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

Genasys (NASDAQ:GNSS) announced its quarterly earnings data on Thursday. The company reported ($0.10) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.02) by ($0.08), FiscalAI reports. Genasys had a negative net margin of 10.86% and a negative return on equity of 264.78%. The company had revenue of $7.29 million for the quarter, compared to analysts’ expectations 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 Stock Performance

NASDAQ GNSS traded up $0.02 during trading on Friday, hitting $1.73. 143,366 shares of the company’s stock traded hands, compared to its average volume of 71,920. The stock has a market capitalization of $78.79 million, a price-to-earnings ratio of -13.31 and a beta of 0.73. The business has a 50 day moving average of $1.73 and a 200-day moving average of $1.85. Genasys has a 12-month low of $1.40 and a 12-month high of $2.70.

Analysts Set New Price Targets

A number of analysts recently commented on GNSS shares. Wall Street Zen upgraded shares of Genasys to a “hold” rating in a research note on Sunday, July 12th. Lake Street Capital set a $3.00 price target on shares of Genasys in a research note on Friday, July 31st. Ascendiant Capital Markets increased their price objective on shares of Genasys from $5.50 to $6.00 and gave the stock a “buy” rating in a report on Tuesday, June 2nd. Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Genasys in a research report on Friday, August 7th. Finally, Roth Capital set a $3.60 price target on Genasys in a report on Friday. Two investment analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Hold” and a consensus target price of $4.20.

Hedge Funds Weigh In On Genasys

Several institutional investors have recently bought and sold shares of GNSS. Susquehanna International Group LLP boosted its holdings 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 valued at $449,000 after purchasing an additional 79,493 shares during the period. Jane Street Group LLC increased its position in shares of Genasys by 126.2% during 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 in the last quarter. Marshall Wace LLP raised its stake in shares of Genasys by 398.4% during 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 in the last quarter. Goldman Sachs Group Inc. increased its stake 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 worth $198,000 after purchasing an additional 46,452 shares in the last quarter. Finally, HRT Financial LP acquired a new stake in shares of Genasys during the 4th quarter worth $79,000. Institutional investors 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.