Byrna Technologies Q1 2025: Discrepancies in Advertising Strategy, Product Rollouts, and Margin Forecasts

These are the key contradictions discussed in Byrna Technologies Inc.'s latest 2025Q1 earnings call, specifically including: Advertising Spend and Strategy, Sportsman's Warehouse Partnership Rollout and Impact, Product Launch Schedule, and Gross Margin Expectations:



Revenue Growth and Sales Channels:
- Byrna Technologies reported revenue of $26.2 million for Q1 2025, a 57% year-over-year increase.
- Revenue growth was primarily driven by channel expansion, particularly through direct-to-consumer sales on Byrna.com and Amazon.com, and increased sales to dealers like Bass Pro shops.

Gross Margin Improvement:
- The company's gross profit reached $15.9 million, or 61% of net revenue, compared to 58% in the prior year.
- Improvement was attributed to efforts in mid-2024 focused on designing for manufacturability and increased production volumes.

Supply Chain Resilience:
- Byrna successfully shifted its supply chain to U.S.-based suppliers, with domestic content reaching 92%.
- This strategic move, begun in anticipation of possible tariffs, mitigated potential cost increases due to tariffs and supply chain disruptions.

New Product Launch and Market Expansion:
- The anticipated release of the Compact Launcher, a smaller and more powerful non-lethal launcher, aims to expand Byrna's market reach.
- This new product is expected to open the women's market due to its smaller size and customizability, with initial inventory of over 25,000 units.