Byrna Technologies reported a revenue miss for the third quarter 2026 as e-commerce sales declined, but significantly narrowed its net loss compared to analyst estimates. Results were highlighted by a major recovery in gross margins and progress on inventory reduction goals as the company navigates a strategic operational shift.
Key Highlights
- Adjusted gross margin expanded to 65%, marking a sharp recovery from the 11% reported in the prior quarter and exceeding the 60% level achieved in the prior-year period.
- Net revenue of $15.3 million decreased 46% year-over-year, driven by a decline in direct-to-consumer sales and slower restocking activity from the retail dealer channel.
- Inventory was reduced to $30.0 million, down from $32.7 million at the start of the fiscal year, as part of a targeted initiative to improve working capital efficiency.
- Ammunition gross margins improved by 1,200 basis points during the quarter following a successful transition to an outsourced manufacturing model.