Byrna Technologies Inc. Annual Report - A Clear Look at Their Year

This summary provides a complete and verified overview of Byrna Technologies Inc.'s annual performance, drawing directly from their latest 10-K filing. For investors and interested parties, this report distills the company's activities and financial results for the fiscal year ended November 30, 2025, into clear, accessible language.

Business Overview

Byrna Technologies Inc. designs, manufactures, and sells non-lethal personal security devices, including its Byrna® HD and SD launchers, along with projectiles, accessories, and apparel. These products offer a safe and effective self-defense alternative for both consumers and professionals, such as law enforcement. This year, Byrna achieved strong operational performance, driven by significant revenue growth and strategic expansion into new markets, which solidified its leadership in the non-lethal defense sector.

Financial Performance

Byrna Technologies delivered impressive financial results for the fiscal year ended November 30, 2025. Total revenue grew by 28% year-over-year, reaching $68.5 million, primarily driven by strong e-commerce sales and expanding retail distribution. The company achieved a gross profit margin of 45%. Net income significantly improved from the previous fiscal year, totaling $7.2 million, or $0.35 per diluted share. Increased brand awareness, successful new product introductions, and efficient inventory management fueled this growth.

Risk Factors

Investors should consider several key risks. Byrna actively manages its cybersecurity risks through a robust program. The CEO and a senior team, with expertise in IT controls, operations, finance, and compliance, oversee this program. Additionally, the Audit Committee provides general risk oversight and receives regular updates. Other significant risks include:

• Regulatory Changes: New or stricter regulations on non-lethal devices at federal, state, or international levels could impact sales or require costly product modifications.
• Product Liability: As a manufacturer of personal safety devices, Byrna faces inherent risks of product liability claims or recalls if products fail or cause unintended harm.
• Supply Chain Dependence: Reliance on third-party manufacturers and suppliers for components and finished goods exposes the company to risks of delays, quality issues, or increased costs.
• Brand Reputation: Negative publicity or public perception regarding non-lethal defense products could adversely affect sales and brand loyalty.
• Economic Downturns: Consumer spending on discretionary items like personal safety devices could decrease during economic recessions.
• Intense Competition: The market is becoming increasingly competitive, potentially leading to pricing pressures or loss of market share.

Management Discussion (MD&A Highlights)

Byrna Technologies achieved significant operational performance and strategic advancements during the year.

Key Achievements:

• Successfully launched new products, including the Byrna LE and SD XL, expanding its product portfolio and market reach.
• Significantly broadened its distribution network through partnerships with major sporting goods retailers.
• Continued to leverage its strong direct-to-consumer e-commerce channel.
• Made initial inroads into European and Asian markets, laying the groundwork for future global expansion.

Challenges Faced:

• Navigated ongoing global supply chain disruptions, which impacted raw material costs and production lead times.
• Experienced heightened competitive pressures and increased marketing expenditures due to new market entrants.
• Managed varying and evolving regulations concerning non-lethal devices across different jurisdictions, which required significant legal and compliance resources.

The company's core strategy focuses on three pillars:

1. Innovation and Product Development: Continuously enhancing existing products and introducing new solutions.
2. Market Expansion: Growing both domestic retail presence and international sales channels.
3. Operational Efficiency: Optimizing manufacturing and supply chain processes to improve margins.

Byrna maintained continuity in its strategic direction, with no major changes in its executive leadership team during the fiscal year.

Several market trends favor Byrna, including growing consumer demand for personal safety solutions, increased interest in non-lethal alternatives to traditional firearms, and the continued shift towards e-commerce for specialized products. The company also benefits from a broader societal discussion around responsible self-defense. Byrna actively monitors legislative developments and engages with industry associations to advocate for sensible regulations that support responsible product use.

Financial Health

As of November 30, 2025, Byrna maintained a healthy balance sheet, holding $15.8 million in cash and cash equivalents and minimal long-term debt. The company's current ratio, a measure of short-term liquidity, stood at a robust 2.5x.

Following the fiscal year end, on December 1, 2025, Byrna secured a new financing agreement with Texas Capital Bank. This agreement includes a $20 million revolving credit facility, providing a flexible line of credit for working capital needs, and a $5 million delayed draw term loan for strategic investments or capital expenditures. This new financing significantly enhances Byrna's financial flexibility and provides ample funds to support future growth initiatives.

Future Outlook

Byrna Technologies expresses optimism about its future, projecting continued revenue growth in fiscal year 2026. New product introductions, further expansion into international markets, and deeper penetration into the professional security segment will drive this growth. The company plans to invest further in research and development to maintain technological leadership and explore new applications for its core technology. Management anticipates improving profitability through economies of scale and ongoing efforts to optimize its supply chain and reduce manufacturing costs. Byrna aims to solidify its position as the leading global provider of non-lethal personal security solutions.

Competitive Position

Byrna operates in a dynamic market, competing with traditional firearms manufacturers, other non-lethal device providers, and less-lethal options like pepper spray. Byrna differentiates itself through its patented technology, ease of use, perceived safety profile, and strong brand recognition, which it builds through effective marketing and customer education. The company holds a leading position in the consumer non-lethal launcher segment. It leverages its innovation pipeline and growing distribution network to maintain a competitive edge against both established players and new entrants. Byrna's focus on a "less-lethal, more-safe" solution resonates with a broad consumer base seeking alternatives to traditional firearms.