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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.Executive summary
Fiscal Q3 2025 revenue reached $9.9 million, up 42% sequentially and 38% year-over-year, driven by the Puerto Rico Early Warning System project contributing $4.3 million and hardware growth.
Net loss for the quarter was $6.5 million, a slight improvement from $6.7 million in the prior year; adjusted EBITDA was negative $4.8 million.
Software pipeline is at an all-time high, with significant growth east of the Rockies, but bookings slowed due to federal funding delays.
12-month backlog exceeded $60 million at the end of June, not including ARR from Puerto Rico or CROWS-related revenue.
Cost reduction actions are expected to save $2.5 million annually starting 1Q 2026.
Financial highlights
Hardware revenues grew approximately 50% year-over-year; software revenues increased 7% year-over-year but were flat sequentially.
Gross profit margin for Q3 was 26.3%, down from 52.8% a year ago, due to project accounting, hardware mix, and higher tariffs.
Operating expenses were $8.5 million, down from $8.9 million in the prior quarter and $9.1 million year-over-year.
GAAP operating loss was $5.9 million; adjusted EBITDA was negative $4.8 million; GAAP net loss was $6.5 million.
Cash, cash equivalents, and marketable securities at quarter-end were $5.5 million, down from $7.2 million in March and $13.1 million in September.
Outlook and guidance
Q4 expected to see significant increases in revenue and profit from Puerto Rico, with projected FY25 Puerto Rico revenues of $15–$20 million.
Gross margins anticipated to improve as Puerto Rico project progresses; operating expenses to remain consistent.
Hardware backlog, excluding Puerto Rico, will exceed $16 million with the anticipated US Army CROWS AHD order.
Software deal conversions expected to improve as federal funding access normalizes.
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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