Geospace Technologies Corporation Reports Fourth Quarter and Fiscal Year 2025 Results
For the twelve-month period ended September 30, 2025, Geospace Technologies reported revenue of
Management’s Comments
Richard “Rich” Kelley, Chief Executive Officer and President of Geospace Technologies, said, “The mixed fiscal year performance across the market segments continues to reinforce our vision of diversification and innovation for the company.
Our Smart Water segment delivered another strong year, exceeding expectations with double digit revenue growth for the fourth sequential fiscal year. The Hydroconn® connector line continued to gain market share and drove significant revenue gains compared to last year. We are also seeing increased market acceptance of the Aquana products both domestically and in the
Continued market uncertainty and volatility in oil prices resulted in lower revenue from Energy Solutions. We experienced another year of reduced offshore exploration, increased competition and consolidation. These factors have led to decreased utilization of our ocean-bottom node rental fleet that has negatively impacted segment revenue. Despite lower revenue, we achieved strategic wins in the segment. As previously announced, we were awarded a major Permanent Reservoir Monitoring (PRM) contract with Petrobras as well as released and completed a major sale of our ultra lightweight land node, Pioneer™ to several customers, including Dawson Geophysical, a long-time valued partner. We have a strong backlog going into the next fiscal year and while there are encouraging signs, the short-term exploration market remains uncertain due to continued pressure from low oil prices. However, long-term demand forecasts should drive more favorable market conditions in future periods.
Our Intelligent Industrial segment continues to provide steady, predictable revenue from our industrial sensors and contract manufacturing solutions. As previously announced, to increase revenue from this segment, we acquired Geovox Security, Inc., the exclusive licensee of a human heartbeat detection algorithm developed by Oak Ridge National Lab. The Heartbeat Detector® complements our border and perimeter security solutions. It further serves to advance our strategy toward adding more solutions with annual recurring revenue. We also restructured our Exile product portfolio to increase revenues and improve margins. Both Heartbeat Detector and Exile have seen increased interest in their respective markets.
While Energy Solutions continues to play a key role in our overall strategy, we will continue to drive growth and profitability through diversification. We see incredible opportunities in our Smart Water and Intelligent Industrial segments to leverage our technology and manufacturing capabilities.
Smart Water Segment
Revenue from the Company’s Smart Water segment totaled
Energy Solutions Segment
For the three-month period ended September 30, 2025, revenue from the Company’s Energy Solutions segment totaled
Intelligent Industrial Segment
Revenue from the Company’s Intelligent Industrial segment totaled
Balance Sheet and Liquidity
For the twelve-month period ended September 30, 2025, the Company used
As of September 30, 2025, the Company had
Conference Call Information
Geospace Technologies will host a conference call to review its fourth quarter and fiscal year 2025 financial results on November 21, 2025, at 10:00 a.m. Eastern Time (9 a.m. Central). Participants can access the call at (800) 267-6316 (US) or (203) 518-9783 (International). Please reference the conference ID: GEOSQ425 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
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 (the “Exchange Act”). 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 our 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, 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, continued demand growth of our Hydroconn universal AMI connectors, future demand for our Quantum and/or Heartbeat Detector® security solutions, the adoption and sale of our products in various geographic regions, potential tenders for permanent reservoir monitoring systems, future demand for ocean bottom node rental equipment, sales or rentals for our Mariner® or Mariner® Deep 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
# # #
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(unaudited)
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
|
September 30, 2025 |
|
|
September 30, 2024 |
|
|
September 30, 2025 |
|
|
September 30, 2024 |
|
||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
$ |
29,624 |
|
|
$ |
32,602 |
|
|
$ |
104,204 |
|
|
$ |
116,036 |
|
Rental |
|
|
1,090 |
|
|
|
2,836 |
|
|
|
6,599 |
|
|
|
19,562 |
|
Total revenue |
|
|
30,714 |
|
|
|
35,438 |
|
|
|
110,803 |
|
|
|
135,598 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
|
24,913 |
|
|
|
16,302 |
|
|
|
68,079 |
|
|
|
69,318 |
|
Rental |
|
|
2,340 |
|
|
|
3,206 |
|
|
|
9,827 |
|
|
|
13,707 |
|
Total cost of revenue |
|
|
27,253 |
|
|
|
19,508 |
|
|
|
77,906 |
|
|
|
83,025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
3,461 |
|
|
|
15,930 |
|
|
|
32,897 |
|
|
|
52,573 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
8,074 |
|
|
|
7,241 |
|
|
|
29,815 |
|
|
|
26,554 |
|
Research and development |
|
|
4,549 |
|
|
|
4,775 |
|
|
|
18,916 |
|
|
|
16,251 |
|
Other intangible asset impairment |
|
|
— |
|
|
|
2,761 |
|
|
|
— |
|
|
|
2,761 |
|
Provision for (recovery of) credit losses |
|
|
45 |
|
|
|
(26 |
) |
|
|
66 |
|
|
|
(110 |
) |
Total operating expenses |
|
|
12,668 |
|
|
|
14,751 |
|
|
|
48,797 |
|
|
|
45,456 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposal of property |
|
|
— |
|
|
|
— |
|
|
|
4,616 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
|
(9,207 |
) |
|
|
1,179 |
|
|
(11,284 |
) |
|
|
7,117 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of subsidiary |
|
|
— |
|
|
|
(14,539 |
) |
|
|
— |
|
|
|
(14,539 |
) |
Interest expense |
|
|
(38 |
) |
|
|
(43 |
) |
|
|
(169 |
) |
|
|
(187 |
) |
Interest income |
|
|
562 |
|
|
|
604 |
|
|
|
2,537 |
|
|
|
1,558 |
|
Foreign currency transaction losses, net |
|
|
(10 |
) |
|
|
(17 |
) |
|
|
(275 |
) |
|
|
(270 |
) |
Other, net |
|
|
(376 |
) |
|
|
(379 |
) |
|
|
(145 |
) |
|
|
(143 |
) |
Total other income (expense), net |
|
|
478 |
|
|
|
(14,034 |
) |
|
|
1,948 |
|
|
|
(13,581 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income taxes |
|
|
(8,729 |
) |
|
|
(12,855 |
) |
|
|
(9,336 |
) |
|
|
(6,464 |
) |
Income tax expense |
|
|
333 |
|
|
|
5 |
|
|
388 |
|
|
|
114 |
|
|
Net loss |
|
$ |
(9,062 |
) |
|
$ |
(12,860 |
) |
|
$ |
(9,724 |
) |
|
$ |
(6,578 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.71 |
) |
|
$ |
(1.00 |
) |
|
$ |
(0.76 |
) |
|
$ |
(0.50 |
) |
Diluted |
|
$ |
(0.71 |
) |
|
$ |
(1.00 |
) |
|
$ |
(0.76 |
) |
|
$ |
(0.50 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
12,820,403 |
|
|
|
12,797,653 |
|
|
|
12,793,075 |
|
|
|
13,151,600 |
|
Diluted |
|
|
12,820,403 |
|
|
|
12,797,653 |
|
|
|
12,793,075 |
|
|
|
13,151,600 |
|
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands except share amounts) (unaudited)
|
|
AS OF SEPTEMBER 30, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
26,338 |
|
|
$ |
6,895 |
|
Short-term investments |
|
|
— |
|
|
|
30,227 |
|
Trade accounts and financing receivables, net |
|
|
28,009 |
|
|
|
21,868 |
|
Inventories, net |
|
|
30,901 |
|
|
|
26,222 |
|
Assets held for sale |
|
|
— |
|
|
|
1,841 |
|
Prepaid expenses and other current assets |
|
|
3,252 |
|
|
|
2,313 |
|
Total current assets |
|
|
88,500 |
|
|
|
89,366 |
|
|
|
|
|
|
|
|
|
|
Non-current inventories, net |
|
|
17,113 |
|
|
|
18,031 |
|
Rental equipment, net |
|
|
8,120 |
|
|
|
14,186 |
|
Property, plant and equipment, net |
|
|
23,244 |
|
|
|
21,083 |
|
Non-current trade accounts and financing receivables, net |
|
|
8,190 |
|
|
|
6,375 |
|
Operating right-of-use assets |
|
|
915 |
|
|
|
464 |
|
Goodwill |
|
|
1,258 |
|
|
|
736 |
|
Other intangible assets, net |
|
|
5,155 |
|
|
|
1,649 |
|
Other non-current assets |
|
|
542 |
|
|
|
304 |
|
Total assets |
|
$ |
153,037 |
|
|
$ |
152,194 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable trade |
|
$ |
10,369 |
|
|
$ |
8,003 |
|
Operating lease liabilities |
|
|
420 |
|
|
|
173 |
|
Other current liabilities |
|
|
13,641 |
|
|
|
9,021 |
|
Total current liabilities |
|
|
24,430 |
|
|
|
17,197 |
|
|
|
|
|
|
|
|
|
|
Contingent consideration |
|
|
2,540 |
|
|
|
— |
|
Non-current operating lease liabilities |
|
|
554 |
|
|
|
339 |
|
Deferred tax liabilities, net |
|
|
4 |
|
|
|
34 |
|
Total liabilities |
|
|
27,528 |
|
|
|
17,570 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Preferred stock, 1,000,000 shares authorized, no shares issued and outstanding |
|
|
— |
|
|
|
— |
|
Common stock, |
|
|
144 |
|
|
|
142 |
|
Additional paid-in capital |
|
|
98,845 |
|
|
|
97,342 |
|
Retained earnings |
|
|
45,558 |
|
|
|
55,282 |
|
Accumulated other comprehensive loss |
|
|
(4,538 |
) |
|
|
(4,257 |
) |
Treasury stock, at cost, 1,558,260 and 1,496,701 shares, respectively |
|
|
(14,500 |
) |
|
|
(13,885 |
) |
Total stockholders’ equity |
|
|
125,509 |
|
|
|
134,624 |
|
Total liabilities and stockholders’ equity |
|
$ |
153,037 |
|
|
$ |
152,194 |
|
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands) (unaudited)
|
|
YEAR ENDED SEPTEMBER 30, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(9,724 |
) |
|
$ |
(6,578 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Deferred income tax expense (benefit) |
|
|
(31 |
) |
|
|
18 |
|
Rental equipment depreciation |
|
|
6,176 |
|
|
|
10,859 |
|
Property, plant and equipment depreciation |
|
|
3,752 |
|
|
|
3,512 |
|
Amortization of intangible assets |
|
|
218 |
|
|
|
395 |
|
Intangible assets impairment expense |
|
|
— |
|
|
|
2,761 |
|
Accretion of discounts on short-term investments |
|
|
(171 |
) |
|
|
(566 |
) |
Stock-based compensation expense |
|
|
1,505 |
|
|
|
1,304 |
|
Provision for (recovery of) credit losses |
|
|
66 |
|
|
|
(110 |
) |
Inventory obsolescence expense |
|
|
3,071 |
|
|
|
589 |
|
Loss on sale of subsidiary |
|
|
— |
|
|
|
14,539 |
|
Gross profit from sale of rental equipment |
|
|
(16,402 |
) |
|
|
(30,998 |
) |
(Gain) loss on disposal of property, plant and equipment |
|
|
(4,679 |
) |
|
|
16 |
|
Realized gain on investments |
|
|
(9 |
) |
|
|
— |
|
Effects of changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Trade accounts and notes receivable |
|
|
(4,244 |
) |
|
|
6,593 |
|
Inventories |
|
|
(7,571 |
) |
|
|
(10,985 |
) |
Other assets |
|
|
(1,345 |
) |
|
|
(199 |
) |
Accounts payable trade |
|
|
2,353 |
|
|
|
2,746 |
|
Other liabilities |
|
|
4,803 |
|
|
|
(2,979 |
) |
Net cash used in operating activities |
|
|
(22,232 |
) |
|
|
(9,083 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
(7,973 |
) |
|
|
(3,857 |
) |
Investment in rental equipment |
|
|
(1,091 |
) |
|
|
(8,321 |
) |
Proceeds from the sale of property, plant and equipment |
|
|
8,675 |
|
|
|
9 |
|
Proceeds from the sale of rental equipment |
|
|
14,171 |
|
|
|
31,964 |
|
Purchase of short-term investments |
|
|
— |
|
|
|
(32,078 |
) |
Proceeds from the sale of short-term investments |
|
|
30,407 |
|
|
|
17,338 |
|
Payment for business acquisition |
|
|
(1,750 |
) |
|
|
— |
|
Payments received on note receivable related to sale of subsidiary |
|
|
253 |
|
|
|
— |
|
Cash disposed from sale of subsidiary |
|
|
— |
|
|
|
(1,231 |
) |
Net cash provided by investing activities |
|
|
42,692 |
|
|
|
3,824 |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Debt issuance costs |
|
|
(398 |
) |
|
|
— |
|
Purchase of treasury stock |
|
|
(615 |
) |
|
|
(6,385 |
) |
Net cash used in financing activities |
|
|
(1,013 |
) |
|
|
(6,385 |
) |
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
(4 |
) |
|
|
(264 |
) |
Increase (decrease) in cash and cash equivalents |
|
|
19,443 |
|
|
|
(11,908 |
) |
Cash and cash equivalents, beginning of fiscal year |
|
|
6,895 |
|
|
|
18,803 |
|
Cash and cash equivalents, end of fiscal year |
|
$ |
26,338 |
|
|
$ |
6,895 |
|
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES
SUMMARY OF SEGMENT REVENUE AND OPERATING INCOME (LOSS)
(in thousands)
(unaudited)
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
|
September 30, 2025 |
|
|
September 30, 2024 |
|
|
September 30, 2025 |
|
|
September 30, 2024 |
|
||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Smart Water |
|
$ |
8,538 |
|
|
$ |
11,876 |
|
|
$ |
35,816 |
|
|
$ |
32,434 |
|
Energy Solutions |
|
|
15,729 |
|
|
|
17,649 |
|
|
|
50,706 |
|
|
|
77,977 |
|
Intelligent Industrial |
|
|
6,364 |
|
|
|
5,840 |
|
|
|
23,960 |
|
|
|
24,891 |
|
Corporate |
|
|
83 |
|
|
|
73 |
|
|
|
321 |
|
|
|
296 |
|
Total |
|
$ |
30,714 |
|
|
$ |
35,438 |
|
|
$ |
110,803 |
|
|
$ |
135,598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Smart Water |
|
$ |
1,640 |
|
|
$ |
3,843 |
|
|
$ |
5,663 |
|
|
$ |
9,215 |
|
Energy Solutions |
|
|
(4,992 |
) |
|
|
5,567 |
|
|
388 |
|
|
|
18,570 |
|
|
Intelligent Industrial |
|
|
(1,061 |
) |
|
|
(4,510 |
) |
|
|
(4,329 |
) |
|
|
(6,691 |
) |
Corporate |
|
|
(4,794 |
) |
|
|
(3,721 |
) |
|
|
(13,006 |
) |
|
|
(13,977 |
) |
Total |
|
$ |
(9,207 |
) |
|
$ |
1,179 |
|
$ |
(11,284 |
) |
|
$ |
7,117 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20251120045797/en/
MEDIA CONTACT: Caroline Kempf, ckempf@geospace.com, 713.986.8710
Source: Geospace Technologies Corporation
