Shares of Byrna Technologies Inc. (BYRN) plummeted 5.70% in pre-market trading on Thursday following the release of the company's fiscal second quarter 2025 results. Despite reporting significant year-over-year growth, the less-lethal personal security solutions provider's performance appears to have fallen short of market expectations.

Byrna Technologies announced a 41% increase in net revenue to $28.5 million for Q2 2025, up from $20.3 million in the same period last year. The company's net income also saw a modest improvement, rising to $2.4 million from $2.1 million in Q2 2024. Adjusted EBITDA, a non-GAAP metric, grew to $4.3 million from $2.8 million in the prior year quarter.

However, investors seem to be focusing on potential headwinds highlighted in the company's report. Byrna's cash position declined significantly, with cash, cash equivalents, and marketable securities totaling $13.0 million at the end of May 2025, down from $25.7 million at the end of November 2024. This decrease was attributed to a planned increase in inventory ahead of new product launches and seasonal working capital movements. Additionally, CEO Bryan Ganz cautioned about subdued consumer sentiment, which may limit near-term revenue upside. These factors likely contributed to the negative market reaction despite the overall positive financial results.