Geospace Technologies (GEOS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $25.6 million, down 31% year-over-year, resulting in a net loss of $9.8 million or $(0.76) per diluted share, as all segments experienced declines due to economic uncertainty, inflation, tariffs, and supply chain challenges.

• Gross profit dropped 86.6% to $2.7 million, with operating expenses rising 5.1% to $12.9 million, mainly from higher sales and marketing costs and contingent consideration changes.

• Management emphasized ongoing investment in strategic initiatives, technology, and geographic expansion to drive long-term growth and value.

• The company maintained a strong balance sheet with $10.6 million in cash and no debt at quarter-end.

• Acquisition of GeoVox Security and launch of recurring revenue models are expected to support future growth.

Financial highlights

• Q1 2026 revenue: $25.6 million, down from $37.2 million year-over-year.

• Net loss: $9.8 million, or $(0.76) per diluted share, compared to net income of $8.4 million, or $0.65 per diluted share, in the prior year.

• Gross profit: $2.7 million, down from $20.1 million year-over-year.

• Operating loss: $10.2 million, compared to operating income of $7.8 million in the prior year.

• Cash and cash equivalents: $10.6 million at quarter-end.

Segment performance

• Smart Water segment revenue was $5.8 million, down 21% year-over-year, with an operating loss of $0.8 million due to lower demand and higher R&D costs.

• Energy Solutions segment revenue was $14.6 million, down 40% year-over-year, with an operating loss of $3.4 million, impacted by lower OBX rental fleet utilization and absence of a large prior-year sale.

• Intelligent Industrial segment revenue was $5.1 million, down 8% year-over-year, with an operating loss of $0.8 million, as lower sensor demand was partially offset by increased contract manufacturing.

• Acquisition of GeoVox Security drove increased customer interest and first shipments in Q1.

• Operating losses were reported across all segments, with Energy Solutions posting the largest loss.