Byrna Technologies Inc.
For the period ended Aug 31, 2025. Filed Oct 9, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Aug 31, 2025 · Filed Oct 9, 2025
BYRN$3.83+2.4%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-05-31; filed 2025-07-10.
0001437749-25-022479
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-08-31; filed 2025-10-09.
0001437749-25-030736
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 71 previous paragraphs and 71 current paragraphs.
49 unchanged; 20 reworded; 2 added; 2 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 3 previous and 3 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (2)
Current report
Nine months ended August 31, 2025 as compared to nine months ended August 31, 2024:
Current report
Non-cash activity includes stock-based compensation expense of $2.3 million for the nine months ended August 31, 2025, compared to $2.6 million for the nine months ended August 31, 2024; depreciation and amortization expense of $1.6 million for the nine months ended August 31, 2025, compared to $1.1 million for the nine months ended August 31, 2024; and a loss on disposal of fixed assets of $0.6 million for the nine months ended August 31, 2025 compared to less than $0.1 million for the nine months ended August 31, 2024. In addition to the non-cash activities mentioned above, the Company recognized a deferred tax asset of $1.7 million for the nine months ended August 31, 2025, compared to less than $0.1 million for the nine months ended August 31, 2024.
Removed paragraphs (2)
Previous report
Six months ended May 31, 2025 as compared to six months ended May 31, 2024:
Previous report
Non-cash activity includes stock-based compensation expenses of $1.6 million for the six months ended May 31, 2025, compared to $1.8 million for the six months ended May 31, 2024; depreciation and amortization expense of $1.0 million for the six months ended May 31, 2025 compared to $0.7 million for the six months ended May 31, 2024.
Reworded paragraphs (20)
Previous wording
The Company presents revenue net of returns, allowances, and discounts. Net revenues were $28.5 million in the second fiscal quarter of 2025 which represents an increase of $8.2 million, or 40.6%, as compared to the prior year period revenues of $20.3 million. Most of the increase in revenue can be attributed to a new marketing strategy, implemented in September of 2023, shifting advertising efforts away from social media platforms and towards celebrity endorsers. Direct to customer sales, via Amazon and our website, increased by $1.8 million, or 12.2%, from $14.8 million in the second fiscal quarter of 2024 to $16.6 million in the same fiscal quarter of 2025. Sales to domestic dealers and retailers also improved, increasing by 121.1% to $8.4 million from $3.8 million in the three months ended May 31, 2024. Sales to international markets, including Canada, increased from $1.7 million in the three months ended May 31, 2024 to $2.8 million in the three months ended May 31, 2025. In addition, the Company recognized $0.8 million in royalty revenue related to the LATAM Licensing Agreement during the second fiscal quarter of 2025.
Current wording
The Company presents revenue net of returns, allowances, and discounts. Net revenues were $28.2 million in the second fiscal quarter of 2025 which represents an increase of $7.3 million, or 35.1%, as compared to the prior year period revenues of $20.9 million. Most of the increase in revenue can be attributed to a new marketing strategy, implemented in September of 2023, shifting advertising efforts away from social media platforms and towards celebrity endorsers. Direct to customer sales, via Amazon and our website, increased by $0.2 million, or 1.4%, from $16.1 million in the third fiscal quarter of 2024 to $16.3 million in the same fiscal quarter of 2025. Sales to domestic dealers and retailers also improved in the three months ended August 31, 2025, increasing by 155.2% to $8.7 million from $3.4 million in the three months ended August 31, 2024. Sales to international markets, including Canada, increased from $1.3 million in the three months ended August 31, 2024 to $2.9 million in the three months ended August 31, 2025. In addition, the Company recognized $0.3 million in royalty revenue related to the LATAM Licensing Agreement during the third fiscal quarter of 2025.
Previous wording
Cost of goods sold was $10.9 million in the second fiscal quarter of 2025 compared to $7.7 million in the prior year period. This increase of $3.2 million, or 41.9%, is primarily due to the increase in sales volumes.
Current wording
Cost of goods sold was $11.3 million in the second fiscal quarter of 2025 compared to $7.8 million in the prior year period. This increase of $3.5 million, or 44.9%, is primarily due to the increase in sales volumes.
Previous wording
Gross profit is calculated as total revenue less cost of goods sold and gross margin is calculated as gross profit divided by total revenue. Included as cost of goods sold are costs associated with the production and procurement of products, such as labor and overhead, inbound freight costs, manufacturing depreciation, purchasing and receiving costs, and inspection costs. Gross profit was $17.6 million in the second fiscal quarter of 2025, or 61.6% of net revenue, as compared to gross profit of approximately $12.6 million, or 62.0% of net revenue, in the prior year period. The decrease was primarily due to a shift in sales channel mix as a larger proportion of sales were generated through wholesale channels, which typically carry lower gross margins than our higher-margin ecommerce sales.
Current wording
Gross profit is calculated as total revenue less cost of goods sold and gross margin is calculated as gross profit divided by total revenue. Included as cost of goods sold are costs associated with the production and procurement of products, such as labor and overhead, inbound freight costs, manufacturing depreciation, purchasing and receiving costs, and inspection costs. Gross profit was $16.9 million in the third fiscal quarter of 2025, or 60.1% of net revenue, as compared to gross profit of approximately $13.0 million, or 62.4% of net revenue, in the prior year period. The decrease was primarily due to a shift in sales channel mix as a larger proportion of sales were generated through wholesale channels, which typically carry lower gross margins than our higher-margin ecommerce sales.
Previous wording
Operating expenses were $14.2 million in the second fiscal quarter of 2025, an increase of $3.6 million, as compared to the prior year period expenses of $10.6 million. The increase is due to an increase of $1.3 million in marketing expenses, an increase of $0.7 million in variable expenses, which increase in proportion to sales volume, an increase of $1.0 million in employee compensation costs.
Current wording
Operating expenses were $14.1 million in the third fiscal quarter of 2025, an increase of $1.9 million, as compared to the prior year period expenses of $12.2 million. The increase is due to an increase of $0.8 million in marketing expenses, an increase of $0.8 million in variable expenses, which increase in proportion to sales volume, an increase of $0.3 million in employee compensation costs.
Previous wording
We recorded $0.1 million of foreign currency transaction loss during the three months ended May 31, 2025 compared to $0.2 million during the three months ended May 31, 2024. We recorded $0.1 million of interest income during the three months ended May 31, 2025 compared to $0.3 million in the three months ended May 31, 2024.
Current wording
We recorded $0.1 million of foreign currency transaction loss during the three months ended August 31, 2025 compared to $0.1 million during the three months ended August 31, 2024. We recorded $0.1 million of interest income during the three months ended August 31, 2025 compared to $0.3 million in the three months ended August 31, 2024.
Previous wording
For the three months ended May 31, 2025 and May 31, 2024, we recorded $0.9 million anda nominal amountof income tax expense, respectively. For the three months ended May 31, 2025 and May 31, 2024, the effective tax rate was 23.3% and 0.1%, respectively. Our tax rate differs from the statutory rate of 21.0% due to the effects of state taxes net of federal benefit, the foreign tax rate differential as a result of Byrna South Africa, effects of permanent non-deductible expenses, and other effects.
Current wording
For the three months ended August 31, 2025 and August 31, 2024, we recorded $0.6 million anda nominal amountof income tax expense, respectively. For the three months ended August 31, 2025 and August 31, 2024, the effective tax rate was 20.56% and 0.1%, respectively. Our tax rate differs from the statutory rate of 21.0% due to the effects of state taxes net of federal benefit, the foreign tax rate differential as a result of Byrna South Africa, effects of permanent non-deductible expenses, and other effects.
Previous wording
Net income was $2.4 million for the three months ended May 31, 2025, an improvement of $0.3 million compared to $2.1 million for the three months ended May 31, 2024.
Current wording
Net income was $2.2 million for the three months ended August 31, 2025, an improvement of $1.2 million compared to $1.0 million for the three months ended August 31, 2024.
Previous wording
The Company presents revenue net of returns, allowances, and discounts. Net revenues were $54.7 million in the six months ended May 31, 2025 which represents an increase of $17.8 million, or 48.1%, as compared to the prior year period revenues of $36.9 million. Most of the increase in revenue can be attributed to a new marketing strategy, implemented in September of 2023, shifting advertising efforts away from social media platforms and towards celebrity endorsers. Direct to customer sales, via Amazon and our website, which increased by $8.5 million, or 30.9%, from $27.5 million in the first half of 2024 to $36.0 million in the first half of 2025. Sales to domestic dealers and retailers also improved, increasing by 103.1% to $12.9 million from $6.4 million in the six months ended May 31, 2024. Sales to international markets, including Canada, increased from $3.0 million in the six months ended May 31, 2024 to $5.0 million in the six months ended May 31, 2025. In addition, the Company recognized $0.8 million in royalty revenue related to the LATAM Licensing Agreement during the first half of 2025.
Current wording
The Company presents revenue net of returns, allowances, and discounts. Net revenues were $82.9 million in the nine months ended August 31, 2025 which represents an increase of $25.1 million, or 43.4%, as compared to the prior year period revenues of $57.8 million. Most of the increase in revenue can be attributed to a new marketing strategy, implemented in September of 2023, shifting advertising efforts away from social media platforms and towards celebrity endorsers. Direct to customer sales, via Amazon and our website, which increased by $7.7 million, or 17.3%, from $44.4 million in the nine months ended August 31, 2024 to $52.1 million in the nine months ended August 31, 2025. Sales to domestic dealers and retailers also improved, increasing by 122.4% to $21.8 million from $9.8 million in the nine months ended August 31, 2024. Sales to international markets, including Canada, increased from $3.6 million in the nine months ended August 31, 2024 to $7.9 million in the nine months ended August 31, 2025. In addition, the Company recognized $1.1 million in royalty revenue related to the LATAM Licensing Agreement during the nine months ended August 31, 2025.
Previous wording
Cost of goods sold was $21.2 million in the first half of 2025 compared to $14.7 million in the prior year period. This increase of $6.5 million, or 44.0%, is primarily due to the increase in sales volumes.
Current wording
Cost of goods sold was $32.5 million in the nine months ended August 31, 2025, compared to $22.6 million in the prior year period. This increase of $9.9 million, or 43.9%, is primarily due to the increase in sales volumes.
Previous wording
Gross profit is calculated as total revenue less cost of goods sold and gross margin is calculated as gross profit divided by total revenue. Included as cost of goods sold are costs associated with the production and procurement of products, such as labor and overhead, inbound freight costs, manufacturing depreciation, purchasing and receiving costs, and inspection costs. Gross profit was $33.5 million in the first half of 2025, or 61.2%of net revenue, as compared to gross profit of approximately $22.2 million, or 60.1% of net revenue, in the prior year period. The majority of the increase was driven by volume, resulting from heightened demand linked to marketing initiatives and channel growth. This was further supported by higher absorption of fixed costs due to increased production volume and a reduced reliance on price discounts for sales promotions.
Current wording
Gross profit is calculated as total revenue less cost of goods sold and gross margin is calculated as gross profit divided by total revenue. Included as cost of goods sold are costs associated with the production and procurement of products, such as labor and overhead, inbound freight costs, manufacturing depreciation, purchasing and receiving costs, and inspection costs. Gross profit was $50.4 million in the nine months ended August 31, 2025, or 60.8% of net revenue, as compared to gross profit of approximately $35.2 million, or 60.9% of net revenue, in the prior year period. The decrease was primarily due to a shift in sales channel mix as a larger proportion of sales were generated through wholesale channels, which typically carry lower gross margins than our higher-margin ecommerce sales.
Previous wording
Operating expenses were $28.5 million in the first half of 2025, an increase of $8.0 million, as compared to the prior year period expenses of $20.5 million. The increase is due to an increase of $2.5 million in marketing expenses, an increase of $1.9 million in variable expenses, which increase in proportion to sales volume, an increase of $2.2 million in employee compensation costs.
Current wording
Operating expenses were $42.5 million in the nine months ended August 31, 2025, an increase of $9.9 million, as compared to the prior year period expenses of $32.6 million. The increase is due to an increase of $3.3 million in marketing expenses, an increase of $2.7 million in variable expenses, which increase in proportion to sales volume, and an increase of $2.4 million in employee compensation costs.
Previous wording
We recorded $0.2 million of foreign currency transaction loss during the first half of 2025 compared to $0.3 million during the first half of 2024. We recorded $0.3 million of interest income during the six months ended May 31, 2025 compared to $0.6 million in the six months ended May 31, 2024.
Current wording
We recorded $0.3 million of foreign currency transaction loss during the nine months ended August 31, 2025, compared to $0.4 million during the nine months ended August 31, 2024. We recorded $0.4 million of interest income during the nine months ended August 31, 2025, compared to $0.9 million in the nine months ended August 31, 2024.
Previous wording
For the six months ended May 31, 2025 and May 31, 2024, we recorded $1.0 million and$0.01 millionof income tax expense, respectively. For the six months ended May 31, 2025 and May 31, 2024, the effective tax rate was 17.2% and 0.2%, respectively. Our tax rate differs from the statutory rate of 21.0% due to the effects of state taxes net of federal benefit, the foreign tax rate differential as a result of Byrna South Africa, effects of permanent non-deductible expenses, and other effects.
Current wording
For the nine months ended August 31, 2025 and August 31, 2024, we recorded $1.7 million of income tax expense and$0.1 millionof income tax benefit, respectively. For the nine months ended August 31, 2025 and August 31, 2024, the effective tax rate was 18.3% and 0.2%, respectively. Our tax rate differs from the statutory rate of 21.0% due to the effects of state taxes net of federal benefit, the foreign tax rate differential as a result of Byrna South Africa, effects of permanent non-deductible expenses, and other effects.
Previous wording
Net income was $4.1 million for the six months ended May 31, 2025, an improvement of $2.0 million compared to $2.1 million for the six months ended May 31, 2024.
Current wording
Net income was $6.3 million for the nine months ended August 31, 2025, an improvement of $3.2 million compared to $3.1 million for the nine months ended August 31, 2024.
Previous wording
Cash and cash equivalents as of May 31, 2025 totaled $7.0 million, a decrease of $9.8 million from $16.8 million of cash and cash equivalents as of November 30, 2024.
Current wording
Cash and cash equivalents as of August 31, 2025 totaled $6.5 million, a decrease of $10.3 million from $16.8 million of cash and cash equivalents as of November 30, 2024.
Previous wording
Cash used in operating activities was $9.2 million for the six months ended May 31, 2025 compared to cash provided by operations of $5.9 million during the prior year period. Net income was $4.1 million compared to $2.1 million for the six months ended May 31, 2025 and May 31, 2024, respectively. Significant changes in noncash and working capital activity are as follows:
Current wording
Cash used in operating activities was $11.5 million for the nine months ended August 31, 2025 compared to cash provided by operations of $4.5 million during the prior year period. Net income was $6.3 million compared to $3.1 million for the nine months ended August 31, 2025 and August 31, 2024, respectively. Significant changes in noncash and working capital activity are as follows:
Previous wording
Inventory increased during the six months ended May 31, 2025 by $12.3 million compared to a increase of $1.6 million for the six months ended May 31, 2024. Accounts receivable increased by $3.9 million during the six months ended May 31, 2025 as compared to a decrease of $1.3 million for the six months ended May 31, 2024. Accounts payable and accrued liabilities increased during the six months ended May 31, 2025 by $1.3 million compared to a decrease of $3.0 million for the six months ended May 31, 2024. Prepaid expenses and other current assets increased by $0.6 million during the six months ended May 31, 2025 compared to an increase of $0.9 million during the six months ended May 31, 2024. Operating lease liabilities decreased by $0.2 million during the six months ended May 31, 2025 compared to a decrease of $0.4 million during the six months ended May 31, 2024. Deferred revenues decreased $1.5 million during the six months ended May 31, 2025 compared to a decrease of $0.5 million for the six months ended May 31, 2024.
Current wording
Inventory increased during the nine months ended August 31, 2025 by $14.1 million compared to a increase of $5.9 million for the nine months ended August 31, 2024. Accounts receivable increased by $6.2 million during the nine months ended August 31, 2025 as compared to a decrease of $0.8 million for the nine months ended August 31, 2024. Accounts payable and accrued liabilities decreased during the nine months ended August 31, 2025 by $0.4 million compared to an increase of $5.0 million for the nine months ended August 31, 2024. Prepaid expenses and other current assets increased by $1.9 million during the nine months ended August 31, 2025 compared to an increase of $1.2 million during the nine months ended August 31, 2024. Operating lease liabilities decreased by $0.4 million during the nine months ended August 31, 2025 compared to a decrease of $0.5 million during the nine months ended August 31, 2024. Deferred revenues decreased $1.5 million during the nine months ended August 31, 2025 compared to a decrease of $1.1 million for the nine months ended August 31, 2024.
Previous wording
Cash used in investing activities was $0.6 million for the six months ended May 31, 2025 compared to $0.7 million for the six months ended May 31, 2024. The prior year period investing activities primarily relates to the purchases of property and equipment while the current period relates to purchases of property and equipment, acquisition of Federal Firearms Licenses, and proceeds from sale of marketable securities. Property and equipment increased during the six months ended May 31, 2025 by $3.6 million compared to a decrease of $0.7 million for the six months ended May 31, 2024. Marketable debt securities decreased during the six months ended May 31, 2025 by $2.9 million. There were no marketable debt securities held during the same period in the prior year. Capital expenditures were higher than typical in the first half of the fiscal year due to the build out of retail stores and new ammunition manufacturing facility. Capital expenditures are expected to decrease in the third and fourth quarters of the current fiscal year.
Current wording
Cash provided by investing activities was $0.6 million for the nine months ended August 31, 2025 compared to $1.4 million cash used for the nine months ended August 31, 2024. The prior year period investing activities primarily relates to the purchases of property and equipment while the current period relates to purchases of property and equipment, acquisition of Federal Firearms Licenses, and proceeds from sale of marketable securities. Property and equipment increased during the nine months ended August 31, 2025 by $4.6 million compared to an increase of $1.4 million for the nine months ended August 31, 2024. Proceeds from the sale of property and equipment during the nine months ended August 31, 2025, was $0.1 million compared to less than $0.1 million for the nine months ended August 31, 2024. Marketable debt securities decreased during the nine months ended August 31, 2025 by $6.4 million. There were no marketable debt securities held during the same period in the prior year. Capital expenditures were higher than typical in the first half of the fiscal year due to the build out of retail stores and new ammunition manufacturing facility. Capital expenditures are expected to decrease in the fourth quarter of the current fiscal year.
Previous wording
Cash provided by financing activities was $0.1 million for the six months ended May 31, 2025 compared to cash used in financing activities of $0.9 million for the six months ended May 31, 2024. The current year amount was primarily composed of proceeds from stock option exercises of $0.2 million, taxes paid on issuances of restricted stock units of $0.1 million, and payments of $0.05 million for repurchases of common stock. The prior year amount was primarily composed of proceeds from stock option exercises of $0.1 million, stock repurchases of $0.3 million and taxes paid on issuances of restricted stock units of $0.8 million.
Current wording
Cash provided by financing activities was $0.1 million for the nine months ended August 31, 2025 compared to cash used in financing activities of $3.9 million for the nine months ended August 31, 2024. The current year amount was primarily composed of proceeds from stock option exercises of $0.3 million, taxes paid on issuances of restricted stock units of $0.1 million, and payments of $0.1 million for repurchases of common stock. The prior year amount was primarily composed of proceeds from stock option exercises of $0.1 million, stock repurchases of $3.2 million and taxes paid on issuances of restricted stock units of $0.8 million.
Previous wording
Our unaudited condensed consolidated financial statements are based on the selection and application of significant accounting policies, which require management to make significant estimates and assumptions. Our significant accounting policies are outlined in Note 4, “Summary of Significant Accounting Policies,” in the Notes to Consolidated Financial Statements included in Item 8 of the 2024 10-K. During the three and six months ended May 31, 2025, there were no significant changes to our critical accounting policies from those described in our 2024 10-K.
Current wording
Our unaudited condensed consolidated financial statements are based on the selection and application of significant accounting policies, which require management to make significant estimates and assumptions. Our significant accounting policies are outlined in Note 4, “Summary of Significant Accounting Policies,” in the Notes to Consolidated Financial Statements included in Item 8 of the 2024 10-K. During the three and nine months ended August 31, 2025, there were no significant changes to our critical accounting policies from those described in our 2024 10-K.