Genasys (GNSS) investor relations material

Executive summary

• Revenue reached $17.1 million in Q1 fiscal 2026, up 146% year-over-year, driven by strong hardware sales and major project execution, especially the Puerto Rico EWS Project.

• Net loss narrowed to $0.8 million from $4.1 million year-over-year, with adjusted EBITDA turning positive at $0.7 million.

• Appointed Cassandra Monteon as full-time CFO and fully repaid a $4 million term loan, strengthening financial leadership and the balance sheet.

• Cash and equivalents totaled $10.3 million at quarter-end after loan repayment.

Financial highlights

• Hardware revenue grew 220% year-over-year, with $9.6 million from the Puerto Rico project; software revenue was $2.3 million, flat year-over-year.

• Gross margin improved to 52% from 45.8% year-over-year, with gross profit at $8.9 million.

• Operating expenses decreased 6% year-over-year to $8.1–$8.5 million due to cost reduction initiatives.

• GAAP operating loss reduced to $0.4 million from $5.9 million prior year.

• Adjusted EBITDA was $0.7 million, a turnaround from a $4.8 million loss a year ago.

Outlook and guidance

• Management expects to achieve both operating and net income profitability for fiscal 2026, with gross margins targeted at 50%.

• 97% of remaining $35.3 million in performance obligations expected to be recognized within 12 months, mostly from the Puerto Rico EWS Project.

• Confident in delivering meaningful year-over-year revenue growth and expanding margins, supported by large-scale contracts and an expanding pipeline.

• Inflationary pressures and U.S. government funding uncertainties may impact future margins and revenue timing.