Oct 8, 2026 earnings call — Business transition, marketing, and margin progress
Adjusted gross margin improved to approximately 65%, with net revenue of $15.3 million for the quarter.
Revenue $0.0B (est $0.0B) · EPS $-0.13 (est $-0.16)
Key quotes
"Our focus since I arrived in March has been centered around 3 priorities: Improving customer conversion and retail productivity, transforming how Byrna builds demand, and enhancing operational efficiency across the business."
"Working alongside Acceleration Partners, we have now onboarded more than 50 creators into our social creator ecosystem that have a combined following of 3.8 million."
"The shift has produced an approximate gross margin benefit of 1,200 basis points in our ammunition, and we expect those benefits to continue moving forward."
Analyst Q&A 3
web sessions and wholesale sell-through
Q (Jeremy Hamblin · Craig-Hallum): He asked if web sessions and conversion improvements continued into September and whether conversion rates kept improving. He also wanted an update on retail door expansion and sell-through, timing for law enforcement/pro security investments, and if mid-60s gross margin is sustainable.
A: Management said they were encouraged by August sessions and conversion and expect to see improvements over Q3 through Q4. They said the previously announced retail partnerships are live but do not expect meaningful new doors during the holiday period, with door expansion picking up and ramping in 1Q next year; they plan to invest to drive sell-through and will use exclusive holiday bundles with some large chains. They said near-term focus remains on improving D2C, with incremental investments in law enforcement/professional security next year and that gross margin should be near the mid-60s going forward.
"We expect to see improvements over kind of the Q3 numbers throughout Q4, which we're excited about." — Conn Davis (CEO)
website conversion and HERO integration
Q (Matt Koranda · ROTH Capital Partners): He asked what current website conversion is (are they back to 1%) and if new influencers drive better conversion. He also asked about sell-through at mature retail partners and when HERO will be on Byrna.com.
A: They said overall conversion is north of 0.6% but not at 1%, with parts of the site (like the quiz) north of 1%, and they expect conversion to keep improving through 4Q. They said traffic from specific influencers converts at a higher rate than returning customers. They said sell-through has been lower than expected and they lack full store-level visibility, so they are adding e-commerce drop-ship, holiday bundles and co-op initiatives to help retail partners; they plan to integrate the HERO product on Byrna.com around SHOT Show in early January (today HERO is on Amazon).
"We are not at 1% from a conversion point at this point in time." — Conn Davis (CEO)
refurbished launchers and margin expansion
Q (Dillon Heins · B. Riley): He asked how big the refurbished launcher opportunity is and how much it contributes to gross margin. He also asked what other items could meaningfully expand margins and whether they have other similar acquisition opportunities like HERO.
A: They said the refurbished program is sporadic: they sold through available SD refurb launchers and just launched CL refurb; they will post refurbished units when they have enough inventory. They said the refurbished margin is slightly north of their overall gross margin and is accretive; they see further margin upside by sourcing better, focusing on accessories and manufacturing for new products, and by improving HERO's cost structure. They said HERO will be rolled out under the Byrna brand and integrated into their product suite.
"The margin is slightly north of where our overall gross margin is." — Laurilee Kearnes (CFO)