Byrna Technologies Shares Plunge as Q1 Profits Halve Despite Revenue Growth

Byrna Technologies Inc. (BYRN) experienced a sharp decline in its pre-market valuation on Thursday, with shares falling over 15% to $7.75 following the release of its first-quarter financial results. The maker of less-lethal personal defense products reported a contraction in profitability despite successfully expanding its sales channels. The company's revenue grew to $29.049 million, up from $26.190 million in the same period last year, driven primarily by continued sales expansion across dealer and chain store networks. However, this top-line growth was offset by a surge in operational costs and external financial pressures. Net income fell to $0.801 million from $1.662 million year-over-year, resulting in earnings per share of $0.03 compared to $0.07 in the prior year. Operating income also saw a steep decline, dropping to $0.928 million from $1.696 million. The profit squeeze was largely attributed to rising operating expenses, which climbed to $16.473 million from $14.228 million. Management cited increased spending on advertising, marketing, and professional legal fees as primary drivers. Additionally, foreign currency transaction losses widened to $0.238 million, up from $0.088 million in 2025. The market reaction reflects investor concern over the company's ability to maintain margins while scaling operations. With the cost of goods sold rising to $11.648 million, Byrna faces the challenge of balancing aggressive growth with operational efficiency.