Business/Financial Results (Form 8-K)

Byrna Technologies Reports Fiscal Third Quarter 2026 Results

ANDOVER, Mass., October 8, 2026 - Byrna Technologies Inc. ("Byrna" or the "Company") (Nasdaq: BYRN), a personal defense technology company specializing in the development, manufacture, and sale of innovative less-lethal personal security solutions, today reported select financial results for its fiscal third quarter ("Q3 2026") ended August 31, 2026.

Fiscal Third Quarter 2026 and Recent Operational Highlights

Fiscal Third Quarter 2026 Financial Results

Results compare Q3 2026 to the 2025 fiscal third quarter ended August 31, 2025, unless otherwise indicated.

Net revenue for Q3 2026 was $15.3 million, compared to $28.2 million in the fiscal third quarter of 2025 ("Q3 2025"). The approximately 46% year-over-year decrease was driven primarily by a decline in e-commerce sales and slower reorder activity from dealers and chain stores following substantial restocking in fiscal Q1 and slower-than-expected sell-through.

Gross profit for Q3 2026 was $12.2 million (79% of net revenue), down from $16.9 million (60% of net revenue) in Q3 2025. Gross profit for Q3 2026 includes the benefit of a one-time $2.3 million refund of previously paid tariffs. Excluding this item, adjusted gross profit, a non-GAAP measure reconciled below, was $9.9 million, representing adjusted gross margin of approximately 65%, compared to 60% in Q3 2025. The improvement in adjusted gross margin is primarily attributed to improving launcher margins through manufacturing efficiency gains and a continued shift to higher margin products.

Operating expenses for Q3 2026 were $15.1 million, compared to $14.1 million for Q3 2025, an increase of 7%. The increase primarily reflects continued investment in new marketing initiatives as well as $1.7 million in other one-time costs, partially offset by the change in variable selling expenses associated with a decrease in sales.

Net income (loss) for Q3 2026 was $(2.9) million, compared to $2.2 million for Q3 2025. The decline was primarily driven by the factors discussed above, partially offset by lower income tax expense and a net gain in interest and other income.

Adjusted EBITDA¹, a non-GAAP metric reconciled below, for Q3 2026 totaled $(1.4) million, compared to $4.1 million in Q3 2025.

Cash, cash equivalents and marketable securities as of August 31, 2026 totaled $9.4 million, compared to $9.0 million at August 31, 2025, and $15.5 million at November 30, 2025. Inventory on August 31, 2026 totaled $30.0 million, compared to $34.1 million at August 31, 2025, and $32.7 million at November 30, 2025. The Company expects inventory levels to continue normalizing in subsequent quarters and more substantially during the upcoming holiday sales period leading to improved working capital efficiency.

Management Commentary

"Over the past several months, we have made significant progress in rebuilding the foundations necessary to support sustainable long-term growth," said Byrna CEO Conn Davis. "Our results in the quarter reflect our ongoing transition, but we are now starting to see positive signs of new initiatives taking hold and expect to improve sequentially as we approach the end of our fiscal year. For example, we averaged over 29,000 website sessions per day in August, the highest since March of this year. Website conversion also improved from June to August sequentially. Both of these metrics reflect the work we've done increasing engagement across our digital channels, onboarding creators to our social engagement program, and launching new media partnerships. While these efforts remain in their early stages, the initial indicators are encouraging and give us confidence that we are moving in the right direction.

"Heading into our critical holiday sales season, we believe we have established a foundation for many of the transformation initiatives and are now focused on executing against them and building momentum. Our refreshed marketing programs are active, our creator network continues to expand, and we are working closely with our expanded dealer base to support holiday sell-through and improve retail productivity. As these initiatives come together, we expect to see more substantial inventory sell through, leading to improved cash generation and overall results. While many of these initiatives remain in their early stages, we are encouraged by the initial results and believe their impact will become more meaningful as they continue to mature and scale.

"Looking further ahead, we believe Byrna's opportunity extends well beyond current market conditions. By providing consumers with an effective option between being defenseless and carrying a firearm, we are helping reshape the personal safety landscape and expand the less-lethal category. As the clear market leader in the category we pioneered, we believe we are only beginning to unlock the substantial growth opportunity that lies ahead through increased consumer awareness, broader distribution, and continued category adoption.

¹ See non-GAAP financial measures at the end of this press release for a reconciliation and a discussion of non-GAAP financial measures.

"Over the next several years, our focus will be on four pillars: continuing to expand awareness, adoption, and distribution of the Byrna brand; extending our presence further into international, professional security, and law enforcement markets; improving operational efficiency through margin expansion, inventory productivity, and cash generation; and evaluating strategic opportunities that strengthen and complement our personal safety platform. Collectively, we believe these initiatives can support a significantly larger, more profitable, and more durable business over time.

"Just as importantly, we now have the team and organizational structure in place to execute against that vision. During the quarter, we strengthened our leadership team with the additions of Jim White and Nate Secor, whose experience in retail growth, omnichannel sales, brand building, and customer acquisition are already helping shape the next phase of Byrna's evolution. We also enhanced our Board with the appointments of Rose Lopez Keravuori and Dr. Matthew McBrady, adding valuable expertise in governance, risk management, capital allocation, and strategic growth. Collectively, we believe these additions significantly strengthen our ability to execute our strategy and accelerate the development of a larger, more profitable, and more durable business.

"The work underway today is designed not only to improve near-term performance, but to establish a repeatable growth model capable of creating lasting value for our customers, partners, employees, and shareholders over the long term."

Conference Call

The Company's management will host a conference call today, October 8, 2026, at 9:00 a.m. Eastern time (6:00 a.m. Pacific time) to discuss these results, followed by a question-and-answer period.

Toll-Free Dial-In: 877-709-8150

International Dial-In: +1 201-689-8354

Confirmation: 13762670

Please call the conference telephone number 5-10 minutes prior to the start time of the conference call. An operator will register your name and organization. If you have any difficulty connecting with the conference call, please contact Gateway Group at 949-574-3860.

The conference call will be broadcast live and available for replay here and via the Investor Relations section of Byrna's website.

About Byrna Technologies Inc.

Byrna is a personal defense technology company specializing in the development, manufacture, and sale of innovative less-lethal personal security solutions. For more information on the Company, please visit the corporate website here or the Company's investor relations site here. The Company is the manufacturer of the Byrna® CL, Byrna® LE and Byrna® SD personal security devices, state-of-the-art handheld CO2 powered launchers designed to provide a less-lethal alternative to a firearm for the consumer, private security, and law enforcement markets. To purchase Byrna products, visit the Company's e-commerce store.