Byrna Suspends Sales of Fox Labs Sprays Containing EPA-Prohibited Solvent
BYRN sits 18% above its 52-week low of $3.165.
Summary
Byrna disclosed that certain Fox Labs defense sprays contain an EPA-prohibited solvent, forcing a sales suspension and voluntary disclosure to regulators, alongside a 45.7% Q3 revenue decline and $2.9 million net loss.
Updates
· SEC 8-K — Byrna's 8-K attaches the Q3 2026 earnings press release with revenue of $15.3M, net loss of $2.9M, and adjusted EBITDA of $(1.4)M.
Key Events · Legal and Risk Events · BYRN
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EPA-Prohibited Solvent in Fox Labs Sprays
Certain Fox Labs branded oleoresin capsicum defense sprays are formulated with trichloroethylene, prohibited for consumer use under an EPA rule since June 2025. Byrna suspended shipments, instructed dealers to halt sales, and voluntarily disclosed the matter to the EPA on October 6, 2026, with a CPSC filing planned.
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Regulatory Exposure Unquantified
The company cannot estimate reformulation costs, civil penalties, or claims. Affected products represented approximately 1.3% of nine-month net revenue, and the carrying value of affected finished goods inventory was about $0.2 million.
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Q3 Revenue Down 45.7%
Net revenue fell to $15.3 million from $28.2 million a year earlier, driven by lower web DTC sales and domestic wholesale dealer sales. Nine-month revenue declined 26.7% to $60.7 million.
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Net Loss and Cash Burn
Q3 net loss was $2.9 million; nine-month net loss was $12.2 million. Cash and equivalents fell to $8.4 million from $13.7 million at fiscal year-end, with management noting it may pursue additional equity or debt financing.
Analysis · BYRN · Manufacturing
A regulatory red flag surfaces in Byrna's Q3 10-Q: certain Fox Labs branded defense sprays contain trichloroethylene, a solvent whose consumer use has been prohibited by an EPA rule since June 2025. The company has suspended shipments, instructed dealers to halt sales, and voluntarily disclosed the matter to the EPA on October 6, 2026, with a CPSC filing planned. While the affected products represented about 1.3% of nine-month net revenue, the company cannot yet estimate reformulation costs, penalties, or claims. This first-disclosed issue could trigger civil penalties, product reformulation costs, and reputational damage with law enforcement and institutional customers. The disclosure lands on top of a difficult quarter: revenue fell 45.7% year-over-year to $15.3 million, and the company posted a $2.9 million net loss. Cash stands at $8.4 million, down from $13.7 million at fiscal year-end, with management noting it may need additional capital.
How filings like this one have moved
In the 30 days to Oct 8, 2026, 36.4% of the 1080 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.63%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, BYRN was trading at $3.73 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $94.8M. The 52-week trading range was $3.17 to $30.62. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.