Byrna Technologies reports Q2 revenue contraction, shifts strategy amid operational pivot
- Net revenue for the second quarter fell 43% year-over-year to $16.4 million.
- Gross profit shrunk to $1.8 million following a $5.9 million inventory write-down.
- The company entered a binding deal to acquire HERO Defense Systems while closing its Fort Wayne plant.
Byrna Technologies (NASDAQ:BYRN) reported a steep contraction in its financial metrics for the second quarter of 2026, navigating a heavy product restructuring phase marked by deep asset write-downs and an overhaul of its manufacturing footprint.
The less-lethal defense technology manufacturer recorded net revenue of $16.4 million for the three months ended May 31, 2026, representing a 43% decline compared to the $28.5 million generated in the identical period last fiscal year.
The company reported a statutory net loss of $10.1 million for the quarter, a significant decline from the net income of $2.4 million logged in Q2 2025.
Gross profit landed at $1.8 million, translating to an 11% gross margin.
This compression was heavily driven by a non-recurring $5.9 million inventory write-down alongside a $3.5 million specialized equipment impairment charge.
On an adjusted basis, the consumer safety brand recorded an adjusted EBITDA of $(0.6) million.
To simplify its cost structures, Byrna finalized a plan to shut down its ammunition manufacturing plant in Fort Wayne, Indiana, centralizing its supply chains to eliminate persistent factory underutilization.
On the growth side, the company signed a binding agreement to acquire HERO Defense Systems, a move expected to consolidate intellectual property and expand its less-lethal product pipeline.
Concurrently, Byrna launched several high-conversion Direct-to-Consumer (DTC) pilot marketing campaigns to lower customer acquisition costs and boost digital retail conversion metrics heading into the back half of the fiscal year.
