Byrna Technologies Reports Q3 Net Loss as Revenue Declines 46%

Byrna Technologies Inc. (BYRN) reported a net loss of $2.9 million for its fiscal third quarter ended August 31, 2026, swinging from a net income of $2.2 million in the same period last year. Net revenue dropped 46% year-over-year to $15.3 million, down from $28.2 million. Despite the revenue decline, the company's stock rose 9.76% to $4.05 in today's trading.

The revenue drop was primarily driven by lower e-commerce sales and slower reorder activity from dealers and retail chains, which had heavily restocked during the first quarter. However, the company improved its adjusted gross margin to approximately 65%, up from 60% in the prior year's quarter, by outsourcing ammunition manufacturing and shifting toward higher-margin products. A one-time $2.3 million tariff refund further boosted the reported gross margin to 79%.

Looking forward, the company is focusing on inventory reduction and cash generation, expecting inventory levels to normalize further during the upcoming holiday shopping season. Investors should watch the progress of new marketing initiatives, including a creator program with over 50 influencers, and the retail expansion led by newly appointed executives.