Byrna Technologies (BYRN), a company that crafts less-lethal personal security solutions, saw tremendous growth in 2024, and with recently announced production expansions, it looks to keep the momentum going in 2025. The company surpassed its 500,000 launchers sold milestone late last year, leading it to ramp up its production capacities, with plans to produce 24,000 units per month starting in January 2025. Driven by effective marketing strategies and robust international sales, Byrna’s significant year-over-year growth points to a bright future as it normalizes the less-lethal personal security market for personal and law enforcement use.
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While it trades at a premium to industry peers, investors interested in the growth potential of this niche might find the stock appealing.
Global Expansion in 2025
Byrna is a technology firm that creates, produces, and sells non-lethal personal security solutions. The company’s primary product, the Byrna SD personal security device, is a CO2-powered handheld launcher. It offers a safer alternative to conventional firearms and is targeted at private consumers, security firms, and law enforcement agencies.
The company has seen accelerated demand, doubling the units sold in the past two years. A marketing campaign successfully leveraging celebrity influencers for brand awareness and revenue growth has primarily contributed to this success. Based on the growing demand, Byrna is making significant strides in expanding its manufacturing footprint with developments in its Latin American and U.S. markets.
In Latin America, the firm’s regional partner, Byrna LATAM, is increasing its manufacturing capacity in Argentina to produce 3,000 launchers per month starting in Q1 2025 and expand ammunition production.
Made in America
Simultaneously, in the U.S., Byrna announced plans to increase launcher production to 24,000 monthly units starting in January 2025 at its Fort Wayne, Indiana, facility. It will also initiate the production of its payload ammunition at a new facility close to the launcher factory to ensure the reliability of its supply chain and the quality of its products. In keeping with Byrna’s broader “Made in America” strategy, the company is transitioning to domestic suppliers, anticipating to source 100% of the components for the Byrna SD domestically by the end of 2025.
Byrna’s multi-regional manufacturing expansion will allow the company to meet growing global and regional demand, and these strategies are expected to generate approximately $1.5 million in royalty income for Byrna Technologies. Additionally, the transition to U.S.-based suppliers will reduce geopolitical risks, shorten lead times, enable Byrna to market the Byrna SD as a “Made-in-America” product, and ultimately lead to higher profit margins for the company.
Record-breaking Sales
The preliminary Q4 2024 results projected a total revenue of $28.0 million, a 79% increase from the prior year’s Q4 revenue of $15.6 million. The projected full-year revenue for 2024 is a record-breaking $85.8 million, a significant advancement from the reported $42.6 million in the Fiscal year 2023. This growth is mainly due to online sales, which skyrocketed to $8.9 million this year, representing 76% of the total sales in Q4. International sales also saw a yearly increase of $1.0 million, including $43,000 of royalty revenue from a new agreement with Byrna LATAM.
The company’s Black Friday and Cyber Monday sales results are not in Q4 or full-year 2024 results because of the company’s fiscal year-end timing. These sales will instead be reported in Q1 2025. However, Byrna announced record-breaking sales during those events, exceeding $2.4 million in revenue across Byrna.com and Amazon.com, with a total order value of 91% from the same period in 2023.
The company anticipates that the continued growth of Direct-to-Consumer (DTC) sales, the launch of new Byrna-owned retail stores, and the upcoming release of a compact launcher will significantly bolster the company’s growth potential in 2025.
Analysts Are Bullish
The stock has been trending upward, climbing over 380% in the past year. It trades near the top end of its 52-week price range of $5.36 – $31.32 and shows ongoing positive price momentum by trading above the 20-day (26.76) and 50-day (26.64) moving averages. The steady climb in share price has driven the stock to a P/S ratio of 8.63x, which reflects a healthy premium to the peers in the Industrials sector, where the average P/S ratio is 1.51x.
Wall Street analysts have been constructive on the stock. Roth MKM analyst Matt Koranda recently raised the price target to $23 (from $22) while maintaining a Buy rating on the shares. He noted the strength of the preliminary sales numbers for Q4, which did not rely on holiday promotions, and the year-over-year sales growth in its direct channel, which was robust despite a challenging fiscal year comparison.
Based on two analysts’ recent recommendations, Byrna Technologies is rated a Moderate Buy overall. However, their average price target for BYRN stock is $22.38, representing a potential -25.42% downside from current levels.
Bottom Line on BYRN
Byrna has experienced notable growth driven by successful marketing and increased international sales. It plans to boost production in Argentina and the U.S. to meet global demand, enhancing supply chain reliability and product quality. 2024 is expected to break records with $85.8 million in revenue, mainly from online and international sales. Byrna aims to maintain this in 2025 through direct-to-consumer growth, new retail stores, and a new product launch. Its growth trajectory may appeal to investors willing to pay a premium.
