Genasys Inc. (GNSS)
NASDAQ:GNSS
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Genasys
(NASDAQ:GNSS)
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Rating:48Neutral
Price Target:
$1.50
▼(-26.83% Downside)
Action:Reiterated
Date:06/13/26
GNSS scores in the high-40s primarily because financial resilience remains weak (high leverage, thin equity, and negative TTM operating/free cash flow) despite improving revenue and margins. The earnings call adds support due to a return to quarterly GAAP profitability, strong growth, and >50% margin/profitability guidance, but liquidity and receivable-collection concentration risks temper confidence. Technicals are neutral-to-soft and valuation support is limited given a negative P/E and no dividend yield provided.
Positive Factors
Revenue & Margin Improvement
Sustained, material top-line growth alongside sharply higher gross margins indicates improving product economics and favorable mix between hardware and software. If margins and revenue trends persist, they support durable operating leverage, improved cash conversion and scalability of profits as recurring software revenue grows.
Negative Factors
High Leverage & Thin Equity
Very high leverage against a minimal equity base leaves little balance‑sheet cushion, amplifying refinancing and covenant risk. Elevated debt burdens limit flexibility for capex or working‑capital needs and make the company highly sensitive to timing of receivable collections or project delays.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & Margin Improvement
Sustained, material top-line growth alongside sharply higher gross margins indicates improving product economics and favorable mix between hardware and software. If margins and revenue trends persist, they support durable operating leverage, improved cash conversion and scalability of profits as recurring software revenue grows.
Read all positive factors
Genasys Key Performance Indicators (KPIs)
Genasys (GNSS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$74.23M
Dividend YieldN/A
Average Volume (3M)154.65K
Price to Earnings (P/E)―
Beta (1Y)1.56
Revenue Growth114.02%
EPS Growth72.01%
CountryUS
Employees202
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)-0.17
Shares Outstanding45,542,007
10 Day Avg. Volume133,851
30 Day Avg. Volume154,652
Financial Highlights & Ratios
PEG Ratio0.14
Price to Book (P/B)50.94
Price to Sales (P/S)2.71
P/FCF Ratio-12.24
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue1.56
Enterprise Value/Gross Profit3.18
Enterprise Value/Ebitda-36.62
Forecast
1Y Price Target
$5.00Price Target Upside143.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.04
Revenue Forecast (FY)$71.95M
Genasys Business Overview & Revenue Model
Company Description
Genasys Inc. is an international leader in essential communication technology, providing a comprehensive suite of hardware and software solutions worldwide. The company operates through two distinct segments: Hardware and Software. Its hardware of...
How the Company Makes Money
Genasys primarily makes money by selling (1) software and related services tied to its emergency management and mass notification platform(s), and (2) hardware systems in its LRAD product line, plus associated support. On the software side, revenu...
Genasys Earnings Call Summary
Earnings Call Date:May 14, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 06, 2026
Earnings Call Sentiment Positive
The call conveyed a clear positive inflection: the company returned to GAAP profitability, posted dramatic year-over-year revenue growth, delivered very strong quarter gross margins, expanded backlog to $58M, and advanced large programs (Puerto Rico, CROWS, LRAD). However, material risks remain — revenue concentration in the Puerto Rico program, slower collections, tight cash ($1M), and a short-term loan extension tied to receivable timing introduce liquidity and timing uncertainty. Management emphasized operational discipline and pipeline momentum, but several positive headlines depend on successful collections and conversion of late-stage opportunities.Positive Updates
Return to GAAP Profitability
GAAP net income of $0.6M in Q2 FY26 versus a GAAP net loss of $6.1M in Q2 FY25; operating income of $1.3M versus an operating loss of $6.3M prior year; adjusted EBITDA of $2.5M compared to negative $5.1M a year ago — material improvement in profitability and operating leverage.
Negative Updates
Revenue Concentration and Collection Risk
A large portion of Q2 revenue (approximately $10.3M of $15.5M, ~66%) was driven by the Puerto Rico project, creating concentration risk. Management noted slower-than-expected payments and reported roughly $13M related to Puerto Rico receivables, exposing timing and cash-collection risk.
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Q2-2026 Updates
Positive
Negative
Return to GAAP Profitability
GAAP net income of $0.6M in Q2 FY26 versus a GAAP net loss of $6.1M in Q2 FY25; operating income of $1.3M versus an operating loss of $6.3M prior year; adjusted EBITDA of $2.5M compared to negative $5.1M a year ago — material improvement in profitability and operating leverage.
Read all positive updates
Company Guidance
Management guided to annualized gross margins above 50% and reiterated expectations to deliver year‑over‑year revenue growth and to achieve both operating income and GAAP net income profitability for fiscal 2026; they said Q3 revenue should be higher than Q2 ($15.5M) with Q4 a bit lower, and they expect to complete the $9.0M CROWS AHD initial order this fiscal year and receive additional production orders in H2. Key metrics discussed: Q2 revenue $15.5M (up 124% YoY) with 63.3% Q2 gross margin (first‑half average 55.3%), hardware revenue up ~180% YoY (Puerto Rico contributed $10.3M of revenue and roughly $13M of receivables, with $1.8M collected last week), software revenue $2.4M (+6% YoY, ~+5% sequential), backlog $58M, adjusted EBITDA $2.5M (vs. -$5.1M prior year), GAAP net income $0.6M (vs. -$6.1M), operating income $1.3M (vs. -$6.3M), operating expenses ~$8.5M (down 4% YoY and expected to normalize at that level), cash and equivalents $1.0M as of 3/31/26, term loan maturity extended to 07/13/2026, a ~5,000‑unit CROWS addressable market (~$175M), and an expected order for 26 additional LRAD 950 NXTs for a major utility.Genasys Financial Statement Overview
Summary
Income Statement
36
Negative
Balance Sheet
24
Negative
Cash Flow
28
Negative
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 59.45M | 40.76M | 24.01M | 46.66M | 54.03M | 47.00M |
| Gross Profit | 29.17M | 16.96M | 10.19M | 21.76M | 27.28M | 23.43M |
| EBITDA | -2.53M | -12.87M | -27.81M | -7.67M | 933.00K | 3.43M |
| Net Income | -7.99M | -18.11M | -31.73M | -18.40M | -16.21M | 704.00K |
Balance Sheet | ||||||
| Total Assets | 61.63M | 63.87M | 53.94M | 49.91M | 71.85M | 90.13M |
| Cash, Cash Equivalents and Short-Term Investments | 961.00K | 8.04M | 12.89M | 10.15M | 19.13M | 18.85M |
| Total Debt | 17.39M | 21.35M | 16.30M | 5.29M | 6.14M | 6.90M |
| Total Liabilities | 58.60M | 61.70M | 36.37M | 16.09M | 21.46M | 24.17M |
| Stockholders Equity | 3.03M | 2.17M | 17.56M | 33.81M | 50.39M | 65.96M |
Cash Flow | ||||||
| Free Cash Flow | -5.57M | -9.02M | -19.64M | -9.83M | 87.00K | 5.94M |
| Operating Cash Flow | -5.50M | -8.76M | -19.45M | -9.59M | 468.00K | 6.15M |
| Investing Cash Flow | 1.44M | 7.90M | -8.67M | 5.54M | -89.00K | -15.55M |
| Financing Cash Flow | -918.00K | 4.03M | 23.87M | -114.00K | -1.06M | 13.00K |
Genasys Technical Analysis
Negative
2.05
Price Trends
1.92
Negative
1.90
Negative
2.07
Negative
Market Momentum
-0.06
Positive
30.72
Neutral
6.44
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GNSS, the sentiment is Negative. The current price of 2.05 is above the 20-day moving average (MA) of 1.93, above the 50-day MA of 1.92, and below the 200-day MA of 2.07, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 30.72 is Neutral, neither overbought nor oversold. The STOCH value of 6.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GNSS.
Genasys Risk Analysis
Genasys disclosed 42 risk factors in its most recent earnings report. Genasys reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Genasys Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $266.98M | 61.68 | 2.37% | 2.25% | 4.82% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $128.14M | 1,166.67 | 0.15% | ― | 41.39% | ― | |
52 Neutral | $72.45M | -63.11 | -12.20% | ― | 9.64% | 45.26% | |
49 Neutral | $63.27M | -20.88 | -6.69% | 2.16% | 4.15% | -186.73% | |
48 Neutral | $74.23M | -9.23 | -314.53% | ― | 114.02% | 72.01% | |
45 Neutral | $69.12M | -4.47 | -115.68% | ― | 32.19% | -104.80% |
* Technology Sector Average
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Genasys Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Genasys Secures High-Interest Term Loan for Liquidity
Negative
Jun 12, 2026
On June 9, 2026, Genasys Inc. entered into and closed an unsecured term loan agreement with Maran Partners Fund, LP, securing $4.3 million in financing to be used solely for working capital and general corporate purposes. The loan carries an 18% a...
Business Operations and StrategyFinancial DisclosuresPrivate Placements and Financing
Genasys Extends Term Loan Maturity for Short-Term Flexibility
Positive
May 14, 2026
On May 12, 2026, Genasys Inc. amended its term loan agreement with lenders led by Cantor Fitzgerald Securities, extending the loan’s maturity from May 13, 2026 to July 13, 2026 in exchange for a 1% extension fee on the outstanding principal,...
Business Operations and StrategyExecutive/Board Changes
Genasys Adds Larry Hagenbuch to Board, Audit Chair
Positive
Mar 30, 2026
On March 26, 2026, Genasys Inc. appointed Lawrence F. “Larry” Hagenbuch to its Board of Directors and named him chair of the Audit Committee, granting him restricted stock units consistent with other non‑employee directors. The M...
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.