Genasys Inc.

Revenue in fiscal Q3 2026 was $7.3 million, down from $9.9 million in the prior-year period. Gross profit margin was 57.1% versus 26.3% in fiscal Q3 2025. Software revenue was $2.7 million, up 21% year over year and up 12% sequentially. GAAP net loss was $4.7 million, or $0.10 per share, versus a GAAP net loss of $6.5 million, or $0.14 per share, a year ago. Adjusted EBITDA improved to a loss of $3.1 million from a loss of $84.8 million in the prior-year period. 12-month backlog ended at approximately $69 million versus $58.2 million at the end of Q2. Cash, cash equivalents, and marketable securities were $3.1 million as of 06/30/2026, versus $8 million at 9/30/2025. Management did not give formal next-quarter or full-year numeric guidance, but said fiscal 2026 remains expected to be a record year for both revenue and profitability, with Puerto Rico expected to be a meaningful Q4 contributor and the $9 million CROWS order expected to complete delivery within the fiscal year.

Richard Danforth framed the quarter as a timing-driven miss rather than a demand issue, pointing to the resolved CROWS supply-chain constraint and the restart of Puerto Rico collections. He emphasized momentum in software wins, especially the Ada County displacement win, and highlighted integrations with partners like Cal Fire and Peregrine as ways to deepen Genasys Protect’s stickiness. His tone was confident and expansionary, repeatedly saying the company is on pace for a record year and that demand across hardware and software is as strong as ever.

Cassandra Hernandez-Monteon focused on the quarter’s mix, margin improvement, and balance-sheet flexibility. She noted gross margin of 57.1%, operating expenses of $8.2 million, SG&A of $6.1 million, and R&D of $2.1 million, all reflecting actions to align spending with cash flow and near-term priorities. She also highlighted the $69 million 12-month backlog, the $4.7 million GAAP net loss, improved adjusted EBITDA, $3.1 million in cash and marketable securities, and the July amendment that extended the term-loan maturity to July 2027.

Analysts focused on the Ada County win, the competitiveness of displacement against legacy alerting systems, and whether that win could translate into broader Idaho and other-county adoption. Management said customers prefer Genasys for its simplicity and intuitiveness and believes counties across the country will switch when existing contracts expire. Questions also centered on Puerto Rico collections and project timing; management said it collected $2.99 million in the last 4 weeks, work resumed after quarter-end, and the pause should not hurt profitability, while weather could affect fourth-quarter execution. On hardware, management said the utility-critical-infrastructure pipeline is broad and growing, with the company seeing more follow-on orders across substations, dams, ports, and data centers.