US Market News
2 months ago
Geospace Technologies Reports Second Quarter and Six-Months 2026 ResultsMay 7, 2026 4:45 PM
Business Wire Geospace Technologies Corporation (NASDAQ: GEOS) (“the “Company") today announced results for its second quarter ended March 31, 2026. For the three-months ended March 31, 2026, Geospace reported revenue of $19.7 million compared to revenue of $18.0 million for the comparable year-ago quarter. Net loss for the three-months ended March 31, 2026, was $11.1 million, or $(0.86) per diluted share, compared to net loss of $9.8 million, or $(0.77) per diluted share, for the quarter ended March 31, 2025. For the six-months ended March 31, 2026, Geospace reported revenue of $45.3 million compared to revenue of $55.2 million for the comparable year-ago period. Net loss for the six-months ended March 31, 2026 was $20.8 million, or $(1.62) per diluted share, compared to net loss of $1.4 million, or $(0.11) per diluted share, for the six-months ended March 31, 2025. Management Comments Richard “Rich” Kelley, President and CEO of the Company said, “Our transformation into a more diversified, technology-driven solutions company is a deliberate long-term strategy, and like any meaningful evolution, it comes with both progress and challenges. While our recent results reflect some near-term pressures, they do not change our longer-term plan for diversification and growth. We have already seen encouraging signs through new contract wins and expanding opportunities beyond our traditional oil and gas markets leveraging our manufacturing expertise including early revenue with the Heartbeat Detector® subscription model. Additionally, we are taking advantage of our contract manufacturing expertise, where we have opportunities for white label product development and manufacturing in smart water technologies. Despite lower utilization of our ocean bottom node fleet, we are seeing increased interest for the summer survey season. Additionally, we recognized our first revenue from the previously announced Permanent Reservoir Monitoring project as initial manufacturing activities began in Houston, representing an important milestone in the project’s execution. While the conflict in the Middle East has impacted potential future business due to travel restrictions and the unknowns associated with the conflict, we have maintained positive North American interest in our ultralight land node, Pioneer™. Currently, we are providing proposals to new and existing customers for the Pioneer. To date, Pioneer is deployed in numerous basins across North America. As part of ongoing efforts to align our cost structure with current market conditions and long-term strategic priorities, we implemented a voluntary early retirement program and a workforce reduction initiative of approximately 20%. Combined with other cost reduction efforts, we expect to generate annualized cost savings of roughly $12 million. The reductions primarily reflect actions to streamline operations, optimize resource allocation, and enhance organizational efficiency across key business segments. We anticipate recording approximately $1.3 million in total restructuring charges related to these actions during the second and third quarters of fiscal year 2026. These steps are intended to strengthen operating leverage, support disciplined capital management, and position our company to respond more effectively to evolving customer demand while maintaining focus on its core growth initiatives. We remain focused on disciplined execution, continued innovation, and delivering value to our customers and shareholders. This is not a short-term pivot. We are engaged in a sustained commitment to building a stronger, more resilient company for the future, and we are confident in our ability to navigate the road ahead.” Smart Water Segment The Company’s Smart Water segment generated revenue of $3.7 million for the three-month period ended March 31, 2026. Revenue for the three-month period ended March 31, 2025, was $9.5 million, a decrease of 60.6%. Revenue for the six-month period was $9.5 million compared to $16.8 million from the same prior year period. The decline in revenue for the three-month period and six-month period reflects lower demand for the Company’s Hydroconn connector product line. During the prior fiscal year, customers placed orders aligned with anticipated performance resulting in elevated inventory levels into the current year. As a result, recent demand reflects inventory normalization rather than reduced long-term requirements. Based on ongoing discussions with customers, management anticipates a moderate uptick in orders in the coming quarters with new and replacement smart meter implementations. Management continues to believe the increased focus on water scarcity, persistent labor force challenges, and infrastructure modernization supports long-term demand for Advanced Metering Infrastructure solutions and represents continued growth. Energy Solutions Segment Second quarter revenue from the Company’s Energy Solutions segment totaled $9.6 million for the three months ended March 31, 2026. This compares to $2.6 million in revenue for the same period a year ago representing an increase of 272.1%. Revenue for the six-month period ended March 31, 2026, is $24.3 million, a decrease of 9.7% over the equivalent prior year period of $26.9 million. The increase in revenue for the three months was due to revenue recognized related to the PRM contract, the final deliveries of our Pioneer land wireless product to Dawson Geophysical, partially offset by lower demand for our traditional seismic products. Additionally, the prior year revenue included an adjustment reducing rental revenue resulting from concerns about the collectability of receivables from a rental customer. The decrease in revenue for the six-month period is attributed to lower utilization of our ocean bottom nodal rental fleet, offset by higher land wireless product demand and the above-mentioned revenue recognized for the PRM contract. Intelligent Industrial Segment Revenue from the Company’s Intelligent Industrial segment totaled $6.3 million for the three-month period ended March 31, 2026. This compares with $5.9 million from the equivalent year ago period, representing an increase of 7.1%. Revenue for the six-month period ending March 31, 2026, was $11.4 million, compared to revenue of $11.5 million for the comparable year-ago period, reflecting relatively stable performance year over year. The increase in revenue for the three-month period was driven by higher demand for our industrial sensors and contract manufacturing services. This quarter also included the first revenue contribution from the Company’s Heartbeat Detector® product. While revenue for this product was modest during the quarter interest levels and quoting activity are active internationally and domestically. Balance Sheet and Liquidity For the six-month period ended March 31, 2026, the Company used $16.7 million in cash and cash equivalents from operating activities. The Company generated $4.0 million of cash from investing activities including $6.9 million in proceeds from the sale of rental equipment, partially offset by $3.0 million for additions to property, plant and equipment. As of March 31, 2026, the Company had $13.4 million in cash and maintained an additional borrowing availability of $25.0 million under its bank credit agreement with no borrowings outstanding. For the six-month period ended March 31, 2026, the Company reported working capital is $45.4 million which included $19.3 million of trade accounts and financing receivables. Conference Call Information Geospace Technologies will host a conference call to review its second quarter fiscal year 2026 financial results on Friday, May 8, 2026, at 10:00 a.m. Eastern Time (9 a.m. Central). Participants can access the call at 833-316-1983 (US) or 785-838-9310 (International). Please reference the conference ID: GEOSQ226 prior to the start of the conference call. A replay will be available for approximately 60 days and may be accessed through the Investor Relations tab of our website at www.geospace.com. About Geospace Technologies Geospace Technologies is a global technology and instrumentation manufacturer specializing in advanced sensing, IOT and highly ruggedized products, which serve smart water, energy exploration, industrial, government and commercial customers worldwide. The Company’s products blend engineering expertise with advanced analytic software to optimize energy exploration, enhance national and homeland security, empower water utility and property managers, and streamline electronic printing solutions. With more than four decades of excellence, the Company’s more than 400 employees across the world are dedicated to engineering and technical quality. Geospace is traded on the U.S. NASDAQ stock exchange under the ticker symbol GEOS. For more information, visit www.geospace.com. Forward Looking Statements This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by terminology such as “may”, “will”, “should”, “could”, “intend”, “expect”, “plan”, “budget”, “forecast”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “continue”, “evaluating” or similar words. Statements that contain these words should be read carefully because they discuss future expectations, contain projections of our future results of operations or of our financial position or state other forward-looking information. Examples of forward- looking statements include, statements regarding our expected operating results and expected demand for our products in various segments and our expected capital expenditures. These forward-looking statements reflect our current judgment about future events and trends based on currently available information. However, there will likely be events in the future that we are not able to predict or control. The factors listed under the caption “Risk Factors” in our most recent Annual Report on Form 10-K which is on file with the Securities and Exchange Commission, as well as other cautionary language in such Annual Report, any subsequent Quarterly Report on Form 10- Q, or in our other periodic reports, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. Such examples include, but are not limited to, among others, statements that we make regarding our expected operating results, the timing, adoption, results and success of our rollout of our Aquana smart water valves and cloud-based control platform, future demand for our Quantum security solutions, the adoption and sale of our products in various geographic regions, potential tenders for permanent reservoir monitoring systems, sales or rentals for our ocean bottom nodes, the adoption of Quantum's SADAR® product monitoring of subsurface reservoirs, the completion of new orders for channels of our Pioneer™ system, the fulfillment of customer payment obligations, the impact of the current armed conflict between Russia and Ukraine, impact of the ongoing U.S. and Israeli military conflict with Iran, our ability to manage changes and the continued health or availability of management personnel, volatility and direction of oil prices, anticipated levels of capital expenditures and the sources of funding therefor, and our strategy for growth, product development, market position, financial results and the provision of accounting reserves. These forward-looking statements reflect our current judgment about future events and trends based on the information currently available to us. However, there will likely be events in the future that we are not able to predict or control. The factors listed under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, as well as other cautionary language in such Annual Report and our Quarterly Reports on Form 10-Q, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. Such examples include, but are not limited to, the failure of the Quantum and OptoSeis® or Aquana technology transactions to yield positive operating results, decreases in commodity price levels, the failure of our products to achieve market acceptance (despite substantial investment by us), our sensitivity to short term backlog, delayed or cancelled customer orders, product obsolescence resulting from poor industry conditions or new technologies, credit losses associated with customer accounts, inability to collect on financing receivables, lack of further orders for our ocean bottom rental equipment, failure of our Quantum products to be adopted by the border and security perimeter market or a decrease in such market due to governmental changes, and infringement or failure to protect intellectual property. The occurrence of the events described in these risk factors could have a material adverse effect on our business, results of operations and financial position, and actual events and results of operations may vary materially from our current expectations. We assume no obligation to revise or update any forward-looking statement, whether written or oral, that we may make from time to time, whether as a result of new information, future developments or otherwise. GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited) March 31, 2026 September 30, 2025 ASSETS Current assets: Cash and cash equivalents $ 13,358 $ 26,338 Trade accounts and financing receivables, net 19,344 28,009 Inventories, net 36,961 30,901 Prepaid expenses and other current assets 6,076 3,252 Total current assets 75,739 88,500 Non-current inventories, net 11,758 17,113 Rental equipment, net 5,856 8,120 Property, plant and equipment, net 23,706 23,244 Non-current financing receivables 12,329 8,190 Operating right-of-use assets 716 915 Goodwill 1,258 1,258 Other intangible assets, net 4,872 5,155 Other non-current assets 482 542 Total assets $ 136,716 $ 153,037 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities: Accounts payable trade $ 5,141 $ 10,369 Operating lease liabilities 443 420 Contingent consideration 1,727 — Deferred contract liabilities 12,999 — Other current liabilities 9,986 13,641 Total current liabilities 30,296 24,430 Non-current contingent consideration 961 2,540 Non-current operating lease liabilities 326 554 Deferred tax liabilities, net — 4 Total liabilities 31,583 27,528 Commitments and contingencies Stockholders’ equity: Preferred stock, 1,000,000 shares authorized, no shares issued and outstanding — — Common Stock, $.01 par value, 20,000,000 shares authorized; 14,489,378 and 14,378,962 shares issued, respectively; and 12,931,118 and 12,820,702 shares outstanding, respectively 145 144 Additional paid-in capital 99,283 98,845 Retained earnings 24,745 45,558 Accumulated other comprehensive loss (4,540 ) (4,538 ) Treasury stock, at cost, 1,558,260 shares (14,500 ) (14,500 ) Total stockholders’ equity 105,133 125,509 Total liabilities and stockholders’ equity $ 136,716 $ 153,037 GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited) Three Months Ended Six Months Ended March 31, 2026 March 31, 2025 March 31, 2026 March 31, 2025 Revenue: Products $ 18,964 $ 18,708 $ 43,353 $ 51,353 Rental 778 (685 ) 1,975 3,893 Total revenue 19,742 18,023 45,328 55,246 Cost of revenue: Products 17,072 13,747 37,903 28,016 Rental 1,976 2,528 4,035 5,333 Total cost of revenue 19,048 16,275 41,938 33,349 Gross profit 694 1,748 3,390 21,897 Operating expenses: Selling, general and administrative 7,358 6,775 15,637 14,195 Research and development 4,774 5,235 9,263 10,129 Change in fair value of contingent consideration (48 ) — 148 — Provision for credit losses 29 19 8 19 Total operating expenses 12,113 12,029 25,056 24,343 Loss from operations (11,419 ) (10,281 ) (21,666 ) (2,446 ) Other income (expense): Interest expense (35 ) (43 ) (72 ) (87 ) Interest income 616 693 1,250 1,438 Foreign currency transaction gains (losses), net (197 ) (255 ) (194 ) (269 ) Other, net (25 ) (38 ) (62 ) (71 ) Total other income, net 359 357 922 1,011 Loss before income taxes (11,060 ) (9,924 ) (20,744 ) (1,435 ) Income tax expense (benefit) (12 ) (126 ) 69 (13 ) Net loss $ (11,048 ) $ (9,798 ) $ (20,813 ) $ (1,422 ) Loss per common share: Basic $ (0.86 ) $ (0.77 ) $ (1.62 ) $ (0.11 ) Diluted $ (0.86 ) $ (0.77 ) $ (1.62 ) $ (0.11 ) Weighted average common shares outstanding: Basic 12,914,318 12,792,803 12,881,604 12,772,981 Diluted 12,914,318 12,792,803 12,881,604 12,772,981 GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Six Months Ended March 31, 2026 March 31, 2025 Cash flows from operating activities: Net loss $ (20,813 ) $ (1,422 ) Adjustments to reconcile net loss to net cash used in operating activities: Deferred income benefit (12 ) (11 ) Rental equipment depreciation 2,510 3,415 Property, plant and equipment depreciation 2,477 1,770 Amortization of intangible assets 283 74 Amortization of discount on note receivable (37 ) (36 ) Accretion of discounts on short-term investments — (156 ) Stock-based compensation expense 744 896 Provision for credit losses 8 19 Inventory obsolescence expense 1,774 905 Gross loss (profit) from sale of rental equipment 84 (15,820 ) (Gain) loss on disposal of property, plant and equipment 101 (93 ) Realized gain on investments — (10 ) Effects of changes in operating assets and liabilities: Trade accounts and notes receivable (2,432 ) 1,829 Inventories (2,810 ) (3,518 ) Other assets (2,554 ) 688 Accounts payable trade (5,228 ) (2,633 ) Other liabilities 9,097 702 Fair value of contingent consideration 148 — Net cash used in operating activities (16,660 ) (13,401 ) Cash flows from investing activities: Purchase of property, plant and equipment (3,015 ) (4,419 ) Proceeds from the sale of property, plant and equipment — 131 Investment in rental equipment (67 ) (900 ) Proceeds from the sale of rental equipment 6,914 1,704 Proceeds from the sale of short-term investments — 18,862 Payments received on note receivable related to sale of subsidiary 143 76 Net cash provided by investing activities 3,975 15,454 Cash flows from financing activities: Taxes payments on stock-based compensation for exchange of common stock (305 ) — Purchase of treasury stock — (615 ) Net cash used in financing activities (305 ) (615 ) Effect of exchange rate changes on cash 10 (39 ) (Decrease) increase in cash and cash equivalents (12,980 ) 1,399 Cash and cash equivalents, beginning of period 26,338 6,895 Cash and cash equivalents, end of period $ 13,358 $ 8,294 SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for income taxes $ 107 $ 113 Financing receivables related to sale of rental equipment 6,847 14,701 Inventory transferred to rental equipment 334 2,395 GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES SUMMARY OF SEGMENT REVENUE AND OPERATING INCOME (LOSS) (in thousands) (unaudited) Three Months Ended Six Months Ended March 31, 2026 March 31, 2025 March 31, 2026 March 31, 2025 Revenue: Smart Water $ 3,728 $ 9,472 $ 9,484 $ 16,760 Energy Solutions 9,629 2,588 24,265 26,870 Intelligent Industrial 6,299 5,883 11,410 11,460 Corporate 86 80 169 156 Total $ 19,742 $ 18,023 $ 45,328 $ 55,246 Income (loss) from operations: Smart Water $ (1,622 ) $ 1,420 $ (2,423 ) $ 1,790 Energy Solutions (4,782 ) (6,668 ) (8,216 ) 6,614 Intelligent Industrial (587 ) (1,287 ) (1,400 ) (2,227 ) Corporate (4,428 ) (3,746 ) (9,627 ) (8,623 ) Total $ (11,419 ) $ (10,281 ) $ (21,666 ) $ (2,446 ) View source version on businesswire.com: https://www.businesswire.com/news/home/20260507042127/en/ MEDIA CONTACT: Caroline Kempf, ckempf@geospace.com, 713.986.8710 Original: Geospace Technologies Reports Second Quarter and Six-Months 2026 Results
US Market News
5 months ago
Geospace Technologies Reports First Quarter Fiscal Year 2026 ResultsFebruary 4, 2026 4:45 PM
Business Wire
Geospace Technologies Corporation (NASDAQ: GEOS) (“the “Company") today announced results for its first quarter ended December 31, 2025. For the three-months ended December 31, 2025, Geospace reported revenue of $25.6 million compared to revenue of $37.2 million for the comparable year-ago quarter. Net loss for the three-months ended December 31, 2025, was $9.8 million, or $(0.76) per diluted share, compared to net income of $8.4 million, or $0.65 per diluted share, for the quarter ended December 31, 2024.
Management’s Comments
Richard J. (“Rich”) Kelley, President and CEO of Geospace Technologies said, “The past year was not without its challenges many of which are reflected in our first quarter performance. We continue to operate in an environment shaped by economic uncertainty, inflation, tariffs and supply chain challenges. With that said, we remain focused on what we can control: serving our customers, running the business well, and making smart, long-term decisions. Overall, I am encouraged by how our organization performed in this difficult operating environment. We continue to invest in our future, advance our strategic initiatives, and leverage innovative technology to further diversify the business. These efforts position us well to drive sustainable growth and long-term value for our shareholders.
The Smart Water segment continues to operate in a stable yet increasingly demanding environment. As is typical in the first quarter, revenue is reduced due to seasonal deployment schedules and the timing of municipal government budget cycles. However, long-term demand for water infrastructure, treatment, and management services remains strong, driven by population growth, urbanization, aging infrastructure, and heightened regulatory and environmental standards. We are expanding the geographic reach of our sales and marketing operations to enter markets where these demand criteria exist, and our technology offers significant added value.
At the same time, the industry faces challenges including rising operating costs, climate-related variability, evolving compliance requirements, and the need for sustained capital investment. These dynamics reinforce the importance of prudent planning, operational discipline, and long-term asset stewardship.
The environment surrounding our Energy Solutions segment is defined by uncertainty and change. The global energy demand remains resilient, reflecting the essential role that oil and natural gas play in supporting economic activity, industrial production, and energy security. We were encouraged by the award of the large Permanent Reservoir Monitoring contract in fiscal year 2025, which reinforces the strength of our capabilities and market positioning. At the same time, the sector faces ongoing volatility driven by geopolitical events, inflationary pressures, regulatory developments, and evolving expectations from investors and policymakers.
Our Intelligent Industrial segment continues to generate steady, predictable revenue from our industrial sensors, imaging products and contract manufacturing solutions. As previously announced, we strengthened our security portfolio with the acquisition of GeoVox Security, the exclusive licensee of a human heartbeat detection algorithm developed by Oak Ridge National Labs. Since the acquisition, customer interest and engagement has exceeded GeoVox’s historical levels, driven largely by the reduced product form factor and the introduction of a monthly subscription model, which simplifies procurement by enabling purchase orders under operating budgets rather than capital expenditures. Combined with the consistent revenue from our long-established industrial product lines, this recurring revenue model positions the Intelligent Industrial segment for growth in 2026 and beyond.
Looking ahead, we expect continued uncertainty in global markets. While challenges remain, we believe the company is well positioned due to the quality of our portfolio, the experience and professionalism of our workforce, and our conservative financial framework. We will continue to evaluate opportunities carefully, avoid speculative investments, and remain guided by returns, risk management, and long-term shareholder value.”
Smart Water Segment
First quarter revenue from the Company’s Smart Water segment totaled $5.8 million for the three months ended December 31, 2025. This compares to $7.3 million in revenue for the same period a year ago, a decrease of 21%. This quarter’s revenue is higher than the average of the last several years’ revenue for the first quarter of the fiscal year. This decrease in revenue is due to lower demand for the Company’s Hydroconn® cable and connector products, caused by a normal seasonal decrease in demand.
Energy Solutions Segment
The Energy Solutions segment revenue totaled $14.6 million for the three months ended December 31, 2025. This compares to $24.3 million in revenue for the same period a year ago, a decrease of 40%. Revenue for the three months ended December 31, 2025 included $10.6 million of Pioneer and related equipment for an order to Dawson Geophysical announced in August 2025. However, in comparison, revenue for the first quarter of the prior year included a $17 million OBX marine wireless product sale. Additionally, the reduction in revenue for the first quarter of fiscal year 2026 was due to lower utilization of the OBX rental fleet.
Intelligent Industrial Segment
Revenue from the Company’s Intelligent Industrial segment totaled $5.1 million for the three-month period ended December 31, 2025. This is compared with $5.6 million from the same year ago period, a decrease of 8%. The decrease in revenue for the three months ended December 31, 2025, was primarily due to lower demand for industrial sensor products. The decrease was partially offset by an increase in demand for our contract manufacturing services.
Balance Sheet and Liquidity
As of December 31, 2025, the Company had $10.6 million in cash and cash equivalents. Additionally, Company’s working capital is $52.2 million which includes $25.4 million of trade accounts and financing receivables as of December 31, 2025. The Company continues to own unencumbered property and real estate in both domestic and international locations. In fiscal year 2026, management anticipates a capital expenditure budget of $5 million and does not anticipate significant increases to the rental fleet given current market conditions.
Conference Call Information
Geospace Technologies will host a conference call to review its first quarter fiscal year 2026 financial results on Thursday, February 5, 2026, at 10:00 a.m. Eastern Time (9 a.m. Central). Participants can access the call at 833-316-1983 (US) or 785-838-9310 (International). Please reference the conference ID: GEOSQ126 prior to the start of the conference call. A replay will be available for approximately 60 days and may be accessed through the Investor Relations tab of our website at www.geospace.com.
About Geospace Technologies
Geospace Technologies is a global technology and instrumentation manufacturer specializing in advanced sensing, IOT and highly ruggedized products, which serve smart water, energy exploration, industrial, government and commercial customers worldwide. The Company’s products blend engineering expertise with advanced analytic software to optimize energy exploration, enhance national and homeland security, empower water utility and property managers, and streamline electronic printing solutions. With more than four decades of excellence, the Company’s more than 450 employees across the world are dedicated to engineering and technical quality. Geospace is traded on the U.S. NASDAQ stock exchange under the ticker symbol GEOS. For more information, visit www.geospace.com.
Forward Looking Statements
This news release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements can be identified by terminology such as “may”, “will”, “should”, “could”, “intend”, “expect”, “plan”, “budget”, “forecast”, “anticipate”, “believe”, “estimate”, “predict”, “potential”, “continue”, “evaluating” or similar words. Statements that contain these words should be read carefully because they discuss future expectations, contain projections of our future results of operations or of our financial position or state other forward-looking information. Examples of forward- looking statements include, statements regarding our expected operating results and expected demand for our products in various segments and our expected capital expenditures. These forward-looking statements reflect our current judgment about future events and trends based on currently available information. However, there will likely be events in the future that we are not able to predict or control. The factors listed under the caption “Risk Factors” in our most recent Annual Report on Form 10-K which is on file with the Securities and Exchange Commission, as well as other cautionary language in such Annual Report, any subsequent Quarterly Report on Form 10- Q, or in our other periodic reports, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements.
Such examples include, but are not limited to, among others, statements that we make regarding our expected operating results, the timing, adoption, results and success of our rollout of our Aquana smart water valves and cloud-based control platform, future demand for our Quantum security solutions, the adoption and sale of our products in various geographic regions, potential tenders for permanent reservoir monitoring systems, sales or rentals for our ocean bottom nodes, the adoption of Quantum's SADAR® product monitoring of subsurface reservoirs, the completion of new orders for channels of our Pioneer™ system, the fulfillment of customer payment obligations, the impact of the current armed conflict between Russia and Ukraine, our ability to manage changes and the continued health or availability of management personnel, volatility and direction of oil prices, anticipated levels of capital expenditures and the sources of funding therefor, and our strategy for growth, product development, market position, financial results and the provision of accounting reserves. These forward-looking statements reflect our current judgment about future events and trends based on the information currently available to us. However, there will likely be events in the future that we are not able to predict or control. The factors listed under the caption “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2025, as well as other cautionary language in such Annual Report and our Quarterly Reports on Form 10-Q, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. Such examples include, but are not limited to, the failure of the Quantum and OptoSeis® or Aquana technology transactions to yield positive operating results, decreases in commodity price levels, the failure of our products to achieve market acceptance (despite substantial investment by us), our sensitivity to short term backlog, delayed or cancelled customer orders, product obsolescence resulting from poor industry conditions or new technologies, credit losses associated with customer accounts, inability to collect on financing receivables, lack of further orders for our ocean bottom rental equipment, failure of our Quantum products to be adopted by the border and security perimeter market or a decrease in such market due to governmental changes, and infringement or failure to protect intellectual property. The occurrence of the events described in these risk factors could have a material adverse effect on our business, results of operations and financial position, and actual events and results of operations may vary materially from our current expectations. We assume no obligation to revise or update any forward-looking statement, whether written or oral, that we may make from time to time, whether as a result of new information, future developments or otherwise.
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
Three Months Ended
December 31, 2025
December 31, 2024
Revenue:
Products
$
24,389
$
32,645
Rental
1,197
4,578
Total revenue
25,586
37,223
Cost of revenue:
Products
20,831
14,269
Rental
2,059
2,805
Total cost of revenue
22,890
17,074
Gross profit
2,696
20,149
Operating expenses:
Selling, general and administrative
8,279
7,420
Research and development
4,489
4,894
Change in fair value of contingent consideration
196
—
Recovery of credit losses
(21
)
—
Total operating expenses
12,943
12,314
Income (loss) from operations
(10,247
)
7,835
Other income (expense):
Interest expense
(37
)
(44
)
Interest income
634
745
Foreign currency transaction gains (losses), net
3
(14
)
Other, net
(37
)
(33
)
Total other income, net
563
654
Income (loss) before income taxes
(9,684
)
8,489
Income tax expense
81
113
Net income (loss)
$
(9,765
)
$
8,376
Income (loss) per common share:
Basic
$
(0.76
)
$
0.66
Diluted
$
(0.76
)
$
0.65
Weighted average common shares outstanding:
Basic
12,849,600
12,753,378
Diluted
12,849,600
12,877,387
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands except share amounts)
(unaudited)
December 31, 2025
September 30, 2025
ASSETS
Current assets:
Cash and cash equivalents
$
10,579
$
26,338
Trade accounts and financing receivables, net
25,356
28,009
Inventories, net
35,367
30,901
Prepaid expenses and other current assets
6,429
3,252
Total current assets
77,731
88,500
Non-current inventories, net
15,779
17,113
Rental equipment, net
7,018
8,120
Property, plant and equipment, net
24,577
23,244
Non-current financing receivables
11,917
8,190
Operating right-of-use assets
816
915
Goodwill
1,258
1,258
Other intangible assets, net
5,013
5,155
Other non-current assets
509
542
Total assets
$
144,618
$
153,037
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable trade
$
15,440
$
10,369
Operating lease liabilities
432
420
Other current liabilities
9,690
13,641
Total current liabilities
25,562
24,430
Contingent consideration
2,736
2,540
Non-current operating lease liabilities
441
554
Deferred tax liabilities, net
1
4
Total liabilities
28,740
27,528
Commitments and contingencies
Stockholders’ equity:
Preferred stock, 1,000,000 shares authorized, no shares issued and outstanding
—
—
Common Stock, $.01 par value, 20,000,000 shares authorized; 14,446,178 and 14,378,962 shares issued, respectively; and 12,887,918 and 12,820,702 shares outstanding, respectively
144
144
Additional paid-in capital
98,959
98,845
Retained earnings
35,793
45,558
Accumulated other comprehensive loss
(4,518
)
(4,538
)
Treasury stock, at cost, 1,558,260 shares
(14,500
)
(14,500
)
Total stockholders’ equity
115,878
125,509
Total liabilities and stockholders’ equity
$
144,618
$
153,037
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
Three Months Ended
December 31, 2025
December 31, 2024
Cash flows from operating activities:
Net income (loss)
$
(9,765
)
$
8,376
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Deferred income tax benefit
(3
)
—
Rental equipment depreciation
1,259
1,884
Property, plant and equipment depreciation
1,155
867
Amortization of intangible assets
141
37
Amortization of discount on note receivable
(18
)
(12
)
Accretion of discounts on short-term investments
—
(104
)
Stock-based compensation expense
419
349
Recovery of credit losses
(21
)
—
Inventory obsolescence expense
627
506
Gross (profit) loss from sale of rental equipment
78
(15,978
)
(Gain) loss on disposal of property, plant and equipment
16
(86
)
Realized gain on investments
—
(10
)
Effects of changes in operating assets and liabilities:
Trade accounts and financing receivables
(3,155
)
(3,622
)
Inventories
(3,962
)
(2,988
)
Other assets
(3,043
)
(196
)
Accounts payable trade
5,071
(690
)
Other liabilities
(4,066
)
158
Fair value of contingent consideration
196
—
Net cash used in operating activities
(15,071
)
(11,509
)
Cash flows from investing activities:
Purchase of property, plant and equipment
(2,480
)
(3,199
)
Proceeds from the sale of property, plant and equipment
—
89
Investment in rental equipment
(30
)
(373
)
Proceeds from the sale of rental equipment
2,050
65
Proceeds from the sale of short-term investments
—
9,660
Payments received on note receivable related to sale of subsidiary
71
45
Net cash (used in) provided by investing activities
(389
)
6,287
Cash flows from financing activities:
Taxes payments on stock-based compensation for exchange of common stock
(305
)
—
Purchase of treasury stock
—
(197
)
Net cash used in financing activities
(305
)
(197
)
Effect of exchange rate changes on cash
6
(66
)
(Decrease) in cash and cash equivalents
(15,759
)
(5,485
)
Cash and cash equivalents, beginning of period
26,338
6,895
Cash and cash equivalents, end of period
$
10,579
$
1,410
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for income taxes
$
45
$
113
Financing receivables related to sale of rental equipment
—
16,112
Inventory transferred to rental equipment
205
36
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES
SUMMARY OF SEGMENT REVENUE AND OPERATING INCOME (LOSS)
(in thousands)
(unaudited)
Three Months Ended
December 31,
2025
December 31,
2024
Revenue:
Smart Water
$
5,756
$
7,288
Energy Solutions
14,636
24,282
Intelligent Industrial
5,111
5,577
Corporate
83
76
Total
$
25,586
$
37,223
Income (loss) from operations:
Smart Water
$
(801
)
$
370
Energy Solutions
(3,434
)
13,282
Intelligent Industrial
(813
)
(940
)
Corporate
(5,199
)
(4,877
)
Total
$
(10,247
)
$
7,835
View source version on businesswire.com: https://www.businesswire.com/news/home/20260204493489/en/
MEDIA CONTACT: Caroline Kempf, ckempf@geospace.com, 713.986.8710
Original: Geospace Technologies Reports First Quarter Fiscal Year 2026 Results
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