Financial Data and Key Metrics Changes - Net revenue for Q4 2025 was $35.2 million, a 26% increase from $28 million in Q4 2024, driven by strong dealer and chain store performance [4][5] - Full year 2025 net revenue totaled $118.1 million, up 38% from $85.8 million in 2024 [4] - Gross profit for Q4 2025 was $21.1 million, or 60% of net revenue, compared to $17.6 million, or 63% of net revenue for Q4 2024 [5] - Full year gross profit was $71.5 million, or 61% of net revenue, compared to $52.8 million, or 62% of net revenue in 2024 [6] - Net income for Q4 2025 was $3.4 million, down from $9.7 million in Q4 2024, primarily due to a prior year tax benefit [8][9] - Full year net income was $9.7 million, down from $12.8 million in 2024, but improved by $2.5 million when excluding the tax benefit [9] Business Line Data and Key Metrics Changes - Brick-and-mortar sales increased from $15.2 million in 2024 to $31 million in 2025, representing over 100% growth [12] - Chain store sales were the largest contributor to brick-and-mortar performance, expanding from around 200 locations to approximately 900 by year-end [13][14] - International sales grew by 66% year-over-year, while direct-to-consumer channels saw an 18.4% increase [21][22] Market Data and Key Metrics Changes - Byrna's DTC sales on Amazon grew by 46.9%, now accounting for 28.6% of DTC sales, up from 23.2% [22] - The company expects to expand its retail footprint to approximately 2,000 locations in 2026 [18] Company Strategy and Development Direction - Byrna is transitioning from a direct-to-consumer model to a diversified multi-platform model, focusing on a broader audience through a nationwide dealer base [11] - The company plans to implement a price increase of 4%-5% as of February 1, 2026, alongside the introduction of the new Byrna CL XL [7] - Byrna aims to enhance its product offerings with new devices, including a modular launcher and subscription-based products [34][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong top-line growth and expanding profitability in fiscal 2026 [35][38] - The company anticipates margin improvement due to a favorable product mix, manufacturing efficiencies, and recent price increases [38] - Byrna's leadership believes the less lethal personal safety category is becoming more accepted, positioning the company as a leader in this space [39] Other Important Information - Byrna has entered into a $20 million credit facility with Texas Capital Bank to support strategic growth initiatives [10][35] - The company is exploring creative advertising strategies, including a Super Bowl commercial to enhance brand awareness [24][25] Q&A Session Summary Question: Insights on the new CL XL launcher and its margin profile - The CL XL will be priced at $579.99, with margins expected to be similar to the current CL, providing strong value for consumers [46][47] Question: Expectations for gross margin trends and revenue growth for 2026 - Gross margins are expected to grow incrementally throughout the year, aiming for a range of 63%-65% by the end of 2026 [58][61] Question: Contribution of growth from existing and new retail partners - The company expects growth from both expanding existing relationships and adding new chain stores, with a focus on optimizing product and inventory support [74]

Financial Data and Key Metrics Changes - Net revenue for Q4 2025 was $35.2 million, a 26% increase from $28 million in Q4 2024, driven by strong dealer and chain store performance [4] - Full year 2025 net revenue totaled $118.1 million, up 38% from $85.8 million in 2024 [4] - Gross profit for Q4 2025 was $21.1 million, or 60% of net revenue, compared to $17.6 million, or 63% of net revenue for Q4 2024 [5] - Full year gross profit was $71.5 million, or 61% of net revenue, compared to $52.8 million, or 62% of net revenue in 2024 [6] - Net income for Q4 2025 was $3.4 million, down from $9.7 million in Q4 2024, primarily due to a $5.6 million tax benefit in the prior year [9] - Full year net income was $9.7 million, down from $12.8 million in 2024, but improved by $2.5 million when excluding the tax benefit [10] - Adjusted EBITDA for Q4 2025 totaled $6 million, compared to $5 million in Q4 2024, bringing full year adjusted EBITDA to $16.8 million, up from $11.5 million in 2024 [10] Business Line Data and Key Metrics Changes - Brick-and-mortar sales increased from $15.2 million in 2024 to $31 million in 2025, representing over 100% growth [13] - Chain store sales increased significantly, with show dealers up 20.9%, premier dealers up 40.4%, traditional dealers up 73.4%, and company-owned retail stores up 186.5% [14] - International sales showed strong momentum, generating 66% growth from the prior year [21] Market Data and Key Metrics Changes - DTC channels, including Byrna.com and Amazon.com, grew by 18.4% year-over-year, with Amazon growing at 46.9% [21][22] - Byrna's market presence expanded to over 1,500 retail locations, with expectations to grow to approximately 2,000 locations in 2026 [18] Company Strategy and Development Direction - The company transitioned from a direct-to-consumer model to a diversified multi-platform model, focusing on a broader audience through a nationwide dealer base [12] - Byrna plans to continue expanding its retail footprint and product offerings, including the introduction of the new Byrna CL XL and subscription-based products [32][36] - The company is exploring strategic acquisitions to support growth initiatives [37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong top-line growth and profitability expansion in fiscal 2026, with expectations for improved gross margins [40][41] - The company anticipates a low point in inventory at the end of Q1 2026, followed by a ramp-up to support growth [11] - Management highlighted the growing acceptance of less lethal personal safety solutions and Byrna's position as a leader in this market [42] Other Important Information - Byrna implemented a price increase of 4%-5% as of February 1, 2026, to support margin improvement [7] - The company entered into a $20 million credit facility with Texas Capital Bank to support strategic growth initiatives [11] Q&A Session Summary Question: Can you provide insights on the new CL XL launcher and its margin profile? - The CL XL will be priced at $579.99, with margins expected to be similar to the current CL, providing a strong value proposition for consumers [49] Question: What are the expectations for gross margin trends and revenue growth in 2026? - Gross margins are expected to grow towards the 63%-65% range by the end of 2026, with continued revenue growth anticipated [62] Question: How does the company plan to handle the rollout of the camera product? - The camera will be developed with a third-party vendor and is expected to launch in late Q2 or early Q3 2026 [81]

Core Insights - Byrna Technologies Inc. reported a 26% year-over-year increase in net revenue for Q4 2025, reaching $35.2 million, driven by strong dealer and chain store performance, as well as growth in Amazon and international channels [4] - The company expanded its monthly production capacity by 33% to 20,000 units to meet growing demand, including higher-than-expected dealer reorders [23] - Byrna's net income for Q4 2025 was $3.4 million, a decrease from $9.7 million in Q4 2024, which had benefited from a significant tax benefit [7] Fiscal Fourth Quarter 2025 Financial Results - Net revenue for Q4 2025 was $35.2 million, up from $28.0 million in Q4 2024, marking a 26% increase [4] - Gross profit for Q4 2025 was $21.1 million (60% of net revenue), compared to $17.6 million (63% of net revenue) in Q4 2024 [5] - Operating expenses for Q4 2025 increased by 27% to $17.1 million, reflecting higher advertising and marketing costs [6] - Adjusted EBITDA for Q4 2025 was $6.0 million, compared to $5.0 million in Q4 2024 [7] Fiscal Year 2025 Financial Results - Net revenue for FY 2025 was $118.1 million, a 38% increase from $85.8 million in FY 2024 [11] - Gross profit for FY 2025 was $71.5 million (61% of net revenue), compared to $52.8 million (62% of net revenue) in FY 2024 [12] - Operating expenses for FY 2025 were $59.6 million, reflecting a 29% increase from FY 2024 [13] - Adjusted EBITDA for FY 2025 totaled $16.8 million, compared to $11.5 million for FY 2024 [14] Operational Highlights - Byrna surpassed 750,000 launchers sold since inception, with cumulative unit sales increasing by over 250,000 during FY 2025 [8] - The company appointed new board members, including Adam Roth and TJ Kennedy, to enhance its strategic direction [8] - Byrna introduced the new Byrna CL XL launcher at SHOT Show, expanding its product lineup [8] - The company secured a $20 million credit facility with Texas Capital Bank to support potential acquisitions and working capital needs [8] Market Position and Strategy - Byrna's advertising campaign and retail expansion contributed to increased brand visibility, with over 600 new chain store locations opened [11] - The brick-and-mortar segment grew more than 100% year-over-year, increasing its share of sales from 18% in 2024 to 26% in 2025 [16] - The company plans to implement a strategic price increase of 4% to 5% as of February 1, 2026, to support margin expansion [12] - Byrna aims to broaden its consumer reach through innovative marketing strategies, including a local advertisement during the Super Bowl [22]