Financial Performance - Consolidated revenue for the three months ended December 31, 2025, was $25.6 million, a decrease of $11.6 million, or 31.3%, from the same period in the prior fiscal year[112]. - Consolidated gross profit for the three months ended December 31, 2025, was $2.7 million, a decrease of $17.5 million, or 86.6%, from the same period in the prior fiscal year[113]. - Consolidated operating expenses for Q1 2026 were $12.9 million, an increase of $0.6 million, or 5.1%, compared to the same period last year[114]. - Revenue from the Smart Water segment decreased by $1.5 million, or 21.0%, primarily due to reduced demand for Hydroconn® products[116]. - The Energy Solutions segment experienced a revenue decline of $9.6 million, or 39.7%, with an operating loss of $(3.4) million compared to an operating income of $13.3 million in the prior year[118]. - Product revenue in the Energy Solutions segment fell by $6.3 million, or 31.5%, while rental revenue decreased by $3.4 million, or 76.1%[119]. - Revenue from the Intelligent Industrial segment decreased by $0.5 million, or 8.4%, mainly due to lower demand for industrial sensor products[121]. Segment Performance - Energy Solutions segment product revenue decreased to $13.6 million from $19.8 million, while rental revenue dropped to $1.1 million from $4.5 million[108]. - Smart Water segment product revenue was $5.8 million, down from $7.3 million, with an operating loss of $801,000 compared to an income of $370,000 in the prior year[108]. - The Energy Solutions segment is anticipated to provide a significant portion of revenue for years to come, despite a shift from rentals to purchases of ocean bottom nodes[110]. Strategic Initiatives - The company expects continued growth in the Smart Water segment, driven by increased demand for Hydroconn® cables and Aquana smart water products[109]. - The adoption of advanced technology in water management is supported by U.S. Federal funding programs, including $7.5 billion allocated for water-related infrastructure projects[92]. - The company has seen a 400% increase in sales volume of Hydroconn® connector cables used in Automated Meter Reading applications over the last decade[93]. - The Heartbeat Detector® acquisition in August 2025 enhances perimeter security offerings and has proven 99% effective in detecting hidden individuals[107]. Financial Position - At December 31, 2025, the company had $10.6 million in cash and cash equivalents, with cash used in operating activities amounting to $15.1 million[123]. - The company expects fiscal year 2026 cash investments in property, plant, and equipment to be approximately $5 million[124]. - A credit agreement with Woodforest National Bank provides a revolving credit facility with a maximum availability of $25 million, with compliance on all financial covenants as of December 31, 2025[127][128]. - The company recorded an initial contingent earn-out liability of $2.5 million related to the acquisition of Geovox, with a maximum potential of $3.3 million[132]. - The company anticipates receiving $6.8 million from a PRM customer in February 2026, with an additional $9.5 million expected by the end of the month[129].

Core Viewpoint - Geospace Technologies Corporation (NASDAQ:GEOS) experienced a significant decline in share price and financial performance, primarily due to reduced revenue across its major segments, particularly in Energy Solutions [1][3][4]. Financial Performance - For Q1 2026, Geospace reported a net loss of $9.8 million, translating to a loss of $0.76 per diluted share, a stark contrast to a net income of $8.4 million or $0.65 per diluted share in the same period last year [3]. - Revenue for the quarter fell by 31% year-over-year to $25.6 million [3]. Segment Performance - The decline in revenue was largely driven by a 40% drop in the Energy Solutions segment, attributed to lower utilization of the OBX rental fleet [4]. - Other segments, including Smart Water and Intelligent Industrial, also saw revenue declines of 21% and 8%, respectively, compared to the previous year [4]. Market Reaction - Following the release of its Q1 2026 results on February 4, the share price of Geospace Technologies fell by 44.57% between February 3 and February 10, 2026, marking it as one of the Energy Stocks that lost the most during that week [1][7].

Core Insights - Geospace Technologies Corporation (GEOS) shares have significantly underperformed, dropping 43.9% since the end of December 2025, compared to a slight decline of 0.2% in the S&P 500 Index during the same period [1] Financial Performance - For Q1 fiscal 2026, Geospace reported revenues of $25.6 million, a decrease of 31.3% from $37.2 million in the same quarter last year, and a net loss of $9.8 million, or $0.76 per diluted share, compared to a net income of $8.4 million, or $0.65 per diluted share, in the prior-year quarter [2] - Revenue performance varied across segments: Smart Water revenue fell 21% to $5.8 million, Energy Solutions revenue decreased 39.7% to $14.6 million, and Intelligent Industrial revenue declined 8.4% to $5.1 million [3] Profitability and Margins - Gross profit plummeted 86.6% to $2.7 million from $20.1 million a year earlier, driven by lower revenue and higher costs, while total operating expenses rose 5.1% to $12.9 million [4] - The company reported an operating loss of $10.2 million, contrasting with an operating income of $7.8 million in the prior-year period [4] Balance Sheet and Cash Position - At the end of the quarter, Geospace had $10.6 million in cash and cash equivalents, with working capital of $52.2 million [5] - Inventories increased to $35.4 million from $30.9 million, while total assets decreased to $144.6 million from $153 million [5] Management Commentary - Management described the quarter as challenging due to economic uncertainty, inflation, tariffs, and supply chain disruptions, impacting margins and increasing costs [6] - The CEO emphasized a focus on operational efficiency and long-term strategic investments despite the headwinds [6] Factors Influencing Results - Year-over-year results were affected by a $17 million marine wireless product sale in the prior year, lower utilization of the OBX rental fleet, and seasonal deployment patterns in Smart Water [7] Guidance and Outlook - Management did not provide specific revenue or earnings guidance but indicated expectations for continued market uncertainty and highlighted long-term opportunities in Energy Solutions [8] - Initial revenue from a Permanent Reservoir Monitoring contract is expected to begin in Q3 fiscal 2026 [9] Other Developments - Geospace continued to integrate GeoVox Security, with increased customer interest in its heartbeat detection technology, supported by a new subscription model [10]

PresentationHello, and welcome to the Annual Meeting of Stockholders of Geospace Technologies Corporation. Please note that today's meeting is being recorded. It is now my pleasure to turn today's meeting over to Steve Jumper, Chairman of the Board.Stephen Jumper Well, thank you, Megan. Good morning. I am Steve Jumper, Chairman of the Board of Geospace Technologies Corporation. On behalf of myself and the other members of the Board of Directors, I welcome you to the 2026 Annual Meeting of Stockholders. We ...

Financial Data and Key Metrics Changes - For the first quarter of fiscal year 2026, the company reported revenue of $25.6 million, a decrease from $37.2 million in the same period last year, representing a decline of 31.5% [4][11] - The net loss for the quarter was $9.8 million, or $0.76 per diluted share, compared to a net income of $8.4 million, or $0.65 per diluted share in the prior year [4][11] - The company had $10 million in cash and cash equivalents and working capital of $52.2 million as of December 31, 2025 [14] Business Line Data and Key Metrics Changes - The Smart Water segment generated $5.8 million in revenue, down 21% from $7.3 million year-over-year, primarily due to lower demand for Hydroconn cable and connector products [11][12] - The Energy Solutions segment revenue was $14.6 million, a decrease of 40% from $24.3 million in the previous year, influenced by lower utilization of the OBX rental fleet and a significant prior year sale of $17 million [12] - The Intelligent Industrial segment reported $5.1 million in revenue, an 8% decrease from $5.6 million, attributed to lower demand for industrial sensor products, partially offset by increased demand for contract manufacturing services [13] Market Data and Key Metrics Changes - The Smart Water segment operates in a stable yet increasingly demanding environment, driven by factors such as population growth and aging infrastructure [5][6] - The Energy Solutions segment faces ongoing volatility due to geopolitical events and inflationary pressures, but global energy demand remains resilient [7][8] - The Intelligent Industrial segment continues to generate steady revenue, bolstered by the acquisition of Geovox Security and the introduction of a subscription model [9] Company Strategy and Development Direction - The company is focused on long-term growth through prudent planning, operational discipline, and strategic investments in innovative technology [5][10] - There is an emphasis on expanding geographic reach in sales and marketing operations to address demand in critical areas [6] - The company aims to maintain a conservative financial framework while evaluating opportunities carefully and avoiding speculative investments [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by economic uncertainty, inflation, and supply chain issues but expressed confidence in the company's ability to navigate these challenges [5][10] - The long-term fundamentals of the industry remain intact, with a focus on adaptability and operational excellence [8][10] - The company anticipates continued uncertainty in global markets but believes it is well-positioned due to the quality of its portfolio and workforce [10] Other Important Information - The company plans a capital expenditure budget of $5 million for fiscal year 2026, with no additions to the rental fleet expected due to current market conditions [15] Q&A Session Summary Question: Strategic importance of the Heartbeat installed base and renewal expectations - Management indicated that there is interest in replacing aging equipment with a new subscription model, but specific numbers on potential revenue from full replacement were not available [20] Question: Bid on Homeland Security's RFP for surveillance detection system - Management confirmed that they did not receive a direct award for the RFP as the administration opted for direct awards where applicable [22][23] Question: Timeline for Petrobras contract deployment and revenue recognition - Revenue recognition for the Petrobras contract is expected to begin in Q3, with the goods portion anticipated to be completed in Q1 of 2027 [24][26] Question: Update on Geovox deployments and pipeline - Management stated that they have started shipping units and anticipate a couple of hundred units this year, with significant interest in the product [39] Question: Prospects for rental fleet activity levels - Management noted that while there have been increased requests for quotations, no actual orders have been placed yet [45]

Financial Data and Key Metrics Changes - For the first quarter of fiscal year 2026, the company reported revenue of $25.6 million, a decrease from $37.2 million in the same period last year, representing a decline of 31.5% [4][11] - The net loss for the quarter was $9.8 million, or $0.76 per diluted share, compared to a net income of $8.4 million, or $0.65 per diluted share in the prior year [4][11] - The company had $10 million in cash and cash equivalents and working capital of $52.2 million as of December 31, 2025 [14] Business Line Data and Key Metrics Changes - The Smart Water segment generated $5.8 million in revenue, down 21% from $7.3 million year-over-year, primarily due to lower demand for Hydroconn cable and connector products [11][12] - The Energy Solutions segment reported revenue of $14.6 million, a significant decrease of 40% from $24.3 million in the previous year, influenced by lower utilization of the OBX rental fleet and a lack of comparable large sales [12] - The Intelligent Industrial segment's revenue was $5.1 million, down 8% from $5.6 million, mainly due to reduced demand for industrial sensor products, although contract manufacturing services saw an increase [13] Market Data and Key Metrics Changes - The Smart Water segment is experiencing strong long-term demand driven by factors such as population growth, urbanization, and aging infrastructure, despite short-term seasonal revenue reductions [6][7] - The Energy Solutions segment is facing volatility due to geopolitical events and inflationary pressures, but long-term fundamentals remain intact [8] - The Intelligent Industrial segment is benefiting from a new subscription model for its security portfolio, which is expected to drive growth in 2026 and beyond [9] Company Strategy and Development Direction - The company is focused on prudent planning, operational discipline, and long-term asset stewardship to navigate economic uncertainties and rising operating costs [7][10] - There is a commitment to investing in future growth and leveraging innovative technology to diversify the business [5][10] - The company aims to avoid speculative investments and remain guided by returns, risk management, and long-term shareholder value [10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by inflation, tariffs, and supply chain issues but expressed confidence in the company's ability to manage these factors [5] - The company anticipates continued uncertainty in global markets but believes it is well-positioned due to the quality of its portfolio and workforce [10] - Management emphasized the importance of maintaining a disciplined approach in the face of market volatility [8] Other Important Information - The company plans a capital expenditure budget of $5 million for fiscal year 2026 and does not expect additions to the rental fleet due to current market conditions [15] Q&A Session Summary Question: Strategic importance of the Heartbeat installed base and renewal expectations - Management indicated that there is interest in replacing aging equipment with a new subscription model, but specific numbers on potential revenue from full replacement were not available [20] Question: Bid on Homeland Security's RFP for surveillance detection system - Management confirmed that they were not awarded a direct contract as the administration opted for direct awards [22][23] Question: Timeline for Petrobras contract deployment and revenue recognition - Revenue recognition for the Petrobras contract is expected to begin in Q3, with the goods portion of the contract anticipated to be completed in Q1 of 2027 [25][26] Question: Update on Geovox deployments and pipeline - Management stated that they have started shipping units and anticipate a couple of hundred units to be deployed this year, with significant interest in the product [38][42] Question: Prospects for rental fleet activity levels - Management noted that while there have been requests for quotations, no actual orders have been placed yet, indicating a flat outlook for the Ocean-Bottom Node business [47]

Financial Data and Key Metrics Changes - For Q1 2026, the company reported revenue of $25.6 million, a decrease from $37.2 million in the same period last year, representing a decline of 31.5% [4][11] - The net loss for the quarter was $9.8 million, or $0.76 per diluted share, compared to a net income of $8.4 million, or $0.65 per diluted share in the prior year [4][11] Business Line Data and Key Metrics Changes - The Smart Water segment generated $5.8 million in revenue, down 21% from $7.3 million year-over-year, primarily due to lower demand for Hydroconn cable and connector products [11][12] - The Energy Solutions segment reported revenue of $14.6 million, a significant decrease of 40% from $24.3 million in the previous year, influenced by lower utilization of the OBX rental fleet and a lack of large sales compared to the prior year [12] - The Intelligent Industrial segment's revenue was $5.1 million, down 8% from $5.6 million, mainly due to reduced demand for industrial sensor products, although contract manufacturing services saw an increase [13] Market Data and Key Metrics Changes - The company continues to face challenges in the market, including rising operating costs, climate-related variability, and evolving compliance requirements, which necessitate prudent planning and operational discipline [6][7] - The global energy demand remains resilient, with ongoing volatility driven by geopolitical events and inflationary pressures, but the long-term fundamentals of the industry are considered intact [8][10] Company Strategy and Development Direction - The company is focused on investing in future growth, advancing strategic initiatives, and leveraging innovative technology to diversify its business [5][10] - The Smart Water segment is expanding its geographic reach to meet increasing demand driven by urbanization and regulatory standards [6] - The Intelligent Industrial segment is positioned for growth through a recurring revenue model following the acquisition of Geovox Security, which has generated significant customer interest [9] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the economic uncertainty impacting performance, including inflation and supply chain challenges, but expressed confidence in the company's ability to navigate these issues [5][10] - The company plans to maintain a conservative financial framework and avoid speculative investments while focusing on long-term shareholder value [10] Other Important Information - The company anticipates a capital expenditure budget of $5 million for fiscal year 2026, with no additions to the rental fleet expected due to current market conditions [14] Q&A Session Summary Question: Strategic importance of the Heartbeat installed base and renewal contracts - Management indicated that the installed base is aging, and there is interest in replacing legacy equipment with a new subscription model, but specific revenue implications were not disclosed [19] Question: Bid on Homeland Security's RFP for surveillance detection system - Management confirmed they did not receive a direct award for the RFP and thus do not expect further opportunities related to it [21][22] Question: Timeline for Petrobras contract deployment and revenue recognition - Revenue recognition for the Petrobras contract is expected to begin in Q3 2026, with the project slated for completion in Q1 2027 [25][26] Question: Update on Geovox deployments and pipeline - Management reported starting shipments of Geovox units this quarter, with significant interest in the product and expectations for a couple of hundred units to be deployed this year [36][40] Question: Prospects for rental fleet activity levels - Management noted that while there have been increased requests for quotations, actual orders have not yet materialized, indicating a flat outlook for the Ocean-Bottom Node business [45]

Financial Performance - Geospace Technologies reported Q1 FY2026 revenue of $25.6 million, a decrease of 31% from $37.2 million in Q1 FY2025[2] - The net loss for Q1 FY2026 was $9.8 million, or $(0.76) per diluted share, compared to a net income of $8.4 million, or $0.65 per diluted share in the same quarter last year[2] - Total revenue for the three months ended December 31, 2025, was $25,586, a decrease of 31.2% compared to $37,223 for the same period in 2024[25] - Net income for the same period was a loss of $9,765, compared to a profit of $8,376 in the prior year[23] - Smart Water segment revenue was $5,756, down 21.0% from $7,288 in the prior year[25] - Energy Solutions segment revenue decreased significantly to $14,636 from $24,282, a decline of 39.6%[25] - Revenue from the Smart Water segment was $5.8 million, down 21% from $7.3 million in Q1 FY2025, attributed to lower demand for Hydroconn® products[9] - The Energy Solutions segment generated $14.6 million in revenue, a 40% decrease from $24.3 million in the prior year, impacted by lower utilization of the OBX rental fleet[10] - Revenue from the Intelligent Industrial segment was $5.1 million, an 8% decline from $5.6 million in Q1 FY2025, primarily due to reduced demand for industrial sensor products[11] Cash and Assets - As of December 31, 2025, the company had $10.6 million in cash and cash equivalents and $52.2 million in working capital[12] - Cash and cash equivalents at the end of the period were $10,579, down from $26,338, a decrease of 59.8%[23] - Total current assets decreased to $77,731 from $88,500, a decline of 12.1%[21] - Total liabilities increased to $28,740 from $27,528, an increase of 4.4%[21] - Total stockholders' equity decreased to $115,878 from $125,509, a decline of 7.7%[21] - Net cash used in operating activities was $15,071, compared to $11,509 in the prior year, indicating increased cash outflow[23] - Inventory obsolescence expense was $627, up from $506, reflecting challenges in inventory management[23] Strategic Initiatives - Geospace Technologies is expanding its geographic reach in the Smart Water segment to meet long-term demand driven by population growth and aging infrastructure[4] - The company has strengthened its security portfolio through the acquisition of GeoVox Security, which has increased customer interest and engagement[8] - Management remains focused on long-term growth and value creation despite ongoing market uncertainties and challenges[3] - The company anticipates a capital expenditure budget of $5 million for FY2026, with no significant increases to the rental fleet expected[12]

Core Viewpoint - Geospace Technologies reported a significant decline in revenue and a net loss for the first quarter of fiscal year 2026, reflecting challenges in the operating environment, including economic uncertainty and rising costs [1][2]. Financial Performance - Revenue for the first quarter ended December 31, 2025, was $25.6 million, down from $37.2 million in the same quarter of the previous year, representing a decrease of 31% [1][4]. - The net loss for the quarter was $9.8 million, or $(0.76) per diluted share, compared to a net income of $8.4 million, or $0.65 per diluted share, for the same period in 2024 [1][4]. Segment Performance Smart Water Segment - Revenue from the Smart Water segment was $5.8 million, down 21% from $7.3 million in the prior year, attributed to seasonal demand fluctuations [1][4]. - The segment continues to face challenges such as rising operating costs and evolving compliance requirements [1]. Energy Solutions Segment - Revenue for the Energy Solutions segment totaled $14.6 million, a decrease of 40% from $24.3 million in the previous year, influenced by lower utilization of the OBX rental fleet and a significant prior year sale [1][4]. - The segment remains impacted by geopolitical events and inflationary pressures [1]. Intelligent Industrial Segment - Revenue from the Intelligent Industrial segment was $5.1 million, down 8% from $5.6 million in the same quarter last year, primarily due to lower demand for industrial sensor products [2][4]. - The segment's growth is supported by increased demand for contract manufacturing services [2]. Balance Sheet and Liquidity - As of December 31, 2025, the company had $10.6 million in cash and cash equivalents, with total working capital of $52.2 million [2]. - The company anticipates a capital expenditure budget of $5 million for fiscal year 2026 [2]. Management's Outlook - Management expressed optimism about the company's ability to navigate the current challenges and emphasized a focus on long-term strategic initiatives and operational discipline [1][2]. - The company plans to continue evaluating opportunities carefully and avoid speculative investments [1].

HOUSTON--(BUSINESS WIRE)--Geospace Technologies (NASDAQ: GEOS) today announced that it will release first quarter 2026 financial results on Wednesday, February 4, 2026 after the market closes. In conjunction with the release, Geospace has scheduled a conference call for Thursday, February 5, 2026 at 10:00 a.m. Eastern Time (9:00 a.m. Central). WHEN: WHAT: Geospace Technologies First Quarter 2026 Results Conference Call HOW: Live via phone – U.S. participants can dial toll-free 833-316-1983. International pa ...