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

Genasys (NASDAQ:GNSS) announced its 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 company had revenue of $7.29 million during the quarter, compared to the consensus estimate of $15.47 million. Genasys had a negative net margin of 13.44% and a negative return on equity of 314.53%.

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

GNSS traded up $0.01 during mid-day trading on Thursday, reaching $1.71. 145,075 shares of the stock were exchanged, compared to its average volume of 67,915. Genasys has a 1 year low of $1.40 and a 1 year high of $2.70. The company has a 50 day moving average price of $1.73 and a two-hundred day moving average price of $1.85.

Institutional Investors Weigh In On Genasys

Several institutional investors and hedge funds have recently added to or reduced their stakes in GNSS. HRT Financial LP bought a new position in shares of Genasys in the fourth quarter valued at approximately $79,000. XTX Topco Ltd raised its stake in shares of 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 purchasing an additional 32,481 shares during the period. Marshall Wace LLP boosted 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 worth $138,000 after buying an additional 51,127 shares during the last quarter. Goldman Sachs Group Inc. boosted its holdings in shares of Genasys by 114.0% in the 1st quarter. Goldman Sachs Group Inc. now owns 87,213 shares of the company’s stock worth $198,000 after buying an additional 46,452 shares during the last quarter. Finally, Jane Street Group LLC grew its position in Genasys by 126.2% during the first quarter. Jane Street Group LLC now owns 97,618 shares of the company’s stock valued at $222,000 after buying an additional 54,461 shares during the period. Hedge funds and other institutional investors own 40.04% of the company’s stock.

Analyst Ratings Changes

GNSS has been the subject of several research analyst reports. Ascendiant Capital Markets lifted their price objective on Genasys from $5.50 to $6.00 and gave the stock a “buy” rating in a research report on Tuesday, June 2nd. Lake Street Capital set a $3.00 price objective on shares of Genasys in a report on Friday, July 31st. Weiss Ratings restated a “sell (e+)” rating on shares of Genasys in a research note on Friday, August 7th. Finally, Wall Street Zen upgraded Genasys to a “hold” rating in a report on Sunday, July 12th. Two research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Genasys currently has an average rating of “Hold” and an average price target of $4.50.

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.