• Net Revenue: $26.2 million for Q1 2025, a 57% increase from $16.7 million in Q1 2024.
• Gross Profit: $15.9 million or 61% of net revenue, up from $9.6 million or 58% in Q1 2024.
• Operating Expenses: $14.2 million, up from $9.8 million in Q1 2024.
• Net Income: $1.7 million, compared to $17,000 in Q1 2024.
• Adjusted EBITDA: $2.8 million, up from $1.2 million in Q1 2024.
• Cash, Cash Equivalents, and Marketable Securities: $19.3 million as of February 28, 2025, down from $25.7 million at November 30, 2024.
• Inventory: $23.2 million as of February 28, 2025, compared to $20 million at November 30, 2024.
• Amazon Sales: Represented 26.9% of total US DTC sales in Q1 2025, up from 19.3% in Q1 2024.
• Store Expansion: 13 new store-within-a-store locations at Sportsman's Warehouse and 41 additional stores with Byrna point-of-sale displays.
• New Retail Stores: Opened in Scottsdale, Arizona; Franklin, Tennessee; and Salem, New Hampshire.
• Compact Launcher Production: Began serial production on March 19, 2025, with a production rate of 1,000 launchers per day.

• Warning! GuruFocus has detected 5 Warning Sign with RELL.

Release Date: April 10, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Byrna Technologies Inc (NASDAQ:BYRN) reported a 57% year-over-year increase in net revenue for Q1 2025, reaching $26.2 million, driven by sales momentum, channel expansion, and broader brand adoption.
• Gross profit for Q1 2025 improved to 61% of net revenue, up from 58% in Q1 2024, due to efforts in designing for manufacturability and increased production volumes.
• The company achieved a significant increase in net income, reporting $1.7 million for Q1 2025 compared to $17,000 in Q1 2024, primarily due to increased product sales.
• Byrna Technologies Inc (NASDAQ:BYRN) successfully launched three new retail stores and expanded its partnership with Sportsman's Warehouse, enhancing its retail presence and customer engagement.
• The company has strategically positioned itself to mitigate the impact of tariffs by moving its supply chain to the US, achieving 87% to 92% US content in its products, which helps avoid significant cost increases.

Negative Points

• Operating expenses for Q1 2025 increased to $14.2 million from $9.8 million in Q1 2024, driven by higher variable selling expenses, discretionary marketing spend, and increased payroll costs.
• Cash, cash equivalents, and marketable securities decreased to $19.3 million at the end of Q1 2025 from $25.7 million at the end of November 2024, reflecting planned inventory increases and seasonal working capital movements.
• The company anticipates a 16% increase in the cost of launchers due to moving the supply chain to the US, which could impact gross profit margins.
• Byrna Technologies Inc (NASDAQ:BYRN) faces challenges in maintaining foot traffic in its own branded stores, which affects sales conversion rates compared to partner stores like Sportsman's Warehouse.
• The company is transitioning into full taxpayer status in 2025, with an expected effective tax rate of approximately 23%, which could impact net income.

Q & A Highlights

Q: Can you provide more details on the Q2 early sales trend data and how you plan to manage ad spend, especially with the new CL launcher? A: Bryan Ganz, CEO: Our Return on Advertising Spend (ROAS) is typically lower at the start of the year, with Q1 in the mid-3s. We don't anticipate needing much advertising for the CL launch, as we have over 700,000 opt-in email subscribers. We'll focus on selling the CL to our existing customer base initially, reducing ad spend until August. We'll ramp up advertising as we approach the profitable Q4 period.

Q: Could you outline the rollout sequence for the new CL launcher? A: Bryan Ganz, CEO: We aim to have 25,000 to 30,000 units ready before release due to high demand. Dealer orders start today, with 10,000 units allocated to them. Shipments to dealers begin April 21, and preorders start April 17. We'll accept online orders from April 24, with the official release on May 1.

Q: Do you think Q1 was the low point in revenues for the year? A: Bryan Ganz, CEO: Personally, I believe Q1 was the low point. We expect sequential growth each quarter, driven by the anticipated success of the CL launcher.

Q: How many Sportsman's Warehouse shop-in-shops are operational, and what are the learnings compared to your branded stores? A: Lauri Kearnes, CFO: Currently, one store is operational, with 13 more by May 1. We need to see momentum and interest. Sportsman's has existing foot traffic, which helps drive sales. Having a Byrna expert in-store is crucial for engaging customers.

Q: What is the MSRP for the new CL compared to current products? A: Lauri Kearnes, CFO: The CL's base price is $549.99, compared to $479.99 for the LE and $379 for the SD.

Q: Will the new CL launcher have the same ammo margin, and what colors will it be available in? A: Bryan Ganz, CEO: The 61-caliber ammo is slightly smaller but priced the same as 68-caliber. Initially, the CL will be available in orange and black, with pink and other colors planned. The CL is customizable, allowing for various accessories and colors.

Q: Is the CO2 cartridge for the new CL the same as previous models? A: Bryan Ganz, CEO: Yes, the CL uses the same 8-gram CO2 cartridge as the SD model.

Q: How will the point-of-sale displays differ from the shop-in-shops? A: Bryan Ganz, CEO: The 13 shop-in-shops will have a dedicated Byrna shooting experience. The 41 point-of-sale displays will be kiosks with $8,000 of Byrna products, offering a shooting experience but without dedicated sales staff.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.