Genasys (NASDAQ:GNSS) Releases Earnings Results, Misses Expectations By $0.08 EPS

Genasys (NASDAQ:GNSS) posted its quarterly earnings data on Thursday. The company reported ($0.10) EPS for the quarter, missing the consensus estimate of ($0.02) by ($0.08), FiscalAI reports. Genasys had a negative net margin of 13.44% and a negative return on equity of 314.53%. The firm had revenue of $7.29 million during the quarter, compared to analysts’ expectations of $15.47 million.

Here are the key takeaways from Genasys’ conference call:

• Third-quarter revenue fell to $7.3 million from $9.9 million year over year, primarily due to a CROWS supply-chain delay and a temporary pause in Puerto Rico work. The company said both issues were timing-related and not demand-related.
• Management maintained its outlook for record fiscal 2026 revenue and profitability, citing gross margins above 50%, improving operating leverage, resumed Puerto Rico collections and a 12-month backlog that rose to approximately $69 million.
• Software revenue increased 21% year over year to $2.7 million, while Genasys Protect expanded to cover roughly 15% of the U.S. population and 20% of its land area. New county wins and integrations with CAL FIRE, Intterra and Peregrine are intended to strengthen adoption and retention.
• Hardware demand is accelerating in critical infrastructure, with a utility placing a $2.4 million LRAD 950NXT order after prior purchases totaling about $2 million. Management described a growing pipeline spanning substations, dams, ports, data centers and defense customers.
• Liquidity remains a concern, with cash, cash equivalents and marketable securities declining to $3.1 million from $8 million at fiscal year-end and adjusted EBITDA still negative at $3.1 million. The company extended its term loan maturity to July 2027 to provide additional working-capital flexibility.

Genasys Price Performance

NASDAQ:GNSS traded up $0.01 during mid-day trading on Thursday, hitting $1.71. 145,075 shares of the stock traded hands, compared to its average volume of 67,915. The business’s 50-day moving average price is $1.73 and its 200 day moving average price is $1.85. Genasys has a 12-month low of $1.40 and a 12-month high of $2.70.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on the stock. Wall Street Zen raised shares of Genasys to a “hold” rating in a report on Sunday, July 12th. Ascendiant Capital Markets upped their price target on shares of Genasys from $5.50 to $6.00 and gave the company a “buy” rating in a research note on Tuesday, June 2nd. Weiss Ratings restated a “sell (e+)” rating on shares of Genasys in a research report on Friday, August 7th. Finally, Lake Street Capital set a $3.00 price target on Genasys in a report on Friday, July 31st. Two investment analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Genasys presently has a consensus rating of “Hold” and an average price target of $4.50.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. Marshall Wace LLP increased its stake in Genasys by 398.4% in the 4th quarter. Marshall Wace LLP now owns 63,961 shares of the company’s stock worth $138,000 after acquiring an additional 51,127 shares during the last quarter. HRT Financial LP bought a new position in shares of Genasys in the fourth quarter worth approximately $79,000. Goldman Sachs Group Inc. increased its position in shares of Genasys by 36.1% in the fourth quarter. Goldman Sachs Group Inc. now owns 119,815 shares of the company’s stock worth $257,000 after purchasing an additional 31,750 shares during the last quarter. Susquehanna International Group LLP raised its stake in Genasys by 76.6% in the third quarter. Susquehanna International Group LLP now owns 183,233 shares of the company’s stock valued at $449,000 after purchasing an additional 79,493 shares in the last quarter. Finally, XTX Topco Ltd raised its stake in Genasys by 170.6% in the second quarter. XTX Topco Ltd now owns 51,516 shares of the company’s stock valued at $89,000 after purchasing an additional 32,481 shares in the last quarter. 40.04% of the stock is currently owned by hedge funds and other institutional investors.

About Genasys

Genasys, Inc (NASDAQ: GNSS) specializes in mission-critical communications and emergency mass notification solutions designed to keep organizations and communities connected during high-stress events. The company’s core offerings include a multi-channel alerting platform that integrates SMS, email, voice, sirens, public address systems and social media outlets. By combining hardware and cloud-based software, Genasys delivers robust, scalable systems that can push targeted warnings and status updates to millions of recipients in seconds.

In addition to its flagship Smart Mass Notification System, Genasys provides hardened private LTE networks, satellite communications terminals and interoperable radio systems tailored for government agencies, defense customers, utilities, energy producers and remote industrial operations.