Genasys Inc. Reports 38% Revenue Growth in Q3 Fiscal 2025, Despite Net Loss

Genasys Inc. reported its financial results for the third quarter of fiscal 2025, revealing a total revenue of $9.857 million, a 38% increase from $7.167 million in the same period last year. The growth was driven primarily by a significant rise in product sales, which reached $7.001 million, up from $4.576 million, and contract revenues, which increased to $2.856 million from $2.591 million. Despite the revenue growth, the company experienced a gross profit decline to $2.597 million, down 31% from $3.784 million in the prior year, attributed to increased costs and a less favorable product mix.

In terms of profitability, Genasys reported a net loss of $6.487 million for the quarter, slightly improved from a loss of $6.682 million in the same quarter of the previous year. The loss per share was $0.14, compared to $0.15 in the prior year. For the nine months ended June 30, 2025, the company recorded a net loss of $16.704 million, an improvement from a loss of $20.344 million in the same period last year. The total revenues for the nine-month period were $23.729 million, a 37% increase from $17.267 million.

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 including a four-year agreement with the Maui Emergency Management Agency and a contract with Los Angeles County for mass notification software services. As of June 30, 2025, Genasys reported a total of 45.155 million shares outstanding, reflecting ongoing equity activities, including stock options and restricted stock units.

The company’s cash and cash equivalents increased to $5.339 million from $4.945 million as of September 30, 2024. However, Genasys reported cash used in operating activities of $11.271 million for the nine months ended June 30, 2025, indicating ongoing liquidity challenges. The company has taken steps to address these challenges, including securing a $4,000 term loan in May 2025 and a follow-on equity offering in October 2023.

Looking ahead, Genasys remains optimistic about its growth prospects, particularly with the anticipated revenue from the Early Warning System contract for Puerto Rico and the new Common Remotely Operated Weapon Station program for the U.S. Department of Defense. The company plans to continue investing in its Genasys Protect software platform and expanding its market presence in the defense and public safety sectors, despite the challenges posed by inflation and supply chain disruptions.