Question-and-Answer SessionMark ZagorskiCEO & Director Yes. So when we kind of came in to '25 sought as a year of kind of transition and evolution and we had 2 main things that we wanted to focus on. First, extending our core value proposition, beyond just verification. And around midyear, we launched what we call the AdVantage Platform, which expanded our business not only to -- just to do more verification, but expanded into optimization. So algorithmic-based bidding compression and through performance me ...

Core Insights - Byrna Technologies Inc. has been recognized for its strong financial performance and strategic initiatives, with a price target of $40 set by Roth Capital, indicating a potential upside of approximately 40.9% from its current trading price of $28.39 [1] Financial Performance - In Q3 2025, Byrna reported an earnings per share (EPS) of $0.09, exceeding the Zacks Consensus Estimate of $0.05, resulting in an 80% earnings surprise compared to the previous year's EPS of $0.04 [2][6] - The company's revenue for the quarter ending August 2025 was $28.18 million, slightly below the Zacks Consensus Estimate by 0.07%, but representing a significant 35% increase from $20.85 million in the same quarter last year [3][6] Strategic Initiatives - Byrna has launched a new AI advertising workstream, which has expanded its advertising reach cost-effectively, positioning the company for an anticipated revenue growth of 35-40% for fiscal year 2025 [4][6] - The company has increased its retail presence, with products now available in over 1,000 big-box store locations nationwide, contributing to its revenue growth [3] Market Performance - The stock of Byrna Technologies has shown volatility, trading between $28.35 and $30.61 during the day, with a yearly high of $34.78 and a low of $13.51 [5] - As of the latest data, the stock price is $29.50, reflecting a 6.77% increase, with a market capitalization of approximately $669.76 million [4]

Core Insights - Byrna Technologies Inc. is positioned to achieve a revenue growth of 35-40% in fiscal 2025, supported by web traffic growth and an expanding retail presence [1][12][10] Financial Performance - Net revenue for Q3 2025 increased by 35% year-over-year to $28.2 million from $20.9 million in Q3 2024, driven by strong dealer and chain store sales [4][3] - Gross profit for Q3 2025 rose to $16.9 million (60% of net revenue) compared to $13.0 million (62% of net revenue) in Q3 2024, reflecting a strong increase in sales and changes in channel mix [5][3] - Operating expenses for Q3 2025 were $14.1 million, up from $12.2 million in Q3 2024, primarily due to higher variable selling expenses and increased marketing spend [6][3] - Net income for Q3 2025 was $2.2 million, an increase from $1.0 million in Q3 2024, driven by increased product sales and operating leverage [6][3] - Adjusted EBITDA for Q3 2025 totaled $3.7 million, up from $1.9 million in Q3 2024 [6][3] Operational Highlights - Byrna launched a new AI advertising workstream, significantly increasing web traffic from an average of 33,000 daily sessions to over 50,000 in August, with continued growth to 58,000 in September [8][10] - The company expanded its retail presence to over 1,000 stores nationwide, enhancing brand visibility and product accessibility [8][11] - Byrna introduced ByrnaCare™, a protection plan for its launchers, marking the company's entry into service-based offerings [8][13] Inventory and Cash Position - Inventory at August 31, 2025, totaled $34.1 million, up from $20.0 million at November 30, 2024, reflecting strategic builds ahead of the holiday season [9][3] - Cash and cash equivalents decreased to $9.0 million from $25.7 million at November 30, 2024, due to working capital changes [7][3] Future Outlook - The company anticipates strong demand leading into the holiday shopping period, expecting full-year fiscal 2025 revenue growth between 35% and 40% [12][10] - Byrna is focused on building a broader personal safety platform, including new products and subscription-based offerings, to capitalize on a growing market [13][10]

Core Insights - The advertising industry is being redefined by artificial intelligence, leading to a new era termed "AI-vertising" [2] - The 18th Busan International Advertising Festival (MAD STARS 2025) will focus on the intersection of AI and advertising, exploring the unique value of human creativity in an AI-driven landscape [2] Group 1: AI and Human Creativity - The central theme of the festival is the balance between AI and human creativity, with discussions on how advertising agencies can transform into dual-function organizations [4] - Keynote speeches will address the role of AI as a foundational infrastructure for creative production, emphasizing the need for technology to empower rather than replace human inspiration [4] - Notable leaders from major creative firms will explore various dimensions, including the integration of AR with culture and the application of AI in the entertainment industry [4] Group 2: Practical Applications and Young Talent - The festival will feature a comprehensive program that showcases the latest AI-driven creative cases, providing attendees with insights into new content production forms [5] - The NEW STARS and YOUNG STARS initiatives will offer young creatives opportunities to engage with top industry judges, helping them navigate the challenges of maintaining creativity amidst technological advancements [5] Group 3: Cultural Exchange and Collaboration - Evening events will facilitate informal discussions among advertising professionals from diverse cultural backgrounds, fostering new ideas and inspirations [6] - The China-Japan-Korea Outdoor Advertising Summit will focus on how AI is reshaping the global outdoor digital advertising landscape, highlighting localized innovations and potential cross-border collaborations [7] - The festival serves as a window into the evolution of the advertising industry, where creativity intertwines with technology, data, and culture, potentially redefining the value of advertising [7]