Byrna Technologies Inc. Earnings Summary — Q2 2026

• Revenue plummeted 42.5% year-over-year to $16.39 million, the lowest level since early 2024.
• Cost of revenue remained high at $14.6 million despite falling sales, leading to a gross profit of only $1.78 million (10.9% gross margin).
• Operating loss widened significantly to $12.85 million, compared to an operating income of $3.33 million in the same quarter last year.
• The net loss of $10.09 million represents a severe deterioration from the $2.43 million profit recorded in Q2 2025.
• The company continues to face extreme volatility in its financial performance, heavily influenced by advertising restrictions and manufacturing cost structures.
• Operating expenses remained relatively flat at $14.63 million despite the revenue contraction, indicating high fixed costs and limited operational flexibility.

Management is focused on diversifying marketing away from restrictive social media platforms toward celebrity influencers and direct-to-consumer engines to stabilize growth.

Deteriorating

After several quarters of growth and modest profitability in 2025, the company has regressed into significant losses and sharp revenue contraction.

The company faces a challenging road to consistent profitability as it scales its domestic manufacturing and tries to bypass digital advertising hurdles. The current burn rate and revenue decline put significant pressure on the balance sheet.