[Management View]
Byrna Technologies reported a 35% YoY increase in net revenue for fiscal Q3 2025, driven by expanding retail channels and increased dealer sales. Key strategic priorities include operational efficiency through proprietary systems, inventory normalization, and the development of a connected safety platform.

[Outlook]
Management expects full-year fiscal 2025 revenue growth in the 35%-40% range, supported by strong September sales and robust holiday demand signals. Future plans include launching a value-focused 61-caliber launcher and a portable spray-based protection device in fiscal 2026.

[Financial Performance]
Net revenue for Q3 2025 was $28.2 million, a 35% increase from $20.9 million in Q3 2024. Gross margin was 60%, impacted by a higher mix of dealer and international sales. Operating expenses rose to $14.1 million from $12.2 million in Q3 2024. Net income more than doubled to $2.2 million. Adjusted EBITDA was $3.7 million, up from $1.9 million in Q3 2024.

[Q&A Highlights]
Question 1: Bryan, maybe you could just touch on thoughts on adding new influencers. I know that's something that has been discussed. Maybe touch on areas of focus there?
Answer: In 2023, we kicked off our celebrity influencer campaign with Sean Hannity. We have expanded to approximately a dozen conservative radio talk show hosts. We are now looking to expand beyond that universe. Adam Roth, former head of sales and marketing for Nike North America, is helping us put together a plan for new brand ambassadors. We are well into this process but cannot share specific names yet.

Question 2: Can you touch on the latest, I think there's another CL launcher that's planned. And then also just give us an update if you could on the lower price point unit that you plan to roll out?
Answer: The next new launcher will be the 61-caliber price point launcher, similar in size to the existing CL, to be released next year. The basic box configuration has not been as popular as expected. The universal ready kit, priced at $540.99, remains 90% of our sales.

Question 3: Just wondering how ByrnaCare adoption is running in the early days.
Answer: ByrnaCare adoption is running in line with expectations. We have not yet fully integrated it into our website for every purchase, but we expect greater impact once this is done.

Question 4: Can you discuss a little bit more in terms of conversions that you were seeing? And whether or not this campaign is reaching maybe a customer set that is outside of your traditional customer set given kind of the viral nature of the campaign?
Answer: Conversion rates will climb significantly from where they are. It takes time for people to make a purchase, with an average of five to seven visits before buying. We are seeing a climb in conversion rates and web sessions, with recent daily peaks hitting 70,000 sessions. We expect conversion rates to improve over time.

Question 5: How should we be thinking about the mix of business here in Q4?
Answer: We will continue to see strong dealer and chain store sales, with additional orders coming in for the holidays. However, we expect our DTC channels to be a higher percentage of overall sales than in Q3.

Question 6: Should we expect that kind of expense leverage ratio to maintain here both in Q4, but then as we think about kind of projecting out in 2026 and beyond?
Answer: In Q4, we will ramp up additional marketing, so leverage may not be as strong as in Q3. Going into next year, there will be some additional positions, but we will continue to see leverage moving forward.

Question 7: How does the guidance fit with the 70% lift that you've seen in web traffic?
Answer: It will take time for conversion rates to get back to a mean of 1%. We don't expect to reach normal conversion rates in Q4, but we do expect improvement over time.

Question 8: Any thoughts on the promotional posture heading into the holiday season?
Answer: We have two sales: the Byrna Black and Orange Sale in October and the Black Friday/Cyber Monday sale. These six days represent 40% of November's sales, and fulfillment logistics will determine whether sales are recorded in Q4 or Q1.

Question 9: How to think about the wholesale expansion into the end of this year and next?
Answer: We are well positioned with our current retail footprint and will focus on expanding existing relationships. We may open additional corporate stores in select markets.

Question 10: When do you think the SOS and connected platform could become commercially available to consumers?
Answer: It will be a phased release starting in 2026. The technology exists, and we are adapting it for use with Byrna products. Some products will be released in 2026, while others may come out in 2027.

Question 11: How is the rollout with Sportsman's Warehouse progressing?
Answer: We are on track with Sportsman's Warehouse, with a mix of different store presences. The shooting pods have been very effective in driving demos and conversions.

Question 12: Are you in Cabela's or trying to get into Cabela's?
Answer: Yes, we are in all Bass Pro Cabela's stores on a national basis since last October.

[Sentiment Analysis]
The tone of the analysts was positive, with a focus on understanding the company's growth strategies and future plans. Management was confident and provided detailed responses, highlighting ongoing initiatives and future prospects.

[Quarterly Comparison]
| Metric | Q3 2025 | Q3 2024 |
|-----------------------|---------------|---------------|
| Net Revenue | $28.2 million | $20.9 million |
| Gross Margin | 60% | 62% |
| Operating Expenses | $14.1 million | $12.2 million |
| Net Income | $2.2 million | $1 million |
| Adjusted EBITDA | $3.7 million | $1.9 million |
| Cash Position | $9 million | $25.7 million |
| Inventory | $34.1 million | $20 million |

[Risks and Concerns]
- Potential delays in order fulfillment during peak sales periods.
- Uncertainty in conversion rates as web traffic increases.
- Dependence on successful integration of new technologies and products.

[Final Takeaway]
Byrna Technologies demonstrated strong revenue growth and profitability in Q3 2025, driven by expanding retail channels and effective advertising campaigns. The company is focused on operational efficiency, inventory management, and developing a connected safety platform. Management's guidance for full-year revenue growth remains optimistic, supported by strong holiday demand signals. Investors should monitor the company's ability to maintain conversion rates and successfully launch new products and technologies in the coming year.