Genasys Inc. Reports Fiscal Second Quarter 2026 Results

Genasys Inc. Reports Fiscal Second Quarter 2026 Results SAN DIEGO--( BUSINESS WIRE)--Genasys Inc. (NASDAQ: GNSS), the global leader in Protective Communications™, today announced financial results for the Company’s fiscal 2026 second quarter ended March 31, 2026.

Fiscal Q2 2026 Financial Summary

Recent Business Highlights and Developments

Management Commentary and Outlook

“The fiscal second quarter marked an important inflection point, headlined by a return to net income profitability and a roughly 63% gross margin,” said Richard Danforth, Genasys’ Chief Executive Officer. “Consistent delivery in Puerto Rico, combined with a standout bookings quarter in software, including new-state wins in Idaho and North Carolina, reflect sustained operational discipline and accelerating sales traction. The hard work from our team is beginning to show in our financial results, and we expect this progress to continue, supported by our roughly $58 million backlog.

“On the balance sheet front, we expect to collect receivables associated with the Puerto Rico EWS project in the near term, subject to the administrative disbursement processes, allowing us to retire the remaining balance of our outstanding debt. At that point, with sufficient cash on hand to support day-to-day operations, the Company is expected to emerge with a materially cleaner balance sheet. Combined with sustained software momentum across the country, consistent hardware execution, and an active pipeline, the second half of the year is shaping up to be a defining stretch for the Company.

“For fiscal 2026, we expect to deliver record revenue, gross margins over 50%, and net income profitability. Furthermore, our pipeline remains robust, which is a direct reflection of the sustained demand today's landscape is creating for our products. Overall, we remain focused on building upon this momentum, winning the opportunities in our pipeline, and delivering long-term value for our shareholders.”

Fiscal Q2 2026 Financial Results

Fiscal second quarter revenue was $15.5 million, an increase of 123.7% from $6.9 million in the prior year’s quarter.

Gross profit margin was 63.3%, compared with 37.7% in the second quarter of fiscal 2025. The increase in gross profit margin was primarily driven by the increase in hardware revenue.

Operating expenses decreased 3.7% to $8.5 million from $8.9 million in the fiscal second quarter 2025. Selling, general and administrative expenses decreased 6.6% to $6.2 million from $6.6 million in the fiscal second quarter 2025. Research and development expenses increased 5.1% year-over-year to $2.3 million from $2.2 million in the fiscal second quarter 2025.

GAAP net income in the quarter was $0.7 million, or $0.02 per share, basic and diluted, compared with a GAAP net loss of ($6.1) million, or ($0.14) per share, in the second quarter of fiscal 2025. The improvement in GAAP net income (loss) was primarily driven by the increase in revenues and reductions in operating expenses.

Adjusted EBITDA was $2.5 million for the second quarter of fiscal 2026, compared with ($5.1) million for the prior fiscal year period.

Cash, cash equivalents, and marketable securities totaled $1.0 million as of March 31, 2026, compared to $8.0 million at September 30, 2025. Subsequent to quarter end, the Company extended the maturity of its term loan from May 13, 2026 to July 13, 2026, aligning the maturity with expected contractual cash receipts, including collections associated with the Puerto Rico EWS project, and providing additional flexibility to support ongoing operations.

We include in this press release adjusted EBITDA, which is a non-GAAP financial measure and which we believe provides helpful information to investors with respect to evaluating the Company’s performance. Adjusted EBITDA represents our net income (loss) before interest income, interest expense, income tax expense (benefit), depreciation and amortization expense, share-based compensation, fair value measurements of our term loans and warrants, and other items that we do not consider indicative of our core operating performance. Adjusted EBITDA is a measure used by management to understand and evaluate our core operating performance and trends and to generate future operating plans, make strategic decisions regarding allocation of capital and invest in initiatives that are focused on cultivating new markets for our solutions. In particular, the exclusion of certain expenses in calculating adjusted EBITDA facilitates comparisons of our operating performance on a period-to-period basis. However, since adjusted EBITDA is a non-GAAP financial measure, it is not necessarily comparable with adjusted EBITDA used by other companies. Adjusted EBITDA has limitations and should not be considered in isolation or a substitute for performance measures calculated under GAAP, including net income (loss).

Webcast and Conference Call Details

Management will host a conference call to discuss the financial results for the fiscal second quarter 2026 this afternoon at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time. To access the conference call, dial toll-free (800) 715-9871, or international at +1 (646) 307-1963. A webcast will also be available at the following link: https://app.webinar.net/Gv12AZkr3Bj

Questions to management may be submitted before the call by emailing them to: ir@genasys.com. A replay of the webcast will be available approximately four hours after the presentation on the Events page of the Company’s website.

About Genasys Inc.

Genasys is the global leader in Protective Communications™, providing the most comprehensive portfolio of preparedness, response, and analytics software and hardware solutions available. The company’s Long Range Acoustic Device ® (LRAD ®) and Protect Platform, which includes Genasys Protect ® and Genasys Evertel ®, are designed around one premise: ensuring organizations and public safety agencies are Ready when it matters ®. Protecting people and saving lives for over 40 years, Genasys covers more than 155 million people in all 50 states and in over 100 countries worldwide. For more information, visit genasys.com.

Forward-Looking Statements

Except for historical information contained herein, the matters discussed are forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. You should not place undue reliance on these statements. We base these statements on particular assumptions that we have made in light of our industry experience, the stage of product and market development as well as our perception of historical trends, current market conditions, current economic data, expected future developments and other factors that we believe are appropriate under the circumstances. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those suggested in any forward-looking statement. The risks and uncertainties in these forward-looking statements include without limitation risks relating to receiving timely payment under, regulatory uncertainties surrounding, or disruptions in governmental support or funding of, the Puerto Rico project, our reliance on a limited number of customers, the likely need for additional capital, actual or perceived failures or breaches of our information and security systems, continued funding of government spending, the timing of such funding, general economic and business conditions, including unforeseen weakness in the Company’s markets, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, market acceptance of the Company’s products, shortages in components or price increases that cannot be passed on to customers, inability to fully realize the expected benefits from acquisitions and restructurings or delays in realizing such benefits, challenges in integrating acquired businesses and achieving anticipated synergies, changes to export regulations, difficulties in retaining key employees and customers, changes in the market for microcap stocks regardless of growth and value and various other factors beyond our control. Risks and uncertainties are identified and discussed in our filings with the Securities and Exchange Commission. These forward-looking statements are based on information and management’s expectations as of the date hereof. Future results may differ materially from our current expectations. For more information regarding potential risks and uncertainties, see the “Risk Factors” section of the Company’s Form 10-K for the fiscal year ended September 30, 2025. Genasys Inc. disclaims any intent or obligation to publicly update or revise forward-looking statements, except as otherwise specifically stated.

Genasys Inc.

Consolidated Balance Sheet

(Unaudited - in thousands)

March 31,

2026

September 30,

2025

(Unaudited)

ASSETS

Current assets:

Cash and cash equivalents

931

7,969

Short-term marketable securities

Accounts receivable, net

13,076

7,596

Contract assets

3,326

6,117

Inventories, net

9,670

8,805

Prepaid expenses and other

11,782

8,742

Total current assets

38,815

39,299

Long-term restricted cash

585

Property and equipment, net

948

1,125

Goodwill

13,401

13,450

Intangible assets, net

4,993

6,147

Operating lease right of use assets, net

2,003

2,419

Other assets

885

844

Total assets

61,630

63,869

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:

Accounts payable

9,653

8,181

Customer deposit

19,192

19,669

Accrued liabilities

8,542

7,451

Operating lease liabilities, current portion

1,162

1,125

Notes payable, at fair value

14,610

18,010

Total current liabilities

53,159

54,436

Warrant liability

2,010

3,570

Long-term deferred revenue

1,811

1,478

Operating lease liabilities, noncurrent

1,622

2,218

Total liabilities

58,602

61,702

Total stockholders' equity

3,028

2,167

Total liabilities and stockholders' equity

61,630

63,869

Genasys Inc.

Consolidated Statements of Operations

(Unaudited - in thousands, except per share amounts)

Three Months Ended

March 31,

Six Months Ended

March 31,

2026

2025

2026

2025

(unaudited)

Revenues

15,505

6,932

32,570

13,872

Cost of revenues

5,686

4,322

14,568

8,084

Gross profit

9,819

2,610

18,002

5,788

63.3

37.7

55.3

41.7

Operating expenses

Selling, general and administrative

6,206

6,648

12,846

13,482

Research and development

2,331

2,217

4,226

4,502

Total operating expenses

8,537

8,865

17,072

17,984

Income (loss) from operations

1,282

(6,255

)

930

(12,196

)

Other (expenses) income, net

(414

)

187

(754

)

2,050

Income (loss) before income taxes

868

(6,068

)

176

(10,146

)

Income tax expense

145

270

Net income (loss)

723

(6,139

)

(94

)

(10,217

)

Net income (loss) per common share

Basic

0.02

(0.14

)

(0.00

)

(0.23

)

Diluted

0.02

(0.14

)

(0.00

)

(0.23

)

Weighted average common shares outstanding

Basic

45,268

45,002

45,233

44,957

Diluted

46,006

45,002

45,233

44,957

Reconciliation of GAAP measures to non-GAAP measures

Net income (loss)

723

(6,139

)

(94

)

(10,217

)

Other expenses (income), net

414

(187

)

754

(2,050

)

Income tax expense

145

270

Depreciation and amortization

689

692

1,371

1,428

Share based compensation

551

414

970

805

Adjusted EBITDA

2,522

(5,149

)

3,271

(9,963

)