GNSS · Genasys Inc.

Genasys Inc. achieved a significant turnaround in fiscal Q2 2026, reporting revenue of $15.5 million, a 123.7% increase from $6.9 million in the prior-year quarter, primarily driven by higher hardware revenue including progress on the Puerto Rico Dams Early Warning System (EWS) project and a $9.0 million LRAD order for the CROWS II program. This fueled a gross margin expansion to 63.3% from 37.7%, reflecting improved product mix and operational efficiencies. Operating expenses declined 3.7% to $8.5 million, with SG&A down 6.6%, leading to GAAP operating income of $1.3 million versus a $6.3 million loss last year, and net income of $0.7 million or $0.02 per share. Adjusted EBITDA swung to $2.5 million from a $5.1 million loss, underscoring core profitability. Balance sheet shows $0.9 million in cash and $14.6 million in notes payable as of March 31, 2026, with management anticipating near-term collections from Puerto Rico EWS to retire remaining debt. Concurrently, the company extended its Closing Date Term Loan maturity to July 13, 2026, from May 13, aligning with expected cash inflows, for a 1.0% fee capitalized into principal. CEO Richard Danforth highlighted sustained software sales velocity, with new municipal wins covering over 25.5 million California residents, and a $58 million backlog supporting outlook for record FY2026 revenue, gross margins over 50%, and net income profitability. Business highlights include Puerto Rico EWS progress (Groups 3,5,6 completed, Group 1 imminent), LRAD defense orders, and Genasys Protect expansions in multiple states, positioning for second-half acceleration.