Geospace Technologies 2025 Q4 Earnings Narrowed Losses Amid Revenue Decline

Geospace Technologies (GEOS) reported fiscal 2025 Q4 earnings on Nov 21, 2025, with revenue declining 13.3% year-over-year to $30.71 million. The company narrowed its net loss to $9.06 million ($0.71 per share) from $12.86 million ($1.01 per share) in 2024 Q4. While the earnings performance missed expectations, management expressed cautious optimism about long-term growth from Smart Water and Intelligent Industrial segments.

Revenue

Geospace’s Q4 revenue of $30.71 million reflected a 13.3% year-over-year decline, driven primarily by reduced offshore exploration activity and pricing pressures in the Energy Solutions segment. The Smart Water segment, however, delivered its fourth consecutive year of double-digit revenue growth, fueled by demand for Hydroconn connectors and Aquana products. Meanwhile, the Intelligent Industrial segment posted a 9% quarterly revenue increase, supported by industrial sensors and contract manufacturing services.

Earnings/Net Income

The company narrowed its net loss to $9.06 million ($0.71 per share) in Q4 2025, representing a 29.5% improvement compared to the prior year. While the reduced loss is a positive sign, the overall performance still reflects operational challenges, particularly in the Energy Solutions segment. The EPS improvement highlights cost optimization efforts but underscores the need for sustained revenue growth to achieve profitability.

Post-Earnings Price Action Review

Following the earnings report, Geospace’s stock price plummeted 19.97% during the latest trading day, with a 47.11% decline over the most recent full trading week and a 47.93% drop month-to-date. The sharp sell-off reflects investor concerns over the revenue shortfall and ongoing volatility in the energy market. Despite the CEO’s optimism about long-term growth, the stock’s performance suggests skepticism about the company’s ability to navigate short-term headwinds.

CEO Commentary

Richard Kelley, CEO, emphasized strategic priorities including diversification, acquisition of Geovox Security’s Heartbeat Detector, and restructuring the Exile product line. He highlighted a strong backlog and cost optimization efforts, while acknowledging short-term challenges from oil price volatility and tariff-related costs. Kelley expressed confidence in Smart Water and Intelligent Industrial segments but cautioned about uncertainty in government project timelines.

Guidance

Geospace reported Q4 2025 revenue of $30.7 million and a net loss of $9.1 million ($0.71 EPS), with full-year revenue of $110.8 million and a $9.7 million net loss ($0.76 EPS). Forward-looking expectations include improved Energy Solutions margins on the Petrobras PRM contract and continued Smart Water demand. The CEO noted confidence in fiscal 2026 growth from existing backlogs and diversification initiatives but highlighted risks from government project delays.

Additional News

Geospace announced the acquisition of Geovox Security’s Heartbeat Detector, a key move to bolster Intelligent Industrial’s recurring revenue. The company also secured a major Permanent Reservoir Monitoring contract with Petrobras, signaling long-term growth potential. Additionally, the restructuring of the Exile product line aims to enhance margins and drive top-line growth. These strategic actions underscore management’s focus on diversification and operational efficiency.