Byrna Technologies, Inc.

Good morning. Welcome to Berna's fiscal fourth quarter and full year 2025 earnings conference call. My name is Kevin and I'll be your operator for today's call. Joining us for today's presentation are the company's CEO, Brian Gads, and CFO, Lori Kearns. Following the remarks, we'll open the call for questions. Earlier today, Berna released results for its fiscal fourth quarter and full year ended November 30th, 2025. A copy of the press release is available on the company's website. Before turning the call over to Brian Ganz, Berna Technologies' Chief Executive Officer, I'll read the Safe Harbor Statement. Some discussions held today include forward-looking statements. Actual results could differ materially from the statements made today. Please refer to Berna's most recent 10-K and 10-Q filings for a more complete description of risk factors that could affect these projections and assumptions. The company assumes no obligation to update forward-looking statements as a result of new information, future events, or otherwise. As this call will include references to non-GAAP results, please see the press release in the investor section of our website, ir.berna.com, for further information regarding forward-looking statements and reconciliations of non-GAAP results to GAAP results. Now, I'll turn the call over to Berna's CEO, Brian Ganz. Sir, please proceed.

Thank you, Kevin, and thank you, everyone, for joining us today. This morning, we issued a press release providing our financial results and business highlights for the fiscal fourth quarter and full year ended November 30, 2025. I'll start this morning by turning the call over to our CFO, Laurie Kearns, who will review our financial results for the period. Following her remarks, I'll discuss the operational highlights that drove our $35.2 million in revenue and continued GAAP and non-GAAP EBITDA profitability for the fourth quarter. I'll then offer insights into our strategy moving forward before we open the call to questions from our covering research analysts. Laurie?

Thank you, Brian, and good morning, everyone. Let's review our financial results for fiscal Q4 and the full year ended November 30th, 2025. Net revenue for Q4 2025 was $35.2 million, a 26% increase from the $28 million reported in the fiscal fourth quarter of 2024. The $7.2 million increase is primarily due to strong dealer and chain store performance, with direct-to-consumer and international channels contributing solid year-over-year growth. The comparison also reflects growth over a particularly strong fiscal fourth quarter of 2024 when demand was elevated around the U.S. election. For the full year 2025, net revenue totaled $118.1 million, up 38% from $85.8 million in 2024. This increase was driven by the company's expanded brand visibility, the broadening physical retail presence, and the successful launch of the Berna CL. Gross profit for Q4 2025 was 21.1 million, or 60% of net revenue, compared to 17.6 million, or 63% of net revenue for Q4 2024. The increase in gross profit was driven by the increase in overall sales. Gross margin decline was primarily due to the greater mix of dealer and chain store sales as well as the continued amortization of startup costs associated with the introduction of the CL launcher and transfer of the ammunition factory from South Africa to Fort Wayne, Indiana. For the full year 2025, gross profit was $71.5 million, or 61% of net revenue, compared to $52.8 million, or 62% of net revenue, for the same period in 2024. This $18.7 million increase in gross profit was due to the increase in total revenue for the year. The 1% decrease in gross profit margin was once again primarily due to the amortization of product costs associated with the introduction of the groundbreaking new CL launcher and the startup of our new ammunition facility in Fort Wayne, Indiana. Closing the South African operation is expected to save the company $1.5 million in 2026. Burna expects margin improvement in fiscal 2026 as one-time startup costs associated with the new CL launcher and the new ammunition factory are completed. Additionally, we implemented a broad-based price increase of 4% to 5% as of February 1, 2026. And at the same time, we introduced the new BRNA CL XL, expanding the number of variants for the high-margin BRNA CL launcher. Operating expenses for Q4 2025 were $17.1 million, compared to $13.5 million for Q4 2024. The increase reflected higher advertising expenses and marketing costs to support the rollout of more than 500 additional chain store locations in Q4. The company also increased headcount in its marketing and engineering department as part of its strategic investment in exciting new products and the new markets they will open for Berna. This investment is expected to drive significant growth starting later in 2026 and beyond. For the full year 2025, operating expenses were $59.6 million compared to $46.1 million for the same period in 2024, reflecting a 29% year-over-year increase to support our growth. The $13.5 million increase supported the revenue increase and was used to drive consumer awareness of both Burna and the less lethal product category. At the same time, the company invested in retail, marketing, and engineering. Net income for Q4 2025 was $3.4 million compared to $9.7 million for Q4 2024. This decrease was primarily driven by a $5.6 million income tax benefit that occurred in the prior year period. The tax benefit arose from the release of tax valuation allowances related to net operating loss carry-forwards and other tax assets. For the full year 2025, net income was $9.7 million, down from $12.8 million in the prior year period. Excluding the $5.6 million tax benefit from Q4 2024, net income improved by $2.5 million. Adjusted EBITDA, a non-GAAP metric for Q4 2025, totaled $6 million, compared to $5 million in Q4 2024. This brings adjusted EBITDA for the full year 2025 to $16.8 million compared to $11.5 million in the prior year. Cash, cash equivalents, and marketable securities at November 30th, 2025 totaled $15.5 million compared to $25.7 million at November 30th, 2024. Inventory at November 30th, 2025 totaled $32.7 million compared to 20 million at November 30th, 2024. We expect the end of the fiscal first quarter to be a low point in inventory, and then we will begin to build it back up to support the ramping. Subsequent to quarter end, the company entered into a $20 million credit facility with Texas Capital Bank. This is made up of a $5 million revolving line of credit and a $15 million delayed term draw. This credit facility is intended to support strategic growth initiatives, including potential acquisitions. I will now pass the call back to Brian for additional insights into our performance. Brian?