Thank you, operator, and thank you, everyone, for joining us today. Over the past several months, we have made significant progress 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. 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 3 priorities.

Improving customer conversion and retail productivity, transforming how Byrna builds demand and enhancing operational efficiency across the business. 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 thousand 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 Q1. 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 reaccelerate 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. And our leadership team has been strengthened. We are also seeing measurable operational progress. With first pass yield exceeding 89% and approaching the 90% target we set for Q4, 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 will discuss more on our quarter and also introduce a longer term outlook for the business in a bit. But first, I will turn the call over to Laurilee to review our results from the quarter. Laurilee?

Thank you, Conn. 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 40% 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 Q1 and slower than expected sell through.

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 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.

Operating expenses for Q3 2026 were $15.1 million compared to $14.1 million for Q3 2025, 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 2 large international customers. Partially offset by the change in variable selling expenses associated with the decrease in sales. As we have 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 $0.13 per diluted share. Compared to net income of $2.2 million or $0.09 per diluted share in the same period a year ago. Adjusted EBITDA, a non-GAAP metric, for Q3 2026 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 at 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. 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. I will now pass the call back to Conn to discuss more on the quarter and the actions underway across the business. Conn?

Thank you, Laurilee. As I mentioned in my opening remarks, we are starting to see an encouraging early signs in many of the long term growth initiatives we previously outlined. For the remainder of today's call, I would like to spend time specifically covering each of those areas in detail, before getting into our longer term outlook. Let me start with customer conversion and retail productivity. 1 of our primary objectives this year has been improving how effectively we convert consumer interest 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. For Q3, 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. First, we are doing a better job of targeting. Meaning we are attracting more new consumers who are more likely to purchase. Through 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.

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 thousand responses and is converting at over 2x the rate of the broader website.

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. 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 recurring initiative allowing us to efficiently monetize return inventory when sufficient refurbished product is available. 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. Additionally, we have 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. 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.

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.

As a result, we have 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. 1 example is our Fox Sports Media partnership through iHeartMedia. While programs like this typically take time to build awareness and momentum, we have already begun seeing more consumers reference this partnership 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. This partnership reflects our continued strategy of reallocating existing media investments when possible trusted platforms with broader mainstream reach. Allowing us to introduce Byrna's less-lethal personal security solutions to new consumer audiences. 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 of focus has been our creator strategy. Working alongside acceleration partners, we have now onboarded more than 50 creators into our social creator ecosystem. and 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 thousand to 500 thousand followers on Instagram, Facebook, and YouTube. 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.

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 Q1 and we are beginning to see meaningful traffic engagement and sales activity generated by creator content.

In fact, despite launching only recently the program has already generated more than $45 thousand in sales exceeding our September target by approximately 300%. We have also already achieved our full year click through objective in just 2 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. 1 example was our recent activation at the Bass Pro Shops night race at the Bristol Motor Speedway. We were in front of more than 100 thousand race fans over 3 nights of racing. The event provided opportunity to showcase Byrna to highly relevant consumer audience, many of whom were learning about the brand for the first time.

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. Experiences 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 would like to provide a brief update on our recent acquisition of HERO Defense Systems, as it also supports this broader demand generation strategy.

I am pleased to report that the acquisition officially closed in August. And we have begun integration efforts. 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 2027.

HERO expands Byrna's product ecosystem into new price points, 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. Moving to our third priority, is enhancing operational efficiency. Throughout the year we remain focused on building systems that will improve profitability increase cash generation and better align production with demand. 1 of the most important actions we took was transitioning ammunition manufacturing to an outsourced model this past quarter.

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 1.2 thousand 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 Q2 and roughly 500 basis points above last year, well ahead of the approximately 62% level we said we expected to hold through year end.

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 are building in the business. Reducing and rightsizing 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.

As Lori mentioned, we expect a reduction of inventory by $2 million to $3 million in Q4. 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 will see more of that reflected in our bottom line.

Moving forward, the first steps of our marketing transformation are implemented. Our creator 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. While we expect to drive sequentially improved results, Q4 faces a difficult comparison against an exceptionally strong prior year period.

Looking into the fiscal year, we believe it is clear that the business is now moving in the right direction. And with the majority of 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.

Today, we remain in the early stages of that opportunity. Our ability to meet that opportunity is rooted in 4 key pillars. First, continue expanding awareness, adoption, and conversion across the Byrna platform. Everything we have 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 have seen in website traffic and conversion rates. 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. As we continue to broaden our product portfolio including the HERO offerings, we believe these efforts could further strengthen our product acceptance in large chains, to expand our distribution footprint and accelerate adoption across multiple channels.

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. Third, continuing to improve operational efficiency. The progress we have made with gross margins manufacturing efficiency, ammunition production, inventory management and cash generation demonstrate the steps we have 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. Finally, will continue evaluating strategic opportunities that strengthen and complement our personal safety platform. We believe Hero is a good example of the type of acquisition we are interested in pursuing as it broadens our ecosystem expands our addressable market, and creates additional pathways for long term growth.

Let me be more specific about why. We are confident in this framework. First, our margins 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. 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. Third, the runway from our expanded audience segmenting provides us with a greater market opportunity without alienating our legacy core demographic. We are adding more than 50 million likely buyers and segments Byrna has never addressed in a focused way. Additionally, we are 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.

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 4 long term pillars. We will provide additional information on timing in the coming months.

As a final note, I would like to highlight a few key additions to our senior leadership team that we have 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 have outlined today. First, we appointed Jim White as senior vice president of retail and channel growth 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 Cavoury, and Dr. Matthew McBrady. Rose and Matthew provide valuable and uniquely differentiated skills 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.

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

Thanks, Jeremy, and great to hear from you. Thanks for the question. We were really encouraged by what we saw from both a sessions and conversion rate in August, and we are really focused on now continuing that trend into Q4. what is exciting about that is not only is it really a higher intent period where we see you know, more consumers will be engaging, a lot of the initiatives that we 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 Q3 numbers, throughout Q4, which we are excited about.

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 do not anticipate seeing meaningful doors added in those new chains. Throughout the holiday period. Typically, once you get to that point in time, stores have set their assortments and their displays for the holiday period. So we expect that to pick up and ramp, in Q1 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 investing meaningfully to drive sell-through, is really an area that we did not have meaningful investments when we launched the programs. A little over a year ago now. So increasing and ramping those sell through programs is what is really going to drive us going forward. Laurilee, anything else you would add?

And the only other thing I would add is we are doing with a couple of large chains, some holiday bundles that are specific and exclusive to their locations. In 1 case, it is a color. In another case, it is kind of a bundled product. So we think 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 sell through.

Yes. So we have definitely started seeing that reorder activity pick up as we went through Q3 and saw that sell through be stronger than it had been kind of earlier in the year. And we do not have as good of detail at the store level with some chains. But those that we do, we have started to see, you know, some traction across those platforms. But more encouragingly, is the reorder cadence picking up to some extent.

Another important factor there is we are expanding our e commerce partnerships with our retail platforms. So that we are enabling them to drop ship. So when they are out of stock in their stores or do not 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 ecommerce over time. And help drive our retail partners.

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

We will start making incremental investments in those areas next year, but they are not going to be you know, things that meaningfully drive in the short term or become significant costs in the short term around that. So where I would say is, you know, focus initially, will likely be on that security market because, as you know, the, the long-term sell-through in the law enforcement side of the house takes longer. Or anything you would highlight there?

Yeah. I mean, I think, you know, we have got some internal resources. And as Conn said, we can make some small incremental investments there to start driving that. But there is 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.

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 have gained and other initiatives that we will work through in next year. So we expect that to continue on.

Thanks, Jeremy.

No. Appreciate the question, Matthew, 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 try at home 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 Q4 I mentioned both because it is a higher intent program. But we are rapidly applying the learnings that we are seeing from both the quiz and our sessions, to really drive an improved conversion rate overall.

Great question. what is great about that influencer strategy is we can really target specific audiences with the right message. So I am sure as you are aware, you know, people who follow a certain influencer are really, 1, listening to them and 2, attuned to the messages that they are delivering into that microsegment. 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, you know, we still want to improve and drive overall conversion rates, across the portfolio.

Yeah. Thanks, Matthew. I mean, I would say that sell-through, as we have said, has been lower than we expected. And we are 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 do not. So we have continued to roll out some of that. Certainly talking with partners on how that can work. 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 ecommerce sites 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 are looking at all of those initiatives to help them.

Yeah. And we just do not have the same level of conversion visibility across all of our third party stores. You know, that we can obviously see on byrna.com.

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. You know, Matthew, that will likely come on the Byrna site in connection with SHOT Show in early January. As we position and rebrand the product under the Byrna umbrella. Today, it is still available as Hero, on Amazon. Which was their original primary sales channel.

Thank you.

Thanks.

Yes. Thanks, Dylan. 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 will go through the refurb process. And get those sold. But the margin is slightly north of where our overall gross margin is, so it is absolutely accretive to us.

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 will put them out on the website. So we think that is a great program going forward.

You know, Dylan, you also asked kind of about longer term, areas we have 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 will focus on is accessories. In that arena, going forward, I think, you know, manufacturability 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.

Yeah. And I would add that is 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.

Exactly.

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 can 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 is a good example of what we will be looking to do in the future, but nothing to announce, today.

So it will be rolled out under the Byrna brand. We are 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.

Thanks, Dylan.

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 are on today is only possible because of their tremendous support, belief in our mission of saving lives. Thank you, and have a great day.