Non-lethal weapons company Byrna (NASDAQ: BYRN) met Wall Street’s revenue expectations in Q3 CY2025, with sales up 35.1% year on year to $28.18 million. Its non-GAAP profit of $0.12 per share was significantly above analysts’ consensus estimates.

Is now the time to buy BYRN? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

Byrna’s results for Q3 were met with a strongly positive market reaction, as the company’s operational momentum was underpinned by rapid growth in both retail channels and digital engagement. Management credited its robust 35% sales growth to the expansion of Byrna’s dealer network, successful mainstream advertising campaigns, and growing brand adoption. CEO Bryan Ganz highlighted, “Our AI-enabled advertising campaign expanded our reach across new channels... lifting average daily sessions on byrna.com from 33,000 a day to more than 50,000 a day.” The introduction of the compact launcher and the ongoing ramp-up of company-owned retail stores further amplified demand, validating Byrna’s multichannel strategy.

Looking ahead, Byrna’s management signaled confidence that the current surge in web traffic and retail presence will drive continued top-line momentum through the holiday season and into next year. The company plans to leverage a rapidly growing email subscriber base and targeted outreach for major sales events to maximize conversion. CEO Bryan Ganz emphasized the longer-term vision, stating, “We see tremendous opportunity to combine existing SOS alert technology with Byrna’s proven launchers and sprays... giving customers the ability to both neutralize a threat and contact help.” The rollout of connected safety devices and value-focused products is expected to support recurring revenue streams and broaden Byrna’s addressable market.

Key Insights from Management’s Remarks

Management attributed the quarter’s performance to retail network growth, effective AI-driven advertising, and expanded product lines, while highlighting operational investments to support upcoming launches.

• AI-powered advertising effectiveness: Byrna’s AI-enabled campaigns significantly expanded reach, with standout initiatives such as the “We Don’t Sell Bananas” ad driving daily web sessions from 33,000 to over 50,000. This surge contributed to a 1.9 million-strong opt-in email list and greater brand recognition, especially on mainstream platforms like MLB and NFL networks.

• Retail footprint expansion: Byrna surpassed 1,000 retail locations nationwide, including both big box and owned stores. Experiential retail—allowing customers to test launchers—proved especially effective at boosting in-person conversion rates, with newly opened company-owned stores performing at or above expectations across diverse markets.

• Product mix evolution: The compact launcher, released in May, gained traction in physical retail channels, while the established SD model continued to dominate online sales, particularly on Amazon. Management cited a notable mix shift, supporting inventory builds ahead of holiday demand.

• Cost efficiency and margin trends: Initial manufacturing ramp-up for new products, including the compact launcher and Fort Wayne ammo facility, created short-term margin pressure. However, proprietary factory management systems built with AI rapidly improved production efficiency, with management targeting a 63-65% gross margin next year as scale benefits materialize.

• Initiatives for recurring revenue: Progress continued on Byrna’s connected safety platform, integrating SOS alert technology with launchers and sprays. Management believes this can expand the company’s ecosystem and create new technology-driven recurring revenue streams, especially by targeting first-time buyers and cost-conscious consumers with upcoming entry-level devices.

Drivers of Future Performance

Byrna’s outlook is driven by sustained digital engagement, new product introductions, and the evolution of its connected safety platform, though management noted conversion rates and inventory normalization as areas of focus.

• Sustained digital and retail momentum: Management expects continued benefit from its AI-enabled advertising and the expanded retail footprint, with significant promotional events such as Black Friday and Cyber Monday anticipated to boost seasonal demand. The growing opt-in email base and targeted campaigns are designed to capitalize on increased web traffic, though conversion rates are expected to normalize gradually rather than immediately.

• Product innovation pipeline: Launches of a value-focused 61-caliber launcher and a simplified, portable defense device are planned for 2026. These products, together with affordable training ammunition, are aimed at broadening Byrna’s reach to both younger and budget-conscious consumers, potentially supporting a recurring revenue model via consumables and connected services.

• Operational efficiency and margin expansion: Management is focused on leveraging proprietary, AI-driven factory and point-of-sale systems to further improve operational efficiency. The ramp-up of new manufacturing processes is expected to drive gross margins higher, with ongoing investments in process automation and inventory optimization also supporting profitability.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be watching (1) trends in conversion rates relative to surging web traffic and the impact of targeted holiday promotions, (2) progress on operational efficiency as new manufacturing systems and inventory normalization take effect, and (3) the development and early adoption of Byrna’s connected safety platform and upcoming value-oriented product launches. Execution in expanding recurring revenue streams will also be closely tracked as a marker of strategy success.

Byrna currently trades at $27.68, up from $22.81 just before the earnings. Is there an opportunity in the stock?See for yourself in our full research report (it’s free for active Edge members).

Stocks That Trumped Tariffs

Trump’s April 2025 tariff bombshell triggered a massive market selloff, but stocks have since staged an impressive recovery, leaving those who panic sold on the sidelines.

Take advantage of the rebound by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.