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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 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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