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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on GNSS

The recent 3-month performance of Genasys Inc. was negatively impacted by a Q1 loss of $0.09 per share, although it managed to top revenue estimates. The company's fiscal first quarter results showed a decline in profitability, with a loss of $0.09 per share compared to a loss of $0.15 per share in the same period last year. However, the company's CEO, Richard Danforth, expressed optimism about the future, stating that fiscal 2025 is shaping up to be a year of dramatic improvement.

1.c. Company Highlights

2. Genasys' Q3 FY2025 Earnings: A Strong Revenue Growth Amidst Margin Pressures

Genasys Inc. reported a significant increase in revenues for the fiscal third quarter of 2025, with total revenues reaching $9.9 million, up 42% sequentially and 38% year-over-year. The revenue growth was primarily driven by the Puerto Rico early warning system project, which contributed $4.3 million to the total revenue. However, the company's gross profit margin came in at 26.3%, lower than both the prior year and the previous quarter. The earnings per share (EPS) was $-0.14, slightly worse than the estimated $-0.11. Operating expenses for the quarter were $8.5 million, down from $8.9 million in the previous quarter and $9.1 million in the same quarter last year.

Publication Date: Aug -28

📋 Highlights
  • Revenue Growth:: Q3 FY2025 revenue reached $9.9M, up 38% YoY and 42% sequentially, driven by $4.3M from the Puerto Rico project.
  • Backlog Expansion:: 12-month backlog exceeded $60M, reflecting strong bookings in international/domestic LRAD and software pipeline growth.
  • Cost Reduction:: Operating expenses dropped to $8.5M, down from $8.9M in Q2 FY2025 and $9.1M YoY, with $2.5M annual savings from headcount reductions.
  • Puerto Rico Project Progress:: $75M FEMA-funded contract achieved partial payments, with remaining funds secured and future payments expected on schedule.
  • CROWS-AHD Contract:: $8M–$8.5M purchase order finalized for the U.S. Army’s CROWS 2 tech refresh, following initial R&D funding in 2022–2023.

Revenue Growth Drivers

The revenue growth was largely driven by the Puerto Rico project, a $75 million contract with PREPA, which is fully funded by FEMA. As mentioned by Richard Danforth, "The Puerto Rico project... is fully funded by FEMA. We received a partial payment for the deposit on the third group of dams in May, and the remaining portion has been transferred today." This project has been a significant contributor to the company's revenue growth, and the company's software pipeline is at an all-time high, with a growing 12-month backlog of over $60 million.

Margin Pressures and Operating Expenses

Despite the revenue growth, the company's gross profit margin came under pressure, coming in at 26.3%. The operating expenses, however, were well-managed, coming in at $8.5 million, down from $8.9 million in the previous quarter. The company has taken actions to reduce its operating expense levels, including a targeted headcount reduction, which is expected to save $2.5 million annually.

Valuation Metrics

Looking at the valuation metrics, the company's P/S Ratio stands at 3.01, indicating a relatively high revenue multiple. The EV/EBITDA ratio is negative at -4.75, reflecting the company's current loss-making position. The ROE and ROIC are also negative, at -264.7% and -97.19%, respectively, indicating a challenging profitability environment. With analysts estimating revenue growth at 75.9% next year, the current valuation may be justified if the company can achieve its growth targets.

3. NewsRoom

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2 Network Software Stocks to Watch From a Challenging Industry

Nov -28

Source: zacks.com

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Genasys Inc. Announces $1M Nuclear Security Order

Nov -20

Source: businesswire.com

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Genasys Inc. Appoints Gateway to Lead Expanded Investor Relations Program

Nov -18

Source: businesswire.com

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Genasys Inc. Schedules Fiscal Year 2025 Financial Results and Conference Call for December 9, 2025

Nov -13

Source: businesswire.com

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Genasys Inc. Enters Strategic Partnership With Law Enforcement and Crisis Communications Leader Julie Parker Communications

Nov -11

Source: businesswire.com

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Spirent Extends High-Performance GNSS Simulation to More Users Across the Development Lifecycle

Nov -11

Source: businesswire.com

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Genasys Receives $1.0M LRAD-RT Order for Bird & Wildlife Preservation

Nov -06

Source: businesswire.com

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Genasys Participating in 14th Annual ROTH Technology Conference

Nov -04

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.62%)

6. Segments

Hardware

Expected Growth: 8.5%

Genasys Inc.'s 8.5% growth in Hardware segment is driven by increasing demand for advanced communication systems, growing adoption of IoT devices, and rising need for secure data storage solutions. Additionally, the company's strategic partnerships, innovative product offerings, and expanding presence in emerging markets contribute to its growth momentum.

Software

Expected Growth: 9.9%

Genasys Inc.'s software growth is driven by increasing demand for critical communication and mass notification systems, fueled by government and enterprise investments in emergency response and business continuity. Additionally, the company's cloud-based offerings and strategic partnerships have expanded its market reach, contributing to the 9.9% growth rate.

7. Detailed Products

LRAD 100X

A long-range communication system designed for fixed and mobile applications, providing clear and intelligible voice messages over long distances.

LRAD 500X

A high-powered, long-range communication system for large-scale events, crowd control, and emergency response situations.

LRAD 360XT

A compact, omnidirectional communication system for indoor and outdoor use, providing 360-degree coverage.

Genasys Platform

A cloud-based critical communication and mass notification platform for emergency response, business continuity, and operational efficiency.

Genasys Mobile

A mobile application for critical communication and mass notification, providing real-time alerts and notifications.

8. Genasys Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Genasys Inc. is moderate due to the presence of alternative communication systems.

Bargaining Power Of Customers

The bargaining power of customers is low for Genasys Inc. as the company has a strong brand presence and customer loyalty.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Genasys Inc. as the company relies on a few key suppliers for its components.

Threat Of New Entrants

The threat of new entrants is high for Genasys Inc. as the communication systems industry is attractive and has low barriers to entry.

Intensity Of Rivalry

The intensity of rivalry is high for Genasys Inc. as the company operates in a highly competitive industry with several established players.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 13.53%
Debt Cost 3.95%
Equity Weight 86.47%
Equity Cost 6.44%
WACC 6.10%
Leverage 15.65%

11. Quality Control: Genasys Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Satellogic

A-Score: 5.0/10

Value: 8.0

Growth: 4.2

Quality: 7.2

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

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BlackSky Technology

A-Score: 3.8/10

Value: 4.4

Growth: 4.4

Quality: 2.8

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

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Vicor

A-Score: 3.7/10

Value: 0.8

Growth: 4.7

Quality: 8.0

Yield: 0.0

Momentum: 7.0

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Focus Universal

A-Score: 3.6/10

Value: 6.0

Growth: 2.0

Quality: 3.6

Yield: 0.0

Momentum: 9.5

Volatility: 0.3

1-Year Total Return ->

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Mesa Laboratories

A-Score: 3.0/10

Value: 6.1

Growth: 4.3

Quality: 3.9

Yield: 1.0

Momentum: 0.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Genasys

A-Score: 2.1/10

Value: 6.6

Growth: 0.1

Quality: 2.9

Yield: 0.0

Momentum: 0.5

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.31$

Current Price

2.31$

Potential

-0.00%

Expected Cash-Flows