Investment Thesis
Byrna demonstrates impressive top-line growth (37.7% YoY) with healthy gross margins (42.2%) and an exceptionally strong balance sheet, but is deeply unprofitable with a $11.9M operating loss, negative operating cash flow (-$3.0M), and deteriorating net losses (-24.3% YoY) despite revenue growth. The company is burning cash operationally with no clear path to profitability, making long-term sustainability questionable despite near-term balance sheet cushion.
Strengths
- Strong revenue growth of 37.7% YoY demonstrating market demand and product traction
- Healthy gross margins of 42.2% indicating strong product unit economics and pricing power
- Exceptional balance sheet with zero net debt (0.00x D/E), $57M stockholders equity, and only $217K long-term debt
- Outstanding liquidity with current ratio of 4.86x providing substantial operational flexibility
- Adequate cash position of $9.4M relative to liability obligations
Risks
- Unprofitable operations with -$11.9M operating loss (-26.2% margin) indicating expenses exceed gross profit despite revenue scale
- Negative cash flow with -$3.0M operating cash flow and -$4.2M free cash flow showing unsustainable cash burn
- Deteriorating profitability trend with net losses worsening 24.3% YoY despite revenue growth, signaling operational challenges
- Unclear path to profitability; operating expenses at ~68% of revenue with no evidence of margin expansion or operating leverage
- Finite cash runway; continued cash burn at current rates will exhaust $9.4M cash position within 2-3 years without achieving cash flow positive status
Key Metrics to Watch
- Operating cash flow trend and timeline to breakeven—critical metric for long-term viability
- Operating margin progression and operating expense ratio as percentage of revenue—need evidence of operating leverage
- Path to GAAP profitability and achievable timeline for operating income breakeven
- Cash burn rate and remaining runway at current consumption levels
Financial Metrics
Revenue
45.4M
Net Income
-9.3M
EPS (Diluted)
$-0.41
Free Cash Flow
-4.2M
Total Assets
68.4M
Cash
9.4M
Profitability Ratios
Gross Margin
42.2%
Operating Margin
-26.2%
Net Margin
-20.4%
ROE
-16.3%
ROA
-13.6%
FCF Margin
-9.2%
Balance Sheet & Liquidity
Current Ratio
4.86x
Quick Ratio
1.86x
Debt/Equity
0.00x
Debt/Assets
16.7%
Interest Coverage
-322.11x
Long-term Debt
217.2K
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-08-05T06:05:20.938247 |
Data as of: 2026-05-31 |
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