Byrna Technologies Inc (BYRN) 2026 Q3 法說會逐字稿

Good morning. Welcome to Byrna's fiscal third-quarter 2026 earnings conference call. My name is Darrell and I will be your operator for today's call.

早安。歡迎參加 Byrna 2026 會計年度第三季財報電話會議。我叫 Darrell，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, Lori Kearns. Following their remarks, we will open the call to questions. Earlier today, Byrna released results for its fiscal third quarter ended August 31, 2026. A copy of the press release was released on September 7, 2026. The company's CEO, Conn Davis, and CFO, Lori Kearns, are on the company's website. Before turning the call over to Mr. Davis, I will read the company's Safe Harbor statement.

今天與會簡報的有公司執行長 Conn Davis 與財務長 Lori Kearns。在他們的發言之後，我們將開放提問。今天稍早，Byrna 已公布截至 2026 年 8 月 31 日止之 2026 會計年度第三季業績。新聞稿副本已於 2026 年 9 月 7 日發布。公司執行長 Conn Davis 與財務長 Lori Kearns 的相關資訊可於公司網站查閱。在把電話交給 Davis 先生之前，我將宣讀公司的安全港聲明。

Some discussions held today include forward-looking statements. 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 those 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 Investors section of our website, ir.byrna.com, for further information regarding forward-looking statements and reconciliations of non-GAAP results to GAAP results.

今天的部分討論將包含前瞻性陳述。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。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。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 投資人專區的新聞稿，以取得關於前瞻性陳述以及非 GAAP 結果與 GAAP 結果調節之進一步資訊。

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

我現在把電話交給 Byrna 執行長 Conn Davis。先生，請開始。

Thank you, operator. Thank you, everyone, for joining us today. Over the past several months, we have made significant progress in building the foundations necessary to support sustainable long-term growth. Our results in the quarter reflect our ongoing transition, and while they remain below the level of performance we expect for Byrna, we are seeing signs that many of the initiatives we began implementing this year are starting to gain traction. And that reinforces my conviction in the opportunity ahead.

謝謝接線員。謝謝各位今天加入我們。過去幾個月，我們在建立支持可持續長期成長所需的基礎方面取得了重大進展。本季的結果反映了我們持續的轉型；雖然仍低於我們對 Byrna 所期望的表現水準，但我們看到今年開始推動的多項措施正逐步展現成效。這也更加堅定我對未來機會的信心。

We continue to believe Byrna is uniquely positioned at the intersection of personal safety and consumer self-defense. The need for a less lethal option remains significant. Consumer awareness of the category remains relatively low, and we believe the long-term opportunity to expand adoption is substantially larger than the business today. Our focus since I arrived in March has been centered around three priorities: Improving customer conversion and retail productivity, transforming how Byrna builds demand, and enhancing operational efficiency across the business.

我們仍然相信 Byrna 在個人安全與消費者自我防衛的交會點上具備獨特定位。對於較低致命性選項的需求仍然相當可觀。消費者對此類別的認知仍相對偏低，我們相信長期擴大採用的機會遠大於目前的業務規模。自我於 3 月到任以來，我們的重點聚焦於三項優先事項：提升客戶轉換率與零售生產力、改造 Byrna 建立需求的方式，以及提升全公司營運效率。

During the quarter, we began seeing encouraging progress across each of these priorities. Our direct-to-consumer metrics improved, with website sessions averaging approximately 29,000 per day in August, the highest since March this year, while conversion rates improved from June to August sequentially. We also expanded our social creator ecosystem to more than 50 active creators, helping us reach new consumer audiences and driving engagement up 95% across our social channels compared to 1Q.

本季，我們開始在上述各項優先事項上看到令人鼓舞的進展。我們的直面消費者（DTC）指標有所改善；8 月網站每日平均造訪次數約 29,000 次，為今年 3 月以來最高，同時轉換率在 6 月至 8 月期間呈現逐月改善。我們也將社群創作者生態系擴大至 50 位以上的活躍創作者，協助我們觸及新的消費者受眾，並使社群各渠道的互動量相較於第一季提升 95%。

Beyond the individual metrics, what encourages me most is that many of the building blocks we have set out to establish earlier this year are now coming into place, and we still have more to come to help re-accelerate growth. Many of our refreshed marketing programs are now active. Our creator ecosystem is live and expanding. Our retail initiatives are rolling out ahead of the holiday season, our leadership team has been strengthened.

除了各項單一指標之外，最令我振奮的是：我們今年稍早所規劃建立的許多基礎要件如今正逐步到位，而且後續仍有更多措施將推出，以協助重新加速成長。我們多項更新後的行銷計畫目前已啟動。我們的創作者生態系已上線並持續擴張。我們的零售計畫也在假期旺季前提前展開，同時我們也強化了領導團隊。

We are also seeing measurable operational progress, with first pass yield exceeding 89% and approaching the 90% target we set for 4Q, gross margins outperforming our internal expectations and inventory beginning to trend lower. Collectively, these indicators reinforce our confidence that the actions we are taking today are creating a stronger platform for future growth. As we move toward the upcoming holiday season, our focus remains on execution. We still have meaningful work ahead of us and remain realistic about the uphill climb. At the same time, we believe the foundation we have spent much of fiscal '26 building is materially stronger than it was 6 months ago. I'll discuss more on our quarter and also introduce a longer-term outlook for the business in a bit.

我們也看到可量化的營運進展：一次合格率（first pass yield）超過 89%，並逐步接近我們為第四季設定的 90% 目標；毛利率優於內部預期，庫存也開始呈下降趨勢。綜合而言，這些指標強化了我們的信心：我們今天所採取的行動正在為未來成長打造更強健的平台。隨著即將到來的假期旺季，我們的重點仍在於落實執行。我們仍有大量工作要完成，也務實看待這段艱鉅的爬坡期。同時，我們相信在 2026 會計年度投入大半時間所建立的基礎，相較於 6 個月前已明顯更為扎實。稍後我會進一步說明本季表現，並介紹公司更長期的展望。

But first, I will turn the call over to Lori to review our results from the quarter. Lori?

不過首先，我先把電話交給 Lori，請她回顧本季業績。Lori？

Thank you, Conn, and good morning, everyone. Let's review our financial results for the fiscal third quarter ended August 31, 2026. Net revenue for the third quarter was $15.3 million, down approximately 46% from $28.2 million in the prior year period. This was driven primarily by a decline in e-commerce sales and slower reorder activity from dealers and chain stores following substantial restocking in fiscal 1Q and slower than expected sell-through.

謝謝你，Conn，各位早安。我們來回顧截至 2026 年 8 月 31 日止之 2026 會計年度第三季財務結果。第三季淨營收為 1,530 萬美元，較去年同期的 2,820 萬美元約下降 46%。主要原因是電商銷售下滑，以及在 2026 會計年度第一季大幅補庫後，經銷商與連鎖通路的補貨活動放緩，且終端銷售（sell-through）低於預期。

Gross profit was $12.2 million, or 79% of revenue, compared to $16.9 million or 60% of net revenue in the prior year quarter. Reported gross profit includes the impact of a $2.3 million tariff refund. Adjusting for this item, adjusted gross profit, a non-GAAP measure, was $9.9 million, representing an adjusted gross margin of approximately 65%. The increase in adjusted gross margin is primarily attributable to operational efficiency gains in both manufacturing and supply chain, as well as favorable product and channel mix.

毛利為 1,220 萬美元，占營收 79%；相較之下，去年同期毛利為 1,690 萬美元，占淨營收 60%。已報告毛利包含 230 萬美元關稅退稅的影響。扣除此項目後，調整後毛利（adjusted gross profit，非 GAAP 指標）為 990 萬美元，調整後毛利率約為 65%。調整後毛利率的提升主要歸因於製造與供應鏈兩端的營運效率改善，以及有利的產品與通路組合。

Operating expenses for 3Q '26 were $15.1 million compared to $14.1 million for 3Q '25, an increase of 7%. The increase primarily reflects continued investment in new marketing initiatives as well as $1.7 million in bad debt expenses related to two large international customers, partially offset by the change in variable selling expenses associated with the decrease in sales.

2026 會計年度第三季營業費用為 1,510 萬美元，較 2025 會計年度第三季的 1,410 萬美元增加 7%。增加主要反映我們持續投資新的行銷計畫，以及與兩家大型國際客戶相關的 170 萬美元呆帳費用；部分被因銷售下滑而降低的變動銷售費用所抵銷。

As we've previously discussed, we expect incremental expense as our new commercial and consumer acquisition programs ramp. 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. We reported a net loss for the quarter of $2.9 million or a loss of 13 cents per diluted share, compared to net income of $2.2 million or $0.09 per diluted share in the same period a year ago.

如同我們先前所討論，隨著新的商業端與消費者獲客計畫逐步擴大，我們預期費用將有增量增加。這些投資將先於其完全的營收貢獻；而在上述重點領域之外，我們正依目前的營收基礎管理支出，並持續評估成本。本季我們報告淨損 290 萬美元，或稀釋後每股虧損 0.13 美元；相較之下，去年同期為淨利 220 萬美元，或稀釋後每股盈餘 0.09 美元。

Adjusted EBITDA, a non-GAAP metric, for 3Q '26 was negative $1.4 million compared to $4.1 million in the same period a year ago. Cash, cash equivalents, and marketable securities totaled $9.4 million as of August 31, 2026, compared to $9 million in the prior year period. It was $15.5 million in November 30, 2025, and $10.4 million at the end of the fiscal second quarter. Lower collections of accounts receivable weighed on cash during the quarter, and we ended the period with no debt.

2026 會計年度第三季調整後 EBITDA（非 GAAP 指標）為負 140 萬美元，去年同期為 410 萬美元。截至 2026 年 8 月 31 日，現金、約當現金與有價證券合計為 940 萬美元，較去年同期的 900 萬美元增加。2025 年 11 月 30 日為 1,550 萬美元，且在 2026 會計年度第二季末為 1,040 萬美元。本季應收帳款回收較少對現金造成壓力，而期末我們沒有任何負債。

Inventory totaled $30 million as of August 31, 2026, compared to $34.1 million in the prior year period, $32.7 million at November 30, 2025, and $30.4 million at the end of the fiscal second quarter. As we head into the holiday sales season, we expect inventory levels to decrease by $2 million to $3 million during the fourth quarter and to continue to decrease in 2027, leading to improved working capital efficiency. In summary, we believe we have a strong financial position today and the available resources to further invest in our long-term growth objectives.

截至 2026 年 8 月 31 日，庫存為 3,000 萬美元；相較之下，去年同期為 3,410 萬美元，2025 年 11 月 30 日為 3,270 萬美元，且在 2026 會計年度第二季末為 3,040 萬美元。隨著進入假期銷售旺季，我們預期第四季庫存水位將下降 200 萬至 300 萬美元，並在 2027 年持續下降，進而提升營運資金效率。總結而言，我們相信目前公司財務狀況穩健，且具備可用資源以進一步投資於我們的長期成長目標。

I'll now pass the call back to Conn to discuss more on the quarter and the actions underway across the business. Conn?

我現在把電話交回給 Conn，請他進一步說明本季表現以及我們在全公司推動中的各項行動。Conn？

Thank you, Lori. As I mentioned in my opening remarks, we are starting to see encouraging early signs in many of the long-term growth initiatives we've previously outlined. For remainder of today's call, I'd like to spend time specifically covering each of those areas in detail before getting into our longer-term outlook.

謝謝你，Lori。如同我在開場致詞中提到的，我們開始在先前所概述的多項長期成長計畫上，看見令人鼓舞的早期跡象。在今天電話會議接下來的時間裡，我想先針對這些領域逐一深入說明，之後再談我們較長期的展望。

Let me start with customer conversion and retail productivity. One of our primary objectives this year has been improving how effectively we convert customer consumer interests into purchases across both our direct-to-consumer and retail channels. We are beginning to see meaningful evidence that these efforts are producing results, both in initial discovery and in conversion.

我先從客戶轉換與零售生產力談起。我們今年的主要目標之一，是提升我們在直面消費者（DTC）與零售通路中，將消費者興趣更有效轉化為購買的能力。我們開始看到具體且有意義的證據，顯示這些努力在初期探索與轉換兩方面都正在產生效果。

For 3Q, website conversion improved from June to August sequentially. While we see ample room for continued improvement in conversion, this tells us that our early investments are starting to show initial signs of progress. Heading into the holiday season, we expect conversion to continue moving in the right direction, both as a result of it being a higher intent period and as we apply our early learnings to better tune our approach. Getting into details, the improvement is being driven by several factors.

在第三季，網站轉換率自 6 月到 8 月呈現逐月改善。雖然我們仍認為轉換率還有很大的持續改善空間，但這告訴我們，早期投入已開始顯現初步進展。進入假期旺季，我們預期轉換率將持續朝正向發展，一方面因為這段期間購買意圖較高，另一方面也因為我們會把早期學到的經驗應用於更精準地調整策略。就細節而言，這項改善主要由數個因素所驅動。

First, we are doing a better job of targeting, meaning we are attracting more new consumers who are more likely to purchase. With updated messaging, updated media placement, improved targeting, and added influencer partnerships, we are doing a better job of reaching audiences that are closely aligned with Byrna's products and mission.

第一，我們在受眾鎖定上做得更好，也就是吸引到更多更可能購買的新消費者。透過更新的訊息傳達、更新的媒體投放、改善的受眾鎖定，以及新增的網紅合作夥伴關係，我們更有效地觸及與 Byrna 產品與使命高度契合的受眾。

Second, once consumers arrive at Byrna.com, we are doing a better job of educating them and ultimately assisting them in making an informed purchase decision. Our Find the Right Launcher quiz continues to generate valuable insights while helping consumers better understand the differences across our product portfolio. To date, the program has generated over 280,000 responses and is converting at over 2 times the rate of the broader website.

第二，當消費者來到 Byrna.com 後，我們在教育消費者方面做得更好，並最終協助他們做出有資訊基礎的購買決策。我們的「Find the Right Launcher」測驗持續帶來有價值的洞察，同時幫助消費者更清楚了解我們產品組合之間的差異。截至目前，該計畫已累積超過 28 萬份回覆，其轉換率超過整體網站的 2 倍。

Similarly, our Try Before You Buy program continues producing encouraging results. The program has maintained a conversion rate of approximately 35% while introducing many new consumers to the Byrna ecosystem. On a related note, our returned launchers are also helping support our new refurbished products program.

同樣地，我們的「Try Before You Buy」計畫也持續產生令人鼓舞的成果。該計畫維持約 35% 的轉換率，同時將許多新消費者導入 Byrna 生態系。相關地，我們的退回發射器也在支援我們新的整新（refurbished）產品計畫。

During the quarter, we sold through all available Byrna SD refurbished product inventory, creating an incremental revenue opportunity while improving asset utilization and further supporting our operational efficiency initiatives. We expect this to remain a reoccurring initiative, allowing us to efficiently monetize return inventory when sufficient refurbished product is available.

在本季期間，我們已售罄所有可供銷售的 Byrna SD 整新產品庫存，在提升資產使用效率的同時，創造了額外的營收機會，並進一步支持我們的營運效率提升計畫。我們預期這將成為一項可重複執行的常態性措施，當有足夠的整新產品可供銷售時，能夠有效將退貨庫存變現。

Altogether, these initiatives are helping us improve both online traffic quality and website conversion. As for retail, productivity remains an area where we have more work to do. Partner inventory levels continue to weigh on reorder activity, and retail improvements typically take longer to implement than digital initiatives. That said, much of the work we set out to complete for the holiday season is now in place. We have updated retail marketing materials, improved product merchandising, enhanced product displays, expanded training efforts, and continued rolling these initiatives out with retail partners throughout our network.

整體而言，這些計畫正在幫助我們同時提升線上流量品質與網站轉換率。至於零售端，生產力仍是我們需要投入更多努力的領域。合作夥伴的庫存水位仍持續壓抑補貨（reorder）活動，而零售端的改善通常也比數位端計畫需要更長時間落地。不過，我們為假期旺季所規劃要完成的大部分工作目前都已到位。我們已更新零售行銷素材、改善產品陳列（merchandising）、強化產品展示架與展示方式、擴大訓練投入，並持續在我們的零售夥伴網絡中推動這些措施。

Additionally, we've continued to find unique ways to work with our retail partners, and this holiday season, we are equipping them with exclusive holiday bundles that we believe will resonate with shoppers. Combined, these investments position us well heading into the holiday season and should support stronger sales productivity over time. Our second priority is transforming how Byrna builds demand.

此外，我們也持續尋找與零售夥伴合作的獨特方式；在這個假期旺季，我們將提供他們專屬的節慶組合包（holiday bundles），我們相信這會引起消費者共鳴。綜合而言，這些投資讓我們在進入假期旺季時具備良好態勢，並應能隨時間推進支持更強的銷售生產力。我們的第二項優先事項，是轉型 Byrna 建立需求（demand generation）的方式。

Historically, Byrna relied heavily on a relatively narrow audience and a concentrated group of marketing partners. While those relationships remain important, we have been actively broadening both our audience and marketing approach as we work to expand on this narrow and deep initial audience.

過去，Byrna 在很大程度上依賴相對狹窄的受眾，以及一小群集中的行銷合作夥伴。雖然這些關係仍然重要，但我們正積極擴大受眾範圍並調整行銷方法，以便在這個「窄而深」的初始受眾基礎上進一步擴張。

Our traditional influencer channels continue to represent an important part of the business. These traditional channels have represented the majority of our marketing activity year-to-date, as the marketing program committed to at the beginning of the year has played out. While we believe the upcoming election cycle creates stronger demand trends within some of those audiences, their performance has declined over the past 18 months and remains below where we ultimately need them to be.

我們傳統的網紅通路仍然是業務的重要組成部分。截至目前，隨著年初所承諾的行銷計畫逐步展開，這些傳統通路仍占我們大部分的行銷活動。雖然我們認為即將到來的選舉週期會在其中部分受眾中帶來更強的需求趨勢，但其表現於過去 18 個月有所下滑，且仍低於我們最終所需達到的水準。

As a result, we've continued reallocating marketing dollars where possible toward channels and partnerships capable of reaching broader audiences and attracting new consumers to Byrna, while still delivering attractive customer acquisition economics. One example is our Fox Sports Media Partnership through iHeartMedia.

因此，我們持續在可行之處重新配置行銷預算，轉向能觸及更廣泛受眾、吸引新消費者認識 Byrna，同時仍能提供具吸引力的客戶獲取經濟效益（customer acquisition economics）的通路與合作夥伴。其中一個例子，是我們透過 iHeartMedia 與 Fox Sports 的媒體合作夥伴關係。

While programs like this typically take time to build awareness and momentum, we've already begun seeing more consumers reference this partnership and believe it is contributing positively to overall brand awareness. Building on those efforts, we recently launched a new campaign with iHeartMedia's The Bobby Bones Show, America's leading country morning radio program.

雖然這類計畫通常需要時間來建立知名度與動能，但我們已開始看到更多消費者提及這項合作，並相信它正對整體品牌知名度帶來正面貢獻。在此基礎上，我們近期也與 iHeartMedia 旗下的《The Bobby Bones Show》推出新活動；該節目是美國領先的鄉村音樂晨間廣播節目。

This partnership reflects our continued strategy of reallocating existing media investments, when possible, towards trusted platforms with broader mainstream reach, allowing us to introduce Byrna's less lethal personal security solutions to new consumer audience. Through a combination of national radio endorsements, podcast integrations, and digital media placements, we believe these initiatives will help expand brand awareness, improve customer education, and further strengthen engagement with prospective customers as we continue expanding the Byrna brand. Another important area focus has been our creator strategy.

這項合作反映了我們持續的策略：在可行時，將既有媒體投資重新配置到更受信賴、且具更廣泛主流觸及的媒體平台，讓我們能把 Byrna 的「較低致命性」（less lethal）個人安全解決方案介紹給新的消費者受眾。透過全國性廣播口播背書、Podcast 內容整合，以及數位媒體投放的組合，我們相信這些措施將有助於擴大品牌知名度、提升客戶教育成效，並在我們持續擴張 Byrna 品牌的同時，進一步強化與潛在客戶的互動。另一個重要的聚焦領域是我們的創作者策略。

Working alongside Acceleration Partners, we have now onboarded more than 50 creators into our social creator ecosystem that have a combined following of 3.8 million. We also remain on track towards our objective of building a network of approximately 100 creators by calendar year-end. As a reminder, we are targeting established personalities as well as micro and mid-sized creators with 10,000 to 500,000 followers on Instagram, Facebook, and YouTube.

在 Acceleration Partners 的協助下，我們目前已在社群創作者生態系中導入超過 50 位創作者，其合計追蹤人數達 380 萬。我們也仍按計畫朝著在日曆年度年底前建立約 100 位創作者網絡的目標前進。提醒一下，我們鎖定的對象包含知名人物，以及在 Instagram、Facebook 與 YouTube 上擁有 1 萬至 50 萬追蹤者的微型與中型創作者。

The initiative has targeted both our traditional, firearm-owning core audience and our new growth audiences. Encouragingly, we have seen a strong response from creators that primarily reach new audiences that include women's self-defense, families, runners, commuters, and outdoor consumers, including many that were completely unaware of Byrna before our engagement with them.

這項計畫同時鎖定我們傳統的、擁槍的核心受眾，以及我們新的成長受眾。令人鼓舞的是，我們看到主要觸及新受眾的創作者反應強烈，這些新受眾包括女性自我防衛、家庭族群、跑者、通勤族與戶外消費者；其中許多人在我們與其合作之前，完全不知道 Byrna。

This has enabled us to create and promote creator-driven content that shows how Byrna's products can support personal safety at home, while commuting, during exercise and travel, and in outdoor settings. While still early, results have been encouraging. Engagement across Byrna's social media channels has increased by 95% from 1Q, and we are beginning to see meaningful traffic, engagement, and sales activity generated by creator content.

這使我們能夠製作並推廣由創作者驅動的內容，展示 Byrna 產品如何在居家、通勤途中、運動與旅行期間，以及戶外情境中支持個人安全。雖然仍處於早期階段，但成果令人鼓舞。Byrna 各社群媒體渠道的互動量較第一季增加了 95%，我們也開始看到由創作者內容帶來的具體流量、互動與銷售活動。

In fact, despite launching only recently, the program has already generated more than $45,000 in sales, exceeding our September target by approximately 300%. We have also already achieved our full-year Quick-Through objective in just two months, while several months remain in the year. While the ecosystem remains in its early stages, these results suggest adoption is ramping faster than we initially anticipated. We believe this creator ecosystem will become an increasingly important customer acquisition engine over time. We are also continuing to look for creative ways to introduce Byrna to new consumers in person.

事實上，儘管該計畫只是近期才推出，已經帶來超過 45,000 美元的銷售額，較我們 9 月目標高出約 300%。我們也在短短兩個月內就達成全年 Quick-Through 目標，而今年仍有數個月尚未結束。雖然這個生態系仍在早期階段，但這些結果顯示採用速度正比我們原先預期更快地提升。我們相信，這個創作者生態系將隨時間推進，成為愈來愈重要的客戶獲取引擎。我們也持續尋找創新的方式，讓新消費者能在實體場景中認識 Byrna。

One example was our recent activation at the Bass Pro Shops night race at the Bristol Motor Speedway, where we were in front of more than 100,000 race fans over three nights of racing. The event provided opportunity to showcase Byrna to a highly relevant consumer audience, many of whom were learning about the brand for the first time.

其中一個例子是我們最近在布里斯托賽車場（Bristol Motor Speedway）舉辦的 Bass Pro Shops 夜間賽事中的行銷推廣活動，三個比賽夜晚我們面向超過 100,000 名賽車迷。該活動讓我們有機會向高度相關的消費者族群展示 Byrna，其中許多人是第一次認識這個品牌。

Live product displays, and educational discussions around Byrna's personal safety solutions, we were able to drive meaningful consumer engagement while significantly expanding brand and category awareness. Experience like these allow consumers to see our products firsthand and better understand the value proposition, helping support both awareness and future demand generation. On a separate but related note, I'd like to provide a brief update on our recent acquisition of Hero Defense Systems, as it also supports this broader demand generation strategy. I'm pleased to report that the acquisition officially closed in August, and we have begun integration efforts here.

透過現場產品展示，以及圍繞 Byrna 個人安全解決方案的教育性交流，我們得以推動具實質意義的消費者互動，同時大幅提升品牌與品類的認知度。像這樣的體驗能讓消費者親眼看到我們的產品，並更好地理解其價值主張，有助於同時支撐認知提升與未來需求的創造。另外但相關的是，我也想就我們近期收購 Hero Defense Systems 一事提供簡要更新，因為這同樣支持更廣泛的需求創造策略。我很高興報告，該收購已於 8 月正式完成交割，我們也已在此展開整合作業。

Our focus has been on rapidly improving the cost, quality, and manufacturability of the HERO product lines. With these concentrated efforts across product design, supply chain and manufacturing, we intend to relaunch HERO's products as an integrated part of Byrna's product lineup at SHOT Show in January. HERO expands Byrna's product ecosystem into new price points and everyday carry form factors, creating additional entry points into the category while providing us with more opportunities to engage consumers through their personal safety journey. Additionally, we believe that the HERO product lines will open up opportunities across new retail partners.

我們的重點一直放在快速改善 HERO 產品線的成本、品質與可製造性。透過在產品設計、供應鏈與製造端的集中努力，我們計畫於 1 月的 SHOT Show 上，將 HERO 產品以 Byrna 產品組合整合的一部分重新推出。HERO 讓 Byrna 的產品生態系延伸至新的價格帶與日常隨身攜帶（EDC）外型規格，為該品類創造更多切入點，同時也讓我們在消費者個人安全旅程中有更多互動機會。此外，我們相信 HERO 產品線將為我們帶來與新零售合作夥伴合作的機會。

Moving to our third priority, which is enhancing operational efficiency, throughout the year, we've remained focused on building systems that will improve profitability, increase cash generation, and better align production with demand. One of the most important actions we took was transitioning ammunition manufacturing to an outsourced model this past quarter.

談到我們的第三項優先事項，也就是提升營運效率：全年以來，我們持續專注於建立能提升獲利能力、增加現金創造，並使生產與需求更一致的系統。我們在本季採取的最重要行動之一，是將彈藥製造轉為外包模式。

We are already seeing meaningful benefits from this transition, including reduced operational complexity, enhanced strategic flexibility, and improved profitability. The shift has produced an approximate gross margin benefit of 1,200 basis points in our ammunition, and we expect those benefits to continue moving forward. More broadly, margins continued to improve during the quarter. Adjusted gross margin was approximately 65%, up from 62% in 2Q and roughly 500 basis points above last year. Well ahead of the approximately 62% level we said we expected to hold through year-end.

我們已經看到這項轉型帶來顯著效益，包括降低營運複雜度、提升策略彈性，以及改善獲利能力。此一轉變使我們的彈藥毛利率約提升 1,200 個基點，我們預期這些效益未來仍將持續。更廣泛而言，本季毛利率持續改善。調整後毛利率約為 65%，高於第二季的 62%，也較去年同期高出約 500 個基點。明顯優於我們先前所說預期在年底前維持的約 62% 水準。

Notably, we achieved this on lower volume, driven by operational efficiency gains, and favorable product and channel mix. The team's ability to deliver these results during a challenging top-line quarter speaks to the long-term potential we're building in the business. Reducing and right-sizing our inventory levels also remains a significant focus area as we look to better align production with demand in the future. As we move into the holiday season, we expect stronger sell-through of existing retail inventory.

值得注意的是，我們是在較低出貨量的情況下達成上述成果，主要受惠於營運效率提升，以及有利的產品與通路組合。團隊能在營收端面臨挑戰的一季仍交出這樣的成績，顯示我們正在打造的業務具備長期潛力。在展望未來使生產更貼近需求之際，降低並調整至適當水準的庫存也仍是重要的聚焦領域。隨著進入假期旺季，我們預期現有零售端庫存的銷售去化（sell-through）將更為強勁。

As Lori mentioned, we expect a reduction of inventory by $2 million to $3 million in 4Q. Combined with temporarily moderated production levels, we expect to see overall inventory begin to normalize while also providing the added benefit of improved cash generation. In summary, we are continuing to identify opportunities to further improve manufacturing efficiency, product costs, and operational productivity so that as our sales continue to ramp, we'll see more of that reflected in our bottom line.

如 Lori 所提到，我們預期第四季庫存將減少 200 萬至 300 萬美元。配合暫時下調的生產水準，我們預期整體庫存將開始回歸正常，同時也帶來改善現金創造的額外效益。總結而言，我們將持續尋找進一步提升製造效率、降低產品成本與提高營運生產力的機會，讓隨著銷售持續爬升，更多成果能反映在我們的最終獲利上。

Moving forward, the first steps of our marketing transformation are implemented. Our creative ecosystem is expanding, our retail programs are rolling out and will accelerate post-holiday, and our operational initiatives are beginning to generate measurable benefits. At the same time, we remain realistic about the work still to be done. We are still in a transition period, and while we expect to drive sequentially improved results, 4Q faces a difficult comparison against an exceptionally strong prior year period.

展望未來，我們行銷轉型的第一步已經落地。我們的創意生態系正在擴大，零售方案正逐步推出並將在假期後加速，而營運相關的措施也開始產生可衡量的效益。同時，我們也務實看待仍需完成的工作。我們仍處於轉型期，雖然我們預期業績將逐季改善，但第四季將面臨與去年同期異常強勁表現相比的艱難比較基期。

Looking into the end of the fiscal year, we believe it is clear that the business is now moving in the right direction. And with the majority of the initiatives we targeted for the holiday season now in place, we are ready to start playing offense. As we begin looking beyond the current transition period, it is important to emphasize that our focus extends far beyond restoring near-term growth. We believe Byrna has an opportunity to play a leading role in shaping the future of personal safety by expanding awareness and adoption of less-lethal solutions, among a much broader population of consumers.

展望財政年度末，我們認為很清楚公司業務已朝正確方向前進。而且，隨著我們為假期旺季所鎖定的大多數措施現已就位，我們已準備好開始主動出擊。當我們開始把目光放到當前轉型期之後，必須強調的是，我們的重點遠不僅是恢復短期成長。我們相信 Byrna 有機會在塑造個人安全的未來方面扮演領導角色，透過在更廣泛的消費者族群中提升對「低致命性」解決方案的認知與採用。

Today, we remain in the early stages of that opportunity. Our ability to meet that opportunity is rooted in four key pillars. First, awareness, adoption, and conversion across the Byrna platform. Everything we've discussed today, from media partnerships and creator programs to website improvements and retail initiatives, is ultimately designed to increase awareness of Byrna's unique personal safety solutions, improve conversion throughout the customer journey, and bring new consumers into the category. We are encouraged by the early improvements we've seen in website traffic and conversion rates.

目前，我們仍處於把握這項機會的早期階段。我們能否抓住這項機會，取決於四個關鍵支柱。第一，是在 Byrna 平台上的認知、採用與轉換。我們今天討論的所有事項，從媒體合作與創作者計畫，到網站改善與零售端措施，最終都是為了提升市場對 Byrna 獨特個人安全解決方案的認知、改善客戶旅程各環節的轉換率，並將新消費者帶入該品類。我們對目前在網站流量與轉換率上看到的初步改善感到鼓舞。

We believe there remains a significant opportunity to further optimize the customer experience. As part of this effort, we plan to launch a redesigned mobile native website in the first quarter that better reflects how consumers shop today and establishes a foundation for continuous optimization rather than periodic improvements. We also see substantial opportunity within our retail and dealer channels, where we have hired our first dedicated regional sales manager focused on continuously meeting with our partners to improve sell-through, expanding dealer relationships, and increasing our presence with both existing and new retail partners.

我們相信在進一步優化客戶體驗方面仍有相當大的機會。作為此項努力的一部分，我們計畫在第一季推出重新設計的行動原生網站，更貼近當今消費者的購物方式，並建立持續優化的基礎，而非僅進行週期性的改善。我們也在零售與經銷通路看到可觀機會；我們已聘用第一位專職的區域銷售經理，專注於持續與合作夥伴會面以提升銷售去化、擴大經銷商關係，並提高我們在既有與新零售合作夥伴中的能見度。

As we continue to broaden our product portfolio, including the HERO offerings, we believe these efforts can further strengthen our product acceptance in large chains to expand our distribution footprint and accelerate adoption across multiple channels.

隨著我們持續擴充產品組合（包括 HERO 產品），我們相信這些努力能進一步強化大型連鎖通路對我們產品的接受度，擴大我們的通路覆蓋範圍，並加速多通路的採用。

Our second pillar is extending our presence into professional security, law enforcement, and international markets. Historically, these markets have not been major focus areas for Byrna and remain largely underpenetrated relative to their long-term potential.

第二個支柱，是將我們的布局延伸至專業保全、執法機關與國際市場。過去這些市場並非 Byrna 的主要重點領域，且相較其長期潛力，目前仍屬滲透不足。

Third, continuing to improve operational efficiency. The progress we've made with gross margins, manufacturing efficiency, ammunition production, inventory management, and cash generation demonstrate the steps we've taken to build a stronger financial model. There are still more ways for us to further improve this, and we see this as an exciting opportunity as we aim to grow both our top and bottom lines.

第三，是持續提升營運效率。我們在毛利率、製造效率、彈藥生產、庫存管理與現金創造方面取得的進展，展現了我們為建立更強健財務模型所採取的步驟。我們仍有更多方式可以進一步改善，而在我們力求同時成長營收與獲利之際，我們將其視為令人振奮的機會。

Finally, we will continue evaluating strategic opportunities that strengthen and complement our personal safety platform. We believe HERO is a good example of the type of opportunity we are interested in pursuing as it broadens our ecosystem, expands our addressable market, and creates additional pathways for long-term growth.

最後，我們將持續評估能強化並互補我們個人安全平台的策略性機會。我們認為 HERO 是我們有興趣追求之機會類型的良好例子，因為它擴大了我們的生態系、拓展了可服務市場，並為長期成長創造更多路徑。

Let me be more specific about why we're confident in this framework. First, our margin structure is fundamentally better now compared to Byrna's last growth phase. At mid-60s adjusted gross margins, ammunition sourced variably and at a lower cost, and production more closely aligned to demand, more of every incremental revenue dollar can flow through to the bottom line.

讓我更具體說明為何我們對這個架構充滿信心。第一，相較於 Byrna 上一次成長階段，我們目前的毛利結構在本質上更好。在調整後毛利率約為 60% 中段、彈藥以更低成本且更具彈性的方式採購，以及生產更貼近需求的情況下，每增加 1 美元的營收，就有更多能流向最終獲利。

Second, investments in leadership, partner relationships, and our creator platform are now largely in place. So growth from here should come without significant incremental cost, which creates real operating leverage.

第二，對領導團隊、合作夥伴關係以及我們創作者平台的投資，目前大多已到位。因此，從現在開始的成長應可在不需要顯著增加額外成本的情況下實現，從而帶來真正的營運槓桿。

Third, the runway from our expanded audience segmenting provides us a greater market opportunity without alienating our legacy core demographic. We are adding more than 50 million likely buyers in segments Byrna has never addressed in a focused way. Additionally, we're implementing a clear plan to drive sell-through in our retail footprint, and with the HERO acquisition, a product ladder that meets consumers at every stage of their personal safety journey.

第三，透過我們擴大後的受眾分眾，我們在不疏離既有核心客群的情況下，獲得了更大的市場機會。我們正在新增超過5,000萬名可能買家，這些族群是Byrna過去從未以聚焦方式觸及的。此外，我們正在推動一項明確計畫，以提升我們零售據點的銷售動能（sell-through）；並且透過收購HERO，建立一個能在消費者個人安全旅程各階段都能對應需求的產品階梯。

When put together, we believe this complementary framework positions Byrna to return to a meaningful growth profile with expanding EBITDA margins and strong cash conversion. We intend to host an Investor Day in the first half of next year where we plan to further lay out the financial algorithm and key drivers underpinning our four long-term pillars. We will provide additional information on timing in the coming months.

綜合來看，我們相信這套互補的架構，將使Byrna得以回到具實質意義的成長軌跡，並帶動EBITDA利潤率擴張與強勁的現金轉換。我們計畫在明年上半年舉辦投資人日，屆時將進一步闡述財務演算法以及支撐我們四大長期支柱的關鍵驅動因素。我們將在未來幾個月提供更多關於時程的資訊。

As a final note, I'd like to highlight a few key additions to our senior leadership team that we've announced over the past few weeks. We are always looking to bring on great talent, and it is our belief that with these recent additions, we now have the team in place to execute against the strategy I've outlined today. First, we appointed Jim White as Senior Vice President of Retail and Channel Growth.

最後，我想強調我們在過去幾週宣布的幾項高階領導團隊重要增補。我們始終致力於延攬優秀人才，而我們相信，隨著這些近期加入的人選到位，我們現在已具備能夠落實我今天所概述策略的團隊。首先，我們任命Jim White擔任零售與通路成長資深副總裁。

And second, we announced Nate Secor as Senior Vice President of Brand and Marketing. Together, Jim and Nate will be focused on accelerating retail expansion, omnichannel growth, customer acquisition, and brand development. At the board level, we also announced the appointments of Rose Lopez Cavori and Dr. Matthew McBrady. Rose and Matt provide valuable and uniquely differentiated backgrounds in enterprise risk management, capital markets, corporate governance, and scaling growth-oriented organizations that will be a significant value add to our existing team as we build the architecture of Byrna's next phase of growth.

第二，我們宣布Nate Secor擔任品牌與行銷資深副總裁。Jim與Nate將共同聚焦於加速零售擴張、全通路成長、客戶獲取以及品牌發展。在董事會層級，我們也宣布任命Rose Lopez Cavori與Matthew McBrady博士。Rose與Matt在企業風險管理、資本市場、公司治理，以及擴大以成長為導向組織規模方面，具備寶貴且高度差異化的背景；在我們打造Byrna下一階段成長架構之際，將為現有團隊帶來顯著的價值增益。

To close, we believe we have the people, strategy, and operational framework necessary to build Byrna into a growth company again, larger, more profitable, and a more durable business over time. The opportunity ahead remains significant, and we look forward to updating you on our progress in the quarters ahead.

總結來說，我們相信我們已具備必要的人才、策略與營運架構，能讓Byrna再次成為一家成長型公司——規模更大、獲利更高，且隨時間推移更具韌性的企業。眼前的機會仍然相當可觀，我們也期待在接下來的幾個季度向各位更新我們的進展。

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

以上，接線員，我們準備開始回答問題。

Thank you. We will now be conducting a question and answer session. (Operator Instructions)

謝謝。我們現在將進行問答環節。(接線員指示)

Jeremy Hamblin, Craig-Hallum.

Jeremy Hamblin，Craig-Hallum。

Good morning. I wanted to just start with some of the improvements that you saw in your web sessions. You noted that I think August was 29,000 sessions a day. Still obviously down from what you had been seeing. But have you seen some of that? Did that improvement continue into September? And were you also seeing conversion rates continue to improve in September?

早安。我想先從你們網站造訪（sessions）的一些改善談起。你提到我記得8月是每天29,000次造訪。顯然仍低於你們先前看到的水準。但你們有看到部分回升嗎？這樣的改善有延續到9月嗎？另外，你們在9月也看到轉換率持續改善嗎？

Thanks, Jeremy, and great to hear from you. Thanks for the question. You know, we were really encouraged by what we saw from both a sessions and conversion rate in August. And, you know, we're really focused on now continuing that trend into 4Q. And what's exciting about that is not only is it really a higher intent period where we see, you know, more consumers will be engaging, but a lot of the initiatives that we've put in place from both the creative ecosystem and the new marketing initiatives will really be rolling out in full force. So we expect to see improvements over kind of the 3Q numbers throughout 4Q, which we're excited about.

謝謝你，Jeremy，很高興聽到你的聲音。謝謝提問。你知道，我們對8月在造訪量與轉換率兩方面看到的表現感到相當振奮。而且，我們現在非常專注於把這個趨勢延續到第四季。令人興奮的是，第四季不僅是意圖更高的期間，我們會看到更多消費者參與，同時我們在創意生態系與新行銷計畫上所部署的多項措施，也將全面推進。因此，我們預期第四季整體表現會較第三季數據持續改善，這點讓我們很期待。

Okay. Well, let me switch gears and ask a little bit about the wholesale business, which obviously had a tough quarter. I think down 64%. I wanted to understand, you've had some partnerships that were previously announced. I wanted to get an update on your retail door expansion. You had a deal with Academy, and a couple of other retail chains, but just wanted to get a sense of stabilization.

好的。那我換個方向，想問一下批發業務；這一季顯然表現不佳。我記得是下滑64%。我想了解一下，你們之前宣布過一些合作夥伴關係。我想請你更新一下零售門店（door）擴張的進度。你們和Academy有合作，還有其他幾家零售連鎖，但我想了解目前是否已趨於穩定。

I noted in the commentary that it sounded like the sell-through didn't hit your targets that you were anticipating. So why don't to get an update on that channel of business and then as we look ahead into '27 and beyond? How much of the recovery in the total business should we be expecting to come from the wholesale channel, which I think previously really had been seen as a big opportunity for growth?

我在你們的說明中注意到，聽起來銷售動能（sell-through）沒有達到你們原先預期的目標。所以能否更新一下這個通路的狀況，以及當我們展望到2027年及之後？整體業務復甦中，有多少比例應該預期會來自批發通路？我想過去批發一直被視為一個很大的成長機會。

Thanks. I appreciate the question. So if you think about where we are from a retail channel point of view, a lot of the previously announced partnerships, they are live and they are going. But we don't anticipate seeing meaningful doors added in those new chains throughout the holiday period. Typically, once you get to that point in time, you know, stores have set their assortment and their displays for the holiday period.

謝謝。感謝你的提問。如果從零售通路的角度來看，先前宣布的多數合作夥伴關係都已上線並在運作中。但我們不預期在假期期間，這些新連鎖體系會新增大量門店數。通常到了那個時間點，門店已經為假期檔期設定好商品組合與陳列。

So we expect that to pick up and ramp in 1Q next year from a door expansion point of view. We still definitely view the retail channel as an overall growth pillar for the business going forward and certainly an area where we think we are, you know, investing meaningfully to drive sell-through, which is really an area that we didn't have meaningful investments when we launched the programs a little over one year ago now. So increasing and ramping those sell-through programs is what's really going to drive us going forward. Lori, anything else you'd add?

因此，從門店擴張的角度來看，我們預期明年第一季會開始回升並加速。我們仍然明確把零售通路視為未來業務的整體成長支柱之一；也確實是我們認為需要投入大量資源以推動銷售動能（sell-through）的領域——而這正是我們在大約一年前啟動這些計畫時，尚未做出實質投資的部分。因此，提升並加速這些sell-through計畫，將是推動我們向前的關鍵。Lori，你還有什麼要補充的嗎？

And the only thing I'd add is we are doing with a couple of large chains. Some holiday bundles that are specific and exclusive to their locations. In one case, it's a color, and in another case, it's kind of a bundled product. So we think, you know, those should do really well, giving them something that differentiates them, and those are the type of partnerships and arrangements we want to do going forward to help them with their sales.

我唯一要補充的是，我們正在與幾家大型連鎖合作，推出一些假期組合包，且是針對其門店地點專屬、獨家的。其中一個案例是特定顏色款，另一個案例則是某種組合式產品。所以我們認為這些應該會賣得很好，因為能提供差異化的商品。而這正是我們未來希望持續推動的合作模式與安排，以協助他們提升銷售。

Okay, got it. In terms of the sell-through rates, you know, right? So you had, I think you know there was some, you know, stocking, inventory stocking that happened earlier and that's part of why you're seeing the percentage rate down as much in 3Q. But the sell-through rates, as you've, you know, improved on your marketing approach. Are you starting to see some traction, with the sell-through and conversion rates in your wholesale channel?

好的，了解。就sell-through比率而言，你知道，對吧？所以我想你們之前有一些提前備貨、庫存進貨的情況，這也是為什麼你們在第三季看到百分比降幅那麼大的部分原因。但就sell-through比率來看，隨著你們改善行銷方式，你們是否開始在批發通路看到一些進展，例如sell-through與轉換率的提升？

Yes, so we have definitely started seeing that reorder activity pick up as we went through 3Q and saw that sell through, you know, be stronger than it had been kind of earlier in the year. And we don't have as good of detail at the store level with some chains, but those that we do, we've started to see that. See, you know, some traction across those platforms, but more encouragingly is the reorder cadence picking up to some extent.

是的，所以我們確實開始看到補貨（reorder）活動在第三季期間回升，並且看到sell-through較今年稍早時更強。而且對於某些連鎖，我們在門店層級沒有那麼完整的細節，但對於我們有掌握的那些，我們已開始看到一些成效。也就是說，在這些平台上看到一些進展；但更令人鼓舞的是，補貨的節奏在某種程度上正在加快。

Another important factor there is we are expanding our e-commerce partnerships with our retail platforms so that we're enabling them to drop ship. So when they are out of stock in their stores or don't have inventory in a certain region, we can backfill them and drop ship from our operations in Fort Wayne, as well as expand the overall assortment that they have available online. We believe that is another initiative that will help drive e-commerce over time and help drive our retail partners.

另一個重要因素是，我們正在擴大與零售平台的電商合作夥伴關係，讓我們能夠提供代發貨（drop ship）。因此，當他們的門店缺貨，或在某個區域沒有庫存時，我們可以從位於Fort Wayne的營運據點進行補貨並代發貨；同時也能擴大他們在線上可提供的整體商品組合。我們相信，這是另一項能隨時間推動電商成長、並協助我們零售合作夥伴的措施。

Got it. Okay. Another just high-level question. Again, as you continue to transform the business and you have your four pillars, if we think about this newer channel that hasn't been a focused historically law enforcement, professional security, those sound like some interesting opportunities. Law enforcement, of course, does have a fairly large entrenched player that has a pretty large penetration in the space.

了解。好的。另外一個比較高層次的問題。同樣地，隨著你們持續轉型業務、並且有四大支柱，如果我們思考這個較新的通路——過去並未作為重點的執法單位、專業保全——聽起來是一些有趣的機會。當然，執法市場確實有一個相當大型、根基深厚的既有玩家，在該領域的滲透率也相當高。

Just talk to me about the cost involved as you get into this particular category. I wonder what type of investment needs to be made to make significant progress. I don't know that like the strategy on influencers and social media is maybe going to have the same impact on that particular channel of potential business. So, you know, what's the kind of the timing on when you think that channel, you know, law enforcement, professional security, that we can start to see some traction, or is that mostly going to be an international focus for you?

請跟我談談你們進入這個特定類別所涉及的成本。我想知道要取得顯著進展，需要投入什麼樣的投資。我不確定像是網紅與社群媒體的策略，對那個潛在業務通路是否會有同樣的影響。所以，你知道，你們認為那個通路——執法、專業保全——大概什麼時候我們能開始看到一些進展（traction）？還是說那主要會是你們的國際市場重點？

Yes, no, appreciate the question. And to be clear, you know, our near-term focus is absolutely on improving the D2C business, the D2C conversion, and traffic on the D2C side. So you'll see the majority of our initiatives in the very near term targeting that. As you think about law enforcement, professional security, and growth in internationally. Those become key pillars for the long-term growth of the organization as we continue to expand and grow.

是的，謝謝你的提問。先說清楚，我們短期的重點絕對是改善 D2C 業務、D2C 的轉換率，以及 D2C 端的流量。所以在非常短期內，你會看到我們大多數的措施都會聚焦在這些目標上。至於執法、專業保全，以及國際市場的成長。隨著我們持續擴張與成長，這些會成為組織長期成長的關鍵支柱。

And we'll start making incremental investments in those areas next year, but they're not going to be, you know, things that meaningfully drive in the short term or become significant costs in the short term around that. I would say is focus initially will likely be on that security market because, as you know, the long-term sell-through in the law enforcement side of the house takes longer.

我們會在明年開始在這些領域做一些逐步的增量投資，但它們不會是那種在短期內有意義地帶動成長、或在短期內形成顯著成本的項目。我會說，我們一開始的重點可能會放在保全市場，因為如你所知，執法端的長期銷售導入（sell-through）週期更長。

Lori, anything you'd highlight there?

Lori，你有什麼要補充強調的嗎？

I mean, I think, you know, we've got some internal resources and as Conn said, we can make some small incremental investments there to start driving that. But there are certainly some large opportunities. And, our product just fits a good need for some of these. And professional security is a great area where something less lethal, that they can carry is much more attractive to them and oftentimes than a lethal firearm.

我的意思是，我想你知道，我們有一些內部資源，而且如 Conn 所說，我們可以在那裡做一些小幅的增量投資來開始推動。但那裡確實有一些很大的機會。而且，我們的產品很符合其中一些需求。專業保全是一個很好的領域，因為「較不致命」（less lethal）、他們可以攜帶的產品，對他們來說往往比致命槍械更有吸引力。

Got it. Gross margin. The color on the change in ammunition production, super helpful. Can we assume then that this kind of mid-60s gross margin rate is sustainable on a go-forward basis and kind of a step up from that 62%? Or should we be a little bit more conservative than what you did in 3Q?

了解。毛利率。你們對彈藥生產變化的補充說明非常有幫助。那我們是否可以假設，這種約中段 60% 的毛利率水準在未來是可持續的，並且相較於 62% 是一個台階式上升？還是說，我們應該比你們在第三季（3Q）的表現保守一些？

Yes, thanks Jeremy. We do expect that range, near the mid-60s to be where we expect to be going forward, both, you know, with the operational efficiencies that we've gained and other initiatives that we'll work through in next year. So we expect that to continue on.

是的，謝謝你 Jeremy。我們確實預期未來會維持在中段 60% 左右的區間，這反映了我們已取得的營運效率提升，以及明年我們將推進的其他措施。所以我們預期這個水準會延續。

Matt Koranda, Roth Capital Partners.

Roth Capital Partners 的 Matt Koranda。

Hey guys, good morning. Maybe just picking up on the web traffic questions that Jeremy was asking, where does conversions sit right now, maybe over the last couple of months, if you want to do a blended number? I know you mentioned for the last couple of quarters, it's been sub 1%. That you said in the, I think in the prepared remarks and in the release that it had improved sequentially throughout 3Q. Are we now back to that 1% number or do we still have some wood to chop on that front?

各位早安。接續 Jeremy 剛才問的網站流量問題，目前轉換率大概落在哪裡？如果你願意的話，可以用最近幾個月的混合數字來看。我知道你提到過去幾個季度一直低於 1%。你在我想是事先準備的講稿以及新聞稿中提到，第三季（3Q）期間轉換率有逐季改善。那我們現在回到 1% 了嗎？還是說在這方面還有很多工作要做？

Yes, no, appreciate the question, Matt, and good morning to you as well. We are not at 1% from a conversion point at this point in time. We have parts of the site, like the quiz that we mentioned and the program that are north of 1%, but if you think about where we are today, we are, you know, north of 0.6%, but we are not where we need to be kind of long-term. We expect that to continue improving throughout 4Q. You know, mentioned both, it is a higher intent program, but we are rapidly applying the learning that we're seeing from both the quiz and our sessions to really drive an improved conversion rate overall.

是的，謝謝你的提問，Matt，也跟你說聲早安。就目前而言，我們的轉換率還沒有到 1%。我們網站的某些部分，例如我們提到的測驗（quiz）以及該方案（program），轉換率已經高於 1%；但如果看整體目前的狀況，我們大概在 0.6% 以上，但距離我們長期需要達到的水準仍有差距。我們預期第四季（4Q）會持續改善。如同提到的，這是一個高意圖（higher intent）的方案，但我們也正在快速把從測驗與各次互動（sessions）中看到的學習，應用到整體以推動更好的總體轉換率。

Okay, that's helpful. And then maybe one I wanted to hear a little bit more about if you can, I'm sure you can do this, but like, the new creators that have been added to the platform, some of the new influencers, obviously they're going to be additive to traffic to the site, but if you isolate sort of what you're seeing from visitors that are coming through those channels, is conversion accretive, I guess, and how you think about sort of driving better conversion over the next several quarters. Is that a good guy for you as you drive more traffic from those new influencers?

好的，這很有幫助。另外一個我想再多聽一些的問題：如果可以的話——我相信你們可以——關於新增到平台上的新創作者、一些新的網紅，顯然他們會為網站帶來額外流量；但如果你把從那些通路進來的訪客單獨拉出來看，你看到的轉換率是否是增益性的（accretive）？以及你們如何思考在未來幾個季度推動更好的轉換率。當你們從那些新網紅導入更多流量時，這是否是你們的一個利多？

Great question. What's great about that influencer strategy is we can really target specific audiences with the right message. So I'm sure as you're aware, people who follow a certain influencer really, one, listen to them and two, attune to the messages that they're delivering into that might micro-segment. So what we have seen is traffic coming from those specific influencers into the website are converting at a higher rate than what I would call returning customers at this point in time, which is great to see. However, we still want to continue to improve and drive overall conversion rates across the portfolio.

很好的問題。這個網紅策略的優點在於，我們可以用正確的訊息精準鎖定特定受眾。所以我相信你也知道，追隨某位網紅的人，第一會聽他們的，第二也會對他們傳遞給那個微型分眾（micro-segment）的訊息產生共鳴。因此我們看到，從那些特定網紅導入到網站的流量，其轉換率高於我目前所稱的回訪客戶（returning customers），這點很令人振奮。不過，我們仍希望持續改善，並推動整體產品組合的總體轉換率提升。

Okay, fair enough. Maybe on the retail and dealer channel demand, one, way I'd like to try to think about it is, if you're willing to share sort of POS and what you're seeing maybe at the, you know, at the retail level on, on a POS point of view, because obviously there's going to be noise from stocking orders that were taken over the last, you know, several quarters and, and, you know, last year or so. But what does sort of sell-through look like at your, I guess, your more major mature retail partners or your mature dealers? I wanted to see if we can get at it that way.

好的，合理。再談零售與經銷通路的需求：我想用一種方式來思考——如果你願意分享 POS（銷售點）數據，以及你們在零售端、從 POS 角度看到的狀況，因為顯然會有一些雜訊，來自於過去幾個季度、以及大概去年左右所接到的補庫存訂單（stocking orders）。但在你們較主要、較成熟的零售合作夥伴或成熟經銷商那邊，終端銷售（sell-through）看起來如何？我想看看能不能用這種方式來理解。

Yes, thanks Matt. I mean, I would say that sell-through, as we've said, has been lower than we expected and we're working with those retail partners to try and find initiatives to help drive that. We still know that those locations that have shooting experience do better than those that don't. So we've continued to roll out some of that, certainly talking with partners on how that can work.

是的，謝謝 Matt。我的意思是，我會說如同我們所說的，終端銷售（sell-through）低於我們的預期，我們正與這些零售夥伴合作，嘗試找出一些措施來推動改善。我們仍然知道，那些有射擊體驗（shooting experience）的門店表現會比沒有的更好。因此我們持續推動其中一些作法，當然也在與合作夥伴討論如何落地。

But I think we are focused on how we help them with the sell-through, whether that be as Conn mentioned through the e-commerce, so we can drop ship from their e-commerce side as well as these holiday bundles and particular, you know, maybe certain advertising that we can do, kind of co-op type of things and email traffic to help drive their sales as well. So we're looking at all of those initiatives to help them.

但我認為我們的重點在於如何協助他們提升終端銷售，不論是如 Conn 提到的透過電商，讓我們也能從他們的電商端進行代發貨（drop ship），或是透過這些節慶組合包（holiday bundles），以及一些特定的廣告投放——我們可以做一些類似共同分攤（co-op）型的活動——再加上導入電子郵件流量來協助帶動他們的銷售。所以我們正在檢視所有這些措施來協助他們。

Yes, and we just don't have the same level of conversion visibility across all of our third-party stores. That we can obviously see on Byrna.com.

是的，而且我們在所有第三方店鋪的轉換可視性並沒有同樣的水準。這一點我們當然可以在 Byrna.com 上看到。

Okay, got it. Maybe just last one on the HERO integration. I guess I haven't picked up on the product on your website yet. Maybe I missed that. How soon should we expect that to be integrated into the Byrna site? Will it be integrated onto your site? Or is this more of, you know, sort of a different channel rather. That we should be thinking about?

好的，了解。也許最後一個關於 HERO 整合的問題。我想我在你們網站上還沒看到這個產品。也許是我漏看了。我們預期多久會把它整合到 Byrna 網站上？會整合到你們的網站上嗎？還是說這更像是，你知道的，算是另一個不同的通路。我們應該這樣來思考？

No, we absolutely intend to place the HERO product line on the Byrna website as an integrated part of our total product ecosystem and our product ladder. Matt, that will likely come on the Byrna site in connection with SHOT Show early January as we position and rebrand the product under the Byrna umbrella. Today, it is still available as HERO on Amazon.

不，我們絕對打算把 HERO 產品線放到 Byrna 網站上，作為我們整體產品生態系與產品階梯中整合的一部分。Matt，這很可能會在一月初、配合 SHOT Show 時上線 Byrna 網站，屆時我們會把該產品納入 Byrna 旗下進行定位與重新品牌化。目前它仍以 HERO 的名義在 Amazon 上販售。

As their original primary sales channel. Okay, understood. I'll leave it there, guys. Thank you.

作為他們原本的主要銷售通路。好的，明白。我就先到這裡，各位。謝謝。

Dylan Hines, B. Riley Securities.

Dylan Hines，B. Riley Securities。

Hey, I was going for Jeff Bender. I was wondering with the refurbished launchers, you're expecting that to continue. I was just wondering, could you size how much this, you know, what this opportunity looks like and how much does that contribute to gross margin?

嗨，我是代 Jeff Bender 提問。我想問一下關於翻新發射器，你們預期這會持續下去。我想了解的是，你們能否量化一下這個機會大概有多大，以及它對毛利率的貢獻有多少？

And then on margin with the, you know, most notably the ammunition outsourcing providing the benefit. Is there anything else that you've identified that could be meaningful to margin expansion like ammunition?

另外在毛利率方面，尤其是彈藥外包帶來的效益。除了彈藥之外，你們是否還辨識出其他可能對毛利率擴張有顯著影響的項目？

So on the refurbished program, it does get a little bit more sporadic. We took some inventory that we had, as Conn mentioned, we sold through all the SD refurb launchers that we had. We just launched last week some CL refurb. So as we get that inventory in and build up enough to be meaningful, then we'll go through the refurb process and get those sold. The margin is slightly north of where our overall gross margin is. So it's absolutely accretive to us.

關於翻新計畫，它確實會比較零星一些。我們處理了一些庫存，如 Conn 提到的，我們已把手上所有 SD 翻新發射器都賣完了。我們上週剛推出了一些 CL 翻新品。因此，當我們取得那批庫存並累積到足夠有意義的量時，我們就會走翻新流程並把它們賣出去。其毛利率略高於我們整體毛利率水準。所以它確實對我們是增益的。

And I think some of the supply depends on things like we launched an SD trade-up program where you could trade in your SD and get a good discount on a CL. So as those launchers come in and we get a group of those, we'll put them out on the website. So we think that that's a great program going forward.

而且我認為供給的一部分取決於一些因素，例如我們推出了 SD 以舊換新計畫，你可以把 SD 交回並在購買 CL 時獲得不錯的折扣。因此當那些發射器回收進來、我們累積到一批之後，就會把它們放到網站上。所以我們認為這是一個未來很棒的計畫。

Dylan, you also asked kind of about longer-term areas where we've identified. And I would just tell you that, yes, as you look across the portfolio, I think we have opportunities to source better, to improve gross margins across different product lines. The first area that we'll focus on is accessories in that arena. But going forward, I think, you know, manufacturing, as we do new product launches will be a key area of focus so that we can keep improving that gross margin line over time.

Dylan，你也問到我們在較長期方面辨識出的領域。我想告訴你的是，是的，當你檢視整個產品組合時，我認為我們在不同產品線上都有機會透過更好的採購來提升毛利率。我們首先會聚焦的領域是配件。但往後我認為，隨著我們推出新產品，製造端將會是關鍵的聚焦領域，讓我們能隨時間持續改善毛利率這條線。

And I would add that that's been our focus on HERO as well, right? So getting that to a place where we can get, improvement in the cost structure of that to help our margins and also potentially help the price point for consumers.

我也補充一下，這同樣是我們在 HERO 上的重點，對吧？也就是把它推進到一個我們能改善其成本結構的位置，以幫助我們的毛利率，並且也可能有助於消費者端的定價水準。

Okay. Got you. And I was wondering in, along the lines of the HERO mentioned also, you know, be open to continuing to further opportunities like that. Do you have anything that, else that you're looking at or I guess you have a target list or anything else?

好的。了解。另外我想問，延續剛才提到的 HERO，你們是否也願意持續尋找更多類似的機會？你們還有在看其他標的嗎？或者說你們有一份目標清單之類的嗎？

So Dylan, nothing that we would announce at this time from that point of view, but I do think HERO presents the type of opportunity that we would be looking at going forward, an area that adds to the total portfolio and ecosystem of what Byrna offers in that personal safety and personal defense space that we could plug into our much stronger distribution network than other players have, and that would benefit from the brand recognition that Byrna brings to it. So that's a good example of what we'll be looking to do in the future, but nothing to announce today.

所以 Dylan，就這個角度而言，目前我們沒有任何會在此時宣布的事項；但我確實認為 HERO 呈現了我們未來會尋找的那種機會：在個人安全與個人防衛領域，能夠補強 Byrna 所提供的整體產品組合與生態系，並且可以導入我們相較其他業者更強的通路網絡，同時也能受益於 Byrna 帶來的品牌辨識度。所以這是我們未來會尋求推動的很好例子，但今天沒有要宣布的內容。

Got you. Is the HERO going to be part of the Byrna brand? Like, is it going to have the same design language and things like that? Or is it going to be still just separate?

了解。HERO 會成為 Byrna 品牌的一部分嗎？例如會採用相同的設計語言之類的嗎？還是它仍會是獨立的？

HERO line. So it will be rolled out under the Byrna brand, and we're currently working through what I would think of as the brand architecture to go along with that, but it will be an integrated part of our product suite.

HERO 產品線。所以它會以 Byrna 品牌推出，我們目前正在梳理我所稱的品牌架構來配合這件事，但它會成為我們產品套件中整合的一部分。

Thank you. At this time, this does conclude our question and answer session. I would now like to turn the call back over to Mr. Davis for his closing remarks.

謝謝。此時，我們的問答環節到此結束。我現在想把電話交回給 Davis 先生，請他做結語。

Thank you, everyone. We appreciate your continued interest in Byrna. I want to take this opportunity to thank all of our investors, our customers, vendors, partners, and employees. The journey that we're on today is only possible because of their tremendous support and belief in our mission of saving lives.

謝謝各位。我們感謝大家持續關注 Byrna。我想藉此機會感謝我們所有投資人、客戶、供應商、合作夥伴以及員工。我們今天所走的這段旅程，之所以能夠實現，完全仰賴他們對我們「拯救生命」使命的巨大支持與信念。

Thank you. Have a great day.

謝謝。祝各位有美好的一天。

Thank you for joining us today for Byrna's fiscal third-quarter 2026 earnings conference call. You may now disconnect your lines. Enjoy the rest of your day.

感謝各位今天參加 Byrna 2026 會計年度第三季財報電話會議。您現在可以掛斷電話線。祝您今天剩餘時間愉快。