Geospace Technologies Reports First Quarter Fiscal Year 2026 Results
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
Energy Solutions Segment
The Energy Solutions segment revenue totaled
Intelligent Industrial Segment
Revenue from the Company’s Intelligent Industrial segment totaled
Balance Sheet and Liquidity
As of December 31, 2025, the Company had
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
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
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) |
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|
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, |
|
|
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,
|
|
|
December 31,
|
|
||
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
Source: Geospace Technologies Corporation