Nasdaq:BYRN
Byrna Technologies Inc.
A leader in next-gen non-lethal deterrents utilizing thermal imaging for law enforcement and military markets.
Key Metrics
Investment Thesis
Bull Case
The dramatic revenue acceleration and return to profitability signal successful product-market fit and scaling capabilities in a growing security sector. With over $63M in current assets and a robust cash position of $13.7M, the company is well-capitalized to fund R&D and expand its sales force. The proprietary thermal technology creates a defensible moat that could allow for premium pricing as global demand for non-lethal options rises.
Bear Case
Despite recent profits, the large retained earnings deficit of $47.1M highlights historical burn rates and potential underlying financial fragility if sales slow. Heavy capital expenditures of $7.6M combined with negative operating cash flow of $1.6M suggest ongoing pressure to invest heavily just to maintain current operations. Dependence on a small number of large government contracts exposes the stock to significant concentration risk if key clients reduce procurement.
About Byrna Technologies Inc.
Byrna Technologies Inc. (NASDAQ: BYRN) develops, manufactures, and distributes next-generation non-lethal deterrent systems primarily for law enforcement and military sectors. The company leverages proprietary thermal imaging and audio technology to create effective defensive tools that minimize collateral damage in volatile environments. Its revenue surge reflects strong adoption of its Byrna devices across public safety agencies globally.
Analysis
Management Discussion
Revenue jumped significantly from $85.8M in 2024 to $118.1M in 2025, driven by expanded sales of its defensive devices and successful market penetration. Operating profit turned positive at $9.7M net income, marking a decisive turnaround from previous years of losses. However, the company maintains a significant retained earnings deficit of $47.1M, indicating that recent profitability is a relatively new development requiring careful cash flow monitoring.
Industry Overview
The non-lethal deterrent industry is experiencing rapid growth as law enforcement agencies seek alternatives to lethal force and chemical irritants that pose public safety risks. Competition is intensifying with new entrants developing similar audio-based or thermal technologies, potentially fragmenting the market share currently held by incumbents. Regulatory frameworks governing these devices remain complex and vary significantly across different countries and jurisdictions.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $48.0M | $42.6M | $85.8M | $118.1M |
| Cost of Revenue | $21.8M | $19.0M | $33.0M | $46.6M |
| Gross Profit | $26.3M | $23.6M | $52.8M | $71.5M |
| Operating Expenses | $33.7M | $31.4M | $46.1M | $59.6M |
| Operating Income | $-7.5M | $-7.8M | $6.7M | $11.8M |
| R&D | $500.0K | $600.0K | $600.0K | $300.0K |
| Stock-Based Comp | $5.4M | $5.4M | $3.4M | $3.1M |
| D&A | $855.0K | $1.3M | $1.5M | $2.1M |
| Depreciation | $600.0K | $1.0M | $1.2M | $1.9M |
| Amortization | $300.0K | $300.0K | $300.0K | $300.0K |
| Other OpEx | $33.2M | $30.8M | $45.5M | $59.3M |
| Non-Operating Income | $-196.0K | $-237.0K | $413.0K | $-97.0K |
| Pre-Tax Income | $-7.7M | $-8.0M | $7.1M | $11.7M |
| Income Tax | $234.0K | $165.0K | $-5.7M | $2.1M |
| Continuing Ops | $-7.9M | $-8.2M | $12.8M | $9.7M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $-7.9M | $-8.2M | $12.8M | $9.7M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $-7.9M | $-8.2M | $12.8M | $9.7M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $42.6M | $38.2M | $51.0M | $63.7M |
| Cash & Equivalents | $20.1M | $20.5M | $16.8M | $13.7M |
| Marketable Securities | — | — | $8.9M | $1.8M |
| Accounts Receivable | $5.9M | $2.9M | $2.6M | $10.8M |
| Inventory | $15.5M | $13.9M | $20.0M | $32.7M |
| Prepaid Expenses | $1.2M | $868.0K | $2.6M | $4.7M |
| Other Current Assets | $0 | $0 | $0 | $0 |
| Long-Term Assets | $14.4M | $14.1M | $21.0M | $20.8M |
| PP&E (Net) | $3.3M | $3.8M | $3.4M | $7.7M |
| Intangibles | $3.9M | $3.6M | $3.3M | $3.1M |
| Goodwill | $2.3M | $2.3M | $2.3M | $2.3M |
| Operating Leases | $2.4M | $1.8M | $2.5M | $2.0M |
| Other LT Assets | $2.5M | $2.7M | $9.5M | $5.7M |
| Total Assets | $57.0M | $52.3M | $71.9M | $84.5M |
| Current Liabilities | $8.9M | $8.6M | $15.4M | $17.1M |
| Current Leases | $757.0K | $644.0K | $539.0K | $734.0K |
| Deferred Revenue | $458.0K | $1.8M | $1.8M | $496.0K |
| Other Current Liab | $7.7M | $6.2M | $13.1M | $15.9M |
| Long-Term Liabilities | $2.1M | $1.3M | $2.1M | $1.6M |
| LT Operating Leases | $1.8M | $1.3M | $2.1M | $1.6M |
| Other LT Liab | $0 | $0 | $0 | $0 |
| Total Liabilities | $11.1M | $10.0M | $17.6M | $18.7M |
| Shareholders' Equity | $46.0M | $42.3M | $54.4M | $65.8M |
| Paid-In Capital | $125.5M | $130.4M | $133.0M | $135.9M |
| Retained Earnings | $-61.4M | $-69.6M | $-56.8M | $-47.1M |
| AOCI | $-620.0K | $-1.1M | $-649.0K | $-687.0K |
| Treasury Stock | $17.5M | — | — | — |
| Total L&E | $57.0M | $52.3M | $71.9M | $84.5M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $-7.9M | $-8.2M | $12.8M | $9.7M |
| Non-Cash Adjustments | $-19.2M | $15.8M | $-13.9M | $-33.9M |
| Working Capital Changes | $13.3M | $-3.7M | $12.8M | $22.7M |
| Cash from Operations | $-13.8M | $3.9M | $11.7M | $-1.6M |
| Capital Expenditures | $3.3M | $903.0K | $2.3M | $7.6M |
| Cash from Investing | $-5.1M | $-3.0M | $-11.2M | $-459.0K |
| Share Buybacks | $17.5M | — | $3.8M | $1.1M |
| Cash from Financing | $-17.0M | $-422.0K | $-4.6M | $-1.3M |
| FX Effect | $-326.0K | $-61.0K | $371.0K | $261.0K |
| Net Change in Cash | $-36.3M | $430.0K | $-3.7M | $-3.1M |
| Beginning Cash | $56.4M | $20.1M | $20.5M | $16.8M |
| Ending Cash | $20.1M | $20.5M | $16.8M | $13.7M |
Frequently Asked Questions
How does Byrna Technologies Inc. make money?
The company's revenue is driven by the sale of Byrna defensive devices, spare parts, and related accessories to government entities. Operations include R&D focused on proprietary thermal and audio technologies that enhance device efficacy. Additional streams consist of licensing agreements and strategic partnerships with international defense contractors.
What are the main risks for BYRN?
Concentration risk in government contracts where budget cuts or policy shifts could abruptly reduce order volumes. High inventory levels relative to revenue growth suggest potential obsolescence if sales do not keep pace with production capacity. Regulatory changes regarding chemical and electronic weapon classifications could impact market access in key jurisdictions. Intense competition from emerging players entering the non-lethal technology sector could compress margins.
What is BYRN's competitive advantage?
Proprietary thermal imaging technology offers superior night-vision capabilities compared to traditional chemical irritant sprays. Strong relationships with federal, state, and local law enforcement agencies create high switching costs and recurring demand for replacement units. The company holds a dominant market position in the niche non-lethal deterrent space with limited direct global competition.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.