Genasys 2025 Q3 Earnings Slight Loss Improvement Amid Strong Revenue Growth

Genasys (GNSS) reported its fiscal 2025 Q3 earnings on August 15, 2025, showing modest progress in narrowing losses while delivering robust top-line growth driven by a key project in Puerto Rico.

Genasys’ fiscal 2025 Q3 earnings reflect a positive revenue performance that exceeded expectations, with the company raising its guidance for the year. The CEO highlighted strong project execution and a growing backlog, positioning the company for continued momentum.

Revenue
Genasys delivered a 37.5% year-over-year revenue increase, with total revenue reaching $9.86 million in the third quarter of 2025 compared to $7.17 million in the same period of the prior year. This growth was driven by a $7 million contribution from product sales and $2.86 million from contract and other services. The Puerto Rico early warning system project, which accounted for $4.3 million in revenue, was a key growth driver.

Earnings/Net Income
Genasys reduced its net loss to $6.49 million in Q3 2025, a 2.9% improvement from $6.68 million in Q3 2024. On a per-share basis, the company’s loss narrowed to $0.14 from $0.15, representing a 6.7% reduction in the quarterly loss. While the company remains unprofitable, the earnings trend shows a positive trajectory.

Price Action
Shares of Genasys rose 1.86% on the latest trading day but declined 0.00% over the past week and fell 13.68% month-to-date, reflecting mixed investor sentiment.

Post-Earnings Price Action Review
A buy-and-hold strategy following Genasys’ earnings report has underperformed significantly over the past three years, yielding a -51.32% return compared to a 47.29% benchmark. The strategy experienced a -21.98% compound annual growth rate, highlighting the risks of investing based solely on quarterly revenue improvements.

CEO Commentary
Richard S. Danforth, CEO & Director, emphasized Q3 2025 results driven by the Puerto Rico early warning system project and the company’s growing 12-month backlog of $60 million. He noted challenges related to federal funding delays but expressed confidence in the long-term market potential of Genasys Protect and the company’s geographic expansion strategy. Cost reductions of $2.5 million annually were also implemented to support profitability.

Guidance
Genasys expects increased revenue and profit contributions from Puerto Rico in Q4 2025, projecting $15 million to $20 million in total Puerto Rico revenue for fiscal 2025. The company anticipates improved gross margins and consistent operating expenses while maintaining a $61 million 12-month backlog, which supports continued growth into the next fiscal year.

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