Shares of Geospace Technologies Corporation (GEOS) have lost 21.9% since the company reported its earnings for the quarter ended June 30, 2025, against the S&P 500 Index’s 0.5% gain over the same period. Over the past month, however, the stock rebounded, gaining 24.4% compared with the S&P 500’s 2.1% rise.GEOS’ Financial Performance SnapshotFor the third quarter of fiscal 2025, Geospace reported revenues of $24.8 million, down 3.9% from $25.9 million a year earlier. Net income stood at $0.8 million, or $0.0 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the Quarterly Period Ended June 30, 2025 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transition period from ____ to ____ Commission file number 001-13601 GEOSPACE TECHNOLOGIES CORPORATION (Exact Name of Registrant as Specified in Its Charter) Texas 76-0447780 (State ...

Financial Data and Key Metrics Changes - For the three months ended June 30, 2025, the company reported revenue of $24.8 million, a slight decrease from $24.9 million in the same period last year. The net income for the quarter was $760,000, compared to a net loss of $2.1 million in the prior year [6][14] - For the first nine months of the fiscal year, revenue was $80.1 million, down from $100.2 million last year, with a net loss of $662,000 compared to a net income of $6.3 million in the previous year [6][14] Business Line Data and Key Metrics Changes - The Smart Water segment generated revenue of $10.5 million for the three months ended June 30, 2025, an increase of 6% from $9.9 million in the prior year. For the nine-month period, revenue was $27.3 million, up 33% from $20.6 million [15] - The Energy Solutions segment reported revenue of $8.1 million for the three-month period, a decrease of 14% from $9.4 million last year. For the nine-month period, revenue was $35.35 million, down 42% from the previous year [16] - The Intelligent Industrial segment's revenue totaled $6.1 million for the three-month period, a decrease of 5% from $6.5 million last year. For the nine-month period, revenue was $17.6 million, down 8% from $19.1 million [17][18] Market Data and Key Metrics Changes - The company continues to face challenges in the ocean bottom node markets, but there are opportunities for revenue generation in the Smart Water and Energy Solutions segments, which have improved operational efficiencies [10][12] Company Strategy and Development Direction - The company is focused on growth through acquisitions and has recently acquired HeartBee Detector, a security technology, to enhance its portfolio and create recurring revenue streams [11][12] - The company aims to leverage its products and services portfolio to exploit high-margin markets and has engaged former US Border Patrol chief to promote its security solutions [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning for future performance, citing a strong backlog and ongoing discussions with partners for additional contracts [12][13] - The company is addressing workforce costs and development expenses to achieve sustained profitability [12] Other Important Information - The company announced a significant contract with Petrobras for the supply and installation of a permanent reservoir monitoring system, expected to generate over $80 million in revenue, with installation anticipated to be completed by fiscal year 2027 [8][9] Q&A Session Summary Question: Can you discuss the PRM announcement and its implications? - Management indicated that the contract with Petrobras had been in negotiation for several months and was a significant achievement against competitors [22][23] Question: What is the expected revenue recognition timeline for the Petrobras contract? - Revenue recognition is hoped to begin in the first fiscal quarter, but specific milestones are still being defined [52] Question: Why has the Border Patrol not adopted the heartbeat detector technology? - The current technologies in use are capital-intensive and less efficient, presenting an opportunity for the new technology to improve operational efficiency [53][55] Question: What funding is allocated for tunnel detection in the recent bill? - There is a $30 million allocation, but it is not guaranteed that the full amount will be dedicated to tunnel detection [57] Question: What is the status of the SBIR-3 certification and its implications for government contracts? - The SBIR-3 certification is in place, but the specifics of government procurement processes remain unclear [59][60]

This presentation includes forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended. All statements other than statements of historical facts included herein, including statements regarding the Company's future financial position and results of operations, future product development initiatives, the Company's business strategy, the future mix of product revenues, future demand for the Company's ...

Exhibit 99.1 NEWS RELEASE FOR IMMEDIATE RELEASE GEOSPACE TECHNOLOGIES CORPORATION REPORTS PROFITABLE THIRD QUARTER AND NINE-MONTH 2025 EARNINGS Houston, Texas – August 7, 2025 – Geospace Technologies Corporation (NASDAQ: GEOS) ("the "Company") today announced results for its third quarter ended June 30, 2025. For the three-months ended June 30, 2025, Geospace reported revenue of $24.8 million, compared to revenue of $25.8 million for the comparable year-ago quarter. Net income for the three-months ended Jun ...

Company Overview - Narweena is an asset manager that focuses on identifying market dislocations caused by a poor understanding of businesses' long-term prospects [1] - The firm aims to achieve excess risk-adjusted returns by targeting businesses with secular growth opportunities in markets with barriers to entry [1] Investment Strategy - Narweena's research process emphasizes company and industry fundamentals to uncover unique insights [1] - The company has a high risk appetite and a long-term investment horizon, focusing on deeply undervalued stocks, particularly in smaller cap stocks and markets with less obvious competitive advantages [1] Market Insights - The aging population, low population growth, and stagnating productivity growth are expected to create a different set of investment opportunities compared to the past [1] - Many industries may experience stagnation or secular decline, which could paradoxically enhance business performance due to reduced competition [1] - Conversely, some businesses may face rising costs and diseconomies of scale [1] Economic Trends - There is a growing dominance of asset-light businesses in the economy, leading to a declining need for infrastructure investments over time [1] - A large pool of capital is pursuing a limited set of investment opportunities, resulting in rising asset prices and compressing risk premia [1] Leadership Background - Richard Durant, the leader of Narweena, holds undergraduate degrees in engineering and finance from the University of Adelaide and an MBA from Nanyang Technological University [1] - Durant has passed the CFA exams, indicating a strong foundation in finance and investment analysis [1]

Core Insights - Geospace Technologies (NASDAQ: GEOS) has experienced a significant stock price increase, rising over 50% in a few trading sessions and exceeding 200% in the last month, with daily trading volume surging from below 100,000 shares to over 1.6 million [1][2] Group 1: Recent Developments - The surge in investor interest was triggered by a multi-year contract awarded by Petrobras for a high-value Permanent Reservoir Monitoring (PRM) system utilizing Geospace's OptoSeis® fiber optic technology, enabling continuous monitoring of deepwater oil reservoirs [3][4] - This contract provides Geospace with a long-term revenue stream, addressing investor concerns regarding the unpredictable, project-based revenue typical in the energy sector [4] Group 2: Business Strategy and Growth - Geospace is diversifying beyond its traditional energy roots, with a rebranding strategy called "Solutions for a Smarter Future" aimed at reducing dependence on the cyclical energy market [5][6] - The Smart Water segment has shown exceptional growth, reporting a 47.8% year-over-year revenue increase in Q2 2025, reaching $9.5 million, marking the highest first six-month revenue in company history [6][7] - The company has sold over 27 million Hydroconn® waterproof connectors, which are now certified for "Build America, Buy America" compliance, crucial for securing U.S. municipal contracts [7] Group 3: Financial Health - Geospace operates with virtually no long-term debt and holds approximately $20 million in cash and short-term investments, indicating strong financial health [7][8] - A current ratio of 5.59 suggests the company can comfortably cover its short-term obligations, allowing it to invest in high-growth segments without relying on external capital [8] Group 4: Future Outlook - The recent contract with Petrobras provides significant revenue visibility and potential cash flow, essential for accelerating the company's transformation into a diversified technology leader [9][10] - Key areas to monitor include the execution of the Petrobras project and continued innovation in the Smart Water segment, which will be critical for validating the long-term strategy [10][12]

Core Viewpoint - Geospace Technologies Corporation reported a significant decline in revenues and increased net losses for the second quarter of fiscal 2025, with mixed performance across its segments, particularly strong results in Smart Water but severe declines in Energy Solutions [2][6][8]. Earnings Snapshot and Segmental Overview - For Q2 fiscal 2025, Geospace reported revenues of $18 million, a 25.7% decrease from $24.3 million year-over-year [2]. - The company incurred a net loss of $9.8 million, or $0.77 per diluted share, worsening from a net loss of $4.3 million, or $0.32 per share, in the same quarter last year [2]. Segment Performance - The Smart Water segment generated $9.5 million in revenues, up 47.7% from $6.4 million in the prior-year quarter [3]. - Energy Solutions revenue plummeted by 76.5% to $2.6 million, down from $11 million [3]. - The Intelligent Industrial segment reported revenues of $5.9 million, a decline of 12.8% from $6.7 million [3]. Other Key Business Metrics - Gross profit for the quarter was $1.7 million, a decrease of 70.3% from $5.9 million a year ago [4]. - Operating expenses rose 15.8% to $12 million from $10.4 million, leading to an operating loss of $10.3 million compared to a loss of $4.5 million in the same period last year [4]. Financial Position - Cash and short-term investments totaled $19.8 million as of March 31, 2025, down from $22.1 million as of December 31, 2024 [5]. - The company had no debt and access to $14.9 million in additional credit, with working capital at $71.4 million [5]. Management Commentary - CEO Richard Kelley noted record results in Smart Water due to strong sales of Hydroconn connectors and the Aquana smart valve product, while attributing Energy Solutions' underperformance to global trade tensions and lower oil prices [6]. - CFO Robert Curda mentioned a $2.2 million receivable reversal that materially affected results and highlighted strategic investments in the rental fleet and property [7]. Factors Influencing Results - The drop in Energy Solutions revenue was attributed to low utilization of marine ocean bottom nodes and the receivable reversal [8]. - The Intelligent Industrial segment faced challenges from reduced demand and the absence of prior-year government contract revenues, though interest in American-made sensor products provided some offset [8]. Guidance - No specific forward-looking revenue or earnings guidance was provided, but management expressed confidence in stronger performance in the second half of fiscal 2025, supported by a robust backlog and anticipated deliveries [10]. Other Developments - Geospace plans to sell 17 acres of excess land, expected to generate between $7 million and $10 million, enhancing liquidity [11]. - Management reiterated intentions to seek accretive acquisitions for immediate top-line growth [11].

Revenue Performance - Smart Water segment product revenue increased to $9,472,000 for the three months ended March 31, 2025, compared to $6,411,000 for the same period in 2024, representing a growth of 47.5%[101] - Energy Solutions segment total revenue decreased to $2,588,000 for the three months ended March 31, 2025, down from $11,035,000 in the same period in 2024, a decline of 76.6%[101] - Intelligent Industrial segment product revenue was $5,837,000 for the three months ended March 31, 2025, compared to $6,706,000 for the same period in 2024, a decrease of 12.9%[101] - Consolidated total revenue for the three months ended March 31, 2025, was $18,023,000, down from $24,270,000 in the same period in 2024, a decline of 25.7%[101] - Revenue from the Smart Water segment for the three months ended March 31, 2025, increased $3.1 million, or 47.7%, driven by increased demand for Hydroconn® cable and connector products[109] - Revenue from the Energy Solutions segment for the three months ended March 31, 2025, decreased $8.4 million, or 76.5%, compared to the prior year[111] Operating Performance - Consolidated gross profit for the three months ended March 31, 2025, was $1.7 million, a decrease of $4.1 million, or 70.3%, driven by lower wireless product revenue and rental revenue[106] - Consolidated operating expenses for the three months ended March 31, 2025, were $12.0 million, an increase of $1.6 million, or 15.8%, primarily due to higher personnel costs and increased research and development expenditures[107] - Operating loss from the Energy Solutions segment for the three months ended March 31, 2025, was $(6.7) million, compared to $(1.9) million for the prior year[112] Cash Flow and Financial Position - Cash and cash equivalents at March 31, 2025, were $19.8 million, with $13.4 million used in operating activities during the six months ended March 31, 2025[116] - The company generated $15.5 million in cash from investing activities for the six months ended March 31, 2025, primarily from the sale of short-term investments[117] - The company had no outstanding borrowings under its credit agreement as of March 31, 2025, with a borrowing base availability of $14.9 million[120] - The company expects fiscal year 2025 cash investments in property, plant, and equipment to be approximately $7 million[117] Strategic Insights - The company anticipates continued growth in the Smart Water segment driven by the Aquana smart water valve and IoT technology products[102] - The Energy Solutions segment is expected to provide a significant portion of revenue for years to come, but in diminishing proportion to other segments[103] - The company maintains a strong balance sheet with no debt, enabling it to seek business acquisitions and invest in capital assets and product R&D[104] - The company has not received any orders for a large-scale seabed PRM system since 2012, indicating potential challenges in this area[91] - The company’s diversification strategy has led to non-energy related products contributing nearly half of total revenue[82] Reporting Classification - The company is classified as a smaller reporting company and is not required to provide market risk disclosures as per Rule 12b-2 of the Exchange Act[127]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported revenue of $18 million, down from $24.3 million in the same period last year, representing a decrease of 26% [12] - The net loss for Q2 2025 was $9.8 million, or $0.77 per diluted share, compared to a net loss of $4.3 million, or $0.32 per diluted share, in the prior year [12] - For the first half of fiscal year 2025, revenue was $55.2 million, down from $74.3 million in the same period last year, marking a decrease of 26% [12] Business Line Data and Key Metrics Changes - The Smart Water segment generated revenue of $9.5 million in Q2 2025, an increase of 48% from $6.4 million in the same period last year [12] - The Energy Solutions segment saw revenue drop to $2.6 million in Q2 2025 from $11 million in the same period last year, a decrease of 77% [13] - The Intelligent Industrial segment reported revenue of $5.9 million for Q2 2025, down 13% from $6.7 million in the prior year [14] Market Data and Key Metrics Changes - The company noted ongoing uncertainty in the Energy Solutions segment due to global trade concerns, tariffs, and decreasing oil prices, which have impacted project decisions [6] - The OBN rental market and land equipment sales continued to underperform compared to previous years [6] Company Strategy and Development Direction - The company is focused on strategic cost-cutting and evaluating which business units to invest in for future growth [21] - There is an emphasis on optimizing the supply chain to mitigate external factors such as tariffs [8] - The company aims to exploit potential in high-margin markets, particularly in smart water and intelligent industrial segments [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's positioning in newer markets and highlighted a strong backlog going into the second half of the year [9] - The company remains cautious about the impact of external factors but is not overly pessimistic about future performance [44] Other Important Information - The company has a strong balance sheet with no debt and $19.8 million in cash and short-term investments [9] - The company is pursuing growth through acquisitions and accretive additions to revenue [9] Q&A Session Summary Question: Target breakeven level and cost-cutting strategy - Management is focused on strategic cost-cutting and evaluating business units for future investment [21] Question: Mariner contract and future requirements - The Mariner contract is with a new customer in the Caspian area, and discussions are ongoing for future business opportunities [23] Question: Federal budget implications - Management is optimistic about potential opportunities in border security products due to increased interest from the government [24][26] Question: Revenue expectations and performance - Management anticipates stronger performance in Q3 and Q4 based on backlog and ongoing customer engagement [43] Question: Sale of 17 acres and timeline - The sale is anticipated to be completed in the current quarter [49] Question: Revenue needed from the water business for profitability - The smart water division has shown operating income, and management expects continued profitability despite changes in cost allocation [54] Question: Aquana's revenue contribution - Aquana continues to be a single-digit percentage of revenue, with slow adoption expected to change over time [59] Question: Hydrocon connectors growth - The Hydrocon connectors have seen a growth rate of 10% to 15% year-on-year, with recent performance exceeding that [70][72] Question: Market size comparison between Aquana and Hydrocon - The total addressable market for water control valves is significant, and there is growing interest in remote shutoff valves [82]