Geospace Technologies Reports Q3 2025 Revenue of $24.8 Million, Net Income of $0.8 Million

Geospace Technologies Corporation reported its financial results for the third quarter of fiscal year 2025, revealing a total revenue of $24.8 million for the three months ended June 30, 2025, a decrease of 3.9% compared to $25.9 million in the same period last year. The decline was primarily attributed to reduced utilization of the ocean bottom nodes rental fleet within the Energy Solutions segment. For the nine months ended June 30, 2025, total revenue was $80.1 million, down 20% from $100.2 million in the prior year, largely due to lower product revenue from the Energy Solutions segment, which included a significant sale of ocean bottom nodes structured as a sales-type lease.

The company's gross profit for the quarter was $7.5 million, reflecting an 11.6% decrease from $8.5 million in the previous year. This decline was mainly due to reduced rental revenue from ocean bottom nodes, although it was partially offset by increased sales of traditional seismic products. For the nine-month period, gross profit fell to $29.4 million, down 19.7% from $36.6 million in the prior year, driven by lower product revenue and increased tariffs on raw materials. Operating expenses rose to $11.8 million for the quarter, a 7.9% increase, and $36.1 million for the nine months, up 17.7%, primarily due to higher personnel costs and increased sales and marketing expenses.

Geospace's Smart Water segment showed growth, with revenue increasing by 6.1% to $10.5 million for the three months ended June 30, 2025, and by 32.7% to $27.3 million for the nine months. This growth was driven by increased demand for Hydroconn® cable and connector products. In contrast, the Energy Solutions segment experienced a 13.6% decline in revenue for the quarter, totaling $8.1 million, and a 42% decrease for the nine months, reflecting lower demand for ocean bottom nodes. The Intelligent Industrial segment also saw a slight revenue decrease of 5.4% for the quarter and 7.6% for the nine months.

The company reported a net income of $0.8 million for the quarter, compared to a loss of $2.1 million in the same period last year. For the nine months, Geospace recorded a net loss of $0.7 million, a significant decline from a net income of $6.3 million in the prior year. The improved quarterly performance was bolstered by a $4.6 million gain from the sale of property. Looking ahead, Geospace Technologies remains focused on diversifying its product offerings and expanding its market presence, particularly in the Smart Water and Intelligent Industrial segments, while navigating the challenges in the Energy Solutions segment. The company maintains a strong balance sheet with $25.6 million in cash and short-term investments as of June 30, 2025, positioning it well for future growth opportunities.