Thu, Apr 10, 12:31 PM (20 days ago)
**Byrna Technologies Inc. (BYRN) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $26.2 million, up 57% YoY, driven by a new marketing strategy and increased sales across all channels. - **Gross Profit:** $15.9 million, or 60.8% of net revenue, up from $9.6 million (57.9%) in Q1 2024. - **Operating Expenses:** $14.2 million, up 45% YoY due to increased marketing, variable expenses, and employee compensation. - **Net Income:** $1.7 million, a significant improvement from a minimal profit in Q1 2024. - **Cash Flow:** Negative operating cash flow of $3.8 million, primarily due to increased inventory and capital expenditures. - **Profit Margins:** Gross margin improved to 60.8% from 57.9% YoY. - **Earnings per Share (EPS):** Basic and diluted EPS of $0.07, up from $0.00 in Q1 2024. **Key Metrics and Trends:** - **Revenue Growth:** Strong growth in direct-to-consumer sales (Amazon and website) and domestic dealer/retailer sales. - **Operating Expenses:** Increased due to higher marketing spend, variable expenses, and employee compensation. - **Cash Flow:** Negative due to increased inventory and capital expenditures, but expected to improve in subsequent quarters. - **Market Risks:** Exposure to currency fluctuations, credit risks, and market risks associated with financial instruments. **Future Operations and Uncertainties:** - **Growth Strategy:** Focus on expanding product lines, broadening user base, and increasing sales from new and existing customers. - **Capital Needs:** Requires significant capital to meet obligations and may pursue secondary equity offerings or debt financings. - **Risks:** Includes regulatory risks, market competition, and operational risks associated with international markets. **Management's Discussion:** - **Strategy:** Emphasizes the growing demand for less-lethal products and plans to leverage the Byrna brand for expansion. - **Financial Outlook:** Expects to generate cash in subsequent quarters and reduce capital expenditures in the third and fourth quarters. - **Stock Buyback Program:** Approved to buy back up to $10 million worth of shares to return capital to shareholders and minimize dilution. **Conclusion:** Byrna Technologies Inc. showed strong revenue growth and improved profitability in Q1 2025, driven by effective marketing strategies and increased sales across all channels. However, the company faces challenges related to cash flow management and capital requirements, which may impact future operations. The focus on expanding product lines and leveraging the Byrna brand positions the company for potential growth, but risks associated with regulatory changes and market competition remain.