0001437749-26-015666
SEC filingGeospace Technologies reported Q2 FY2026 revenue of $19.7 million and net loss of $11.1 million, with segment revenue declines in Smart Water offset by Energy Solutions growth, alongside workforce reductions for $12 million annualized savings.
Geospace Technologies reported second quarter fiscal 2026 results reflecting mixed segment performance amid its diversification strategy. Total revenue rose slightly to $19.7 million from $18.0 million year-over-year, driven by a sharp 272.1% increase in Energy Solutions to $9.6 million from PRM contract revenue, Pioneer land wireless deliveries to Dawson Geophysical, partially offset by lower ocean bottom node utilization. Smart Water revenue fell 60.6% to $3.7 million due to inventory normalization for Hydroconn products following prior-year order surges, though management anticipates order upticks from smart meter implementations amid water scarcity trends. Intelligent Industrial revenue grew modestly 7.1% to $6.3 million from sensors and contract manufacturing, including initial Heartbeat Detector contributions. Despite revenue stability, net loss widened to $11.1 million or $(0.86) per share from $9.8 million, with six-month losses at $20.8 million versus $1.4 million prior year. CEO Rich Kelley emphasized long-term diversification beyond oil and gas, citing new contract wins, Permanent Reservoir Monitoring milestone, and Pioneer interest despite Middle East conflict impacts. To align costs, the company enacted a 20% workforce reduction via early retirement and cuts, targeting $12 million annualized savings with $1.3 million restructuring charges in Q2/Q3 FY2026. Balance sheet shows $13.4 million cash, $45.4 million working capital, and $25 million credit availability with no debt. A conference call is scheduled for May 8, 2026.