GEOS

This article first appeared on GuruFocus. Revenue: $15.8 million for Q3 FY2026, down from $24.8 million in the prior-year quarter. Net Loss: $9.7 million, or $0.75 per diluted share, versus net income of $800,000 ($0.06 per diluted share) a year ago. Nine-Month Revenue: $61.1 million, compared to $80.1 million in the same period last year. Nine-Month Net Loss: $30.5 million, or $2.37 per diluted share, versus a net loss of $700,000 ($0.05 per diluted share) in the prior-year period. Smart Water Segment Revenue: $4.6 million for Q3 FY2026, a 56% decrease from $10.5 million in Q3 FY2025; nine-month revenue was $14.1 million versus $27.3 million a year ago. Energy Solutions Segment Revenue: $5.9 million for Q3 FY2026, down 28% from $8.1 million in the prior-year quarter; nine-month revenue was $30.1 million versus $35 million a year ago. Intelligent Industrial Segment Revenue: $5.2 million for Q3 FY2026, a 14% decrease from $6.1 million in Q3 FY2025; nine-month revenue was $16.7 million versus $17.6 million a year ago. Operating Expenses: Decreased by $1.2 million in Q3 FY2026 and by $400,000 for the nine-month period. Capital Expenditures: $3.3 million invested in plant and equipment during the nine-month period. Available Borrowings: $25 million under the credit agreement with Woodforest Bank. Working Capital: $41 million, including $17 million of trade accounts and financing receivables. Warning! GuruFocus has detected 4 Warning Signs with GEOS. Is GEOS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 07, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Geospace Technologies Corp (NASDAQ:GEOS) secured a $10.8 million contract from the US Navy for its seismic acoustic detection and ranging system, expected to be completed by December 2027. The company successfully entered full production on its PRM contract, with the customer extending the period of performance to accommodate scope changes, ensuring no financial impact. Geospace Technologies Corp (NASDAQ:GEOS) released the Series V connector, enhancing its Smart Water product portfolio to be the most universally compatible domestically, strengthening its competitive position. The company's Intelligent Industrial segment remains a consistent revenue contributor, with expected future growth from its security portfolio, including the Navy contract. Geospace Technologies Corp (NASDAQ:GEOS) continues to reduce operating expenses, with a $1.2 million decrease in the third quarter due to lower personnel costs and professional fees. The company maintains a strong liquidity position with $25 million in available borrowings and $41 million in working capital, providing a buffer to manage through challenging market conditions. Geospace Technologies Corp (NASDAQ:GEOS) reported a net loss of $9.7 million for the third quarter, a significant decline from net income of $800,000 in the prior year. Revenue decreased by 36% year-over-year to $15.8 million, impacted by geopolitical uncertainty, project timing, and reduced customer access to capital. Smart Water segment revenue dropped 56% to $4.6 million due to lower demand for the Hydroconn connector product line. Energy Solutions segment revenue fell 28% to $5.9 million, partly due to lower demand for seismic acquisition equipment and prior-year asset sales. The PRM contract revenue was lower than expected due to customer-requested scope changes, causing a delay in production and revenue recognition. The company faces ongoing margin pressure from product mix, inflation, raw material costs, and component availability, which could continue to impact profitability. Q: Can you provide more detail around the PRM contract scope changes and their implications?A: Rich Kelley (CEO) explained that there is no financial impact to the contract, as the total value remains the same. The customer requested changes to the layout of the equipment, which led to engineering changes and a delay. The customer agreed to extend the contract's period of performance to accommodate these modifications. Structurally, the contract is the same, just with an extended timeline. Q: Does the engineering change on the PRM contract have any competitive implications for future contracts?A: Rich Kelley (CEO) stated that there are no competitive implications. The changes were related to the customer's evolving infrastructure plans, requiring rerouting of sensors and cables, but there was no technical change to the equipment being provided. From an external perspective, the implication is simply a one-quarter delay. Q: What is the prognosis for the next PRM contract, and will it be with Petrobras or another party?A: Rich Kelley (CEO) noted that Petrobras still has a long-term strategy for PRM systems but is monitoring geopolitical volatility and oil prices before deciding on the next release. Geospace plans to participate in any proposal Petrobras puts out. The company is also in discussions with other majors who consider PRM viable, but there is nothing firm on the calendar currently. Q: Can you discuss the newly announced US Navy contract and its implications?A: Rich Kelley (CEO) shared that the project combines Quantum's SADAR technology with Geospace's PRM technology to provide an in-water detection solution for the US Navy. It is under an SBIR envelope, and the company plans to deliver the solution by the end of the next calendar year. It is more of a proof of technical performance, which the Navy will use to determine larger-scale deployment. Q: How will revenue be recognized for the Navy contract?A: Robert Curda (CFO) clarified that revenue will be recognized over time, similar to percentage-of-completion, independent of milestone payments. Rich Kelley (CEO) added that revenue recognition will begin in fiscal year 2027 and conclude in fiscal year 2028, bridging a couple of fiscal years. Q: When is the final quarter of revenue recognition for the PRM contract with the recent changes?A: Rich Kelley (CEO) stated that the company anticipates completing revenue recognition between fiscal Q3 and fiscal Q4 of fiscal year 2027. The contract is now in full production. Q: Can you provide an update on the heartbeat detector product?A: Rich Kelley (CEO) said the market is excited, and the company has completed several pilots with a pipeline of customers lined up. The project is slightly ahead of plan, but revenue growth will ramp up gradually due to the longer sales cycles associated with government agencies. The company still expects to meet its expectations over the coming periods. Q: Given the stock price reaction, how is the company addressing concerns about the cash burn rate?A: Robert Curda (CFO) stated that the company is managing cash very closely, with a group analyzing expenses and eliminating costs where possible. The company expects to be in good shape with the help of its credit facility with Woodforest Bank to make it through until the next milestone payment from Petrobras. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Friday, August 7, 2026 at 10:00 a.m. ET Chief Executive Officer and President - Richard Kelley Chief Financial Officer - Robert Curda Operator: Welcome to the Geospace Technologies Third Quarter 2026 Earnings Conference Call. Hosting the call today from Geospace is Mr. Rich Kelley, President and Chief Executive Officer. He is joined by Mr. Robert Curda, the company's Chief Financial Officer. Today's call is being recorded and will be available on the Geospace Technologies Investor Relations website following the call. It is now my pleasure to turn the floor over to Rich Kelley. Sir, you may begin. Richard Kelley: Thank you, Madison. Good morning, and welcome to Geospace Technologies Conference Call for the Third Quarter of Fiscal Year 2026. I am Rich Kelley, the company's Chief Executive Officer and President. I am joined by Robert Curda, the company's Chief Financial Officer. In our prepared remarks, I will first provide an overview of the third quarter and Robert will then follow up with a more in-depth commentary on our financial performance as well as an overview of our financials. We will then open the line for questions. Today's commentary on markets, revenue, planned operations and capital expenditures may be considered forward-looking as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on what we know now, but actual outcomes are affected by uncertainties beyond our control or prediction. Both known and unknown risks can lead to results that differ from what is said or implied today. Some of these risks and uncertainties are discussed in our SEC Form 10-K and 10-Q filings. For convenience, we will link a recording of this call on the Investor Relations page of our geospace.com website, which I invite everyone to browse through and learn more about Geospace, our subsidiaries and our products. Note that today's recorded information is time-sensitive and may not be accurate at the time one listens to the replay. Yesterday after the market closed, we released our financial results for the period ended June 30, our third quarter of fiscal year 2026. For the 3 months ended June 30, 2026, we reported revenue of $15.8 million with a net loss of $9.7 million. Challenging market conditions across our business segments continue to impact our short-term financial performance. Revenue was impacted by geopolitical uncertainty, project timing, sales volumes and customer access to capital. Margins were pressured by product mix, inflation, raw material costs and component availability. We were able to offset some of this impact with previously stated cost reduction efforts and improvements in manufacturing productivity. Our financial performance this quarter does not reflect the strength of our long-term opportunities across our diversified markets. We remain focused on the factors within our control and on strengthening the foundation of our future performance. With a diversified portfolio of technology-driven solutions and a strong competitive position across our end markets, we believe the company is well positioned as market conditions improve. Our Smart Water segment continued its dip in revenue, which is driven in large part by reduced orders of the Hydroconn connector. In June, we announced the release of the Series V connector, providing our customers increased flexibility to address continuing supply chain challenges. With this new product release, we offer the most universally compatible portfolio of Smart Water meter connectors and adapters available domestically. We believe this enhanced product offering strengthens our competitive position and better aligns us with customers' evolving infrastructure needs. Our Intelligent Industrial segment remains a consistent revenue contributor with expected future revenue growth from our security portfolio. At the end of the third quarter, our subsidiary, Quantum Technology Sciences, received a $10.8 million contract from the U.S. Navy to deliver the seismic acoustic detection and ranging system. This contract is expected to be completed by December 2027. Our Energy Solutions segment generated less revenue than a year ago due to continued reduced demand for seismic acquisition equipment. Third quarter revenue contribution from the PRM contract or permanent reservoir monitoring contract was lower than was expected due to customer requested changes to the project scope. Importantly, our customer agreed to extend the PRM contract period of performance to account for these modifications. We have now successfully entered full production of the goods contract. We will continue executing our strategic priorities by investing in innovation, supporting our customers and maintaining financial discipline. Our focus remains on converting the opportunities within our pipeline into revenue, improving operating performance and positioning the company for long-term profitable growth. I will now turn the call over to Robert to provide more detail on our financial performance. Robert Curda: Thanks, Rich, and good morning. Before I begin, I'd like to remind everyone that we will not provide any specific revenue or earnings guidance during our call this morning. In yesterday's press release for our third quarter ending June 30, 2026, we reported revenue of $15.8 million compared to last year's revenue of $24.8 million. The net loss for the quarter was $9.7 million or $0.75 per diluted share compared to last year's net income of $800,000 or $0.06 per diluted share. For the 9 months ending June 30, 2026, we reported revenue of $61.1 million compared to revenue of $80.1 million last year. Our net loss for the 9-month period was $30.5 million or $2.37 per diluted share compared to last year's net loss of $700,000 or $0.05 per diluted share. Our Smart Water segment generated revenue of $46 million (sic) [ $4.6 million ] for the 3 months period ending June 30, 2026. Revenue for the three-month period ending June 30, 2025, was $10.5 million, a decrease of 56%. Revenue for the 9-month period was $14.1 million compared to $27.3 million from the same prior year period. The decline in revenue for the 3-month and 9-month period is due to lower demand for our Hydroconn connector product line. Energy Solutions third quarter revenue totaled $5.9 million for the 3 months ended June 30, 2026. This compares to $8.1 million in revenue for the same period a year ago, representing a decrease of 28%. Revenue for the 9-month period is $30.1 million, a decrease of 14% over the equivalent prior year period of $35 million. The decrease in revenue for the 3 months was due in part to the sale of assets associated with our streamer recovery device product line in the prior year. The decrease in revenue for the 9-month period is attributed to lower demand for our ocean bottom nodal products, partially offset by revenue recognized on our PRM contract and increased land wireless product sales. Intelligent Industrial revenue totaled $5.2 million for the 3 month period ended June 30, 2026. This compares with $6.1 million from the same year ago period, representing a decrease of 14%. Revenue for the 9-month period ended June 30, 2026 was $16.6 million (sic) [ $16.7 million ] compared to revenue of $17.6 million for the comparable year ago period. The decrease in revenue for both periods was driven by lower demand for our industrial sensors. The decrease in the 3-month period was also due to decreased demand for our company's contract manufacturing services. Our operating expenses decreased by $1.2 million for the third quarter of 2026 and decreased $400,000 for the 9-month period. This decrease in operating expense for the 3-month period was due to lower personnel costs, agent commissions and legal and professional fees. The decrease in operating expenses for the 9-month period is due to lower research and development costs and agent commissions. Our 9-month cash investment in our plant and equipment is $3.3 million. And at the end of the third quarter, we maintained available borrowings of $25 million for our credit agreement with Woodforest Bank and our working capital is $41 million, which includes $17 million of trade accounts and financing receivables. This concludes my discussion, and I'll turn the call back to Rich. Richard Kelley: Thank you, Robert. This concludes our prepared commentary, and I will now turn the call back to Madison for any questions from our listeners. Operator: And we will take our first question from Bill Dezellem with Tieton Capital. William Dezellem: I'd like to start with the PRM contract. Of course, you noted in the press release, there's been some changes there. Instead of me asking a whole bunch of questions, why don't I just ask you to provide a lot more detail around those scope changes and ultimately, the implications, please? Richard Kelley: Sure, Bill. Thanks for the question. So there's no financial impact to the contract. The total value remains the same. It was -- regarding the structure of the equipment, our customer decided to change some of the layout, so we went through some engineering changes, and that led to a delay. Obviously, our customer was willing to accept that, and they gave us a contract extension. So structurally, the contract is the same. It's just an extension on the period of performance. William Dezellem: And that structural change that they -- excuse me, that engineering change that they wanted to do, does that have any implications for you from a competitive perspective and thinking with respect to future contracts? Richard Kelley: Quite honestly, Bill, no. I mean it was really around -- I mean, not to get too complex in this. The way that they envisioned their infrastructure being in place when we did the original field design changed from that point until -- after the contract was established. So we needed to reroute some of the sensors and some of the cables, change some of the [ facings ] like that. But in the big picture, there was no technical change to the equipment that we're providing. William Dezellem: Great. So essentially, if we think about this from an external perspective or the investment communities perspective, the implication is simply 1 quarter delay, everything else is the same. Richard Kelley: That's correct. Yes. William Dezellem: Got it. And given that this contract was awarded some time ago, and I know we haven't started meaningfully producing on this yet, but what's the prognosis for the next PRM contract and whether that would be with Petrobras or with someone else? Richard Kelley: I mean, it's a good question. I mean, Petrobras, as we've stated in the past, I mean they still have a long-term strategy for using PRM systems on their fields. But obviously, they're monitoring the greater geopolitical situation, the volatility in oil prices and their internal decision is driven by a lot of those factors. So they have not put forward when they anticipate releasing the next proposed PRM system. So that addresses Petrobras. But we do anticipate participating in any proposal they put out, we plan to participate. Regarding other fields, I mean, obviously, we have ongoing discussions with the majors who consider PRM a viable solution. And if they happen to put out a proposal or request for proposal, obviously, we intend to respond to that. But as it stands right now, there is nothing firm on the calendar. William Dezellem: Great. And then you announced the Navy. How about if I, again, just open this up and let you discuss the Navy and then I'll ask additional questions from there. Richard Kelley: Yes, sure. I mean, being the U.S. Navy, there's only so much we can share. But essentially, the project marries our SADAR technology from Quantum technologies with our PRM technology from Geospace to provide an in-water solution for the U.S. Navy for detection of potential threats. And so this is under an SBIR envelope, and we're working closely with them to make sure the project is fully vetted out and as I said in the announcement, plan to deliver our solution by the end of next calendar year. William Dezellem: And the release made reference to this being an initial contract. Does -- is there an implication there that prior to this contract being fulfilled that there could be additional contracts? How are you thinking about that? Richard Kelley: No, I wouldn't say before it's completed. As I said, this is an SBIR, it's -- I would say it's not really a proof of concept because these are viable solutions that we're offering. It's more of a proof that we can meet the Navy's expectations with regards to technical performance. And then the Navy will use that to determine how they want to move forward in a larger scale. William Dezellem: Great. That's helpful. And then as you think about revenue recognition, is this essentially going to be recognized over time. We used to call it percentage of completion. I'm not sure what the right term is now. Richard Kelley: Yes, exactly. It's a progress payment type structure, right? So if we hit certain milestones, we were able to recognize revenue. We'll have revenue recognition in fiscal year 2027. And given that, we'll finish it in fiscal year '28. So you'll -- similar to the PRM contract, it will bridge a couple of fiscal years for us with regards to... Robert Curda: Let me slightly modify what Rich said. We will recognize revenue independent of the milestones we're paid, and we'll recognize revenue over time that's similar to percentage completion. Richard Kelley: Thank you, Robert. William Dezellem: Yes. Okay. That's helpful. And actually, on that note, I do want to circle back to the PRM contract. When is it currently -- you said it's in production now here in this quarter. When is the final quarter of production that you now -- excuse me, the final quarter of revenue recognition that you now anticipate with these changes? Richard Kelley: It's going to be -- I mean, right now, we're anticipating somewhere between our fiscal Q3 and fiscal Q4 of next year. William Dezellem: Fiscal '27. Richard Kelley: Correct. William Dezellem: Okay. Great. And then I would like to jump to heartbeat detector if we could. Could you please provide us an update there? Richard Kelley: Sure. Heartbeat detector is obviously, the market that we're -- that applies to is excited. We've done several pilots. We've got a pipeline of customers lined up. Yes, I mean, it's proceeding as planned. I think we're actually a little bit ahead of our plan regarding heartbeat detector. But as we said in the past, I mean, the revenue growth on this is going to be fairly -- it will be ramped up, right? I mean, it's the -- we recognize that the sales life or the [ lead-up ] to a completion of sales is because we're dealing with government agencies and things like that, I mean it does take some time, but still expect that to meet our expectations over the coming periods. William Dezellem: Great. And then given the stock price reaction this morning, I suspect there is some concern about the cash burn rate. Would you please address how you are thinking about that to provide comfort at how you're thinking about cash going forward? Richard Kelley: Robert, do you want to jump in there? Robert Curda: Yes. We're managing cash very closely, Bill. We're getting a group together to analyze expenses and eliminating things as we can and just trying to stay on top of incomings and outgoings cash as closely as possible. I think we're going to be in a good shape with the help of our bank -- our credit facility to make it through to when we expect to get our next milestone payment from Petrobras. Operator: There are no further questions in queue at this time. I will now turn the meeting back to Rich Kelley. Richard Kelley: Thank you, Madison. And thanks to all of you who joined our call today. We look forward to speaking with you again on our conference call for the fourth quarter of fiscal year 2026. Goodbye, and have a good day. Operator: This concludes today's meeting. We appreciate your time and participation. You may now disconnect. Thank you. Before you buy stock in Geospace Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Geospace Technologies wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 13, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Geospace (GEOS) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Shares of Geospace Technologies Corporation GEOS have lost 23.4% since the company reported its earnings for the quarter ended June 30, 2026, compared with the S&P 500 Index’s 0.3% gain over the same time frame. Over the past month, the stock has lost 21.7%, while the S&P 500 has gained 2.9%. Geospace reported third-quarter fiscal 2026 revenues of $15.8 million, down 36.4% from $24.8 million a year earlier. The company posted a net loss of $9.7 million, or 75 cents per diluted share, against a net income of $0.8 million, or 6 cents per diluted share, in the year-ago quarter. Smart Water revenues fell 56.1% to $4.6 million from $10.5 million, while Energy Solutions revenues decreased 27.8% to $5.9 million from $8.1 million. Intelligent Industrial revenues declined 14.5% to $5.2 million from $6.1 million. Gross profit fell to $0.5 million from $7.5 million in the prior-year quarter. Total operating expenses decreased 9.8% to $10.6 million from $11.8 million, reflecting lower personnel costs, agent commissions and legal and professional fees. Geospace recorded an operating loss of $10.1 million against an operating income of $0.4 million a year earlier. Liquidity also weakened. For the first nine months of fiscal 2026, cash used in operating activities totaled $27.3 million. Investing activities generated $6.2 million, including $9.4 million of proceeds from rental-equipment sales, partly offset by $3.3 million of property, plant and equipment additions. As of June 30, GEOS had $40.6 million of working capital, including $17.5 million in trade accounts and financing receivables, and remained in compliance with loan covenants with full access to its credit facility. Geospace Technologies Corporation price-consensus-eps-surprise-chart | Geospace Technologies Corporation Quote CEO Rich Kelley said that challenging conditions across GEOS’ businesses continued to weigh on near-term performance. Management attributed revenue pressure to geopolitical uncertainty, project timing, sales volumes and customers’ access to capital. Kelley maintained that the quarter did not reflect Geospace’s longer-term opportunities and said that the company remains focused on converting its pipeline into revenues, improving operating performance and maintaining financial discipline. Management also highlighted potential growth from the security portfolio. Quantum Technology Sciences received a $10.8 million U.S. Navy contract for a seismic acoustic detection and ranging system, with completion expected by December 2027. The Department of Homeland Security also exercised an option extending ongoing maintenance under an existing contract for another six months. Smart Water weakness primarily reflected reduced demand for the Hydroconn connector product line, particularly the Series III connector. Geospace introduced its Series V connector in June to provide customers greater flexibility amid supply-chain challenges. Energy Solutions was hurt by reduced seismic-equipment demand and the prior-year sale of streamer recovery device assets. PRM contract revenues were below expectations because customer-requested scope changes delayed the project, although management said the contract’s total financial value was unchanged. Intelligent Industrial was affected by lower industrial-sensor demand and weaker contract-manufacturing services. Margins across GEOS were pressured by product mix, inflation, raw-material costs and component availability, partly offset by cost reductions and manufacturing-productivity improvements. Geospace did not provide specific revenue or earnings guidance. However, management expects PRM delivery in the third quarter of fiscal 2027 following resolved manufacturing delays. On the Navy program, management said revenues will be recognized over time, with recognition beginning in fiscal 2027 and extending into fiscal 2028. No acquisition or business restructuring was announced during the quarter. Geospace generated $9.4 million in proceeds from sales of rental equipment during the first nine months of fiscal 2026. The prior-year comparison in Energy Solutions was also affected by the sale of assets associated with the streamer recovery device product line. Geospace continued an organizational change plan initiated at the end of the fiscal second quarter, including voluntary early retirement and a reduction in force. The actions are expected to reduce the global workforce by approximately 20% and, together with other cost-containment measures, generate roughly $10 million in annualized cash savings. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Geospace Technologies Corporation (GEOS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Challenging market conditions across all segments were driven by geopolitical uncertainty, project timing, and customer capital constraints. Smart Water revenue declined 56% primarily due to reduced orders for the Hydroconn connector, prompting the launch of the Series V connector to address supply chain flexibility. Energy Solutions performance was impacted by lower demand for seismic acquisition equipment and customer-requested scope changes on the PRM contract. Intelligent Industrial revenue was pressured by lower demand for industrial sensors and contract manufacturing services, though security portfolio growth is expected. Margins faced significant pressure from an unfavorable product mix, inflation, and raw material cost increases, partially offset by manufacturing productivity gains. Management emphasized that current financial results do not reflect the strength of long-term opportunities across their diversified technology portfolio. The PRM contract period of performance has been extended into fiscal Q3 or Q4 of 2027 to accommodate engineering modifications without changing total contract value. Revenue recognition for the new $10.8 million U.S. Navy contract is expected to bridge fiscal years 2027 and 2028 using a percentage-of-completion methodology. Management anticipates participating in future Petrobras PRM proposals, though no firm dates exist due to oil price volatility and geopolitical factors. The Heartbeat detector is expected to see a ramped revenue growth profile, though sales cycles remain long due to government agency procurement timelines. Cash management strategies include rigorous expense analysis and reliance on a $25 million credit facility to bridge operations until the next Petrobras milestone payment. Received a $10.8 million U.S. Navy contract for a seismic acoustic detection and ranging system, combining SADAR and PRM technologies. The PRM contract scope change involved rerouting sensors and cables due to infrastructure layout changes, resulting in a one-quarter execution delay. The U.S. Navy contract is structured under an SBIR envelope, serving as a technical performance proof for potential larger-scale future deployments. Working capital stands at $41 million, including $17 million in receivables, as the company manages through a period of net losses. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed there is no financial impact to the total contract value; the changes were purely related to the customer's infrastructure layout. The delay is approximately one quarter, with production now successfully entering the full manufacturing phase. Petrobras maintains a long-term strategy for PRM but has not set dates for new proposals due to market volatility. Geospace is actively discussing PRM solutions with other major oil companies, though no other firm contracts are currently on the calendar. The company is closely managing cash by eliminating non-essential expenses and utilizing its credit facility with Woodforest Bank. Liquidity is expected to be sufficient to reach the next significant milestone payment from the Petrobras contract.

Interested in Geospace Technologies Corporation? Here are five stocks we like better. Geospace Technologies reported a sharp third-quarter downturn: Revenue fell to $15.8 million from $24.8 million year over year, while the company posted a $9.7 million net loss compared with prior-year net income of $800,000. Demand remained uneven across segments, with lower Smart Water orders, weaker seismic equipment demand and delays tied to customer-requested changes to the PRM project. Final PRM revenue recognition is now expected between the third and fourth quarters of fiscal 2027, although the contract’s total value is unchanged. A $10.8 million U.S. Navy contract and progress in the Heartbeat Detector business support the company’s longer-term outlook, while management focuses on cost controls and liquidity. Geospace had $25 million of available credit and expects its financing to support operations until an anticipated Petrobras milestone payment. Geospace Stock Skyrockets After Major Petrobras Contract Geospace Technologies (NASDAQ:GEOS) reported third-quarter fiscal 2026 revenue of $15.8 million and a net loss of $9.7 million, or $0.75 per diluted share, as challenging conditions across its operating segments weighed on sales volumes and margins. The company’s revenue for the quarter ended June 30 fell from $24.8 million a year earlier, while it swung from net income of $800,000, or $0.06 per diluted share, in the prior-year quarter. For the first nine months of fiscal 2026, Geospace reported revenue of $61.1 million and a net loss of $30.5 million, or $2.37 per diluted share, compared with revenue of $80.1 million and a net loss of $700,000 in the comparable prior-year period. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth 3 Stocks For the Resurgent Energy Rally President and Chief Executive Officer Rich Kelley said geopolitical uncertainty, project timing, sales volumes and customers’ access to capital affected revenue during the quarter. He said margins were pressured by product mix, inflation, raw-material costs and component availability, though cost-reduction efforts and manufacturing productivity improvements offset part of the impact. “Our financial performance this quarter does not reflect the strength of our long-term opportunities across our diversified markets,” Kelley said. “We remain focused on the factors within our control and on strengthening the foundation of our future performance.” → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Geospace said its Smart Water segment continued to experience lower revenue, principally because of reduced orders for its Hydroconn connector product line. The company attributed declines in both quarterly and nine-month Smart Water revenue to lower demand for Hydroconn products. In June, Geospace introduced its Series V connector, which Kelley said is intended to give customers more flexibility in addressing supply-chain challenges. He said the release expands the company’s offering of domestically available Smart Water meter connectors and adapters and is designed to better align with evolving infrastructure needs. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Energy Solutions generated $5.9 million in third-quarter revenue, down 28% from $8.1 million a year earlier. Chief Financial Officer Robert Curda said the quarterly decrease reflected, in part, the prior-year sale of assets associated with the Streamer Recovery Device product line. The company also cited continued lower demand for seismic acquisition equipment. Revenue from the company’s Permanent Reservoir Monitoring, or PRM, contract was below Geospace’s expectations during the quarter because of customer-requested project-scope changes. Kelley said the customer agreed to extend the contract’s period of performance to accommodate the changes, and that Geospace has entered full production on the goods contract. During the question-and-answer session, Kelley said the PRM contract’s total value has not changed and that the modifications involved changes to the planned equipment layout, including rerouting sensors and cables and adjusting spacing. He said the changes did not alter the technical equipment Geospace is providing. Geospace now expects final PRM revenue recognition to occur between the third and fourth quarters of fiscal 2027, according to Kelley. The company said it has no firm timetable for a subsequent PRM opportunity, although it expects to participate in any proposal issued by Petrobras and remains in discussions with other major companies that view PRM systems as viable solutions. The Intelligent Industrial segment generated $5.2 million in quarterly revenue, down from $6.1 million a year earlier. Curda attributed the decline to lower demand for industrial sensors and, for the quarter, reduced demand for contract manufacturing services. However, Geospace highlighted a $10.8 million U.S. Navy contract awarded to its Quantum Technology Sciences subsidiary near the end of the third quarter. Under the contract, Quantum Technology Sciences will provide a Seismic Acoustic Detection and Ranging system, with completion expected by December 2027. Kelley said the project combines Quantum Technology Sciences’ technology with Geospace’s PRM technology to provide an in-water detection solution for potential threats. He described the work as being conducted under a Small Business Innovation Research, or SBIR, arrangement, through which the Navy will assess whether the system meets its technical expectations before considering a larger-scale deployment. Curda said revenue from the Navy project will be recognized over time, independently of the payment milestones, and will span fiscal 2027 and fiscal 2028. Kelley also said the company’s Heartbeat Detector business is progressing as planned. Geospace has conducted several pilots and has a pipeline of prospective customers, he said, adding that the company believes the initiative is slightly ahead of its internal plan. He cautioned that converting sales can take time because customers include government agencies. Operating expenses declined by $1.2 million in the third quarter and by $400,000 over the first nine months of fiscal 2026. Curda said quarterly expense reductions reflected lower personnel costs, agent commissions, and legal and professional fees. For the nine-month period, lower research and development costs and agent commissions contributed to the reduction. Geospace invested $3.3 million in plant equipment during the first nine months of the fiscal year. At the end of the third quarter, the company had $25 million of available borrowings under its credit agreement with Woodforest National Bank and working capital of $41 million, including $17 million of trade accounts and financing receivables. Addressing a question about cash usage, Curda said management is closely managing cash, reviewing expenses and monitoring cash inflows and outflows. He said the company expects its bank relationship and credit facility to help support operations until it receives its next anticipated milestone payment from Petrobras. Geospace did not provide specific revenue or earnings guidance during the call. Kelley said the company will continue to invest in innovation, support customers, maintain financial discipline and work to convert pipeline opportunities into revenue as market conditions improve. Geospace Technologies Corporation specializes in the design, manufacturing and marketing of geophysical instrumentation for seismic data acquisition. The company's solutions address the needs of oil and gas exploration and production companies by enabling detailed subsurface imaging through advanced sensor and acquisition systems. Geospace serves both land and marine seismic markets, offering equipment that meets the rigorous demands of contemporary seismic surveys. In its Land Products segment, Geospace Technologies offers a range of components including geophones, accelerometers, cable and recorder accessories designed to collect high-quality seismic signals in onshore environments. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Geospace Technologies Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

U.S. Navy Awards the Company $10.8 Million Contract HOUSTON, August 06, 2026--(BUSINESS WIRE)--Geospace Technologies Corporation (NASDAQ: GEOS) ("the "Company") today announced results for its third quarter ended June 30, 2026. For the three-months ended June 30, 2026, Geospace reported revenue of $15.8 million compared to revenue of $24.8 million for the comparable year-ago quarter. Net loss for the three-months ended June 30, 2026, was $9.7 million, or $(0.75) per diluted share, compared to net income of $0.8 million, or $0.06 per diluted share, for the quarter ended June 30, 2025. For the nine-months ended June 30, 2026, Geospace reported revenue of $61.1 million compared to revenue of $80.1 million for the comparable year-ago period. Net loss for the nine-months ended June 30, 2026 was $30.5 million, or $(2.37) per diluted share, compared to net loss of $0.7 million, or $(0.05) per diluted share, for the nine-months ended June 30, 2025. Management Comments Richard "Rich" Kelley, President and CEO of the Company said, "Challenging market conditions across our business segments continued to impact our short-term financial performance. Revenue was impacted by geopolitical uncertainty, project timing, sales volumes and customer access to capital. Product mix, inflation, raw material costs and component availability had significant impacts on margin performance. We were able to offset some of this impact with previously stated cost reduction efforts and improvements in manufacturing productivity. Our financial performance this quarter does not reflect the strength of our long-term opportunities across our diversified markets. We remain focused on the factors within our control and on strengthening the foundation for future performance. Our underlying business remains well positioned with a diversified solutions portfolio and strong technology offerings. Our Smart Water segment continued its dip in revenue, which is driven in large part by reduced orders of the Hydroconn® connector. In June, at the American Water Works Association Annual Conference and Exposition (ACE), we announced the release of the Series V connector, providing our customers increased flexibility to address increasing supply chain challenges. With this new product release, we offer the most universally compatible portfolio of smart water meter connectors and adapters available domestically. Our Intelligent Industrial segment remains a consistent revenue contributor with expected future revenue growth from our security portfolio. At the end of the third quarter, our subsidiary, Quantum Technology Sciences, LLC., received a $10.8 million firm-fixed price contract to deliver the seismic acoustic detection and ranging system to the U.S. Navy. The contract is expected to be completed by December 2027. Also, the U.S. Department of Homeland Security exercised an extension option in our existing contract to extend on-going maintenance for an additional six-months. The Energy Solutions segment generated less revenue than a year ago due to continued reduced demand for seismic acquisition equipment. Third quarter revenue contribution from the PRM contract was lower than was expected due to customer requested changes to the project scope. Importantly, our customer agreed to extend the PRM contract period of performance to account for these modifications. We have now successfully entered full production of the goods contract. We will continue executing our strategic priorities, investing in innovation, supporting our customers, and maintaining financial discipline. We are focused on converting the opportunities in our pipeline into revenue and improved operating performance. Our priorities remain clear: execute on existing programs, expand the markets for our technology, improve performance in Smart Water, and allocate capital prudently. We believe these actions provide the clearest path to strengthening Geospace's performance over time and creating long-term value for our customers and shareholders." Smart Water Segment The Company’s Smart Water segment generated revenue of $4.6 million for the three-month period ended June 30, 2026. Revenue for the three-month period ended June 30, 2025, was $10.5 million, a decrease of 56.1%. Revenue for the nine-month period was $14.1 million compared to $27.3 million from the same prior year period. The decline in revenue for the three-month period and nine-month period reflects lower demand for the Company’s Hydroconn connector product line, which is primarily attributed to reduced demand for our Hydroconn Series III connector. Energy Solutions Segment Third quarter revenue from the Company’s Energy Solutions segment totaled $5.9 million for the three months ended June 30, 2026. This compares to $8.1 million in revenue for the same period a year ago representing a decrease of 28%. Revenue for the nine-month period ended June 30, 2026, is $30.1 million, a decrease of 13.9% over the equivalent prior year period of $35.0 million. The decrease in revenue for the three months was due in part to the sale of assets associated with our streamer recovery device in the prior year. The decrease in revenue for the nine-month period is attributed to lower market demand for our ocean bottom nodal products partially offset by revenue recognized on our PRM contract and Pioneer wireless land node product sales. Despite short-term manufacturing delays, which have been resolved, PRM delivery is expected to occur in the third quarter of fiscal year 2027. Intelligent Industrial Segment Revenue from the Company’s Intelligent Industrial segment totaled $5.2 million for the three-month period ended June 30, 2026. This compares with $6.1 million from the equivalent year ago period, representing a decrease of 14%. Revenue for the nine-month period ending June 30, 2026, was $16.7 million, compared to revenue of $17.6 million for the comparable year-ago period. The decrease in revenue for both periods was driven by lower demand for the Company’s industrial sensors. The decrease for the three-month period was also due to a decrease in demand for the Company’s contract manufacturing services. Balance Sheet and Liquidity For the nine-month period ended June 30, 2026, the Company used $27.3 million in cash and cash equivalents from operating activities. The Company generated $6.2 million of cash from investing activities including $9.4 million in proceeds from the sale of rental equipment, partially offset by $3.3 million for additions to property, plant and equipment. As of June 30, 2026, the Company is in compliance with loan covenants and maintains full access to its credit facility. As of June 30, 2026, the Company had working capital of $40.6 million, including $17.5 million in trade accounts and financing receivables. Conference Call Information Geospace Technologies will host a conference call to review its third quarter fiscal year 2026 financial results on Friday, August 7, 2026, at 10:00 a.m. Eastern Time (9 a.m. Central). Participants can access the call 833-316-1983 (US) or 785-838-9310 (International). Please reference the conference ID: GEOSQ326 prior to the start of the conference call. A replay will be available for approximately 60 days and may be accessed through the Investor Relations tab of our website at www.geospace.com. About Geospace Technologies Geospace Technologies is a global technology and instrumentation manufacturer specializing in advanced sensing, IOT and highly ruggedized products, which serve smart water, energy exploration, industrial, government and commercial customers worldwide. The Company’s products blend engineering expertise with advanced analytic software to optimize energy exploration, enhance national and homeland security, empower water utility and property managers, and streamline electronic printing solutions. With more than four decades of excellence, the Company’s more than 400 employees across the world are dedicated to engineering and technical quality. Geospace is traded on the U.S. NASDAQ stock exchange under the ticker symbol GEOS. For more information, visit www.geospace.com. Forward Looking Statements This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by terminology such as "may", "will", "should", "could", "intend", "expect", "plan", "budget", "forecast", "anticipate", "believe", "estimate", "predict", "potential", "continue", "evaluating" or similar words. Statements that contain these words should be read carefully because they discuss future expectations, contain projections of our future results of operations or of our financial position or state other forward-looking information. Examples of forward-looking statements include statements regarding our expected operating results and expected demand for our products in various segments and our expected capital expenditures. These forward-looking statements reflect our current judgment about future events and trends based on currently available information. However, there will likely be events in the future that we are not able to predict or control. The factors listed under the caption "Risk Factors" in our most recent Annual Report on Form 10-K which is on file with the Securities and Exchange Commission, as well as other cautionary language in such Annual Report, any subsequent Quarterly Report on Form 10- Q, or in our other periodic reports, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. Such examples include, but are not limited to, among others, statements that we make regarding our expected operating results, the timing, adoption, results and success of our rollout of our Aquana smart water valves and cloud-based control platform, future demand for our Quantum security solutions, the adoption and sale of our products in various geographic regions, potential tenders for permanent reservoir monitoring systems, sales or rentals for our ocean bottom nodes, the adoption of Quantum's SADAR® product monitoring of subsurface reservoirs, the completion of new orders for channels of our Pioneer™ system, the fulfillment of customer payment obligations, the impact of the current armed conflict between Russia and Ukraine and between U.S. and Iran, our ability to manage changes and the continued health or availability of management personnel, volatility and direction of oil prices, anticipated levels of capital expenditures and the sources of funding therefor, and our strategy for growth, product development, market position, financial results and the provision of accounting reserves. These forward-looking statements reflect our current judgment about future events and trends based on the information currently available to us. However, there will likely be events in the future that we are not able to predict or control. The factors listed under the caption "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, as well as other cautionary language in such Annual Report and our Quarterly Reports on Form 10-Q, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. Such examples include, but are not limited to, the failure of the Quantum and OptoSeis® or Aquana technology transactions to yield positive operating results, decreases in commodity price levels, the failure of our products to achieve market acceptance (despite substantial investment by us), our sensitivity to short term backlog, delayed or cancelled customer orders, product obsolescence resulting from poor industry conditions or new technologies, credit losses associated with customer accounts, inability to collect on financing receivables, lack of further orders for our ocean bottom rental equipment, failure of our Quantum products to be adopted by the border and security perimeter market or a decrease in such market due to governmental changes, and infringement or failure to protect intellectual property. The occurrence of the events described in these risk factors could have a material adverse effect on our business, results of operations and financial position, and actual events and results of operations may vary materially from our current expectations. We assume no obligation to revise or update any forward-looking statement, whether written or oral, that we may make from time to time, whether as a result of new information, future developments or otherwise. View source version on businesswire.com: https://www.businesswire.com/news/home/20260806889058/en/ Contacts MEDIA CONTACT: Caroline Kempf, [email protected], 713.986.8710

Shares of Geospace Technologies Corporation GEOS have lost 8.8% since the company reported its earnings for the quarter ended March 31, 2026. This compares to the S&P 500 Index’s 0.2% gain over the same time frame. Over the past month, the stock has lost 7.6%, while the S&P 500 posted a 6.9% gain. For the second quarter of fiscal 2026, Geospace reported revenues of $19.7 million, a 9.5% increase from $18 million in second-quarter fiscal 2025. However, the company’s net loss widened to $11 million, or $0.86 per diluted share, from $9.8 million, or $0.77 per diluted share, in the same period last year. This increase in loss was primarily due to higher operating expenses, which grew 0.7% year over year. Revenues from GEOS’ Smart Water segment saw a sharp decline of 60.6% in second-quarter fiscal 2026 compared with second-quarter fiscal 2025, largely due to lower demand for its Hydroconn connector products. Conversely, the Energy Solutions segment demonstrated strong growth, with revenue surging 272.1%, driven by a significant increase in sales of permanent reservoir monitoring (PRM) products and land wireless solutions. The Intelligent Industrial segment also saw revenue growth of 7.1%, primarily from higher demand for industrial sensors and contract manufacturing services. Geospace continues to face challenges related to its traditional energy market offerings. The Smart Water segment, which includes the company’s Hydroconn connectors and the Aquana product line, saw a revenue drop of 60.6% for the quarter. This decline is attributed to the normalization of inventory levels by customers who had previously stocked up in anticipation of greater demand. While the decline in revenue is concerning, management anticipates a slight rebound in the coming quarters, with new and replacement smart meter installations expected to drive modest growth. For the first six months of fiscal 2026, the segment's revenue dropped 43.4% from $16.8 million to $9.5 million. The Energy Solutions segment showed a marked improvement, with revenue for the quarter totaling $9.6 million compared with $2.6 million in second-quarter fiscal 2025. This surge is attributed to the PRM project and the final deliveries of the Pioneer land wireless products. Geospace is also experiencing a slowdown in traditional seismic product demand, but its strategic focus on permanent reservoir monitoring systems could sustain future growth in this sector. However, for the first six months of fiscal 2026, the segment's revenues declined 9.7% to $24.3 million from $26.9 million, primarily due to lower utilization of the ocean bottom nodal rental fleet. In the Intelligent Industrial segment, Geospace achieved a 7.1% revenue increase for the quarter, driven by demand for industrial sensors and its expanding contract manufacturing services. These results underscore the company's strategic diversification efforts beyond the oil and gas sector, with products like the Heartbeat Detector showing promise in the defense and security market. For the first six months of fiscal 2026, revenue was stable, decreasing 0.4% to $11.4 million from $11.5 million in 2025. Geospace reported a gross profit of $0.7 million for the second quarter of fiscal 2026, significantly lower than $1.7 million in the same period last year. Operating expenses increased, driven by higher selling, general, and administrative costs as well as research and development spending. Geospace Technologies Corporation price-consensus-eps-surprise-chart | Geospace Technologies Corporation Quote President and CEO Richard Kelley emphasized GEOS’ long-term strategic shift toward becoming a technology-driven solutions provider, noting that the diversification into smart water and other industrial applications is a deliberate effort. The company continues to execute its strategy despite short-term challenges, and Kelley mentioned that early revenue from initiatives such as the Heartbeat Detector and smart water solutions highlights the progress they are making. Geospace is also leveraging its contract manufacturing expertise to explore white-label opportunities, which could expand its presence in new markets like smart water technologies. Several factors contributed to Geospace's underperformance in second-quarter fiscal 2026. A key issue has been the low utilization of the company's ocean bottom node fleet, which continues to impact revenue from its traditional seismic services. Additionally, the slowdown in the smart water sector, exacerbated by customers’ efforts to manage excessive inventory, has dampened growth. Despite these challenges, Geospace remains optimistic about its long-term growth potential, particularly with its expanding presence in markets like smart water and permanent reservoir monitoring. GEOS also took significant steps to streamline its operations, implementing a workforce reduction of approximately 20%. This decision is expected to generate annualized cost savings of roughly $12 million, helping to align the company’s cost structure with current market conditions. Geospace did not provide specific revenue or earnings guidance for the upcoming quarters. However, the company remains focused on executing its diversification strategy. It anticipates a gradual recovery in certain sectors, particularly in the smart water business and industrial applications. Management also expressed confidence that the PRM project and continued interest in the Pioneer land wireless solution could drive future growth. Geospace’s commitment to diversification is evident in its ongoing exploration of white-label opportunities in the smart water space. By leveraging its advanced manufacturing capabilities, the company is poised to enter new distribution channels, offering tailored solutions to water utilities and infrastructure managers. Furthermore, GEOS’ efforts to develop new products for the defense and security sectors, such as the Heartbeat Detector, could further strengthen its market position. As part of its restructuring efforts, Geospace is actively working to build a more resilient business, positioning itself for long-term success despite the volatility in traditional energy markets. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Geospace Technologies Corporation (GEOS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Friday, May 8, 2026 at 10 a.m. ET President and Chief Executive Officer — Richard F. Kelley Chief Financial Officer — Robert P. Curda In our prepared remarks, I will first provide an overview of the second quarter, and Robert will then follow up with more in-depth commentary on our financial performance as well as an overview of our financials. We will then open the line for questions. Today's commentary on markets, revenue, planned operations and capital expenditures may be considered forward-looking as defined by the Private Securities Litigation Reform Act of 1995. These statements are based on what we know now, but actual outcomes are affected by uncertainties beyond our control or prediction. Both known and unknown risks can lead to results that differ from what is said or implied today. Some of these risks and uncertainties are discussed in our SEC Form 10-K and 10-Q filings. For convenience, we will link a recording of this call on the Investor Relations page of our geospace.com website, which I invite everyone to browse through and learn more about Geospace, our subsidiaries and our products and services. Note that today's recorded information is time-sensitive and may not be accurate at the time one listens to the replay. Yesterday, after the market closed, we released our financial results for the period ended March 31, our second quarter for the fiscal year 2026. For the 3 months ended March 31, 2026, we reported revenue of $19.7 million with a net loss of $11.1 million. While our recent results reflect near-term market pressures, they do not change our longer-term plan for diversification and growth. We have seen encouraging signs through new contract wins and expanding opportunities beyond our traditional oil and gas markets. We also recognized revenue with the Heartbeat Detector subscription model, which underscores the growing value of our reoccurring revenue initiatives. Additionally, we are leveraging our contract manufacturing expertise to pursue white label product developments and manufacturing in smart water technologies. Despite lower utilization of our ocean bottom node fleet, we are seeing increased interest for the summer survey season. As planned, we recognized our first revenue from the previously announced permanent reservoir monitoring, or PRM project as initial manufacturing activities began in Houston, representing an important milestone in the project execution. While the conflict in the Middle East has delayed potential future business due to travel restrictions and regional uncertainty associated with the conflict, we have maintained positive North American interest in our Pioneer land node solution. Currently, we are providing proposals to new and existing customers for the Pioneer. To date, Pioneer has been and is currently deployed in numerous basins across North America. As part of ongoing operations and to support potential sales opportunities, we have increased our inventory position in both Pioneer and Mariner components and finished goods. This gives us the opportunity to respond quickly to customer needs and remain flexible given the current market environment. In addition, we have procured many of the long lead components needed for the PRM project and started the manufacturing process to meet the expected delivery schedule. As part of ongoing efforts to align our cost structure with current market conditions and long-term strategic priorities, we implemented a workforce reduction of approximately 20%. Combined with other cost reduction efforts, we expect to generate annualized cost savings of roughly $12 million. The reductions primarily reflect actions to streamline operations, optimize resource allocation and enhance organizational efficiency across key business segments. These steps are intended to strengthen operating leverage, support disciplined capital management and position our company to respond more effectively to evolving customer demand while maintaining focus on its core growth initiatives. We remain committed to building a stronger, more resilient company for the future. I will now turn the call over to Robert to provide more detail on our financial performance. Robert Curda: Thanks, Rich, and good morning. Before I begin, I'd like to remind everyone that we will not provide any specific revenue or earnings guidance during our call this morning. In yesterday's press release for our second quarter ended March 31, 2026, we reported revenue of $19.7 million compared to last year's revenue of $18 million. The net loss for the quarter was $11.1 million or $0.86 per diluted share compared to last year's net loss of $9.8 million or $0.77 per diluted share. For the 6 months ended March 31, 2026, we reported revenue of $45.3 million compared to revenue of $55.2 million last year. Our net loss for the 6-month period was $20.8 million or $1.62 per diluted share compared to last year's net loss of $1.4 million or $0.11 per diluted share. Our Smart Water segment generated revenue of $3.7 million for the three-month period ended March 31, 2026. In comparison, revenue for the same prior year period was $9.5 million, a decrease of 61%. Revenue for the 6-month period was $9.5 million compared to $16.8 million for the same period of the prior fiscal year. Currently, demand for our Hydroconn connector is lower than expected as customers work through excess inventory. As their inventory levels return to normal, we anticipate gradual revenue improvement in the coming quarters. We continue to see growth potential for this segment as utilities increasingly adopt automated metering solutions that use our Hydroconn connector. Our Energy Solutions segment second quarter revenue totaled $9.6 million for the 3 months ended March 31, 2026. This compares to $2.6 million in revenue for the same period of fiscal year 2025, representing an increase of 272% Revenue for the 6-month period is $24.3 million, a decrease of 10% over the equivalent prior year period revenue of $26.9 million. The decrease in revenue for the 3 months was due to revenue recognized related to the PRM contract, the final deliveries of our Pioneer land wireless product purchased by Dawson Geophysical. This increase in revenue is partially offset by lower demand for our traditional seismic products. Additionally, the prior year included a reduction to rental revenue due to concerns about collectibility of receivables from a rental customer. The decrease in revenue for the 6-month period is attributed to lower utilization of our ocean bottom nodal rental fleet, offset by the above-mentioned Pioneer sale to Dawson Geophysical and the revenue recognized for the PRM contract. The Intelligent Industrial segment revenue totaled $6.3 million for the 3-month period ended March 31, 2026. This compares with $5.9 million from the equivalent year ago period, representing an increase of 7%. Revenue for the 6-month period of fiscal year 2026 was $11.4 million. This compares to the same prior year period revenue of $11.5 million. The increase in revenue for the 3-month period was driven by higher demand for our industrial sensors and contract manufacturing services. Our operating expenses increased by $100,000 for the second quarter of 2026 and increased by $700,000 for the 3 -- or 3% for the 6-month period ended March 31, 2026. The increase in operating expenses for the 6-month period is due to higher legal fees and increased facility costs, offset by lower research and development project costs. Our 6-month cash investments into plant and equipment is $3 million. Our balance sheet at the end of the second quarter reflected $13.4 million in cash, and we maintain available borrowings of $25 million from our credit agreement with Woodforest Bank. At March 31, 2026, the company's working capital is $45 million, which includes $19 million of trade accounts and financing receivables. This concludes my discussion, and I'll turn the call back to Rich. Richard Kelley: Thank you, Robert. This concludes our prepared commentary. And I will now turn the call back to the moderator for any questions from our listeners. Operator: [Operator Instructions] We'll go first this morning to Bill Dezellem with Tieton Capital. William Dezellem: A group of questions here. First of all, would you walk through the layoffs that you did and what part of the organization that is impacted? And really just discuss that full rightsizing thought process there, if you would, please. Richard Kelley: The layoffs, the reduction impacted all departments across the organization. What we did is we looked at those areas where we felt we weren't as efficient or where we had put more efficient processes and procedures in place. We looked at where we needed resources going forward to support the business going forward. And we took the opportunity to also -- embedded in that was a voluntary early retirement plan, similar to what we did last year. So we offered people who were close to retirement a chance to take advantage of that. So all those combined is how we got to the number. And as I said, it impacted all departments in the organization. William Dezellem: And did it impact the plant more than the inside or kind of 20% on both sides? Richard Kelley: It was a mix. We didn't -- it was not a focus on direct labor. It was a focus more on operational efficiency and where we needed resources going forward versus sort of where we had been in the past. But we had both direct and indirect professional and direct labor. William Dezellem: Okay. That's helpful. And then let's talk a little bit, if we could, about Petrobras and the contract. A couple of questions there. The first one is walk us through how you see the revenue recognition progressing from here now that you have the first quarter where you've had some revenue. How you see that unfolding over the next several quarters? And when does that reach conclusion? And then in your discussions with Petrobras. What are you hearing relative to what they have for future fields and their thinking? And has any of their thinking spilled over to any of their partners that are on these fields? Richard Kelley: Okay. I will take the second part of the question, and then I'll turn it over to Robert to discuss specific about revenue recognition, okay? So strategically, with Petrobras looking at their future fields, as we've mentioned in the past, we did a FEED study for their 2 next planned fields, which were Sepia and Buzios. They are still ongoing. They still have plans for that. They have a rough time line of the next couple of years, but they are not as I've said in the past, until they actually launch a request for proposals, we can't really state when that might hit. But we -- in the discussions we have with them on a regular basis, those are still in the queue. They're still -- they still are bought into the advantages of permanent reservoir monitoring with regards to efficiency on managing those reservoirs. They see a clear financial advantage to that and strategic advantage to that. So beyond that, I can't really comment. But for revenue recognition, I'm going to turn that over to Robert. Robert Curda: Yes. So, although we have 2 separate contracts, a products contract and a services contract, the way we view that is one performance obligation. You don't have one contract without the other contract. So as a result, we expect to have revenue recognitions throughout the end of the entire endeavor. So we won't stop recognizing revenue until the system is completely deployed. My expectation is -- will be that revenue will increase as we're moving further into production and move into full production. It will be like a nice bell curve that increases over as product is being manufactured and then it will taper off at the end as the cables are being deployed. William Dezellem: And Robert, when would you anticipate that, that top of the bell curve arrives? And then when do you anticipate the contract to be finished? Robert Curda: Well, the contract won't be finished until late in 2027 or early of 2028. I'm not -- haven't totally nailed down what installation is in my mind yet. But the top of the bell curve is going to be... William Dezellem: We think about the peak in those revenues essentially being the midpoint in time between now and let's just call it December of '27? Robert Curda: Yes, I would think that's probably a good call. Operator: Mr. Dezellem, did you have anything further, sir? William Dezellem: Are you still there? Robert Curda: Yes. Operator: We can hear you, sir, Your line is still active. Hearing no response, we will circle back around. We'll go next now to Karl Birkenfeld with American Trust Investment Services. Karl Birkenfeld: Karl Birkenfeld, American Trust. Question, you recently sold your ultralight seismic land nodes to Dawson. Do they have applications for the miners that are now going after these strategic metals that are buried underground, the 11 metals that the Chinese currently control, and we are now actively mining. Richard Kelley: Thank you for joining the call. We can't really comment to Dawson's business. What we can say in general that the Pioneer can be used in mining applications. I mean we know that it can be used and has -- its sister products have been used in coal and lithium and gold mining. But we can't speak specifically to how Dawson using our solutions. Karl Birkenfeld: Okay. Well, I didn't want to know that. I want to know if other miners have been contacting you for your services. Richard Kelley: Absolutely. I mean our solutions, even the prior solutions to Pioneer have been used in mining applications, for sure. Operator: [Operator Instructions] And we'll go back now to Bill Dezellem for a follow-up question. William Dezellem: My apologies. I had a technical difficulty, and I did not hear the response to your answer to the question of whether peak revenues for the Petrobras contract are probably somewhere essentially between the midpoint between now and late '27, call it, December 27. Robert Curda: Yes, Bill, I think that's a pretty good estimate at this point to use as the peak timing. William Dezellem: Just kind of think of it as a normal bell curve essentially. Robert Curda: Yes, sir. William Dezellem: And then would you please walk through a couple of the comments that you made in the press release. Number one, that you had increased interest in the summer survey season for your rental fleet. Maybe give some more detail behind that. And then secondarily, you talked about the white label opportunity. Provide more detail on that also, please? Richard Kelley: Sure. So with regards to the summer season, if we compare the number of requests for quotes and the request for availability of rental compared to last summer season, we're definitely seeing an uptick in activity. Now none of those have converted to orders -- well, I would say none of them. Very few of them have converted to orders yet. But it gives us an idea that the activity and request for surveys for the summer seems to be much improved over last year. We don't know if that's being driven by just the overall macroeconomics or what might -- the underlying forces might be by that. But we are prepared to respond to those. As you know, we have equipment readily available, and we're working closely with those customers to try to win that work that we can. With the regards to the white label, I mean, because it's a white label, I can't give too much detail there, but -- what's interesting is companies in the smart water space that are looking to add to their portfolio without having to invest in the research and development dollars where they can take our solution and have us package it for them and then they then turn around and sell it as part of their larger portfolio or larger solution. So it's embedded in the solution they're offering to the market. We've had a couple of opportunities like that, and it's been quite successful for us. So it gives us a different distribution channel into some areas that we haven't been too terribly successful at before. William Dezellem: And Rich, this is for the actuator valve? Or is this the cable side of your water business? Richard Kelley: No, this is specific to the Aquana solutions. William Dezellem: Right. All right. Two additional questions. The first one is relative to Petrobras, have they -- have you been in discussions? And does it appear that they have additional fields beyond Buzios and Sepia that you've done the FEED studies on that they are interested in doing additional homework on FEED studies or otherwise? And then secondarily, given that the water business had been a bright spot and has been pretty weak in the last several quarters. Would you walk us all through what was driving the strength, what changed and how that business ultimately develops going forward for us, please? Richard Kelley: Sure. So with regards to Petrobras, we have seen their long-term plan. I mean, it's like a lot of other national companies. They have a number of fields that they have identified and they are looking to develop. But they are really focused on Buzios and Sepia right now with regards to putting assets in place and how they want to manage those reservoirs. And so that's the only thing that they're really discussing in any kind of detail for the next few years. I would fully anticipate some sort of FEED study, if not next year, the year after for the next 2 fields that they're looking to develop. But there's nothing concrete now. But we have a great relationship with Petrobras. We're really -- because, obviously, with the Mero 3 and 4 project going on, we're in discussions with their teams every week. So we have a pretty good finger on the pulse of what's going on there. But it's like everything else. I mean, they don't want to get -- they have limited resources as well. So they don't want to get too distracted with a project that might not really start for another 4 or 5 years. So like I said, they do have a long-term plan. They -- obviously, offshore exploration and production is critical to their success going forward. And so we'll continue to support them as best as we can. Switching gears to the water market. And it's a good question and one that we really ask given how much growth we saw over the last few years. As you know, I mean, we were 15% plus growth year-on-year, especially around the Hydroconn. We've had a lot of good discussions with other players in this space, and it's across the board. There seems to have been a little bit of a step back with regards to infrastructure investment. Not really sure what's driving that, if it's a lack of infrastructure dollars or just more of a refocus on other projects. But there's -- if we look at the long-term water industry, specifically around water scarcity, water quality, water management and water loss, I mean, AMI will continue to play a key part in that. And AMI with regards to smart meters and remote communications of those smart meters, that business is going to continue to grow over time, and it's going to be there. And not only that, but with regards to AMR, AMI, we're now -- that technology is mature enough now where that sort of first generation is starting to age out. And so now they're actually starting to get into a replacement cycle. So we do see with some municipalities who are early adopters, they're now into replacement mode. And so that's going to continue to drive demand as well. So -- we have a strong and encouraging philosophy around that, and we do continue to expect that market to grow for some reason, and we don't really have a good feel for that. This year, it seems to be a little bit of a step back. But we don't anticipate that to be the long-term situation. William Dezellem: And Rich, is it your sense that some that you are selling your cables to that they have lost market share, and that's part of the equation also? Or is that -- does that not seem to be a phenomenon and it truly is macro spending? Richard Kelley: I mean, as you know, I mean, we sell to almost every OEM. So we're seeing that same drop across really all the players. There's not really a new evolving technology out there. There's not really a new evolving company out there. So we don't see it a loss of market share. What you see is the overall market itself is down. And we've talked to all the key players, the AWWA and the other players plus the OEMs we do business with. And it's across the board that they're seeing a slowdown in meter deployment. Operator: And gentlemen, it appears we have no further questions this morning. Mr. Kelly, sir, I'd like to turn things back to you for any closing comments. Richard Kelley: Thank you, Bo, and thanks to all of you who joined our call today. We look forward to speaking with you again on our conference call for the third quarter of fiscal year 2026. Goodbye, and have a great day. Operator: Thank you, Mr. Kelly, and thank you, Mr. Curda. Ladies and gentlemen, if you did experience any technical issues with the audio during today's call, it was being recorded and will be available on the Geospace Technologies Investor Relations website following today's call. Again, thanks so much for joining us, everyone. We wish you all a great day. Goodbye. Before you buy stock in Geospace Technologies, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Geospace Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Geospace (GEOS) Q2 2026 Earnings Transcript was originally published by The Motley Fool