Financial Data and Key Metrics Changes - For the fourth quarter of fiscal 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 a significant turnaround [12] - Adjusted EBITDA was positive at $2.4 million, compared to an adjusted EBITDA loss of $6 million in the year-ago period [13] - For the full year, 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, while excluding Puerto Rico, hardware revenues still grew over 12% [14] - Total software revenue in 2025 increased by 21% compared to 2024, indicating a strong growth driver for the company [14] Market Data and Key Metrics Changes - As of September 30, 2025, Genasys had a backlog of more than $60 million, reflecting strong demand and execution on major projects [5][12] - The company is experiencing increased interest from multiple countries and government agencies for large-scale deployments of its technology, particularly in the predictive communication space [7] Company Strategy and Development Direction - Genasys aims to drive significant year-over-year revenue growth in both hardware and software businesses, with expectations to maintain margins around 50% throughout the year [18] - The company is focused on expanding its software solutions, particularly in law enforcement and government agencies, as demand for advanced safety and communication solutions continues to grow [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver meaningful financial improvements in 2026, supported by a strong backlog and deep customer adoption [17][19] - The company anticipates that government funding will ramp back up, benefiting its software solutions significantly [9] Other Important Information - Genasys has partnered with Julie Parker Communications to enhance its outreach and support for agencies, broadening awareness of its software solutions [9] - The company expects to complete the Puerto Rico project by 2027, with significant revenue recognition anticipated in the coming years [10] Q&A Session Summary Question: What was the software mix in the quarter? - Software revenue was approximately $2.2 million in Q4, remaining flat compared to the previous quarter, but an increase is expected going forward [24] Question: What are the expectations for the CROWS initiative? - CROWS is expected to generate revenue primarily in the second half of the fiscal year, with most contributions likely occurring in Q3 [23] Question: Are there visibility and follow-ons for the CROWS contract? - There is visibility into follow-ons, but specific sizes and timings have not been disclosed publicly [25][26] Question: What types of projects are in the pipeline? - Projects similar to the Puerto Rico initiative are expected, focusing on flood management in various regions [33] Question: What are the revenue growth expectations for 2026? - The company expects to be profitable in FY26 and has a $60 million addressable backlog as it enters the fiscal year [34][35] Question: Has there been any change in competition? - There have been no noticeable changes in competition for either software or hardware [42] Question: What are the expectations regarding debt service? - The company expects cash flow to support paying off the entire debt on time [56]

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]

Company Overview - Genasys has a market capitalization of $150 million, with $14 million in cash and $15 million in debt as of December 31, 2024[7] - The company estimates a total addressable market (TAM) of $5.5 billion[7] - Genasys Protect platform is used in over 100 countries worldwide[7] Recent Contracts and Projects - Genasys received over $10 million in cash deposits for the first two approved groups of Puerto Rico dams[13] - FEMA approved over $41.3 million for the construction phase of the Early Warning System (EWS) for 17 dams in 12 municipalities in Puerto Rico[16] - The Puerto Rico Early Warning System (EWS) project is fully funded by FEMA for $94.3 million[17] CROWS EOF Program - The FY24 DOD Appropriations Bill added $20 million to the CROWS program ($5 million for RDT&E and $15 million for Procurement)[25] - Tech Feasibility Study phase II cost $950K[25] California Market - Genasys Protect covers 25 million of California's 39.5 million population[32] - Genasys Protect is used in 36 of California's 58 counties[32]