence to support its growth targets [5]. Supply Chain and Tariff Management - Byrna is well-positioned to manage trade policy changes with minimal impact on costs, as it sources no critical components from Mexico or Canada and has limited exposure to China [7]. - The company plans to move most of its supply chain to the U.S. in 2025, enhancing its commitment to domestic manufacturing [7]. Upcoming Events - Byrna plans to report full financial results for Q1 2025 in April, accompanied by a conference call for investors and analysts [8].

Core Viewpoint - Byrna Technologies (NASDAQ: BYRN) has had its price target increased from $30 to $86 per share, indicating a potential upside of 150% from the current price [1] Company Analysis - The analyst has a long position in Byrna Technologies, indicating confidence in the company's future performance [2] - The investment strategy focuses on small to mid-cap companies with disruptive technology, suggesting a targeted approach to identifying growth opportunities [1] Historical Context - The analyst has a background in investment, having experienced significant market events such as the 1929 stock market crash and the dot-com bubble, which informs their investment strategy [1] - The family history of investing includes a focus on sectors like computers, banking, transport, and utilities, indicating a diverse investment background [1] Investment Strategy - The investment horizon is typically two years, but the analyst often holds investments for longer periods, reflecting a long-term growth perspective [1] - The emphasis on cutting losses early and allowing winners to run suggests a disciplined investment approach [1] Market Focus - Current focus is on the electrification of various sectors, indicating a trend towards sustainable and innovative technologies [1]

Core Viewpoint - Byrna Technologies Inc. has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based on the Zacks Consensus Estimate, which aggregates EPS estimates from sell-side analysts for the current and following years [2]. - Byrna Technologies is expected to earn $0.23 per share for the fiscal year ending November 2025, reflecting a decrease of 25.8% from the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for Byrna Technologies has increased by 15%, indicating a positive trend in earnings estimates [9]. Impact of Institutional Investors - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with stock price movements, largely due to institutional investors adjusting their valuations based on these estimates [5]. - Institutional investors' actions, driven by changes in earnings estimates, can lead to significant price movements in the stock [5]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of Byrna Technologies to a Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for price appreciation in the near term [11].

Financial Data and Key Metrics Changes - Net revenue for Q4 2024 was $28 million, a 79% increase from $15.6 million in Q4 2023 [9] - Full year 2024 net revenue totaled $85.8 million, up 101% from $42.6 million in 2023 [11] - Gross profit for Q4 2024 was $17.6 million or 62.8% of net revenue, compared to $9 million or 57.8% for Q4 2023 [11] - Net income for Q4 2024 was $9.7 million, compared to a net loss of $0.8 million for Q4 2023, a $10.5 million improvement [13] - Adjusted EBITDA for Q4 2024 totaled $5.2 million compared to $400,000 for Q4 2023 [15] Business Line Data and Key Metrics Changes - Direct-to-consumer revenues increased by $8.9 million through byrna.com and amazon.com compared to the prior year period [10] - Operating expenses for Q4 2024 were $13.5 million, up from $9.7 million for Q4 2023, reflecting a 39% increase [12] Market Data and Key Metrics Changes - Sales in Mexico grew to $890,000 from $300,000 the prior year, with expectations to at least double in 2025 [45] - In Canada, sales grew from $1.36 million in 2023 to $2.47 million in 2024, with expectations to reach approximately $4 million in 2025 [46] Company Strategy and Development Direction - The company plans to open additional retail stores, with four new locations expected soon [30] - A partnership with Sportsman's Warehouse is set to launch a store-within-a-store model at eleven locations, with potential expansion to fifty additional locations by the end of 2025 [34] - The company is committed to exiting China by midyear and aims to source nearly 100% of components from US suppliers by the end of 2025 [47] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the trajectory of the business and ongoing marketing efforts, believing the market for less lethal weapons among gun owners in the US is in the tens of millions of consumers [52] - The company expects strong year-over-year growth despite a traditional seasonal slowdown in consumer spending in Q1 [53] Other Important Information - The company has no current or long-term debt, and cash and short-term marketable securities totaled $25.7 million, an increase of $5.2 million compared to November 30, 2023 [15][16] - The company has committed to providing training for employees at Sportsman's Warehouse locations to ensure effective sales of Byrna products [96] Q&A Session Summary Question: Demand and sales trends in the first quarter - Management indicated that Q1 is traditionally a slower quarter but expects it to be a record quarter, well above previous high watermarks [57][58] Question: Operating expense leverage and incremental margins - Management noted that while marketing expenses will increase, variable selling expenses remain consistent, and new retail stores will incur additional operating expenses [64][65] Question: Sportsman's Warehouse partnership and rollout timing - Management expects the initial eleven stores to start producing profits within three to four months, with potential for rapid expansion if successful [80] Question: Production plans and inventory levels - Management confirmed no shortages in components and expects to grow inventory as they prepare for the launch of the compact launcher [83][84] Question: Revenue growth and margin expectations for 2025 - Management anticipates strong double-digit growth in 2025, with increasing margins expected due to cost reductions and the introduction of higher-margin products [88][90]

Core Viewpoint - Byrna Technologies Inc. reported quarterly earnings of $0.17 per share, significantly exceeding the Zacks Consensus Estimate of $0.05 per share, and showing a turnaround from a loss of $0.02 per share a year ago, representing an earnings surprise of 240% [1][2] Financial Performance - The company posted revenues of $27.98 million for the quarter ended November 2024, slightly missing the Zacks Consensus Estimate by 0.08%, but showing a substantial increase from $15.64 million in the same quarter last year [2] - Over the last four quarters, Byrna Technologies has surpassed consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - Byrna Technologies shares have declined approximately 4.6% since the beginning of the year, contrasting with the S&P 500's gain of 3.4% [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] Estimate Revisions and Rankings - The estimate revisions trend for Byrna Technologies is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, indicating expectations of outperforming the market in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $22.2 million, and for the current fiscal year, it is $0.23 on revenues of $103.2 million [7] Industry Context - The Technology Services industry, to which Byrna Technologies belongs, is currently ranked in the top 34% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Revenue Growth - Preliminary total revenue for Q4 2024 is expected to be $28.0 million, a 79% increase from $15.6 million in Q4 2023[3] - Full-year revenue for 2024 is projected to be a record $85.8 million, more than doubling the $42.6 million reported in 2023[3] - E-commerce sales increased by $8.9 million year-over-year, accounting for 76% of total sales in Q4 2024[4] - Byrna's international sales rose by $1.0 million year-over-year, including $43,000 in royalty revenue from a new agreement with Byrna LATAM[4] Production and Capacity - Production capacity exceeded 55,000 launchers in Q4 2024, enabling the company to meet growing demand[4] Sales Channels and Strategies - Direct-to-Consumer sales are expected to continue growing, supported by the launch of new Byrna-owned retail stores[6] - The upcoming release of a smaller compact launcher is anticipated to drive further growth in 2025[6] - Black Friday and Cyber Monday sales will be included in Q1 2025 results, with orders already shipped to customers[5] Financial Reporting - The company plans to report full financial results for Q4 and the full year 2024 in February, accompanied by a conference call[8] Market Positioning - Management emphasizes the normalization of less-lethal products as a viable alternative to lethal weapons, indicating strong market potential[6]

Sales and Market Expansion - Byrna Technologies reported that international sales represented 8.0% of revenue in fiscal year 2024, up from 6.8% in fiscal year 2023, indicating a growing interest in Byrna devices among foreign law enforcement customers [30]. - Byrna's marketing strategy includes engaging key influencers and utilizing targeted digital marketing tools, which has led to significant increases in orders and brand recognition [32]. - The company aims to position Byrna as a consumer lifestyle brand, leveraging its brand to expand product lines and increase sales from both new and existing customers [21]. Product Development and Innovation - The company introduced the Byrna LE in 2023, featuring a higher average muzzle velocity of 330 feet per second and an effective range of 60 feet, enhancing its product offerings [22]. - The company has developed a proprietary long-range less lethal projectile for 12-gauge shotguns, introduced in January 2023, showcasing its commitment to innovation [36]. - Byrna's product portfolio includes a range of .68 caliber projectiles, including Byrna Max and Byrna Pepper, designed for effective self-defense applications [27]. - The Byrna SD and LE devices are designed to provide a less-lethal alternative to firearms, with effective ranges significantly greater than traditional self-defense tools [22]. - Byrna Technologies has established the capability to manufacture projectiles in-house, improving quality and availability while reducing dependence on third-party suppliers [35]. Acquisitions and Intellectual Property - Byrna Technologies acquired Fox Labs International in May 2022, enabling continued sales to the law enforcement market while expanding its product line to include defensive pepper sprays [24]. - The company holds numerous issued utility and design patents, with several newly filed provisional patents currently being prosecuted [38]. - The company has acquired one patent and one trademark from Mission Less Lethal, two patents and four trademarks from Ballistipax Holdings Inc., and several trademarks from Fox Labs [38]. Manufacturing and Operations - The company operates two manufacturing facilities, one in Fort Wayne, Indiana, and another in Pretoria, South Africa, with sufficient capacity to meet production needs for at least the next two years [33]. - The manufacture and sale of the company's products are subject to extensive federal, state, and international regulations, which could adversely affect demand and operational costs [40]. - The company is required to maintain several Federal Firearms License (FFL) and Federal Explosive License (FEL) licenses to operate its 40mm products [40]. Competition and Market Challenges - The company faces competition from established manufacturers with strong brand recognition and significant financial resources, necessitating continuous innovation and brand awareness efforts [39]. Employee Relations and Compliance - As of November 30, 2024, the company employed 167 individuals, with no collective bargaining agreements in place and a good employee relations environment [45]. - The company has not experienced any material adverse effects from compliance with environmental laws and regulations [46]. Company History - The company was incorporated in Delaware in 2005 and changed its name to Byrna Technologies Inc. in 2020, with a history of acquisitions and dissolutions of subsidiaries [47].

Core Insights - Byrna Technologies Inc. reported a significant increase in revenues for fiscal year 2024, reaching $85.8 million, which is more than a 100% increase from $42.6 million in fiscal year 2023 [1][9] - The company achieved a net income of $12.8 million for fiscal year 2024, an improvement of $21.0 million from a net loss of $8.2 million in fiscal year 2023 [1][11] - The fourth quarter of fiscal year 2024 saw net revenue of $28.0 million, a 79% increase from $15.6 million in the same quarter of the previous year [3][6] Financial Performance - Gross profit for Q4 2024 was $17.6 million, representing 63% of net revenue, up from $9.0 million (58% of net revenue) in Q4 2023 [4] - Operating expenses for Q4 2024 increased to $13.5 million, a 39% rise from $9.7 million in Q4 2023, driven by higher variable selling costs and increased marketing expenditures [5] - Adjusted EBITDA for Q4 2024 was $5.2 million, compared to $0.4 million in Q4 2023, indicating improved operational efficiency [6][11] Operational Highlights - Byrna surpassed 500,000 launchers sold since its inception in June 2019 and increased production to 24,000 launchers per month to meet market demand [7] - The company opened a new ammunition manufacturing facility in Fort Wayne, Indiana, enhancing domestic production capacity [7] - Byrna's marketing strategy, including a celebrity endorsement program, generated a return on ad spend (ROAS) above 5.0X, contributing to record sales in Q4 2024 [7][13] Strategic Initiatives - The company is focused on expanding its retail presence, with new stores opened in key locations and plans for a store-within-a-store program at Sportsman's Warehouse [15][16] - Byrna aims to transition to a 'Made in America' strategy by sourcing nearly 100% of components from U.S. suppliers by the end of 2025, which is expected to reduce risks associated with foreign suppliers [18] - Internationally, Byrna secured a significant order from the Cordoba Province in Argentina for 1.7 million rounds of payload ammunition, reflecting growing international demand [18][19]

Core Insights - Byrna Technologies Inc. has opened its second company-owned retail store in Franklin, Tennessee, aiming to normalize less-lethal solutions as a mainstream personal safety choice and enhance brand recognition in key markets [1][3] Retail Expansion Strategy - The Nashville store builds on the success of the Las Vegas location, which has an annual run rate exceeding $1 million and gross profit margins over 60% [2] - The Nashville store features an in-store shooting range, allowing customers to experience Byrna's less-lethal launchers firsthand, with expected high conversion rates similar to the Las Vegas store's 80% compared to 1% online [2] - Byrna's retail strategy is a phased approach, with four new locations planned for early 2025, including Fort Wayne, Indiana, Scottsdale, Arizona, and Salem, New Hampshire, to refine operations and marketing strategies [3] Community Engagement and Education - Byrna's retail expansion aims to make less-lethal solutions more accessible and mainstream, fostering personal connections with customers through workshops and in-store events [4] - The grand opening of the Nashville store included local officials and law enforcement representatives, emphasizing Byrna's commitment to community engagement as it expands its physical presence across the U.S. [4]