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Genasys (GNSS) investor relations material

Genasys Q3 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2025 earnings summary14 Aug, 2025

Executive summary

  • Fiscal Q3 2025 revenue rose 38% year-over-year to $9.9M, driven by the Puerto Rico Early Warning System project and hardware growth; software revenue increased 7% on recurring contracts.

  • Net loss for the quarter was $6.5M, a slight improvement from $6.7M a year ago; adjusted EBITDA was negative $4.8M.

  • Backlog exceeded $60M at quarter-end, with strong contributions from hardware and software segments.

  • Gross margin declined to 26.3% from over 50% a year ago, mainly due to project accounting, hardware mix, and tariffs.

  • Cost reduction actions are expected to save $2.5M annually starting 1Q 2026.

Financial highlights

  • Total revenue for the nine months ended June 30, 2025 was $23.7M, up 37% year-over-year.

  • Hardware revenue rose 41–50% year-over-year, with $4.3M from Puerto Rico in Q3; software revenue up 7% in Q3 and 30% for the nine months.

  • Gross profit for the nine months was $8.4M, up 13% from the prior year, with software margins offsetting lower hardware margins.

  • Operating expenses were $8.5M in Q3, down from $8.9M in March and $9.1M a year ago.

  • Cash and equivalents at quarter-end were $5.5M, down from $7.2M in March and $13.1M at September 2024.

Outlook and guidance

  • Q4 is expected to see a significant increase in revenue and profit from Puerto Rico, with improving gross margins.

  • Puerto Rico project expected to generate $15–20M in revenue for fiscal 2025, with profit recognition accelerating in fiscal 2026.

  • Hardware backlog, excluding Puerto Rico, will exceed $16M with the anticipated US Army CROWS AHD order.

  • Operating expenses are expected to remain consistent with Q3, with annualized savings of $2.5M from recent cost reductions.

  • Management believes current capital is sufficient for the next twelve months, but notes potential need for additional funding if conditions change.

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Frequently asked questions

Genasys Inc develops and supplies critical communications systems and technologies for emergency warning and mass notification applications. Its products are used by governments, businesses, and public safety agencies globally. The company is headquartered in San Diego, California, and its shares are listed on the NASDAQ.

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