Geospace Technologies (GEOS) Q1 2026 earnings summary

Executive summary

• Revenue for Q1 2026 was $25.6 million, down 31% year-over-year, mainly due to lower Energy Solutions sales and rentals, with all segments experiencing declines.

• Net loss for the quarter was $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, driven by lower revenue and gross profit.

• Gross profit fell 86.6% to $2.7 million, reflecting the absence of a prior year high-margin sale and lower rental fleet utilization.

• Management cited economic uncertainty, inflation, tariffs, and supply chain challenges as key headwinds.

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

Financial highlights

• Revenue for Q1 2026 was $25.6 million, down from $37.2 million in Q1 2025.

• Net loss of $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 totaled $10.6 million as of December 31, 2025; working capital was $52.2 million.

Segment performance

• Smart Water segment revenue was $5.8 million, down 21% year-over-year due to lower demand and seasonal effects.

• Energy Solutions segment revenue was $14.6 million, down 40% year-over-year, 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 lower sensor demand partially offset by increased contract manufacturing.

• Operating losses were reported across all segments, with Energy Solutions posting the largest loss at $3.4 million.

• Geovox Security acquisition has driven increased customer interest, with first shipments in Q1 and expectations for a couple hundred units deployed in the year.