Byrna Technologies Inc. Q4 FY2025 earnings call

• Fiscal 2025 was a landmark year with 38% revenue growth. Brick-and-mortar sales increased over 100%, expanding from around 200 chain store locations at the start of 2025 to approximately 900 by year-end. - Marketing initiatives include a Super Bowl commercial spot in the Pittsburgh market, resuming work with Dan Bongino, and exploring product placement with a film featuring Byrna Technologies Inc. - Manufacturing improvements: Increasing monthly production by 33%, moving to more efficient production cells, and new ammo factory in Fort Wayne producing advanced ammunition. - New product developments: Launch of CLXL launcher, development of next-generation modular launcher with lower production cost, and plan to introduce Byrna Cam accessory in late Q2 or Q3 2026.

For fiscal Q4 2025, net revenue was $35.2 million, a 26% increase from Q4 2024. Full year 2025 net revenue totaled $118.1 million, up 38% from 2024. Brick-and-mortar sales increased from $15.2 million in 2024 to $31 million in 2025, representing approximately half of the 2025 year-over-year revenue growth. International sales showed 66% growth. DTC channels (byrna.com and amazon.com) had growth, with amazon.com growing 46.9% year-over-year for the full year, now accounting for 28.6% of DTC sales.

• Expect margin improvement in fiscal 2026 as one-time startup costs for new CL launcher and ammo factory are completed. - Gross margin expected to be in the 63%-65% range by end of 2026. - Growth rates and adjusted EBITDA margins are expected to remain well above 40%. - No specific revenue guidance provided, but expect to stay in growth mode with EBITDA margins expanding as revenue increases.

Q: Jeremy Hamblin asked about the CLXL launcher's price point, shot capability, and margin comparison to other launchers.

A: The CLXL is priced at $579.99, $30 more than the current CL. It has a seven plus one shot capacity, longer barrel, and marginally higher cost but similar to current CL.

Q: Jeff Van Sinderen inquired about gross margin trend, revenue growth guidance, and EBITDA margins.

A: Gross margin expected to incrementally grow towards 63%-65% by end of 2026. No revenue guidance provided, but expect continued growth and EBITDA margins to expand with positive leverage.

Q: Matt Koranda asked about retail expansion, camera product, and modular product plans.

A: Retail expansion includes deepening relationships with existing chain stores and adding new locations, especially in Texas. The Byrna Cam is a non-connected camera to be released late Q2/Q3 2026. The modular launcher is highly anticipated with a 40% lower production cost and expected to be released by end of 2026.

Q: Jon Hickman asked about the movie featuring Byrna Technologies Inc.

A: The movie is expected to be released later this year, used as an advertising platform to promote Byrna Technologies Inc., with behind-the-scenes rights allowing interviews and product promotion on the movie site.