Byrna Technologies reported fiscal second quarter 2026 net revenue of $16.4 million and a net loss of $10.1 million for the three months ended May 31, 2026. Gross profit for the quarter was $1.8 million (11% margin), which included one-time charges; adjusted gross profit was reported at $10.1 million (approx. 62% adjusted margin). Adjusted EBITDA for the quarter was a loss of $0.6 million.

Financial Highlights

  • Revenue: Net revenue of $16.4 million for Q2 2026, down from $28.5 million in Q2 2025.
  • Gross profit: GAAP gross profit of $1.8 million (10.9% margin) for Q2 2026; adjusted gross profit of $10.1 million (approx. 61.8% adjusted margin) after excluding inventory write-downs, impairment and tariff refund adjustments.
  • Operating income: Loss from operations of $12.8 million for Q2 2026 (income from operations was $3.3 million in Q2 2025).
  • Net income (loss): GAAP net loss of $10.1 million for Q2 2026, compared with net income of $2.4 million in Q2 2025; the quarter included $10.4 million of non-cash impairment and inventory write-down charges and a $2.7 million tax benefit.
  • Adjusted EBITDA: Non-GAAP adjusted EBITDA of $(0.6) million for Q2 2026, versus $4.3 million in Q2 2025.

Business Highlights

  • Acquisition agreement: Entered into a binding agreement to acquire HERO Defense Systems, expanding product portfolio across additional price points and everyday-carry form factors.
  • Try-before-you-buy pilot: Launched and expanded a pilot demo program with early conversion rates of approximately 30% among participants, with most conversions occurring in the second week of two-week trials.
  • Site engagement and conversion: "Find the Right Launcher" tool generated over 150,000 responses since April; users of the tool converted at about twice the overall website conversion rate.
  • Operational realignment: Reduced launcher assembly from four lines to two and ceased in-house ammunition manufacturing to better align production with demand and reduce operating complexity.
  • Marketing and retail initiatives: Activated a Fox Sports media partnership via iHeartMedia, appointed HLK as agency of record, engaged Acceleration Partners for influencer and affiliate marketing, realigned sales and marketing functions, and initiated searches for dedicated retail and marketing leaders.

Original SEC Filing:

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