Genasys (GNSS) Q2 2026 earnings summary

Executive summary

• Achieved GAAP net income profitability in fiscal Q2 2026, with net income of $723,000, reversing a prior year loss of $6.1 million, and record gross margins driven by disciplined execution and operational right-sizing.

• Revenue reached $15.5 million, up 124% year-over-year, led by strong hardware sales, especially from the Puerto Rico Dam Emergency Warning System project.

• Hardware revenue surged 180% year-over-year, while software/SaaS revenue grew 6%, with expanding demand for Genasys Protect and Evertel.

• Gross profit margin expanded to 63.3%, up from 37.7% in the prior year, driven by favorable product mix and Puerto Rico project revenue.

• Backlog ended Q2 at $58 million, reflecting robust execution and replenishment from new bookings.

Financial highlights

• Q2 2026 revenue was $15.5 million, gross profit $9.8 million, net income $723,000, and adjusted EBITDA $2.5 million, compared to a net loss of $6.1 million and negative EBITDA of $5.1 million in the prior year.

• Gross margin for Q2 was 63.3%, up from 37.7% year-over-year.

• Operating expenses were $8.5 million, down 4% year-over-year and flat sequentially.

• Cash and equivalents at quarter-end were $1 million, down from $8 million at September 30, 2025.

• Six months ended March 31, 2026: revenue $32.6 million, gross profit $18.0 million, net loss $94,000.

Outlook and guidance

• Management expects to deliver gross margins over 50% on an annualized basis and forecasts both operating income and GAAP net income profitability for the full year.

• Q3 revenue is expected to be higher than Q2, with Q4 slightly lower.

• 93% of remaining Puerto Rico project performance obligations to be recognized over the next 12 months.

• Sufficient capital is expected to fund operations for the next twelve months, assuming continued project collections.

• Pipeline for both hardware and software remains strong, with several late-stage opportunities expected to drive future growth.