Byrna Q2 Revenue Plunges 43%, Gross Margin Collapses on $9.4M in Write-Downs

summarizeSummary

Byrna Technologies reported a 42.5% revenue decline and a $10.1 million net loss in Q2 2026, driven by collapsing sales and $9.4 million in inventory and asset write-downs from ending in-house ammunition production.

check_boxKey Events · Earnings and Guidance · BYRN

• Revenue Plunges 42.5%

  Q2 net revenue fell to $16.4 million from $28.5 million a year ago, with DTC down 34.5% and wholesale down 53.8%.

• Gross Margin Collapses to 10.9%

  Gross profit was just $1.8 million, crushed by a $5.9 million inventory write-down and a $3.5 million impairment charge for ammunition production assets.

• Net Loss of $10.1 Million

  The company swung from a $2.4 million profit in Q2 2025 to a $10.1 million loss, driven by the write-downs and higher operating expenses.

• Cash Reserves Shrink

  Cash and equivalents fell to $9.4 million from $13.7 million at fiscal year-end, though a $2.3 million tariff refund received after the quarter and a $20 million credit facility provide liquidity.

auto_awesomeAnalysis · BYRN · Manufacturing

The second quarter delivered a sharp deterioration for Byrna. Revenue tumbled 42.5% to $16.4 million, reflecting weakness across both direct-to-consumer and wholesale channels. Even more concerning, gross margin collapsed from 61.6% to 10.9%—not merely a function of lower sales, but the result of a $5.9 million inventory write-down and a $3.5 million impairment charge tied to the decision to shutter in-house ammunition production. The bottom line swung from a $2.4 million profit a year ago to a $10.1 million loss. Cash reserves dwindled to $9.4 million, though a $2.3 million tariff refund received after the quarter and an untapped $20 million credit facility offer some cushion. The subsequent departure of the President and a small acquisition add to the picture of a company in transition, but the core issue remains a business that is shrinking fast while absorbing large restructuring costs.