Byrna Technologies Inc. Q1 FY2025 earnings call

• Revenue grew 57% y-o-y to $26.2 million despite Q1 being traditionally slow; Q1 sales were only 6% below all-time record. - Channel expansion: Amazon sales growing faster than Byrna.com; dealer sales up 78% with chain stores like Bass Pro Shops driving growth. - Sportsman's Warehouse partnership: Expanded pilot to 13 store-within-a-store locations, added 41 stores with point-of-sale displays and shooting lanes. - New retail stores: Three new stores opened, with a fourth co-located with ammo factory in Fort Wayne. - Tariff management: Moved supply chain to US, reducing foreign components, built inventory to mitigate tariff impact. - Compact Launcher: Set to release, 38% smaller, 36% lighter, 27% narrower, with production at 1,000 units/day, aiming for 25k+ in stock by release.

Net revenue for Q1 2025 was $26.2 million, a 57% increase from $16.7 million in Q1 2024. Direct-to-consumer revenues rose, with Amazon sales growing faster than Byrna.com. Sales to dealers increased $1.9 million (78%), led by chain stores like Bass Pro Shops. Gross profit for Q1 2025 was $15.9 million (61% of net revenue) compared to $9.6 million (58%) in Q1 2024.

• Anticipate effective tax rate to be approximately 23% in 2025. - Expect Q1 to be the low point of revenues for the year, with sequential growth expected as the Compact Launcher launches. - Plan to have 25k+ Compact Launchers in stock by release, start shipping to dealers April 21-24, DTC orders April 24, official release May 1.

• Tariff impact if not managed, but supply chain moves and inventory built mitigate short-term risks. - Manufacturing variances due to out-of-spec components, though moving to US suppliers should reduce this over time.

Q: Regarding Q2 early sales trend and ROAS management for the new CL launcher.

A: Bryan Ganz noted Q1 ROAS is mid-3s, advertising spend will be low initially as demand driven by existing customer base via email and website, ramping up again in August.

Q: About Sportsman shop-in-shops vs kiosks.

A: Lauri Kearnes and Bryan Ganz discussed that store-within-a-store draws foot traffic and converts well, while kiosks have point-of-sale displays but don't draw people into shooting experiences as effectively.

Q: MSRP of CL, ammo margin, and colors.

A: Lauri Kearnes said CL has an MSRP of $549.99; Bryan Ganz mentioned ammo margin is similar, and CL comes in orange and black with pink and other colors to be released later this year.