Geospace Technologies Reports Third Quarter and Nine-Months 2026 Results
Key Terms
firm-fixed price regulatory
For the nine-months ended June 30, 2026, Geospace reported revenue of
Management Comments
Richard “Rich” Kelley, President and CEO of the Company said, “Challenging market conditions across our business segments continued to impact our short-term financial performance. Revenue was impacted by geopolitical uncertainty, project timing, sales volumes and customer access to capital. Product mix, inflation, raw material costs and component availability had significant impacts on margin performance. We were able to offset some of this impact with previously stated cost reduction efforts and improvements in manufacturing productivity. Our financial performance this quarter does not reflect the strength of our long-term opportunities across our diversified markets. We remain focused on the factors within our control and on strengthening the foundation for future performance. Our underlying business remains well positioned with a diversified solutions portfolio and strong technology offerings.
Our Smart Water segment continued its dip in revenue, which is driven in large part by reduced orders of the Hydroconn® connector. In June, at the American Water Works Association Annual Conference and Exposition (ACE), we announced the release of the Series V connector, providing our customers increased flexibility to address increasing supply chain challenges. With this new product release, we offer the most universally compatible portfolio of smart water meter connectors and adapters available domestically.
Our Intelligent Industrial segment remains a consistent revenue contributor with expected future revenue growth from our security portfolio. At the end of the third quarter, our subsidiary, Quantum Technology Sciences, LLC., received a
The Energy Solutions segment generated less revenue than a year ago due to continued reduced demand for seismic acquisition equipment. Third quarter revenue contribution from the PRM contract was lower than was expected due to customer requested changes to the project scope. Importantly, our customer agreed to extend the PRM contract period of performance to account for these modifications. We have now successfully entered full production of the goods contract.
We will continue executing our strategic priorities, investing in innovation, supporting our customers, and maintaining financial discipline. We are focused on converting the opportunities in our pipeline into revenue and improved operating performance. Our priorities remain clear: execute on existing programs, expand the markets for our technology, improve performance in Smart Water, and allocate capital prudently. We believe these actions provide the clearest path to strengthening Geospace's performance over time and creating long-term value for our customers and shareholders.”
Smart Water Segment
The Company’s Smart Water segment generated revenue of
Energy Solutions Segment
Third quarter 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 nine-month period ended June 30, 2026, the Company used
As of June 30, 2026, the Company is in compliance with loan covenants and maintains full access to its credit facility. As of June 30, 2026, the Company had working capital of
Conference Call Information
Geospace Technologies will host a conference call to review its third quarter fiscal year 2026 financial results on Friday, August 7, 2026, at 10:00 a.m. Eastern Time (9 a.m. Central). Participants can access the call 833-316-1983 (US) or 785-838-9310 (International). Please reference the conference ID: GEOSQ326 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
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 BALANCE SHEETS (in thousands, except share and per share amounts) (unaudited) |
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June 30, 2026 |
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September 30, 2025 |
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ASSETS |
|
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
2,833 |
|
|
$ |
26,338 |
|
Restricted cash |
|
|
2,000 |
|
|
|
— |
|
Trade accounts and financing receivables, net |
|
|
17,486 |
|
|
|
28,009 |
|
Inventories, net |
|
|
39,572 |
|
|
|
30,901 |
|
Prepaid expenses and other current assets |
|
|
6,918 |
|
|
|
3,252 |
|
Total current assets |
|
|
68,809 |
|
|
|
88,500 |
|
|
|
|
|
|
|
|
|
|
Non-current inventories, net |
|
|
11,141 |
|
|
|
17,113 |
|
Rental equipment, net |
|
|
4,560 |
|
|
|
8,120 |
|
Property, plant and equipment, net |
|
|
22,759 |
|
|
|
23,244 |
|
Non-current financing receivables |
|
|
10,761 |
|
|
|
8,190 |
|
Operating right-of-use assets |
|
|
614 |
|
|
|
915 |
|
Goodwill |
|
|
1,258 |
|
|
|
1,258 |
|
Other intangible assets, net |
|
|
4,731 |
|
|
|
5,155 |
|
Other non-current assets |
|
|
494 |
|
|
|
542 |
|
Total assets |
|
$ |
125,127 |
|
|
$ |
153,037 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable trade |
|
$ |
6,257 |
|
|
$ |
10,369 |
|
Operating lease liabilities |
|
|
454 |
|
|
|
420 |
|
Contingent consideration |
|
|
1,788 |
|
|
|
— |
|
Deferred contract liabilities |
|
|
11,438 |
|
|
|
— |
|
Other current liabilities |
|
|
8,309 |
|
|
|
13,641 |
|
Total current liabilities |
|
|
28,246 |
|
|
|
24,430 |
|
|
|
|
|
|
|
|
|
|
Non-current contingent consideration |
|
|
962 |
|
|
|
2,540 |
|
Non-current operating lease liabilities |
|
|
209 |
|
|
|
554 |
|
Deferred tax liabilities, net |
|
|
— |
|
|
|
4 |
|
Total liabilities |
|
|
29,417 |
|
|
|
27,528 |
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
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Stockholders’ equity: |
|
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|
|
|
|
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|
Preferred stock, 1,000,000 shares authorized, no shares issued and outstanding |
|
|
— |
|
|
|
— |
|
Common Stock, |
|
|
145 |
|
|
|
144 |
|
Additional paid-in capital |
|
|
99,526 |
|
|
|
98,845 |
|
Retained earnings |
|
|
15,037 |
|
|
|
45,558 |
|
Accumulated other comprehensive loss |
|
|
(4,498 |
) |
|
|
(4,538 |
) |
Treasury stock, at cost, 1,558,260 shares |
|
|
(14,500 |
) |
|
|
(14,500 |
) |
Total stockholders’ equity |
|
|
95,710 |
|
|
|
125,509 |
|
Total liabilities and stockholders’ equity |
|
$ |
125,127 |
|
|
$ |
153,037 |
|
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (unaudited) |
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Three Months Ended |
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|
Nine Months Ended |
|||||||||||
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|
June 30, 2026 |
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|
June 30, 2025 |
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|
June 30, 2026 |
|
|
June 30, 2025 |
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Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
$ |
15,218 |
|
|
$ |
23,227 |
|
|
$ |
58,571 |
|
|
$ |
74,580 |
|
Rental |
|
|
586 |
|
|
|
1,616 |
|
|
|
2,561 |
|
|
|
5,509 |
|
Total revenue |
|
|
15,804 |
|
|
|
24,843 |
|
|
|
61,132 |
|
|
|
80,089 |
|
Cost of revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Products |
|
|
13,295 |
|
|
|
15,150 |
|
|
|
51,198 |
|
|
|
43,166 |
|
Rental |
|
|
2,013 |
|
|
|
2,154 |
|
|
|
6,048 |
|
|
|
7,487 |
|
Total cost of revenue |
|
|
15,308 |
|
|
|
17,304 |
|
|
|
57,246 |
|
|
|
50,653 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit |
|
|
496 |
|
|
|
7,539 |
|
|
|
3,886 |
|
|
|
29,436 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative |
|
|
6,711 |
|
|
|
7,546 |
|
|
|
22,348 |
|
|
|
21,741 |
|
Research and development |
|
|
3,863 |
|
|
|
4,238 |
|
|
|
13,126 |
|
|
|
14,367 |
|
Change in fair value of contingent consideration |
|
|
62 |
|
|
|
— |
|
|
|
210 |
|
|
|
— |
|
Provision for credit losses |
|
|
(2 |
) |
|
|
2 |
|
|
|
6 |
|
|
|
21 |
|
Total operating expenses |
|
|
10,634 |
|
|
|
11,786 |
|
|
|
35,690 |
|
|
|
36,129 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposal of property: |
|
|
— |
|
|
|
4,616 |
|
|
|
— |
|
|
|
4,616 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations |
|
|
(10,138 |
) |
|
|
369 |
|
|
|
(31,804 |
) |
|
|
(2,077 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(40 |
) |
|
|
(44 |
) |
|
|
(112 |
) |
|
|
(131 |
) |
Interest income |
|
|
521 |
|
|
|
537 |
|
|
|
1,771 |
|
|
|
1,975 |
|
Foreign currency transaction gains (losses), net |
|
|
(25 |
) |
|
|
4 |
|
|
|
(219 |
) |
|
|
(265 |
) |
Other, net |
|
|
(27 |
) |
|
|
(38 |
) |
|
|
(89 |
) |
|
|
(109 |
) |
Total other income, net |
|
|
429 |
|
|
|
459 |
|
|
|
1,351 |
|
|
|
1,470 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes |
|
|
(9,709 |
) |
|
|
828 |
|
|
|
(30,453 |
) |
|
|
(607 |
) |
Income tax expense (benefit) |
|
|
(1 |
) |
|
|
68 |
|
|
|
68 |
|
|
|
55 |
|
Net income (loss) |
|
$ |
(9,708 |
) |
|
$ |
760 |
|
|
$ |
(30,521 |
) |
|
$ |
(662 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.75 |
) |
|
$ |
0.06 |
|
|
$ |
(2.37 |
) |
|
$ |
(0.05 |
) |
Diluted |
|
$ |
(0.75 |
) |
|
$ |
0.06 |
|
|
$ |
(2.37 |
) |
|
$ |
(0.05 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
12,934,962 |
|
|
|
12,805,414 |
|
|
|
12,899,390 |
|
|
|
12,783,832 |
|
Diluted |
|
|
12,934,962 |
|
|
|
12,805,414 |
|
|
|
12,899,390 |
|
|
|
12,783,832 |
|
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) |
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|
Nine Months Ended |
|
|||||
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(30,521 |
) |
|
$ |
(662 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
Deferred income tax benefit |
|
|
(4 |
) |
|
|
(16 |
) |
Rental equipment depreciation |
|
|
3,731 |
|
|
|
4,830 |
|
Property, plant and equipment depreciation |
|
|
3,745 |
|
|
|
2,716 |
|
Amortization of intangible assets |
|
|
424 |
|
|
|
112 |
|
Amortization of discount on note receivable |
|
|
(56 |
) |
|
|
(54 |
) |
Accretion of discounts on short-term investments |
|
|
— |
|
|
|
(169 |
) |
Stock-based compensation expense |
|
|
999 |
|
|
|
1,200 |
|
Provision for credit losses |
|
|
6 |
|
|
|
21 |
|
Inventory obsolescence expense |
|
|
2,335 |
|
|
|
1,100 |
|
Gross loss (profit) from sale of rental equipment |
|
|
145 |
|
|
|
(16,297 |
) |
Loss (gain) on disposal of property, plant and equipment |
|
|
105 |
|
|
|
(4,708 |
) |
Realized gain on investments |
|
|
— |
|
|
|
(9 |
) |
Change in fair value of contingent consideration |
|
|
210 |
|
|
|
— |
|
Effects of changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Trade accounts and financing receivables |
|
|
(1,508 |
) |
|
|
2,229 |
|
Inventories |
|
|
(5,412 |
) |
|
|
(5,617 |
) |
Other assets |
|
|
(3,254 |
) |
|
|
(591 |
) |
Accounts payable trade |
|
|
(4,112 |
) |
|
|
(4,232 |
) |
Other liabilities |
|
|
5,819 |
|
|
|
2,022 |
|
Net cash used in operating activities |
|
|
(27,348 |
) |
|
|
(18,125 |
) |
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Purchase of property, plant and equipment |
|
|
(3,321 |
) |
|
|
(5,841 |
) |
Proceeds from the sale of property, plant and equipment |
|
|
— |
|
|
|
8,663 |
|
Investment in rental equipment |
|
|
(73 |
) |
|
|
(1,083 |
) |
Proceeds from the sale of rental equipment |
|
|
9,407 |
|
|
|
5,122 |
|
Proceeds from the sale of short-term investments |
|
|
— |
|
|
|
28,408 |
|
Payments received on note receivable related to sale of subsidiary |
|
|
216 |
|
|
|
137 |
|
Net cash provided by investing activities |
|
|
6,229 |
|
|
|
35,406 |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Taxes payments on stock-based compensation for exchange of common stock |
|
|
(317 |
) |
|
|
— |
|
Debt issuance costs |
|
|
(62 |
) |
|
|
— |
|
Purchase of treasury stock |
|
|
— |
|
|
|
(615 |
) |
Net cash used in financing activities |
|
|
(379 |
) |
|
|
(615 |
) |
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
|
(7 |
) |
|
|
(2 |
) |
(Decrease) increase in cash, cash equivalents and restricted cash |
|
|
(21,505 |
) |
|
|
16,664 |
|
Cash, cash equivalents and restricted cash, beginning of period |
|
|
26,338 |
|
|
|
6,895 |
|
Cash, cash equivalents and restricted cash, end of period |
|
|
4,833 |
|
|
|
23,559 |
|
Less: restricted cash |
|
|
(2,000 |
) |
|
|
— |
|
Cash and cash equivalents, end of period |
|
$ |
2,833 |
|
|
$ |
23,559 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTAL CASH FLOW INFORMATION: |
|
|
|
|
|
|
|
|
Cash paid for income taxes |
|
$ |
76 |
|
|
$ |
122 |
|
Non-cash investing and financing activities: |
|
|
|
|
|
|
|
|
Financing receivables related to sale of rental equipment |
|
|
9,285 |
|
|
|
11,975 |
|
Inventory transferred to rental equipment |
|
|
368 |
|
|
|
2,498 |
|
GEOSPACE TECHNOLOGIES CORPORATION AND SUBSIDIARIES SUMMARY OF SEGMENT REVENUE AND OPERATING INCOME (LOSS) (in thousands) (unaudited) |
||||||||||||||||
|
||||||||||||||||
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
||||||||||
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
|
June 30, 2026 |
|
|
June 30, 2025 |
|
||||
Revenue: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Smart Water |
|
$ |
4,622 |
|
|
$ |
10,518 |
|
|
$ |
14,106 |
|
|
$ |
27,278 |
|
Energy Solutions |
|
|
5,851 |
|
|
|
8,107 |
|
|
|
30,116 |
|
|
|
34,977 |
|
Intelligent Industrial |
|
|
5,246 |
|
|
|
6,136 |
|
|
|
16,656 |
|
|
|
17,596 |
|
Corporate |
|
|
85 |
|
|
|
82 |
|
|
|
254 |
|
|
|
238 |
|
Total |
|
$ |
15,804 |
|
|
$ |
24,843 |
|
|
$ |
61,132 |
|
|
$ |
80,089 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Smart Water |
|
$ |
(948 |
) |
|
$ |
2,233 |
|
|
$ |
(3,371 |
) |
|
$ |
4,023 |
|
Energy Solutions |
|
|
(4,590 |
) |
|
|
(1,234 |
) |
|
|
(12,806 |
) |
|
|
5,380 |
|
Intelligent Industrial |
|
|
(464 |
) |
|
|
(1,041 |
) |
|
|
(1,864 |
) |
|
|
(3,268 |
) |
Corporate |
|
|
(4,136 |
) |
|
|
411 |
|
|
(13,763 |
) |
|
|
(8,212 |
) |
|
Total |
|
$ |
(10,138 |
) |
|
$ |
369 |
|
$ |
(31,804 |
) |
|
$ |
(2,077 |
) |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20260806889058/en/
MEDIA CONTACT: Caroline Kempf, ckempf@geospace.com, 713.986.8710
Source: Geospace Technologies Corporation