Genasys (GNSS) Q3 2026 earnings summary

Executive summary

• Fiscal Q3 2026 revenue was $7.3 million, down from $9.9 million year-over-year due to timing issues and supply chain constraints, both now resolved.

• Gross margin improved to 57.1% from 26.3% year-over-year, driven by a higher mix of software revenue.

• Software revenue grew 21% year-over-year and 12% sequentially, with notable contract wins and platform integrations expanding reach and adoption.

• Backlog exceeded $69 million entering Q4, providing strong revenue visibility and supporting expectations for a record year in revenue and profitability.

• Net loss narrowed to $4.7 million from $6.5 million in the prior year quarter, and adjusted EBITDA loss improved to $3.1 million from $4.8 million year-over-year.

Financial highlights

• Q3 2026 revenue: $7.3 million (down from $9.9 million year-over-year).

• Software revenue: $2.7 million, up 21% year-over-year and 12% sequentially.

• Gross profit margin: 57.1% (up from 26.3% year-over-year).

• GAAP net loss: $4.7 million ($0.10 per share), improved from $6.5 million loss ($0.14 per share) year-over-year.

• Cash, equivalents, and marketable securities: $3.1 million as of June 30, 2026, down from $8.0 million at September 30, 2025.

Outlook and guidance

• Management expects fiscal 2026 to be a record year for both revenue and profitability.

• Puerto Rico project expected to contribute meaningfully to Q4 revenue as collections and work resume.

• Hardware and software pipelines remain strong, with growing demand and expanding market reach.