Genasys Inc. Reports 59% Revenue Growth to $6.94 Million in Q1 Fiscal 2025

Genasys Inc. reported a significant increase in financial performance for the first quarter of fiscal 2025, with total revenues reaching $6.94 million, a 59% increase from $4.36 million in the same period last year. The growth was driven by a notable rise in both product sales, which amounted to $4.14 million, and contract revenues, which totaled $2.80 million. The company also reported a gross profit of $3.18 million, up from $1.48 million a year earlier, reflecting improved margins due to higher hardware and software sales.

Despite the revenue growth, Genasys experienced a net loss of $4.08 million, or $(0.09) per share, compared to a net loss of $6.72 million, or $(0.15) per share, in the prior year. The increase in operating expenses to $9.12 million, up from $8.71 million, was attributed to higher professional services and insurance costs, although the company managed to reduce some compensation-related expenses. The loss from operations decreased from $7.23 million to $5.94 million, indicating improved operational efficiency.

Strategically, Genasys completed the acquisition of Evertel Technologies in October 2023, enhancing its capabilities in the public safety market. The company has also secured several contracts, including a four-year agreement with the Maui Emergency Management Agency and a maintenance agreement with the Indian Navy, which are expected to contribute to future revenue growth. Genasys continues to invest in its Genasys Protect software platform, which is designed for emergency communication and management.

Operationally, Genasys reported an increase in customer engagement, with a growing backlog of orders and a 69% rise in recurring software revenue. The company’s cash and cash equivalents increased to $8.47 million as of December 31, 2024, compared to $4.95 million at the end of the previous quarter. This improvement in liquidity is partly due to a follow-on equity offering that raised $11.5 million in October 2023, alongside a $15 million term loan secured in May 2024.

Looking ahead, Genasys remains optimistic about its growth trajectory, particularly in the defense and public safety sectors, where demand for its protective communication solutions is expected to rise. The company plans to leverage its recent contracts and ongoing investments in technology to enhance its market position and drive future revenue growth. However, Genasys acknowledges potential challenges, including the impact of inflation and supply chain disruptions, which could affect its operational costs and product pricing strategies.