Genasys Reports Q4 Revenue of $17.0M, Below Estimates
Reports Q4 revenue $17.0M, two estimates $19.9M. "The fourth quarter marked an inflection point for Genasys," said Richard Danforth, Genasys' Chief Executive Officer. "With the benefits of our strategic efforts starting to materialize, we delivered a significant increase in revenue and returned to positive operating income and adjusted EBITDA*. Our gross margin returned to 50%, which we expect to be a more normalized level going forward. Furthermore, we expanded our backlog, as we continued to win new deals in both our hardware and software businesses. This is an exciting phase for Genasys. We are executing on the large opportunities in our backlog and are beginning to build momentum in our pipeline across all business verticals. Demand for our technology continues to build globally across defense, public safety, emergency warning, and other critical markets. Success in Puerto Rico has accelerated interest from international governments seeking similar solutions, and we believe these Early Warning System projects will become an important growth driver as we move through 2026 and 2027. Additionally, our LRAD business continues to be validated with a consistent flow of new and follow-on orders across various end markets. On the software side, governments and law enforcement agencies are increasingly turning to Genasys to strengthen their crisis communication processes, and we expect ongoing growth in our software offerings. Entering fiscal 2026 with a strong backlog, we expect sustained year-over-year revenue growth with gross margins near 50%. Overall, it was a successful quarter for Genasys, and we are confident we can build on this positive performance and drive meaningful value creation for our shareholders."
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- Board Transition: Genasys announced that Richard Osgood III will transition to the Strategic Advisory Board after the fiscal 2026 annual meeting, reflecting the company's high regard for his 12 years of board service, which is expected to continue leveraging his global business perspective and strategic insights.
- Leadership Continuity: Osgood has served on the board since 2013 and as chairman since 2021, and his leadership experience will continue to support Genasys' development of protective communication solutions, ensuring the company's leadership position in the industry.
- Strategic Advisory Role: Osgood's capital markets experience from Wedbush Securities will provide crucial support for Genasys' strategic decisions, helping the company maintain competitiveness in future market challenges.
- Company Vision: Genasys is committed to protecting and saving lives, covering over 155 million people, and Osgood's continued involvement will further drive the company's global business expansion and technological innovation.
- Significant Revenue Growth: Genasys reported fourth-quarter revenue of $17.0 million, a 152.6% increase from $6.7 million in the same quarter last year, indicating substantial progress in both hardware and software sectors, thereby enhancing market competitiveness.
- Gross Margin Recovery: The company's gross margin improved to 50.3%, up from 40.8% year-over-year, reflecting increased hardware revenue and effective cost control measures, which are expected to lay a solid foundation for future profitability.
- Operational Efficiency Improvement: GAAP operating income reached $1.3 million, reversing a loss of $7.1 million in the prior year, showcasing the company's success in revenue growth and cost management, which boosts investor confidence.
- Strategic Partnership Expansion: Genasys entered into a strategic partnership with Julie Parker Communications to enhance public safety communication capabilities by combining top-tier crisis and media expertise, which is expected to drive ongoing growth in its software offerings.
Quarterly Performance: Genasys (GNSS) reported a quarterly loss of $0.03 per share, matching expectations, and showing improvement from a loss of $0.26 per share a year ago, with revenues of $17.03 million, missing estimates by 14.22%.
Stock Outlook: The company's stock has underperformed, losing about 9.2% this year compared to the S&P 500's 16.4% gain, and currently holds a Zacks Rank #3 (Hold), indicating expected performance in line with the market.
Earnings Estimates: The consensus EPS estimate for the upcoming quarter is $0.02 on revenues of $20.4 million, with a fiscal year estimate of $0.12 on $77.75 million in revenues, reflecting mixed trends in estimate revisions.
Industry Context: Genasys operates in the Communication - Network Software industry, which is currently ranked in the bottom 17% of Zacks industries, suggesting that broader industry performance may significantly impact the stock's future.

Earnings Reports Overview: Several companies, including Casey's General Stores, AeroVironment, and Braze, are set to report earnings after hours on December 9, 2025, with varying forecasts and performance expectations.
Casey's General Stores (CASY): Expected to report earnings of $4.92 per share, reflecting a 1.44% increase year-over-year, and has consistently beaten earnings expectations.
AeroVironment (AVAV): Forecasted earnings of $0.85 per share, indicating an 80.85% increase compared to the previous year, with a higher Price to Earnings ratio than the industry average.
Braze (BRZE) and Others: Braze anticipates a loss of $-0.27 per share, while Dave & Buster's and Cracker Barrel expect significant decreases in earnings, highlighting a challenging quarter for some companies.

Partnership Announcement: Genasys Inc. has formed a strategic partnership with Julie Parker Communications to enhance public safety communication through a combination of secure communication tools and media expertise.
Collaboration Goals: The partnership aims to provide public safety agencies with comprehensive tools and training to improve internal coordination, transparency, and community engagement.
Expertise and Experience: Both organizations bring extensive experience in public safety communication, with Genasys focusing on protective communications and JPC specializing in crisis communication and media relations.
Commitment to Public Safety: The collaboration emphasizes the importance of trust, timely information, and modern communication strategies to better connect public safety agencies with their teams and the communities they serve.

Genasys Acoustics Installation: Genasys Inc. has completed the installation of Acoustics systems on the Alabama-Coushatta Tribe of Texas reservation, integrating it with Genasys Protect software for autonomous weather alerts from the National Weather Service.
Enhanced Emergency Communication: The Genasys Protect platform offers multi-channel emergency notifications and geo-targeted evacuation management, aiming to improve public safety and response effectiveness during emergencies, as highlighted by recent natural disasters.





