Byrna’s fourth quarter results were met with a modestly negative market reaction, as the company delivered year-over-year revenue growth that exceeded Wall Street’s expectations but saw operating margins contract. Management attributed strong sales to broad-based growth in brick-and-mortar channels—especially expansion into major chain stores—and continued momentum in direct-to-consumer and international markets. CEO Bryan Ganz emphasized that the company’s strategic focus on retail partnerships, experiential in-store campaigns, and expanded advertising contributed significantly to the top-line gains. However, CFO Laurilee Kearnes noted that growth came with higher operating expenses, as investments in marketing and new store rollouts weighed on margins.
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Byrna (BYRN) Q4 CY2025 Highlights:
- Revenue: $35.25 million vs analyst estimates of $34.92 million (26% year-on-year growth, 0.9% beat)
- Adjusted EPS: $0.17 vs analyst estimates of $0.11 (56.4% beat)
- Adjusted EBITDA: $6.02 million vs analyst estimates of $6.08 million (17.1% margin, 1.1% miss)
- Operating Margin: 11.2%, down from 14.6% in the same quarter last year
- Market Capitalization: $305.6 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Byrna’s Q4 Earnings Call
- Jeremy Hamblin (Craig Hallum Capital) asked about the pricing and margin profile of the new CLXL launcher. CEO Bryan Ganz explained that the CLXL’s margin is similar to the existing CL, but offers a stronger value proposition for customers due to enhanced features.
- Jeremy Hamblin (Craig Hallum Capital) inquired about the company’s plans for connected devices and related acquisitions. Ganz replied that pricing is not finalized and that both in-house development and strategic acquisitions are under consideration.
- Jeff Van Sinderen (B. Riley Securities) sought more detail on expected gross margin trends and EBITDA margin development. CFO Laurilee Kearnes stated they anticipate gradual gross margin improvement throughout the year due to price increases and manufacturing efficiencies.
- Matt Koranda (ROTH Capital Partners) questioned the growth outlook for retail expansion, specifically the balance between new and existing partners. Kearnes emphasized that both factors would contribute, with further product support aimed at optimizing retail sell-through.
- Matt Koranda (ROTH Capital Partners) asked how the modular platform fits with the current product lineup. Ganz said the new platform would eventually offer models at multiple price points, supplementing rather than replacing existing products.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace at which new and existing retail partners drive incremental sales, (2) the impact of the CLXL and modular launcher introductions on both product mix and gross margins, and (3) the effectiveness of expanded advertising and the rollout of the Byrna Cam in opening new revenue channels. Execution in broadening the addressable market and achieving manufacturing cost reductions will also be important indicators of progress.
Byrna currently trades at $13.43, up from $12.22 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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