Geospace Technologies Corporation reported a significant decline in financial performance for the second quarter of fiscal year 2025, with total revenue of $18.0 million, a decrease of 25.7% compared to $24.3 million in the same period last year. The decline was primarily attributed to reduced rental revenue from the Energy Solutions segment, which faced challenges in collectability from a rental customer, resulting in a negative rental revenue of $0.7 million for the quarter. For the six months ended March 31, 2025, total revenue was $55.2 million, down 25.6% from $74.3 million in the prior year.
The company's gross profit for the quarter was $1.7 million, a decrease of 70.3% from $5.9 million in the previous year, largely due to lower revenue from both wireless products and rental services. Operating expenses increased by 15.8% to $12.0 million for the quarter, driven by higher personnel costs and increased research and development expenditures. Consequently, Geospace reported an operating loss of $10.3 million for the quarter, compared to a loss of $4.5 million in the same period last year.
In terms of segment performance, the Smart Water segment saw a revenue increase of 47.7% to $9.5 million, driven by higher demand for Hydroconn® cable and connector products. However, the Energy Solutions segment experienced a dramatic revenue drop of 76.5% to $2.6 million, primarily due to decreased demand for marine and land wireless products. The Intelligent Industrial segment also reported a revenue decline of 12.8% to $5.9 million, attributed to lower demand for imaging products and the completion of a government contract in the previous fiscal year.
Geospace Technologies continues to maintain a strong balance sheet, with cash and cash equivalents totaling $19.8 million as of March 31, 2025. The company has no outstanding debt and has begun negotiations for a maturity extension on its credit agreement with Woodforest National Bank, which provides a revolving credit facility of up to $15 million. Looking ahead, Geospace anticipates continued growth in its Smart Water segment, particularly from its Aquana smart water valve and IoT technology products, while the Energy Solutions segment remains vulnerable to market fluctuations and economic downturns.
About GEOSPACE TECHNOLOGIES CORP
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