Geospace Technologies (GEOS) investor relations material

Executive summary

• Fourth quarter revenue was $30.7 million, down from $35.4 million year-over-year; net loss narrowed to $9.1 million from $12.9 million.

• Fiscal year 2025 revenue was $110.8 million, a decrease from $135.6 million in the prior year; net loss widened to $9.7 million from $6.6 million.

• Smart Water segment achieved double-digit annual revenue growth for the fourth consecutive year, driven by Hydrocon connectors and Aquana products.

• Energy Solutions segment faced lower revenue due to reduced offshore exploration, increased competition, and oil price volatility, but secured a major contract with Petrobras and completed significant Pioneer land node sales.

• Management emphasized diversification, innovation, and growth through acquisition, including the acquisition of Geovox Security.

Financial highlights

• Gross profit for the year was $32.9 million, down from $52.6 million year-over-year.

• Operating loss for the year was $11.3 million, compared to operating income of $7.1 million in the prior year.

• Cash and cash equivalents at year-end were $26.3 million, up from $6.9 million the previous year.

• Net cash used in operating activities was $22.2 million; investing activities provided $42.7 million, mainly from asset sales.

• Q4 revenue declined to $30.7 million from $35.4 million year-over-year; net loss improved to $9.1 million from $12.9 million.

Outlook and guidance

• No specific revenue or earnings guidance provided.

• Management anticipates continued demand for Hydrocon and Aquana solutions in Smart Water, with international expansion plans.

• Energy Solutions segment faces short-term uncertainty due to low oil prices, but long-term demand is expected to improve.

• Intelligent Industrial segment expected to benefit from new product lines and acquisitions, aiming for more recurring revenue.

• Backlog positions the company strongly for the next fiscal year.