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

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

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 Stock Performance

Shares of GNSS traded up $0.02 during midday trading on Friday, hitting $1.73. 102,726 shares of the company traded hands, compared to its average volume of 130,378. The firm has a 50 day moving average of $1.73 and a 200-day moving average of $1.85. Genasys has a 52 week low of $1.40 and a 52 week high of $2.70. The stock has a market cap of $78.78 million, a price-to-earnings ratio of -10.18 and a beta of 0.73.

Analyst Ratings Changes

Several research analysts recently commented on the company. Lake Street Capital set a $3.00 price target on Genasys in a research report on Friday, July 31st. Weiss Ratings reissued a “sell (e+)” rating on shares of Genasys in a report on Friday, August 7th. Wall Street Zen upgraded shares of Genasys to a “hold” rating in a report on Sunday, July 12th. Finally, Ascendiant Capital Markets lifted their target price on shares of Genasys from $5.50 to $6.00 and gave the stock a “buy” rating in a report on Tuesday, June 2nd. Two analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, Genasys currently has a consensus rating of “Hold” and a consensus target price of $4.50.

Hedge Funds Weigh In On Genasys

A number of hedge funds have recently made changes to their positions in the company. HRT Financial LP purchased a new position in Genasys during the fourth quarter worth about $79,000. XTX Topco Ltd lifted its holdings in Genasys by 170.6% during the 2nd quarter. XTX Topco Ltd now owns 51,516 shares of the company’s stock worth $89,000 after buying an additional 32,481 shares during the last quarter. Marshall Wace LLP increased its holdings in shares of Genasys by 398.4% in the 4th quarter. Marshall Wace LLP now owns 63,961 shares of the company’s stock valued at $138,000 after acquiring an additional 51,127 shares during the last quarter. Goldman Sachs Group Inc. lifted its stake in Genasys by 114.0% in the first quarter. Goldman Sachs Group Inc. now owns 87,213 shares of the company’s stock valued at $198,000 after buying an additional 46,452 shares during the last quarter. Finally, Jane Street Group LLC boosted its holdings in shares of Genasys by 126.2% in the first quarter. Jane Street Group LLC now owns 97,618 shares of the company’s stock valued at $222,000 after acquiring an additional 54,461 shares during the period. Institutional investors and hedge funds own 40.04% of the company’s stock.

Genasys Company Profile

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.