Overview

• US personal defense tech firm's fiscal Q2 revenue fell 43% yr/yr, missing analyst expectations

• Company posted a net loss for Q2, impacted by inventory write-downs and impairment charges

• Byrna took actions to align production with demand and improve cost efficiency

Outlook

• Byrna says fiscal 2026 will not be a revenue-growth year

• Company expects improvement in second half as retailers prepare for holidays

• Byrna aims to reduce inventory and improve working capital efficiency in 2026

Result Drivers

• WEAK E-COMMERCE AND RETAIL REORDERS - Co said Q2 revenue decline was driven by lower e-commerce sales and slower dealer and chain store reorders after heavy Q1 restocking and weak sell-through

• INVENTORY AND IMPAIRMENT CHARGES - Q2 results included a $5.9 mln inventory write-down and $3.5 mln equipment impairment, mainly tied to the shutdown of in-house ammunition manufacturing and product rationalization

• PRODUCTION AND COST ALIGNMENT - Co reduced launcher assembly lines and exited in-house ammo manufacturing to better match production with demand and improve cost efficiency

Company press release: ID:nGNX2srwb2

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q2 Revenue	Miss	$16.4 mln	$22.31 mln (4 Analysts)
Q2 EPS		-$0.44

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the aerospace & defense peer group is "buy"

• Wall Street's median 12-month price target for Byrna Technologies Inc is $13.75, about 131.5% above its July 8 closing price of $5.94

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 16 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.