BYRN

Byrna is a genuine growth story: FY2025 revenue of $118M (+37.7%) extends a sharp turn from three straight loss years (FY21–23) into a second profitable year, and operating income jumped 77.5% to $11.8M as the omnichannel push — wholesale/dealer sales up $21.6M, national partners like Sportsman's Warehouse, company retail stores, and an AI-driven ad engine — scaled up. The balance sheet is a real strength: liabilities/equity of just 0.28x, $65.8M equity against $18.7M total liabilities, and a 2.9x current ratio ($63.7M vs $17.1M). At $6.97 the stock trades at 17.4x EPS and 1.3x sales — undemanding for ~38% top-line growth and 14.7% ROE.

The wrinkles keep this a hold, not a buy. Net income fell 24.3% to $9.69M and diluted EPS dropped 27.3% to $0.40 — the prior year's $12.8M net exceeded its $6.7M operating profit (a tax/below-the-line benefit), so FY2025 is really the first fully normalized year, but the optics still show earnings going backward while the crowd sees 'record' operating results. More important, operating cash flow swung negative to -$1.57M despite $11.8M of operating income, and capex ballooned 224.8% to $7.62M — so free cash flow is roughly -$9M and cash fell 18.4% to $13.7M. Growth here is currently consuming cash, not generating it.