Genasys Stock Earnings Reports

Genasys reported solid operational momentum in fiscal Q2 2025 with revenue up ~21% year-over-year and software revenue up 29% Y/Y, while sequential revenue was roughly flat. The company is executing a large Puerto Rico early-warning hardware program (37 dams across groups) that has begun shipments and installations; however, a down payment for the third group has been delayed, prompting management and the board to secure a short-term $4.0M bridge amendment to the existing term loan to shore up the balance sheet. Revenue recognition for the Puerto Rico work uses percentage-of-completion accounting, so initial material shipments will be recorded at cost (compressing gross margin) with higher margin recognition as installations complete; management expects substantially higher revenue and improved profitability in fiscal Q4. Key financials: GAAP operating loss of $6.3M in the quarter, adjusted EBITDA of negative $5.1M, gross margin 37.7% (down vs prior quarter), and cash / marketable securities of $7.2M at March 31, 2025 (down from $13.9M). Backlog expanded to approximately $50M (including $8.6M ARR) and LRAD bookings are ahead of last year; the CROWS AHD Army program remains an important longer-term multi-year opportunity (initial production order expected this fiscal year but not yet received). Software momentum from the LA County wildfires (Genasys Protect reduced average alert time from ~40–60 minutes to ~6 minutes) has greatly expanded the pipeline (pipeline measure up >100% since start of FY25), though state-level deals have slowed pending federal grant funding clarity. CFO Dennis Klahn announced his retirement, with a transition plan in place.