Geospace Technologies Corporation

For the third quarter ended June 30, 2026, Geospace reported revenue of $15.8 million versus $24.8 million a year ago, and a net loss of $9.7 million, or $0.75 per diluted share, compared with net income of $800,000, or $0.06 per diluted share, last year. For the first nine months of fiscal 2026, revenue was $61.1 million versus $80.1 million, and net loss was $30.5 million, or $2.37 per diluted share, versus a $700,000 loss, or $0.05 per diluted share, a year ago. By segment, Q3 Smart Water revenue was $4.6 million, down 56%; Energy Solutions revenue was $5.9 million, down 28%; and Intelligent Industrial revenue was $5.2 million, down 14%. Management said it would not provide specific revenue or earnings guidance, but expects revenue recognition on the Navy contract in fiscal 2027 and completion in fiscal 2028, while the PRM contract is now expected to run through about fiscal Q3 to Q4 of fiscal 2027.

Rich Kelley said the quarter reflected tough market conditions, including geopolitical uncertainty, project timing, lower sales volumes and customer access to capital, as well as margin pressure from mix, inflation, raw materials and component availability. He emphasized that Geospace is using cost reductions and manufacturing productivity improvements to offset some of the pressure, and he framed the company as well positioned over the long term because of its diversified, technology-driven portfolio. He also highlighted strategic progress in Smart Water with the Series V connector, the Navy award through Quantum Technology Sciences, and the fact that the PRM contract has moved into full production.

Robert Curda quantified the quarter’s decline and said Q3 revenue was $15.8 million, down from $24.8 million, with a net loss of $9.7 million versus net income of $800,000 last year. He noted nine-month revenue of $61.1 million versus $80.1 million and a nine-month net loss of $30.5 million versus a $700,000 loss last year. He also said operating expenses fell by $1.2 million in the quarter and $400,000 over nine months, cash investment in plant and equipment was $3.3 million for the nine-month period, and the company ended the quarter with $25 million of available borrowings plus $41 million of working capital, including $17 million of trade accounts and financing receivables. On cash, he said the company is managing spending closely and expects its bank facility to help it reach the next Petrobras milestone payment.

Analysts focused on the PRM contract delay, asking whether the customer’s engineering changes altered the economics or competitive position. Management said there was no financial impact, the total contract value is unchanged, and the issue was only a quarter timing shift tied to layout changes and rerouting sensors and cables. They also asked about the next PRM opportunity and Petrobras; management said Petrobras still views PRM as part of its long-term strategy, but no new proposal timing is firm. On the Navy contract, management said it is an SBIR project combining Quantum SADAR and Geospace PRM technology, with revenue recognized over time in fiscal 2027 and completion in fiscal 2028, and that it is more of a proof that Geospace can meet technical expectations before any larger-scale follow-on.