Genasys (GNSS) AI Stock Analysis

• Market Cap: $112.89M
• Dividend Yield: N/A
• Average Volume (3M): 138.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• 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: 141,257
• 30 Day Avg. Volume: 138,558
• 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: 0.83
• Enterprise Value/Revenue: 3.06
• Enterprise Value/Gross Profit: 8.37
• Enterprise Value/Ebitda: -4.14
• 1Y Price Target: $4.50
• Price Target Upside: 80.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 46 Neutral
• Price Target: $2.00 ▼(-20.00% Downside)

Genasys' overall stock score is primarily impacted by its poor financial performance, marked by significant losses and high leverage. While there is positive momentum in technical indicators and some revenue growth, these are overshadowed by valuation concerns and ongoing operational challenges.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market demand and successful project execution, particularly with the Puerto Rico project, which can drive long-term business stability.

Strong Backlog

A robust backlog provides revenue visibility and stability, supporting future growth and operational planning, which is crucial for long-term success.

CROWS Contract Progress

Progress on the CROWS contract enhances revenue diversification and strengthens Genasys' position in defense markets, contributing to sustained growth.

Negative Factors

High Leverage

High leverage increases financial risk and can limit strategic flexibility, potentially impacting long-term financial health and investment capacity.

Operating Losses

Persistent operating losses indicate challenges in achieving profitability, which can strain resources and hinder investment in growth opportunities.

Cash Depletion

Declining cash reserves can limit operational flexibility and increase reliance on external financing, posing risks to long-term sustainability.

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: 2.50
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 2.5 is above the 20-day moving average (MA) of 2.10, above the 50-day MA of 1.91, and above the 200-day MA of 2.26, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 79.62 is Negative, neither overbought nor oversold. The STOCH value of 78.12 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
WRAP	57 Neutral	131.63M	-12.51	-2350.00%	―	-55.50%	59.81%
LPTH	47 Neutral	310.59M	-28.50	0.00%	―	2.59%	-48.02%
GNSS	46 Neutral	$112.89M	―	-177.60%	―	8.95%	14.34%
ODYS	45 Neutral	64.51M	-3.73	-64.50%	―	46.70%	-19.78%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Genasys Corporate Events

Genasys Appoints Interim CFO Following Klahn’s Retirement

Genasys Inc. announced that Dennis D. Klahn, the Chief Financial Officer, Treasurer, and Secretary, retired from his positions effective July 1, 2025, as previously reported. Cassandra Hernandez-Monteon has been appointed as the interim Chief Financial Officer, Treasurer, and Secretary. With over 20 years of experience in financial and operational leadership, Hernandez-Monteon has been with Genasys since 2018 and previously held leadership roles at Teledyne RD Instruments.