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Geospace Technologies (GEOS)
NASDAQ:GEOS
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Geospace Technologies (GEOS) AI Stock Analysis

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GEOS

Geospace Technologies

(NASDAQ:GEOS)

Rating:62Neutral
Price Target:
$18.00
▲(1.81% Upside)
Geospace Technologies' stock score is primarily influenced by its financial performance challenges, particularly in profitability and cash flow. While technical indicators suggest positive momentum, valuation concerns due to a negative P/E ratio and lack of dividends weigh on the score. The earnings call provides a mixed outlook, with strategic wins balanced by operational challenges.

Geospace Technologies (GEOS) vs. SPDR S&P 500 ETF (SPY)

Geospace Technologies Business Overview & Revenue Model

Company DescriptionGeospace Technologies (GEOS) is a leading provider of advanced geophysical equipment and data processing services, primarily serving the oil and gas industry, as well as other sectors such as mining and environmental monitoring. The company specializes in designing and manufacturing a range of products, including seismic sensors, data acquisition systems, and software solutions for seismic data processing and interpretation. With a focus on innovation and technology, Geospace Technologies aims to enhance the efficiency and effectiveness of subsurface exploration and monitoring.
How the Company Makes MoneyGeospace Technologies generates revenue through the sale of its geophysical equipment, including seismic sensors and data acquisition systems, to customers in the oil and gas sector. Additionally, the company offers software solutions for seismic data processing, which further contributes to its revenue. A significant portion of its earnings is derived from service contracts that involve data acquisition and processing for clients conducting subsurface exploration. The company also engages in partnerships and collaborations with industry players, which can provide additional revenue opportunities and enhance its market presence. Key factors contributing to its earnings include the demand for energy resources, advancements in technology, and the company's ability to innovate and deliver high-quality products and services.

Geospace Technologies Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q3-2025)
|
% Change Since: 2.08%|
Next Earnings Date:Nov 20, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant strategic accomplishments, such as the major contract with Petrobras and growth in the Smart Water segment. However, these positives were balanced by declines in the Energy Solutions and Intelligent Industrial segments, increased operating expenses, and an overall revenue drop for the nine-month period. The sentiment of the call is neutral, reflecting both progress and challenges.
Q3-2025 Updates
Positive Updates
Net Income Improvement
Geospace Technologies reported a net income of $0.8 million for the third quarter, a significant improvement from last year's net loss of $2.1 million for the same period.
Smart Water Segment Growth
The Smart Water segment produced revenue of $10.5 million for the quarter, marking a 6% increase from last year, and a 33% increase for the nine-month period, driven by higher demand for Hydroconn connectors.
Major Contract with Petrobras
Geospace secured a permanent reservoir monitoring contract worth over $80 million with Petrobras for the Mero Field 3 & 4, which will be recognized over 16 to 18 months.
Launch of AquaLink
The company launched AquaLink, an IoT endpoint for water monitoring, expected to drive growth in the Smart Water segment.
Acquisition of Heartbeat Detector
The acquisition of Heartbeat Detector, a security technology, aligns with the company's strategy to grow recurring revenue streams.
Negative Updates
Decline in Energy Solutions Revenue
Revenue from the Energy Solutions segment decreased by 14% for the quarter and 42% for the nine-month period due to lower sales of marine ocean bottom nodes.
Intelligent Industrial Segment Decline
The Intelligent Industrial segment saw a 5% decrease in quarterly revenue and an 8% decrease for the nine-month period, primarily due to lower demand for surveillance and defense products.
Increased Operating Expenses
Operating expenses increased by $900,000 (8%) for the quarter and $5.4 million (18%) for the nine-month period due to higher personnel and marketing costs.
Overall Revenue Decline for Nine Months
For the first nine months, revenue decreased from $100.2 million last year to $80.1 million, with a net loss of $0.7 million compared to last year's net income of $6.3 million.
Company Guidance
During the Geospace Technologies Third Quarter 2025 Earnings Conference Call, guidance was provided on several key metrics. The company reported third-quarter revenue of $24.8 million, with a net income of $0.8 million, compared to the same quarter last year, when revenue was $24.9 million and a net loss of $2.1 million. For the first nine months of fiscal year 2025, revenue totaled $80.1 million, resulting in a net loss of $0.7 million, a decrease from the $6.3 million net income reported in the same period last year. The Smart Water segment showed strong performance, generating $10.5 million in revenue for the quarter, an increase of 6% from the previous year. The Energy Solutions segment, however, saw a 14% decline in quarterly revenue to $8.1 million. The Intelligent Industrial segment also experienced a decrease, with revenue totaling $6.1 million, down 5% from the prior year. The company highlighted its strategic diversification efforts, including a significant contract with Petrobras for the Mero Field, anticipated to generate over $80 million in revenue, and the acquisition of the Heartbeat Detector technology. Operating expenses increased by $900,000 for the quarter and $5.4 million over the nine-month period, attributed to higher personnel and sales costs. The company maintains a strong financial position with $25.6 million in cash and short-term investments, and a $15 million credit facility with no borrowings.

Geospace Technologies Financial Statement Overview

Summary
Geospace Technologies faces significant profitability and cash flow challenges, despite a strong equity position. The company needs to address operational inefficiencies and improve its ability to generate positive cash flow to enhance its financial health.
Income Statement
55
Neutral
The company's revenue growth has been inconsistent, with a notable decline in the most recent TTM period. Gross profit margin is improving, but net profit margin remains negative, indicating profitability challenges. EBIT and EBITDA margins have also shown volatility, reflecting operational inefficiencies.
Balance Sheet
68
Positive
The balance sheet shows a strong equity position with a low debt-to-equity ratio, indicating financial stability. Return on equity is negative, highlighting profitability issues, but the equity ratio is high, suggesting a solid asset base.
Cash Flow
45
Neutral
Cash flow performance is weak, with negative operating cash flow and declining free cash flow, indicating liquidity issues. The operating cash flow to net income ratio is negative, further emphasizing the company's struggle to generate cash from operations.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue115.53M135.60M124.51M89.25M94.86M87.83M
Gross Profit45.37M52.57M51.69M18.04M16.29M23.43M
EBITDA-2.29M8.49M26.25M-3.06M7.30M7.14M
Net Income-13.52M-6.58M12.21M-22.86M-14.06M-19.24M
Balance Sheet
Total Assets149.83M152.19M153.04M135.06M163.93M186.84M
Cash, Cash Equivalents and Short-Term Investments25.56M37.12M33.72M17.00M23.56M32.69M
Total Debt368.00K512.00K769.00K1.01M1.23M0.00
Total Liabilities15.54M17.57M20.33M13.41M21.47M25.88M
Stockholders Equity134.29M134.62M132.72M121.65M142.46M160.97M
Cash Flow
Free Cash Flow-25.94M-12.94M1.67M-16.00M-12.48M9.72M
Operating Cash Flow-19.68M-9.08M15.56M-10.04M-7.17M18.12M
Investing Cash Flow35.32M3.82M-11.88M14.15M-3.32M-4.05M
Financing Cash Flow-4.00M-6.38M-525.00K-1.71M-8.23M-78.00K

Geospace Technologies Technical Analysis

Technical Analysis Sentiment
Positive
Last Price17.68
Price Trends
50DMA
13.70
Positive
100DMA
10.02
Positive
200DMA
9.87
Positive
Market Momentum
MACD
1.10
Positive
RSI
64.25
Neutral
STOCH
80.05
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GEOS, the sentiment is Positive. The current price of 17.68 is above the 20-day moving average (MA) of 16.26, above the 50-day MA of 13.70, and above the 200-day MA of 9.87, indicating a bullish trend. The MACD of 1.10 indicates Positive momentum. The RSI at 64.25 is Neutral, neither overbought nor oversold. The STOCH value of 80.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GEOS.

Geospace Technologies Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$88.32M7.6812.76%19.15%-71.62%
65
Neutral
$14.81B7.143.01%5.53%4.29%-62.49%
62
Neutral
$218.40M-9.95%-10.77%-229.81%
57
Neutral
$64.90M26.47-4.23%9.74%-132.61%
51
Neutral
$84.94M108.790.33%3.43%-36.73%
47
Neutral
$42.23M-38.69%-38.69%-30.53%
41
Neutral
$31.93M-375.26%-13.29%-106.14%
* Energy Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GEOS
Geospace Technologies
17.68
7.58
75.05%
DWSN
Dawson Geophysical Company
1.45
-0.08
-5.23%
SND
Smart Sand
1.99
0.08
4.19%
NCSM
Ncs Multistage Holdings
35.01
14.81
73.32%
KLXE
KLX Energy Services Holdings
1.78
-5.67
-76.11%
DTI
Drilling Tools International
1.81
-2.26
-55.53%

Geospace Technologies Corporate Events

Executive/Board ChangesShareholder Meetings
Geospace Technologies Announces Leadership Transition
Neutral
Nov 26, 2024

Geospace Technologies Corporation announces leadership changes as Gary D. Owens steps down as Chairman, with Stephen C. Jumper taking over the role immediately. Owens, a board member since 1997, will not seek re-election, marking a significant transition ahead of the February 2025 shareholders meeting.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025