Genasys and the Growing Military Demand for LRAD Technology

The U.S. military’s recent $6.2 million in LRAD (Long Range Acoustic Device) orders for Genasys Inc. underscores a strategic shift toward non-lethal, scalable communication tools in modern defense operations. These contracts, spanning Army, Navy, Air Force, and Coast Guard units, reflect LRAD’s critical role in de-escalating conflicts, establishing standoff zones, and enabling long-range messaging in both combat and humanitarian scenarios [1]. For Genasys, the orders represent not just a revenue boost but a validation of its technology’s adaptability in an era of geopolitical volatility and evolving security needs.

Strategic Implications: LRAD as a Force Multiplier

LRAD systems, capable of projecting clear voice communication up to 5,000 meters, have become indispensable for military units seeking to minimize force while maintaining operational control. The U.S. military’s $2.5 million in new and follow-on LRAD orders in 2025—covering systems for the Army, Navy, and Air Force—highlight their deployment in diverse missions, from counterinsurgency to disaster response [2]. For instance, the Navy’s acquisition of LRAD 360-XT mobile communication trailers for operations in Africa and Europe demonstrates the technology’s utility in remote, high-stakes environments [4].

The strategic value of LRAD extends beyond immediate tactical use. By enabling real-time communication with hostile actors or civilians in crisis, these systems reduce the risk of unintended escalation. This aligns with broader military modernization goals, such as the Department of Defense’s emphasis on “integrated deterrence” and “operational resilience” [3]. Genasys’s lobbying efforts, including a $30,000 disclosure in Q2 2025 on defense appropriations, further signal its alignment with policy priorities that prioritize non-lethal capabilities [4].

Financial Impact: Revenue Growth and Margin Dynamics

Genasys’s LRAD contracts have directly fueled its financial performance. In Q3 2025, the company reported $9.9 million in revenue, a 38% year-over-year increase, with hardware revenue up 50% [5]. While the Puerto Rico Early Warning System (EWS) project—a $4.3 million contributor to Q3 revenue—initially depressed gross margins to 26.3% due to percentage-of-completion accounting, management anticipates margin normalization as the project matures. By fiscal 2026, Genasys expects to recognize profits on prior instrumentation revenues at 100% gross margin, significantly boosting profitability [5].

The LRAD orders also bolster Genasys’s hardware backlog, which now exceeds $16 million, excluding Puerto Rico [5]. This includes $2.0 million in Maritime Communication Systems orders from the U.S. Navy and $1.0 million in LRAD systems for critical infrastructure protection in the Middle East and Africa [5]. These contracts diversify Genasys’s revenue streams beyond traditional military markets, tapping into growing demand for non-lethal security solutions in energy and infrastructure sectors.

Long-Term Outlook: A Platform for Expansion

The $6.2 million in LRAD orders is part of a broader trend: Genasys’s 12-month backlog now stands at $61 million, with $8–8.5 million in anticipated production orders for the CROWS AHD program with the U.S. Army [5]. This momentum is supported by operational efficiencies, including $2.5 million in annual cost reductions starting in fiscal 2026 [5].

However, challenges remain. Federal funding freezes and procurement delays have impacted Genasys’s software segment, though its hardware business remains resilient. The company’s strategic partnership with samdesk to deliver real-time crisis intelligence further enhances its value proposition, positioning it as a leader in mission-critical communications [5].

Conclusion

Genasys’s LRAD technology is no longer a niche product but a cornerstone of U.S. military strategy. The $6.2 million in orders reflects both the immediate utility of LRAD systems and the long-term demand for non-lethal, communication-centric solutions. For investors, the company’s ability to convert these contracts into sustainable margins—while expanding into adjacent markets—positions it as a compelling play in the defense sector. As geopolitical tensions persist and modern warfare increasingly prioritizes precision over force, Genasys’s LRAD systems are likely to remain in high demand.

Source:
[1] Genasys Receives $1.1M in LRAD Orders from U.S. Military, [https://www.businesswire.com/news/home/20250828555079/en/Genasys-Receives-%241.1M-in-LRAD-Orders-from-U.S.-Military]
[2] US Military Places $2.5M in New and Follow-On LRAD Orders, [https://genasys.com/press-releases/genasys-announces-2-5m-in-us-military-orders/]
[3] Multiyear Procurement (MYP) and Block Buy Contracting in ..., [https://www.congress.gov/crs-product/R41909]
[4] Lobbying Update: $30,000 of GENASYS (FORMERLY LRAD CORPORATION) lobbying was just disclosed, [https://www.quiverquant.com/news/Lobbying+Update%3A+%2430%2C000+of+GENASYS+%28FORMERLY+LRAD+CORPORATION%29+lobbying+was+just+disclosed]
[5] Genasys Inc. Reports Fiscal 3Q 2025 Financial Results, [https://genasys.com/press-releases/genasys-inc-reports-fiscal-third-quarter-2025-financial-results/]