Genasys (GNSS) AI Stock Analysis

• Market Cap: $84.09M
• Dividend Yield: N/A
• Average Volume (3M): 134.95K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.52
• Revenue Growth: 69.76%
• EPS Growth: 43.82%
• Country: US
• Employees: 202
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 0.00
• Shares Outstanding: 45,212,310
• 10 Day Avg. Volume: 189,597
• 30 Day Avg. Volume: 134,951
• PEG Ratio: 0.14
• Price to Book (P/B): 50.94
• Price to Sales (P/S): 2.71
• P/FCF Ratio: -12.24
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 1.78
• Enterprise Value/Gross Profit: 4.13
• Enterprise Value/Ebitda: -12.54
• 1Y Price Target: $4.88
• Price Target Upside: 162.37% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $2.00 ▲(7.53% Upside)
• Action: Reiterated Date: 02/13/26
• Date: Action: Reiterated 02/13/26

The score is held back primarily by weak financial statements—ongoing losses, negative cash generation, and high leverage with thin equity—despite improving revenue trends. Offsetting this, the earnings call indicated meaningful near-term improvement (record growth, better margins, positive adjusted EBITDA) and profitability guidance, but technicals remain weak with the stock below major moving averages and a negative MACD.

Positive Factors

Revenue & Backlog Momentum

Sustained, large revenue jump and a $58M 12‑month backlog provide multi‑quarter visibility into demand and execution. A deep backlog reduces short‑term revenue volatility and supports predictable project delivery and cash conversion as contracts roll into recognition.

Improving Gross Margins

A structural rise from low‑40% toward ~50% annualized gross margins implies stronger unit economics and higher long‑term operating leverage. If sustained, this margin profile underpins durable profit conversion as software and higher‑margin hardware mix improves revenue quality.

Balance‑sheet & Liquidity Actions

Active debt repayment and a tangible cash buffer reflect management focus on financial flexibility and governance. Reducing term debt lowers refinancing risk and interest burden, improving capacity to invest in backlog fulfillment and pursue higher‑margin recurring opportunities.

Negative Factors

High Leverage

Very elevated debt‑to‑equity (~9.4x) on a thin equity base amplifies refinancing and solvency risk if losses persist. High leverage constrains strategic optionality, increases interest exposure, and can limit the company's ability to fund growth or weather contract timing variability.

Negative Cash Generation

Ongoing negative operating and free cash flow means the business is not yet self‑funding and likely needs external capital if trends reverse. Even with improvement, persistent cash burn limits reinvestment, raises dilution/refinancing risk, and pressures sustainable funding of backlog execution.

Revenue Concentration & Flat ARR

Heavy near‑term reliance on a single large hardware program and stagnant software ARR increases earnings volatility and limits high‑margin recurring revenue growth. Concentration elevates execution risk and exposes results to single‑project timing, while slower software traction delays margin stability.

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 focusing on the sales of its critical communication systems and software solutions. The company earns income from direct product sales, subscriptions for software services, and maintenance contracts. Additionally, Genasys has established partnerships with various governmental agencies and private sector organizations, which often lead to long-term contracts and recurring revenue. The company may also participate in joint ventures or collaborations that enhance its service offerings, further contributing to its earnings.

Genasys Financial Statement Overview

Summary

Despite strong TTM revenue growth (+24.8%) and stable low-40% gross margins, results are still dominated by materially negative profitability (net margin ~-29%), negative operating/free cash flow, and a highly leveraged balance sheet with very low equity (debt-to-equity ~9.4x), limiting financial flexibility.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew strongly (+24.8%) and gross margin held in the low-40% range, indicating decent product economics. However, profitability remains weak: EBIT, EBITDA, and net income are all materially negative, with a net margin around -29% in TTM. While losses have improved versus the very weak 2024 results, the company is still not operating at a sustainable earnings level.

Balance Sheet

Leverage is the key concern. In TTM, debt is high relative to equity (debt-to-equity ~9.4x) and equity is very small, which reduces financial flexibility and increases refinancing/solvency risk if losses persist. Returns to shareholders are also deeply negative (ROE ~-3.9 in TTM), reflecting ongoing losses on a thin equity base.

Cash Flow

Cash generation is currently negative: TTM operating cash flow and free cash flow are both modestly negative, and free cash flow deteriorated sharply (growth about -70%). A positive sign is that cash burn is smaller than in the prior annual period (operating cash flow improved from -$8.8M to -$2.5M), but the business still isn’t self-funding and would likely rely on external capital if this persists.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	50.88M	40.76M	24.01M	46.66M	54.03M	47.00M
Gross Profit	21.96M	16.96M	10.19M	21.76M	27.28M	23.43M
EBITDA	-7.23M	-12.87M	-27.81M	-7.66M	933.00K	3.38M
Net Income	-14.85M	-18.11M	-31.73M	-18.40M	-16.21M	704.00K
Balance Sheet
Total Assets	67.65M	63.87M	53.94M	49.91M	71.85M	90.13M
Cash, Cash Equivalents and Short-Term Investments	10.32M	8.04M	12.89M	10.15M	19.13M	18.85M
Total Debt	16.89M	21.35M	16.30M	5.29M	6.14M	6.90M
Total Liabilities	65.84M	61.70M	36.37M	16.09M	21.46M	24.17M
Stockholders Equity	1.81M	2.17M	17.56M	33.81M	50.39M	65.96M
Cash Flow
Free Cash Flow	-2.69M	-9.02M	-19.64M	-9.83M	87.00K	5.94M
Operating Cash Flow	-2.51M	-8.76M	-19.45M	-9.59M	468.00K	6.15M
Investing Cash Flow	5.31M	7.90M	-8.67M	5.54M	-89.00K	-15.55M
Financing Cash Flow	-899.00K	4.03M	23.87M	-114.00K	-1.06M	13.00K

Genasys Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.86
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 1.86 is below the 20-day moving average (MA) of 1.95, below the 50-day MA of 2.09, and below the 200-day MA of 2.02, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 37.32 is Neutral, neither overbought nor oversold. The STOCH value of 30.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GNSS.

Genasys Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RELL	64 Neutral	$187.52M	195.92	0.11%	2.25%	6.17%	―
CPSH	64 Neutral	$77.49M	-106.16	-3.84%	―	38.22%	70.68%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ELTK	51 Neutral	$58.96M	51.14	2.70%	2.16%	2.54%	-79.99%
GNSS	49 Neutral	$84.09M	-5.65	-183.60%	―	69.76%	43.82%
WRAP	49 Neutral	$92.65M	-5.65	-136.26%	―	-2.32%	26.38%
LINK	41 Neutral	$52.13M	-26.42	-13.78%	―	-1.70%	17.13%

Genasys Corporate Events

Genasys Updates CEO Compensation Package With Performance Focus

On January 26, 2026, Genasys Inc.’s board and compensation committee approved a 2026 pay package for CEO Richard Danforth that includes a $490,000 base salary, an at‑target cash bonus equal to 100% of salary tied to revenue, annual recurring revenue (ARR), and debt‑repayment metrics, and a total of 400,000 restricted stock units split evenly between time‑based and performance‑based grants. The structure tightly links Danforth’s upside to operational performance, with the cash bonus ranging from $0 to a maximum of $784,000 depending on the achievement of revenue, ARR, and debt‑reduction thresholds, and with the 200,000 performance RSUs vesting only if all three measures meet or exceed specified levels, while the company simultaneously canceled 800,000 previously granted performance‑based options, signaling an updated incentive design that emphasizes balance‑sheet strength, recurring revenue growth, and clearer alignment between executive rewards and shareholder value.

The most recent analyst rating on (GNSS) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Genasys stock, see the GNSS Stock Forecast page.

Genasys Appoints Cassandra Hernandez-Monteon as Permanent CFO

On December 24, 2025, Genasys Inc.’s board of directors appointed Cassandra Hernandez-Monteon as the company’s Chief Financial Officer, Treasurer and Secretary, formalizing the position she had held on an interim basis since July 1, 2025. In connection with the promotion, the board raised her base salary to $275,000, approved a fiscal 2026 bonus plan tied to financial and operating performance metrics, and granted her 70,000 restricted stock units split between time-based and performance-based vesting, with provisions for accelerated vesting in the event of a change of control, signaling the board’s commitment to performance alignment and leadership stability in the finance function.

The most recent analyst rating on (GNSS) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Genasys stock, see the GNSS Stock Forecast page.

Genasys Updates Governance Agreement and Repays Additional Term Loan

On December 19, 2025, Genasys Inc. entered into an Amended and Restated Cooperation Agreement with Nicoya Capital–affiliated investor entities linked to director R. Rimmy Malhotra, setting board nomination terms for the 2026 Annual Meeting, including the nomination of Richard S. Danforth, Susan Lee Schmeiser, William H. Dodd, W. Craig Fugate and Malhotra, as well as a commitment to work with the investors to select a mutually acceptable Audit Committee chair candidate, with Malhotra to serve as interim chair if no candidate is agreed upon by the filing of the company’s June 30, 2026 quarterly report. The revised agreement establishes standstill and mutual non-disparagement obligations for the investor group, outlines procedures for replacing Malhotra, defines conditions under which the agreement may terminate ahead of the 2027 Annual Meeting nomination window, and provides for Richard H. Osgood III and Mark Culhane to join a strategic advisory committee after the 2026 Annual Meeting, while Culhane will not stand for re-election to the board despite no disagreements with the company, and separately, on December 29, 2025 Genasys repaid in full an additional $4 million term loan plus interest and fees, leaving a previously extended $15 million term loan still outstanding, signaling ongoing balance sheet management and a recalibration of its governance structure in coordination with a key shareholder group.

The most recent analyst rating on (GNSS) stock is a Buy with a $5.25 price target. To see the full list of analyst forecasts on Genasys stock, see the GNSS Stock Forecast page.

Genasys Chairman Osgood to Join Advisory Board

On December 4, 2025, Richard H. Osgood III announced he will not stand for re-election at Genasys Inc.’s 2026 Annual Meeting, but will transition to the Strategic Advisory Board. Osgood, who has been a director since 2013 and chairman since 2021, has significantly contributed to the company’s growth in Protective Communications. His move is not due to any disagreements with the company, and he will continue to serve until the annual meeting. This transition is expected to maintain his influence and strategic input within the company.

The most recent analyst rating on (GNSS) stock is a Buy with a $4.50 price target. To see the full list of analyst forecasts on Genasys stock, see the GNSS Stock Forecast page.