The Big Idea
The big idea behind today’s new addition is very simple.
We all want to protect ourselves, our family and our friends. But not everybody wants to own a gun or is comfortable with the prospect of shooting somebody and potentially killing them, even in self-defense.
This common dilemma has given rise to less lethal self-defense “gun” options that can stop attackers before things turn into hand-to-hand combat.
We’re not talking about Tasers and pepper spray canisters here. But rather a range of launchers that are essentially very powerful pellet guns, capable of shooting .61 and .68 caliber projectiles 60 to 100 feet at speeds up to 400 feet per second.
That’ll break a car window. And when the projectile is filled with pepper spray and tear gas, well … let’s just say it’s a pretty effective deterrent.
That type of power, packaged in what is essentially a small pistol, is an increasingly popular option for individuals that want to protect themselves and their loved ones without causing irreversible harm.
They are also an increasingly popular option for law enforcement and security applications, not to mention target practice for shooting enthusiasts.
Today’s new portfolio addition is an innovative small company that makes a range of these less-lethal firearms. Its mission is to allow its customers to protect and defend themselves, and their families, without resorting to deadly force.
The Company
Byrna Technologies (BYRN) is a $600 million market cap weapons manufacturer that sells a line of non-lethal self-defense weapons.
These weapons are branded as “handheld launchers” and use compressed CO2 cartridges to fire .61 and .68 caliber projectiles 60 to 100 feet at speeds up to 400 feet per second (fps).
Projectiles come in several forms, including solid rounds, chemical irritant rounds (pepper spray or tear gas) and powder-filled training rounds.
The company’s non-lethal launchers are designed for self-defense, law enforcement and security, and range from extremely small and lightweight handgun-style models up to assault-style rifles.
Byrna’s consumer devices require no permit or background check. You just need to be at least 18 years old.
Products are sold direct-to-consumer (DTC) through the company’s own website, www.byrna.com, at branded retail stores, major retailers, including Sportsman’s Warehouse (SPWH) and Bass Pro Shops, and, increasingly, through Amazon.
While most sales come from the U.S., the company is making progress internationally (8% of sales).
Management has been working hard to get new products launched, moving manufacturing and sourcing to the U.S., and shifting marketing away from traditional social media and more toward influencers and celebrity endorsers, including Sean Hannity and Glenn Beck. These initiatives all appear to be working.
If the Byrna story sounds somewhat familiar you may have heard of its predecessor company, Security Devices International. That company traded under the ticker symbol SDEV after its 2006 IPO, prior to rebranding as Byrna Technologies in March 2020.
The Technology & Products
There’s a lot of impressive tech packed into Byrna’s products. The company says the biggest challenge was packing enough stopping power into a small form factor.
If their handgun style launchers couldn’t fit into a side table, pocketbook or glove box, then nobody would buy them. They also needed to function like a real gun, with multiple rounds, adequate range, durability, and always-ready functionality.
On that last measure, one of the reasons Byrna’s products stand out from the competition is the company’s patented pull-pierce technology. This enables a CO2 cartridge to be stored in the launcher unpunctured until the first trigger pull, which pierces the cartridge at the same time as firing the first round.
That’s a valuable feature given the rather obvious disadvantages of storing a weapon for self-defense that needs a fresh cartridge installed before use. With a Byrna, this isn’t an issue. A launcher can be pulled out of a drawer a year after it was stashed there and be ready for action.
The image below shows some of the other technology in the pistol-style launcher.
Byrna’s website currently lists three less-lethal pistol models and two rifles as available for sale. Here are a few details on each:
Less-Lethal Pistols
- Byrna LE Launcher: The company’s most powerful handheld launcher fires .68 caliber rounds at speeds up to 330 fps with a light, 4-6 lb. trigger pull weight. It’s accurate up to 60 ft. Retail price: $480.
- Byrna SD Launcher: The best-selling SD (self-defense) launcher is good up to 50 ft. and sends a .68 caliber round at 280 fps. Retail price: $380.
- Byrna CL Launcher: The company’s newest less-lethal CL (Compact Launcher) pistol is also its smallest. It holds five rounds and will shoot a .61 caliber round at 400 fps up to 60 ft. Byrna says the CL’s smaller round has the same stopping power/energy density as the .68. Retail price: $550.
Less-Lethal Rifles
- Byrna TCR: The TCR (Tactical Compact Rifle) launcher has a military inspired design and holds up to 12 rounds. It sends a .68 caliber round up to 60 ft. at 295 fps. Retail price: $600.
- Byrna Mission 4: The Mission 4 was previously only available to law enforcement agencies but has been re-engineered for the consumer market. It has AR-15 styling, holds up to 19 rounds and launches a projectile up to 100 ft. at 325 fps.
Ammo, CO2 & Accessories
Naturally, Byrna sells all the consumables to go with the launchers, as well as a lot of accessories, including bags, apparel, body armor, personal safety alarms, and pepper spray and tear gas devices.
For ammo, the company’s Self-Defense Ammo comes in three varieties, one with a pepper and tear gas blend (Byrna Max), one with pepper spray (Byrna Pepper), and one reusable kinetic variety.
They are marketed as having some of the strongest chemical compositions on the market causing “burning in the throat, inability to breathe, shortness of breath, nausea and excruciating physical pain.” Sounds fun.
The company’s Training Ammo comes in three varieties: Byrna Kinetic (reusable), Byrna Pro Training (creates a cloud to simulate chemical irritant rounds) and Byrna Eco-Kinetic, a biodegradable variety. Byrna also sells a less lethal 12 gauge kinetic round that can be fired from any 12-gauge shotgun.
Growth Initiatives
Byrna CL Launch: The new Compact Launcher went into production on March 19 and is about 35% smaller and lighter than previous models. This powerful launcher is expected to be a big hit, especially among women.
Amazon Sales: Byrna’s recent distribution through Amazon appears to be taking off, with Q1 Amazon sales surpassing those at the company’s own website. The company is now treating Amazon as its own business center. Byrna is also launching Amazon’s Buy With Prime payment service on its own website to leverage lower shipping rates and avoid credit card fees, which net out to roughly equal Amazon’s fee for the service.
Sportsman Warehouse Launch: Byrna is currently launching a store-within-a-store pilot program at 13 Sportsman’s Warehouse locations across the U.S. These stores have a Byrna rep to help facilitate sales and also dedicated areas where customers can shoot the launchers. An additional 41 stores will carry Byrna’s point-of-sale displays and Byrna shooting lanes. This should be a very fruitful partnership given the increase in foot traffic vs. company-owned stores and because people are far more likely to buy a launcher once they have shot it.
Domestic Manufacturing & Sourcing: Byrna’s domestic shift means roughly 90% of the content in its launchers is sourced from within the U.S. And at the beginning of this year the company moved its ammo manufacturing machines from South Africa to the U.S. While some costs have gone up, control over its supply chain should be a competitive advantage.
Acquisitions: While there is nothing public in the works now, Byrna has been a strategic acquirer. In 2021 it acquired Mission Less Lethal and that tech helped it develop the Byrna TCR. And in 2022 it acquired Fox Labs International, which had a line of defensive pepper sprays targeting the law enforcement and security market.
Business Model
Byrna manufactures, distributes and sells less-lethal guns, ammo, and accessories. Manufacturing for domestic demand takes place in Fort Wayne, Indiana while overseas demand is handled by a facility in Pretoria, South Africa. The overhang threat of tariffs has pushed the company to manufacture and source nearly everything for domestic demand in the U.S., including projectiles.
The Bottom Line
After lackluster sales growth in 2023 (revenue was down 11%), Byrna delivered a big 2024. Revenue soared 101% to $85.8 million and net income ($12.8 million) turned positive for the first time in the company’s history. With gross margin expanding by over 6% to 61.5%, adjusted EPS came in at $0.82.
The company has had a strong start to 2025 as well. In Q1, which is typically the slowest quarter, revenue grew by 57% to $26.2 million (a 3.6% beat). Adjusted EPS of $0.09 beat by 7 cents.
Current analyst consensus suggests revenue should grow by 33% to $114 million this year and EPS should be around $0.47.
Risk
- Trendy Product and/or Stock: Consumer-oriented products like Byrna’s can be extremely popular for a couple of years, then suffer if there’s any sort of consumer backlash or market saturation. Think of things like the Solo Stove from Solo Brands, which is now a $6 million market cap company trading on the OTC exchange.
- Foot Traffic & Consumer Spending Trends: If foot traffic to partnership retailers, like the Sportsman Warehouse, falls off Byrna might not get the expected benefit. Similarly, if consumer spending falls the company will have a harder time selling its launchers.
- Tariffs: Despite Byrna’s efforts the company still sources some components that are subject to tariffs. Additionally, it’s possible the tariffs will go away in the future, in which case the company may end up paying more for parts than if it sourced more from overseas.
- Taxes: Byrna is transitioning into full taxpayer status this year and with anticipated momentum taxes will become somewhat of a headwind to EPS growth.
- Competition & Imitators: There are already cheap ammunition knock-off products, and Byrna’s launchers are also susceptible to less expensive imitation.
Competition
Axon Enterprise (AXON), which sells the TASER device, United Tactical Systems (PepperBall brand), Wrap Technologies (WRAP), which sells remote restraint devices.
The Stock
Trading Volume: BYRN trades an average of 500,000 shares daily ($13 million worth). It is unlikely we will have much of an impact on this stock.
Historical Price: BYRN was a hot stock when it uplisted to the NASDAQ during the pandemic. Prior to that event shares were trading for under 2.0, but by September 2021 BYRN was trading near 30. That proved to be a multi-year high. The stock was back below 10 in 2022 and briefly fell below 3 in late 2023, a year in which revenue shrank. Business and BYRN’s stock momentum picked up in 2024, however. While the uptrend was choppy and very much influenced by earnings announcements, shares approached the 20 level last October and finally broke through in December. BYRN hit multi-year highs near 35 after the Q4 earnings report in February. A sustained drawdown then pulled BYRN down to 13.7 by early April. But supported by the Q1 earnings report, momentum has come back to the name. BYRN broke above the 20 level and its major moving averages in late April, and has climbed to 26 since.
Valuation: BYRN trades with a forward EV/EBITDA multiple of 28, which is far less than the 79 multiple of AXON.
Short Term Buy Range: BYRN’s current trend suggests we should expect to buy in the 24.3 (level of 25-DMA) to 29 range in the next two weeks.
The Next Event: Q2 2025 earnings around July 15
Current Recommendations
| Ticker | Stock Name | Date Bought | Price Bought | 6/4/25 | Profit | Rating |
| AORT | Artivion | 6/5/24 | 23.3 | 28.7 | 23% | Buy |
| AVPT | AvePoint | 9/5/24 | 11.6 | 19.2 | 66% | Hold |
| AXGN | Axogen | 3/5/25 | 17.8 | 10.9 | -39% | Buy Half |
| BYRN | Byrna Technology | 6/5/25 | NEW | 26.5 | NEW | Buy |
| DCTH | Delcath Systems | 2/6/25 | 16.3 | 16.4 | 1% | Buy Half |
| ENVX | Enovix | 10/6/22 | 20.4 | 8.54 | -58% | Hold |
| FIP | FTAI Infrastructure | 8/1/24 | 10.2 | 6.13 | -40% | Buy |
| HANNF | Hannan Metals | 5/1/25 | 1.03 | 0.96 | -7% | Buy |
| NGVC | Natural Grocers | 4/3/25 | 40.4 | 45.7 | 13% | Buy Half |
| PPTA | Perpetua Resources | 12/4/24 | 10.7 | 17 | 59% | Buy Half |
Glossary
Buy means accumulate shares at or around the current price.
Hold means just that; hold what you have. Don’t buy, or sell, shares.
Sell means the original reasons for buying the stock no longer apply, and I recommend exiting the position.
Sell a Half means it’s time to take partial profits. Sell half (or whatever portion feels right to you) to lock in a gain, and hold on to the rest until another ratings change is issued.
Disclosure: Tyler Laundon owns shares in one or more of the stocks mentioned. He will only buy shares after he has shared his recommendation with Cabot Small-Cap Confidential members and will follow his rating guidelines.
Please note that, unless otherwise credited, all images in this Issue are sourced from Byrna Technologies’ website, which can be found here.
The next Cabot Small-Cap Confidential issue is scheduled for July 3, 2025.
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