Financial Data and Key Metrics Changes - In Q4 2025, Genasys generated $17 million in revenue, representing a 73% sequential increase and a 153% year-over-year growth, marking the largest revenue quarter in the company's history [12] - Gross profit margin for the quarter was 50.3%, primarily due to a more favorable hardware mix, with expectations for margins to normalize around 50% moving forward [12][15] - Operating income was $1.3 million compared to an operating loss of $7.1 million in the prior year, indicating significant improvement [12] - Adjusted EBITDA was positive at $2.4 million, a turnaround from an adjusted EBITDA loss of $6 million in the year-ago period [13] - For the full year 2025, Genasys generated $40.8 million in revenue, up roughly 70% from 2024, with hardware revenues growing over 91% [14] Business Line Data and Key Metrics Changes - Hardware revenues grew over 91% in fiscal 2025, with $13.2 million coming from the Puerto Rico project [14] - Software revenue increased by 21% compared to 2024, indicating growth potential in this segment [15] Market Data and Key Metrics Changes - The company reported a backlog of more than $60 million as of September 30, 2025, reflecting strong demand and future revenue potential [5] - The Puerto Rico project recognized $13.2 million in revenue during fiscal 2025, with expectations for completion in 2027 [10] Company Strategy and Development Direction - Genasys aims to leverage its credibility gained from executing large projects to capture new business opportunities and grow its pipeline [6] - The company is focusing on expanding its software solutions, particularly in law enforcement and government agencies, as demand for advanced safety and communication solutions continues to grow [7][9] - A partnership with Julie Parker Communications is expected to enhance the company's outreach and positioning within key decision-making circles [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 with significant year-over-year revenue growth expectations in both hardware and software businesses, alongside a commitment to maintaining 50% margins [19] - The company highlighted the increasing demand for reliable protective communication systems in light of frequent emergencies and natural disasters [19] Other Important Information - As of September 30, 2025, cash, cash equivalents, and marketable securities totaled $8 million, down from $13.1 million a year earlier, but management believes there is sufficient capital to meet debt obligations [17] Q&A Session Summary Question: What was the software mix in the quarter? - Software revenue was roughly around $2.2 million, flat compared to the last quarter, but expected to increase going forward [24] Question: What are the expectations for CROWS revenue? - CROWS is likely to be a second-half revenue generator, with most contributions expected in Q3 [23] Question: Are there visibility and follow-ons for CROWS? - Visibility into follow-ons is tied to the budgeting process, with expectations for clarity as the fiscal year progresses [26] Question: What type of projects are in the pipeline? - Projects are similar to the Puerto Rico initiative, focusing on flood management in various regions [30] Question: What are the revenue growth expectations for 2026? - The company expects to be profitable in FY26, with a significant addressable backlog of $60 million [32] Question: Has competition changed with increased interest in products? - There have been no noticeable changes in competition in either software or hardware [35] Question: What are the expectations regarding debt service? - Management expects cash flow to support paying off the entire debt on time [42]