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

Genasys (NASDAQ:GNSS) announced 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 for the quarter, compared to the consensus estimate 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

Shares of NASDAQ:GNSS traded up $0.01 during midday trading on Thursday, reaching $1.71. 145,075 shares of the company were exchanged, compared to its average volume of 67,915. The business’s fifty day moving average is $1.73 and its two-hundred day moving average is $1.85. Genasys has a one year low of $1.40 and a one year high of $2.70.

Institutional Trading of Genasys

Several hedge funds have recently bought and sold shares of the stock. Goldman Sachs Group Inc. boosted its holdings in shares of Genasys by 114.0% during the 1st quarter. Goldman Sachs Group Inc. now owns 87,213 shares of the company’s stock valued at $198,000 after purchasing an additional 46,452 shares during the last quarter. Jane Street Group LLC increased 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 worth $222,000 after purchasing an additional 54,461 shares during the last quarter. XTX Topco Ltd lifted its position in shares of Genasys by 170.6% in the second quarter. XTX Topco Ltd now owns 51,516 shares of the company’s stock worth $89,000 after buying an additional 32,481 shares in the last quarter. Susquehanna International Group LLP lifted its position in shares of Genasys by 76.6% in the third quarter. Susquehanna International Group LLP now owns 183,233 shares of the company’s stock worth $449,000 after buying an additional 79,493 shares in the last quarter. Finally, HRT Financial LP bought a new position in Genasys during the fourth quarter valued at approximately $79,000. Hedge funds and other institutional investors own 40.04% of the company’s stock.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on GNSS shares. Ascendiant Capital Markets increased their price target on Genasys from $5.50 to $6.00 and gave the stock 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. Lake Street Capital set a $3.00 price objective on Genasys in a research note on Friday, July 31st. Finally, Wall Street Zen upgraded Genasys to a “hold” rating in a research report on Sunday, July 12th. Two equities research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $4.50.

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.