GNSS

Image source: The Motley Fool. Thursday, Aug. 13, 2026 at 4:30 p.m. ET Chief Executive Officer - Richard S. Danforth Chief Financial Officer - Cassandra Hernandez-Monteon Investor Relations - Clay Liolios Operator: Ladies and gentlemen, thank you for standing by. My name is Krista and I will be your conference operator today. At this time, I would like to welcome everyone to Genasys Third Quarter 26 Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question at that time, simply press star, then the number 1 on your telephone keypad. And if you would like to withdraw your question, again, star 1. Thank you. Would now like to turn the conference over to Clay Liolios, Investor Relations. Please go ahead. Clay Liolios: Good afternoon, everyone. Thank you for participating in today's conference call to discuss Genasys Inc. Fiscal third quarter 2026 results. Ended 06/30/2026. Joining us on today's call are the company's chief executive officer, Richard S. Danforth and chief financial officer, Cassandra Hernandez-Monteon. Before we begin, let me remind everyone of the company's safe harbor disclaimer. Certain portions of our comments today will concern future expectations, plans and prospects of the company that constitute forward looking statements for purposes of the Safe Harbor provisions under the Private Securities Litigation Reform Act of 2000. Forward looking statements include all statements containing verbs such as aims, anticipates, estimates, expects, believes, intends, plans, predicts, will, may, continue, projects, or targets, and negatives of these words and similar words or expressions. Forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated by the forward looking statements. Factors that could affect our actual results include, among others, those that are discussed under the heading Risk Factors in our most recently filed reports with the SEC. Including our annual report on Form 10 k our quarterly reports on Form 10 Q, and our current reports on Form 8 k. In addition, this call includes discussions of certain non GAAP financial measures including adjusted EBITDA, The most directly comparable GAAP measure and reconciliations for non GAAP measures. Are available in the earnings release other documents posted on the company's website under Investor Relations. A replay of the webcast will be made available approximately 4 hours after the presentation through the conference call link on the Events and Presentations page of the company's website. With that, I would like to turn the call over to Genasys CEO, Richard S. Danforth. Richard S. Danforth: Thank you, Clay and welcome everyone. Revenue for the fiscal third quarter was $7.3 million compared to $9.9 million in the prior year period. The decrease was driven by 2 timing related factors. The first was a supply chain constraint associated with the CROWS program. Constraint has now been resolved Production on this initial $9 million order is underway. And we expect to complete delivery within the fiscal year. Importantly, this was a timing issue rather than a demand issue. The second factor was a deliberate pause in our work in Puerto Rico. Elected to suspend work until customer payments resumed. Following quarter end, collections began flowing again, and we since remobilized project activities on the island. Even with the temporary pause, we expect the work scheduled for the fiscal year to remain unchanged. With both of these timing factors now moving in the right direction, and with gross margins remaining above 50%, we continue to expect fiscal 2026 to be a record year for both revenue and profitability. Staying on the top line, we are seeing meaningful progress in growing demand for our software offerings. Recent wins include a large multiyear Genasys Protect contract with ADA County, Idaho. Home to more than 550 thousand residents and over 3 million annual visitors. Ada County is the second Idaho county to replace its incumbent emergency alert provider with our platform. That displacement trend is encouraging. Agencies are moving away from legacy providers because Genasys delivers better outcomes when it really matters. We also continued to expand our platform. In June, we announced a partnership with Entara and Cal Fire to connect the CalFire Aware platform and Genasys Protect. This connection gives the public another trusted source for real time emergency updates. Now any alert issued through Genasys Protect instantly spreads across the state. Separately, we integrated Genasys Evertel with the public safety data and analytics platform called Peregrine. They are a leading crime data and intelligence software used by real time crime centers and fusion centers today. This was tested and verified by the Vacaville, California Police Department. Pushing real time crime center intelligence directly to offices in the field rather than through manual distribution. It is worth noting that there are approximately 80 fusion centers and 800 real time crime centers across the U.S. Integrations like these accomplish 2 important objectives. They extend the reach of our software into the platform agencies already rely on every day, and then make Genasys Protect increasingly difficult to displace. Once it becomes embedded in mission critical workflows. We are seeing steadily increasing interest from strategic partners looking to build similar connections. And we expect that to be a durable contributor to our software growth. Earlier this week, we announced a software milestone. We are especially proud of. Genasys Protect now covers approximately 15% of the US population and 20% of the country's land area. Making it the nation's leading platform for zone based emergency alerting evacuation management, and secure real time communication. That level of adoption is a testament to our technology, and its ability to help keep people safe and save lives. While we are proud of this milestone, we believe there remains substantial opportunity to expand our footprint across the rest of the country. On the hardware side, momentum continues to build, particularly in critical infrastructure. Over the past several months, we have seen a steady expanding pipeline for our LRAD 59 NXT systems as a security layer for unmanned sites as electrical substations, dams, ports, and data centers. Last week, we announced a $2.4 million critical infrastructure protection order from 1 of the largest utilities in The United States. The order expands a deployment that began with a single substation installation and was followed by a $2 million order. This is a customer that continues to expand its deployment as it sees the system perform. The 59 NXT's are integrated with the substations physical security infrastructure, and multi sensor perimeter intrusion detection systems. They address a full range of physical security requirements to detect, assess, communicate, respond, delay, and deter threats. In short, they transform passive monitoring into immediate intervention. Critical infrastructure remains 1 of our strongest growth opportunities. The pipeline continues to build, and we expect the market to be a meaningful driver of our hardware growth going forward. At the same time, our long standing defense and security custom customers remain active. US Army continues to be an important partner and demand from international navies and defense agencies continue to strengthen as government increase spending on force protection, maritime security, and critical infrastructure resilience. Overall, our pipeline continues to grow across hardware and software, and our focus remains on converting those opportunities into signed contracts and recognized revenue. Turning to the balance sheet. In July, we extended the maturity of our term loan providing additional working capital flexibility and reducing our dependence on the timing of payments from any single customer. We view our lenders' willingness to extend the facility as further validation of the strength of our backlog the opportunities within our pipeline and our long term outlook. Overall, the fiscal third quarter was affected by timing, not by any change in underlying demand. Our backlog remains strong, our pipeline continues to grow, and the factors that delayed revenue recognition during the quarter are now being resolved. We enter the fourth quarter with improved operating leverage, greater financial flexibility, and a strong visibility into the work ahead. As a result, we remain confident in the delivering a record year of revenue and profitability. With that, I will turn the call over to Cassandra. Cassandra Hernandez-Monteon: Thank you, Richard, and thank you everyone for joining. For third quarter results. In the third quarter of fiscal 26, Genasys generated $7.3 million in revenue. This included only $1.3 million in contribution from the Puerto Rico project due to our deliberate decision to halt work on the island until customer payment resumes. As Richard mentioned, collections restarted after quarter end, and we have begun remobilizing activities. We expect Puerto Rico to be a meaningful contributor to the fourth quarter revenue as project activities continue to ramp through the remainder of our fiscal year. Total software revenue for fiscal third quarter was $2.7 million, representing a 21% increase year over year and a 12% increase sequentially. During the quarter, we generated approximately $2.5 million in software bookings, including both new customer wins and contract renewals. We exited the quarter with 12-month backlog of approximately $69 million compared to $58.2 million at the end of the second quarter. While the increase reflects both continued order activity and the timing of certain programs, the back provides meaningful revenue visibility and supports our view that the third quarter revenue shortfall was primarily a timing rather than a reduction in customer demand. Gross profit margin in the quarter was 57.1% compared to 26.3% in the fiscal third quarter of 2025. This improvement was driven primarily by the revenue mix. The prior year period included a large contribution from the Puerto Rico project which carried lower margins under the percentage of completion revenue recognition methodology. While the current quarter benefited from higher portions of software revenue. Operating expenses decreased 3.8% to $8.2 million from $8.5 million in the prior year period. Selling, general, and administrative expenses decreased 4.6% to $6.1 million while research and development expenses decreased 1.2% year over year to $2.1 million. These reductions reflect action taken during the quarter to better align spending with the company's cash flow profile and near term operating priorities. GAAP net loss for the quarter was $4.7 million or a loss of $0.10 per share, basic and diluted. Compared with a GAAP net loss of $6.5 million or a negative $0.14 per share in the third quarter of fiscal 2025. Adjusted EBITDA improved to a loss of $3.1 million from a loss of $84.8 million in the prior year period. Primarily reflecting improvement gross margins, and disciplined expense management. Now on to the balance sheet. Cash, cash equivalents, and marketable securities totaled $3.1 million as of 06/30/2026, compared to $8 million at 9/30/2025. As Richard mentioned earlier, in July, we completed the third amendment to our term loan and security agreement, extending the maturity date to July 2027, and providing additional financial flexibility as we execute against our backlog and pipeline. We believe the revised structure is better aligned with the operating cash flow profile of the business imports and supports execution of our growth strategy. In summary, while a meaningful portion of revenue shifted beyond the third quarter, the underlying business fundamentals remain solid. Gross margins exceeded 57%. 12-month backlog increased to approximately $69 million and collections in Puerto Rico resumed following the quarter end. We also took action during the quarter to better align spending with our cash flow profile while improving financial flexibility through the extension of our term loan. We remain focused on executing against our backlog generating cash flow, and improving flexibility. With that, Richard, back to you. Richard S. Danforth: Thank you, Cassandra. We sit in a strong position. Our software products are beginning to get the recognition they deserve, and our hardware business is bringing in a steady flow of new orders. The demand environment across both sides of our business are as robust as they have ever been. And the work we have done this year has put us in a position to meet it. With the progress we have made on the balance sheet and the cost structure, we enter the fourth quarter with real momentum. The term loan extension gives us working capital flexibility and reduces our dependencies on the timing of customer payments. We remain on pace for a record year in both revenue and profitability, backed by our $69 million backlog and pipeline that continues to grow. I want to thank our employees for their work this quarter and our shareholders for their continued support. With that, we would like to open it up for Q&A. Operator? Operator: Thank you. We will now begin the question and answer session. Your first question comes from the line of Edward Woo with Ascendiant Capital. Please go ahead. Ed Woo: Yeah. Congratulations on the progress, in the despite the Q3, glad that there is momentum. Heading into Q4. My question is on the Idaho win. You said you displaced legacy systems. Have you seen any big changes out in competition out there or do you feel that it is easier that you guys are gaining momentum to be able to displace with more of your other systems and competitors out there? Richard S. Danforth: And I think the Ada County is an evacuation customer. And they love it. And they would like to simplicity and the intuitiveness of it. And our communication software or alert software is equally the same. So they like the easier use of the platform. And I think when the contract runs out with their existing supplier, not only in Ada but in counties all across the country, they will switch to Genasys. Ed Woo: And you mentioned I think you said that was a second county in Idaho to do that. Is it much easier now for you to spread to the rest of the state and, obviously, to other counties in other states. Okay. Richard S. Danforth: Ada is the largest county in the state with the over half a million people. But yes. So we already cover more people--most of the people in the state, and our intention is to land the whole state. Ed Woo: Great. Then my last question is back on the Puerto Rico contract. You mentioned that you had a pause for a little bit, but then you were restarting now as collection is going. Does that impact the overall timing of when you are going to complete the project? And, also, does that affect your overall profitability as well? Richard S. Danforth: Second 1 first. No. It does not have anything to do with our profitability in Puerto Rico remains to be very good. And I think you know this, Edward, but we had not scheduled any work on the island for our fiscal fourth quarter when we came into this calendar this fiscal year. Principally to stay away from hurricane season. So we have now going to be doing work in the fourth quarter in Puerto Rico. There will be some challenges based on weather I am sure. But right now, we have begun and yeah, we are going to get as much done on the island as possible in this fourth quarter. Ed Woo: Great. Well, thanks for my questions, and I wish you guys good luck. Richard S. Danforth: Thank you. You too. Operator: Thank you. Your next question comes from the line of Luke Fingerson with Lake Street Capital Markets. Please go ahead. Luke Fingerson: Hey, guys. Luke Fingerson on for Jaeson Schmidt here. Congrats on a good quarter. Obviously, some big contracts coming in. Just going to start on the collection of payments from Puerto Rico. Just curious kind of how that is progressing. And how we should think about the timing of collections. Richard S. Danforth: In the last 4 weeks, Luke, we have collected $2.99 million, like, every other Friday. Luke Fingerson: Okay. Richard S. Danforth: And they are paying against specific invoices, so it could be higher or it could be slightly lower. But the important thing is that the cash is finally flowing. Luke Fingerson: Gotcha. Is that kind of in line with how you expect it, or is it going to accelerate here? I guess there is a backup for not being paid for so long. Richard S. Danforth: Yep. So they are working through that backlog and then as we continue to finish things in Puerto Rico, we will invoice them for that work. Luke Fingerson: Gotcha. That makes sense. And then kind of with the US Army, you got the utility order. And then the Ada County order. I mean, obviously, these opportunities are just kind of flowing in here. A lot of them follow ons. So as these opportunities continue to develop, many of them being follow on orders, kind of curious where you see the address and serviceable markets of these opportunities in the next few years. Richard S. Danforth: Oh, I do not think I have ever put a number out on that, Luke, but it is large. You know, our bookings in the hardware side of business non military will be higher this year than I think it is ever been. And we will generate about $9 million in revenue off the CROWS program this fiscal year. I mentioned a bit in my remarks regarding CIT market and vertical. That 1 utility company I referenced bought $4.4 million worth of NXT's this fiscal year. And last fiscal year, it was about $1 million. So it is over $5 million for 1 utility here in California. And the pipeline on that unit is very robust. And growing. My remarks, I told you that the not only is the power stations, but it is it is dams. it is data centers. it is all over the all over the map. Yeah. No, I mean, good to hear. Obviously, the market's broad and booming. Luke Fingerson: So thanks for taking my question. Richard S. Danforth: I have mentioned this in the past. Luke, but we have sold those units to the French Navy, Spanish Navy, Canadian Navy, United States Navy, some mega yachts, and in the process of bidding other countries' navies. Luke Fingerson: Yeah. I really appreciate the clarity on that, and thanks for taking my questions. Richard S. Danforth: Okay. Thank you. Operator: And that does conclude our question and answer session. And ladies and gentlemen, that does conclude today's conference call. Thank you for your participation and you may now disconnect. Before you buy stock in Genasys, 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 Genasys 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 $432,621!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,314!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, 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 20, 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. Genasys (GNSS) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: $7.3 million in fiscal Q3 2026, down from $9.9 million in the prior-year period. Software Revenue: $2.7 million, a 21% increase year over year and a 12% increase sequentially. Gross Margin: 57.1%, up from 26.3% in the fiscal third quarter of 2025. Operating Expenses: Decreased 3.8% to $8.2 million from $8.5 million in the prior-year period. SG&A Expenses: Decreased 4.6% to $6.1 million. R&D Expenses: Decreased 1.2% year over year to $2.1 million. Net Loss: GAAP net loss of $4.7 million, or a loss of $0.10 per share, compared with a net loss of $6.5 million, or $0.14 per share, in Q3 fiscal 2025. Adjusted EBITDA: Improved to a loss of $3.1 million from a loss of $4.8 million in the prior-year period. Backlog: 12-month backlog of approximately $69 million, up from $58.2 million at the end of the second quarter. Cash and Marketable Securities: Totaled $3.1 million as of June 30, 2026, compared to $8 million at September 30, 2025. Puerto Rico Project Contribution: Only $1.3 million in revenue contribution due to a deliberate pause in work. Warning! GuruFocus has detected 6 Warning Signs with GNSS. Is GNSS fairly valued? Test your thesis with our free DCF calculator. Release Date: August 13, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Genasys Inc (NASDAQ:GNSS) secured a large multi-year Genesis Protect contract with Ada County, Idaho, displacing an incumbent provider and expanding its footprint in the state. The company's software revenue grew 21% year-over-year and 12% sequentially, reaching $2.7 million in Q3 2026. Genasys Inc (NASDAQ:GNSS) reported a 12-month backlog of approximately $69 million, up from $58.2 million at the end of Q2, providing strong revenue visibility. Gross margins improved significantly to 57.1% in Q3 2026, up from 26.3% in the prior-year period, driven by a favorable revenue mix. The company received a $2.4 million critical infrastructure protection order from a major U.S. utility, expanding an existing deployment and highlighting growing demand for its LRAD systems. Genasys Inc (NASDAQ:GNSS) extended its term loan maturity to July 2027, enhancing working capital flexibility and reducing dependence on customer payment timing. The company's software platform now covers approximately 15% of the U.S. population and 20% of the country's land area, positioning it as a leading emergency alerting solution. Collections from Puerto Rico resumed after quarter-end, with $2.9 million collected in the last four weeks, and the company has remobilized project activities. Operating expenses decreased 3.8% year-over-year, reflecting disciplined cost management and better alignment with cash flow priorities. Adjusted EBITDA loss improved to $3.1 million from $4.8 million in the prior-year period, indicating better operational efficiency. Genasys Inc (NASDAQ:GNSS) reported a 26% year-over-year decline in Q3 2026 revenue, falling to $7.3 million from $9.9 million, due to timing issues. The company experienced a supply chain constraint on the CROS program, which delayed revenue recognition during the quarter, though it has since been resolved. Genasys Inc (NASDAQ:GNSS) deliberately paused work in Puerto Rico due to delayed customer payments, which negatively impacted Q3 revenue and required remobilization efforts. The company's cash position weakened, with cash equivalents and marketable securities totaling $3.1 million as of June 30, 2026, down from $8 million at September 30, 2025. GAAP net loss for Q3 2026 was $4.7 million, though improved from a $6.5 million loss in the prior-year period, indicating ongoing profitability challenges. The company's reliance on a few large contracts, such as Puerto Rico and the CROS program, exposes it to timing and payment risks that can cause quarterly revenue volatility. The remobilization of Puerto Rico work in Q4 may face weather-related challenges due to hurricane season, potentially impacting project execution. Despite the backlog growth, the company's revenue visibility is concentrated in a limited number of programs, which could pose risks if any face delays or cancellations. The company's operating expenses, while reduced, still exceed gross profit, leading to continued net losses and reliance on external financing. The term loan extension, while providing flexibility, indicates the company's need for additional working capital support, reflecting ongoing cash flow pressures. Q: Regarding the Ada County, Idaho win, where you displaced a legacy system, have you seen any big changes in the competitive landscape, and is it becoming easier to gain momentum with displacements?A: Richard Danforth, CEO, stated that Ada County, an evacuation customer, appreciates the simplicity and intuitiveness of the platform. He believes that as contracts with existing suppliers expire across the country, agencies will switch to Genasys because the platform delivers better outcomes. He also noted that Ada County is the largest county in Idaho, and with this win, Genasys now covers most of the state's population, with the intention to secure the entire state. Q: Does the temporary pause in the Puerto Rico project impact the overall timing of completion or the project's profitability?A: Richard Danforth, CEO, clarified that the pause has no impact on profitability, which remains very good. He explained that the company had not originally scheduled work on the island for the fiscal fourth quarter to avoid hurricane season, but will now be working there. While there may be weather-related challenges, they have remobilized and intend to complete as much work as possible in the fourth quarter. Q: How is the collection of payments from Puerto Rico progressing, and how should we think about the timing of future collections?A: Richard Danforth, CEO, reported that in the last four weeks, the company has collected $2.9 million from Puerto Rico, with payments arriving every other Friday. The customer is paying against specific invoices, so the amounts may vary, but the key takeaway is that cash flow has resumed. As the company continues to complete work on the island, it will invoice for that work, and the customer will work through the backlog of unpaid invoices. Q: With the recent wins from the US Army, the utility order, and Ada County, many of which are follow-on orders, where do you see the addressable and serviceable markets for these opportunities in the next few years?A: Richard Danforth, CEO, stated that while he hasn't put a specific number on the market size, it is large. He highlighted that non-military hardware bookings will be higher this year than ever before, and the company will generate about $9 million in revenue from the CROWS program this fiscal year. He cited the example of one California utility that purchased $4.4 million worth of LRAD 950 NXT systems this fiscal year, up from $1 million last year, and noted the pipeline for critical infrastructure (CIP) is robust and growing across power stations, dams, and data centers. He also mentioned sales to the French, Spanish, Canadian, and US Navies, as well as mega yachts, with bids pending for other countries' navies. Q: Can you provide more detail on the revenue shortfall in Q3 and the factors that caused it?A: Richard Danforth, CEO, explained that the revenue decrease to $7.3 million from $9.9 million was driven by two timing-related factors. First, a supply chain constraint associated with the CROWS program, which has since been resolved, with production underway and delivery expected within the fiscal year. Second, a deliberate pause in Puerto Rico work until customer payments resumed. He emphasized these were timing issues, not demand issues, and with both factors now resolved and gross margins above 50%, the company still expects fiscal 2026 to be a record year for revenue and profitability. Q: What is the current state of the company's backlog and how does it support the outlook for the rest of the fiscal year?A: Cassandra Hernandez-Monteon, CFO, reported that the 12-month backlog increased to approximately $69 million, up from $58.2 million at the end of the second quarter. This increase reflects continued order activity and the timing of certain programs. The strong backlog provides meaningful revenue visibility and supports the view that the Q3 revenue shortfall was primarily a timing issue rather than a reduction in customer demand. Q: Can you elaborate on the recent software milestones and partnerships, and how they contribute to the company's growth?A: Richard Danforth, CEO, highlighted that Genasys Protect now covers approximately 15% of the U.S. population and 20% of the country's land area, making it the leading platform for zone-based emergency alerting. He also discussed the partnership with Interra and Cal Fire to connect the Cal Fire Aware platform with Genasys Protect, and the integration of Genasys EverTel with the Peregrine public safety data platform. These integrations extend the reach of the software into platforms agencies already use, making Genasys Protect increasingly difficult to displace once embedded in mission-critical workflows. He noted there are approximately 80 fusion centers and 800 real-time crime centers in the US, representing significant expansion opportunities. Q: What actions were taken to improve the balance sheet and financial flexibility during the quarter?A: Cassandra Hernandez-Monteon, CFO, stated that in July, the company completed the Third Amendment to its term loan and security agreement, extending the maturity date to July 2027. This provides additional working capital flexibility and reduces dependence on the timing of payments from any single customer. The company also took actions during the quarter to better align spending with its cash flow profile, with operating expenses decreasing 3.8% year-over-year. The lenders' willingness to extend the facility is seen as validation of the strength of the company's backlog and long-term outlook. Q: How did the revenue mix impact gross margins in the quarter?A: Cassandra Hernandez-Monteon, CFO, explained that gross profit margin improved to 57.1% from 26.3% in the prior year period. This improvement was driven primarily by the revenue mix. The prior year period included a large contribution from the Puerto Rico project, which carried lower margins under the percentage of completion revenue recognition methodology, while the current quarter benefited from higher portions of software revenue, which carries higher margins. Q: What is the outlook for the critical infrastructure market and the LRAD 950 NXT systems?A: Richard Danforth, CEO, stated that critical infrastructure remains one of the company's strongest growth opportunities. The pipeline continues to build, with a steady expansion of demand for LRAD 950 NXT systems as a security layer for unmanned sites such as electrical substations, dams, ports, and data centers. He highlighted a recent $2.4 million order from one of the largest US utilities, which expands a deployment that began with a single substation installation. The systems are integrated with physical security infrastructure and multisensor perimeter intrusion detection systems, transforming passive monitoring into For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Genasys Inc.? Here are five stocks we like better. Revenue fell to $7.3 million from $9.9 million year over year due to temporary supply-chain issues affecting the CROWS defense program and a work suspension in Puerto Rico, rather than weaker demand. Genasys said both issues are being resolved and maintained its outlook for record fiscal 2026 revenue and profitability. Software revenue increased 21% year over year to $2.7 million, while 12-month backlog grew to approximately $69 million from $58.2 million. The company also reported expanding emergency-alerting coverage and new customer and platform integration wins. Gross margin improved sharply to 57.1% from 26.3%, and the adjusted EBITDA loss narrowed to $3.1 million. Genasys also cited strong hardware demand from utilities and defense customers, including $2.4 million in new LRAD orders from a major U.S. utility. Genasys (NASDAQ:GNSS) reported fiscal third-quarter 2026 revenue of $7.3 million, down from $9.9 million a year earlier, as supply-chain constraints affecting a defense program and a temporary work suspension in Puerto Rico shifted revenue recognition beyond the quarter. Chief Executive Officer Richard Danforth said the revenue decline reflected timing issues rather than weaker demand. The company maintained its expectation for fiscal 2026 to be a record year for revenue and profitability, citing gross margins above 50%, a growing backlog and progress resolving the factors that affected the third quarter. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be “Our backlog remains strong, our pipeline continues to grow, and the factors that delayed revenue recognition during the quarter are now being resolved,” Danforth said. Danforth said a supply-chain constraint related to the CROWS program affected quarterly revenue. The constraint has been resolved, production has begun on an initial $9 million order, and Genasys expects to complete delivery within the fiscal year. → Nebius’ Q2 Beat Shows the AI Bottleneck Is Capacity, Not Demand The company also paused work in Puerto Rico while awaiting customer payments. Chief Financial Officer Cassandra Hernandez-Monteon said the Puerto Rico project contributed $1.3 million of third-quarter revenue. Collections resumed after the quarter ended, and Genasys has remobilized project activity on the island. Danforth said the company had collected $2.9 million from Puerto Rico in the four weeks following the quarter-end. Payments are being made against specific invoices, he said, as the customer works through a backlog of unpaid amounts. → On Holding's Price Stumble May Be an Opening for a Company Built to Run Genasys had not originally planned Puerto Rico work during its fiscal fourth quarter because of hurricane season, Danforth said. However, the company is now conducting work there and intends to complete as much as possible during the quarter. He said the pause would not affect the project’s profitability. Software revenue totaled $2.7 million, up 21% from the prior-year period and 12% sequentially. Genasys generated about $2.5 million in software bookings during the quarter, including new customer contracts and renewals. The company ended the quarter with approximately $69 million in 12-month backlog, compared with $58.2 million at the end of the fiscal second quarter. Hernandez-Monteon said the growth reflected continued order activity as well as the timing of certain programs, providing visibility into future revenue. Among recent software wins, Genasys announced a multiyear Genasys Protect agreement with Ada County, Idaho, which has more than 550,000 residents and more than 3 million annual visitors. Danforth said Ada County was the second county in Idaho to replace an incumbent emergency-alert provider with Genasys. During the question-and-answer session, Danforth said Genasys believes counties may increasingly move to its platform as contracts with existing suppliers expire, citing the platform’s ease of use. He said the company already covers most of Idaho’s population and intends to expand coverage throughout the state. The company also announced integrations involving its software products. Genasys partnered with Intterra and CAL FIRE to connect the CAL FIRE AwareCA platform with Genasys Protect, allowing alerts issued through the platform to be shared statewide. Separately, Genasys integrated its Evertel platform with Peregrine, a public-safety data and analytics platform. The integration was tested by the Vacaville, California, Police Department, according to Danforth. Genasys Protect now covers about 15% of the U.S. population and 20% of the country’s land area, Danforth said. The company described the platform as the nation’s leading platform for zone-based emergency alerting, evacuation management and secure real-time communications. On the hardware side, Genasys said demand is increasing for its LRAD 950NXT systems for critical-infrastructure sites including electrical substations, dams, ports and data centers. The company recently announced a $2.4 million order from one of the largest utilities in the United States. The order expands an existing deployment that began with one substation installation and was later followed by a $2 million order. Danforth said the systems are integrated with physical-security infrastructure and perimeter-intrusion detection systems to help users detect, assess, communicate, respond to, delay and deter threats. In response to an analyst question, Danforth said the utility customer had purchased $4.4 million of NXT systems during fiscal 2026, following approximately $1 million in purchases during the prior fiscal year. He also said the company’s nonmilitary hardware bookings are expected to reach their highest level to date this fiscal year. Genasys also cited continued activity from defense customers, including the U.S. Army and international naval and defense agencies. Danforth said the company has sold the systems to the French, Spanish, Royal Canadian and U.S. navies, among other customers. Gross margin rose to 57.1% in the fiscal third quarter from 26.3% a year earlier. Hernandez-Monteon attributed the improvement primarily to revenue mix, as the prior-year quarter included a larger contribution from the lower-margin Puerto Rico project under percentage-of-completion accounting. The current quarter included a higher proportion of software revenue. Operating expenses declined 3.8% year over year to $8.2 million. Selling, general and administrative expenses decreased 4.6% to $6.1 million, while research and development spending declined 1.2% to $2.1 million. The company said the reductions reflected steps to align spending with cash flow and near-term operating priorities. Genasys reported a GAAP net loss of $4.7 million, or $0.10 per share, compared with a loss of $6.5 million, or $0.14 per share, in the prior-year quarter. Adjusted EBITDA loss narrowed to $3.1 million from $4.8 million. Cash, cash equivalents and marketable securities totaled $3.1 million as of June 30, compared with $8 million at Sept. 30, 2025. In July, Genasys extended the maturity of its term loan to July 2027. Management said the extension provides additional working-capital flexibility and reduces reliance on payment timing from individual customers. “The demand environment across both sides of our business is as robust as it has ever been,” Danforth said, adding that the company remains on pace for a record year supported by its backlog and expanding pipeline. Genasys, Inc (NASDAQ: GNSS) specializes in mission-critical communications and emergency mass notification solutions designed to keep organizations and communities connected during high-stress events. The company's core offerings include a multi-channel alerting platform that integrates SMS, email, voice, sirens, public address systems and social media outlets. By combining hardware and cloud-based software, Genasys delivers robust, scalable systems that can push targeted warnings and status updates to millions of recipients in seconds. In addition to its flagship Smart Mass Notification System, Genasys provides hardened private LTE networks, satellite communications terminals and interoperable radio systems tailored for government agencies, defense customers, utilities, energy producers and remote industrial operations. 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 "Genasys Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

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. Revenue decline was attributed to two specific timing factors: a resolved supply chain constraint in the CROWS program and a deliberate pause in Puerto Rico operations pending customer payments. Management elected to suspend work in Puerto Rico to protect cash flow, remobilizing only after collections resumed following the quarter's end. Software revenue grew 21% year-over-year, driven by a displacement trend where agencies are replacing legacy emergency alert providers with the Genasys Protect platform. Strategic integrations with platforms like Peregrine and CalFire Aware are intended to embed Genasys software into mission-critical workflows, making the technology more difficult for customers to displace. Hardware momentum is shifting toward critical infrastructure, specifically using LRAD 59 NXT systems to transform passive monitoring into active intervention at substations and data centers. Gross margin expansion to 57.1% was driven by a favorable revenue mix with higher software contributions and lower proportional revenue from the Puerto Rico project. Management maintains its expectation for fiscal 2026 to be a record year for both revenue and profitability, supported by a $69 million 12-month backlog. The company expects to complete the initial $9 million CROWS program order within the current fiscal year now that supply constraints are resolved. Puerto Rico project activities are expected to be a meaningful contributor to fourth-quarter revenue as the company works through the project backlog during hurricane season. The term loan maturity extension to July 2027 is intended to provide working capital flexibility and reduce operational dependency on the timing of individual customer payments. Strategic focus remains on converting a growing pipeline of international naval and domestic utility opportunities into signed hardware contracts. Genasys Protect reached a milestone of covering approximately 15% of the US population and 20% of the country's land area. Operating expenses were reduced by 3.8% year-over-year as part of a disciplined effort to align spending with the company's cash flow profile. The Puerto Rico project carries lower margins under the percentage of completion methodology compared to the company's software offerings. The company faces potential weather-related execution challenges in Puerto Rico during the fourth quarter due to the shift in work schedule into hurricane season. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted that the Ada County win was driven by the simplicity and intuitiveness of the evacuation and alert software compared to incumbent providers. The company intends to leverage the Ada County success to eventually capture the entire state of Idaho as existing contracts with competitors expire. Collections have normalized to approximately $2.99 million every two weeks as the customer works through the invoice backlog. Management confirmed the pause did not impact the overall profitability of the Puerto Rico contract, which remains very good. The utility sector is showing rapid expansion, with one customer increasing spend from $1 million last year to $4.4 million this fiscal year, totaling over $5 million in cumulative orders. The hardware pipeline is diversifying beyond domestic utilities to include international navies (France, Spain, Canada) and high-end maritime security.

SAN DIEGO, August 13, 2026--(BUSINESS WIRE)--Genasys Inc. (NASDAQ: GNSS), the global leader in Protective Communications®, today announced full financial results for the Company’s fiscal 2026 third quarter ended June 30, 2026. Fiscal Q3 2026 Financial Summary Revenue of $7.3 million, versus $9.9 million in the fiscal 2025 third quarter Gross margin of 57.1%, versus 26.3% in the fiscal 2025 third quarter GAAP operating loss of ($4.0) million, versus a GAAP operating loss of ($5.9) million in the fiscal 2025 third quarter Adjusted EBITDA of ($3.1) million, versus ($4.8) million in the fiscal 2025 third quarter GAAP net loss of ($4.7) million, versus ($6.5) million in the fiscal 2025 third quarter GAAP net loss per share ($0.10) basic and diluted, versus ($0.14) in the fiscal 2025 third quarter Recent Business Highlights and Developments Extended the maturity of the $15.2 million term loan to July 13, 2027 under a Third Amendment, replacing quarterly interest payments and a single balloon payment at maturity with $1.0 million monthly amortization beginning October 1, 2026, providing working capital flexibility to execute against backlog. Received a $3.0 million follow-on Acoustics order from the U.S. Army for 360XT mobile mass notification systems deploying to overseas Forward Operating Sites. Secured $4.4 million in follow-on orders for remotely operated LRAD® 950NXT systems from one of the nation's largest utilities, underscoring further demand emerging from dams, nuclear facilities, and data centers. Won a large, multi-year Genasys Protect® contract with Ada County, Idaho, home to more than 550,000 residents and over 3 million annual visitors. Management Commentary and Outlook "Fiscal third quarter results reflect timing rather than demand," said Richard Danforth, Genasys' Chief Executive Officer. "Supply chain constraints delayed Common Remotely Operated Weapon Station (CROWS) II Technical Refresh program deliveries, and work on the Puerto Rico Dams Early Warning System project was paced pending receipt of customer payments. The Company has now begun receiving those payments. Our people and equipment are on the island, the CROWS constraint has been resolved, and the underlying fundamentals of the business remain strong. "Despite these headwinds, we took meaningful steps over the past few months to better position the Company. We closed a Third Amendment to our Term Loan Agreement, extending the maturity to July 2027 and replacing a single balloon payment with monthly amortization that better aligns our obligations with the timing of customer collections. We made targeted adjustments to headcount and operating expenses, streamlining our organization to improve our operating leverage as revenue scales. These actions position us to capitalize on the demand we see across the business. "Our Protect software platform now reaches 15% of the U.S. population and 20% of the country by area, making it the nation's leading zone-based emergency alerting and evacuation management platform, while hardware demand continues to build with key wins across critical infrastructure and international customers. This is reflected in a backlog of more than $69 million heading into the fiscal fourth quarter. "With the CROWS constraints resolved, Puerto Rico payment backlog having been reduced, and demand building across both hardware and software, we expect to deliver a strong fourth quarter. We remain on track to complete our planned scope this fiscal year and continue to expect a record year of revenue and profitability." Fiscal Q3 2026 Financial Results Fiscal third quarter revenue was $7.3 million, compared to $9.9 million in the prior year’s quarter. Gross profit margin was 57.1%, compared to 26.3% in third quarter of fiscal 2025. The increase in gross profit margin was primarily driven by the higher mix of software revenue in the quarter. Operating expenses decreased 3.8% to $8.2 million from $8.5 million in the prior year period. Selling, general and administrative expenses decreased 4.6% to $6.1 million. Research and development expenses decreased 1.2% year-over-year to $2.1 million. GAAP net loss in the quarter was ($4.7) million, or ($0.10) per share, basic and diluted, compared with a GAAP net loss of ($6.5) million, or ($0.14) per share, in the third quarter of fiscal 2025. The improvement in GAAP net loss was primarily driven by the increase in gross margins and was partially offset by the decrease in revenue. Adjusted EBITDA was ($3.1) million for the third quarter of fiscal 2026, compared with ($4.8) million for the prior fiscal year period. Cash, cash equivalents, and marketable securities totaled $3.1 million as of June 30, 2026, compared to $8.0 million at September 30, 2025. We include in this press release adjusted EBITDA, which is a non-GAAP financial measure and which we believe provides helpful information to investors with respect to evaluating the Company’s performance. Adjusted EBITDA represents our net income (loss) before interest income, interest expense, income tax expense (benefit), depreciation and amortization expense, share-based compensation, fair value measurements of our term loans and warrants, other non-recurring expense, and other items that we do not consider indicative of our core operating performance. Adjusted EBITDA is a measure used by management to understand and evaluate our core operating performance and trends and to generate future operating plans, make strategic decisions regarding allocation of capital and invest in initiatives that are focused on cultivating new markets for our solutions. In particular, the exclusion of certain expenses in calculating adjusted EBITDA facilitates comparisons of our operating performance on a period-to-period basis. However, since adjusted EBITDA is a non-GAAP financial measure, it is not necessarily comparable with adjusted EBITDA used by other companies. Adjusted EBITDA has limitations and should not be considered in isolation or a substitute for performance measures calculated under GAAP, including net income (loss). Webcast and Conference Call Details Management will host a conference call to discuss the financial results for the fiscal third quarter 2026 this afternoon at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time. To access the conference call, dial toll-free (800) 715-9871, or international at +1 (646) 307-1963. A webcast will also be available at the following link: https://app.webinar.net/Yer0OY4owvP. A replay of the webcast will be available approximately four hours after the presentation on the Events page of the Company’s website. About Genasys Inc. Genasys Inc. (NASDAQ: GNSS) is the global leader in Protective Communications®, providing the most comprehensive portfolio of preparedness, response, and analytics software and hardware solutions available. The Company’s Long Range Acoustic Device® (LRAD®) and Protect Platform, which includes Genasys Protect® and Genasys Evertel®, are designed around one premise: ensuring organizations and public safety agencies are Ready when it matters®. Protecting people and saving lives for over 40 years, Genasys covers more than 155 million people in all 50 states and in over 100 countries worldwide. For more information, visit genasys.com. Forward-Looking Statements Except for historical information contained herein, the matters discussed are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. They include without limitation expectations regarding the impact of the Third Amendment, including increased working capital flexibility and backlog execution; expected receipt of payments under our Puerto Rico EWS project; expected completion of the CROWS II order; growing demand for our products; expectations regarding improved operating leverage, revenue and profitability; and expectations with respect to the fiscal year ending September 30, 2026. You should not place undue reliance on these statements. We base these statements on particular assumptions that we have made in light of our industry experience, the stage of product and market development as well as our perception of historical trends, current market conditions, current economic data, expected future developments and other factors that we believe are appropriate under the circumstances. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those suggested in any forward-looking statement. The risks and uncertainties in these forward-looking statements include without limitation risks relating to continuous delays in receiving payment under, regulatory uncertainties surrounding, or disruptions in governmental support or funding of, the Puerto Rico project, our reliance on a limited number of customers, the likely need for additional capital, actual or perceived failures or breaches of our information and security systems, effects of continued geopolitical unrest and regional conflicts, including the conflict in Iran and its effect on global oil prices, continued funding of government spending, the timing of such funding, general economic and business conditions, including unforeseen weakness in the Company’s markets, competition, changes in technology and methods of marketing, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, market acceptance of the Company’s products, shortages in components or price increases that cannot be passed on to customers, inability to fully realize the expected benefits from acquisitions and restructurings or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, changes to export regulations, difficulties in retaining key employees and customers, changes in the market for microcap stocks regardless of growth and value and various other factors beyond our control. Risks and uncertainties are identified and discussed in our filings with the Securities and Exchange Commission. These forward-looking statements are based on information and management’s expectations as of the date hereof. Future results may differ materially from our current expectations. For more information regarding potential risks and uncertainties, see the "Risk Factors" section of the Company’s Form 10-K for the fiscal year ended September 30, 2025. Genasys Inc. disclaims any intent or obligation to publicly update or revise forward-looking statements, except as otherwise specifically stated. View source version on businesswire.com: https://www.businesswire.com/news/home/20260813575518/en/ Contacts Investor Contact Scott Liolios and Clay LioliosGateway Group, [email protected]

SAN DIEGO, July 30, 2026--(BUSINESS WIRE)--Genasys Inc. (NASDAQ: GNSS), the global leader in Protective Communications®, today announced plans to release financial results for its fiscal third quarter ended June 30, 2026, after the market close on Thursday, August 13, 2026. A conference call to discuss the fiscal third quarter financial results will be held at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time. Preliminary Fiscal Third Quarter 2026 Results Based on preliminary unaudited results, the Company expects total revenue for the fiscal third quarter to range between $7.0 and $7.5 million. Revenue for the quarter was primarily impacted by two factors. The first was supply chain constraints associated with the Common Remotely Operated Weapon Station (CROWS) II Technical Refresh program. This constraint has since been resolved, and the Company expects the order to be completed in its fiscal fourth quarter. The second was a deliberate pause in execution of the Puerto Rico Dams Early Warning System (EWS) project pending receipt of customer payments. After the end of the fiscal third quarter, the Company began receiving those payments. Accordingly, the Company has remobilized on the island and expects work to accelerate throughout its fiscal fourth quarter. Backlog exiting the quarter was approximately $69 million. For the fiscal third quarter, gross margins are expected to range from 55% to 58%, and adjusted EBITDA loss is expected to range between ($3.0) and ($3.3) million. Complete financial results for the fiscal third quarter ended June 30, 2026, will be released after the market close on August 13, 2026. A conference call to discuss the results will follow. Management Commentary "Over the course of the past quarter, we successfully navigated a number of headwinds stemming from factors largely outside of our control," said Richard Danforth, Genasys’ Chief Executive Officer. "Despite these challenges, the underlying fundamentals of our business remain strong, and we continue to expect a record year of revenue and profitability. "Fiscal third quarter revenue reflects timing rather than demand. Supply chain constraints associated with CROWS have since been resolved, and we expect the associated revenue to be recognized in the fiscal fourth quarter. In Puerto Rico, payments have started coming in. Our people and equipment are already on the island, and if payments keep pace, we're positioned to stay on schedule and complete the work planned for this fiscal year. With the CROWS constraint resolved and payments underway in Puerto Rico, we expect the fiscal fourth quarter to be the strongest in our company's history and our full year expectations remain intact. "From a working capital standpoint, our recently completed financing provides additional liquidity and flexibility to support execution against our backlog. With this strengthened foundation in place, we are equipped to execute on our large-scale projects, pursue growth opportunities in the pipeline, and close out the fiscal year from a position of strength." Conference call details Date: August 13, 2026Time: 4:30 p.m. Eastern / 1:30 p.m. PacificToll-Free Dial-In Number: (800) 715-9871 (U.S. Toll-Free)International Dial-In Number: +1 (646) 307-1963 (U.S. & International Toll)Webcast: https://app.webinar.net/Yer0OY4owvP Please dial in 10 minutes prior to the start time and tell the operator you are calling in for the Genasys Fiscal Third Quarter 2026 Financial Results Call. Questions to management may be submitted before the call by emailing them to [email protected]. A replay of the webcast will be available approximately four hours after the presentation through the Conference Call link on the Events & Presentations page of the Company’s website. About Genasys Inc. Genasys Inc. (Nasdaq: GNSS) is the global leader in Protective Communications®, providing the most comprehensive portfolio of preparedness, response, and analytics software and hardware solutions available. The company’s Long Range Acoustic Device® (LRAD®) and Protect Platform, which includes Genasys Protect® and Genasys Evertel®, are designed around one premise: ensuring organizations and public safety agencies are Ready when it matters®. Protecting people and saving lives for over 40 years, Genasys covers more than 155 million people in all 50 states and in over 100 countries worldwide. For more information, visit genasys.com. Forward-Looking Statements Except for historical information contained herein, the matters discussed (including with respect to the preliminary revenue, margins, loss and backlog figures; expected receipt of payments and work progress under our Puerto Rico EWS project; expected completion of the CROWS II order; expected execution on large-scale projects; pursuit of growth opportunities; strong fiscal year close; and expectations with respect to the fiscal year ending September 30, 2026) are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. You should not place undue reliance on these statements. We base these statements on particular assumptions that we have made in light of our industry experience, the stage of product and market development as well as our perception of historical trends, current market conditions, current economic data, expected future developments and other factors that we believe are appropriate under the circumstances. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those suggested in any forward-looking statement. The risks and uncertainties in these forward-looking statements include without limitation risks relating to continuous delays in receiving payment under, regulatory uncertainties surrounding, or disruptions in governmental support or funding of, the Puerto Rico project, our reliance on a limited number of customers, the likely need for additional capital, actual or perceived failures or breaches of our information and security systems, the effects of continued geopolitical unrest and regional conflicts, including the conflict in Iran and its effect on global oil supply and prices, continued funding of government spending, the timing of such funding, general economic and business conditions, including unforeseen weakness in the Company’s markets, competition, changes in technology and methods of marketing, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, market acceptance of the Company’s products, shortages in components or price increases that cannot be passed on to customers, inability to fully realize the expected benefits from acquisitions and restructurings or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, changes to export regulations, difficulties in retaining key employees and customers, changes in the market for microcap stocks regardless of growth and value and various other factors beyond our control. Risks and uncertainties are identified and discussed in our filings with the Securities and Exchange Commission. These forward-looking statements are based on information and management’s expectations as of the date hereof. Future results may differ materially from our current expectations. For more information regarding potential risks and uncertainties, see the "Risk Factors" section of the Company’s Form 10-K for the fiscal year ended September 30, 2025. Genasys Inc. disclaims any intent or obligation to publicly update or revise forward-looking statements, except as otherwise specifically stated. View source version on businesswire.com: https://www.businesswire.com/news/home/20260730955219/en/ Contacts Investor Relations ContactScott Liolios and Clay LioliosGateway Group, [email protected]

A quarter of clear momentum, marked by a return to profitability and gross margin over 63% SAN DIEGO, May 14, 2026--(BUSINESS WIRE)--Genasys Inc. (NASDAQ: GNSS), the global leader in Protective Communications™, today announced financial results for the Company’s fiscal 2026 second quarter ended March 31, 2026. Fiscal Q2 2026 Financial Summary Revenue of $15.5 million, versus $6.9 million in the fiscal 2025 second quarter Gross margin of 63.3%, versus 37.7% in the fiscal 2025 second quarter GAAP operating income of $1.3 million, versus a GAAP operating loss of ($6.3) million in the fiscal 2025 second quarter Adjusted EBITDA of $2.5 million, versus ($5.1) million in the fiscal 2025 second quarter GAAP net income of $0.7 million, versus ($6.1) million in the fiscal 2025 second quarter GAAP net income per share $0.02 basic and diluted, versus ($0.14) in the fiscal 2025 second quarter Recent Business Highlights and Developments Extended maturity of term loan to July 13, 2026, aligning the maturity with expected contractual cash receipts, including collections associated with the Puerto Rico Dams Early Warning System (EWS) project. Initial $9.0 million LRAD® order for Common Remotely Operated Weapon Station (CROWS) II Technical Refresh program has begun production and is expected to be completed in fiscal 2026. Continued delivery and execution of the Puerto Rico EWS project, with Groups 3, 5, and 6 completed and Group 1 on track for completion next month. Expanded Genasys Protect® coverage with five new California municipal wins (San Jose, Palo Alto, Milpitas, Burbank, Santa Clara Fire District), lifting California coverage past 25.5 million residents and demonstrating accelerating SaaS sales velocity. Deepened Arizona footprint with paired Acoustics orders from the City of Sedona and Coconino County, with each deployment strengthening customer relationships and increasing the likelihood of follow-on orders. Two counties, Latah County (Idaho) and Davidson County (North Carolina), replaced their legacy emergency warning systems with Genasys Protect, expanding the Company’s geographic footprint. Secured a $2.0 million LRAD order from the Republic of Singapore Navy for unmanned surface vessels, broadening Genasys’ global defense customer base. Management Commentary and Outlook "The fiscal second quarter marked an important inflection point, headlined by a return to net income profitability and a roughly 63% gross margin," said Richard Danforth, Genasys’ Chief Executive Officer. "Consistent delivery in Puerto Rico, combined with a standout bookings quarter in software, including new-state wins in Idaho and North Carolina, reflect sustained operational discipline and accelerating sales traction. The hard work from our team is beginning to show in our financial results, and we expect this progress to continue, supported by our roughly $58 million backlog. "On the balance sheet front, we expect to collect receivables associated with the Puerto Rico EWS project in the near term, subject to the administrative disbursement processes, allowing us to retire the remaining balance of our outstanding debt. At that point, with sufficient cash on hand to support day-to-day operations, the Company is expected to emerge with a materially cleaner balance sheet. Combined with sustained software momentum across the country, consistent hardware execution, and an active pipeline, the second half of the year is shaping up to be a defining stretch for the Company. "For fiscal 2026, we expect to deliver record revenue, gross margins over 50%, and net income profitability. Furthermore, our pipeline remains robust, which is a direct reflection of the sustained demand today's landscape is creating for our products. Overall, we remain focused on building upon this momentum, winning the opportunities in our pipeline, and delivering long-term value for our shareholders." Fiscal Q2 2026 Financial Results Fiscal second quarter revenue was $15.5 million, an increase of 123.7% from $6.9 million in the prior year’s quarter. Gross profit margin was 63.3%, compared with 37.7% in the second quarter of fiscal 2025. The increase in gross profit margin was primarily driven by the increase in hardware revenue. Operating expenses decreased 3.7% to $8.5 million from $8.9 million in the fiscal second quarter 2025. Selling, general and administrative expenses decreased 6.6% to $6.2 million from $6.6 million in the fiscal second quarter 2025. Research and development expenses increased 5.1% year-over-year to $2.3 million from $2.2 million in the fiscal second quarter 2025. GAAP net income in the quarter was $0.7 million, or $0.02 per share, basic and diluted, compared with a GAAP net loss of ($6.1) million, or ($0.14) per share, in the second quarter of fiscal 2025. The improvement in GAAP net income (loss) was primarily driven by the increase in revenues and reductions in operating expenses. Adjusted EBITDA was $2.5 million for the second quarter of fiscal 2026, compared with ($5.1) million for the prior fiscal year period. Cash, cash equivalents, and marketable securities totaled $1.0 million as of March 31, 2026, compared to $8.0 million at September 30, 2025. Subsequent to quarter end, the Company extended the maturity of its term loan from May 13, 2026 to July 13, 2026, aligning the maturity with expected contractual cash receipts, including collections associated with the Puerto Rico EWS project, and providing additional flexibility to support ongoing operations. We include in this press release adjusted EBITDA, which is a non-GAAP financial measure and which we believe provides helpful information to investors with respect to evaluating the Company’s performance. Adjusted EBITDA represents our net income (loss) before interest income, interest expense, income tax expense (benefit), depreciation and amortization expense, share-based compensation, fair value measurements of our term loans and warrants, and other items that we do not consider indicative of our core operating performance. Adjusted EBITDA is a measure used by management to understand and evaluate our core operating performance and trends and to generate future operating plans, make strategic decisions regarding allocation of capital and invest in initiatives that are focused on cultivating new markets for our solutions. In particular, the exclusion of certain expenses in calculating adjusted EBITDA facilitates comparisons of our operating performance on a period-to-period basis. However, since adjusted EBITDA is a non-GAAP financial measure, it is not necessarily comparable with adjusted EBITDA used by other companies. Adjusted EBITDA has limitations and should not be considered in isolation or a substitute for performance measures calculated under GAAP, including net income (loss). Webcast and Conference Call Details Management will host a conference call to discuss the financial results for the fiscal second quarter 2026 this afternoon at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time. To access the conference call, dial toll-free (800) 715-9871, or international at +1 (646) 307-1963. A webcast will also be available at the following link: https://app.webinar.net/Gv12AZkr3Bj Questions to management may be submitted before the call by emailing them to: [email protected]. A replay of the webcast will be available approximately four hours after the presentation on the Events page of the Company’s website. About Genasys Inc. Genasys is the global leader in Protective Communications™, providing the most comprehensive portfolio of preparedness, response, and analytics software and hardware solutions available. The company’s Long Range Acoustic Device® (LRAD®) and Protect Platform, which includes Genasys Protect® and Genasys Evertel®, are designed around one premise: ensuring organizations and public safety agencies are Ready when it matters®. Protecting people and saving lives for over 40 years, Genasys covers more than 155 million people in all 50 states and in over 100 countries worldwide. For more information, visit genasys.com. Forward-Looking Statements Except for historical information contained herein, the matters discussed are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. You should not place undue reliance on these statements. We base these statements on particular assumptions that we have made in light of our industry experience, the stage of product and market development as well as our perception of historical trends, current market conditions, current economic data, expected future developments and other factors that we believe are appropriate under the circumstances. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those suggested in any forward-looking statement. The risks and uncertainties in these forward-looking statements include without limitation risks relating to receiving timely payment under, regulatory uncertainties surrounding, or disruptions in governmental support or funding of, the Puerto Rico project, our reliance on a limited number of customers, the likely need for additional capital, actual or perceived failures or breaches of our information and security systems, continued funding of government spending, the timing of such funding, general economic and business conditions, including unforeseen weakness in the Company’s markets, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, market acceptance of the Company’s products, shortages in components or price increases that cannot be passed on to customers, inability to fully realize the expected benefits from acquisitions and restructurings or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, changes to export regulations, difficulties in retaining key employees and customers, changes in the market for microcap stocks regardless of growth and value and various other factors beyond our control. Risks and uncertainties are identified and discussed in our filings with the Securities and Exchange Commission. These forward-looking statements are based on information and management’s expectations as of the date hereof. Future results may differ materially from our current expectations. For more information regarding potential risks and uncertainties, see the "Risk Factors" section of the Company’s Form 10-K for the fiscal year ended September 30, 2025. Genasys Inc. disclaims any intent or obligation to publicly update or revise forward-looking statements, except as otherwise specifically stated. View source version on businesswire.com: https://www.businesswire.com/news/home/20260514954641/en/ Contacts Investor Contact Scott Liolios and Clay Liolios Gateway Group, Inc. 949-574-3860 [email protected]

This article first appeared on GuruFocus. Release Date: May 14, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Genasys Inc (NASDAQ:GNSS) achieved GAAP net income profitability and strong gross margins, indicating disciplined execution and operational efficiency. The company reported a significant year-over-year revenue increase of 124%, driven by both hardware and software sales. Genasys Inc (NASDAQ:GNSS) successfully completed several phases of the Puerto Rico Dam Early Warning System project, contributing $10.3 million to revenue. The company is experiencing strong demand for its software solutions, with pipeline growth supported by recent wins in new geographies. Genasys Inc (NASDAQ:GNSS) has a robust backlog of $58 million, reflecting strong execution and continued replenishment from new bookings. Payments from the Puerto Rico project have been slower than expected, affecting cash flow and necessitating a 60-day extension for debt repayment. The company's cash position is relatively low, with only $1 million in cash equivalents and marketable securities as of March 31, 2026. The hardware revenue growth is heavily reliant on the Puerto Rico project, which may pose a risk if further delays occur. Operating expenses, although decreased by 4% year-over-year, remain significant at $8.5 million for the quarter. The extension of the debt maturity reflects timing issues, indicating potential challenges in aligning cash receipts with financial obligations. Warning! GuruFocus has detected 6 Warning Signs with GNSS. Is GNSS fairly valued? Test your thesis with our free DCF calculator. Q: Can you provide details on the CROWS shipments and expectations for the second half of the year? Also, what larger opportunities are in the pipeline? A: We began production of CROWS in Q2, with deliveries expected largely in Q3 and Q4. Regarding larger opportunities, we have a significant international opportunity at the final award stage, and we expect to hear about it in the coming days. - Richard Danforth, CEO Q: What should we expect for gross margins and revenue in the third and fourth quarters? A: Our current gross margin is 55.3%, influenced by product mix. We expect Q3 revenue to be higher than Q2, with a potential slight decrease in Q4. - Cassandra Monteon, CFO Q: Can you elaborate on the sales cycle for the five new wins in California? A: The five wins are from Santa Clara County, where each community is now purchasing Genesis Protect individually. These are repeat customers, not new ones. - Richard Danforth, CEO Q: How is the sales cycle for the software portion of the business? A: The pipeline is strong, with a focus on larger deals that can significantly impact our business. We expect some closures in the second half of the year. - Richard Danforth, CEO Q: What is the current competitive landscape like for Genasys? A: We haven't noticed significant changes in competition. Our offerings, such as Genesis Protect and Evertel, are unique and differentiated, placing us in a strong market position. - Richard Danforth, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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. Achieved GAAP net income profitability through disciplined execution and a significant organizational rightsizing effort that reduced operating expenses. Revenue growth of 124% year-over-year was primarily driven by the $10.3 million contribution from the Puerto Rico Dams Early Warning System project. Gross margins expanded to 63.3% due to a favorable product mix and the recognition of high-margin revenue as technical risks in the Puerto Rico project were retired. The hardware segment is benefiting from a multiyear tailwind in critical infrastructure protection, specifically within the defense, energy, and utility sectors. Software growth is being sustained by inbound interest for Genasys Protect, which differentiates itself by integrating mass notification with situational awareness and mapping. Management successfully extended debt maturity by 60 days to align with the timing of expected cash receipts from the Puerto Rico project. Management expects to achieve record revenue for fiscal 2026, supported by a $58 million backlog and a strong second-half pipeline. Annualized gross margins are projected to remain above 50%, though specific quarterly margins will fluctuate based on project mix and hardware delivery timing. The CROWS-AHD technology refresh program is expected to complete its initial $9 million order within the fiscal year, with a total addressable market estimated at $175 million. The company anticipates receiving orders for 26 additional LRAD 950 NXT units from a major U.S. utility following a successful initial installation. Guidance assumes the collection of approximately $13 million in outstanding Puerto Rico receivables to retire existing debt by the July 13, 2026, maturity date. The 60-day debt extension reflects a timing mismatch between project execution and payment processing in Puerto Rico, rather than underlying business performance. Technical risks for the Puerto Rico project have been fully retired, shifting management's focus entirely to execution and collection of remaining balances. Operating expenses have been stabilized at approximately $8.5 million per quarter following the completion of structural rightsizing. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management is currently in the final stages of a competitive award process for an international project comparable in scale to the Puerto Rico contract. A decision on this award is expected within the coming days. Q3 revenue is expected to be sequentially higher than Q2, with a potential slight decrease in Q4. Margins will remain sensitive to the 'mix' of hardware versus software, noting that Puerto Rico hardware carries zero margin until project milestones trigger profit recognition. Recent wins in California represent repeat customers transitioning from county-level contracts to individual municipal contracts. Sales cycles for software are lengthening as the team pivots toward larger, more complex deals that have a greater impact on the bottom line.

Genasys (GNSS) came out with quarterly earnings of $0.02 per share, beating the Zacks Consensus Estimate of a loss of $0.03 per share. This compares to a loss of $0.14 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +166.67%. A quarter ago, it was expected that this developer of directed sound technologies used by the military and police would post a loss of $0.01 per share when it actually produced a loss of $0.02, delivering a surprise of -100%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Genasys, which belongs to the Zacks Communication - Network Software industry, posted revenues of $15.51 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.01%. This compares to year-ago revenues of $6.93 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Genasys shares have lost about 13.8% since the beginning of the year versus the S&P 500's gain of 8.8%. While Genasys has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Genasys was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.03 on $19.2 million in revenues for the coming quarter and $0.02 on $71.3 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Communication - Network Software is currently in the top 12% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Analog Devices (ADI), another stock in the broader Zacks Computer and Technology sector, has yet to report results for the quarter ended April 2026. The results are expected to be released on May 20. This semiconductor maker is expected to post quarterly earnings of $2.88 per share in its upcoming report, which represents a year-over-year change of +55.7%. The consensus EPS estimate for the quarter has been revised 2.2% higher over the last 30 days to the current level. Analog Devices' revenues are expected to be $3.51 billion, up 33.1% from the year-ago quarter. 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 Genasys Inc. (GNSS) : Free Stock Analysis Report Analog Devices, Inc. (ADI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research