Financial Data and Key Metrics Changes - Net revenue for Q3 2025 was $28.2 million, a 35% increase from $20.9 million in Q3 2024, driven by strong chain store and dealer sales [4][5] - Gross profit for Q3 2025 was $16.9 million, or 60% of net revenue, compared to $13 million, or 62% of net revenue for Q3 2024 [4][5] - Net income for Q3 2025 was $2.2 million, up from $1 million in Q3 2024, attributed to increased product sales [5] - Adjusted EBITDA totaled $3.7 million, up from $1.9 million for Q3 2024 [6] - Cash and cash equivalents totaled $9 million at August 31, 2025, down from $25.7 million at November 30, 2024, reflecting seasonal working capital timing [6] Business Line Data and Key Metrics Changes - The Byrna SD launcher accounts for about 50% of sales, while the Byrna Compact Launcher represents around 30% of sales [15] - Operating expenses for Q3 2025 were $14.1 million, compared to $12.2 million for Q3 2024, driven by increased selling expenses and marketing investments [5] Market Data and Key Metrics Changes - The company expanded its retail presence to over 1,000 stores nationwide, contributing to increased brand awareness and sales [11] - Average daily web sessions on Byrna.com increased from 33,000 to over 50,000, with September averaging 58,000 sessions per day [8][9] Company Strategy and Development Direction - The company is focusing on expanding its product offerings beyond less lethal weapons, integrating SOS alert capabilities with its launchers and sprays [17][19] - Plans to introduce a value-oriented 61-caliber launcher in 2026 to target budget-minded consumers [23] - The company aims to enhance its retail model and explore flagship markets for potential new stores [14] Management's Comments on Operating Environment and Future Outlook - Management expects full-year fiscal 2025 revenue growth to be between 35% and 40%, supported by strong sales momentum and holiday shopping [25] - The company anticipates that inventory levels will normalize after the peak season [7] - Management is optimistic about the potential for sustained multi-year growth, leveraging new advertising programs and expanded retail footprint [26] Other Important Information - The company has no current or long-term debt, and accounts receivable increased to $8.9 million, driven by higher dealer sales [6] - Inventory at August 31, 2025, totaled $34.1 million, reflecting strategic builds ahead of the holiday season [7] Q&A Session Summary Question: Thoughts on adding new influencers - The company has expanded its celebrity influencer campaign and is looking to bring on new brand ambassadors to reach a broader demographic [30] Question: Update on the lower price point unit - The next new launcher will be a value-oriented 61-caliber launcher, expected to launch next year, but the basic box configuration has not been as popular as anticipated [32] Question: ByrnaCare adoption status - ByrnaCare adoption is in line with expectations, with plans to enhance website integration for better sales [34] Question: Advertising campaign success and conversion rates - The company is seeing increased web traffic but acknowledges that conversion rates will take time to catch up [40][42] Question: Channel mix expectations for Q4 - Strong dealer and chain store sales are expected to continue, with DTC channels anticipated to be a higher percentage of overall sales [43] Question: Expense leverage in the model - The company expects to maintain expense leverage, although some additional marketing expenses will be incurred in Q4 [45] Question: Update on wholesale expansion - The company is focused on optimizing existing retail partnerships rather than aggressively expanding the number of stores [54][55] Question: Timeline for SOS alert technology - The connected safety platform is expected to be commercially available next year, with phased releases of various products [57]

Byrna Technologies (NasdaqCM:BYRN) Q3 2025 Earnings Call October 09, 2025 09:00 AM ET Company ParticipantsLauri Kearnes - CFOBryan Ganz - CEOConference Call ParticipantsMatt Koranda - AnalystJon Hickman - AnalystJeremy Hamblin - AnalystJeff Van Sinderen - AnalystOperatorGood morning. Welcome to Byrna's Fiscal Third Quarter 2025 earnings conference call. My name is Donna, and I will be your operator for today's call. Joining us for today's presentation are the company's CEO, Bryan Ganz, and CFO, Lauri Kearne ...

Financial Data and Key Metrics Changes - Net revenue for Q3 2025 was $28.2 million, a 35% increase from $20.9 million in Q3 2024, driven by strong chain store and dealer sales [4][5] - Gross profit for Q3 2025 was $16.9 million, or 60% of net revenue, compared to $13 million, or 62% of net revenue for Q3 2024 [4][5] - Net income for Q3 2025 was $2.2 million, up from $1 million in Q3 2024, attributed to increased product sales [5] - Adjusted EBITDA totaled $3.7 million, up from $1.9 million in Q3 2024 [6] - Cash and cash equivalents at August 31, 2025, totaled $9 million, down from $25.7 million at November 30, 2024, reflecting seasonal working capital timing [6] Business Line Data and Key Metrics Changes - The Byrna SD launcher accounts for about 50% of sales, while the Byrna Compact Launcher represents around 30% of sales [15] - The company has expanded its retail presence to over 1,000 stores nationwide, contributing to increased sales [11] - Company-owned stores achieved an average annualized run rate of $725,000 in September [12] Market Data and Key Metrics Changes - The advertising campaign led to a significant increase in web traffic, with average daily sessions on Byrna.com rising from 33,000 to over 50,000 [8][10] - The company has seen a 70% increase in web traffic sequentially, with expectations for improved conversion rates as customer engagement grows [35][36] Company Strategy and Development Direction - The company is focusing on expanding its product offerings beyond less lethal weapons, integrating SOS alert capabilities and connected safety solutions [17][20] - Plans include launching a value-oriented 61-caliber launcher and a simplified protection device in 2026 to reach budget-minded consumers [23][24] - The company aims to enhance customer engagement and create recurring revenue streams through new technology-driven products [20][26] Management's Comments on Operating Environment and Future Outlook - Management expects full-year fiscal 2025 revenue growth to be between 35% and 40%, supported by strong sales momentum and holiday shopping [25] - The company is confident in its ability to penetrate a large and expanding market, laying the groundwork for sustained multi-year growth [26] Other Important Information - The company has no current or long-term debt, and accounts receivable increased to $8.9 million due to higher dealer sales [6][7] - Inventory at August 31, 2025, totaled $34.1 million, reflecting strategic builds ahead of the holiday season [7] Q&A Session Summary Question: Thoughts on adding new influencers - The company is expanding its celebrity influencer campaign beyond conservative radio hosts and is working on a plan with a new director with experience at Nike [30][31] Question: Update on new product launches - The next new launcher will be a value-oriented 61-caliber launcher, expected next year, while the basic box configuration has not been as popular as anticipated [32] Question: ByrnaCare adoption - ByrnaCare adoption is in line with expectations, with plans to enhance website integration for better customer engagement [33] Question: Advertising campaign success and conversion rates - The company is seeing a climb in conversion rates but acknowledges that it takes time for new web traffic to convert into sales [35][36] Question: Wholesale expansion and retail footprint - The company plans to maintain its current retail footprint while focusing on enhancing existing relationships with partners [49][50]

Core Viewpoint - Both Arm Holdings plc (ARM) and Byrna Technologies Inc. (BYRN) are positioned as innovation-driven companies appealing to growth-oriented investors interested in disruptive technologies [1][2]. Group 1: Arm Holdings (ARM) - Arm Holdings is a leader in semiconductor design, particularly in mobile devices, with a strong focus on low-power architecture that has been essential for smartphones and tablets [3][4]. - The company is well-positioned to benefit from the growth of AI and IoT, as ARM-powered chips are increasingly integrated into smart devices and data centers, addressing the computational needs of AI workloads [4]. - Arm's unique licensing and royalty-based business model allows it to generate steady revenue without significant capital expenditure, maintaining relevance in key sectors like automotive and data centers [5]. - Following its IPO, Arm Holdings strengthened its balance sheet with $2.7 billion in cash and no debt, enhancing its ability to invest in R&D and strategic acquisitions [6]. - The Zacks Consensus Estimate for ARM's fiscal 2025 indicates a year-over-year sales growth of 24% and EPS growth of 28% [13]. Group 2: Byrna Technologies (BYRN) - Byrna has established itself as a leader in the non-lethal personal defense market, achieving significant brand visibility through innovative marketing strategies, including celebrity endorsements [7]. - In fiscal 2024, Byrna reported a 79% year-over-year sales increase in the fourth quarter, with net income turning from a loss of $0.8 million to a profit of $9.7 million [8]. - The company is ramping up production for its new Compact Launcher, with a 33% increase in production to 24,000 units per month to meet rising demand [9]. - Byrna is expanding its omnichannel strategy and enhancing its presence in Latin America through partnerships with law enforcement, including a training program in Mexico [10][11]. - The Zacks Consensus Estimate for BYRN's fiscal 2025 indicates a year-over-year sales growth of 30% and EPS growth of 13% [16]. Group 3: Valuation and Investment Outlook - Arm Holdings is trading at a forward earnings multiple of 49.31X, which is below its 12-month median of 127.41X, while Byrna's forward earnings multiple stands at 54.26X, also below its median of 96.9X [18]. - Byrna is rated as a Buy due to rapid revenue growth, a turnaround to profitability, and aggressive expansion, while Arm is rated a Hold due to flat analyst revisions and a more mature growth curve [19][20].