Byrna Technologies Inc. Q3 2026 Earnings Recap

Byrna shares rose 11.6% after earnings, with investors likely responding to improving adjusted gross margin and early signs of progress in conversion and marketing initiatives. That optimism comes against a sharp revenue decline and a swing to losses, with management acknowledging the business remains below its expected performance.

Key Takeaways

• Q3 revenue fell 46% year over year to $15.3 million, reflecting weaker e-commerce sales and slower dealer and chain-store reorders after Q1 restocking and slower-than-expected sell-through.
• Adjusted gross margin was approximately 65%, versus 60% reported a year earlier; reported Q3 gross margin of 79% included a $2.3 million tariff refund.
• Byrna posted a $2.9 million net loss, or $0.13 per diluted share, versus net income of $2.2 million a year ago. Adjusted EBITDA was negative $1.4 million, compared with positive $4.1 million.
• August website sessions averaged about 29,000 per day, the highest since March, and conversion rates improved sequentially from June to August. Social engagement was up 95% compared with Q1, with more than 50 active creators.
• Cash, cash equivalents, and marketable securities were $9.4 million at quarter-end, with no debt. Inventory was $30 million, and management expects it to decline by $2 million to $3 million in Q4.