This stock is one of several featured in our latest research. For more small-cap opportunities with asymmetric return potential, read our free article: 10 High-Potential Small-Caps With Market Cap Under $1B. We came across a bullish thesis on Byrna Technologies Inc. on Shareholdersunite Essentials’s Substack by Shareholdersunite. In this article, we will summarize the bulls’ thesis on BYRN. Byrna Technologies Inc.'s share was trading at $22.60 as of October 3rd. BYRN’s trailing and forward P/E were 35.32 ...

Core Viewpoint - Byrna Technologies Inc. is experiencing strong momentum heading into the holiday fourth quarter, driven by an expanding retail presence and a significant increase in web traffic, leading to a projected revenue increase for the fiscal third quarter of 2025 [1][2]. Financial Performance - Byrna expects total revenue for the fiscal third quarter of 2025 to be $28.2 million, a 35% increase from $20.9 million in the same quarter of 2024 [2]. - The growth was primarily driven by strong dealer and chain store sales, with year-over-year gains in every business segment [2]. - Despite the third quarter typically being a seasonally lighter period for personal security products, Byrna's expanding retail footprint and international growth contributed to the sales increase [2]. Sales Channels - Sales performance by channel for Q3 2025 includes: - Web: $16.3 million, up 8% from $15.1 million in Q3 2024 - Byrna Chain Stores & Dealers: $7.9 million, up 147% from $3.2 million - Law Enforcement / Schools / Private Security: $0.1 million, new segment - Byrna Retail Stores: $0.7 million, up 250% from $0.2 million - International: $3.2 million, up 33% from $2.4 million - Total Sales: $28.2 million, up 35% from $20.9 million [6]. Marketing and E-commerce Growth - Byrna's innovative AI-supported marketing approach has significantly expanded consumer reach, leading to a notable sales spike in late August [3][4]. - Average daily sessions on Byrna.com increased from approximately 36,000 in July to about 52,000 in August, a 45% month-over-month increase [4]. - Average daily sessions on Amazon rose from about 15,000 in July to approximately 23,000 in August [4]. - The online conversion rate improved by 57% during the last ten days of August, reaching 0.9%, which contributed to a 47% increase in sales despite steady session averages [5]. Future Outlook - Byrna anticipates setting a new revenue record in Q4 2025, supported by high web traffic and product availability in over 1,000 chain store locations [6].

Core Insights - Byrna Technologies Inc. has achieved record web traffic with an average of over 50,000 daily sessions during the first 21 days of August, marking a 50% increase from the previous average of approximately 33,400 sessions per day [2][7] - The company's new AI-driven advertising campaign, "We Don't Sell Bananas," has garnered over 66 million views and has proven to be cost-effective, reducing the cost per visitor to $0.53 compared to $0.94 for the previous campaign, resulting in a 43% savings [3][6] - Increased web traffic has translated into a 31% rise in sales on Byrna.com for the first 21 days of August compared to the prior period, with expectations for further sales growth as conversion rates stabilize [7][8] Advertising Strategy - Byrna's proprietary AI-driven advertising process allows for rapid production of high-quality commercials, enabling the company to refresh content quickly and conduct A/B testing at scale [6][9] - The new advertising initiative is part of Byrna's broader brand-building strategy, aimed at enhancing brand visibility and tapping into the growing market for less-lethal personal security solutions [9][10] Market Impact - The significant increase in web traffic and sales indicates a positive market response to Byrna's innovative advertising approach, suggesting potential for sustained growth in customer acquisition and brand awareness [7][8] - The company is positioned to leverage its AI capabilities to adapt marketing strategies effectively, potentially leading to lower customer acquisition costs and broader distribution opportunities [6][8]

Core Insights - Byrna Technologies Inc. reported a record revenue of $28.5 million for Q2 2025, representing a 41% year-over-year growth from $20.3 million in Q2 2024, driven by the launch of the Compact Launcher (CL) and a 106% increase in dealer sales due to a partnership with Sportsman's Warehouse [1][3][9] Financial Performance - Net revenue for Q2 2025 was $28.5 million, up from $20.3 million in Q2 2024, marking a 41% increase [3] - Gross profit increased to $17.6 million, maintaining a gross margin of 62%, compared to $12.6 million in Q2 2024 [4] - Operating expenses rose to $14.2 million from $10.6 million in Q2 2024, primarily due to higher selling expenses and marketing costs [5] - Net income for Q2 2025 was $2.4 million, an increase from $2.1 million in Q2 2024 [5] - Adjusted EBITDA for Q2 2025 was $4.3 million, compared to $2.8 million in Q2 2024 [6] Cash and Inventory Management - Cash, cash equivalents, and marketable securities totaled $13.0 million as of May 31, 2025, down from $25.7 million at November 30, 2024, due to increased inventory ahead of the CL release [7] - Inventory at May 31, 2025, was $32.3 million, up from $20.0 million at November 30, 2024 [7] Operational Highlights - The launch of the Byrna CL in May contributed significantly to revenue growth, with expectations for it to become a larger part of the sales mix [8][14] - Dealer sales increased by 106% in Q2 2025, supported by the partnership with Sportsman's Warehouse, with plans to expand store-within-a-store locations [9][10] - Company-owned retail locations averaged $69,000 in sales during May, with the Scottsdale location performing exceptionally well shortly after opening [11] Marketing and Brand Expansion - The company has diversified its marketing strategy, including the addition of celebrity influencer Tucker Carlson to enhance brand awareness [12] - Integration of AI tools into content production is expected to improve marketing reach and efficiency [12] Production Adjustments - Production has been adjusted to align with current demand following the CL launch, with a steady output of 15,000 units per month [13]

Company Overview - Byrna has sold over 500,000 launchers in the last 5 years[18] - The company has over 500 dealer locations[18] - Byrna has 180 US employees[18] Market Opportunity - The US consumer market presents a total addressable market of $250 billion, divided between gun owners ($100 billion) and non-gun owners ($150 billion)[22] - The company is targeting a penetration of 5% of non-gun owners and 10% of gun owners, representing a potential market of approximately $17.5 billion[22] - The company has 285,000 unique e-commerce customers[20] Financial Performance - The company's revenue increased from $42.644 million in 2023 to $85.756 million in 2024[45] - Gross profit increased from $23.647 million in 2023 to $52.772 million in 2024[45] - The company achieved net income of $12.792 million in 2024, compared to a net loss of $8.192 million in 2023[45] - Adjusted EBITDA increased from a loss of $2.001 million in 2023 to a profit of $11.478 million in 2024, representing an Adjusted EBITDA margin of 13.4%[45] - Total DTC orders increased by 72% from $14.707 million in Q4 2023 to $25.289 million in Q4 2024[40] - Total revenue increased by 79% from $15.640 million in Q4 2023 to $27.979 million in Q4 2024[40] Growth Strategy - The company is expanding its retail presence with flagship stores, including locations in Scottsdale, AZ, Franklin, TN, and Salem, NH, with a Las Vegas store already generating over $1 million in revenue with a 30% contribution margin[43]