Core Viewpoint - Byrna Technologies has successfully moved much of its manufacturing to the U.S., benefiting from reduced supply chain disruptions and enhanced product quality associated with the "Made in America" label [1][2]. Group 1: Manufacturing Shift - Byrna Technologies relocated its main manufacturing facility from South Africa to Indiana in 2021 to mitigate supply chain disruptions experienced during the pandemic [2]. - The company aimed to establish redundancy in its supply chain by sourcing over 100 components from qualified U.S. suppliers [3]. - The decision to onshore was influenced by the anticipated tariffs under the Trump administration, which made domestic production more cost-effective [5][6]. Group 2: Cost and Quality Benefits - The imposition of tariffs revealed soft cost benefits, making U.S. production cheaper and allowing for quicker responses to consumer demand [7][9]. - The percentage of U.S. components in Byrna's latest launcher increased from 34% to 92% following the reshoring effort [11]. - Although there was a slight increase in production costs, Byrna's profit margins remained stable, with a decrease from 62% to approximately 60.5-61% [12]. Group 3: Strategic Supply Chain Management - Byrna continues to source some components from offshore suppliers to maintain redundancy and guard against potential vulnerabilities in domestic production [13]. - The overall supply chain now consists of 80%-90% domestically-sourced components, enhancing the company's operational resilience [13].

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] - For the 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] - 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] - Adjusted EBITDA for Q4 2025 totaled $6 million, compared to $5 million in Q4 2024, bringing the full year adjusted EBITDA to $16.8 million, up from $11.5 million in the prior year [10] Business Line Data and Key Metrics Changes - Brick-and-mortar sales increased from $15.2 million in fiscal year 2024 to $31 million in fiscal year 2025, representing over 100% growth [13] - Chain store sales were a significant contributor, expanding from around 200 locations at the start of 2025 to approximately 900 by year-end [14] - International sales generated 66% growth from the prior year, while direct-to-consumer channels grew by 18.4% [22] Market Data and Key Metrics Changes - Byrna's brick-and-mortar dealers accounted for 26.7% of sales in 2025, up from 17.7% in 2024, indicating a strong growth segment [21] - Amazon.com sales grew by 46.9% year-over-year, now accounting for 28.6% of direct-to-consumer sales, up from 23.2% last year [23] Company Strategy and Development Direction - The company is transitioning 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, aiming for approximately 2,000 locations in 2026 [18] - The introduction of new products, including the Byrna Cam and modular launchers, is expected to enhance user experience and drive growth [36][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong top-line growth and expanding profitability in fiscal 2026, with expectations for gross margins to improve [37][41] - The company anticipates a favorable product mix and manufacturing efficiencies to contribute to margin expansion [41] - Byrna aims to maintain a growth rate and EBITDA margins that exceed the Rule of 40 threshold [39] Other Important Information - The company entered into a $20 million credit facility with Texas Capital Bank to support strategic growth initiatives [11] - Management is actively seeking strategic acquisition opportunities to further enhance product development and market reach [38] 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 a strong value proposition for consumers [48][49] 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 [60] - Revenue guidance was not provided, but the company expects to remain in growth mode [61] Question: Contribution of growth from existing and new retail partners - The company anticipates growth from both expanding existing relationships and onboarding new partners, with a focus on optimizing product and inventory support [76]