Genasys (GNSS) - 2025 Q2 - Quarterly Results

Management Commentary & Business Highlights Genasys anticipates significant operational acceleration in H2 FY2025, driven by the Puerto Rico project, with Q2 revenue up 21% to $6.9 million and reduced net loss Fiscal Q2 2025 Financial Summary vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Revenue | $6.9 million | $5.7 million | | GAAP Operating Loss | ($6.3) million | ($6.9) million | | GAAP Net Loss | ($6.1) million | ($7.0) million | | GAAP Net Loss per Share | ($0.14) | ($0.16) | | Adjusted EBITDA | ($5.1) million | ($5.7) million | - The CEO anticipates significant operational acceleration in the second half of fiscal 2025, with strong revenue growth expected, particularly in the fourth quarter[2] - The company secured $4 million in bridge financing from its existing lender to maintain backlog momentum, with access to an additional $4 million[2][4] - Key business highlights include generating first revenues from the Puerto Rico dams project, securing $2.5 million in LRAD bookings with the US Military, and $1.0 million in LRAD orders for Critical Infrastructure Protection, alongside the CFO's announced retirement[4] Business Outlook Genasys expects $15-20 million in Puerto Rico project revenue in FY2025, with strong hardware bookings up 48% and a $12 million backlog, despite slower software bookings - The company expects to realize between $15 million and $20 million in Puerto Rico-related revenue in fiscal 2025[7] - Revenue for the Puerto Rico project will be recognized on a Percent Of Completion (POC) basis for labor, initially suppressing gross profit margins[6] - Hardware bookings through March are up 48% year-over-year, with a current hardware backlog exceeding $12 million (excluding Puerto Rico)[7] - Software bookings slowed in the March quarter due to federal funding uncertainties affecting state and local procurements, despite the pipeline being up over 100%[8] - The company expects to receive the first production purchase order under the AHD-CROWS program in the second half of fiscal 2025[7] Fiscal Q2 2025 Financial Review Q2 2025 revenue increased 21% to $6.9 million, with ARR at $8.6 million, a 37.7% gross margin, and a reduced GAAP net loss of ($6.1) million Q2 2025 Revenue Growth vs. Q2 2024 | Revenue Stream | Growth YoY | | :--- | :--- | | Total Revenue | 21% | | Software Revenue | 29% | | Hardware Revenue | 17% | | Recurring Revenue | 28% | - Annual Recurring Revenue (ARR) finished the quarter at $8.6 million[10] - Gross profit margin was 37.7%, compared to 37.9% in Q2 2024, depressed by hardware underutilization and increased software system costs[11] - Operating expenses decreased to $8.9 million from $9.2 million in Q2 2024, with R&D expenses down 12% to $2.2 million[12] - Cash, cash equivalents, and marketable securities totaled $7.2 million as of March 31, 2025, a decrease from $13.1 million as of September 30, 2024[13] Financial Statements This section provides unaudited consolidated financial statements, including Balance Sheets and Statements of Operations for specified periods Consolidated Balance Sheets As of March 31, 2025, total assets were $49.7 million, total liabilities $41.7 million, and stockholders' equity $8.1 million Selected Balance Sheet Items (in thousands) | Account | March 31, 2025 | September 30, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $5,667 | $4,945 | | Total current assets | $23,420 | $26,140 | | Total assets | $49,721 | $53,936 | | Total current liabilities | $22,621 | $14,085 | | Total liabilities | $41,665 | $36,373 | | Total stockholders' equity | $8,056 | $17,563 | Consolidated Statements of Operations For Q2 2025, revenues were $6.9 million, gross profit $2.6 million (37.7% margin), and net loss ($6.1) million, with Adjusted EBITDA at ($5.1) million Consolidated Statements of Operations (Three Months Ended March 31, in thousands) | Metric | 2025 (unaudited) | 2024 (unaudited) | | :--- | :--- | :--- | | Revenues | $6,932 | $5,739 | | Gross Profit | $2,610 | $2,177 | | Gross Profit % | 37.7% | 37.9% | | Loss from operations | ($6,255) | ($6,994) | | Net loss | ($6,139) | ($6,938) | | Net loss per share | ($0.14) | ($0.16) | Reconciliation to Adjusted EBITDA (Three Months Ended March 31, in thousands) | Metric | 2025 (unaudited) | 2024 (unaudited) | | :--- | :--- | :--- | | Net loss | ($6,139) | ($6,938) | | Adjustments | $990 | $1,199 | | Adjusted EBITDA | ($5,149) | ($5,739) | Webcast and Conference Call Details Management hosted a conference call and webcast on May 13, 2025, to discuss Q2 2025 financial results, with a replay available online - Management hosted a conference call to discuss the financial results on May 13, 2025, at 4:30 p.m. Eastern Time / 1:30 p.m. Pacific Time[15] - A webcast of the call was made available, with a replay accessible on the investors page of the company's website approximately four hours after the presentation[16] About Genasys Inc. & Forward-Looking Statements Genasys Inc. is a global leader in Protective Communications, with this report containing forward-looking statements subject to inherent risks and uncertainties - Genasys is the global leader in Protective Communications, with its platform and devices protecting over 155 million people in all 50 US states and over 100 countries[17] - The report contains forward-looking statements subject to risks and uncertainties as outlined in the "Risk Factors" section of the Company's Form 10-K, with Genasys disclaiming any obligation to update these statements[18]