10-Q · May 14, 2026
Genasys Inc. reported Q2 2026 results with total revenue of $15.5 million, reflecting a 124% increase year-over-year, while achieving a reported EPS of $0.02, marking a return to profitability. Strong growth was driven…
Earnings analysis · 10-Q
GNSS earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
Fiscal Q3 revenue of $7.295 million materially missed the $12.9 million consensus estimate, and diluted EPS of $(0.10) missed the $0.03 estimate. Gross margin remained strong at 57.1% and improved substantially year…
Read full summary
Fiscal Q3 revenue of $7.295 million materially missed the $12.9 million consensus estimate, and diluted EPS of $(0.10) missed the $0.03 estimate. Gross margin remained strong at 57.1% and improved substantially year over year, while backlog exceeded $69 million. However, the sequential revenue decline, $3.1 million of cash and securities, and additional Eaton Fire litigation offset the margin and backlog positives. Management retained its expectation for a strong fourth quarter and record fiscal-year revenue and profitability but provided no quantitative guidance range.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-0.1
- Gross margin
- 57.1%
What stood out
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Revenue declined sequentially and year over year
Revenue was $7.295 million, down approximately 54.4% from $16 million in the prior quarter and 27.1% from $10 million in the year-ago quarter.
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Gross margin remained sharply above prior year
Gross margin was 57.1%, down 6.2 percentage points from 63.3% in the prior quarter but up 30.7 percentage points from 26.4% a year earlier.
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EPS missed estimates and reversed sequentially
Diluted EPS was $(0.10), versus $0.02 in the prior quarter and $(0.14) in the year-ago quarter; EPS missed the $0.03 consensus estimate.
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Backlog exceeded $69 million
Backlog exceeded $69 million, providing a material future revenue opportunity despite the $7.295 million quarterly revenue result.
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Management retained record-year outlook
Management stated that it expects a strong fiscal fourth quarter and remains on track for a record fiscal year of revenue and profitability, although no quantitative range was disclosed.
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Controls remained effective
Disclosure controls were concluded effective at the reasonable assurance level as of June 30, 2026, and the company reported no changes in internal control that materially affected reporting.
What to watch
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Constrained liquidity
Cash and securities were $3.1 million, while quarterly revenue was $7.295 million and the company continues to face debt and liquidity obligations. The low liquidity balance increases sensitivity to customer-payment timing and fourth-quarter execution.
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Additional Eaton Fire litigation
A new Eaton Fire complaint was filed on May 7, 2026, and the company was served on June 30, 2026; the plaintiff seeks unspecified damages, and management cannot meaningfully estimate the likelihood or amount of loss.
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Wildfire litigation exposure
The Edison Defendants' cross-complaint names the company and 11 other entities and seeks unspecified contribution related to the Eaton Fire. The company states that it cannot assess the probability or range of loss and will vigorously defend the matter.
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Warrant amendment raises dilution risk
The company extended the exercise period of 3,068,182 warrants from May 13, 2029 to May 13, 2030 and reduced the exercise price from $2.53 to $2.28 per share, potentially increasing future dilution if exercised.
Management's outlook
Management expects a strong fiscal fourth quarter and continues to expect a record fiscal year of revenue and profitability, but provided no quantitative revenue or EPS range.
Earlier filings 4
10-Q · February 10, 2026
Genasys Inc. reported strong Q1 2026 results with $17 million in revenue, representing a significant 146% increase year-over-year. However, the company still recorded a net loss of $0.02 per share, missing EPS estimates…
10-K · December 15, 2025
Genasys Inc. reported significant growth in Q4 2025, achieving record revenues of $17 million, up from $10 million in the previous quarter. Despite posting a net loss of $18.1 million, improvements were noted in…
10-Q · August 14, 2025
Genasys Inc. reported a strong increase in revenue for Q3 2025, achieving $9.857 million, up 38% from $7.167 million in Q3 2024. However, despite the revenue growth, the company posted a loss of $6.487 million, slightly…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.