Genasys Inc. Reports 21% Revenue Growth to $6.93 Million in Q2 Fiscal 2025

Genasys Inc. reported its financial results for the second quarter of fiscal 2025, revealing a total revenue of $6.93 million, a 21% increase from $5.74 million in the same quarter of the previous year. The growth was driven by a rise in both product sales and contract revenues, with product sales contributing $3.07 million and contract revenues reaching $3.86 million. The company’s gross profit for the quarter was $2.61 million, up from $2.18 million year-over-year, reflecting improved margins primarily due to higher software revenue.

In terms of profitability, Genasys recorded a net loss of $6.14 million, or $(0.14) per share, compared to a net loss of $6.94 million, or $(0.16) per share, in the prior year’s quarter. The decrease in net loss was attributed to a reduction in operating expenses, which fell to $8.87 million from $9.17 million, alongside an increase in other income, which included gains from the change in fair value of warrants. For the six months ended March 31, 2025, total revenues were $13.87 million, a 37% increase from $10.10 million in the same period last year.

Operationally, Genasys has made significant strides, including the acquisition of Evertel Technologies, which enhances its software capabilities in the public safety sector. The company has also expanded its customer base, with notable contracts awarded by the U.S. Bureau of Reclamation and the Maui Emergency Management Agency. As of March 31, 2025, Genasys had 45,154,504 shares of common stock outstanding, reflecting a slight increase from the previous period.

The company’s cash and cash equivalents stood at $5.67 million, up from $4.95 million at the end of the previous fiscal year. Genasys has also reported a significant backlog of orders, particularly related to the Puerto Rico Early Warning System project, which is expected to contribute to future revenue growth. The company anticipates that the ongoing investments in its Genasys Protect software platform will continue to drive revenue growth, despite the challenges posed by market conditions and the timing of government contracts.

Looking ahead, Genasys remains optimistic about its growth trajectory, citing strong market opportunities in defense, public safety, and emergency management sectors. The company plans to leverage its innovative technology and expand its product offerings to meet the increasing demand for protective communication solutions. However, it acknowledges potential risks related to inflation, supply chain disruptions, and the economic conditions in Puerto Rico that could impact its operations and financial performance.