Genasys (GNSS) AI Stock Analysis

• Market Cap: $106.56M
• Dividend Yield: N/A
• Average Volume (3M): 231.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.40
• Revenue Growth: 8.95%
• EPS Growth: 14.34%
• Country: US
• Employees: 202
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): -0.13
• Shares Outstanding: 45,154,503
• 10 Day Avg. Volume: 90,053
• 30 Day Avg. Volume: 231,532
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 3.06
• Enterprise Value/Gross Profit: 8.37
• Enterprise Value/Ebitda: -4.14
• 1Y Price Target: $5.13
• Price Target Upside: 117.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 47 Neutral
• Price Target: $2.50 ▲(5.93% Upside)

The overall stock score reflects significant financial challenges, including persistent losses and high leverage, which weigh heavily on the score. While technical indicators show some positive trends, the negative valuation metrics and absence of profitability limit the stock's appeal.

Positive Factors

Revenue Growth

The significant revenue growth indicates strong demand for Genasys' solutions, particularly driven by the Puerto Rico project, which can enhance long-term financial stability and market position.

Strong Backlog

A robust backlog provides revenue visibility and stability, supporting future growth and allowing Genasys to plan strategically for long-term projects and investments.

Strategic Installations

Strategic installations enhance Genasys' market presence and demonstrate the effectiveness of its solutions, potentially leading to further adoption and expansion in similar markets.

Negative Factors

High Debt Levels

High leverage can limit financial flexibility and increase risk, potentially impacting Genasys' ability to invest in growth opportunities and weather economic downturns.

Operating Losses

Continued operating losses indicate challenges in achieving profitability, which can strain resources and necessitate cost-cutting measures, potentially affecting growth and innovation.

Cash Flow Challenges

Decreasing cash reserves highlight cash flow challenges, which can limit Genasys' ability to fund operations and invest in strategic initiatives, impacting long-term growth.

Genasys Business Overview & Revenue Model

Company Description

Genasys Inc. a global provider of critical communications hardware and software solutions worldwide. The company operates through two segments, Hardware and Software. It provides long range acoustic devices, such as acoustic hailing devices which are used to project sirens and audible voice messages; and Genasys Emergency Management, a software-based product line. The company also offers National Emergency Warning Systems, a software application that works with mobile carriers to send emergency communications to the public; Integrated Mass Notification Systems, an emergency response solution, uniting GEM Software and Genasys speaker system hardware; and GEM software to emails, voice calls, text messages, panic buttons, desktop alerts, television, social media, and others. It sells its products directly to governments, militaries, end-users, and commercial companies. The company was formerly known as LRAD Corporation. Genasys Inc. is based in San Diego, California.

How the Company Makes Money

Genasys generates revenue through multiple streams, primarily by selling its software and hardware solutions to government agencies, municipalities, and commercial enterprises. The company earns income from system sales, subscriptions for its software services, maintenance contracts, and training services associated with its products. Additionally, Genasys has established partnerships with various technology providers to enhance its product offerings and expand its market reach. These collaborations can lead to shared revenue opportunities and increased sales through bundled services. The growth of the emergency management sector, driven by heightened awareness of public safety and disaster preparedness, also contributes significantly to the company's earnings.

Genasys Financial Statement Overview

Summary

Genasys is facing significant financial challenges, with persistent losses and high leverage. Despite some revenue growth, profitability remains elusive. High debt levels and negative cash flow growth further exacerbate its financial position.

Income Statement

Genasys has experienced a challenging period with declining profitability. The TTM data shows a negative net profit margin of -101.82% and a negative EBIT margin of -66.36%, indicating significant operational losses. Although there is a positive revenue growth rate of 9.68% in the TTM, the company has struggled to convert this into profit, as evidenced by the negative EBITDA margin of -78.78%.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 2.06 in the TTM, suggesting a heavy reliance on debt financing, which poses a risk in terms of financial stability. The return on equity is negative at -166.96%, indicating that the company is not generating returns for its shareholders. However, the equity ratio is relatively stable, showing that equity still constitutes a significant portion of total assets.

Cash Flow

Cash flow analysis indicates a negative free cash flow growth rate of -12.99% in the TTM, reflecting deteriorating cash generation capabilities. The operating cash flow to net income ratio is negative, suggesting operational inefficiencies. Despite this, the free cash flow to net income ratio is slightly positive at 1.02, indicating some ability to cover net losses with free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	30.47M	24.01M	46.66M	54.03M	47.00M	43.01M
Gross Profit	11.13M	10.19M	21.76M	26.34M	23.43M	22.64M
EBITDA	-22.50M	-22.99M	-7.66M	933.00K	3.38M	7.44M
Net Income	-28.09M	-31.73M	-18.40M	-16.21M	704.00K	11.87M
Balance Sheet
Total Assets	57.39M	53.94M	49.91M	71.85M	90.13M	71.37M
Cash, Cash Equivalents and Short-Term Investments	5.46M	12.89M	10.15M	19.13M	18.85M	27.58M
Total Debt	20.59M	16.30M	5.29M	6.14M	6.90M	7.48M
Total Liabilities	54.23M	36.37M	16.09M	21.46M	24.17M	22.23M
Stockholders Equity	3.16M	17.56M	33.81M	50.39M	65.96M	49.14M
Cash Flow
Free Cash Flow	-10.96M	-19.64M	-9.83M	87.00K	5.94M	6.78M
Operating Cash Flow	-10.71M	-19.45M	-9.59M	468.00K	6.15M	6.92M
Investing Cash Flow	3.62M	-8.67M	5.54M	-89.00K	-15.55M	-3.13M
Financing Cash Flow	3.98M	23.87M	-114.00K	-1.06M	13.00K	679.00K

Genasys Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.36
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNSS, the sentiment is Positive. The current price of 2.36 is above the 20-day moving average (MA) of 2.22, above the 50-day MA of 2.21, and above the 200-day MA of 2.17, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 59.96 is Neutral, neither overbought nor oversold. The STOCH value of 76.86 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GNSS.

Genasys Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ELTK	―	$75.33M	24.90	7.51%	1.69%	6.75%	-52.37%
RELL	―	$154.88M	503.70	0.11%	2.21%	6.17%	―
CPSH	―	$77.49M	-34.04	-3.84%	―	7.47%	-133.39%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
WRAP	―	$140.10M	―	-118.25%	―	-55.50%	59.81%
LINK	―	$95.58M	-46.81	-15.12%	―	-7.12%	-11.02%
GNSS	―	$106.56M	-3.77	-177.60%	―	8.95%	14.34%

Genasys Corporate Events

Genasys Inc. Earnings Call: Growth Amid Challenges

Genasys Inc. recently held its earnings call, revealing a mixed sentiment among stakeholders. The company celebrated strong revenue growth and a promising backlog, largely driven by the Puerto Rico project and an expanding software pipeline. However, challenges such as delayed software bookings, reduced gross margins, and significant operating losses were also highlighted, indicating ongoing financial hurdles. Despite these challenges, efforts in cost reduction and continued project developments offer a positive outlook.

Genasys Inc. Navigates Trade Policy Challenges Amid Declining Federal Funding

Genasys Inc. faces significant business risks due to international trade policies, including tariffs, sanctions, and trade barriers, as well as a decline in federal funding in the United States. The imposition of new tariffs and restrictive trade measures could increase costs for raw materials and finished goods, potentially reducing profit margins and necessitating price hikes that may weaken the company’s competitive edge and customer relationships. Additionally, trade disputes and macroeconomic uncertainties could exacerbate unfavorable conditions such as inflation, foreign exchange volatility, and economic downturns, further impacting customer demand and limiting expansion opportunities. The ongoing uncertainty surrounding trade and federal funding policies complicates strategic planning and may adversely affect Genasys Inc.’s business, financial condition, and prospects.

Genasys Inc. Reports Revenue Growth Amid Challenges

Genasys Inc., a leader in Protective Communications, specializes in preparedness, response, and analytics software and hardware systems, serving public safety agencies worldwide. In its fiscal third quarter of 2025, Genasys reported a revenue increase to $9.9 million, up from $7.2 million in the same quarter of 2024, despite facing challenges in its software segment due to federal funding uncertainties. The company’s hardware business saw significant growth, with a 50% increase in revenue, largely driven by projects like the Puerto Rico Early Warning System and potential orders from the US Army. However, Genasys reported a GAAP net loss of $6.5 million, slightly improved from the previous year’s loss of $6.7 million, and implemented cost reduction measures expected to save $2.5 million annually starting in fiscal 2026. Looking ahead, Genasys anticipates significant revenue and profit growth from its ongoing projects, particularly in Puerto Rico, and remains optimistic about future hardware bookings and improved software deal conversions as federal funding stabilizes.