Byrna (NASDAQ: BYRN) completes HERO deal as revenue falls

What happened

Byrna Technologies Inc. (NASDAQ: BYRN) said it completed the HERO Defense Systems, LLC acquisition and reported Q3 2026 results on October 8, 2026. Byrna said HERO adds to its product lineup with more price points and form factors.

Net revenue was $15.3 million, down from $28.2 million in the fiscal third quarter of 2025. Gross profit was $12.2 million and adjusted EBITDA was $(1.4) million. Cash, cash equivalents and marketable securities were $9.4 million, and inventory was $30.0 million as of August 31, 2026.

The release said Byrna onboarded more than 50 influencers with a combined following of 3.8 million people. It also said the company sold through all available refurbished inventory.

Outsourced ammunition production improved ammunition gross margins by about 1,200 basis points in the quarter. Gross profit included a one-time $2.3 million refund of previously paid tariffs. Excluding that item, adjusted gross profit was $9.9 million and adjusted gross margin was about 65%, versus 60% in Q3 2025.

Key numbers

Metric	Latest	Change	Source
Net revenue	$15.3 million	from $28.2 million, -$12.9 million	Byrna Q3 2026 results press release
Gross profit	$12.2 million	from $16.9 million, -$4.7 million	Byrna Q3 2026 results press release
Adjusted EBITDA	-$1.4 million	from $4.1 million, -$5.5 million	Byrna Q3 2026 results press release
Cash, cash equivalents and marketable securities	$9.4 million	from $9.0 million, + $0.4 million	Byrna Q3 2026 results press release
Inventory	$30.0 million	from $34.1 million, -$4.1 million	Byrna Q3 2026 results press release

Read more: Byrna Technologies (BYRN) stock analysis and investment case

Why it matters

OptimistFi's case is that Byrna can use omnichannel reach and product expansion to drive durable profitable growth. This filing is mixed for that view. HERO broadens the portfolio, but revenue fell $12.9 million, or about 46%, year over year.

The release said the higher adjusted gross margin came mainly from manufacturing efficiency gains and a continued shift to higher margin products. It also said the company averaged more than 29,000 website sessions per day in August, the highest since March.

Website conversion improved from June to August. Byrna said it also reallocated marketing investments within iHeartMedia toward The Bobby Bones Show. It added Jim White and Nate Secor to its leadership team.

Operating expenses were $15.1 million, up 7%, and $1.7 million in other one-time costs weighed on the quarter. The revenue decline was driven mainly by weaker e-commerce sales and slower reorder activity from dealers and chain stores after substantial restocking in fiscal Q1.

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What's next

Management will discuss the quarter on a conference call today, October 8, 2026, at 9:00 a.m. Eastern time. Revenue stabilizing and margin gains holding would strengthen the case. Another quarter of falling sales and negative adjusted EBITDA would weaken it.

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