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% [11] - 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 [11] - 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% [11] Business Line Data and Key Metrics Changes - The Smart Water segment generated revenue of $9.5 million for Q2 2025, an increase of 48% from $6.4 million in the same period last year [11] - The Energy Solutions segment saw a significant decline, with Q2 revenue of $2.6 million, down 77% from $11 million in the same period last year [12] - The Intelligent Industrial segment reported revenue of $5.9 million for Q2 2025, a decrease of 13% from $6.7 million in the prior year [13] Market Data and Key Metrics Changes - The company is experiencing increased interest in its Quanta product offerings, indicating potential organic growth in this market segment [6] - The ongoing uncertainty in the Energy Solutions segment is attributed to global trade concerns, tariffs, and decreasing oil prices, which have impacted project decisions for customers [7] Company Strategy and Development Direction - The company aims to leverage its innovative IoT technologies and diversify into high-margin markets in the smart water and intelligent industrial segments [9] - The management is focused on strategic cost-cutting and optimizing the supply chain to mitigate external factors affecting the business [8] 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 [10] - The management acknowledged the volatility in the oil and gas market but remains cautiously optimistic about long-term investments from partners and customers [38] Other Important Information - The company maintains 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 its top-line revenue [9] Q&A Session Summary Question: What is the target breakeven level regarding cost-cutting? - Management is focused on strategic cost-cutting and evaluating which business units to invest in going forward [20] Question: Can you elaborate on the Mariner contract and future requirements? - The Mariner contract is with a new customer in the Caspian area, anticipating increased activity and potential future business [21] Question: What are the implications of the federal government's budget for the company? - Management is bullish about opportunities in border security products and believes passing a budget could be positive for the company [23][25] Question: Will the revenue continue at the current low level? - Management expects stronger performance in Q3 and Q4 due to a solid backlog and ongoing customer engagement [37] Question: What is the status of the sale of the 17 acres? - The sale is anticipated to be completed in the current quarter [41] Question: What revenue is needed from the water business to begin making money? - The smart water division has shown operating income, and management is optimistic about continued profitability [43][45] Question: What percentage of revenue does Aquantia represent? - Aquantia continues to be a single-digit percentage of revenue, with expectations for gradual growth [46] Question: How has the Hydrocon connector business developed? - The Hydrocon connectors have seen 10% to 15% growth year-on-year, with recent quarterly growth exceeding 40% [51][53] Question: What is the market size for Aquantum smart valves compared to Hydrocon? - The total addressable market for water control valves is significant, with increasing interest in remote shutoff valves due to cost savings [60][62]

[Financial Performance Summary](index=1&type=section&id=Financial%20Performance%20Summary) Geospace Technologies reported significant revenue declines and widening losses for both Q2 and the first six months of fiscal 2025, driven by challenging market conditions [Second Quarter Fiscal 2025 Results](index=1&type=section&id=Second%20Quarter%20Fiscal%202025%20Results) For the second quarter ended March 31, 2025, Geospace Technologies reported a significant decrease in revenue to $18.0 million from $24.3 million in the prior year's quarter, with the company's net loss widening to ($9.8) million, or ($0.77) per diluted share, compared to a net loss of ($4.3) million, or ($0.32) per diluted share, for the same period in 2024 Q2 FY2025 vs Q2 FY2024 Financial Highlights | Metric | Q2 FY2025 | Q2 FY2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $18.0 million | $24.3 million | -25.9% | | **Net Loss** | ($9.8) million | ($4.3) million | Increased Loss | | **Diluted EPS** | ($0.77) | ($0.32) | Increased Loss | [Six-Month Fiscal 2025 Results](index=1&type=section&id=Six-Month%20Fiscal%202025%20Results) For the six months ended March 31, 2025, revenue declined to $55.2 million from $74.3 million year-over-year, with the company swinging from a net income of $8.4 million in the prior year period to a net loss of ($1.4) million, reflecting significant challenges faced during the first half of the fiscal year Six-Month FY2025 vs FY2024 Financial Highlights | Metric | Six Months FY2025 | Six Months FY2024 | Change | | :--- | :--- | :--- | :--- | | **Revenue** | $55.2 million | $74.3 million | -25.7% | | **Net Income (Loss)** | ($1.4) million | $8.4 million | Swing to Loss | | **Diluted EPS** | ($0.11) | $0.62 | Swing to Loss | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management acknowledged a volatile quarter with segment-specific challenges but expressed optimism for future growth, supported by strategic initiatives and a strong financial position [Q2 Performance and Market Outlook](index=1&type=section&id=Q2%20Performance%20and%20Market%20Outlook) Management highlighted a volatile second quarter, with record performance in the Smart Water segment offset by significant challenges in the Energy Solutions and Intelligent Industrial segments, as external factors such as global trade concerns, tariffs, and decreasing oil prices have delayed or canceled customer projects, prompting the company to actively optimize its supply chains to mitigate these impacts - The Smart Water segment, particularly Hydroconn® connectors, achieved record performance[4](index=4&type=chunk) - The Energy Solutions segment is facing uncertainty due to global trade concerns, tariffs, and lower oil prices, leading to project delays and cancellations[4](index=4&type=chunk) - The Intelligent Industrial segment was negatively affected by tariff concerns, specifically for its EXILE products[4](index=4&type=chunk) [Future Outlook and Strategy](index=1&type=section&id=Future%20Outlook%20and%20Strategy) Despite recent challenges, management expressed optimism for the future based on record first-half revenue for Hydroconn connectors, a new Mariner contract, ongoing PRM studies, and a strong backlog, while maintaining a robust balance sheet with no debt and pursuing growth through acquisitions and cost management to return to sustained profitability - Future optimism is fueled by record Hydroconn revenue, a new Mariner contract, ongoing PRM studies, and a strong backlog for the second half of the year[5](index=5&type=chunk) - The company maintains a strong balance sheet with no debt and **$19.8 million in cash and short-term investments**[5](index=5&type=chunk) - The company's strategy includes managing workforce and development costs, and pursuing growth through immediately accretive acquisitions[5](index=5&type=chunk) [Segment Performance Analysis](index=2&type=section&id=Segment%20Performance%20Analysis) Segment performance varied significantly, with record growth in Smart Water offset by substantial revenue declines in Energy Solutions and Intelligent Industrial segments [Smart Water Segment](index=2&type=section&id=Smart%20Water%20Segment) The Smart Water segment was a standout performer, achieving record revenue for both the second quarter and the first half of the fiscal year, with revenue growing 47.8% year-over-year for the quarter, driven by strong sales of Hydroconn® universal AMI connectors, which have now surpassed 27 million units sold, and confirmed compliance with the Build America, Buy America Act (BABA) to support sales Smart Water Segment Revenue | Period | FY2025 | FY2024 | Growth | | :--- | :--- | :--- | :--- | | **Q2 Revenue** | $9.5 million | $6.4 million | +47.8% | | **Six-Month Revenue** | $16.8 million | $10.6 million | +58.5% | - The company surpassed **27 million Hydroconn® universal AMI connectors** sold, indicating strong market adoption[6](index=6&type=chunk) - Hydroconn connectors were confirmed to be compliant with the Build America, Buy America Act (BABA), which is often required for projects using federal funds[6](index=6&type=chunk) [Energy Solutions Segment](index=2&type=section&id=Energy%20Solutions%20Segment) The Energy Solutions segment experienced a sharp decline in revenue, falling 76.5% in the second quarter compared to the prior year, primarily due to lower utilization of the marine ocean bottom node rental fleet and a $2.2 million reversal of rental revenue due to concerns about a customer's ability to pay, though the company sees future potential from its Pioneer land seismic product and is engaged in two FEED studies for a major oil producer Energy Solutions Segment Revenue | Period | FY2025 | FY2024 | Change | | :--- | :--- | :--- | :--- | | **Q2 Revenue** | $2.6 million | $11.0 million | -76.5% | | **Six-Month Revenue** | $26.9 million | $50.9 million | -47.3% | - The revenue decrease was driven by lower marine node rental utilization and a **$2.2 million reversal of rental revenue** due to collectability concerns[7](index=7&type=chunk) - The company is performing engineering services for two Front-End Engineering and Design (FEED) studies and is actively marketing its Pioneer product[7](index=7&type=chunk) [Intelligent Industrial Segment](index=2&type=section&id=Intelligent%20Industrial%20Segment) Revenue for the Intelligent Industrial segment decreased by 12.8% in the second quarter, mainly attributed to the completion of a government contract in fiscal 2024 and lower demand for imaging products, partially offset by an increase in demand for the company's sensor products Intelligent Industrial Segment Revenue | Period | FY2025 | FY2024 | Change | | :--- | :--- | :--- | :--- | | **Q2 Revenue** | $5.9 million | $6.7 million | -12.8% | | **Six-Month Revenue** | $11.5 million | $12.6 million | -8.8% | - The revenue decrease was primarily due to the completion of a government contract in the prior fiscal year and lower demand for imaging products[8](index=8&type=chunk) [Financial Position and Liquidity](index=2&type=section&id=Financial%20Position%20and%20Liquidity) The company maintains a strong liquidity position with substantial cash reserves and no debt, despite negative operating cash flow offset by investing activities [Balance Sheet and Liquidity](index=3&type=section&id=Balance%20Sheet%20and%20Liquidity) As of March 31, 2025, Geospace maintained a strong and liquid balance sheet, holding $19.8 million in cash and short-term investments, with no outstanding borrowings, and access to an additional $14.9 million under its credit agreement, while working capital stood at $71.4 million Key Balance Sheet and Liquidity Metrics (as of March 31, 2025) | Metric | Value | | :--- | :--- | | Cash and Short-Term Investments | $19.8 million | | Borrowings Outstanding | $0 | | Bank Credit Availability | $14.9 million | | Working Capital | $71.4 million | - The company owns unencumbered property and real estate, with a sale of excess land adjacent to its Houston facility expected to be completed in the third quarter[10](index=10&type=chunk) [Cash Flow](index=2&type=section&id=Cash%20Flow) For the six-month period ended March 31, 2025, the company used $13.4 million in cash from operating activities, while cash from investing activities was a positive $15.5 million, largely due to $18.9 million in proceeds from the sale of short-term investments, which offset capital expenditures Six-Month Cash Flow Summary (ended March 31, 2025) | Activity | Cash Flow | | :--- | :--- | | Net Cash Used in Operating Activities | ($13.4) million | | Net Cash Provided by Investing Activities | $15.5 million | | Net Cash Used in Financing Activities | ($0.6) million | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section provides the detailed, unaudited consolidated financial statements for Geospace Technologies Corporation, including the Statements of Operations, Balance Sheets, Statements of Cash Flows, and a summary of segment revenue and operating income (loss) for the periods ended March 31, 2025, and March 31, 2024 [Consolidated Statements of Operations](index=5&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) The company reported a net loss of ($9.8) million for the three months and ($1.4) million for the six months ended March 31, 2025, a significant downturn from the net loss of ($4.3) million and net income of $8.4 million in the respective prior-year periods, with the decline driven by lower revenues, particularly from rentals, and increased operating expenses Consolidated Statements of Operations (in thousands) | | Three Months Ended Mar 31, 2025 | Three Months Ended Mar 31, 2024 | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | $18,023 | $24,270 | $55,246 | $74,302 | | **Gross profit** | $1,748 | $5,881 | $21,897 | $28,117 | | **Income (loss) from operations** | $(10,281) | $(4,506) | $(2,446) | $8,331 | | **Net income (loss)** | $(9,798) | $(4,327) | $(1,422) | $8,352 | | **Diluted EPS** | $(0.77) | $(0.32) | $(0.11) | $0.62 | [Consolidated Balance Sheets](index=6&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, total assets were $149.0 million, a slight decrease from $152.2 million at September 30, 2024, primarily due to a reduction in short-term investments, while total liabilities also decreased to $15.9 million from $17.6 million, and total stockholders' equity saw a small reduction to $133.1 million Consolidated Balance Sheets (in thousands) | | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | **Total current assets** | $87,013 | $89,366 | | **Total assets** | $148,964 | $152,194 | | **Total current liabilities** | $15,570 | $17,197 | | **Total liabilities** | $15,872 | $17,570 | | **Total stockholders' equity** | $133,092 | $134,624 | [Consolidated Statements of Cash Flows](index=7&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the six months ended March 31, 2025, net cash used in operating activities was ($13.4) million, while net cash provided by investing activities was $15.5 million, mainly from the sale of short-term investments, resulting in a net increase in cash and cash equivalents of $1.4 million after a small use of cash in financing activities Consolidated Statements of Cash Flows (in thousands) | | Six Months Ended Mar 31, 2025 | Six Months Ended Mar 31, 2024 | | :--- | :--- | :--- | | **Net cash used in operating activities** | $(13,401) | $(6,271) | | **Net cash provided by investing activities** | $15,454 | $8,096 | | **Net cash used in financing activities** | $(615) | $— | | **Increase in cash and cash equivalents** | $1,399 | $1,959 | | **Cash and cash equivalents, end of period** | $8,294 | $20,762 | [Summary of Segment Revenue and Operating Income (Loss)](index=8&type=section&id=SUMMARY%20OF%20SEGMENT%20REVENUE%20AND%20OPERATING%20INCOME%20(LOSS)) The segment summary highlights the contrasting performance across business units, with the Smart Water segment generating $1.8 million in operating income for the six months ended March 31, 2025, while the Energy Solutions segment's operating income fell sharply to $6.6 million from $13.1 million YoY, and the Intelligent Industrial segment posted a wider operating loss of ($2.2) million Six Months Ended March 31, 2025 vs 2024 (in thousands) | Segment | Revenue 2025 | Revenue 2024 | Operating Income (Loss) 2025 | Operating Income (Loss) 2024 | | :--- | :--- | :--- | :--- | :--- | | **Smart Water** | $16,760 | $10,645 | $1,790 | $2,761 | | **Energy Solutions** | $26,870 | $50,946 | $6,614 | $13,120 | | **Intelligent Industrial** | $11,460 | $12,562 | $(2,227) | $(899) |

Core Viewpoint - Geospace Technologies Corporation has experienced a significant decline in stock performance following its earnings report, raising investor concerns about its financial health and market positioning [1] Financial Performance - For Q1 fiscal 2025, Geospace reported revenues of $37.2 million, a 25.6% decrease from $50 million in the same quarter last year [2] - Net income fell 33.9% to $8.4 million, or $0.65 per diluted share, compared to $12.7 million, or $0.94 per diluted share, in the prior year [2] Segment Performance - The Smart Water division generated $7.3 million in revenues, up 72.1% from $4.2 million year-over-year, driven by demand for Hydroconn products [3] - The Energy Solutions segment saw a 39.2% decline in revenues to $24.3 million, attributed to lower OBX rental fleet utilization and the absence of a $30 million Mariner sale from the previous year [3][7] - The Intelligent Industrial segment reported revenues of $5.6 million, a 4.1% decrease from $5.8 million a year earlier, mainly due to reduced demand for imaging products [3] Operational Insights - Gross profit was $20.1 million, with a gross margin of 54.1%, down from $22.2 million and 44.4% in the prior year [4] - Operating expenses increased 31% year-over-year to $12.3 million, primarily due to higher personnel costs [4] - Research and development expenditures rose 35.9% to $4.9 million, reflecting the company's focus on innovation [4] Balance Sheet and Liquidity - The company maintains a strong balance sheet with $22.1 million in cash and equivalents, no outstanding debt, and total liquidity of $34 million [5] Growth Drivers - The Smart Water segment is identified as a key growth driver, benefiting from increased adoption of automated water management solutions [6] - Despite challenges in the Energy Solutions segment, a $17 million sale of OBX marine wireless products partially offset revenue declines [7] Future Outlook - Management has not provided specific guidance but acknowledged potential revenue variability in the Energy Solutions segment [8] - The company completed a $7 million stock repurchase program, repurchasing approximately 716,000 shares at an average price of $9.72 per share, indicating a commitment to shareholder value [10] - Geospace is exploring acquisition opportunities and organic growth, particularly in the Smart Water segment [11]

PART I. FINANCIAL INFORMATION [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Geospace Technologies reported Q1 FY2025 revenue and net income declines, with a shift to net cash outflow from operations [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to **$159.9 million** driven by receivables, while cash and short-term investments decreased - Consolidated Balance Sheet Highlights (in thousands) | Account | Dec 31, 2024 | Sep 30, 2024 | Change | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and cash equivalents | $1,410 | $6,895 | ($5,485) | | Short-term investments | $20,655 | $30,227 | ($9,572) | | Trade accounts and financing receivables, net | $40,645 | $21,868 | $18,777 | | Total current assets | $95,085 | $89,366 | $5,719 | | Total assets | $159,939 | $152,194 | $7,745 | | **Liabilities & Equity** | | | | | Total current liabilities | $16,888 | $17,197 | ($309) | | Total liabilities | $17,229 | $17,570 | ($341) | | Total stockholders' equity | $142,710 | $134,624 | $8,086 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Total revenue decreased by **25.6%** year-over-year to **$37.2 million**, significantly impacting operating and net income - Quarterly Statement of Operations (in thousands, except per share data) | Metric | Q1 FY2025 (ended Dec 31, 2024) | Q1 FY2024 (ended Dec 31, 2023) | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenue | $37,223 | $50,032 | -25.6% | | Gross Profit | $20,149 | $22,236 | -9.4% | | Income from Operations | $7,835 | $12,837 | -39.0% | | Net Income | $8,376 | $12,679 | -34.0% | | Diluted EPS | $0.65 | $0.94 | -30.9% | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating activities used **$11.5 million** in cash, a significant shift from prior year, primarily due to working capital - Quarterly Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 FY2025 (ended Dec 31, 2024) | Q1 FY2024 (ended Dec 31, 2023) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | ($11,509) | $2,652 | | Net cash provided by (used in) investing activities | $6,287 | ($2,740) | | Net cash used in financing activities | ($197) | $0 | | **Increase (decrease) in cash and cash equivalents** | **($5,485)** | **$104** | [Notes to Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail revenue recognition, segment reorganization, and significant credit risk concentration with one customer - The company has a significant concentration of credit risk, with one customer accounting for **$18.7 million** in revenue for the quarter and a receivable balance of **$22.5 million** as of December 31, 2024[28](index=28&type=chunk) - Effective October 1, 2024, the company reorganized its business into three new operating segments: **Smart Water**, **Energy Solutions**, and **Intelligent Industrial**, and changed its cost allocation methodology[71](index=71&type=chunk)[72](index=72&type=chunk) - Product Revenue by New Segment (in thousands) | Segment | Q1 FY2025 (ended Dec 31, 2024) | Q1 FY2024 (ended Dec 31, 2023) | | :--- | :--- | :--- | | Smart Water | $7,288 | $4,234 | | Energy Solutions | $19,826 | $33,706 | | Intelligent Industrial | $5,531 | $5,774 | | **Total** | **$32,645** | **$43,714** | - The company has a **$15 million** revolving credit facility expiring in July 2025. As of December 31, 2024, there were no borrowings outstanding, and availability was **$12.1 million**[64](index=64&type=chunk)[120](index=120&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=18&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes revenue decline to lower Energy Solutions sales, partially offset by Smart Water growth, with increased operating expenses - The company's diversification strategy focuses on expanding the Smart Water and Intelligent Industrial segments to counterbalance the volatility of the Energy Solutions segment[101](index=101&type=chunk) - A shift from rentals to purchases of OBX marine wireless nodes was observed, indicating customers' confidence in future backlog[102](index=102&type=chunk) - The company is responding to a tender for a large-scale seabed Permanent Reservoir Monitoring (PRM) system, with an award expected in the third quarter of fiscal 2025. The company has not received an order for a large-scale system since 2012[90](index=90&type=chunk) - Segment Revenue and Operating Income (Loss) (in thousands) | Segment | Revenue Q1 FY25 | Revenue Q1 FY24 | Operating Income (Loss) Q1 FY25 | Operating Income (Loss) Q1 FY24 | | :--- | :--- | :--- | :--- | :--- | | Smart Water | $7,288 | $4,234 | $370 | $1,095 | | Energy Solutions | $24,282 | $39,911 | $13,282 | $15,068 | | Intelligent Industrial | $5,577 | $5,813 | ($940) | ($191) | [Quantitative and Qualitative Disclosures about Market Risk](index=20&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) As a smaller reporting company, Geospace Technologies is exempt from market risk disclosure requirements - As a smaller reporting company, Geospace Technologies is exempt from the requirement to provide disclosures about market risk under Item 305(e) of Regulation S-K[127](index=127&type=chunk) [Controls and Procedures](index=21&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective, with no material changes to internal controls - Based on an evaluation as of December 31, 2024, the CEO and CFO concluded that the company's disclosure controls and procedures were effective[129](index=129&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, these controls[130](index=130&type=chunk) PART II. OTHER INFORMATION [Risk Factors](index=22&type=section&id=Item%201A.%20Risk%20Factors) The company faces risks from increased tariffs and trade restrictions due to significant international sales and foreign raw material reliance - The company is subject to risks from tariffs and trade restrictions due to significant international sales (approx. **50% of revenue**) and procurement of raw materials from foreign countries like China[133](index=133&type=chunk) - Escalating trade tensions, particularly between the U.S. and China, and regulatory uncertainty could lead to increased costs, decreased profit margins, and reduced product competitiveness[133](index=133&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=22&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company repurchased **19,994** shares of common stock under its **$7 million** stock repurchase program, with **$0.4 million** remaining - Stock Repurchase Activity (Q1 FY2025) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | Oct 2024 | — | $— | | Nov 2024 | — | $— | | Dec 2024 | 19,994 | $9.98 | - The Board authorized a stock repurchase program of up to **$7 million**. As of December 31, 2024, approximately **$418,000** remains available for repurchase under this program[134](index=134&type=chunk) [Exhibits](index=22&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including an employment termination agreement and CEO/CFO certifications - The report includes several exhibits, such as an Employment Termination Agreement, CEO/CFO certifications (Rule 13a-14(a) and 18 U.S.C. Section 1350), and iXBRL financial statements[135](index=135&type=chunk)[137](index=137&type=chunk)

Financial Data and Key Metrics Changes - For Q1 2025, the company reported revenue of $37.2 million, a decrease from $50 million in the same period last year, representing a decline of 26% [13] - Net income for the quarter was $8.4 million or $0.65 per diluted share, down from $12.7 million or $0.94 per diluted share in the prior year, indicating a decrease of 34% [13] Business Line Data and Key Metrics Changes - Smart Water segment revenue increased to $7.3 million, up 72% from $4.2 million in the same period last year, driven by higher demand for Hydroconn products [14] - Energy Solutions segment revenue decreased to $24.3 million, down 39% from $39.9 million a year ago, primarily due to a significant sale of $30 million in the prior year that did not recur [15][16] - Intelligent Industrial segment revenue totaled $5.6 million, a slight decrease of 4% from $5.8 million in the previous year, attributed to lower demand for imaging products [17] Market Data and Key Metrics Changes - The company noted a strong performance in the Smart Water segment, particularly in municipal and multifamily markets, indicating potential for future growth [10] - The Energy Solutions segment faced challenges due to lower utilization of the OBX rental fleet, impacting revenue [15] Company Strategy and Development Direction - The company has realigned its business segments into Smart Water, Energy Solutions, and Intelligent Industrial to better reflect its technology-driven solutions [8] - There is a focus on organic growth and potential acquisitions in the Smart Water segment to enhance market presence [10] Management's Comments on Operating Environment and Future Outlook - Management is monitoring the new administration's focus on border security and immigration, which may present opportunities for the company [27][48] - Discussions regarding Carbon Capture are ongoing, but no immediate revenue-generating opportunities have been identified [29] - The company is optimistic about future growth in the Smart Water segment, particularly with products like Hydroconn and Aquana, which have seen increased market interest [39][40] Other Important Information - The company completed a $7 million stock repurchase program, purchasing approximately 716,000 shares at an average price of $9.72 per share [23] - Operating expenses for Q1 2025 were $12.3 million, an increase of 31% compared to the previous year, driven by higher personnel costs and R&D expenditures [18] Q&A Session Summary Question: What is happening with Homeland Security? - Management is monitoring the new administration's direction, particularly regarding border protection, and is hopeful for opportunities related to ongoing projects with Customs and Border Protection [27] Question: Any developments in Carbon Capture? - The company continues discussions with partners but has not yet identified revenue opportunities in this area [29] Question: Insights on R&D projects? - R&D investments are being made in various projects, with a focus on future revenue streams, but no specific guidance was provided [34][36] Question: Future expectations for Smart Water products? - Management expressed optimism about continued growth in the Smart Water segment, particularly for Hydroconn and Aquana products, with increasing market demand [39][40] Question: Will Aquana benefit from border security developments? - There is potential for Aquana to benefit from increased focus on border security, but clarity on funding allocation is still needed [48] Question: Any updates on PRM technology? - There are ongoing discussions regarding PRM technology, but no immediate opportunities are expected in 2025 due to competition with ocean bottom nodes [53][54]

Financial Data and Key Metrics Changes - For the first quarter of fiscal year 2025, the company reported revenue of $37.2 million, a decrease from $50 million in the same period last year, representing a decline of 26% [5][9] - Net income for the quarter was $8.4 million, or $0.65 per diluted share, down from $12.7 million, or $0.94 per diluted share, in the prior year, indicating a decrease of 34% in net income [5][9] Business Line Data and Key Metrics Changes - The Smart Water segment reported revenue of $7.3 million, an increase of 72% compared to $4.2 million in the same period last year, driven by higher demand for Hydrakon cable and connector products [6][9] - The Energy Solutions segment revenue was $24.3 million, down 39% from $39.9 million in the first quarter of fiscal year 2024, influenced by a significant sale of $30 million in the prior year [7][10] - The Intelligent Industrial segment revenue totaled $5.6 million, a decrease of 4% from $5.8 million in the same period last year, attributed to lower demand for imaging products [8][11] Market Data and Key Metrics Changes - The company sees significant potential in the municipal and multifamily marketplace for its water management solutions, indicating a focus on organic growth and potential acquisitions [6] - The company is monitoring the new administration's focus on border security and immigration, which may present opportunities for its products [18][33] Company Strategy and Development Direction - The company has realigned its business segments into Smart Water, Energy Solutions, and Intelligent Industrial to better reflect its technology-driven solutions [6] - The company completed a $7 million stock repurchase program, purchasing approximately 716,000 shares at an average price of $9.72 per share, indicating a commitment to returning value to shareholders [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding future opportunities in the Smart Water segment, particularly with products like Hydrocon and Aquana, which have seen increased market uptake [27][29] - The company is actively engaging with partners regarding carbon capture technologies, although no immediate revenue opportunities have been identified [19] Other Important Information - Operating expenses for the first quarter were $12.3 million, an increase of 31% compared to $9.4 million in the same period last year, primarily due to higher personnel costs and increased R&D expenditures [12] - The company maintains a strong balance sheet with $22 million in cash and short-term investments, and total liquidity of $34 million [12] Q&A Session Summary Question: Any updates on Homeland Security activities? - Management is monitoring the new administration's direction, particularly regarding immigration and border protection, and is hopeful for opportunities [18] Question: Any developments in carbon capture? - Management continues discussions with partners but has not yet identified revenue-generating opportunities in carbon capture [19] Question: Insights on R&D projects? - Management indicated that some projects are capital intensive with long lead times, and additional R&D investments have been made recently [22][24] Question: Future expectations for Smart Water products? - Management noted strong market interest in Hydrocon and Aquana, with expectations for continued growth in both domestic and international markets [27][29] Question: Optimism regarding Quantum technology and border security? - Management sees potential opportunities but is awaiting clarity on funding allocations from the federal government [33] Question: Developments with PRM technology? - Management mentioned ongoing discussions but noted no pressing opportunities for PRM at this time [37][39]

Exhibit 99.1 NEWS RELEASE GEOSPACE TECHNOLOGIES REPORTS PROFITABLE FIRST QUARTER FOR FISCAL YEAR 2025 Houston, Texas – February 5, 2025 – Geospace Technologies Corporation (NASDAQ: GEOS) ("the "Company") today announced results for its first quarter ended December 31, 2024. For the three-months ended December 31, 2024, Geospace reported revenue of $37.2 million compared to revenue of $50.0 million for the comparable year-ago quarter. Net income for the three-months ended December 31, 2024, was $8.4 million, ...

Shares of Geospace Technologies Corporation (GEOS) have lost 9.3% since the company reported its earnings for the quarter ended Sept. 30, 2024, against the S&P 500 index’s 2.6% increase during the same period. Over the past month, the stock has moved down 1.6%, again lagging the S&P 500’s gain of 7.1%.Revenue and Profitability OverviewGeospace reported fiscal 2024 revenues of $135.6 million, up 8.9% from $124.5 million in the prior year. The uptick in revenues was driven by increases in demand across all th ...

Recommendations BellRing Brands price target raised by $5 at Barclays, here's why » BRBRBellRing Brands / + Available to The Fly Members OnlyBreaking content available to members only. Sign up or login for access.Create FREE AccountBarclays raised the… Earnings Baidu reports Q3 EPS RMB 16.60 vs. RMB 20.40 last year » BIDUBaidu $86.76 / +0.73 (+0.85%) Available to The Fly Members OnlyBreaking content available to members only. Sign up or login for access.Create FREE AccountReports Q3 revenue RMB ...

Core Viewpoint - Geospace Technologies Corporation reported a net loss of $2.1 million in Q3 fiscal 2024, a significant decline from a net income of $3.2 million in the same period last year, primarily driven by lower revenues in the Oil and Gas Markets segment [10][12]. Revenue Summary - Total revenues for Geospace Technologies in Q3 fiscal 2024 were $25.9 million, reflecting a decrease of 20.9% year over year [2]. - The Oil and Gas Markets segment generated revenues of $9.2 million, down 48.1% from the previous year, attributed to lower utilization of the wireless seismic rental fleet due to weather-related delays, competition, and product availability [3]. - Adjacent Markets segment revenues increased by 7.5% year over year to $15.9 million, driven by growth in water meter and industrial sensor products, despite lower demand for contract manufacturing services and thermal film products [5]. - Emerging Markets segment revenues from border and perimeter security products surged by 487.2% year over year to $0.6 million [6]. Segment Performance - Within the Oil and Gas Markets segment, traditional seismic exploration revenues were $2 million (down 40.4%), wireless seismic exploration revenues were $6.9 million (down 49.4%), and reservoir product revenues were $0.2 million (down 63.5%) [4]. - In the Adjacent Markets segment, industrial product revenues were $13 million (up 11.5%), while imaging product revenues were $2.9 million (down 7.5%) [6]. Profitability Analysis - Gross profit for the quarter declined by 39% to $8.5 million, with the gross margin contracting by 976 basis points to 32.9% [8]. - Adjusted operating loss totaled $2.4 million, contrasting with an adjusted operating profit of $2.9 million in the prior year [9]. Liquidity and Debt Management - At the end of Q3 fiscal 2024, Geospace Technologies had cash and cash equivalents of $42.5 million, down from $51.2 million at the end of the previous quarter, and ended the quarter with no debt [11]. - Cumulative net cash used in operating activities was $7.5 million, compared to a net cash provided of $3.1 million a year ago [11]. Outlook - Despite the disappointing overall results, the growth in Adjacent Markets and Emerging Markets segments is viewed positively, with expectations for substantial revenue contributions from new products in the Adjacent Markets segment [12][13].