Byrna Technologies Inc (BYRN) 2026 Q2 法說會逐字稿

Good morning. Welcome to Byrna's fiscal second quarter 2026 earnings conference call. My name is Rob, and I'll be your operator for today's call.

早安。歡迎參加 Byrna 2026 會計年度第二季財報電話會議。我是 Rob，將擔任今天會議的接線員。

Joining us for today's presentation are the company's CEO, Conn Davis; and CFO, Lauri Kearnes. Following their remarks, we will open the call to questions.

今天與會簡報的有公司執行長 Conn Davis 以及財務長 Lauri Kearnes。在他們的發言之後，我們將開放提問。

Earlier today, Byrna released results for its fiscal second quarter ended May 31, 2026, and a copy of the press release is available on the company's website.

今天稍早，Byrna 公布了截至 2026 年 5 月 31 日止之 2026 會計年度第二季業績，新聞稿副本可於公司網站取得。

Before turning the call over to Conn Davis, Byrna Technologies Chief Executive Officer, I'll read the safe harbor statement. Some discussions held today include forward-looking statements.

在把電話交給 Byrna Technologies 執行長 Conn Davis 之前，我將宣讀安全港聲明。今天的部分討論將包含前瞻性陳述。

Actual results could differ materially from the statements made today. Please refer to Byrna's most recent 10-K and 10-Q filings for a more complete description of risk factors that could affect these projections and assumptions.

實際結果可能與今日所作陳述有重大差異。請參閱 Byrna 最新的 10-K 與 10-Q 申報文件，以取得可能影響這些預測與假設之風險因素的更完整說明。

The company assumes no obligation to update forward-looking statements as a result of new information, future events or otherwise.

公司不承擔因新資訊、未來事件或其他原因而更新前瞻性陳述之義務。

As this call will include references to non-GAAP results, please see the press release in the Investors section of our website ir.byrna.com, further information regarding forward-looking statements and reconciliations of non-GAAP results to GAAP results.

由於本次電話會議將提及非 GAAP 結果，請參閱我們網站 ir.byrna.com 投資人專區中的新聞稿，以取得關於前瞻性陳述以及非 GAAP 結果與 GAAP 結果之調節的進一步資訊。

Now I'd like to turn the call over to Byrna's CEO, Conn Davis. Sir, please proceed.

現在我想把電話交給 Byrna 執行長 Conn Davis。先生，請開始。

Thank you, operator, and thank you, everyone, for joining us today. Q2 came in below our expectations with revenue of $16.4 million and did not reflect the level of performance we believe Byrna can deliver.

謝謝接線員，也謝謝各位今天加入我們。第二季表現低於我們的預期，營收為 1,640 萬美元，未能反映我們相信 Byrna 能夠達成的績效水準。

We entered the quarter knowing it would represent the beginning of a transition period as we worked to improve direct-to-consumer conversion retail productivity and the discipline and structure of our operations.

我們在進入本季時就知道，這將是轉型期的開始；我們致力於改善直面消費者（DTC）的轉換率、提升零售端生產力，以及強化營運的紀律與架構。

The quarter ultimately became a steeper reset than we originally expected, and the results reinforced why the transformation underway is necessary and why we are moving with urgency.

本季最終成為比我們原先預期更陡峭的一次重整，而結果也再次印證：正在進行的轉型是必要的，且我們必須以緊迫感推進。

These results were driven by two things first, the e-commerce pressure we discussed on our Q1 call continued with website traffic down 13% through the quarter year-over-year.

這些結果主要由兩個因素驅動：第一，我們在第一季電話會議中提到的電商壓力持續存在，本季網站流量年減 13%。

Second, in retail, many partners entered the quarter with elevated inventory levels following meaningful post-holiday restocking in Q1, and sell-through during that quarter didn't support the level of reorders we had incorporated into our plan.

第二，在零售方面，許多合作夥伴在第一季假期後進行了顯著補貨，導致本季初庫存水位偏高，而第一季的銷售出清（sell-through）並未支撐我們納入計畫中的再訂貨量。

Those challenges came together during the quarter and drove revenue below our expectations. Q2 sharpened our priorities and accelerated decisions.

這些挑戰在本季交織發生，使營收低於我們的預期。第二季讓我們更聚焦優先事項並加速決策。

The results are important but they do not tell the full story of Byrna or the work underway across the business.

這些結果很重要，但它們並未完整呈現 Byrna 的全貌，也未能反映公司各項工作正在推進的進度。

During the quarter, we started implementing tactical changes to demand generation and our cost structure with more in motion as we transition the Byrna brand more fully during the balance of fiscal 2026.

在本季期間，我們開始在需求創造與成本結構上推動戰術性調整；隨著我們在 2026 會計年度剩餘期間更全面地轉換 Byrna 品牌，還有更多措施正在進行中。

These changes will take time to show up in revenue, but we believe they are the right ones that will allow us to return to growth.

這些改變需要時間才會反映在營收上，但我們相信這些是正確的調整，將使我們能夠重回成長。

A few weeks ago, I issued my first 100-day shareholder letter. The letter, which is available in the Investor Relations section of our website, established a reference point for where Byrna stands today where execution has fallen short and what we are changing to position Byrna to capture the opportunity ahead in less lethal personal safety.

幾週前，我發布了我的第一封「上任 100 天」股東信。該信可於我們網站的投資人關係專區取得，並建立了一個參考基準，說明 Byrna 目前的狀況、執行上不足之處，以及我們正在做哪些改變，以使 Byrna 能在「較不致命」的個人安全領域把握未來機會。

Today, I want to build on the letter by connecting our three key near-term priorities directly to what Q2 showed us and detailing the work now underway against each.

今天，我想在該信的基礎上，將我們三項近期關鍵優先事項與第二季帶給我們的啟示直接連結，並說明針對每一項目前正在進行的工作。

Our first priority is consumer conversion and retail productivity. Byrna has created a solid base of awareness with a core audience and our products were available in roughly 1,500 retailer and dealer locations nationwide at quarter end.

我們的第一項優先事項是消費者轉換與零售生產力。Byrna 已在核心受眾中建立了穩固的品牌認知度，截至季末，我們的產品在全美約 1,500 個零售商與經銷商據點上架。

Our focus now is on turning our expanding reach into purchases repeat engagement and consumer advocacy.

我們現在的重點，是把不斷擴大的觸及轉化為購買、重複互動與消費者口碑推薦。

We know that the strongest results come when consumers understand the product are able to compare options and experience burner directly. So our work under this priority is to make the consumer journey easier and more consistent online and in stores.

我們知道，當消費者了解產品、能夠比較選項，並能直接體驗 Byrna 時，成果最強。因此，在此優先事項下，我們的工作是讓消費者旅程在線上與門市端更容易且更一致。

The second priority is changing how Byrna builds demand. The narrow reach behind our Q2 traffic softness reflects a structural issue.

第二項優先事項是改變 Byrna 建立需求的方式。第二季流量走弱背後的觸及面狹窄，反映出一個結構性問題。

Historically, Byrna has relied too heavily on a relatively narrow audience and lack the visibility into which messages, media channels and partnerships actually produce to consumers.

過去，Byrna 過度依賴相對狹窄的受眾，且缺乏對於哪些訊息、媒體渠道與合作夥伴關係真正帶來消費者的可視性。

We are actively changing our message to consumers and the way sales and marketing operate with the goal of reaching more people without losing the core consumer. We are building a systematic approach to demand generation that will allow us to better attribute traffic, conversion and retail sell-through over time.

我們正積極調整對消費者的訊息與銷售、行銷的運作方式，目標是在不流失核心消費者的前提下觸及更多人。我們正在建立一套系統化的需求創造方法，使我們能隨時間更好地歸因流量、轉換率與零售端銷售出清。

The third priority is connecting demand more tightly to production, inventory and cash generation.

第三項優先事項是讓需求與生產、庫存與現金創造更緊密連結。

We are building a rolling financial and operating model that brings together elements such as website trends, retail sell-through, partner inventory, confirmed orders and manufacturing capacity to help us produce and purchase against visible demand trends.

我們正在建立一個滾動式財務與營運模型，整合網站趨勢、零售端銷售出清、合作夥伴庫存、已確認訂單與製造產能等要素，協助我們依據可見的需求趨勢進行生產與採購。

As the business returns to growth, our disciplined model should drive margin expansion, lower working capital and better cash conversion.

隨著業務重回成長，我們的紀律化模型應能推動毛利率擴張、降低營運資金占用，並改善現金轉換。

These priorities are all connected. Better marketing brings more qualified consumers into the funnel, better online and retail execution turns new interest into sales more effectively and more refined forecasting and production lets those sales flow through to the bottom line more efficiently.

這些優先事項彼此相互連結。更好的行銷能把更多高品質消費者帶入漏斗；更好的線上與零售端執行能更有效地把新興興趣轉化為銷售；而更精準的預測與生產則能讓這些銷售更有效率地反映到最終獲利。

When these pieces work together, Byrna becomes a more predictable and scalable business. Before getting into our progress against these priorities in greater detail.

當這些環節協同運作時，Byrna 將成為更可預測且更具可擴展性的企業。在更詳細說明我們在這些優先事項上的進展之前。

I'll turn it over to Lauri to walk through the financial results. Lauri?

我先把時間交給 Lauri，請她帶大家回顧財務結果。Lauri？

Thank you, Conn, and good morning, everyone. Let's review our financial results the fiscal second quarter ended May 31, 2026. Net revenue for Q2 2026 was $16.4 million compared to $28.5 million in the prior year period.

謝謝你，Conn，各位早安。我們來回顧截至 2026 年 5 月 31 日止之 2026 會計年度第二季財務結果。2026 年第二季淨營收為 1,640 萬美元，較去年同期的 2,850 萬美元下降。

E-commerce sales through our website at Amazon decreased by $5.8 million or 35% compared to the prior year due to a reduction in traffic and lower conversion rates. Our domestic dealer channel, including dealers, distributors and chain stores decreased $3.5 million or 47%.

透過我們網站及 Amazon 的電商銷售較去年同期減少 580 萬美元（或 35%），主因為流量下降與轉換率降低。我們的美國國內經銷通路（包含經銷商、分銷商與連鎖門市）減少 350 萬美元（或 47%）。

This was mainly due to the slower reorder activity following substantial restocking in fiscal Q1 and slower-than-expected sell-through.

這主要是因為在 2026 會計年度第一季大幅補貨後，再訂貨活動放緩，以及銷售出清速度低於預期。

Product sales through our international dealer and distributor channel decreased $1.2 million or 43% due to large orders last year that were not repeated in the current year. Gross profit for Q2 2026 was $1.8 million or 11% of net revenue compared to $17.6 million or 62% of net revenue for Q2 2025.

透過國際經銷商與分銷商通路的產品銷售較去年同期減少 120 萬美元（或 43%），原因是去年有大額訂單，而今年未再重複。2026 年第二季毛利為 180 萬美元，約占淨營收 11%；相較之下，2025 年第二季毛利為 1,760 萬美元，約占淨營收 62%。

The reported gross margin included onetime $3.6 million inventory write-down, a $3.5 million impairment loss on manufacturing equipment and a $2.3 million inventory reserve due to strategic product rationalization.

所報告的毛利率包含一次性 360 萬美元的存貨減記、350 萬美元的製造設備減損損失，以及因策略性產品精簡而提列的 230 萬美元存貨備抵。

These were partially offset by a $1.1 million tariff refund recorded in cost of goods sold. Excluding these items, adjusted gross profit was $10.1 million, representing adjusted gross margin of approximately 62%.

上述項目部分被計入銷貨成本的 110 萬美元關稅退稅所抵銷。排除這些項目後，調整後毛利為 1,010 萬美元，調整後毛利率約為 62%。

We expect our adjusted gross margin to remain near or above this level through the balance of the year. The inventory write-down of $3.6 million and the $3.5 million impairment loss were directly related to the closure of our Fort Wayne ammunition manufacturing facility.

我們預期調整後毛利率在今年剩餘期間將維持在接近或高於此水準。360 萬美元的存貨減記與 350 萬美元的減損損失，皆與我們關閉 Fort Wayne 彈藥製造廠直接相關。

The additional $2.3 million inventory reserve was a combination of finished goods and raw materials that will either end of life or will not be used due to engineering process changes.

額外的 230 萬美元存貨備抵，係由成品與原物料組成，這些存貨將到達產品生命週期末端，或因工程流程變更而不再使用。

Operating expenses for Q2 2026 were $14.6 million compared to $14.2 million for Q2 2025, an increase of 3%. The increase primarily reflected an impairment charge of $1 million as well as continued investment in marketing, partially offset by the change in variable selling expenses associated with a decrease in sales.

2026 年第二季的營業費用為 1,460 萬美元，較 2025 年第二季的 1,420 萬美元增加 3%。該增加主要反映 100 萬美元的減損費用，以及持續投入行銷，部分被因銷售下滑而導致之與變動性銷售費用相關的變動所抵銷。

During the second half, we expect incremental expense as our new commercial and consumer acquisition programs ramped.

在下半年，隨著我們新的商業與消費者獲客計畫加速推進，我們預期將產生額外費用。

Those investments will precede their full potential revenue contributions and outside of those targeted areas, we are managing spending against the current revenue base, and continuing to evaluate costs. Net loss for Q2 2026 was $10.1 million compared to net income of $2.4 million for Q2 2025.

這些投資將先於其完整的潛在營收貢獻；而在這些目標領域之外，我們正以目前的營收基礎來管理支出，並持續評估成本。2026 年第二季淨損為 1,010 萬美元，相較之下 2025 年第二季為淨利 240 萬美元。

Net loss included noncash impairment and inventory write-down charges of $10.4 million related to the shutdown of our ammunition manufacturing facility in Fort Wayne and product rationalization. A tax benefit of $2.7 million was also recorded for the quarter.

淨損包含與關閉我們位於 Fort Wayne 的彈藥製造設施及產品精簡相關的 1,040 萬美元非現金減損與存貨沖銷費用。本季亦認列 270 萬美元的稅務利益。

Adjusted EBITDA, a non-GAAP metric for Q2 2026 was negative $600,000 compared to $4.3 million for Q2 2025. Cash, cash equivalents and marketable securities on May 31, 2026, totaled $10.4 million compared to $9.6 million on February 28, '26 and $15.5 million on November 30, 2025.

2026 年第二季調整後 EBITDA（非 GAAP 指標）為負 60 萬美元，較 2025 年第二季的 430 萬美元為低。截至 2026 年 5 月 31 日，現金、約當現金及有價證券合計為 1,040 萬美元，相較 2026 年 2 月 28 日為 960 萬美元，以及 2025 年 11 月 30 日為 1,550 萬美元。

Collections of accounts receivable supported cash during the quarter, and we ended the quarter with no debt. Inventory on May 31, 2026, totaled $30.4 million compared with $33.1 million on February 28, 2026, and $32.7 million on November 30, 2025. The decline in reported inventory primarily reflected the write-down discussed earlier.

本季應收帳款回收支撐了現金水位，且我們在季末無任何負債。截至 2026 年 5 月 31 日，存貨合計為 3,040 萬美元，相較 2026 年 2 月 28 日為 3,310 萬美元，以及 2025 年 11 月 30 日為 3,270 萬美元。帳面存貨下降主要反映前述的沖銷。

We remain focused on reducing physical inventory and improving working capital efficiently. We continue to expect inventory turns to approach 2 times by year-end.

我們仍專注於降低實體存貨並有效提升營運資金效率。我們仍預期存貨周轉率在年底前將接近 2 次。

I will now pass the call back to Conn to discuss what we learned during the quarter and the actions underway across the business. Conn?

我現在把電話交回給 Conn，請他說明我們在本季的學習，以及全公司正在推動的行動。Conn？

Thank you, Lauri. At the time of our Q1 call, website traffic was generally holding and conversion was the primary issue. During Q2, traffic weakened as well.

謝謝你，Lauri。在我們第一季電話會議時，網站流量大致持平，主要問題在於轉換率。到了第二季，流量也轉弱了。

Byrna.com generated approximately 2.6 million sessions, down 13% year-over-year. Conversion averaged 0.59% compared with 1% in Q2 2025 and average order value declined 19% to approximately $302.

Byrna.com 約產生 260 萬次工作階段（sessions），年減 13%。轉換率平均為 0.59%，相較 2025 年第二季的 1%；平均訂單金額（AOV）下降 19% 至約 302 美元。

Byrna.com sessions declined from approximately $1.1 million in March to roughly $783,000 in April and $779,000 in May.

Byrna.com 的工作階段數從 3 月約 110 萬次下降至 4 月約 78.3 萬次，以及 5 月約 77.9 萬次。

During the quarter, we continued to spend through many of our historical media and influencer relationships. But those channels generated less traffic and fewer purchases.

本季我們仍持續在許多歷史媒體與網紅合作關係上投入支出。但這些渠道帶來的流量與購買數都更少。

The performance reinforced our need to address both sides of the funnel, how we bring people to byrna.com and what happens after they arrive.

這樣的表現再次強化我們必須同時處理漏斗兩端：我們如何把人帶到 byrna.com，以及他們到達後會發生什麼。

Our find to the right launcher experience online shows the positive impact of better education.

我們線上的「找到適合的發射器」體驗顯示，更好的教育能帶來正面影響。

More than 150,000 responses have been completed, and those consumers continue to convert at approximately twice the rate of the overall website.

目前已完成超過 150,000 份回覆，而這些消費者的轉換率持續約為整體網站的兩倍。

The quiz responses are also telling us why consumers are considering Byrna, which products fit their needs and where the website might be leaving questions unanswered.

這些測驗回覆也在告訴我們：消費者為何考慮 Byrna、哪些產品符合其需求，以及網站在哪些地方可能仍有問題未被解答。

Just over 7% of all byrna.com visitors are engaging with and completing our find the right launcher experience and we are working to highlight the experience better across the site.

在所有 byrna.com 訪客中，略高於 7% 會參與並完成我們的「找到適合的發射器」體驗；我們正努力在全站更醒目地呈現這個體驗。

More importantly, we are now using the data gained from this experience to improve product comparisons, landing pages, consumer onboarding and follow-up communications.

更重要的是，我們現在正運用從這個體驗取得的數據，來改善產品比較、著陸頁、消費者導入流程以及後續溝通。

Within the next two weeks, we will be launching personalized experiences and guided product selection across byrna.com.

在接下來兩週內，我們將在 byrna.com 上推出個人化體驗與引導式產品選擇。

These are the first steps in an ongoing process to improve our digital experience and conversion using our proprietary data.

這些是持續流程的第一步，目標是運用我們的專有數據來改善數位體驗與轉換率。

Our limited try before you buy program addresses the same education gap through direct product experience. A consumer pays $50 to receive a demonstration unit, training ammunition, CO2 and educational materials for a two week trial.

我們有限度的「先試用再購買」計畫，透過直接的產品體驗來彌補同樣的教育落差。消費者支付 50 美元即可獲得一台示範機、訓練彈藥、CO2 以及為期兩週試用的教育材料。

This fee covers the principal program costs and becomes a $50 purchase credit. The program has generated strong conversion near 30%.

此費用涵蓋該計畫的主要成本，並可轉為 50 美元的購買抵用金。該計畫帶來接近 30% 的強勁轉換率。

Most participants are new to Byrna and purchasers are generally adding ammunition and accessories at healthy rates.

多數參與者是 Byrna 的新客，而購買者通常也會以良好的比例加購彈藥與配件。

The test has been small and has not yet meaningfully contributed to revenue but we are currently evaluating the processes and economics required to expand it responsibly.

此測試規模仍小，尚未對營收做出顯著貢獻，但我們目前正在評估負責任擴大所需的流程與經濟性。

Given the success of the program, we are expanding it beyond an initial test so that 8x the number of consumers will be able to participate in the next phase of the program. The same core principle of improving education applies in our retail channel as well.

鑑於該計畫的成功，我們正將其擴大至超越初始測試，使下一階段可參與的消費者人數達到原先的 8 倍。同樣以提升教育為核心的原則，也適用於我們的零售通路。

Byrna performs better when consumers are able to understand the differences across the product lineup and receive useful guidance from store associates.

當消費者能理解產品線之間的差異，並從門市人員獲得有用的建議時，Byrna 的表現會更好。

During the quarter, we worked with one of our premier chain partners to move from basic shelf placements to dedicated Byrna in caps across more than 20 stores. Before the change, the partner averaged approximately 81,000 in monthly purchases.

本季我們與一家頂級連鎖合作夥伴合作，將陳列從基本的貨架擺放，提升為在 20 多家門市設置專屬 Byrna 端架（end caps）。在變更前，該合作夥伴每月平均採購約 81,000 美元。

Purchases increased to approximately $200,000 in April, the first full month after the rollout and expanded product assortment.

採購額在 4 月（導入與擴充產品組合後的第一個完整月份）增加至約 200,000 美元。

Every location with this chain partner has placed a stocking order since the new program begin. These results don't mean every retail store will produce these same increases, but they show how we can materially support partner load-ins and revenue.

自新計畫開始以來，與該連鎖合作夥伴的每個據點都已下達補貨訂單。這些結果並不代表每一家零售門市都會出現同樣的增幅，但它們顯示我們能在合作夥伴上架導入與營收方面提供實質支持。

We are applying our learnings across the footprint now and working more closely with our partners on inventory planning and improving sell-through.

我們正將這些學習應用到整體據點版圖，並與合作夥伴更緊密合作進行存貨規劃與提升銷售速度（sell-through）。

The CL platform continued to gain share during Q2 represented more than 40% of launcher sales in retail. The CL accounted for an even greater share in Byrna owned stores and at some of our higher performing partners.

CL 平台在第二季持續提升市占，在零售通路中占發射器銷售的 40% 以上。在 Byrna 自營門市以及部分表現較佳的合作夥伴中，CL 的占比更高。

Looking at overall unit sales, the CL share grew by 11% from our fiscal second quarter of last year to this year. This mix shift supports our margin profile and provides another example of the value of focusing on and investing in product education.

以整體銷售台數來看，CL 的占比從去年會計年度第二季到今年增加了 11%。這樣的產品組合轉移有助於我們的毛利結構，也再次說明聚焦並投資產品教育的價值。

As more consumers understand the advantages of the CL platform, we believe it will continue to gain share. The work we are doing inside the sales funnel only matters if we are bringing the right people into it.

隨著更多消費者了解 CL 平台的優勢，我們相信其市占將持續提升。我們在銷售漏斗內所做的工作，只有在我們把對的人帶進漏斗時才有意義。

Q2 showed that Byrna cannot reach its full potential by repeatedly targeting the same audience with the same message. Our core consumer is important, but we have still only reached a small portion of our addressable market in the United States.

第二季顯示，Byrna 若一再以相同訊息鎖定同一群受眾，將無法發揮其全部潛力。我們的核心消費者很重要，但在美國可觸及市場中，我們實際觸及的仍只是很小的一部分。

With HLK support, we have identified several priority consumer segments with a strong potential fit for Byrna, including personal safety-minded urban professionals, security-minded suburban homeowners and preparedness focus outdoor enthusiasts.

在 HLK 的支持下，我們已辨識出數個與 Byrna 高度契合的優先消費者族群，包括重視人身安全的都會專業人士、重視安全的郊區屋主，以及以備災為導向的戶外愛好者。

Together, these segments represent more than 50 million likely buyers that Byrna has not historically addressed in a focused way. Reaching those consumers requires more than simply placing Byrna in front of a larger audience.

合計而言，這些族群代表超過 5,000 萬名可能買家，而 Byrna 過去並未以聚焦方式加以觸及。要觸及這些消費者，不僅僅是把 Byrna 放到更大的受眾面前。

We need to explain where the product fits into their lives and communicate through the media channels with marketing campaigns that are relevant to them.

我們需要說明產品如何融入他們的生活，並透過與其相關的媒體渠道與行銷活動來溝通。

And that's why we are shifting towards safety and use case first messaging across areas such as home protection, outdoor activity, travel and small business activity.

因此，我們正轉向以「安全」與「使用情境」優先的訊息策略，涵蓋居家防護、戶外活動、旅行與小型企業活動等領域。

In June, we made organizational moves to transform the marketing and sales functions separating the two areas that we can build them back stronger with more accountability, focus and ownership. Q2 showed our prior organizational structure didn't create enough accountability within each function and channel.

在 6 月，我們進行了組織調整以改造行銷與銷售職能，將兩個領域分開，讓我們能以更強的問責、聚焦與所有權把它們重新建立得更健全。第二季顯示，我們先前的組織架構未能在各職能與渠道內建立足夠的問責。

As performance fell short, the old system made it too difficult to isolate root causes and move quickly to address the changing demand environment.

由於業績未達預期，舊有系統使我們難以釐清根本原因，並迅速因應需求環境的變化。

The teams will remain closely connected, but there will be a clear division of responsibility allowing us to respond more quickly and allocate resources more effectively.

各團隊仍將保持緊密連結，但會有明確的職責分工，使我們能更快速回應並更有效率地配置資源。

The separation should make problems easier to identify and faster to address. Our recent agency and media appointments support different parts of this new operating model.

此一分拆應可讓問題更容易被辨識並更快獲得處理。我們近期的代理商與媒體合作任命，分別支援此新營運模式的不同部分。

HL is helping us define and refine our audiences, main use cases and creative expression to broaden Byrna's relevance.

HL 正協助我們定義並精煉目標受眾、主要使用情境與創意表現，以擴大 Byrna 的相關性。

Acceleration Partners is building a more measurable creator and affiliate program in a way that will allow us to link individual partners and campaigns to traffic, conversion and revenue.

Acceleration Partners 正在建立一個更可衡量的創作者與聯盟行銷計畫，使我們能將個別合作夥伴與活動連結到流量、轉換與營收。

We also announced the FOX Sports activation, which kicked off in recent weeks and was funded by reallocating dollars from relationships that were underperforming rather than adding incremental media expense.

我們也宣布了 FOX Sports 的行銷啟動活動，已於近幾週開始，資金來源為將原本投放在表現不佳合作關係上的預算重新配置，而非增加額外的媒體支出。

We are still on schedule to deliver the core brand repositioning work for the 2026 holiday season, followed by the complete brand and website experience in Q1 2027.

我們仍按計畫在 2026 年假期旺季前完成核心品牌重新定位工作，並於 2027 年第一季推出完整的品牌與網站體驗。

We are already busy testing and implementing shorter cycle improvements in our creative, media allocations and owned channels.

我們已在忙於測試並導入更短週期的改善措施，涵蓋創意、媒體配置與自有渠道。

This broader approach to consumer acquisition is also supported by our definitive agreement to acquire HERO Defense Systems.

這種更廣泛的消費者獲取策略，也受到我們已簽署收購 HERO Defense Systems 之最終協議的支持。

HERO adds a complementary less lethal self-defense product family that sets below and adjacent to our core Byrna Launcher platform.

HERO 增添了一個互補的「較低致命性」自我防衛產品系列，定位在我們核心 Byrna Launcher 平台之下並與其相鄰。

Today, all launchers serve consumers looking for a more robust, less lethal launcher solution. HERO would add smaller more discrete everyday carry options, including the HERO 2020 irritant Launcher and HERO Pepper Gel platform, which can appeal to consumers who are interested in personal safety but may not yet be ready to purchase a full longer system. Strategically, this gives us a fuller product ladder.

目前，所有發射器產品皆服務於尋求更強大、較低致命性發射器解決方案的消費者。HERO 將提供更小巧、更隱蔽的日常隨身攜帶選項，包括 HERO 2020 刺激物發射器與 HERO Pepper Gel 平台，可吸引對個人安全有興趣、但可能尚未準備購買完整長型系統的消費者。在策略上，這讓我們擁有更完整的產品階梯。

We can meet consumers earlier in their personal safety journey, introduce them to the less lethal categories through a more accessible form factor and price point and then use our evolving marketing platform to support long-term engagement across our product ecosystem.

我們可以在消費者個人安全旅程的更早階段就與其接觸，透過更易入手的外型與價格帶引導其認識較低致命性品類，並再運用我們持續演進的行銷平台，支持其在我們產品生態系中的長期互動。

HERO fits directly with our marketing redesign. As we move towards more targeted use case-driven messaging, HERO gives us another product family to match against specific consumer needs.

HERO 與我們的行銷改版方向直接契合。隨著我們朝向更精準、以使用情境為驅動的訊息傳遞，HERO 讓我們多了一個可對應特定消費者需求的產品系列。

Over time, this should allow us to build more relevant creative and a more effective consumer journey across channels.

隨著時間推進，這應可讓我們打造更具相關性的創意內容，並在各渠道建立更有效的消費者旅程。

The transaction is structured on a debt-free basis, with consideration consisting of $65,000 in cash and $625,000 in restricted shares of Byrna common stock and a performance-based royalty tied to future net sales of HERO products and derivative products.

本交易以無負債基礎進行，對價包含 65,000 美元現金、625,000 美元之 Byrna 普通股限制性股票，以及一項與 HERO 產品及其衍生產品未來淨銷售額掛鉤的績效型權利金。

We expect the transaction to close within approximately 30 days, subject to customary closing conditions. Because these changes will influence revenue gradually over the coming quarters, we also acted during Q2 to align production with the current demand trends we see today.

在符合慣常交割條件之前提下，我們預期交易將於約 30 天內完成交割。由於這些變革將在未來數季逐步影響營收，我們也在第二季採取行動，使產能與我們目前所見的需求趨勢一致。

In May, we reduced launcher assembly from four production lines to two. We are now producing below the current sales rate, which should allow physical inventory to decline while preserving the ability to add capacity as demand improves.

5 月，我們將發射器組裝產線由四條縮減為兩條。我們目前的產量低於現行銷售速度，這應可在保留需求回升時擴充產能能力的同時，使實體庫存下降。

We also stopped manufacturing ammunition in-house because purchasing it from qualified external suppliers cost less.

我們也停止自製彈藥，因為向合格的外部供應商採購成本更低。

We completed a make versus buy analysis of ammunition production and qualified external suppliers that can produce the required ammunition at a lower fully loaded cost than our previous internal operation. The change does not affect our quality standards or ability to meet anticipated consumer demand.

我們完成了彈藥生產的自製與外購分析，並認證了可用更低的完全成本生產所需彈藥的外部供應商，相較於我們先前的內部作業。此變更不影響我們的品質標準或滿足預期消費者需求的能力。

These decisions related to the larger planning change that I discussed earlier. We are rolling out a model that connects e-commerce trends and retail sell-through to production and inventory by product.

這些決策與我先前提到的更大型規劃變革相關。我們正在推行一個模型，將電商趨勢與零售端銷售消化（sell-through）按產品連結到生產與庫存。

We will be reviewing this model on a monthly cadence, allowing us to purchase components and plan manufacturing against real-time dynamic data rather than against a static assumption.

我們將以每月節奏檢視此模型，使我們能依據即時動態數據而非靜態假設來採購零組件並規劃製造。

The changes in our launcher production lines in May were a direct result of this process, and we expect our inventory level to work its way down, especially as the holiday season load-ins begin this fall.

5 月發射器產線的調整正是此流程的直接結果；我們預期庫存水位將逐步下降，尤其是在今年秋季假期旺季鋪貨（load-ins）開始之際。

We are applying the same discipline to production as well. We improved the CL's first pass yield by 6.5% from May to the end of June, with the expectation we can move it north of 90% in Q4.

我們也將同樣的紀律運用在生產上。我們將 CL 的一次通過良率（first pass yield）自 5 月至 6 月底提升了 6.5%，並預期在第四季可提升至 90% 以上。

As Lauri mentioned, we had an inventory write-down this quarter. Some of that was connected to the parks we are now using with the CL.

如 Lauri 所提，本季我們進行了庫存減記。其中一部分與我們目前在 CL 上使用的零件有關。

Instead of continuing to use parts that produced inconsistent results in our process, we went back to core manufacturing principles and a valued what was causing the issues.

我們沒有繼續使用在流程中產生不一致結果的零件，而是回到核心製造原則，重新評估造成問題的原因。

After a thorough assessment, we focused on remedying the top causes of fallout and made targeted improvements that led to major production improvements immediately.

在徹底評估後，我們聚焦於改善造成報廢/不良的主要原因，並進行有針對性的改良，立即帶來顯著的生產改善。

While there is still more work to be done, the higher first pass yield reduces rework, increases effective production capacity and lowers the cost required to produce each unit.

雖然仍有更多工作要做，但較高的一次通過良率可降低返工、提高有效產能，並降低每單位的生產成本。

As we think about longer-term product development, we have moved from a hardware first development process towards one that starts with the consumer need and aligns R&D, marketing and operations before a product reaches launch.

在較長期的產品開發方面，我們已從「硬體優先」的開發流程，轉向以消費者需求為起點，並在產品上市前先對齊研發、行銷與營運。

Further, we are including design for manufacturing as a core component of our product development process. So products launched with a higher quality at a lower manufacturing cost.

此外，我們將「可製造性設計」（design for manufacturing）納入產品開發流程的核心組成。使產品能以更高品質、較低製造成本推出。

The refined process has begun now in the development stage, and we are looking forward to demonstrating how a successful product launch can perform with this more modern approach. Turning to the remainder of the year.

此一精煉後的流程已在開發階段開始運作，我們期待以更現代化的方法，展示成功產品上市可達成的表現。接著談談今年剩餘時間。

Based on current expectations, fiscal 2026 will not be a revenue growth year. Q2 reset the revenue baseline and we are continuing to execute our strategic transition against current demand signals and expanding the long-term opportunity rather than assuming a quick return to prior growth rates.

依目前預期，2026 財年不會是營收成長的一年。第二季重設了營收基準，我們將持續依據當前需求訊號執行策略轉型並擴大長期機會，而非假設能快速回到先前的成長率。

We expect improvement from the first half of the fiscal year to the second half results as retailers prepare for the holidays and more of the new marketing and consumer acquisition initiatives enter the market. The improvement will build in stages.

隨著零售商為假期旺季備貨，以及更多新的行銷與消費者獲取計畫進入市場，我們預期 2026 財年下半年將較上半年有所改善。改善將分階段逐步建立。

Q3 remains a transition quarters as these initiatives ramp. While we expect Q4 to improve with the holiday season and the work we are doing across marketing, conversion and retail activation more fully deployed in the market.

第三季仍將是這些計畫加速推進的過渡季度。我們預期第四季將因假期旺季，以及我們在行銷、轉換與零售端啟動（activation）方面的工作更全面落地而改善。

We are building from a more realistic baseline with the opportunity to outperform as the new initiatives begin to contribute.

我們將從更務實的基準出發，並在新計畫開始貢獻時具備超預期表現的機會。

Our current focus and initiatives are centered around improving website traffic and conversion to the second half, along with retail sell-through and reorder cadence to support a return to revenue growth in the near term.

我們目前的重點與各項計畫，聚焦於在下半年提升網站流量與轉換率，同時改善零售端銷售消化與補貨節奏，以支持短期內重返營收成長。

We still expect to exit fiscal 2026 with gross margins of approximately 62% and we are continuing to reduce inventory levels and improve cash flow.

我們仍預期在 2026 財年結束時毛利率約為 62%，並持續降低庫存水位、改善現金流。

We move into the second half of the year with a stronger organizational structure, a production base aligned more closely with current demand and several consumer conversion and demand generation initiatives that are already in producing encouraging signs.

我們以更強健的組織架構進入下半年，生產基礎也更貼近當前需求，並已有多項消費者轉換與需求生成計畫在推進中，且已出現令人鼓舞的跡象。

The opportunity ahead remains as important as ever and we are now bringing the operating discipline required to continue leading the charge in less legal personal safety.

前方的機會依然一如既往地重要，而我們現在正導入所需的營運紀律，以持續在較低致命性個人安全領域領先。

We believe this reset positions us to finish fiscal 2026 on a stronger footing and enter fiscal 2027 with a business capable of delivering more consistent growth.

我們相信這次調整使我們能以更穩健的基礎完成 2026 財年，並以具備更一致成長能力的業務進入 2027 財年。

We know confidence will grow from results, and our focus is now on executing against our three-point plan and showing progress from the year.

我們知道信心將來自成果，而我們目前的重點是依照三點計畫落實執行，並在今年展現進展。

With that, operator, we are ready to take questions.

接下來，接線員，我們準備開始提問。

(Operator Instructions) Jeremy Hamblin, Craig-Hallum.

(接線員指示) Jeremy Hamblin，Craig-Hallum。

Thanks for taking our question. So in terms of looking at the reorganization that's happening and obviously a significant amount of change.

感謝讓我們提問。那麼，就正在進行的組織重整來看，顯然有相當大幅度的變動。

Can you talk to how you're looking at your operating expense structure, obviously, with lower expectations on revenue for the back half of the year and then starting to build off that into '27.

你能談談你們如何看待營運費用結構嗎？顯然，在今年下半年營收預期較低的情況下，並且在此基礎上開始一路建構到 2027 年。

How should we be thinking about your operating expense structure given the amount of heavy lift that you need to do in kind of reformulating your marketing, and kind of realigning the organization as a whole?

考量到你們需要在重新制定行銷策略以及整體組織重新對齊方面做大量工作，我們應該如何看待你們的營運費用結構？

Should we assume that kind of that operating expense run rate that you -- we saw in Q2 is kind of where things might fall in Q3 and Q4? Or how are you addressing rightsizing your cost base?

我們是否應該假設，你們在第二季看到的那種營運費用執行率，大致就是第三季和第四季可能落點的水準？或者你們如何著手讓成本基礎更符合規模（rightsizing）？

Hi Jeremy, thanks for the question. So when we look at operating expenses for the back half of the year, you can kind of start with Q2 as a baseline, but we are going to be making some investments that we talked about with some of the marketing agencies as we move forward in this new plan.

嗨 Jeremy，謝謝你的問題。所以當我們看今年下半年的營運費用時，你可以把第二季當作一個基準，但隨著我們推進這個新計畫，我們會在先前提到的部分行銷代理商上做一些投資。

So some of those expenses are going to come ahead of when the revenue comes. So we will have some investment there to the tune of -- it's 250,000 or so a month, so 750,000 maybe a quarter.

因此，其中一些費用會早於營收進來之前先發生。所以我們會有一些投資，規模大約是每月 25 萬美元左右，也就是每季可能 75 萬美元。

As you know, we have variable selling expenses. So those will fluctuate in OpEx is kind of a roughly 10% of sales. So as sales increase, which especially in Q4 with the holiday, right?

如你所知，我們有可變動的銷售費用。因此這些會波動；在營運費用中大約相當於銷售額的 10%。所以隨著銷售增加，尤其是第四季有假期旺季，對吧？

That piece will go up rest of the OpEx we're trying to hold as much as possible. We do obviously have some investments in some of these new positions that we're trying to hire to support the sales and marketing.

那一塊會上升，其餘的營運費用我們會盡可能維持不變。當然，我們也會在一些新職位上做投資，這些是我們正在招募、用來支援銷售與行銷的。

But I think if you use Q2 as a baseline and make those adjustments, that should be good for the back half of the year.

但我認為，如果你以第二季作為基準並做上述調整，應該就足以用來看今年下半年。

Got it. And then just looking at top line and relationships. So a little bit surprised certainly with where the wholesale revenue was in Q2.

了解。接著看營收端與合作關係。所以第二季批發營收的表現確實讓人有點意外。

I know you signed a deal with Academy to roll out, and they've got roughly 300 locations across the US. Can you provide us with an update on the rollout with that large partner?

我知道你們和 Academy 簽了一個鋪貨上架的合作，他們在美國大約有 300 家門市。你能否提供一下與這個大型合作夥伴的鋪貨進度更新？

And in terms of building back the wholesale business, which seems like kind of the area of potential growth on a go-forward basis, what other feedback are you getting from your retail partners when you talk about kind of retail sell-through that disappointed in the quarter, what else are they sharing that you feel like needs to change and be addressed to really drive that channel of business going forward?

另外，就重建批發業務而言，這似乎是未來可能的成長領域；當你們與零售合作夥伴討論本季令人失望的零售端銷售速度（sell-through）時，你們還收到哪些回饋？他們還分享了哪些你們覺得需要改變並加以處理的地方，才能真正推動這個通路未來的業務成長？

Thanks, Jeremy. I mean, as you know, we don't have the same level of visibility into conversion at the retail side as we do on byrna.com or our own retail stores.

謝謝，Jeremy。我的意思是，如你所知，我們在零售端的轉換（conversion）可視性，沒有像在 byrna.com 或我們自營門市那樣高。

But what we do know is that our product sells better when consumers can engage with it directly, and there's really strong education at the retail point of sale.

但我們知道的是，當消費者能直接與產品互動時，我們的產品賣得更好，而且在零售端的銷售點需要非常強的教育（產品解說）。

So that's where we're focused from a sell-through point of view is really ramping our education and the ability for the consumer to learn about the product, frankly, on their own in that retail experience as they discover it.

所以從 sell-through 的角度，我們的重點就是大幅提升教育內容，以及讓消費者在零售體驗中、在他們發現產品時，坦白說能夠自行了解產品。

Similarly, we've moved to more of an in-cap environment, more of an easy to discover environment than being in the gun case where it's a little bit more hidden. I spent some time in the quarter talking with all of our major retail partners.

同樣地，我們也轉向更多端架（end-cap）環境、更容易被發現的陳列環境，而不是放在槍櫃裡，那樣會比較隱蔽。本季我花了一些時間與我們所有主要零售合作夥伴交流。

And frankly, all of them remain very excited about Byrna, what we can deliver and where we're going together.

坦白說，他們所有人對 Byrna 仍然非常興奮，對我們能交付的成果以及我們共同前進的方向也都很期待。

I will tell you that in the quarter, we really did enter with pretty high inventories in the retail channel following really strong demand through the holiday period last year.

我可以告訴你的是，本季我們確實是在零售通路端以相當高的庫存水位進入，這是因為去年假期期間需求非常強勁。

There was just really large restocking that occurred and throughout the quarter, we just didn't see the sell-through at that high of a level to generate as quickly of reordering there.

當時發生了非常大量的補貨，而在整個季度中，我們沒有看到 sell-through 維持在那麼高的水準，因此無法那麼快帶動再次下單。

Reordering and sell-through remained consistent, but just not quite at a level to drive what we had hoped. As far as Academy, in that particular business, that shifted from a load in from Q2 into Q3 just from a timing and on their side.

再下單（reordering）與 sell-through 仍然一致，但就是沒有達到我們所希望能帶動的水準。至於 Academy，那筆特定業務因為時點以及他們那邊的安排，從第二季的鋪貨移到了第三季。

Okay. Got it. And then in terms of the HERO acquisition, taking that, I wanted to see what type of annual revenues the business was doing prior to acquisition.

好的。了解。然後關於 HERO 的收購，我想了解該業務在收購前的年營收大概是多少。

And then their launchers are a little bit less expensive than the Byrna launchers. But in terms of thinking about the fit with the business and where Byrna goes from here.

另外，他們的發射器（launchers）價格比 Byrna 的發射器稍微便宜一些。但就與業務的契合度以及 Byrna 接下來的走向來看。

I don't know if kind of what you're hinting at is that part of the issue with Byrna is simply the price points being too high, for broadening the marketing to kind of a different audience than what your traditional kind of conservative gun owning customer has been over the last five years or so.

我不確定你是否在暗示，Byrna 的部分問題其實只是定價帶太高；若要把行銷擴展到與過去五年左右你們傳統的、偏保守的持槍客群不同的受眾。

Thanks, Jeremy. I'm really excited about the HERO opportunity and what that represents for the business. And for me, it really goes back to kind of the four Ps of marketing and where we're going as an organization.

謝謝，Jeremy。我對 HERO 的機會以及它對公司所代表的意義感到非常興奮。對我而言，這其實回到行銷的 4P，以及我們作為一個組織要前往的方向。

HL is really leaning in to help us from a promotion point of view. How we talk about Byrna, the customers we're targeting and the media channels that we're moving through there.

HL 在促銷（promotion）層面確實大力協助我們。也就是我們如何談論 Byrna、我們鎖定的客戶，以及我們在那裡所採用的媒體渠道。

Similarly, what we're doing from a retail point of view and the door expansion is really driving our placement and making Byrna much more accessible.

同樣地，從零售（retail）角度來看，我們在門店數擴張（door expansion）上所做的事情，正在推動我們的鋪貨（placement），讓 Byrna 更容易取得。

Where HERO comes in is really on the product and the price point of view, as you say. We are a very tactical brand today, the way we show up in the marketplace.

而 HERO 的切入點，正如你所說，主要是在產品（product）與價格帶（price point）層面。我們目前是一個非常戰術風格（tactical）的品牌，這是我們在市場上呈現的方式。

The product form factor of HERO is really a different, less gun forward product structure which really opens up a new consumer opportunity from us from just a product point of view.

HERO 的產品外形（form factor）其實不同，是一種不那麼「槍械導向」的產品結構，從產品角度來看，這確實為我們打開了新的消費者機會。

Similarly, if you look at it from a pricing point of view, you mentioned they come in slightly below where we are. Frankly, there's a pretty big gap in our portfolio from the sprays business that we have to the ST, right?

同樣地，從定價角度來看，你提到他們的價格略低於我們。坦白說，我們的產品組合中，從我們的噴霧（sprays）業務到 ST 之間存在相當大的空缺，對吧？

That's a $20 price point to a $400 price point. What's nice about HERO is we've been able to dig into their product pretty deeply, and we believe there's an opportunity to significantly reduce the build cost of that product. and provide a solution for consumers in the $250-ish range that will really open up a new consumer opportunity for us there.

那是從 20 美元的價格帶到 400 美元的價格帶。HERO 的好處在於，我們已經相當深入地研究他們的產品，我們相信有機會大幅降低該產品的製造成本，並為消費者提供一個約 250 美元左右的解決方案，這將真正為我們打開新的消費者機會。

Okay, great. Thanks for taking my questions and best wishes.

好的，很棒。謝謝回答我的問題，並祝一切順利。

Thank you, Jeremy.

謝謝你，Jeremy。

Matt Koranda, Roth Capital Partners.

Matt Koranda，Roth Capital Partners。

Hey, guys. Good morning. Maybe just attacking this from a different angle on channel. I wanted to hear a little bit more about the e-comm channel and how traffic and conversion has trended in June and July.

嗨，各位。早安。也許從通路的不同角度來切入。我想多了解一些電商（e-comm）通路，以及 6 月與 7 月的流量與轉換率走勢如何。

I know you mentioned some of the trends in April and May come, but just any help with sort of what that looked like quarter-to-date? Any improvement that we've seen in terms of traffic or conversion metrics? And how much of the HLK messaging, I guess, has been rolled out? Or when do you expect that to roll out and start to impact traffic on a broader basis?

我知道你們提到 4 月和 5 月的一些趨勢，但想請你們協助說明一下，截至目前季度（quarter-to-date）看起來如何？在流量或轉換指標方面，有看到任何改善嗎？另外，我想 HLK 的訊息（messaging）目前推出到什麼程度了？或者你們預期何時會推出並開始更廣泛地影響流量？

Thanks, Matt. Let me address the first part of that question. So from an HLK messaging point of view, we are still very much in the early stages of that and almost none of that is live at this point in time.

謝謝，Matt。我先回答這個問題的第一部分。就 HLK 訊息（messaging）而言，我們仍然處於非常早期的階段，目前幾乎都還沒有上線。

That will be ramping throughout Q3 as we do the work to really understand what messages will resonate across the quarter and the new audiences that we're targeting.

這將在第三季持續加速推進，因為我們會投入工作，真正了解哪些訊息能在整個季度引起共鳴，以及我們所鎖定的新受眾。

So I expect that to really ramp through Q3, both from a Byrna owned channel point of view and what we're doing from a social media partnership point of view with acceleration partners. So that's kind of where we are from that point of view.

因此我預期這會在第三季大幅加速，無論是從 Byrna 自有渠道的角度，或是我們透過社群媒體合作、與加速合作夥伴所做的推廣角度來看。大致上這就是我們目前在這方面的狀況。

Throughout Q2, we really were still focused and relied on some of the traditional media partnerships that we had.

在第二季期間，我們其實仍然主要聚焦並依賴一些既有的傳統媒體合作夥伴。

You saw us just a couple of weeks ago, launched the FOX Sports partnership, and that was really by reallocating previously committed dollars with one partner to a different outlet that they had. So that's kind of where we are right now.

你們在幾週前看到我們推出了 FOX Sports 的合作，那其實是把原本已承諾給某個合作夥伴的預算，重新分配到他們旗下的另一個媒體渠道。所以我們目前大概就是這樣的狀況。

I expect that to continue to ramp as we go through Q3, and really have a lot of that messaging and new targeting in place as we enter the holiday period in Q4.

我預期這會在第三季持續加速推進，並且在我們進入第四季的假期檔期時，讓大量訊息傳遞與新的受眾鎖定都已到位。

When you think about how we've performed from an e-commerce point of view, I would tell you, traffic has still been fairly consistent from the end of Q2 into the start of Q3 and conversion roughly the same as well.

從電商表現來看，我會告訴你，從第二季末到第三季初，流量仍相當穩定，轉換率也大致相同。

We are seeing an increased engagement on our find the right launcher quiz and our try-before-you-buy program.

我們看到「找到適合的發射器」測驗，以及「先試後買」方案的互動度正在提升。

So those are tailwinds that will really ramp both end of last month and through July that we believe will meaningfully move the needle there throughout the quarter.

因此，這些正向因素在上個月月底開始、並在 7 月持續發酵，我們相信將在本季度對那邊的表現帶來顯著的提升。

Okay. I appreciate that. And then maybe just if we're thinking about the HERO acquisition, when should we expect that to be, I guess, integrated into the Byrna website?

好的。謝謝你的說明。接著如果我們談到 HERO 的收購案，什麼時候我們可以預期它會被整合到 Byrna 的網站上？

Will it be and how should we expect the product to sort of roll out? Is it going to be with Byrna branding? Do you start with sort of the legacy Hero product and eventually add your branding once you kind of reengineer the product? How should we think about sort of how that unfolds over time?

會整合嗎？以及我們應該如何預期產品會逐步推出？會以 Byrna 品牌來呈現嗎？你們會先從既有的 Hero 產品開始，之後等你們重新設計產品後再加入你們的品牌嗎？我們應該如何看待這個隨時間推進的展開方式？

No, that's great. Let me address one thing that I forgot to mention in your prior question as well. We are ramping up our TV as well from an advertising point of view.

不，這個問題很好。我也想補充一點：你前一個問題裡我忘了提到的。從廣告角度來看，我們也正在加大電視投放。

During the World Cup, it was a little expensive when they were all the games on, but now it's more cost effective for us to do that. So we're ramping that back up as well to drive traffic.

世界盃期間因為賽事很多，投放成本有點高，但現在對我們來說更具成本效益。所以我們也正在把電視投放拉回來，以帶動流量。

When you think about Hero once we close that transaction, we will focus on the existing HERO product line as it is and really promoting that and driving that forward.

談到 Hero，在我們完成該交易交割後，我們會先聚焦於既有的 HERO 產品線，並大力推廣、推動其成長。

We will work to integrate the HERO product line into byrna.com so that we can sell it through that channel towards the end of Q3, Q4. But really, you'll see us in Q1 have that more tied in with the Byrna brand and the positioning overall and really tied into a unified experience.

我們會把 HERO 產品線整合進 byrna.com，讓我們能在第三季末到第四季透過該渠道銷售。但真正你會在第一季看到的是：它會更緊密地與 Byrna 品牌及整體定位結合，並且更像是一個統一的一體化體驗。

Okay. And then maybe just last one for me. It sounds like with sort of sales trends kind of continuing from the second quarter, maybe we see a little bit of a seasonal ramp in the fourth quarter, but we're still ramping on the marketing expense seems like EBITDA profitability is going to be a little bit challenging for the rest of the year.

好的。那我最後一個問題。聽起來銷售趨勢大致延續第二季，第四季可能會有一些季節性回升，但我們仍在加大行銷費用，這似乎意味著今年剩餘時間要達成 EBITDA 獲利會比較有挑戰。

How should we think about free cash flow? Maybe Lauri, if you want to kind of address how much you think you can flush from inventory for the remainder of the year, how the cash balance looks toward the end of the year in light of that? How should we be thinking about those trends?

那我們應該如何看待自由現金流？也許 Lauri 你可以談談，你認為今年剩餘時間能從庫存釋放多少現金、以及在此背景下年底的現金餘額會是什麼樣子？我們應該如何看待這些趨勢？

Sure. Thanks, Matt. So we really expect cash to kind of hold through Q3. Q4 is when you're really going to see us reduce inventory and then obviously, we'll have the holiday sales. So we're targeting a $5 million reduction in inventory to really generate cash.

當然。謝謝你，Matt。我們預期現金水位在第三季大致會維持穩定。第四季你會真正看到我們降低庫存，然後很明顯也會有假期銷售。因此我們的目標是把庫存降低 500 萬美元，以實際產生現金。

So we expect to end the year with more cash than we have at the moment. and keeping that steady through Q3. I mean we typically burn cash the first part of the year. But I think cash wise, we're in good shape and still with no debt.

所以我們預期年底的現金會比目前更多，而第三季會維持穩定。我的意思是，我們通常在每年上半年會消耗現金。但就現金狀況而言，我們狀態良好，而且仍然沒有負債。

Okay. I'll leave it there. Thank you, guys.

好的。我就先到這裡。謝謝各位。

Jeff Van Sinderen, B. Riley Securities.

Jeff Van Sinderen，B. Riley Securities。

Hi, everyone. So just to kind of follow up on the line of thinking with sales trends or engagement running pretty similar so far this quarter. Is your thought that Q3 will look something similar to Q2?

各位好。我想延續剛才關於銷售趨勢或互動度在本季迄今仍相當類似的思路追問一下。你們的看法是第三季會看起來和第二季差不多嗎？

Or do you think it will be down another notch from Q2? Or how -- I realize it's a tough question, tough to predict here, but just any other I guess, sort of directional thoughts you have around, kind of the sequential progression in Q3?

還是你們認為會比第二季再下滑一個檔次？或者——我知道這很難、也很難在這裡預測——但你們對第三季環比走勢的方向性看法是什麼？

Yes. I mean we still see -- Q3 is always a challenge from a seasonality perspective, right? The summer tends to be the slower months for us anyway.

是的。我的意思是，我們仍然看到——從季節性角度來看，第三季一直都是挑戰，對吧？夏季本來就是我們相對較慢的月份。

But we do expect to see some of those load-ins for holiday start at the end of Q3. And then as Conn mentioned, there's actions we're taking that are fairly new.

但我們確實預期，部分假期備貨的上架（load-ins）會在第三季末開始。另外如 Conn 提到的，我們正在採取一些相當新的行動。

So the FOX Sports initiative acceleration partners, getting influencers up online, some of those smaller influencers to target, the website changes we're making and then the new TV advertising that quite literally just started in the last couple of days to ramp up.

例如 FOX Sports 的計畫、加速合作夥伴、讓網紅上線（包含一些較小型、用於精準鎖定的網紅）、我們正在進行的網站改版，以及全新的電視廣告投放——真的就是在過去幾天才剛開始加速。

So those are the things that we're doing and expect to see some of that improve. But there is certainly as well the seasonality. So we'll continue to work all of those channels through Q3 and Q4 is when we really expect to see revenue increase.

這些就是我們正在做的事情，也預期會看到其中一些帶來改善。但當然也同時存在季節性因素。因此我們會在第三季持續推進所有這些渠道，而第四季才是我們真正預期營收會增加的時點。

And then if maybe we can turn back to the HERO acquisition for a minute. Just curious having kind of looked at taking a quick look at some of the product. Just I guess, and I know you spoke to a $250 price point, but is there -- are you thinking product rationalization there? Are you thinking there's overlap?

接著如果我們把話題拉回 HERO 收購案一下。我只是好奇，因為我快速看了一下他們的一些產品。我想問的是——我知道你提到 250 美元的價格帶——你們是否在考慮產品線精簡（rationalization）？你們是否認為存在重疊？

I'm just kind of looking at where they have a product price now that's by a little bit similar to Byrna, although I guess it only fires two rounds is what it looks like and then you have to put in a new cartridge.

我在看他們目前有一個產品定價，某種程度上和 Byrna 有點相似，雖然看起來它只能發射兩發，然後就必須更換新的彈匣（cartridge）。

But just thoughts on the overall product line there as you're planning to rationalize and kind of how you position that versus the entry-level Byrna product?

但想請你談談你們對整體產品線的想法：在你們規劃精簡時，會如何定位它，相對於入門款 Byrna 產品又會怎麼擺放？

Right. If you think about the HERO product line, that will really be a more basic, straightforward lower feature product line than the core Byrna launchers, you're not going to be able to upgrade them like you can the SD, the CL and the L However, they're going to really fit in well below from a price point where Byrna is today and really open up access to a more accessible marketplace overall.

對。如果你看 HERO 產品線，它會是一個比 Byrna 核心發射器更基礎、更直接、功能較少的產品線；你無法像 SD、CL 和 L 那樣對它們進行升級。不過，它們在價格帶上會明顯低於目前 Byrna 的定位，並真正打開更可負擔的市場入口，讓更多人能接觸到。

What's also interesting about that product line. When you look at the Aero product as well, again, work has to be done to bring the price point on that down. But that would really get you down to a much more form factor, less like a gun and a much more accessible price point as well. So I believe these will be filtered in kind of as a different part of the product line below the core Byrna launcher in a more simple, straightforward, less capable, but still effective personal safety solution.

另外這條產品線還有一點很有意思。當你也看 Aero 產品時，同樣地，我們還需要做一些工作把它的價格帶降下來。但那會讓產品外形更小巧，更不像槍，同時也會落在更容易入手的價格帶。所以我相信，這些產品會以 Byrna 核心發射器之下的另一個產品區段被納入：更簡單、更直接、能力較少，但仍然有效的個人安全解決方案。

And then anything you can share about kind of the revenue that HERO generates now? Were they Were they profitable? Are the gross margins similar? And then I guess anything around how you expect the consumable part of that business to be? Because it looks like there is a consumable part. How are the margins on that? Just anything else -- any other color you can give us there?

接著，您能否分享一下 HERO 目前帶來的大概營收情況？他們是否獲利？毛利率是否相近？另外，我想了解你們對該業務中耗材部分的預期？因為看起來確實有耗材部分。那部分的毛利如何？還有其他任何補充資訊——任何你們能提供的更多細節都可以。

Sure, Jeff. So I would say from a margin perspective, similar to where Byrna is at. As Conn mentioned though, we're going to do some things to take the cost out as we bring the price down, right? So we want to target a price for consumers, but keep maintaining the same similar margins. So they have been profitable.

當然，Jeff。我會說就毛利角度而言，與 Byrna 目前的水準相近。不過如 Conn 提到的，當我們把售價往下調時，我們也會做一些事情來降低成本，對吧？所以我們希望鎖定一個消費者可接受的價格，同時維持相同或相近的毛利水準。因此他們一直是有獲利的。

I mean, it was a small company. So really, these are people, the founders didn't invest enough in marketing.

我的意思是，那是一家小公司。所以基本上，這些人——創辦人——在行銷上的投入不夠。

We think we have a great opportunity with the Byrna brand behind it with our marketing engine and to get that out and through our retail partners as well. So we're really excited for this, especially in 2027. 2026, we have a little bit of work to do to get that all integrated. But the consumables, there are consumables there. They are more of a cartridge rather than the ammunition.

我們認為，背靠 Byrna 品牌、加上我們的行銷引擎，並透過我們的零售合作夥伴把產品推向市場，會有很大的機會。所以我們對此非常興奮，尤其是 2027 年。2026 年我們還需要做一些工作把它完整整合。至於耗材，確實有耗材。但它更像是匣（cartridge），而不是彈藥。

But I would expect it to perform similar to Byrna as far as being the same kind of percentage of sales.

不過我預期它的表現會與 Byrna 類似，就其占銷售額的比例而言會是同一類型的水準。

Okay. Thanks for taking my questions. I'll take the rest offline.

好的。謝謝回答我的問題。其餘我會私下再跟進。

Thanks, Jeff.

謝謝你，Jeff。

(Operator Instructions) Eric Wold, Texas Capital.

（接線員指示）Texas Capital 的 Eric Wold。

Thanks. Good morning. So a couple of questions. Just one following up on HERO. How do you kind of market those products to consumers?

謝謝。早安。我有幾個問題。先延續一下 HERO。你們大概會如何把這些產品行銷給消費者？

Will they be marketed completely separate and different products and different channels to different customer target customers?

它們會以完全獨立、不同的產品、不同的通路，去鎖定不同的目標客群來行銷嗎？

Or do you expect to kind of market holistic kind of portfolio of options out there, including Byrna and HERO kind of simultaneously kind of give that consumer choice up and down the scale as opposed to kind of being too targeted?

還是你們預期會以更整體的方式行銷一個完整的選擇組合，包括 Byrna 與 HERO 同步推廣，讓消費者在不同價位帶上下都有選擇，而不是過度聚焦在某一個細分客群？

So when you think about the HERO product line specifically itself, I think that's a product that will appeal to a certain consumer type, again, probably outside of the majority of the core of the current Byrna consumer.

當你特別看 HERO 這條產品線時，我認為它會吸引某一類型的消費者——同樣地，可能不在目前 Byrna 核心消費者的大多數範圍內。

That being said, we really want to set up byrna.com so that you can find that product regardless of which launches you're looking for. And what's exciting about that is when we see people come to byrna.com and potentially abandon carts with a core launcher product in there.

話雖如此，我們非常希望把 byrna.com 打造成：不論你在找哪一種發射器（launcher），都能找到相對應的產品。令人興奮的是，當我們看到有人來到 byrna.com，可能在購物車裡放了核心發射器產品但最後放棄結帳。

This gives us the opportunity to retarget them at a lower price point with a still capable product to pull them into the Byrna ecosystem which we believe there's a clear upgrade path over time across these products.

這就讓我們有機會以較低的價格點，重新鎖定（retarget）他們，提供一款仍然具備能力的產品，把他們拉進 Byrna 生態系；我們相信，隨著時間推移，這些產品之間有一條清晰的升級路徑。

Got it. Helpful. And then a multi-part question on the ammunition manufacturing. So is the expectation that the shift in manufacturing to third party is the kind of long-term permanent solution, given that you found a kind of a cheaper manufacturing kind of all-in cost. What do you expect kind of the improvement in margins?

了解。很有幫助。接著是關於彈藥製造的一個多段式問題。所以，將製造轉移到第三方，是否預期會是長期、永久性的解決方案，因為你們找到了一個整體成本更低的製造方式？你們預期毛利會改善多少？

Or what is the difference in margins versus manufacturing in-house? I know that one of the benefits we did bring -house was everything is now kind of made in the USA Is that still the case with the third parties?

或者說，與自製（in-house manufacturing）相比，毛利差異是多少？我知道之前把製造帶回內部的一個好處是，所有產品現在基本上都是美國製造（made in the USA）。改由第三方後仍然是這樣嗎？

And then lastly, was the annual inventory write-down, was that because the inventory was impaired in any way? Or is there still inventory that could be still in the future?

最後，年度存貨減損（inventory write-down）是因為存貨在某種程度上已經受損或無法使用嗎？還是未來仍可能有存貨可以繼續使用或銷售？

Thanks, Eric. Let me address kind of the first part of that question. I'll turn it over to Lauri on the impairment. When you think about where we're going from an ammo point of view at this point, this is the long-term solution, we believe, from an ammo perspective.

謝謝你，Eric。我先回答你問題的第一部分。關於減損的部分我會交給 Lauri 說明。就目前我們在彈藥（ammo）方面的方向來看，我們相信從彈藥角度而言，這會是長期解決方案。

Throughout kind of the first part of the year, we really found that a new supply of ammunition came online that just wasn't there when the original ammo facility decision was made.

在今年前半段，我們確實發現有新的彈藥供應來源上線，而在當初做出原本彈藥工廠決策時，這些供應並不存在。

And so that lower cost ability to source that, it is international. Right now, and I think that will continue to be the case.

因此，能以更低成本取得供應的能力——它是國際來源。目前是如此，而且我認為未來也會持續如此。

And so, when we look at that, it's really an opportunity for us to lower the overall cost of the ammo portfolio while still maintaining the levels of quality that we would expect. Let me turn it over to Lauri real quick.

所以我們看待這件事時，這其實是個機會：在維持我們所期待的品質水準的同時，降低整體彈藥產品組合的成本。我先把時間很快交給 Lauri。

Hi, Eric. Yeah. I think the impairment, what we really had is more raw materials that we had. So the thinness goods that we have will continue to sell through. That's not what was impaired.

嗨，Eric。是的。我想關於減損，我們主要是持有較多的原物料。所以我們現有的成品仍會持續銷售完畢（sell through）。被減損的不是那些成品。

It was just because we're not going to manufacture them anymore, it was more raw material write down.

只是因為我們不再自行製造，所以主要是原物料的減記（write down）。

Perfect. And on the margin question, I know there's a lot of sub questions out there. What do you think the margin delta will be?

很好。至於毛利問題，我知道裡面有很多子問題。你認為毛利差（margin delta）會是多少？

Sorry, what did you say?

抱歉，你說什麼？

The margin delta between -- gross margin between manufacturing in-house and now using a third party?

自製與現在改用第三方之間——毛利率（gross margin）的差異？

Yeah. I mean based on the cost that we have now and where we can buy it, we're going to see improvement in margin. So, I think that was something that was hurting our gross margin.

是的。我的意思是，基於我們現在的成本以及我們能以什麼價格採購，我們會看到毛利改善。所以我認為那一直是拖累我們毛利率的因素之一。

So, the targets that we gave from an overall gross margin perspective of being -- we were at roughly 62%. We expect it to be at or above that for the rest of the year.

因此，我們先前給出的整體毛利率目標——我們大約在 62%。我們預期今年剩餘時間會維持在該水準或高於該水準。

Thanks, Wold.

謝謝你，Wold。

Thanks, Eric.

謝謝你，Eric。

Thank you. At this time, this concludes our question-and-answer session. I'd now like to turn the call back over to Mr. Davis for closing remarks.

謝謝。此時，我們的問答環節到此結束。接下來我想把電話交回給 Davis 先生作結語。

Thank you all very much for joining us today. That concludes our call.

非常感謝各位今天加入我們。本次電話會議到此結束。

Thank you for joining us for Byrna's fiscal second quarter 2026 conference call. You may now disconnect.

感謝各位參加 Byrna 2026 會計年度第二季法說會。您現在可以掛線。